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Inequality and poverty in the CIS & Baltics

Explore the impact of macroeconomic changes on poverty, trends in income inequality, and policies to combat poverty in the CIS & Baltics. Learn about emerging health threats, education inequalities, and policy options to reduce poverty and protect human capabilities.

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Inequality and poverty in the CIS & Baltics

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  1. Inequality and poverty in the CIS & Baltics Jane Falkingham University of Southampton & London School of Economics

  2. Inequality and poverty in the CIS & Baltics • Macroeconomic change • Extent of poverty • Policies to combat poverty

  3. Figure 1: Change in real GDP per capita, 1989-2002

  4. Figure 2: Real GDP per capita 2002 (1989=100)

  5. Figure 3: Trends in real wages (1989=100)

  6. Figure 4: Income inequality, 1989 and 2001

  7. Has recent economic growth been pro poor?

  8. Figure 5: Changes in income inequality, 1995-2001

  9. Declines in output,falls in real wages,rising inequality, increasing poverty,new groups of poor, including the working poor.

  10. Figure 6: Material Poverty -% living below $2 & $4 PPP a day

  11. Has recent economic growth been effective in reducing poverty?

  12. Figure 7: Trends in proportion living in poverty, 1996-2001

  13. Figure 8: Nutritional Status of Children Source: Falkingham 2003

  14. Emerging threats to health • Infectious diseases including TB • HIV-AIDs • Fastest growing epidemic in the world • 4/5 new infections under age 30 • Steep rise in cases in Central Asia, where awareness of disease remains low • And knowledge of prevention low even in western CIS • Widening inequalities in access to health care

  15. Education: access and opportunities

  16. Figure 9: Pre-school enrolment rates, 1989-2001 Source: UNICEF 2003

  17. Schooling • Enrolment rates in basic education remain high (80-90%) • Absences have increased • Over a third of children absent for more than two weeks in Tajikistan • Reasons for absence • 10% working • 8% no teacher/supplies • 35% no shoes/clothing

  18. Evidence of increasing inequalityFigure 9: Enrolment rates in Kyrgyzstan, 1998

  19. Policy options to reduce poverty & protect human capabilities • Foster labour intensive economic growth • improved governance, strengthened legal institutions, greater access to credit • Ensure immediate material needs • cash or in-kind benefits • Restore and maintain access to basic social services • Explore new ways to target and deliver social protection

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