Why does Georgian live in poverty?

Аннотация

There is no precise definition of the term “poor” in the economic literature. According to some, a poor person is one who is malnourished and does not have normal living conditions. However, it is unclear what is meant by malnutrition and what is meant by normal living conditions, what its criteria and statistical indicators are. This situation is due to the fact that we often imagine poverty as an objectively occurring phenomenon on a global scale, when it depends on a number of global events and internal economic, social and political factors and is a product of subjective assessments. This is why it is difficult to compare countries in terms of poverty levels, even based on national characteristics and habits. According to the World Bank, a person whose daily expenses are less than $2 is considered poor. In some countries, such as Norway, poverty does not exist; in the United States, a family of four is considered poor if its annual income is less than $24,000, based on a report that the parents work and each earns $1,000 per year. month. The poverty line in EU countries is 60% of average income. In Germany, a citizen whose monthly income is less than 900 euros is considered poor. A resident of Luxembourg is considered poor if his monthly income does not exceed 1,500 euros, in Denmark - 1,200, in Sweden - 1,000.