Poverty Measurement in Kazakhstan: Current Situation and Perspectives

1. Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Poverty Measurement in Kazakhstan: Current Situation and Perspectives Switzerland, Geneva, 2-4 December 2013

2. 40 000 50,0 46,7 44,5 45,0 35 000 33 745 40,0 30 618 37,5 30 000 33,9 35,0 26 152 31,6 25 000 30,0 21 348 20 037 20 000 25,0 16 935 16 815 16 072 20,0 18,2 15 000 13 487 12 660 12 364 13 723 15,0 12,7 9 751 9 653 10 000 8 387 8 410 7 569 7 618 12,1 10,0 8,2 6 518 6 785 6 457 5 729 6 003 6,5 5 655 5,5 5 000 3,8 5,0 1,9 1,9 1,7 1,8 1,6 1,6 2,0 1,3 1,2 1,2 1,1 1,0 0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SML, annual average, tenge Income used for consumption, per capita, tenge Ratio of income used for consumption to SML Proportion of population below SML, % Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Living Standards Statistics in 2001-2012: Major Indicators

3. 16 0,35 0,339 0,328 14,8 0,315 0,312 0,309 0,305 0,304 14 13,3 0,290 0,3 0,288 0,284 0,278 0,267 12 0,25 10,2 10 8,8 0,2 8,3 8,1 8 7,5 7,4 7,4 7,2 6,8 6,8 6,5 0,15 6,2 6,1 5,9 5,7 6 5,5 5,3 0,1 3,9 3,9 4 2,9 2,5 2,4 2,3 0,05 2 1,3 1,3 1,1 0,9 0,8 0,7 0,5 0,3 0,3 0,3 0,1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Headcount ratio, % Poverty gap ratio, % R/P 10% ratio Gini coefficient Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Living Standards Statistics in 2001-2012: Major Indicators

4. Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Social subgroups under Subjective Household Welfare Assessment Survey in 2013:

5. 0 Rich Upper middle class 86,2 13,8 Middle class 51,7 44,9 3,4 Not poor, but not middle class yet 28,7 60,0 11,3 Poor 9,1 59,1 31,8 rural 32,7 59,3 8,0 urban 42,2 48,7 9,1 total 38,5 52,8 8,7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% good satisfactory poor Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Household living conditions depending on social subgroups (March 2013) percent в процентах

6. Above 600 000 71,0 29,0 400 001 – 600 000 44,6 55,4 200 001 – 400 000 0,5 20,7 72,8 6,0 100 001 – 200 000 2,3 40,1 55,1 2,5 75 001 – 100 000 2,6 56,8 39,8 0,8 50 001 – 75 000 4,0 68,4 27,3 0,3 20 001 – 50 000 15,5 74,5 9,9 0,1 Less than 20 000 48,4 51,6 Total households 4,2 52,2 41,9 1,7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% poor not poor, but not middle class yet middle class upper middle class rich Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Monthly household income depending on social subgroup (March 2013) tenge percent

7. Once in 6 months 24,7 30,4 34,6 40,4 Once in 2-3 months - 3 33,1 31,5 32,7 36,0 Once a month 17,2 19,9 19,3 19,5 continuously 25,0 18,2 13,4 4,1 (chronic diseases) Have health issues 80,1 74,0 67,5 62,0 Have no health issues 19,9 26,0 32,5 38,0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% poor not poor, but not middle class yet middle class upper middle class rich Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Distribution of households by health assessment (March 2013) Частота заболеваний в процентах Disease incidence Наличие/отсутствие проблем со здоровьем Health issues / no health issues

8. Difficult to answer 15,8 14,4 6,4 0,6 Not satisfied 51,6 20,8 5,1 Satisfied 32,6 64,8 88,5 99,4 Distribution of households by satisfaction with economic situation (March 2013) Difficult to answer 17,9 24,4 17,9 9,2 Not satisfied 57,8 39,1 23,6 10,2 Satisfied 24,3 36,5 58,5 80,6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% poor not poor, but not middle class yet middle class upper middle class rich Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Distribution of households by satisfaction with their lives (March 2013) в процентах

