Georgian Subsistence Minimum Means Starving
09 August, 2012
Georgian Subsistence Minimum Means Starving

Georgian subsistence minimum calculation methodology should be revised and tailored to Georgian reality as its current level actually equals to starving. 

The meager subsistence minimum reduced by 5% from  January of 2012,  by June shrunk from GEL 263.7 per average four-member family to GEL 249.9 respectively. Subsistence minimum for an able-body man dropped from GEL 157.2 to GEL 149 in the similar period that means that a mature man who spent GEL 5.24 per day in January must live on GEL

4.96 that equals about USD 3 per day. This sum includes transportation and communal service costs for heating and electricity as well.

According to Tengiz Tsekvava, Deputy Director Executive of Geostat-Georgian statistics body, the dwindling tendency of subsistence minimum is defined by price slump on products, and experts agree explaining the factors by seasonal effect. However experts still question relevance of Georgian subsistence minimum meaning to starving as a matter of fact.

Tsekvava argues the methodology is as right as possible.

“The subsistence calculation method is based on expense structure of Georgian households. Consequently, it is as close to Georgian reality as possible,” Tsekvava commented to Georgian Journal. “Besides the subsistence minimum is based on minimum food basket consisting of 40 units approved by ministry of labor, health and social care.”

According to him, 70% of the subsistence figure is made by food-stuff related expenses and 30% comes on non-food expenses. The food-stuff expenses are calculated based on food basket approved by the special order of the ministry of labor and healthcare of Georgia in 2003 stipulating that 2300 kilocalories per day are sufficient for a persons’ existence unlike the US where the similar figure exceeds 3700 kilocalories whatsoever.

Georgian economic analysts think Geostat that uses internationally acknowledged calculation methodology should revise the technique so as to tailor it to Georgian reality and provide with trustful statistics giving a real picture of human existence in the country.

“According to UN standards if a daily income is less than USD 2 it means that a person is starving in fact”, Irakli Lekvinadze, an economic analyst, told Georgian Journal. “GEL 4.96 per day for an able-body man who most probably goes on work and needs transportation is much below par of living standards. Apart of food a man spends at least GEL 1.60 per day on transport costs that means he can spend GEL 3. 36 on food that can be enough for bread and sugar. It cannot be assumed that a man can live on that.” Indeed nobody can buy on that money such essential products as meat recommended twice per week and costing about GEL 12.50, dairy products [a liter of milk costs GEL2.60 alone], vegetables and fruit – all important minimum components to keep body in healthy condition.

Soso Archuadze, an economic analyst, believes the subsistence minimum must be at least doubled and share of food and non-food staff be equal to 50-50% to reflect Georgian living standards.  He thinks it is a mistake to separate subsistence minimum and poverty level as Geostat does, for in pursuance with the developed world, they are viewed as equal by concept.

“Actually in the developed countries subsistence minimum is the same as the poverty level, they are equal and should not be separated. It means that if a person lives on subsistence minimum he/she is already on the brim of poverty. In the US, if a family spends more than one-third of income on food, it is estimated as poor. And a daily minimum is more than 3700 kilocalories there,” Archuadze said in the interview with GJ.”There is no doubt that the subsistence minimum calculation methodology in Georgia should be revised.”

Print
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
16.11.2018
17.11.2018
USD
1
USD
2.6818
2.6727
EUR
1
EUR
3.0299
3.0268
GBP
1
GBP
3.4332
3.4240
RUB
100
RUB
4.0185
4.0447
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6727
EUR
1
EUR
3.0268
GBP
1
GBP
3.4240
RUB
100
RUB
4.0447
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30