An adequately calculated poverty line is an important tool for planning social   welfare policies. The poverty line in Georgia is currently calculated using a       formula for the minimum consumer basket of goods and services required for   a   working-age male to meet his basic needs. The Economic Policy Experts   Centre (EPEC) argues that the current formula does not fully account for          seasonal needs and the real costs of food and non-food necessities. On March 29, EPEC organized a roundtable discussion on the issue with representatives of the National Statistics Office of Georgia (GeoStat), the Ministry of Health and Social Affairs, independent experts, and the media.
“Today the monthly subsistence minimum in Georgia is 147 GEL, out of which 110 GEL is assigned for the minimum food basket. Only 37 GEL is provided for non-food basket items, like communal bills, transportation, and medicine. This amount of money is very low and does not address the needs of Georgian citizens. The minimum subsistence in Georgia thus requires recalculation,” said Ramaz Gerliani, the Director of EPEC, at the roundtable.
Beginning in April, EPEC will conduct in-depth research to determine the parameters by which the food and non-food minimum baskets should be defined. This will included a study of food markets in eight Georgian cities: Gori, Kutaisi, Batumi, Telavi, Zugdidi, Marneuli, Akhaltsikhe, and Tbilisi. Additionally, EPEC will develop season-based consumer baskets to reflect the different needs of a person in winter and summer. The poverty line will also be recalibrated to account for inflation.
According to Robizon Tsiklauri, the President of the Nutritionist Association, the composition of the minimum food basket also does not meet the minimal requirements of a person’s day-to-day needs. It consists of 2,300 kilocalories which, according to the World Health organization, is 200 kilocalories less than the recommended amount for an adult male.
At the roundtable, a representative from GeoStat noted that an intergovernmental commission has been created under the Ministry of Health and Social Affairs to redefine the standards of the minimum consumer basket. EPEC’s research and involvement in the commission will assist the government in adequately defining the subsistence minimum in the country.