Growth, Poverty and Inequality: Eastern Europe and the Former Soviet Union
by Asad Alam, World Bank, Mamta Murthi, Nora Dudwick, Ruslan Yemtsov, Ellen Hamilton, Edmundo Murrugarra, Erwin Tiongson
Category: Business & Economics

Eastern Europe and the Former Soviet Union have witnessed a significant decrease in poverty since the Russian financial crisis of 1998-99. Almost 40 million people moved out of poverty from 1998-2003. Three key factors contributed to poverty reduction: growth in wages, growth in employment, and more adequate social transfers. But poverty and vulnerability persist: more than 60 million people live on less than $2 a day. In their recommendations, the report's authors urge countries to continue with enterprise sector reforms, boost rural growth, promote opportunities in lagging regions, increase access to good quality basic services, and produce better social safety nets especially for the working poor and children.