Abstract
In modern social science, the concept of multidimensional poverty is considered the most progressive approach to measuring poverty in countries of various development levels, including the developed ones. As an indicator of poverty in the EU, the multidimensional index of the risk of poverty and social exclusion (AROPE) is used, which integrates the indicators of income poverty, material deprivation and exclusion from the labour market. The empirical basis for its calculation is the data of the survey “Statistics of income and living conditions in the EU” (EU-SILC), published by the statistical office of the European Union. Within the framework of this article, the authors tried to contribute to the theoretical and methodological basis for studying the issue of multidimensional poverty by measuring and analysing it within the framework of the resource approach using the empirical data collected by the authors in one of the peripheral regions of Latvia - Latgale, which for many years has had the lowest indicators of economic development in the country. The resource-based approach is founded on the following methodological path: resources available for the people and households can be transformed into capital as a result of its activation and capitalization that, in its turn, can give the person socially economic benefit, i.e., a resource becomes a capital. The methodology of this study involves the application of new concepts: the “resource-poor” (few resources) and the “functional-poor” (low capitalization of available resources), as well as the “resource-functional poor”, who, according to the authors, represent different target groups for the social policy, since they fundamentally differ in terms of both the causes of poverty and the approaches to supporting these groups.
Highlights
Within the framework of this article, the authors, firstly, will analyse the existing approaches to measuring multidimensional poverty and their results, and secondly, will try to contribute to the theoretical and methodological basis applied for studying the issues of multidimensional poverty, having measured and analysed it within the framework of the resource-based approach (Tikhonova 2006; Boronenko, Drezgic 2014) with the use of empirical data collected by the authors in one of the peripheral regions of Latvia - Latgale, which for many years has had the lowest economic development indicators in the country
According to the empirical interpretation proposed by the authors, the “resource-poor” are those people who have relatively few available resources (less than 60% from the list proposed in Table 2 - by analogy with the principle of relative poverty applied in AROPE), but the level of their capitalization is relatively high, i.e. > 60% of the resources available to respondents or their families bring them monetary income and / or social position and / or moral satisfaction
Having analysed the existing approaches to measuring multidimensional poverty and their results, the authors came to the conclusion that at present, the indicators of economic poverty and inequality, calculated by the Gini index, a poverty line of 1.9 USD per day, the division into poverty and extreme poverty are no longer sufficient
Summary
An initiative group of scientists from Oxford University studying poverty and human development has developed a deprivation-based Multidimensional Poverty Index (MPI), which is widely used by international research organisations in their statistical reviews and reports (Alkire 2008, 2015; Kakwani, Silber 2008; Chakravarty et al 2008; European Commision 2012; Alkire et al 2017; Betti et al 2018, OPHI, UNDP 2019, 2020) It was originally developed for India, but the analysis of the scientific literature shows that in recent years it has been calculated for many countries, including the developed ones (Betti et al 2015; Alkire, Fang 2019; Ciani et al 2019; Mitra, Brucker 2019). Within the framework of this article, the authors, firstly, will analyse the existing approaches to measuring multidimensional poverty and their results, and secondly, will try to contribute to the theoretical and methodological basis applied for studying the issues of multidimensional poverty, having measured and analysed it within the framework of the resource-based approach (Tikhonova 2006; Boronenko, Drezgic 2014) with the use of empirical data collected by the authors in one of the peripheral regions of Latvia - Latgale, which for many years has had the lowest economic development indicators in the country
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