კონფერენცია

∘ Medea Kharaishvili ∘
THE INEQUALITY OF LIVING STANDARDS OF THE POPULATION AND ITS INFLUENCE ON A HUMAN CAPITAL FORMATION

Summary

The paper reviews the living standards of the population and assesses the factors that affect it: population revenues, expenditure, inequality in the country, and the variability of GDP. The level of life of the population is presented in four main directions: well-being, normal level, poverty, beggary.

The article analyzes poverty indicators: median consumption and Gini coefficient; The relative poverty index is considered, its dynamics is estimated. The variable analysis of the relative poverty index is given as on a whole country level, as well as by urban and rural population. The main causes of the differentiation of the indicators are presented in the work, explaining the variability factors of the Gini coefficients. Poverty levels and Gini coefficients in Georgia are comparable to those in the Central, South-Eastern Europe and CIS countries.

Poverty reduction in Georgia is considered to be one of the major challenges in Georgia, and it is suggested to reduce it.

The analysis concludes that the Gini coefficient in Georgia is high and the data can be improved by achieving economic growth. However, economic growth is not the only way to solve the problem. In this regard, the article evaluates the socio-economic development strategy and has three critical problems of economic growth: low competitiveness of private sector, poorly developed human capital and limited access to financial resources.

Priority directions are defined for the development of human capital: development of workforce focused on labor market demand; Improvement of social security system; Providing access to quality health care.

The main purpose of economics is to understand and help to alleviate poverty, there is a relation between investments in human capital and the alleviation of poverty. Human capital refers to the skills, education, health, and training of individuals. That's why it discusses the level of living of human capital, based on which the conclusions are made and the main recommendations are given how to improve the living standards of the population.

The findings on the impact of the level of living inequality and its impact on human capital are made in the paper. The recommendations for improvement of the level of living standards of the population are proposed.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Medea Kharaishvili ∘ THE INEQUALITY OF LIVING STANDARDS OF THE POPULATION AND ITS INFLUENCE ON A HUMAN CAPITAL FORMATION Summary The paper reviews the living standards of the population and assesses the factors that affect it: population revenues, expenditure, inequality in the country, and the variability of GDP. The level of life of the population is presented in four main directions: well-being, normal level, poverty, beggary. The article analyzes poverty indicators: median consumption and Gini coefficient; The relative poverty index is considered, its dynamics is estimated. The variable analysis of the relative poverty index is given as on a whole country level, as well as by urban and rural population. The main causes of the differentiation of the indicators are presented in the work, explaining the variability factors of the Gini coefficients. Poverty levels and Gini coefficients in Georgia are comparable to those in the Central, South-Eastern Europe and CIS countries. Poverty reduction in Georgia is considered to be one of the major challenges in Georgia, and it is suggested to reduce it. The analysis concludes that the Gini coefficient in Georgia is high and the data can be improved by achieving economic growth. However, economic growth is not the only way to solve the problem. In this regard, the article evaluates the socio-economic development strategy and has three critical problems of economic growth: low competitiveness of private sector, poorly developed human capital and limited access to financial resources. Priority directions are defined for the development of human capital: development of workforce focused on labor market demand; Improvement of social security system; Providing access to quality health care. The main purpose of economics is to understand and help to alleviate poverty, there is a relation between investments in human capital and the alleviation of poverty. Human capital refers to the skills, education, health, and training of individuals. That's why it discusses the level of living of human capital, based on which the conclusions are made and the main recommendations are given how to improve the living standards of the population. The findings on the impact of the level of living inequality and its impact on human capital are made in the paper. The recommendations for improvement of the level of living standards of the population are proposed.