Analysis and solutions to the problem of social inequality and poverty in the Republic of Kazakhstan

Alzhanova N.Sh Ph.D., Professor

HSEB of "Economics" Kazakh National University named Al-Farabi

Zamedin K.S.magistrant

HSEB of "Economics" Kazakh National University named Al-Farabi

Almaty, Kazakh National University named Al-Farabi.

ansh13@mail.ru, kyzjibek_2709@mail.ru

 

The modern economy of  Kazakhstan is on a whole new round of development, however, it does not reduce the severity of the social problems of particular relevance gets the problem of poverty. Is a multivariate poverty phenomenon in this connection, there are many different approaches to estimating. Usually, poverty is measured by income or expense based on the assumption that the material standard of living largely determines their well-being. Poor, in this case, are the people whose standard of living below a certain point, the so-called poverty line. As you know, in different countries and in different historical periods basic necessities of life were assessed differently. How, in practice, the state bodies of social care and guardianship determine poor people or not? For this purpose, and was designed by indicators such as the poverty line, reflecting a level of income that is needed to maintain acceptable minimum standard of living.

If  we compare  the  figures, then, for example, in Russia the poverty line (cost of living) from December 3, 2012 was defined in 6705 rubles per person per month [6]. In 2012, Russian President Vladimir Putin at a meeting of the State Council admitted that the country was "unacceptable high income differentiation" and 13 percent of citizens (about 18 million people) still live below the poverty line. [5] In the US, the cost of living is 15 dollars a day. Indicator subsistence in the USA is 15 times higher than in China and 2.2 times higher than in Russia. Below the poverty line in the United States, according to official statistics, home to 14.3% of the population (43.6 million. Pers.) [6]. In the European Union, which includes 27 countries, the share of the poor even slightly higher than in the United States: 17 percent, equivalent to almost 85 million. People (more than the population of the largest European countries - Germany). According to analysts the poor in the European Union are those citizens whose income is less than 60% of the level of wages in the country of residence. Salaries in different EU countries, therefore, to be considered poor in Luxembourg, you get less 18.5 thousand. Euro per year. In Denmark, the poverty level - 14.5 thousand., In Ireland - 13.7 thousand., United Kingdom - 13.1 thousand., Sweden - 12.1 thousand., Finland - 11.8 thousand., Germany - 10.9 thousand (Table 1). The lowest poverty threshold recorded in Romania (1.1 thousand.) And Bulgaria (1.3 thousand.).

Figure 1.subsistence minimum in countries

Picture of poverty in America and in Europe would be more iridescent, if not for immigrants. Natives of poorest countries in Africa, Asia, Latin America, once in prosperous countries, are satisfied with the minimum that tens (or even hundreds) times the level of income in their homeland. Currently, the question of minimizing the number of poor people is a challenge for any country. Against the background of the measures taken for Combating inequality of income distribution and poverty, such as free food, clothing and medicines, assistance in finding employment, lowering communal tariffs, social benefits and pensions, it is necessary to understand that there are some fundamental reasons combining population: the lack of the necessary conditions for earning income; high unemployment; different levels of education and training; ownership or possession of the property, which are associated with unearned incomes; backwardness of some sectors of the economy;

Currently, the ideology of reducing poverty in Kazakhstan most effectively implemented within the state program on poverty reduction. One of the most important indicators of poverty is the dynamics of poverty reduction of the population according to the data for the 2010-2014. changes in the level of poverty has decreased, which indicates that, taken in Kazakhstan various poverty reduction measures have a certain effect [1].

                      Figure 2. Dynamics of Poverty

However, it should be noted that in Kazakhstan for the measurement of poverty used the cost of living, which is an important instrument of state social policy. In world practice, it is used as a criterion of absolute poverty, and is called the "poverty line", which is defined as the minimum level of income required to meet basic human needs. But poverty, which is closely linked with economic inequality should be considered in the context of the welfare of all sections of society. We are talking about a policy of the state, which would be aimed not only at those who are already in a state of absolute poverty, but would also help to prevention the risk of poverty. Other equally important indicators to determine whether achieve their goals social support programs of the poor, how much or where not reach, are indicators of poverty: the proportion of the poor, the poverty gap, severity of poverty. In the case of assessment of the overall progress in reducing of absolute poverty indicator "percentage of the poor" is be completely adequate tool of analysis. However, in some cases, including analysis of the impact on the poor of various policy measures, the use of the headcount measure does not assess the obtain image effects. The poverty gap and severity of poverty - show income differentiation among the poor and provide very important information for the ongoing social assistance programs to low-income population. Thus, all three indicator appropriate to apply together since their use is more fully explains the situation poverty.

