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ოთხშაბათი | 02 ნოემბერი, 2011

A Further Look at Material Deprivation

Continuing to explore standards of living in the South Caucasus, this blog looks at the between four sources of household income and material deprivation using data from the 2010 Caucasus Barometer. Each of the four sources of income (salaries, pensions or government transfers, sales from agricultural goods, and remittances) are categorized by their importance to the household and then cross tabulated with material deprivation. The findings suggest that families reliant on salaries and remittances are better off, while families receiving pensions and government transfers, or those who sell agricultural products as their primary source of income have higher than average rates of material deprivation. 

Salaries and pensions/government transfers are by far the most important sources of income, mentioned by around 50% of people in all three countries. Agriculture is mentioned as an income source by over 25% of respondents in Azerbaijan and Georgia, but is reported by only 17% of Armenians, where remittances are the third most common source of income. Twenty percent of Armenians and 17% of Georgians report income from remittances, but family transfers are relatively rare in Azerbaijan, with fewer than 7% reporting receiving remittances.

Chart 1 


In the South Caucasus as a whole, people who list salaries as their household’s primary source of income have half the average material deprivation rate of 32%. By taking the ratio of the average rate of material deprivation (blue bar) and the material deprivation rate for salaries as the primary source of income (red bar), Chart 2 shows that households primarily relying on salaries for income have less than half (44%) the average material deprivation rate in Armenia. This figure is 52% of the average material deprivation rate in Georgia, and 63% of the average material deprivation rate in Azerbaijan. Furthermore, households in the South Caucasus that did not report salaries as an income source are 1.4 times as likely to be materially deprived.

Chart 2


Pensions and government transfers are the second most important source of income in the South Caucasus. Chart 3 shows that households where government transfers are the primary source of income have more than 1.5 times the average rate of material deprivation, while those where pensions and government transfers are the second source of income have three-fourths the average rate of material deprivation. This suggests that government transfers throughout the South Caucasus are not large enough to live without poverty, but can effectively supplement a main income. The trend is most extreme in Armenia where households relying on the government for their primary source of income are over two times as likely to be materially deprived, while households where government funds are a secondary source of income have three-fifths the average rate of material deprivation. In Azerbaijan, government transfers have a much weaker correlation with material deprivation. In fact, data from graphs 2 and 3 shows that households receiving government transfers as their primary source of income are twice as likely to be materially deprived as households dependent on salaries in Azerbaijan, three times as likely in Georgia, and five times as likely in Armenia.

Chart 3

As chart 4 shows, income from sales of agricultural products is correlated with higher material deprivation rates across the South Caucasus, supporting previous findings showing that material deprivation is concentrated in rural areas. Armenia has the lowest percentage of households reporting income from the sale of agricultural goods, and also the smallest changes in material deprivation based on income from agriculture. Georgian households dependent on agriculture for either their primary or secondary source of funding are around 1.4 times more likely to be materially deprived than the country average, while Azerbaijani households are almost 1.8 times as likely. In Armenia and Georgia, relying on pensions and government transfers is the strongest indicator of material deprivation, while in Azerbaijan it is dependence on sales from agricultural products.

Chart 4

Only 13% of respondents in the South Caucasus report receiving money from remittances, but chart 5 shows that households most reliant on remittances are less likely to be materially deprived. The trend is especially strong in Georgia, where households dependent on remittances as the primary source of income have 58% of the country’s average material deprivation rate.

Chart 5

Although overall trends are consistent across all three South Caucasus countries, the importance of each income source on standard of living varies rather widely. Material deprivation in Azerbaijan seems to reflect a large divide between urban and rural areas, with family transfers, salaries, and government transfers much less strongly correlated to changes in material deprivation than in Georgia or Armenia. In Georgia more people mention government transfers than salaries as an income source, and for those reliant on state transfers, the material deprivation rate is over 70%. Although Armenia has by far the lowest material deprivation rate, at under 19%, it has a huge disparity between households with salaries as their primary source of income and households dependent on government transfers.

