Georgia : Poverty Update

This povert y update finds the
following: Between 1997 and 2000, poverty has increased
unambiguously, for a full set of poverty lines and
definitions of poverty measures. Poverty has increased
because over the period, consumption fell and inequality
rose. Living standards have not risen despite growth in
Gross Domestic Product because growth was too weak, too
concentrated in a narrow set of sectors, and there were no
effective mechanisms to redistribute its benefits. The
1998-99 crisis hit those who were benefiting from the period
of growth--the self-employed and private sector workers. But
the worse impact of the crisis was on the most vulnerable,
and particularly on children. the depth and severity of
poverty have increased, and the most socially vulnerable
have become poorer and more deprived. it is not clear what
the government did to prevent the worsening of poverty; on
the one hand, the government created adequate foundations
for a market economy, enabling private sector growth, and on
the other hand, the government did very litle to help the
poor directly and in some key respects the situation was
made worse by allowing the accumulation of arrears on
pensions, salaries for teachers, and other social
expenditures. The report further examines why government
performance in implementing anti-poverty measures was
inadequate; the signs that the situation is changing; key
challenges for poverty reduction; and identifies priorities
the government must address.