1. INEQUALITY IN MONTENEGRO OVERVIEW OF INDICATORS Milijana Komar September, 2015

2. Country profile 15th December 2008 - Montenegro submitted an application for EU membership 17 December 2010 - the European Union granted Montenegro the official status of candidate country. Population – 620,029 (Census 2011), female 50.6%, male 49.4% 23 municipalities – Southern (24% of population), Central (47%), Northern (29%) Upper middle income (Doing Business 2015) Rank 36 out of 189 countries (Doing Business 2015) Unemployment rate – 18.1% (Q4 2014 - LFS)

3. GDP growth GDP – 3,327 million EUR (2013) GDP per capita – 5,356 EUR (2013) Real growth rate of GDP – 3.3% (2013) Source: MONSTAT, for 2014 preliminary MONSTAT data (based on quarterly estimates)

4. Human Development Report 2014 Human Development Index (HDI) - HDI value 2013 is 0.789, high human development category, 51 out of 187 countries High HDI group – 0.735 / Europe and Central Asia – 0.738 Inequality - adjusted HDI – IHDI value 2013 is 0.733 (loss of 7.2 percent due to inequality in the distribution of the dimension indices) High HDI group – 0.735 / Europe and Central Asia – 0.738 Gender Inequality Index (GII) / Gender Development Index (GDI) – has not been calculated due to lack of data Multidimensional Poverty index (MPI) – data 2005/2006

5. Minimal consumer basket 2010 -2015 (EUR) Average wages without taxes and contributions 2008 – 2015 (EUR)

6. Poverty indicators Inequality indicators Gender inequalities Regional inequalities MDGs – progress report

7. Poverty indicators Poverty Estimation for Montenegro, 2006 - 2013 Source: Statistical Office of Montenegro Absolute poverty line for Montenegro in 2013 was 186.45 EUR per equivalent adult. Poverty rate decreased from 11.3% in 2012 to 8.6% in 2013 National absolute poverty line (in €, monthly, per adult equivalent) Poverty rate (%)Poverty gap (%)Poverty severity (%) 2006144.6811.31.90.6 2007150.768.01.40.4 2008163.574.90.90.3 2009169.136.81.40.5 2010169.986.61.10.3 2011175.259.32.00.7 2012182.4311.32.81.4 2013186.458.62.41.1

8. Poverty indicators

9. Economic vulnerability Sensibility of Poverty Rate on Poverty Line, 2006 – 2013 (%) Source: Statistical Office of Montenegro If poverty line would be bigger for 5% than those used in this study, than poverty rate in 2013 would be 10.1% instead 8.6% Poverty rate 2010201120122013 Estimated poverty rate 6,69.311.38.6 +5%8,811.614.110.1 +10%10,813.715.714.5 +20%14,418.019.818.5 +25%17,420.223.121.0 -5%5,47.49.37.3 -10%3,86.07.56.9 -20%2,24.04.94.6 -25%1,53.33.63.5

10. Inequality indicators Indices of Inequality, 2006-2013 Source: Statistical Office of Montenegro 20% of the richest increased their share in the total consumption which was for 4.3 times bigger than consumption of 20% of the poorest citizens Gini coefficient confirms decrease of inequality in Montenegro in 2013 – the coefficient decreased from 26.5% to 26.2%. Share in total consumption of the poorest 20% (S20) Share in total consumption of the richest 20% (S80) Relation of quintal shares (S80/S20) Gini coefficient (%) 20069,6%35,5%3,724.4 20078,9%35,8%4,026.4 20089,5%36,2%3,825.3 20099,3%36,9%4,026.4 20109,4%34,5%3,724.3 2011 8,9%36,5%4,1 25.9 2012 8,5%37,1%4,3 26.5 2013 8,7%37,5%4,3 26.2

11. Inequality indicators

12. Other measures: Poverty according to activity status Poverty according to number of children in household Poverty according to activity status of household head Poverty by education level Poverty by education of household head Poverty according to size of household Poverty by main household income source

13. Gender inequalities Inequalities in the labour market Activity rates and unemployment rates (LFS) Source: Statistical Office of Montenegro Year Activity ratesUnemployment rates TotalMenWomen TotalMenWomen u % 200530.326.235.5 200629.629.130.1 200719.418.120.9 200851.760.043.916.815.917.9 200951.960.443.919.118.020.4 201051.559.343.319.718.920.7 201150.158.142.619.719.520.0 201248.755.742.119.719.320.3 201350.056.943.419.520.018.8 201450.156.843.618.017.818.2

