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"
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∘ Ramaz Abesadze ∘ The living standards of population and Georgia Annotation. In the article are reffered the terms related to the standards of living, the essence and meaning of economic development, is considerd an idea about some terms of living standards. Also are examined the existing level of living and is intentioned the way of it’s upgrading. The key words: "the standards of life", " the quality of life", "a middle class" " an average social group ". Introduction The living standards is a key indicator of human well-being and economic development. The higher the standards of living are so higher is the level of economic development and human well-being. Herewith the economic growth played a decisive role in raising the standards of living in the past, but nowadays the progressive qualitative changes in economy ( like usage of the new technologies, technics, human capital and institutions, new types of products and goods, etc.) are provoked the change of some terms related to the standards of living. For example, the terms: " the standards of living", " the quality of life", "a middle class" "an average social group". The problem of distribution of the wealth is one of the most important criteria for economic development. If the difference (that means, inequality) between the rich and the poor is growing, then can be said that we have no any economic development. Despite the high pace of globalization in Georgia, the quality of life here is growing up slowly and nowadays it’s on a rather low level. The essence of living standards and related terms of it In economic literature there are different kinds of terms for formulation the living standards or the level of life In our view, this notion does not require the complicated and different explanations. The standards of living is the criteria of the needs of concrete individuals as so as of the whole society. The higher the level of satisfaction of individuals are in the same time it means that the needs of the whole society are also higher, and vice versa. As a well known fact, our demands are indistinguishable and they change with increasing of the living standards ( producing of goods generates the new demands). The living standards of population, that is, how they live and how are satisfied with their demands, are depended on the number of factors, and the most important of them is the current economic development of country. Naturally, the higher is the level of the country's economic development, in the same time is higher the likelihood of satisfying by the human needs. In economic literature, the notions of 'the standards of life ' and ' the quality of life' are different. Although there are some logic to find a distinction between these two terms,but in our opinion, there is no significant difference between them. Both the standards of life and the quality of life , both encompass a qualitative and meaningful sides, because if the needs of human beings are not satisfactorily fulfilled, can’t be responded a higher standards of living and,contrary. For evaluating the level of people’s living will be better to use the term ‘ the living standards’. Depending on the standards of living should be differ the epochs, countries, people. The standards of living have a profound effect on the lifestyle. It is enough to visualize the different ages, nations, and people in the different levels of their life and we can see how people of the same nation, their lifestyle changes time by time. How the rich and the poor lifestyle is different in the same country. Of course, other factors ( like culture, traditions, socio-political discipline, profession, etc.) are also heavily influenced by lifestyle, but the most important factor is the living standards. The living standards are more directly related to demands, because the demands are satisfied by their satisfaction. The living standards, however, are determined by satisfied the demands. Therefore, the living standards of the whole society depend on the jointly demands, and the standards of living of a concrete individual depends on his/her individual demands. The demands, themselves, are based on income and savings. Although consumptions reduce the current usage and in the same time the level of livelihoods, but in turn, it increases awareness in the future and consequently growing up the standards of life. In order to assess the living standards, there is a whole system of indicators [Zherebin ..2002; Rumyantsev …2001; Meskhia ... 2004]. Their usage allows us to characterize certain aspects of the living standards. But in our opinion, the main indicators of the level of livelihood is income and the quality of goods and services for individual as well as for the whole society. They depend on their degree of physical and spiritual needs as well as on the quality of life and comfort of their work (which can be determined by the scales of usage of the latest types of products and goods). Consequently, the level of livelihood depends on both the level of economic development of country and the quality of its economy, including the fairness of income distribution. In the primitive society there was not a difference between the rich and the poor, so everything that had been gained was consumed equally, though should me marked that in different communities (tribes) and regions would still be a different situation (by natural resources, skills, the tools and etc).. The dividing between the rich and the poor had been eroded after disrupted facts of history of mankinds ( that are well known nowadays) and by some other factors . The certain layer of livelihoods made up a greater