9. rich upper middle class 85,6 11,0 2,7 0,8 middle class 76,7 11,4 10,7 1,9 not poor, but not middle class yet 66,1 16,8 13,9 poor 49,2 4,8 22,7 22,8 1,3 Difficult to answer 45,5 17,8 35,3 Not satisfied with their lives 43,4 24,8 24,4 5,7 0,7 Satisfied with their lives 79,3 12,2 7,1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Better than we do Worse than we do Difficult to answer Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Opinions of households on the future of their children as compared to their living standards (March 2013) percent в процентах Much the same we do

10. Job cuts, growth of unemployment 35,3 46,5 47,1 38,9 Reduction in budget expenditures 9,0 13,5 12,7 13,5 FOREX deficit in Kazakhstan 3,8 0,6 1,3 2,3 Drastic change in tenge/major currencies exchange rates 8,3 4,8 5,7 8,9 Destabilized banking sector 13,8 8,6 5,7 8,9 Price rise for major goods and services 70,0 73,0 75,5 73,8 Wage cuts, detention of wages 23,7 44,7 33,3 27,1 Decline of production 35,4 24,1 28,4 27,1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% poor not poor, but not middle class yet middle class upper middle class rich Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Household opinions on the first signs of economic crisis (March 2013) в процентах percent

11. 60,0 20,0 19,3 54,3 48,8 50,0 46,7 16,0 15,5 44,5 43,8 14,8 42,9 42,4 40,0 12,7 13,3 12,4 35,6 11,8 37,5 12,0 33,9 31,6 10,2 30,0 25,7 8,8 8,3 8,0 21,8 7,5 19,6 20,0 18,2 17,6 5,6 15,5 14,3 4,1 12,7 12,0 3,7 4,0 3,9 3,1 9,4 10,0 2,6 12,1 2,4 6,6 1,9 6,5 5,4 8,2 5,5 4,5 2,3 1,3 3,8 3,3 1,1 0,9 1,7 1,0 0,5 0,7 0,3 0,7 0,2 0,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Долянаселения с доходаминиже 5 USD по ППС в день Proportion of population below subsistence minimum level • Proportion of population below $5 (PPP) per day Poverty gap ratio below subsistence minimum level Poverty gap ratio below $2.5 per day Poverty gap ratio below $5 ((PPP) per day Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Values of major MDG1 indicators in Kazakhstan (2001-2012) percent Proportion of population below $5 (PPP) per day

12. 50,0 47,5 45,0 43,3 42,6 40,0 40,0 36,8 36,4 35,2 35,0 31,1 29,8 30,0 27,4 25,2 25,0 20,5 20,0 17,2 14,9 15,0 13,2 14,5 11,5 11,1 9,5 9,4 10,0 8,4 6,8 5,8 4,5 4,5 3,6 3,6 5,0 2,9 2,2 2,3 1,1 0,7 0,2 0,4 0,4 0,1 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Proportion of employed people living below subsistence minimum level Proportion of employed people living below $2.5 (PPP) per day Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Values of major MDG1 indicators in Kazakhstan (2001-2012) в процентах percent Proportion of employed people living below $5 (PPP) per day

13. Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Subsistence Minimum Level and Median Income Used for Consumption as thresholds for poverty measurement in Kazakhstan Income used for consumption 2012 (median) = 27,970 tenge or US$187.6 Median income used for consumption = US$187.6 Food component 60% (43 items) Non-food component 40% (estimation) 60% of median income used for consumption = US$112.6 Consumption basket (subsistence minimum level) 2012 = 16,815 tenge or US$112.8 SML = US$112.8

14. Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics • www.stat.gov.kz

15. Statistics Agency of the Republic of Kazakhstan Department of Labour and Living Standards Statistics Thank you!