development report 2012 - UMAR

Development Report 2012
Development by the priorities of SDS – A modern welfare state and higher employment
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Box 9: EU 2020 target in the area of poverty and social exclusion
In 2010 Slovenia failed to meet the EU common target of reducing the risk of poverty and social exclusion. Although
not including numerical goals, SDS policy on the reduction of poverty and social exclusion is in line with the fifth
target of the Europe 2020 Strategy, which sets out that at least 20 million fewer people should be at risk of poverty or
social exclusion by 2020. For Slovenia, this means a reduction in the number of people living at risk of poverty or social
exclusion from 361,000 in 2008 to 320,000 people in 2020. 1 This target is being monitored by a common indicator of
the population at risk of poverty or social exclusion. This common indicator is composed of three sub-indicators: i) the
at-risk-of-poverty rate; ii) the severe material deprivation rate (defined as deprivation in at least four out of a total nine
items of deprivation 2 ); and iii) the share of persons living in households with very low labour intensity (less than 20%
of total labour potential). Due to the economic crisis, the common indicator of the number of the population at risk of
poverty or social exclusion in Slovenia deteriorated in 2010, with this number having risen to 366,000 (339,000 in 2009).
In two sub-indicators, the number increased, while in one, it slightly decreased. The number of people living below
the at-risk-of-poverty line in Slovenia thus increased (to 254,000), the number of people affected by severe material
deprivation dropped slightly (119,000), while the number of people living in households with very low labour intensity
also increased (111,000 people). The total number of persons belonging to at least one of the aforementioned groups
(persons belonging to several groups are taken into account only once in the total number) 3 is 366,000 or 18.3% of the
population (17.1% in 2009). In the EU, the number of people living at-risk-of-poverty or social exclusion accounted for
23.5% of the population in 2010.
1
In Slovenia, this target was adopted under the National Reform Programme, November 2010.
2
See items of material deprivation in Material Deprivation indicator.
3
This is the sum of the following: a) the number of people in the population living below the at-risk-of-poverty threshold; b) the number of materially
deprived people not living below the at-risk-of-poverty threshold; and c) the number of persons in households with low labour intensity who, however,
are neither below the risk-of-poverty threshold nor materially deprived.
“users” 202 . Only 9% of occupied dwellings were for rent,
while approximately 6% had a non-profit rent.
Private consumption 203 was lower in 2010 in real terms
than the year before for the second time in a row, the
main reason being the adverse conditions in the labour
market and the associated uncertainties. According
to the National Accounts methodology, private
consumption dropped by 0.7% 204 . Compared to the year
the crisis began (2008), households cut back on those
expenditures which, in a weaker economic environment,
they find easier to give up, such as recreation and
culture (holiday packages being at the top with 15.3%),
transport (approx. 17% for cars), clothing and footwear,
alcoholic beverages and tobacco products, and hotels,
coffee shops, and restaurants. According to quarterly
data, private consumption decreased again in 2011 (by
0.3% in real terms, whereas the consumption of durable
goods slumped by a solid 3.0% in real terms). Owing to
general uncertainty, persistent adverse conditions in the
labour market, and the need for fiscal consolidation, a
further decrease in consumption may also be expected
in 2012.
Although low, inequality in Slovenian society increased
during the early stages of the crisis. According to the
calculation for 2010, based on 2009 household income,
the at-risk-of-poverty rate increased by 1.4 p.p. to 12.7%,
meaning that approximately 254,000 people lived below
the poverty line – or 31,000 more than the year before.
The at-risk-of-poverty rate rose in almost all groups of
the population, mostly again in the traditionally most
vulnerable groups. Moreover, in 2010, the income
inequality increased in Slovenia. The Gini coefficient was
23.8% (22.7% in 2009), while the value of the income
quintile share ratio rose from 3.2 to 3.4, meaning that
the one fifth of persons with the highest income had
a level of income 3.4 times higher than the one fifth of
people with the lowest income. This increase in income
inequality and relative poverty is the result of decreased
income of a considerable part of households in 2009 205
due to the economic crisis and a loss of income from
work (a considerable share of the population replaced
their income from work with social benefits). Moreover,
in people living below the at-risk-of-poverty threshold,
material deprivation increased by 1.4 p.p. (from 41.2%
to 42.6%), while in people living above the poverty
threshold, it dropped. Despite this deterioration, the atrisk-of-poverty
and material deprivation rates are still
below the EU average 206 .
202
According to the SORS methodology, user dwellings are
housing units in which none of the residents using the dwelling
is its owner, while the dwelling is also not for rent. The users of
such dwellings can be relatives, friends or other persons.
203
Deflated by private consumption deflator; disposable income
deflated by CPI.
204
Together with the value of own production, the funds used in
2009 by an average household amounted to EUR 20,870, which
was by 2.7% less in real terms than the year before.
205
In calculating indicators for 2010, income for 2009 is taken
into account.
206
See The Risk of Poverty and Material Deprivation indicators.