Poverty in the regions of Ukraine: causes and consequences  Cover Image

Ubóstwo w regionach Ukrainy: przyczyny i skutki
Poverty in the regions of Ukraine: causes and consequences

Author(s): Viktoriia Adamyk, Alla Melnyk
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: Ukraine; poverty; regional policy; social policy; breaking cycle of poverty; dynamics of poverty

Summary/Abstract: The problem of poverty in the regions of Ukraine is raised. The methodological framework of research is substantiated. In this context, the notions of general and relative poverty are examined; the criteria and indicators of poverty are defined.The study is based on the following: absolute poverty threshold, average and minimum wages, income per capita, savings rate, consumption by region, level of informal incomes in the informal sector, access to credit, share of expenditures on food consumption, quality of food, education and professional training, life expectancy, level of sanitary living conditions of an individual, subjective living wage, level of property stratification of the population, economic security of different social groups, access of an individual to the main opportunities in the regions. Taking into account the statistical database of Ukraine, the empirical analysis of poverty in the regions of Ukraine in statics and dynamics is conducted. The reasons for the poverty conservation in the regions are revealed: the inability of an individual to maintain minimum standards of living, lack of natural resources in some regions, lack of capital, informal sectors in economy, high unemployment rates in some regions, oligarchization of economy, deterioration of education and training, economic crisis of 2008-2009, and its consequences, reduced opportunities for investment in human capital, decrease of life expectancy, IMF demands that cause clotting of consumer demand, increase in tariffs for services, difference in levels of economic growth in the region, growth of public debt, lack of effectiveness of international aid instruments, lack of effectiveness of the institutional arrangements, military operations in Ukraine. The consequences of poverty in the regions are determined: preservation of paternalist moods of the population especially in the eastern regions of Ukraine, high level of labor migration, strengthening of internal migration from the periphery to the centers of economic growth, the formation of marginalized groups inclined to separatism, violations of sustainable development, formation of “the accursed circle of poverty” for many regions of Ukraine and for individual households. The ways to eliminate related threats are outlined.

  • Issue Year: 2015
  • Issue No: 393
  • Page Range: 19-31
  • Page Count: 13