An Approach to Assessing the National Multidimensional Poverty Line in Russia

Ludmila Kormishkina,Dmitrii Koloskov,Evgenii Kormishkin,Eka Ermakova

doi:10.15549/jeecar.v8i3.778

Ludmila Kormishkina, Dmitrii Koloskov + Show 2 more

Open Access

https://doi.org/10.15549/jeecar.v8i3.778

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Abstract

This study aims to econometrically assess multidimensional poverty in Russia with regard to the quantitative and qualitative parameters of the population’s life-sustaining activities. Russia’s partial integrated poverty indices were constructed based on a combination of quantitative and qualitative parameters characterizing the possibilities of satisfying needs in the main spheres/sectors of human values. The indicators that affect the poverty level in the country were determined using linear regression models. The available time lag in the regression models enabled us to make a short-term forecast of changes in the poverty level in Russia. The proposed approach to assessing the national poverty level considers monetary indicators related to the level of income of the population, the affordability of services necessary to meet human needs, and the presence of opportunity costs, which imply sacrificing a person's free time to ensure the material wellbeing necessary for life

Highlights

Global Poverty TrendsWhen it comes to poverty, in most cases, it means daily malnutrition or, even worse, fasting, which threatens human life and health (Bhuyan et al, 2020), as well as the lack of funds for education and basic social services, which lead to a tendency toward a person’s isolated lifestyle and social discrimination, etc. (Pascual-Sáez et al, 2019)
The Russian Federation cannot be classified as a poor country by international standards, there is large-scale and multidimensional poverty of the population (Fig. 1a and 1b)
Expansion of the assessed criteria in determining the poverty level compared to Spicker (2012), Dunn (2017), and Zizzamia (2020) contributes to a comprehensive assessment of the poverty phenomenon based on the level and conditions of life, making it possible to ensure the satisfaction of human needs

Summary

Introduction

Global Poverty TrendsWhen it comes to poverty, in most cases, it means daily malnutrition or, even worse, fasting, which threatens human life and health (Bhuyan et al, 2020), as well as the lack of funds for education and basic social services, which lead to a tendency toward a person’s isolated lifestyle and social discrimination, etc. (Pascual-Sáez et al, 2019). Before 2020, more than 9% of the global population lived below the international poverty line (The World Bank Group, 2021c). While between 1990 and 2015 the extreme poverty level in the world fell by almost half, declining almost by 1% per year, after 2015 the rate of decline slowed down significantly due to political conflicts and worsening climate changes. With the onset of the pandemic, the trend reversed, and in 2020, for the first time in 20 years, the global level of extreme poverty began to increase. The World Bank estimates that the population classified as extremely poor will grow to about 150 million people by the end of 2021 (The World Bank Group, 2021c), and by the end of 2030, the global poverty level could be about 7% (The World Bank Group, 2020a). Achieving progress in poverty reduction is one of the most pressing global goals, and poverty eradication is the first of the 17 goals set out in the 2030 Agenda for Sustainable Development (United Nations, 2021)

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