Presidential Decree No. 637/2001 validating Poverty Reduction Strategy.

Poverty Reduction Strategy is a nationwide multi-sectoral policy document aimed at developing a comprehensive program for overcoming poverty by means of: (a) creating economic and legal conditions to increase income and growth of economic activity of able-bodied citizens; (b) increase the effectiveness of social support of the most vulnerable groups by reforming the social protection system; (c) poverty reduction policies must be combined with policies for the formation of the middle class. Poverty Reduction Strategy classifies poverty into the following categories: (a) poverty; (b) deep poverty; (c) poverty line; and (d) extreme form of poverty. The bulk (75 percent) of the poor are households with children under 18 years of age. Among the poor - families with children, where all adults are of working age, are 47.2 percent, families in which all adults work - 18.5 percent. The working population is also not guaranteed from the risk of getting transferred to the category of the poor. Unemployment, especially in small towns, extremely increases the risk of poverty. The growth of poverty is accompanied by a deepening of property stratification of the population and the emergence of rich strata, whose wealth is associated with shadow and criminal activities. This Strategy will be implemented in three stages: (a) the first (2001-2002) - implementation of a set of measures for stabilization of living standards, elimination of the most acute manifestations of poverty; (b) the second (2003-2004) - creation of objective preconditions for stable growth of real incomes of the population, ensuring the optimal level of employment; and (c) the third (2005 - 2009) - strengthening the orientation of economic processes to more effectively meet human needs, reduce the depth of poverty among the most vulnerable social groups, creating preconditions for the transition from this Strategy to the Strategy of poverty prevention. At this stage, shall be actively developed social protection programs and an effective system social insurance. It is expected that social reforms will provide an opportunity to fairly distribute economic results by: (a) ensuring dynamic growth of real incomes of the population; and (b) creating conditions for consolidating the middle class. A separate strategic direction of overcoming poverty is the introduction of insurance principles of social protection of employees, which will save them from the risk of falling into the category of the poor. The system of obligatory state social insurance should be aimed at strengthening social protection of workers and their families from possible poverty as a result of inability to earn income in case of job loss or disability due to illness, accident, injury, old age or the death of a breadwinner. To ensure the implementation of strategic directions of overcoming poverty shall be performed monitoring of efficiency and targeting measures for social support of certain groups of the population. Monitoring shall include: (a) determining the poverty line and monitoring its changes; (b) compiling a list and developing calculation methodology of the main characteristics - indicators of poverty with observation and analysis; (c) study of the effectiveness of measures aimed at overcoming poverty; (d) identification of groups not covered by social protection, who need state assistance, as well as the development of proposals regarding the application of existing social support mechanisms related thereto; and (e) modeling of socio-economic consequences of changes in mechanisms of social support of certain groups of the population.

Украина · 2001-08-15