1. Improving the Quality of Public Services
A Multinational Conference on Public Management
June 28-29, 2011, Moscow
The study of income and living conditions of the Slovakia’s households and its macroeconomic aspects Ladislav Kabat professor Faculty of Economics and Business The Pan European university Bratislava, Slovakia

2. This paper follows two key goals
The study of income and living conditions of the Slovakia’s households and its macroeconomic aspects
This paper follows two key goals
To present the core results of the EU SILC project with orientation on the socially vulnerable groups of population
To show the core macroeconomic indicators (GDP pc, GDP annual growth) within V4 countries in relation to level and size of the at-risk-of-poverty population

3. Some frequently presented data (in 1996)
800 million
1 852 kcal pc per day
1,2 billion
1$ pc a day
GOALS for % less

4. Some frequently presented data (in 2010)

5. Where the undernourished people live?
Ranking
Country
% of population
undernourished 1
Congo Dem Rep 75 2
Eritrea 66 3
Burundi 63 4
Haiti 58 5
Sierra Leone 46 6
Zambia 45 7
Angola 44 8
Ethiopia 9
Central African Rep 41 10
Rwanda 40

6. Poverty and social exclusion is not only the developing countries phenomena

7. Poverty across EU27 in 2007
Data for Romania and Bulgaria estimated according EU SILC methodology

8. The alarming data on EU poverty and social exclusion continue with economic recession
% citizens were at-risk-of-poverty
Over 80 million
2% more than in 2007
Problematic situation in Latvia, Romania, Lithuania – low income + high income inequality
2010 – expected results even worse

9. Terminology, data, indicators of the EU SILC project
Household as a unit of study
Household income – sum of partial incomes
Household size – all members of household
EU SILC methodology approach
Equivalized size of household
Equivalized income per member of household
New indicators on the at-risk-of-poverty
List of mandatory compiled data (variables)
Also material deprivation is studied

10. Calculation of the equivalized income per person /family member/

11. Cumulative growth in GDP over 2005-2009

12. Estimation of the at-risk-of-poverty population
The core parameters are studied:
Median and 0,6*Median
at-risk-of poverty population

13. To analyze the role of social net
Three subgroups of the surveyed households for Slovakia studied:
At-risk-of-poverty population before all social transfers
At-risk-of-poverty population before social transfers except the pension payments (survivors and old-age benefits)
At-risk-of-poverty population, when the disposable income of households is considered

14. EU SILC project results for 2005-2009 with regional breakdown

15. EU SILC project results for 2005-2009 Bratislava vs regions

16. The core statistical findings on income
Permanent growth in average income for Slovakia
Permanent growth in income differentiation between capital city and rest of Slovakia
Median value 30% higher than country's level
Median value 45% higher than some regional levels
Growing inequality between top and bottom income deciles

19. Results with social consequences
11% of Slovak citizens - more than 595,000 people, were in 2009 at-risk-of-poverty after social transfers
In terms of gender - women are relatively more at-risk-of poverty status (11.8%) than men (10.1%)
The most vulnerable groups are children and youngsters till 17 years of age with 16,8 % of them at- risk-of-poverty, followed by women over 65
The long term unemployment

20. The unemployed population is highly vulnerable

21. Material deprivation rate
Is proportion of population with enforced lack of at least three (or four) out of following items, which the household cannot afford:
to face unexpected expenses,
to go on one week annual holiday away from home,
to pay for arrears (mortgage or rent, utility bills or hire purchase installments),
to eat meal with meat, chicken or fish every second day,
to keep home adequately warm, or could not afford (even if household wanted to): a washing machine, a color TV, a telephone and a personal car.

22. Material deprivation data

23. The special findings on social situation
Mostly disadvantaged social groups are influenced
Gypsy population
Low education labor force
Handicapped citizens
The material deprivation is felt much stronger, than the income poverty indicators show.

24. To solve the trap of poverty
requires the long-term successful economic progress
active involvement and support from government and regional authorities,
solution of the long lasting unemployment,
attention to the low educated labor force

25. Support to social net over period of economic boom

26. Slovakia achieved the highest economic growth among the EU27 over 2005 and 2009

27. At-risk-of population in Visegrad countries over 2005-2009

28. Statistics does not solve the problem The calculation of the social income deficit is needed

29. The presented statistical findings are not the final solution
To improve:
definition of poverty should be formulated as a multidimensional – income and material deprivation should be covered comprehensively
methodology of estimation the share of the under poverty line population should be checked against the other information sources
Calculation of the minimum social deficit needed to upgrade the socially excluded citizens should be presented to public (government, NGOs, universities)

30. Final conclusions
The high share of socially vulnerable population has not changed significantly during the period of strong economic growth in Slovakia
Similar development has been found also in other Visegrad countries
We did not prove the expected significant impact of economic growth on social position of population in these countries as declared by government and leading political parties
These findings should be studied in more details, taking into account longer time series on relevant statistical data as well as the broader set of explanatory variables.