engleski

Fiscal austerity, triple deficit and poverty relationship in the transitional countries

The paper examines the relationship between fiscal austerity, triple deficit and poverty in the transitional countries. Particular attention will be devoted to define new poverty line based on Kakwani (2010) approach as a possible candidate for the construction of a new official poverty line, since the fight against poverty is the primary goal for modern economies in 21st century. The model for poverty line uses consumer theory to construct both food and non food poverty thresholds, and to ensure that poverty line is consistent across regions. Benchmarking for the methodology was Croatia, Hungary, Czech Republic, Poland, Latvia, Azerbaijan, Bulgaria, Slovenia, Russia. The results support the view that these three problems ; fiscal austerity, triple deficit and poverty are dependent and today remain the main obstacle for growth and development in the world and in transitional countries. These results is contradictory according to some other researchers. The implications, limitations, and directions for furthure research are offered. The outcome of the research would affect the immediate decision making in the implementation of social policies in transitional countries.

Keywords: National Accounts; GDP; Poverty; Transitional Countries

nije evidentirano