Problems of Overcoming Poverty in the Republic of Kazakhstan

Abstract

Events of the later stage of development that have taken place on a global scale of the crisis of financial and economic nature were destined to affect the Republic of Kazakhstan as an integrated member of the international community. However, the negative consequences in the form of a substantial reduction of the state budget did not result in reduction of the state social obligations. Refinement of the methodology for determining the subsistence level, the implementation of its calculation based on zoning of the country on the living conditions of the population are the urgent issues for Kazakhstan. Recalculation of the “consumer basket” has to be based on the actual needs of the population, while the law has to guarantee the minimum wage to be brought to a higher social standard, and define the poverty line by the level of the subsistence minimum. The concept being applied for calculation of the poverty line is not enough objective, as it considers poverty as incomes below the subsistence minimum. Poverty rate in Kazakhstan is still at a very high level, which will continue to rise due to the economic crisis. There is a considerable proportion of ineffective employment. About one-third of self-employed people today are engaged in unproductive and illegal labor, not being covered by social security and being at the edge of poverty. Labor market shows unemployment and unfilled vacancies both at once. Poverty persists. Authors suggest to consider the concept of social modernization as dealing with the problem of poverty reduction, being a priority objective of national development in the context of the strategic plan for the development of Kazakhstan until 2050.

DOI: 10.5901/mjss.2015.v6n3s5p169