Almost half of the population lives below the poverty line. Basic needs are unable to provide 3.4 billion people, according to a world Bank report. If a person lives less than 1,9 us dollars. on the day, it speaks of extreme poverty. To spend more can’t afford 736 million people. These include the population of Burundi, Malawi, Congo, Madagascar and a dozen countries in Africa, Asia, South America and island countries of the Pacific.
Where is the poverty line, is it possible to take the Ukrainians to the poorest Nations in the world, recognize the website “Today.
Measurements of poverty
Poverty is relative. Each country has its own measurements of poverty. Ukrainian with the salary of UAH 10 thousand (EUR 343) in France will not be able to live by the standards of French society. Such income there is almost three times less than the average. In Ukraine people with an income of 10 thousand hryvnias – it is far not poor.
The world Bank considers poor people who live on less than 1.9 dollar a day at purchasing power parity (PPP). This is an indicator for the poorest countries. For countries with incomes below the average is 3.2 USD with high income – $ 5.5 PPP.
Since the cost of living is different everywhere, we use purchasing power parity. It shows the ratio of the value of the same basket of goods and services in different countries. Therefore, neither of 1.9 USD. neither is $ 5.5. you cannot transfer at the official rate.
For example, the parity of purchasing power of the hryvnia is 7.8. This means that for $ 100. in the US you can buy about the same as in Ukraine at UAH 780.
Another poverty measure relative standards of consumption accepted in society. People who have no access to the usual environment, the set of goods and services is poor. That is, poverty is not only defined by income or low consumption of goods and essential services, but low-quality food, unavailability of services of education and health, lack of proper housing and so on.
“In the world Ukraine is not a country of poor people”
Incomes of Ukrainians are below average. Therefore, poverty for Ukraine would be to assume that the rate of 3.2 dollars. a day. But the world Bank in their report calculates poverty in Ukraine based on 5,5 dollars. a day.
“If you take this figure, then according to the year 2017 in Ukraine 4,9% of the poor. The estimate for this year to 4%. And if you take the 1,9 dollar, then we have the poor population of 0.1%. It is very small. According to this indicator, the situation is much better than in other countries with which we are in the same income group, if we take GDP or gross national income per capita” – says Olga Kupets, world Bank consultant, Professor at KSE and a Professor of economic theory at NaUKMA.
That in other countries? Less than 5.5 dollars. PPP per person per day lives 66% of the population in Kyrgyzstan and 50% in Armenia, 44% in Georgia. In Moldova such 16%, in Belarus – 0.8 percent. Whereas in Ukraine – 4%. Again, it’s not about the dollars that you can buy at the exchange rate takes into account the difference in prices and inflation.
“In these countries are much more poor than Ukraine, with the exception of Belarus. In Western countries this figure is close to zero and its not even expect. And if you take Africa, where poverty – costs are lower by 1.9 dollars, the poor in Ghana 13%, Liberia – 41%, Malawi -70%, in Ukraine – 0.1%, in Georgia – 5%. That is, if you compare Ukraine – not a country of poor people”, – said Olga Kupets.
The poor among their
At the national level in Ukraine consider relative poverty. It is determined by the median costs. If a family spends in a month is less than 75% of the median, it is poor. If simple words, it works like this: there are three households spends in the first month 7000 UAH, the second – 9,000 UAH, and the third – 15000 UAH. Here the median – 9000 UAH – the average number in the sample. And the poor will be the family that spends a month less than 75% (6750 UAH) from 9000 UAH.
Almost every fourth person in Ukraine according to such an approach is considered poor.
“For 2018, the median expenditures in Ukraine hryvnia is 2620. If expenditures are below this level – a family is considered poor. Such families in the past year was 24.1%. Relative poverty depends on the distribution of income in society. In times of crisis, the inequality decreases. And in periods of economic growth when incomes rise, the level of relative poverty is growing,” – says Lyudmila Cherenko, head of the quality of life of the population of the Institute of demography and social research. After mV ptukha NAS Ukraine.
