In many countries around the world, people who are poor or in a difficult life situation can count on the only help they can get from the state—an allowance. This money will keep from starving to death today, but will it create a source of income tomorrow? This is why Russia has decided to introduce another way of targeting assistance—the social contract. The main idea is to give a person a fishing rod, not a fish: instead of giving a small amount of money for the essentials, provide a large sum at once. It is enough to start a business or learn a new profession and thus no longer need allowances.

The social contract is concluded with the social welfare authorities. To get money, a person with an income below the subsistence level only needs to make a clear plan of how they are going to improve their financial situation. If they want to learn a new profession, they will get RUB 30,000 from the state budget. If they intend to develop their own farming, the amount is RUB 200,000. And if they intend to start their own business—RUB 350,000. These are the basic amounts set out in the Social Contracts Law. The regions can increase them as they see fit and also give out money for other important purposes.

Getting help from the state is not difficult, but there is one crucial point: it is not only the state that makes the commitment but also the individual. The money can only be spent on the plan for which it was received. If they were going to buy a cow or build a greenhouse, they should do so, otherwise they will have to pay the whole amount back.

Despite the strict conditions, the new support measure is also becoming increasingly popular in the Arctic zone of Russia. In Karelia, 672 people entered into social contracts in the first half of 2022. And the total funds allocated for this purpose have increased by RUB 40 mn compared to 2021, reaching RUB 100 mn.

The social contract has already helped many people in the republic to get back on their feet. For example, Olga Shirma, a mother of several children from Kostomuksha, could not find a job for six months and was living on unemployment benefits. In September 2021, she was invited to start her own business. The RUB 350,000 received was enough to realise her dream and open her own atelier. Olga has always enjoyed sewing and now takes orders from the workshop at home. She even got her own brand, Diana, named after her daughter.

In the Murmansk Region, 730 social contracts had been concluded by 1 July 2022. Anna Novikova from Kola wanted to bake cakes for a long time, so she opened her own bakery. Anna spent her social contract payments on equipment, rent, furniture and work clothes. Now she is already making new plans, such as opening a café where she will run baking workshops for the children of her countrymen.

More than 1,300 social contracts were concluded in the Arkhangelsk Region in the first half of the 2022. In Koryazhma, Elizaveta Zhgileva benefited from state support. She decided to become a Kangoo Jumps trainer—this type of fitness is considered one of the most effective ways to boost energy and good mood. The young woman was trained, bought a music speaker and 11 pairs of special jumping shoes. And now there is no shortage of people wanting to train with her: she has even had to divide her students into three groups.

In Yamal, more than 400 people have applied for social contracts in 2022. Valentina Mikhnevich, a mother of five children from Priuralsky District, is planning to open a guest chum in Salekhard. She plans to treat tourists to traditional northern delicacies—stroganina, Yamal fish ukha, cloudberries, blueberries. And also hold workshops on making national amulets and souvenirs.