Yerevan October 23
Emmanuel Mkrtchyan. The Gini ratio, a statistical indicator of the degree of social stratification based on consumption, puts Armenia at a moderate level of inequality, the WB report "Unequal opportunities in the South Caucasus" says.
According to the report, while the countries of Eastern Europe and Central Asia show some degree of heterogeneity in terms of inequality, with Gini ratio in the range from 0.25 to 0.45, for 15 years Georgia did not find any noticeable signs of deterioration. and in Armenia, the Gini coefficient based on consumption ranges from 0.30 to 0.35.
It is noted that, as of November 2017, income inequality in Armenia and Georgia is significantly lower, on average, among 30 low- and middle-income countries. For example, Gini coefficients calculated for final income and considering pension payments as deferred income in Armenia and Georgia are 0.36 and 0.38, respectively, which is significantly lower than the 0.41 coefficient for an average of 30 countries.
Moreover, as noted in the report, citizens' perception of property inequality is often more important than the actual state of affairs, since perception is more closely linked to effective political actions, such as voting, behavior, or government policy. As a result, despite rather unremarkable tendencies, the understanding that inequality is widening is rather widespread among the residents of Armenia and Georgia. Over 75% of respondents in Armenia and 60% in Georgia believe that inequality is widening. Armenia is distinguished by the fact that the proportion of the population that believes that the gap between the rich and the poor should be reduced exceeded 80% of the respondents and is one of the highest in the region, while Georgia is among the countries of the region with a relatively smaller share of the population adhering to this opinion.
According to experts, such an approach of the population is associated with certain difficulties associated with inequality of opportunities for people and a less transparent procedure for the allocation of resources, which increases the degree of discontent among people. In Armenia, this issue is most acute not so much due to the gap between the poor and the rich, as a large gap between the poor and middle classes and a huge gap between the poor and oligarchs, which since the early 1990s due to uncontrolled privatization and other illegal ways have accumulated incredibly huge wealth. Thus, according to experts, "collapsed social contract", and the majority of the population realized that they face difficulties related to unequal access to markets in the absence of competition and inadequate regulation. This is a process in which even a good education and significant efforts do not contribute to the growth of well-being.
Such feelings of inequality are likely to be relevant in Azerbaijan and Georgia, since these countries share similar institutional problems in Armenia caused by the imperfection of the transition period, experts at the World Bank emphasize.