A problem of poverty in the country and the fulfillment of a right for deserved life remain to the acute problem in the sphere of social rights in Azerbaijan, though over the past few years and definite progress in elimination of poverty. As of 2006 the poverty ratio in Azerbaijan decreased from 29% in 2005 to 20%. In 2004 49% of Azerbaijani population was regarded as extremely poor.
Stable cut in this figure indicates to gradual cut in poverty. Despite the progress, almost fourth part of population lives in poverty with incomes lower than the living subsistence. Thus, according to inquiry through the representative selection in all economic regions of the country the State Statistics Committee publicized minimum cost of per capita consumer basket, which in the end comprised 54.1 manats, including the cost of foodstuff - 32.5 manats, non-food products - 12 manats, services - 9.6 manats. These figures on different socio-demographic groups made up 49.2 manats for children aged under 16 years, 58.4 manats for people with working ability, 45.3 manats for people above the age of working ability. With the consideration of obligatory payments (4.1 manats) the cost of the living minimum made up 58.2 manats ($67) in 2006, whereas it was 24 manats in 2001. Since the beginning of the year, the living minimum in he country rose to $78.81 in connection with the increase of prices of energy resources and public utilities on 8 January 2007.
Poverty exists in all countries around the world, including Azerbaijan. However, luckily Azerbaijan was not included in the list of 50 poorest countries of the world. In addition, Azerbaijan is amongst the developing countries. It means that the national economy at the present stage of its development remains as vulnerable before various external impacts.
The high indicators of the poverty in Azerbaijan are firstly linked with the Armenian-Azerbaijani conflict and existence of more than one million refugees and internally displaced persons in the Country, but poverty also includes other categories of the citizens, for instance, those who remain unemployed. As per February 2007, 53633 people have officially been registered as unemployed, with 51.2% women. It needs to note that according to the accounts of the Labor Ministry, the figure of really unemployed people in Azerbaijan is approximately more by 10 times than those who have received official status and equals 400-500.000. But as known, the growth of the unemployment adversely affects the level of the poverty, as well as those who receive allowances for unemployment are referred as poor people in Azerbaijan. Thus, the average amount of the allowances for unemployment in January 2007 totaled AZN 61.2 ($70.3), which makes up 38.1% out of the average monthly salaries of the employees.
Another factor affecting the level of poverty in Azerbaijan is the present situation of the pensioners. The indication of the pensions takes place for only size of the inflation, i.e. the real size of the pensions does not change. As per end of 2006, the State Social Protection Fund of Azerbaijan has registered 1226000 pensioners. As per 1 January 2007, the average size of the pensions amounted to AZN 42 ($48.3), which makes up 30% of the average salaries in the Country.
The list of the category of poor people in Azerbaijan is possible to be increased by taking into consideration the disabled people, children, alone mothers and so-called "employed poor people". As of 1 January 2007, 219.000 citizens in Azerbaijan have received addressed social aid in amount of AZN 2156600, with AZN 10 per capita. Due to the raise of the prices for the energy resources and communal services, from 1 February 2007 the amount of the aid was increased by AZN 5 per capita.
Receiving addressed social aid requires large number of documents and it imposes serious problems for the uneducated layer of the population. In addition, the families submitting false information are deprived of the aid for 2 years.
Thus, the low-income people are those deprived of protection. The ability of poor people to earn money for living is put down due to the absence of the support system.
Presently the Ministry of Economic Development of Azerbaijan tries to provide such support. For this purpose, the Ministry has presented to the consideration of the Cabinet of Ministers the State Program for Poverty Reduction and Sustainable Economic Development (2007-2015), which is expected to decrease the level of the poverty by to 10%. The Program envisages conducting nearly 400 Governmental measures covering the development of the of the fiscal and money-credit policy, social sector, investment, energy labor and employment markets, improvement of the living standards for the refugees and internally displaced persons, regional policy, development of infrastructure, etc.
The program is also of social character and it is not of small significance. Increase of economic rates does not provide a guarantee for rapid elimination of poverty, because incomes ensured at the expense of growth, not obviously reach the poor. In this respect the investments are required for social sector to eliminate poverty. In accordance with the statements by experts of international organizations, to increase the socio-economic protection of people the national strategies should ensure access to major services, including health, education and food.
Taking into consideration the resolution of these problems, the Ministry of the Economic Development forecasts that by 2025 community incomes will comprise over $8,000 a year, while on parity of purchase capability will comprise $20,000. However, at the present time, per capita income is $1,500 and the parity of purchase capacity is $4,000. 5-fold rise is very impressive. Does not it mean that no poor will be left in the country within 18 years?