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Inequality and Poverty in the Baltic States: Contrasting with Eastern and Western Europe

The new report of the European Commission shows how differently independent countries with a communist past have been able to use the support instruments received from the European Union, among other things breaking the idea that the Baltic “troika” countries are similar.

Europe at different speeds

The main problems of Latvia, as can be seen from the latest Eurostat data compiled in the study “European living conditions. Edition 2023”, are poverty and social inequality. The most vulnerable are Latvian residents over the age of 65, women and people with disabilities.

The Gini coefficient, which shows the degree of inequality of income distribution between different population groups, was 34.3% in Latvia in 2022. In an ideally just society, the Gini coefficient should be equal to zero, so the greater the socioeconomic gap, the higher this indicator.

Interestingly, in recent years, the fairest income distribution can be observed in some Eastern European countries with a post-socialist past: in Slovakia, the Gini coefficient is 21.2%, in Slovenia – 23.2%, in the Czech Republic – 24.8%. In Latvia, Lithuania and Bulgaria, where inequality indicators reach 34-38%, the situation is completely different. On the other hand, Estonia has managed to come close to the European average, as its index is 31.9%.

In Northern and Western European countries, which traditionally have high taxes for the rich and generous social guarantees for the poor, the Gini coefficient constantly fluctuates within 25-27% – this is typical of Finland, Sweden, Denmark, the Netherlands, Belgium, Austria.

A pension is not a guarantee

In 2022, one in five EU citizens was at risk of poverty and social exclusion. The highest proportion of the population at risk of poverty was registered in Romania (34.4%) and Bulgaria (32.2%). In Latvia, Lithuania and Estonia, on average, every fourth resident (24.8-25%) is on the threshold of poverty, but in Latvia and Lithuania, women are in a particularly disadvantaged situation: the gender difference in this indicator exceeds 6 percentage points, which is the largest difference in the EU. For comparison, in Denmark, the proportion of women and men at risk of poverty differs by only 0.8 percentage points.

The threat of acute poverty is also the least pronounced in Eastern European countries: in the Czech Republic, the proportion of the population on the threshold of poverty is 11.8%, in Slovenia – 13.3%, and in Poland – 15.9%.

Analyzing different age groups, European Commission researchers point out that poverty in the Baltic states affects older people more often. Thus, this region is significantly different from Southern European countries (Romania, Bulgaria, Spain, Italy), where the problem of poverty affects children and adolescents more (usually large families).

The fate of women

In Latvia, unlike many other European countries, working people often face financial difficulties. Especially women. Every tenth Latvian woman who has a job is at risk of poverty. For comparison: in Finland, only every fifty working women find themselves in a similar situation.

In addition, the Baltic States are traditionally also the region where the population’s health indicators are the worst according to self-assessment. According to Eurostat survey data, in 2021, only 54.6% of Latvian men and 46.1% of Latvian women claimed that their health was good. In Lithuania, 52.3% of men and 45.0% of women can boast of good health, and in Estonia – 60.5% and 56.3%, respectively. The EU average is 71.8% and 67.3% respectively. Latvia, by the way, again takes a leading position here in terms of gender inequality, which is not in favor of women. Every tenth resident of Latvia rates their health as bad.

Also in 2022, Latvia had the largest share of the population who declared a disability – 38.5% of the total number of adults. For comparison: in Malta, the proportion of such respondents is 15.1%, in Bulgaria – 14.6%. In almost all EU countries, women are more likely to admit that they have serious health problems. However, the biggest difference between the sexes is again observed in Latvia, as well as in Romania and Portugal (8.9-9.4 percentage points). Overall, in 2022, 27% of Europeans aged 16 and over reported having a disability.

2023-10-27 02:16:40
#life #Latvia #Europe

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