proportion of income for some people and than they became richer than others. For example, the slave – holders- the slaves, the nobles- the peasants , the capitalists – the workers. Poverty is defined as the difference not only by material possessions, but also with other values (like education, culture, the degrees of freedom, etc.). It can be said that historically, all slaves and peasants (with very few exeptions) could be considered as permanent the poor. In capitalism, however, the status quo has been radically changed, the workers and peasants are legally free and it is impossible to concuss them for working. And the capitalist is forced to devote more of income of workers (or peasants) than the slave-holders made. Into serfdom was emerged an average group of people that has become the largest part of society under capitalism. There are various views on the middle class in political economy . Some consider it to be one of the most divisive and even middle class constituents of society. For example, sociologists William Thompson and Joseph Hayek [Thompson 2005] classified the society by earnings, for according income as : the higher level group, the middle high group, the lowest middle group, the working class, and the lowest group. We think that a middle average group cannot be called a class, since the notion of class is related to a certain social status of its members (which is mainly of the socio-political significance. And there is a permanent conflict between classes which often turns into a class struggle). The level of earnings is largely linked to economic status ( but not only it is important, also the level of education, intellectual property, qualification, labor skills, etc.) and is a multi-faced part of society which membership varies nearby the average level of concrete country. The representatives of this group are not the poor or the rich. Its rather diverse and mobile. In that group could be involved the various members of society like are: workers, peasants, entrepreneurs, statesmen, scientists, writers, sportsmen and etc). The existence of middle class has a great importance for eco-nomic development. It significantly affects the macroeconomic and overall social and political stability of country. That is why in the developed world this group is the largest part of society. Nowadays in the developed world, an appression of the middle class is so great and the living standards are so higher that the division of society into classes is altogether pointless (as reflected by M. Weber, T. Parsonses, R. Darren-Dorf, B. Barber, K. Davis, W. Morris, P. Collins and etc). Therefore, society is divided only into "stratas” or ‘groups’ without antagonism between each other. From a historical point of view, in general, it can be said that time to time people’s living standards became better than in previous centuries. It means that has a tendency to increase wealth. Therefore, the today's poor may be much richer than the rich of earlier centuties, not just in terms of income growth, but, more importantly, by improving the comfort of their livelihoods, driven by qualitative changes in economy. For example, the representative of the middle class of today's developed country is much richer than any pharaons of Egypt or any emperor of Rome, because ( their living conditions were less comfortable - they could not enjoy by the modern transportation and communication skills, TV set, video and audio technologies, filmmaking, the internet and etc. But even within the same country, life is not equal. The groups differ significantly in terms of this indicator. The higher level of the Gini coefficient mainly exists in the least developing countries, but there are some shortcomings even there, which indicate that unfair distribution of income is not always necessarily depended at the level of economic development. It is defined by specific traditions and a fully can be defined by the state regulation of economics. The living standards in Georgia In recent years, the living standards in Georgia have been increased, but in a lower rate. The following figures indicate that:· the gross of domestic products increased by 11.4% in 2015-2018, by 17.5% per capita, with an average monthly nominal wage of 18.6%; the number of people who have been living below the poverty line decreased by 7%, the unemployment rate fell from 14.1% to 12.7%, the absolute poverty reduced from 21.6% to 20.1% . But during the last two years, the depreciation of GEL and other inflationary processes were reduced the living standards. It should be noted that despite the slow improvement in the quantitative indicators of living standards in Georgia, the comfort of living has significantly changed as a result of the use of qualitatively new foreign technology, technics, products and goods . 1. Making qualitative changes, at first, with introduction of foreign technologies and consumer goods, and then with the creation of innovative system that will be based on own research; 2. Creating institutional arrangement of the labor market, founding the civil services and it’s relevant infrastructure. 3. Granting foreign direct investments to local market with prioretizing the local workers employment. 4. Supporting of the state programs for development the import succenturiated and export 5oriented sectors. 5. Minimizing the level of corruption. 6. Supporting the small business development by widen infrastructural projects which will be granted by state ; [Abesadze ... 2009] 7. Organizing public workplaces for which the state can use the budget funds, foreign credits and grants. Conclusions
For raising the living standards in Georgea are necessary:
Literature
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