Herashchenko S.A. ,Plotnichenko D.M.

National Mining University, Ukraine

Poverty as a global problem of mankind

In modern conditions the problem of poverty is very urgent all over the world. Poverty as a global problem implies a state caused by a lack of material resources for leading a normal life, which is usual and typical for a large part of the world's population. The high level of poverty, especially in developing countries, poses a serious danger not only for national, but also for the world sustainable development.

When talking about poverty, it is necessary to distinguish between the concepts of relative and absolute poverty. Relative poverty is the living conditions of the population groups that occupy a relatively lower level than average in the pyramid of income and wealth.

The concept of absolute poverty is closely related to the definition of poverty line. The poverty line is the level of disposable income, gross income or consumption, below which a person is considered poor. Absolute poverty is the living conditions that are typical for people who do not possess goods and property (food, clothing, accomodation) that are necessary to ensure a decent life for a person. According to the World Bank standards, people who have the purchasing power of less than US$1 per day are considered to be absolutely poor.

Poverty is a consequence of various and interrelated reasons, which are gathered into the following groups: economic (unemployment, social inequality, including low wages, low labor productivity, non-competitiveness of the industry); social and medical (disability, old age, high morbidity rate); demographic (single-parent families, a large number of dependents in the family, overpopulation); educational and qualification (low level of education, inadequate professional training); political (military conflicts, forced migration); regional and geographical (uneven regional development); religious, philosophical and psychological (austerity as a way of life, foolishness).

According to experts of the international humanitarian organization Oxfam, the reasons for the increase in poverty and social inequality in the world since 2010 are as follows: tax avoidance by the wealthy people; salary reduction; increasing difference between the minimum and maximum wage levels.

According to the latest estimates of the World Bank , the total number of poor people, i.e. living on less than $2 a day, is 2.5-3 billion in the world, and the share of the world's population living on $1 a day is 12.7%[1].
        According to Eurostat data for 2016, about 23.4% of the population of the European Union was in the risk zone for poverty and social disadvantage. In total, this is about 117.5 million people.

According to some experts it is believed that about a quarter of the Ukrainian population refers to the poor. Therefore, a study of the poverty problem and ways to overcome it is relevant for Ukraine. High level of poverty in Ukraine is evidenced by various indicators: low quality of diet, low birth rate, high morbidity and mortality, dissatisfaction of the general public with the economic situation and their material situation.

Table 1

The proportion of the poor in the overall population structure

Ñountry

Number of poor population,%

Ñountry

Number of poor population,%

Bulgaria

40%

Romania

38,80%

Greece

36%

Czech Republic

13%

Finland

17%

Denmark

17%

Netherlands

17%

Ukraine

 < 40%

Russia

15%

Belarus

10%

Compiled according to [2]

However, along with these common signs, the poverty in Ukraine has a number of specific features: a low standard of living for the population as a whole; psychological rejection of economic inequality; extremely high share of people who consider themselves poor; the prevalence of poverty among the working population.

The only right solution for eradicating poverty does not exist - strategies to help the least well-off people have to take into account the specifics of each country, the latest data and analysis results, as well as the needs of specific people. In order to succeed in reducing poverty, countries need to act in three ways: ensure a comprehensive economic growth with the involvement of additional workforce; invest in the human capital, especially those who are unable to benefit from essential services because of circumstances beyond their control; provide social protection for the poor and vulnerable segments of the population from shocks that can push them further into poverty, in particular severe weather conditions, pandemics, price volatility in food and the effects of economic crises.

The fight against poverty remains the most important task of social and economic policy in most countries of the world. The deepening of poverty in recent decades, especially in low-income countries, has forced international organizations to unite their efforts against this problem.

The priority directions of the government's activities with a view to solving the poverty problem are as follows: promotion of employment and labor market development as a way to provide appropriate conditions for the working age population to independently solve the problem of increasing their wealth, balance supply and demand in the labor market, prevent unemployment; increase in the level of wages and purchasing power of the population; the creation of compulsory state social insurance system aimed at strengthening social protection; social support for the most vulnerable segments of the population by introducing targeted social assistance and services; a balanced policy on reforming housing and communal services; general economic recovery; enhancing investment in education, culture and sports; debt restructuring.

References

 

1. The World Bank’s poverty overview - http://www.vsemirnyjbank.org/ru/topic/poverty/overview#1 

2. The proportion of the poor in the overall population structure: https://economics.unian.net/other/2190946-eurostat-nazval-uroven-bednosti-v-stranahes.html,https://www.rbc.ru/economics/28/06/2017/59536b549a794702e475254a?from=newsfeed .