The second criterion, which is used in Ukraine – the actual cost of living. It is different from a living wage, which is approved by the government. The actual minimum is calculated according to real market prices for each commodity group. Today is 3260 UAH.
Incomes below this level are 26.7% of Ukrainians, and the cost – of 43.2%. Although in 2015 the situation was worse – more than half of Ukrainians did not receive the actual income is above the subsistence level. According to this index horse racing track poverty in times of crisis. In a crisis, when purchasing power was falling, the actual cost of living showed an increase in poverty doubled. Now, this figure shows the reduction of poverty in the two times we returned to the level of 2013-2014. But for a relative measure is stable – plus or minus one percent.
The poverty rate in Ukraine is less than in France
The EU believes the poor are those who receive less than 60% of the median income.
“If you take European techniques, we have the poverty rate of 10.2%. That is, 10 Ukrainians have living standards worse than the other 90. It is quite low. If you compare the price is lower than in France, where 11-12%. This is a relative criterion, and it shows, what part of the population does not meet the standards of the society. It is clear that the standards of Ukraine and France differ”, – said Lyudmila Cherenko.
The poverty level depends on where to draw the line. And the line is often money. The monetary approach does not reflect all possibilities and any limitations. Not all you can get for the money and not everything is measured in money. European countries have long wanted to get away from it, so use non-monetary criteria.
So, in Europe has identified nine positions: three of them are missing, people are considered poor. If there is no four, it is extremely poor.
The list includes:
- The presence of the phone;
- The presence of a color TV;
- A washing machine;
- The presence of a vehicle;
- Enough money to stay outside the house for at least a week in the year;
- Enough money for meat dishes, fish every other day;
- Have the ability to afford an unexpected but necessary expenses;
- Enough money to support a fairly warm temperature in your home;
- Money full enough to pay the rent/mortgage and utility payments.
“On non-monetary criterion, we are not the worst. In Europe we are close to Romania, Slovakia, and Hungary. The most interesting thing for us there are always a few countries below. Compared with countries in the East, we can’t, because they don’t advertise their stats according to generally accepted criteria. If Belarus gives the figures for costs below $ 5, Russia and Kazakhstan do not give statistics,” explains Cherenko.
The fact that the views of Ukrainians are well-off people can at least pay for the necessary medical services that include dentistry, has savings for children education, can afford minimal rest, and so on, said Cherenko. Norm and low in the Ukraine alone, and in a country richer people will call more benefits than the average Ukrainian.
Spend a lot on food
Theoretically, the poorer the country, the more the cost of food. Today, Ukrainians 48% of their income is spent on food. Although until 2016, this figure reached 53%, according to the state statistics service reports. Both figures are very large. Average expenditure on food of Europeans make up 12% of revenues. For example, the British spend on food is 10%, the Dutch – 10,6%, poles – 17%, Lithuanians – 27%.
But if you compare with other countries, the criteria for Ukraine is not significant.
“We have a lot of expenses goes even affluent, high-calorie daily diet. Perhaps this mental feature of Ukrainians. According to this criterion, our country should not compare. The percentage of households in Ukraine, who spend on food, more than 60% of income is 26.7%. And the percentage of households with less than 10% after costs of food and housing, and 7.6%.”, – says Lyudmila Cherenko.
Today only 10% of Ukrainians consider themselves poor, said the results of a survey of the Kiev international Institute of sociology.
“By all indicators, international and national, we have a positive trend is the steady decline in poverty. In absolute numbers, the level of poverty declining for the last four years. According to subjective estimates in 2014, 17% of Ukrainians have stated that incomes do not have enough food. In 2018 the share of such people has decreased. International organizations note that poverty reduction is due to macroeconomic stabilization, increase of real incomes and transfers of workers”, – adds Olga Kupets.
Author: Vitaly Andronicus