Photo/ Theodore Guerlain
Value within the cost of living is one of several key indicators that determines social-economic development degree of a rustic.
Research and research into the cost of living is a relevant issue inside developing and developed economies.
According to recent information by Geostat, living costs of your five-member loved ones are 331.4 GEL (about 125 USD), 66.20 GEL for every single relation.
The living costs of an able-bodied male totaled 164 GEL. Living costs are a conditional benchmark that reflects minimum value? for physical information on a family group or perhaps an individual.
Cost of just living based on Geostat for families is often as follows with the month of January: living cost for the able-bodied male – 166.3 GEL; an averaged consumer – 174.3 GEL, two-member family – 235 GEL; three-member family – 265 GEL; four-member family – 294 GEL, five-member family – 331.4 GEL, six-member family – 391 GEL.
Cost of just living based on Geostat differs as a consequence of months, because prices of merchandise and services vary caused by seasons.
Geostat won\’t determine cost of living as a consequence of age category, while similar information will be necessary for determining the least possible pension amount. Cost of living of aged people? might also want to include medication costs. This is important information for determining their pensions. Today the pension amount? is 180 GEL.
Geostat calculates living costs underneath the decree elapsed Georgian Health Minister in 2003.
Cost of life is calculated as a result of food basket. Consequently, other expenditures are not used in it (electricity, gas, water supply, transport costs).
In Georgia living costs is calculated on to the ground of minimum food basket. According to the way of calculation connected with an able-bodied male\’s cost of living by Geostat, the mentioned food basket carries a minimum variety of food, its elements and minimum amount of calories which have been required for normal life and capacity of your able-bodied male. The minimum food basket of the able-bodied male is made up of 40 products and totals 2300 kilo-calories. However, it ought to be noted that, depending on specialists, a normal consumption includes 2500 kilo-calories and food needs to be also diversified.
Because of alterations in cost of living calculation methodology, active discussions will be done? and everybody agrees that calculation from the mentioned index with this form can be a quite outdated and evil practice, however, it can be far perspective to solve the mentioned problem.
It ought to be also noted that unbiased purpose of minimum food basket and expense of living usually do not depend on financial potential of an country. Determining a true living cost doesn\’t mean urgent improvement in social packages. Living cost implies the benchmark based on which the Government should correct social policy hour and hour.
When writing about peculiarities of calculating living cost, it needs to be noted that? the United National Movement looked like there was prioritizing? adjustments to the earlier methodology for improving social equality and living? condition of population,? but it really may not be exaggerated to state that their social policy, usually, was of mock character and remained far away from essential recovery of social policy.
This consideration is proved by approaches in connection with living costs calculation. Namely, for countless years, from 1997 to 2003, living costs was growing and the highest figure was registered in 2003 (130.7 GEL). The next year? the figure shrank 1.6 times because of decrease in energetic importance of your meal basket products and after expensive products were substituted with comparatively cheaper products.
Reduction of food basket value ended in contraction in importance of living costs of able-bodied male. It is actually worth noting that before 2003 the daily norm of living costs was approximately 2500 kilo-calories, while after 2003 the figure marked 2300 kilo-calories.
Naturally, similar reduction in living cost would considerably lower poverty level, yet this effect was achieved by not improvement of just living conditions of our citizens, by through artificial reducing the poverty benchmark.
It should really be also noted that, as a result of importance of minimum food basket, ratio of food expenditures in cost of just living has long been represented in 70/30 proportion. 70% of? total number of the meal basket is recorded for? food that is necessary for physical existence, while other needs constitute 30%.
Contemporary experience implies that, generally, in conjunction with improvement of just living conditions on the planet, resolution of proportions in this manner is a quite outdated practice along with many The european countries this proportion frequently comprises 60/40 and 50/50. Naturally, it can be crucial to recalculate the mentioned proportions to essentially determine real costs for decent time of individuals, not for only physical existence.
The Georgian reality points too? the facts office should switch the exiting methodology by modern calculation standards, because resolution of real living cost will conceptually replace social policy and the benchmark for issuing pension or minimum social allowances will likely be more than today. Naturally, it is not easy to the suitable number simply how much cost of living should be, however, this is a technical issue besides other parties needs to be included in this procedure.
It must be stressed that using the mentioned gaps in calculation methodology, current indicators of living costs are a self-deceit and current situation in the united kingdom can be quite heavy. Consequently, we should consider the existing reality and precise amount for decent duration of our citizens should be calculated.
Moreover, additionally, it is unacceptable to protract an eradication of methodological errors. Only political will can be resolve this challenge. Consequently, it usually is declared that resolution of real living costs are not hawaii interest, as the existing social policy will probably be turned ugly. Much more so, nearly all political parties pledge in pre-election periods that they may revise the earlier methodology of calculation of living cost.