Analysis Materials 15 August 2005 12:20 (UTC +04:00)

While considering the living indices in the country every time we try to compare them similar indices of rich countries. However, the rich countries are also similar in term of living conditions and state of that.

The analysis held in many countries like Sweden, Germany and the United States. It was revealed that the life is better in continental Europe based on market relationships than UK and the United States with liberal economic systems.

Thus, the governments of Sweden, Germany and France cope with a problem of poverty better than the British and U.S. governments. In first three countries the special weight of population which have benefits lower than 60% of average income in the country, fluctuates between 12%-14%. In the UK and United States the figure makes up 21.8% and 23.8% respectively.

Difference in the level of property is big enough, which is explained by different levels of state incomes in the social sector. Special weight of all social expenses of the country in the GDP in Sweden, France and Germany is 27%-29%, whereas for the UK and the United States the figure is 14%-22%. Sweden tops the list, while the United States in the least.

Pension expenses comprise the major part of social all expenses. If to calculate the citizens’ pension incomes as a average income percentage, Sweden ranks as the first.

A Swedish citizen receives 64.8% of average per capita income. It is followed by France and Germany. The figure is 38.6 and 37.1% in the United States and UK respectively.

The countries of continental Europe remain leader in state expenses for health. In Sweden all citizens have been provided with hospitals, doctors and medial supplies. In France and Germany full medical provision has been ensured. However, provision with medical supplies is low than in Sweden.

The situation is more difficult in the UK. State expenses for health comprise the least part of entire expenses. If in Europe the expenses take up from 8 to 10% of the GDP, in the United States вЂ" 5.8% of the GDP.

The significant difference in social liabilities is observed in state unemployed incomes. In France and Germany the unemployed receives 68%-67% of average income in the country in term of absence of earning within 60 months. Many economists explain the high level of unemployment in these countries with this factor.

High benefits do not enhance people to search new jobs. In the UK and Sweden the figure is 33%-31%, while in the United States - 6%. However, low unemployed benefits obviously diminishes the unemployment and it is well in the examples of the UK and the United States.

Thus, the analysis of inter-relations between the state social liabilities and living conditions in rich countries shows the high social liabilities (socially oriented market economy) and high living conditions. Relatively low living conditions are observed in countries with liberal market economy amid low state expenses for social sphere.

So, it would be better for Azerbaijan, which frequently in the stage of transition period, to adhere a development model envisaging active state intervention into economy, in particular, the social sphere.

It is explained with weak development of market mechanism on distribution and re-distribution of national incomes and high poverty level in the country (though the figure has decreased stably over the past few years).

The liberation should continue in Azerbaijan. However, the liberalization should target de-regulation, rather replacement in the administrative sources of regulation based on principles of market economy.