Bulgaria : Poverty Assessment

The sharp reduction in poverty in Bulgaria since the 1997 crisis highlights the role of effective economic stabilization policies and the social safety nets in improving the living conditions of the population. The nature of poverty in Bulgaria has changed since 1997, when poverty for many households was a transient phenomenon resulting from the immediate shock of hyperinflation and sharply increasing unemployment. Poverty in 2001 is more entrenched, concentrated among clearly defined groups. Most strikingly, poverty is highest among ethnic minorities, which comprise 60 percent of the poor. Roma are overrepresented among this group. this trend highlights the need for Bulgaria's poverty reduction strategy to focus on measures to address inclusion of ethnic minorities within society. Despite the improvements since 1997, there are indications of underlying fault lines which threaten the trend of rising living standards. In particular, if the high level of unemployment is maintained, or continued to increase, poverty will go up. While unemployed households have managed to stay out of poverty by relying on the safety net and private coping strategies, the close link between poverty and unemployment indicates that these trends are not sustainable. Similarly, the importance of the skills gap suggests that declining access to education will contribute to poverty over the long-term. The priority for the Government is to maintain its reform path and sustain the growth levels of the past five years. A combination of policies which address the underlying causes of unemployment, expand opportunities through building human capital, and protect the poor through well-targeted programs are the pillars of an effective anti-poverty strategy. Improvements in poverty monitoring and communication with the public are also key. Despite the improvements in living conditions since 1997, opinion surveys indicate that nearly three-quarters of the population think that they live in poverty. Addressing these perceptions and expectations is critical to maintain public trust in government institutions and the reform process.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2002-10-29
Subjects:ABSOLUTE POVERTY, ACCESSION COUNTRIES, AGRICULTURAL PRODUCTIVITY, ALCOHOLISM, ANNUAL RATE, AVERAGE POVERTY, BASIC EDUCATION, BENEFIT INCIDENCE, BUDGET CONSTRAINTS, BUSINESS ENVIRONMENT, CASE STUDIES, CHILD ALLOWANCES, CHRONIC POVERTY, CLIMATE, CONSUMPTION DISTRIBUTION, CPI, CURRENCY BOARD, CURRENCY UNIT, DECISION MAKING, DENSITY FUNCTION, DEVELOPMENT PROGRAMME, DISCRIMINATION, ECONOMIC CIRCUMSTANCES, ECONOMIC COOPERATION, ECONOMIES OF SCALE, EDUCATIONAL ATTAINMENT, ETHNIC GROUPS, ETHNIC MINORITIES, EXPENDITURES, FAMILIES, FARMS, FOOD INDUSTRY, GINI COEFFICIENT, HEALTH CARE, HEALTH INDICATORS, HEALTH SERVICES, HEALTH STATUS, HIGH POVERTY, HIGH UNEMPLOYMENT, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HOUSING, HOUSING CONDITIONS, HUMAN CAPITAL, HUMAN DEVELOPMENT, HUMAN DEVELOPMENT SECTOR UNIT, INCOME POVERTY, INCREASING INEQUALITY, INFANT MORTALITY, INFLATION, INFORMAL EMPLOYMENT, INFORMAL SECTOR, INFORMAL SECTOR EMPLOYMENT, INSURANCE, INTERGOVERNMENTAL TRANSFERS, INTERNATIONAL STANDARDS, INVESTMENT CLIMATE, LABOR COSTS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKETS, LAND USE, LEGISLATION, LIFE EXPECTANCY, LIVING STANDARDS, LIVING STANDARDS MEASUREMENT, LONG TERM, LONG-TERM UNEMPLOYMENT, LOW INCOME, MACROECONOMICS, MARKET ECONOMY, MEASURING POVERTY, MIGRATION, MINIMUM WAGES, MORTALITY, MOTIVATION, MULTIVARIATE ANALYSIS, NATIONAL AVERAGE, NATIONAL LEVEL, NON-INCOME DIMENSIONS, OPPORTUNITY COSTS, PARENTS, PENSION SYSTEM, POLICY IMPLICATIONS, POOR