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One out of ten Bulgarians verging on deep poverty

БНР Новини
Photo: BGNES

One fifth of the Bulgarian population is at risk of poverty. One out of ten Bulgarians is at risk of deep poverty, lagging far behind in incomes in comparison to the middle class. This is what the analyses of experts from the Institute for Market Economics /IME/ show. Another disturbing fact is that the most vulnerable part of the Bulgarian society is the least affected by changes in the economic environment and has actually fallen in long and self-reproducing poverty. The unemployed are at the greatest risk of poverty. Half of the unemployed are at a risk of deep poverty. The number of retired people who live on the edge of survival is also huge.

Analysts point out major differences between men and women in this group, as the risks for women are significantly higher and they get higher with age. The reasons lie in the different life expectancy, but also in the very structure of the pension system. 335 thousand children under 18 also have difficulties surviving as many of them live in single-parent families or in large minority families. Two thirds of households with three or more children are at risk of poverty, and more than half live in "deep poverty." There are great differences observed in the levels of poverty in different regions of the country. In Sofia poverty among the population reaches 7 percent but in towns like Vidin, Sliven and Pazardzhik the level exceeds 40 percent. The profile of the poor people also varies and it depends on factors such as employment, education or whether one belongs to a minority group. Experts say there is no centralized policy to tackle poverty as the problems the problems and factors that cause poverty are different. With regard to one of the risk groups, the unemployed and economically inactive, measures must be taken in the direction of education and employment, experts say. Here's what Peter Ganev from IME says:

"The focus should be placed on reducing the share of people with primary education. Data clearly indicate that they fail to be successful on the labour market, and this subsequently leads to poverty. It is also important for skills needed on the labour market to be acquired in school. Furthermore policies should be oriented towards creating new jobs. If salaries are doubled it would solve the problem with the great number of working poor in Bulgaria, but a large group of people who live in deep poverty will not be affected. We should be talking not only about income policy, but also about employment policy."

The pre-election rise in social payments in 2009 led to a widening “unemployment trap,” says Yavor Alexiev from IME. The unemployment trap It is an indicator that shows the extent to which social unemployment benefits have a negative affect to the motivation of the unemployed to find work.

"This means that one can earn just 18% more for a month if they actually worked,” the economist says. “It is a phenomenon that exists in all welfare states. It leads to a reduction in personal competitiveness and labour habits of people, especially nowadays, when the requirements of employers are changing so fast. "

English: Alexander Markov




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