15.06.2015 | ორშაბათი

Trust in institutions in the South Caucasus – generating a combined score

Trust in institutions is a widely studied subject in the social sciences – typing 'trust in institutions' into Google Scholar yields roughly 2.5 million results. It is generally believed to have multi-directional relationships with different aspects of social life, with high levels of trust associated with positive phenomena – acceptance of innovation and a good business environment just to name two.
13.06.2016 | ორშაბათი

სოციალური და პოლიტიკური ინსტიტუტების მიმართ ნდობის ცვლილება საქართველოში

მოსახლეობის ნდობის დონეს მთავრობისა და სხვა ინსტიტუტების მიმართ ბევრი ფაქტორი განაპირობებს. ამ ფაქტორების გავლენით დროთა განმავლობაში ნდობა შეიძლება, შეიცვალოს. CRRC-საქართველოს მიერ 2011-2015 წლებში ჩატარებული კავკასიის ბარომეტრის და NDI-ის საზოგადოებრივი აზრის გამოკითხვების შედეგებზე დაყრდნობით ამ ბლოგში აღწერილია ბოლო წლებში ნდობის დონის ცვლილება პრეზიდენტის, ადგილობრივი მთავრობის, აღმასრულებელი ხელისუფლების, პარლამენტის, ჯარის, ჯანდაცვის სისტემის, პოლიციის, განათლების სისტემისა და სასამრთლოს მიმართ.
15.08.2016 | ორშაბათი

შიდა მიგრაცია საქართველოში: რა ვიცით მის შესახებ CRRC-ის კავკასიის ბარომეტრის მონაცემების საფუძვლეზე?

არსებული შეფასებების თანახმად, მსოფლიო მასშტაბით შიდა მიგრანტთა რაოდენობა ბევრად აღემატება საერთაშორისო მიგრანტთა რაოდენობას. სამწუხაროდ, საქართველოში ძალიან ცოტა მონაცემი არსებობს შიდა მიგრანტების რაოდენობისა და მათი გეოგრაფიული განაწილების შესახებ. საქართველოს სტატისტიკის ეროვნული სამსახურის შინამეურნეობების ინტეგრირებული გამოკვლევები რეგულარულად აგროვებს ინფორმაციას ქვეყანაში შიდა მიგრაციის შესახებ. სახელმწიფო სერვისების განვითარების სააგენტო კოორდინაციას უწევს მოსახლეობის რეგისტრაციას საცხოვრებელი ადგილის მიხედვით.
25.08.2014 | ორშაბათი

Emigration, Language, and Remittances in Georgia

As discussed in a recent blog post, household incomes in Georgia have risen steadily since 2008. The percentage of Georgians who have family or close relatives living abroad has also significantly increased from 37% in 2009 to 53% in 2013. 14% of Georgian households currently receive money from family members, relatives, or friends living in another country as an income source. This blog examines changes in interest in emigrating from Georgia over the last five years, while controlling for certain variables.
29.09.2014 | ორშაბათი

Georgians Have High Hopes but Little Information about the Association Agreement with the EU

Optimism abounds with regards to the recently signed Georgia-European Union Association Agreement (AA). Most Georgians, however, lack information about the EU and its relation to the country, including the details of the agreement which directly concern the future of Georgia’s economy. The AA covers many areas including national security, migration, human rights and the rule of law but is primarily a free trade agreement with potentially major implications for employment.
07.10.2014 | სამშაბათი

The Wave of the Future: Optimism, Pessimism and Fatalism in Georgia

A recent CRRC regional blog post analyzed the presence of fatalism in Georgia. The post cited CRRC Caucasus Barometer (CB) data which shows that in 2013, 28% of Georgians agreed that “everything in life is determined by fate.” While the CB findings demonstrate that a sizeable portion of the adult population is fatalistic about the future, Georgians are increasingly likely to see that future in a positive light, whether it be determined by fate or not.
20.10.2014 | ორშაბათი

Do Armenians Still View Integration with the EU as Part of a Positive-Sum Game?

