Resource information
This poverty assessment for Romania
covers the period from 1995 to 2002, since the last World
Bank poverty analysis reviewed the evolution of poverty from
1989 to 1994, the early years of transition from a socialist
to a market economy. This assessment's objective is to
understand how poverty has evolved and how economic growth
and social protection programs, 10 percent of GDP, have
affected poverty, as Romania prepares for accession to the
European Union. The paper focuses on monetary dimensions of
well-being, or consumption, to inform the policy dialogue in
Romania on the extent and dynamics of poverty. The results
are based on two comparable, nationally representative
surveys: (i) the Romanian Household Budget Survey (ABF, upon
its Romanian acronym) for the period 2001- 2002; and (ii)
the Integrated Household Survey (AIG) for the period
1995-2000. Other dimensions of deprivations have been
captured for 2002 using the Living Conditions Survey
(ACOVI). While concentrating on monetary poverty, the paper
captures dimensions of material poverty such as caloric
intake; crowding and living conditions, and ownership of
essential durables. In addition, it assesses poverty defined
as capability to function in society, or adequate level of
investments in health or education, or the lack of
unemployment. Finally, the report reviews community poverty
and perceptions of poverty. First, the changing economic
structure is briefly described, as is the evolution of
macroeconomic management. Second, the assessment is fitted
into the context of the broader Bank program of analysis and
lending. The rest of the paper is arranged as follows: a
poverty profile (Chapter 2), an analysis of the impact of
growth on poverty (Chapter 3), of labor force participation,
unemployment and poverty (Chapter 4) and of social
protection and poverty (Chapter 5). Detailed background
papers are provided in Volume 2.