For more precise characterization of  the  poor  used indicators of depth and severity of poverty. The poverty gap reflects the average amount of income of the poor, missing up to the poverty line, calculated in relation to the total population of the country. So, for the period from 2010 to 2013 the depth of poverty in Kazakhstan decreased by 0.7 times and amounted to 0.4%.

Additional characteristics of the poverty gap index gives the severity of poverty, which shows the inequality among the poor - the degree of dispersion of incomes of the poor from their average value. Since 2010, the severity of poverty in Kazakhstan decreased by 0.1 times and amounted to 0.1%

 Depth of poverty

Severity of poverty

 

 

 

 

 

 

 

 

 

2010

2011

2012

2013

2010

2011

2012

2013

TheRepublicofKazakhstan

1,1

0,9

0,5

0,4

0,3

0,3

0,1

0,1

Akmola

0,8

1,3

0,8

0,7

0,2

0,5

0,3

0,2

Aktobe

1,1

0,5

0,3

0,3

0,3

0,1

0,1

0,1

Almaty

0,8

0,3

0,4

0,4

0,1

0,1

0,1

0,1

Atyrau

1,0

0,5

0,2

0,2

0,3

0,1

0,0

0,0

WestKazakhstan

0,6

0,9

0,5

0,4

0,1

0,2

0,1

0,1

Jambul

0,6

0,6

0,9

0,4

0,1

0,1

0,3

0,1

Karaganda

0,7

0,6

0,4

0,4

0,2

0,2

0,1

0,1

Kostanayskaya

1,0

0,9

0,5

0,6

0,3

0,3

0,2

0,2

Kyzylordinskaya

0,8

0,8

0,3

0,3

0,2

0,2

0,1

0,0

Mangistau

2,0

1,1

0,4

0,2

0,6

0,2

0,1

0,0

SouthKazakhstan

2,4

1,8

1,0

0,8

0,8

0,5

0,2

0,2

Pavlodar

0,6

0,9

0,5

0,2

0,2

0,3

0,1

0,0

NorthKazakhstan

0,8

1,8

1,0

1,0

0,2

0,6

0,3

0,4

EastKazakhstan

1,3

1,5

0,6

0,3

0,3

0,5

0,2

0,1

Astana

0,6

0,4

0,2

0,1

0,2

0,1

0,0

0,0

Almaty

0,3

0,2

0,1

0,1

0,1

0,0

0,0

0,0

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1. The depth and severity of poverty in Kazakhstan by region.

Thus, to solving the problem of social inequality and poverty necessary to approachcomprehensively taking into account various factors such negative phenomena. The state should always be interested in creating and maintaining a prosperous social and economical environment for its citizens, because the low level of affluence and povertylead to profound negative consequences: a drop in the level of a society's culture, migration of the working population, an increase in crime, to increased mortality. To fight against poverty necessary to involve and society, creating preferential conditions forcharities, or, following the example of the Scandinavian countries, to organize a socialmodel of organization of society, which has a "social contract" - the rich pay for the poor, helping them to exist. Important conditions to address poverty is to increase employment,raise the minimum subsistence level, government support of the poor and regularlyexisting social assistance system for them.

 

List of references:

1. The Ministry of National Economy Committee on Statistics of the Republic of Kazakhstan: stat.gov.kz

2. The objectives of the UN Millennium Development Goals in 2002. Kazakhstan - Almaty: TaimasPrintHouse, 2002.

3. Bekhozhaeva A.K Standard of living and poverty. Study of international experience // Sayasat, № 3-4, 2002.

4. Razumov A.A Poverty and methods of its overcoming.

5. The subsistence minimum, // [electronic resource] / Access: http://advocatshmelev.narod.ru/prozhitochnyj-minimum.html.

6. The cost of living in the month // [electronic resource] / Access: http://portal.tpu.ru/SHARED/g/GANB/ucheba/Tab2/l6.ppsx.

7. [electronic resource] / Access: http://mirnov.ru/arhiv/mn964/mn/img/06-1c.jpg. Email to contact the authors: e-mail: ff01@bk.ru

 

Ф.И.О. автора/соавтора (полностью)

Альжанова Нуржан Шариповна, Замедин Кызжибек Сапаровна,

Уч. степень, звание

Ph.D., Professor, magisrant

Место работы (полное название)

КазНУ имени аль - Фараби

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Analysis and solutions to the problem of social inequality and poverty in the Republic of Kazakhstan

 

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Дата заполнения заявки

13.03.2015