Academic journal article Asian Social Science

To the Problem of Rise in the Standard of Living of Population

Academic journal article Asian Social Science

To the Problem of Rise in the Standard of Living of Population

Article excerpt

Abstract

The problem of the rise in the standard of living of population has pressing character as it is proved in the article. The author also analyses dynamics of standard of living in a certain period in Kazakhstan, Russia as one of the most developed countries of CIS and Canada as one of the most developed countries of the world. Complex approach has been proposed to improve methods of standard of living of population assessment. Calculations to define optimal standard of living of population on an example of Kostanay region of Kazakhstan were made basing on this approach. This research allowed making conclusion on the necessity of more effective utilization of economic capacity of the region to increase the standard of living of population. Proposed approach has universal character and it may be used to analysis and planning of the standard of living of population in regional and country level.

Keywords: standard of living, living wage, optimal consumer basket, human potential development index, technique of definition the optimal, level of living

1. Introduction

Rise in the standard of living and quality of life of population is one of the most pressing problems nowadays. Economic stability of society depends greatly on solving this problem. Standard of living is the assessment of economical dimension of the quality of life of population and is criterion of choice of directions and priorities of economic and social policy of state. When a state is unable to provide sufficient standard of living and quality of life it cause among other things negative migration balance as "brain drain".

Kazakhstan is not an exception because efforts to improve standard of living of population is one of strategic aims of the country. It is stated in the document "Strategy Kazakhstan-2050: The New Political Course of Matured State". It declared the necessity of establishing of minimal social standards and guarantees directly depending on the growth of the economy and budget (http://www.akorda.kz/ru/page/page_poslanie-prezidenta-respubliki-kazakhstan-lidera-natsii-nursultana-nazarba eva-narodu-kazakhstana).

Scientists differ in their ideas of interpretation of the category "standard of living". To our mind, V. N. Bobkov defined the essence of the concept "standard of living" is defined in the most correct way. He wrote "standard of living in general is monetary assessment of resources necessary to provide quality of life of a person, social groups and society as a whole" (Bobkov, 2009). N. M. Rimashevski gave also exact definition of "standard of living is the complex of conditions of man's functioning in consumption sphere that manifests itself in the scope of development of people's requirements and the character of their satisfaction. Various requirements and necessities arousing and realized in consumption sphere are the backbone foundation" (Rimashevskaya, 1988).

Standard of living assessment is relatively complicated process that on one hand depends on the structure and the scope of requirements of society and on the other hand that is limited by possibilities to satisfy them. In economical literature standard of living is characterized by a number of characteristics: gross national income; real earnings of population; average and minimal salary of workers in different industries; ratio of real earnings per capita, minimal and average salary of workers in different industries; ratio of minimal salary and minimal pension; consumption of food and goods, durable articles by population and housing; costs of facilities; difference in earnings; life interval; education level; structure of consumption of foods and other (Raitsin, 2006; Vishnevskaya, 2014; Andreeva, 2013; Menshikova & Kopteva, 2012).

2. Methodic

2.1 Standard of Living Level Assessment

Cost of living is globally accepted important characteristic among economic factors that characterizes standard of living of population. …

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