CHILDREN, POOR HOUSEHOLDS, POOR POPULATION, POVERTY ASSESSMENT, POVERTY GAP, POVERTY HEADCOUNT, POVERTY LEVELS, POVERTY LINE, POVERTY LINES, POVERTY MAP, POVERTY MEASURE, POVERTY MONITORING, POVERTY PROFILE, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, POVERTY RISK, PRIVATE SECTOR, PRIVATE SECTORS, PRO-POOR, PRODUCTIVITY, PUBLIC PROGRAMS, PUBLIC SECTOR, PURCHASING POWER, PURCHASING POWER PARITY, REAL TERMS, RISK GROUPS, RURAL AREAS, RURAL HOUSEHOLDS, RURAL POOR, RURAL POVERTY, RURAL RESIDENTS, SAFETY, SAFETY NET, SCHOOLS, SECONDARY SCHOOLS, SIGNIFICANT IMPACT, SOCIAL ASSISTANCE, SOCIAL ASSISTANCE PROGRAMS, SOCIAL EXCLUSION, SOCIAL INSURANCE, SOCIAL POLICY, SOCIAL PROTECTION, SOCIAL PROTECTION PROGRAMS, SOCIAL WORKERS, STRUCTURAL REFORMS, TASK TEAM LEADER, TAXATION, TRANSITION COUNTRIES, UNEMPLOYED ADULTS, UNEMPLOYMENT BENEFITS, URBAN AREAS, VICTIMS, VIOLENCE, VULNERABLE GROUPS, WAGE INCOME, WORKERS, WORKING CONDITIONS, WORKING POOR POVERTY ASSESSMENTS, UNEMPLOYMENT RATES, SOCIAL SAFETY NETS, SOCIAL WELFARE, POVERTY MEASUREMENT, REGIONAL POVERTY, MACROECONOMIC CONTEXT, JOB CHANGING, REGULATORY FRAMEWORK, EMPLOYMENT CREATION, EMPLOYMENT SKILLS, SOCIAL PROTECTION SYSTEMS, UNEMPLOYMENT INSURANCE, COPING STRATEGIES, HUMAN CAPITAL DEVELOPMENT, ACCESS TO EDUCATION, EDUCATIONAL REFORMS, ATTENDANCE, DESEGREGATION, MINORITY GROUPS, CHILD ASSISTANCE, AT-RISK JUVENILES,
Online Access:http://documents.worldbank.org/curated/en/2002/10/2064720/bulgaria-poverty-assessment
https://hdl.handle.net/10986/13868
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Summary:The sharp reduction in poverty in Bulgaria since the 1997 crisis highlights the role of effective economic stabilization policies and the social safety nets in improving the living conditions of the population. The nature of poverty in Bulgaria has changed since 1997, when poverty for many households was a transient phenomenon resulting from the immediate shock of hyperinflation and sharply increasing unemployment. Poverty in 2001 is more entrenched, concentrated among clearly defined groups. Most strikingly, poverty is highest among ethnic minorities, which comprise 60 percent of the poor. Roma are overrepresented among this group. this trend highlights the need for Bulgaria's poverty reduction strategy to focus on measures to address inclusion of ethnic minorities within society. Despite the improvements since 1997, there are indications of underlying fault lines which threaten the trend of rising living standards. In particular, if the high level of unemployment is maintained, or continued to increase, poverty will go up. While unemployed households have managed to stay out of poverty by relying on the safety net and private coping strategies, the close link between poverty and unemployment indicates that these trends are not sustainable. Similarly, the importance of the skills gap suggests that declining access to education will contribute to poverty over the long-term. The priority for the Government is to maintain its reform path and sustain the growth levels of the past five years. A combination of policies which address the underlying causes of unemployment, expand opportunities through building human capital, and protect the poor through well-targeted programs are the pillars of an effective anti-poverty strategy. Improvements in poverty monitoring and communication with the public are also key. Despite the improvements in living conditions since 1997, opinion surveys indicate that nearly three-quarters of the population think that they live in poverty. Addressing these perceptions and expectations is critical to maintain public trust in government institutions and the reform process.