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STATE CARE ABOUT COMMON BELARUSIANS

This July the authorities published living wage budget rate which is used from the second half of this year as a norm determining the amounts of most social transfers. Its rate was calculated from June prices for goods and services making the so-called living wage basket and made up 146,150 BYR in average. In other words, present-day level of a Belarusian’s biological survival is equivalent to $68. In December of 2005, its rate was 135,200 BYR, or $62.2. This means that the living wage basket got more expensive by more than 9%. (See Table 1). This figure outruns twofold the six-month index of prices announced by the government (4%). Also, the highest growth of living wage budget was registered in June (by 3.7%) while the officially announced price index grew up by 0.2% only.

Table 1. Dynamics of real retirement pension in 2005

Indicator

January

February

March

April

May

June

June to December, %

Nominal pension, in USD

83.7

84.1

84.6

92.1

92.3

92.0

110.2

Living Wage Budget, USD

62.8

63.5

64.8

65.2

65.6

68.0

109.3

Real pension (as against Living Wage Budget)

1.333

1.324

1.306

1.413

1.407

1.353

100.8

Growth of real pension as compared to the previous month, %

–0.7

–0.7

–1.4

+8.2

–0.4

–3.8

How can it be? This happens when prices for necessities and services (on the living wage basket) jump quicker than for any other goods and services, because the Ministry of Statistics calculates the official index of prices for the entire range of goods and services consumed by population in the proper month. To say it differently, if the prices for bread and vegetables increase and for gold and clothes in boutiques – fall, the official index of prices may not change and the authorities may announce another elegant victory in the struggle against inflation. However, the poorest (those citizens whose per capita incomes don’t exceed the living wage budget and they are almost a quarter of the entire population) will become even more poor.

Hardly better live those citizens whose per capita incomes are above living wage budget but below the minimum consumer budget. This is already the level of social survival (It differs from the living wage budget in that besides mere survival the person can perform minimum social functions – work, have kids, bring them up, etc.) Nowadays, over 43% of population lives on this consumer level. In June, the rate of minimum consumer budget per average Belarusian made up 228,450 BYR, or around $106. It increased by 6.9% for the past six months and by 2% – in June. (See Table 2).

Table 2. Dynamics of real monthly wages in 2005

Indicator

January

February

March

April

May

June

June to December, %

Nominal wages, in USD

183.7

184.9

198.9

205.3

209.7

221.6

110.7

Minimum Consumer Budget, in USD

100.4

101.4

102.8

103.5

104.2

106.3

106.9

Real wages ( as against Minimum Consumer Budget)

1.830

1.823

1.935

1.984

2.012

2.085

103.6

Growth of real wages as compared to the previous month, %

–9.1

–0.4

+6.1

+2.5

+1.4

+3.6

The above data draws to the conclusion that living cost of the poorest population groups, and they make two thirds of Belarusians, grows up twice as quickly as of all other Belarusians. Isn’t this the key objective of the state-run social policy on “special care” about common citizens?