Poverty, Inequality, National Wealth: Empirical Analysis and Policy Implications

DOI: https://doi.org/10.33917/es-4.184.2022.70-81

The article is devoted to the study of poverty and inequality in the economic growth of the most developed countries, with a general focus on the formation of social policy consistent with the growth policy. The purpose of the study is to conduct a macroeconomic analysis of poverty, inequality and wealth in the G7 countries, China and Russia, with the ensuing substantiation of a social development strategy for the Russian economy. The methodology is made up of empirical analysis, as well as regression modeling, which make it possible to identify in a comparative way the connectivity of the dynamics of relevant indicators of social development  — the level of national poverty and wealth, the Gini coefficient and general inequality, growth rate, human development index. The result of the study is a precisely confirmed empirical relationship between the level of poverty and inequality for the countries considered, that is, a high value of one parameter corresponds to a high value of another. Consequently, poverty reduction may imply a reduction in inequality, and not only relative, but also absolute. In addition, it was found that for developed countries, high levels of poverty and inequality mean low values of the human development index. Social policy aimed at human development requires that its instruments be harmonized, including the necessary alignment with the current macroeconomic policies to stimulate growth. The magnitude of national wealth does not guarantee high growth rates, as well as low levels of inequality and poverty. A high level of inequality can accompany economic growth, having a positive effect on the growth rate, as for the Russian economy. In this regard, the current policy needs a reasonable selection of measures to stimulate growth and, at the same time, measures to reduce inequality, which can and should not be limited only to tax changes that require special confirmation of influence, but to institutional changes that regulate the creation and appropriation of income.


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Assessment of the Global Risks Impact as a Tool for Devising the Economic Strategy of Russia: Indicative Approach

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Assessment of the Global Risks Impact as a Tool for Devising the Economic Strategy of Russia: Indicative Approach

In Russia it is usual during strategic planning process not to study enough and not to take into account the impact of global processes and risks on the Russian economy and the level of its economic security. The article provides a solution of this problem based on an integrated approach to studying the global risks impact. The authors have improved the technique of the World Economic Forum (WEF) for global risks quantitative assessment and have proposed the methodology of assessing the global risks impact on the Russian economy. On the basis of data from the “WEF report on global risks — 2014” the authors demonstrate the method’s application for obtaining estimates characterizing the degree of the global risks impact on the Russian economy and the level of its economic security. In conclusion, materials on the indicative assessment of the global risks impact on the Russian economy according to the 2015 data are presented.

About Small Pearls and Liquid Soup

#2. Liberal Indolence Inertia
About Small Pearls and Liquid Soup

The inequality problem is one of the key problems of the economic theory in XX-XXI centuries as according to most researchers’ estimates the impact potential of this phenomenon on the key economic indicators is very high. Inequality is caused by a lot of factors, ranging from biological ones. The article attempts to review the latest research of the inequality phenomenon in its various aspects and to assess its potential impact on the present-day Russia’s development.