Journal
УКР   ENG
Socio-Economic Problems
of the Modern Period of Ukraine
   



Collection SEPSPU -- sep2018.05.117

Repository of Institute of Regional Research Repository of Vernadsky Library UDC 332:364.22(477); JEL I32, I38, R29
Teslyuk, R. T. (2018). Rehional'ni osoblyvosti poshyrennya bidnosti v Ukrayini [Regional peculiarities of poverty growth in Ukraine]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 133 (5) (pp. 117-121). Retrieved from http://ird.gov.ua/sep/doi/sep2018.05.121. [in Ukrainian].
Sources: 14

Authors



Teslyuk Roman Tadeyovych

Ph.D. of Geography, Senior Researcher

Senior Researcher of the Department of problems of social and humanitarian development of the regions of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: r.teslyuk@gmail.com, (032)297-38-91

Webpages:

Resume

Over the past few years, there has been a decline in real incomes, which has substantially increased the level of poverty in Ukraine and its regions. One of the main indicators of poverty is the share of people whose incomes are below the subsistence minimum. However, in terms of inflation, increase in the cost of housing and utility services, the size of the officially approved subsistence minimum has been growing at a significantly slower pace than the specified determinants of the living standard of the population. Therefore, for the purpose of an adequate poverty measuring, the Ministry of Social Policy of Ukraine has proposed another indicator, instead of the mentioned one, – the actual (estimated) subsistence minimum (ASM), calculated on the basis of actual market prices. It was found that Volyn, Rivne, Zhytomyr oblasts, as well as Khmelnytsky and Kherson oblasts have constantly high rates of poverty. These are the areas with a big share of rural population and low population density. Kiev, Donetsk and Mykolaiv oblasts joined them in 2017. The share of poor population has considerably decreased in the eastern and central regions of the country, namely in Poltava, Cherkassy and Kharkiv oblasts. The lowest levels of poverty have been observed in Ivano-Frankivsk, Poltava, Vinnytsia oblasts and in Kyiv city. Considering a high growth rate of food, non-food products and services costs used in calculating the actual subsistence level, it can be predicted that in 2019 the share of people whose income is less than ASM will not decrease. The role of social support of the population in the form of financial and in-kind assistance decreased. In general, in Ukraine, fewer citizens are accounted as those being in difficult living conditions and in need of such support, which is mostly provided in kind. Another indicator of poverty – the share of food costs – is slowly decreasing, but currently the average value of this indicator in the country is four times more than in the EU. In the regional context, the same Rivne, Volyn, Kyiv, Donetsk and Kherson oblasts stand out. At the same time, in Zaporizhia, Sumy, Chernivtsi, Poltava oblasts and in Kyiv city, the share of food costs in recent years has not exceeded 50%. The analysis of this indicator shows a weak impact of crisis phenomena on the structure of total household expenditures, which receive other types of income, mostly from various forms of informal employment. Increase in minimum social standards is a compulsory step towards poverty overcoming. The growth of the minimum wage is less than the growth of the actual subsistence minimum, which at the end of 2018 already exceeded the main social standard. However, comparison of the minimum wage growth rate with the actual subsistence level indicates that the planned social standards increase will only maintain the current level of poverty in Ukraine and its regions.

Keywords:

poverty, region, subsistence minimum, minimum wage, financial and in-kind assistance, food costs

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