14. Gender inequalities Unemployment rates (LFS) Activity rates (LFS)

15. Gender inequalities Wage inequalities Source: Women and Men in Montenegro, 2008, 2010, 2012, 2014, Statistical Office of Montenegro Average earnings in EUR as of date: WomenMen Average earnings of women to average earnings of men 31.03.201366777586.1 30.09.201165975986.8 30.09.200958167486.2 30.09.200743656177.7

16. Regional inequalities Southern, Central, Northern region (Census 2003/2011) Poverty rate estimations by region, 2013 Source: Statistical Office of Montenegro RegionsNorthernCentralSouthern 201117.56.36.4 201218.37.99.0 201310.3 3.8 municipalitiespopulation 2003population 2011change Total 23 612,267620,0291.3% Northern13191,610177,837-7.2% Central4277,279293,5095.9% Southern6143,378148,6833.7%

17. Regional inequalities Indicators (%) - 2013 RegionsAreas NorthernCentralSouthernUrbanRural Poverty rate10.3% 3.8%7.9%9.7% Share of the poor30.1%58.1%11.8%57.6%42.4% Share of total population25.0%48.3%26.6%62.5%37.5% Inequalities in the poverty rates by regions – 2013 Inequalities in the poverty rates by regions – 2012 Indicators (%) RegionsAreas NorthernCentralSouthernUrbanRural Poverty rate17.5%6.3%6.4%4.4%18.4% Share of the poor50.4%34.4%15.2%30.8%69.2% Share of total population26.8%51.0%22.1%65.0%35.0%

18. Regional inequality Unemployment rates (LFS) Activity rates (LFS)

19. Second Progress Report on MDGs in Montenegro 2010-2013 Key findings: “Montenegro is well on track to achieve the Millennium Development Goals, except for MDGs 1, 3 and 7 (poverty reduction, gender equality and environmental sustainability). Additional efforts will be required to achieve MDG 2 (coverage of vulnerable groups) and MDG 6 (rate of mortality caused by chronic non – communicable diseases).”

20. Overview of MDGs indicators by nationally adopted targets Goal 1: Reduce relative poverty and other poverty dimensions indicator2011201220132014Goal in 2015 Target #1: By 2015 reduce the proportion of the population living under the poverty line by 50% 1. Poverty rate (%)9.311.38.65.6 2. Poverty gap (%)2.02.82.40.9 3. Severity of poverty (%)0.71.41.10.3 Target #2: By 2015 reduce inequality in distribution of consumption 4. Gini coefficient (%)25.926.526.224.0 5. Quintile ratio4.14.3 3.6 Target #3: Halve the poverty rate in the north and in rural areas by 2015 6. Poverty rate in the north (%)17.518.310.38.9 7. Poverty rate in rural areas (%)18.418.19.78.2 Target #4: Reduce unemployment to 9% by 2015 8. Unemployment rate (%)19.7 19.518.09.0 8a. Unemployment rate, M (%)19.519.320.017.89.0 8b. Unemployment rate, F (%)20.020.318.818.29.0 9. Long – term unemployment rate (%)15.515.616.014.07.0

21. Overview of MDGs indicators by nationally adopted targets Goal 3: Promote gender equality and empower women indicator2011201220132014Goal in 2015 Target #1: Economic empowerment of women 1. Employment rate for women33.734.635.437.8 50.0 2. Unemployment rate for women20.020.318.818.2 9.0 Target #2: Increase the participation of woman in elected government bodies at the national and local levels 3. Percentage of seats in the Parliament of Montenegro held by women 11.117.214.8 30.0 4. Share of women in the ministerial positions in the Government 5.818.717.6 30.0 5. Share of women in the positions of mayors/presidents of municipalities 4.7 30.0 6. Share of women in the positions of councilors in the local assemblies 13.814.224.8 30.0

22. Poverty reduction strategies Development and poverty reduction strategy (DPRS) - 2003 Strategy for the control and reduction of poverty and social exclusion - 2007 Last Strategy expired in 2012 New Strategy has not yet been adopted