Azerbaijan Has "Unique" Poverty

The other day in the parliamentary newspaper Azerbaijan a detailed article was published by the Minister of Labor and Social Protection of the Population Salim Muslimov on reforming the national social security system, and the state's measures in this area. The publication sustained in traditional style is not distinguished by originality and freshness of thought.

The author claims that the country has an effective system of social protection of the population, and more than 90% of low-income categories of citizens are attracted to social patronage. Thus, 466.4 thousand people receive various benefits, 546 thousand poor - targeted social assistance, and 1.3 million retirees - pensions. For these purposes, 316.3 million manats is allocated monthly from the budget.

The figures, of course, are impressive, but they cause bewilderment and doubts about the accuracy of official statistics on the increase in people's financial situation, poverty level in the country. In government reports, it is noted that the poverty level in the republic today is 5%. But the figures for the number of people receiving social benefits, disability pensions, etc., are smashed by official data. Actually, in Azerbaijan, not 500,000 people are poor, accounting for just 5% of almost 10 million people, but much more.

Let's do the calculations. More than 466,000 disabled people, single mothers and old people receive social benefits. This should be supplemented by more than 540,000 poor people, who receive monthly targeted social assistance. It turns out a little more than 1 million people who need a tiny pair of dozens of manats of the state. However, we should not forget about 145 thousand workers employed in the economy, who have recently been promoted minimum wages from 105 to 116 manats.

Poverty picture is supplemented also by 1 million 319 thousand pensioners, of which slightly more than 15 thousand people receive pensions of civil servants. The average size of a civil servant pension today is more than 500 manats. This money allows them to live relatively comfortably. The pensions of the remaining labor pensioners range from 150 to 300 manats. The average monthly pension in the country is 203 manats. Try to live on these means, paying for utilities, buying food and expensive medicines.

According to the expert of the Center for Assistance to Economic Initiatives Samir Aliyev, Azerbaijan has a "unique" poverty of the population, when working citizens live below the poverty line. In developed countries, unemployed people are considered to be poor, and we have millions of pensioners and working people.

“What kind of social welfare can you talk about if a person gets 116 manats per month? Even let it be 120-130 manats. And this is not a security guard or a technician in the hospital, but a nurse in a polyclinic, a schoolteacher. At the same time, the minimum basket of goods is 155 manats. Compare these indicators. The poverty that has developed in the country is the poverty of the working population. This is a unique phenomenon in the social sphere - the working poor,” Aliyev points out.

According to him, according to the crudest estimates, today the poverty level in Azerbaijan is almost 20%, if not more. The impoverishment of a part of the population is associated with an unfavorable economic situation, inflation, unemployment, and a reduction in salaries. Our poverty line is calculated by the cost of the minimum consumer basket, which should be reviewed, since it does not correspond to reality. The government needs to seriously increase the minimum wage so that the average wage rate increases. And for this, first of all, it is necessary to stabilize the economy, support business, and help it develop. These measures will improve the situation on the labor market, create new jobs, reduce unemployment and increase the incomes of citizens. -0 ---