A phenomenon of the working poor man

Poverty level measures as referred to in the economic results of the year were equivalent to a slap across the face of hundreds of thousands of citizens in tatters. They were amazed to learn that the poor remained as they were while in statistical terms the poverty level reduced. In an agony of doubt, citizens have an issue with the current situation. It"d be appropriate to share some thoughts and cast doubts on alleged 5, 3% of the poverty level in our Republic.

The essential point to remember is that it"d be absurd to speak about the poverty level in a country rich in natural resources, entry into markets and hard-working businessmen. The poverty cannot be the point at issue especially as a downtrodden Azerbaijani is able to cast off the yoke of beggarhood in any part of the world. In extreme case it may be affirmed about a purely symbolic level.

It"d be appropriate here to recall words of Nobel Prize Winner on Economy Mohammad Yunus who said that the poverty in an independent country should be sent to a museum and rolled out for generations to come. The point is that the civilized society is extrinsic of the poverty. "It is possible to release the world from the poverty, for it is not natural for people but forced to them. Let"s make our efforts to end with the poverty once and for all, and submit it the museum", - he wrote (Yunus M. Creating poverty-free world: Social business and the future of capitalism / Mohammad Yunus, Alain Joliette. - М.: Alpina Publishers, 2009. - p. 307). Hence, there is a certain connection between the welfare and cultural values of society. If we want to hear encouraging words about our society, we must suppress the poverty out of lives of our citizens.

Assistance of international standards...

Accelerated reduction of the poverty level in Azerbaijan from 49% to 5, 3% in 2001 prompts us to look into economic reforms that made it possible. The one with economic background and analytical mind-set cannot conceive the fact. There are tens of indicators that call it into question. Suffice it to look at some of them to fully realize the situation.

First, there are various poverty level definition criteria in the world practice. One of them is associated with the fraction of population" income in the consumption expenditures. Under international standards, if the population expends more than 50% of its income for consumption, these people are regarded as poor. A figure for the United States stands at 35%. (The point is about Orshinskiy"s approach. By the way, the poverty level in the USA in 2014 for a family of 4 members was $24,000 worth income.). The poverty level in the developing countries is believed to be expenditures of 60% of income for food products and nonfoods. A figure in Azerbaijan reaches above 72% in terms of 5% poverty level.

Is there a distressed family (49%) in Azerbaijan to expend 3 out of 4 manats for food and nonfood products? No, it expends more than above. At any rate, a considerable part of monthly income is spent for purchase of food and nonfood products, for consumption.

Second, there are 1,3 mln pensioners in our country receiving 240 manats. Is it possible to survive with 150-200 manats worth pensions a month? Also, there is a great number of citizens receiving 55 manats worth allowances and 180 manats worth pensions. However, according to the current standards, they are not deemed poor. If you have a land plot, you are not deemed poor under the current legislation.

Third, it is easy to imagine the reduction of the poor if we look at the situation around the reduction in the number of unemployed. A simple example ... Since 2019, new amendments have been made in the Tax Code. These amendments embraced those with a small source of income: from now on, barbers, waiters, household workers will have to pay a fixed tax as taxpayers.

Was it done to reduce the scale of shadow economy at the expense of incomes of certain social groups? No! Starting with January 1, payers of fixed taxes will be registered at the Ministry of Taxes as taxpayers. In so doing, they will be granted the status of small business subjects and thus not deemed unemployed. Those capable of paying a minimum consumer budget are deemed neither unemployed, nor poor. He who is employed and is a subject of entrepreneurship is not deemed unsecured. Even those starving to death are not deemed the poor. If he fails to meet poverty criteria, he won"t be included into a group of economically disadvantaged population.

Fourth, until recently the number of targeted aid recipients in or country exceeded 650,000. Later on, as requirements toughened the number of successful citizens tended to fall.

This came as an official recognition of the fact that all targeted social aid recipients should be deemed as poor. The government realized that citizens without any income upset a balance of public relations. Lending a minimum financial assistance to this group of population, the government tried to iron out their pecuniary burdens. From conceptual standpoint, privileges of this type make the poor forget for a while about their problems but fail to resolve them.

In his book "A banker for the poor" Nobel Prize Winner from Bangladesh M. Yunus wrote that the poverty is a chronic ailment. It cannot be cured without special measures. Some short-term auxiliary measures may be taken; however, a person interested in accelerated tactical steps has to follow long-term strategy. It is no mere coincidence that the selection between a fish for the man and the fishery is made on rational vector.

That"s why a basic principle of the state system of social security in the western world is "you are helped if jobless", "if you need support - be good enough to work". In this case you will see not hopeless unemployed and poor men but men of push and go ashamed of their poverty.

Azerbaijan catchs up Norway...

Two questions are worth mentioning:

• In Norway with its 5 mln population and $ 1,085 tln at the Government pension fund the poverty level is 4,3%, is it possible that in Azerbaijan with its 10 mln population and $34 bln the poverty level is 5,3%?

• In the European Union with its 27 member-states (after Brexit), 17% population, or 85 mln are below poverty line. Isn"t surprising that Azerbaijan with its 5,3% of the poverty level has "distanced" Europe?

We have to think about that. We are born disadvantaged, we are unsecured but we are not regarded poor?