Poverty in Ukraine: the indicator increased 10 times. Is there a way out?

According to the World Bank, the number of people in Ukraine living below the poverty line has increased tenfold since the start of the full-scale war. By the end of 2022, this indicator may increase from the pre-war 2% to 25%.

Under the current dynamics, by the end of 2023, the number of Ukrainians living below the poverty line may increase to 55%.

The impoverishment of the population is one of the main challenges for the Ukrainian economy in the coming year. The state does not have the funds to support all people who have fallen into the poverty zone, lost their housing or property.

As the expert of the Institute of Economic Leadership Yaroslav Romanchuk notes, “… the government cannot give fish to every affected Ukrainian, but it can and is obliged not to prevent people from taking rods in hands. This is the only effective way to fight poverty.”

Ukraine needs an adequate economic policy, primarily in the monetary, budget and tax spheres. It is about reducing the fiscal and tax pressure on business and citizens, reducing the state’s share in the economy, carrying out the necessary reforms regarding labor legislation and the pension system, as well as ensuring the rule of law.

The main thing is that the state, which today objectively cannot protect everyone from poverty, should not prevent Ukrainians from doing it themselves.