What Does It Mean to Be Poor?

In the evening in the Eighth Kilometer market located near the metro station Neftchilar in Baku it is no less lively than in the morning. However, while in the morning there are more or less well-off buyers who do not particularly bargain with the sellers, then the contingent changes in the evening. Mostly, pensioners, invalids and poor citizens mostly buy something, seeking to buy food at the lowest price.

Many of them do not even pay attention to the quality and freshness of agricultural products. But there are people who do not have any money at all, so they go through a heap of rotten vegetables, from which they take crushed tomatoes, cucumbers, eggplants, potatoes and onions, as well as faded greens left on the shelves by sellers. They, embarrassed, quickly fill their parcels with groceries and leave under the compassionate glances of the rest.

"Unfortunately, there are many such facts. We observe daily how elderly people come for groceries without the money to buy fresh vegetables. It is clear that they have no opportunities for a full-fledged "bazaar". These are unemployed or pensioners who receive modest pensions," the seller Shamil Aliyev says.

"The ministers talk about the well-being of people and about raising salaries and pensions. Where is this improvement? It is impossible that pensions and benefits are not even at the subsistence level, because for 155 manat, taking into account the inflation rate, you will not survive a month. How, at the level of the average monthly salary, could you eat normally and buy medicines? Why do the rich not help the poor?" Rasim Veliyev, who sells watermelons, asks.

According to UN studies, in 40 countries (including the United States, Canada and Western Europe), annual income per person is 10,000 - 25,000 US dollars, while residents of 60 countries (including India and Bangladesh) live on about 2,500 dollars a year. About 90 countries, including the CIS countries, are between the two extremes: the annual income per person in them ranges from 2,500 to 10,000 dollars.

Azerbaijan in the list of the IMF "Top 100 countries in terms of the absolute GDP of 2016" is located at the 93rd place with $ 35.2 billion of GDP, showing a negative growth of $ 18.9 billion. We have been surpassed not only by Ukraine, which is in a state of undeclared war with Russia, but even by Uzbekistan and Turkmenistan. The leading positions on the volume of wealth are occupied by the US, China, Japan, and Germany. It is comforting that Armenia was not in the rating. At the same time, Azerbaijan ranked 71st in the purchasing power parity rating, but did not get on the world list of "Top 100 countries by GDP per capita" with an indicator of $ 3,700.

"According to official data, poverty in our country over the past year has grown by one percent - from 4.9 to 5.9%. At the same time, nominal monetary income of the population in January-May of this year amounted to 18 billion 613.9 million manat, which is 7.3% more than the same period last year. At present, the inflation rate reaches 14%. The nominal cash income per capita increased by 6.2% to AZN 917.5 for the period reported. However, after paying all taxes and other mandatory payments, this amount is reduced by 30-40%. At the same time, the purchasing power of consumers has decreased by 18%," says the chairman of the Center for Sustainable Development Studies Nariman Agayev.

According to the expert, real wages and incomes of the population have fallen by 20%. The State Statistics Committee data do not reflect the real view, because, as a rule, they are somewhat overstated. These reports usually represent an increase in nominal wages, not real wages. This is a kind of game in figures, which misleads the population. The balance documents of trade objects show that the purchasing power of the population, incomes and salaries of citizens have fallen noticeably.

New research shows that Azerbaijan's income level is closer to poor countries than to the rich. In the US, a person whose annual income is less than 6,500 dollars a year is considered very poor. It turns out that according to American concepts, a person who receives an annual income twice as much as the average Azerbaijani is very poor. The tenth part of the inhabitants of the country considers itself rich, as they can afford everything they want. Half of the population believes they are neither rich nor poor. The third part lives in a rigid economy, as they have to thoroughly think over every spending. Nearly 6% of the country's population does not have money to buy food.

What is the cause of poverty? First, it is the lack of jobs. Secondly, it is low salaries in the spheres of education and health. And in other state-run bodies the situation is not better.