On September 3rd 2013 Armenian President Serzh Sargsyan surprised many observers, including some in his own government, when he announced that Armenia would sign an agreement with Russia to join the Eurasian Customs Union (ECU) and spurn a long-negotiated Association Agreement (AA) with the European Union. The move has been dubbed a “U-Turn” as well as a “sudden shift in policy,” although it was predated by landmark Armenian-Russian agreements in 1997 and 2006.
22.12.2014 | ორშაბათი

Does public opinion accurately gauge government performance in the South Caucasus?

Robert Putnam’s 1993 work Making Democracy Work: Civic Traditions in Modern Italy marked a seminal moment in the development of institutionalism. Putnam’s exhaustive study of the relationship between the governed and governing in the Italian regions contained the discovery that public opinion provides an accurate picture of actual government performance: “The Italians’ gradually increasing satisfaction with the regional governments … corresponded to real differences in performance,” and in each region Putnam’s measurement of performance was “remarkably consistent with the appraisals offered by the regional attentive public and by the electorate as a whole.”
09.11.2015 | ორშაბათი

Household income and consumption patterns in Georgia

After the collapse of the Georgian economy in the 1990s, the country slowly started to recover, and between 2000 and 2014, the gross national income grew from $3.4 billion to $16.7 billion (in current USD). According to the National Statistics Office of Georgia, the official unemployment rate in Georgia was 12.4% in 2014, but according to numerous surveys the rate is much higher.
14.03.2012 | ოთხშაბათი

Georgia and the EU’s Economic Woes

Why hasn’t the economic crisis in Europe deterred Georgia’s desire to join the European Union? The majority of Georgians (and the Georgian government) want to join the EU despite crisis in the Eurozone. Yet, the continued crisis, including the Eurogroup’s recent (and second) rescue of Greece’s economy and Hungary’s harsh austerity measures, illustrates that the crisis is not isolated to the Eurozone.
29.03.2012 | ხუთშაბათი

Blood Donation in Georgia: Obstacles and Opportunities

According to a report by the World Health Organization, blood donations in Georgia fall below the estimated need for patients. Approximately 60,000 donations are necessary per year to cover Georgian patients’ needs, while the number of actual blood donation does not exceed 37,000. Moreover, 95% of blood donations come from paid donors.
13.07.2012 | პარასკევი

PERCEIVED POVERTY IN GEORGIA: RESULTS OF THE 2011 CAUCASUS BAROMETER

The 2011 Caucasus Barometer asked the Georgian population, “Relative to most of the households around you, would you describe the current economic condition of your household as very good, good, fair, poor or very poor? 
14.10.2011 | პარასკევი

Fancy Living Abroad? 39% of Young Armenians Say "Preferably Forever"

Last year, Ani Navasardyan asked, “Why do so many Armenians leave Armenia?” Migration is also an issue in Georgia and Azerbaijan. Data from the CB 2010 reveals that around half of the respondents in Georgia (47%) and Azerbaijan (52%) are interested in temporary migration. Still, Armenia stands out since 64% of the adult population is open to the idea of temporarily leaving the country.
07.12.2011 | ოთხშაბათი

Can a Cut NATO Supply Route Through Russia Benefit Georgia and Azerbaijan?

The 20th anniversary of the dissolution of the Soviet Union is upon us, and US-Russian tensions have risen as Russia contemplates terminating the NATO supply route through Russia. International news reports such as The New York Times detail the threat as a “death blow” to the U.S.-led NATO mission in Afghanistan and indicate that this could be a blessing in disguise for NATO hopeful Georgia, as well as for Azerbaijan.
30.03.2010 | სამშაბათი

2010 Big Mac Index | Increased differences between Baku and Tbilisi

In 2007 we wrote a blog post on the Big Mac Index, an index published by The Economist as an informal way of measuring purchasing power parity (PPP). The idea is that a dollar should buy you the same amount in all countries, and as a Big Mac is assumed to be produced in the same way everywhere it can serve as a point of comparison. You can thus determine how far off the exchange rate is between countries, in terms of citizens’ ability to buy the same “basket” of goods and services (in this case a Big Mac hamburger).
 
