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ILO: 0.01% Of Hungary’s GDP Needed To Fully Eradicate Extreme Poverty

Ferenc Sullivan 2016.05.19.

0.01 per cent of the Hungarian GDP, or approximately HUF 3.4 billion (USD 12.1 million) would cover the complete eradication of extreme poverty in Hungary, according to the International Labour Organization, the UN’s labour agency.

The international organization’s latest study suggests that this sum of money should be regrouped to completely eradicate daily incomes below USD 3.1, or approximately HUF 870, on purchasing power parity (PPP) in Hungary.

001tiszavasvari_MG_4517ww(1)This Roma-only area in Tiszavasvári is an example of neighbourhoods hit by extreme deprivation in Hungary (photo: tion.hu)

Eliminating relative poverty, meaning incomes below 60 per cent of the median income, would be far more expensive at 0.9 per cent of the GDP, an interactive map compiled by the ILO on the percentage of governmental expenditures necessary to put an end to poverty, shows. According to the study, an annual amount of 600 billion dollars each year would be needed to eradicate poverty by 2030.

The ILO’s report shows that while the number of people living in poverty has decreased substantially over the past 26 years in lesser developed countries, 47 per cent of people living in low-income countries remain in extreme poverty. In developed nations, such as EU member states, the number of those living in Hungary has increased over the past years.

While there are many definitions of poverty in use, the Hungarian government’s social security strategy for the peroiod between 2011 and 2020 claims that every third person in the country – about 3 million people – live in poverty, approximately 1.2 million of whom suffer from extreme deprivation.

via index.hu
photo: Bea Kallos/index.hu