Poverty assessment in Russia: dependence on the measurement methodology

Abstract

Poverty reduction is one of the main objectives of the state policy in the Russian Federation. In the decree of the President of the Russian Federation No. 474 of 21.07.2020 «On the national goals of the Russian Federation for the period up to 2030,» a target is determined - reducing the poverty level by half by 2030. To measure poverty in the Russian Federation until 2021, the absolute concept was used. Within the framework of this concept, it is planned to create a minimum standard on the basis of which the level of poverty was determined. In the Russian Federation, a consumer basket is adopted as a standard, on the basis of which the cost of living is calculated. The cost of living is the threshold for poverty. Since 2021, the methodology for measuring poverty has changed, the calculation is based on the relative concept, the median method is used to measure poverty. A number of countries also use the multidimensional poverty concept with a set of indicators to measure poverty. The article provides a comparative analysis of methodological approaches for poverty assessment. The article proves that the level of poverty depends on the methodological approach underlying its measurement. The author believes that only a multidimensional approach to measuring poverty will contribute to the development of effective public policies to overcome poverty.