22.07.2010 | ხუთშაბათი

Attitudes toward the West | Caucasus Analytical Digest

Following an article on Georgians’ attitudes toward Russia, CRRC Fellows Therese Svensson and Julia Hon have written a new piece for CAD, entitled “Attitudes toward the West in the South Caucasus”. Their article looks at citizens’ views on three areas of relations — political, economic and cultural — between the South Caucasus and the West, in particular NATO, the US and the EU. The data were derived from the South Caucasus–wide 2007 and 2008 Data Initiatives (DI), as well as from the 2009 EU survey that was conducted in Georgia.
27.02.2008 | ოთხშაბათი

Inflation in Armenia? | Lecture by IMF Representative

Readers here may not be aware that actually our Armenian CRRC also runs its own blog, to announce and describe CRRC's events. One of the most recent events was a lecture by the IMF Resident Representative in Armenia, Dr. Nienke Oomes.
31.03.2008 | ორშაბათი

Brookings Index of Regime Weakness | State Rebuilding or State Collapse in the Caucasus | The Annals of Data

Yet another index was released recently -- Brookings Index of State Weakness in the Developing World. One professor of mine in graduate school, who was a veteran hot spot worker, related that all of the conflict professionals keep their eye on this map to see where they are going next. In this year's version of the index, however, it's where they already are: Somalia, Afghanistan, the Democratic Republic of Congo and Iraq top the list.
21.05.2008 | ოთხშაბათი

Parliamentary Elections in Georgia | ODIHR Observation

With today's elections in Georgia, various themes come to mind. Certainly, elections have come a long way: by now, the Georgian government employs a series of highly qualified consultants, including Greenberg Quinlan Rosner of Clinton-fame, plus a Brussels-based PR firm, as well as working with experienced teams from the Baltics. This, then, is no longer the game of the 1990s, or 2003. Election observers know that they in turn will be observed, and maybe that's how it should be.
27.05.2008 | სამშაბათი

What do Georgian Troops Think about the Iraq War?

Recently, the Georgian Times published an article on a poll recently conducted by GORBI of Georgian Troops in Iraq. According to the article, this is the first poll conducted amongst these soldiers.
09.07.2008 | ოთხშაბათი

Caucasus Data | Language: Russian versus English?

Recently, we happened upon an article that talks about the use of Russian across the Caucasus. Is Russian becoming obsolete? According to the article, some Georgian politicians suggest this is the case. At the same time, the article points out that the uptake of English is too slow to replace Russian as a lingua franca.
22.07.2008 | სამშაბათი

Caucasus Data: Tolerance towards Others

The CRRC Data Initiative (DI) gives people an opportunity to do interesting cross-country comparisons of the South Caucasus (SC) people’s attitude toward their neighbors. This subject is quite sensitive and complex when thinking of the fact that the SC stands out for its sequence of ethnic conflicts.
04.08.2008 | ორშაბათი

Georgia: Women's Participation in Politics

Women’s participation at all levels of elections in Georgia is diminishing. As the Caucasus Women’s Network (CWN)reports, women inGeorgia were less represented in terms of candidates in the last parliamentary elections than in any previous parliamentary elections inGeorgia’s democratic history. On the other hand, women’s low political participation in elected bodies belies women’s activeness in civil society institutions, where females appear to be very active.
12.09.2008 | პარასკევი

Doing business in Azerbaijan: easy in theory

Results of the World Bank’s Doing Business 2009 project, claims to present "objective measures of business regulations and their enforcement across 181 economies and selected cities at the sub-national and regional level", were made public today.