The best way to fight poverty

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Experts from the world Bank (WB) believe that productivity is the main source of sustainable income growth and income growth — the main factor of poverty reduction.

As WB says, in a quarter of developing countries, where productivity grew at the fastest pace in 1980-2015 years, poverty has declined on average by more than 1 percentage point per year. But the inhabitants of the countries with the lowest growth rates of labour productivity, by contrast, was impoverished, according to the newspaper “Vedomosti”.

However, complain about the world Bank, after the financial crisis of 2008-2009, the growth rate of this indicator has not recovered neither in developed nor in developing economies.

In this regard, analysts of the WB is recommended to increase the number and improve the quality of production factors and the efficiency of their use is to create a favourable economic environment (institutional and social), to develop trade integration, increase the availability of financial instruments. But the main thing — to encourage investment in human capital.

We will add, at the beginning of last November, the Chairman of the accounts chamber of the Russian Federation Alexey Kudrin has counted in Russia almost 20 million people in poverty (i.e. with incomes below the subsistence minimum). “We have almost 20 million people below the poverty line. In our model, state the lives of many was very simplistic or aimed at the preservation of its existence. People have all the time to fight for survival. I have repeatedly said that for a country like ours to have so many poor is a disgrace. At our level of GDP per capita, with such serious resource we should not allow that to happen,” — says the head of the controlling Department.

According to the same Rosstat, the number of Russians, whose incomes are below the subsistence minimum (poverty level), in the third quarter of 2019 17.6 million (i.e. 12% of the total population).

One of the national development goals outlined in the “may” decree of the President of Russian Federation Vladimir Putin named the halving of poverty by 2024, and the government have to reduce it to 6.6%.

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