Challenges of Statistical Measuring of Population Poverty

Now that Russia is undergoing substantial social and economic transformations that affect all social aspects, the problem of acquiring objective statistics of people’s living standards, social stratification and poverty levels becomes crucial. There are a number of methods to determine poverty by means of monetary and nonmonetary approaches. The extent of poverty then will differ significantly depending on the determinations and methods used. The article analyzes the methods to measure poverty both globally and in Russia. The evaluation methodologies of household budget designed and approved by Russia’s Federal Statistics Service and capable of providing the extensive data on poverty in Russia are reviewed. The specifics of poverty level evaluations obtained both directly from the results of household budget studies and by means of analytical modeling are revealed. It is shown that Russian statistics analyses people’s income and consumer spending as the basis determination of various poverty level indicators, such as the number of people living below the subsistence level, absolute poverty, relative poverty indices and others. The international and Russian academic societies have a vast experience of the development and testing of modern practices and instrumental approaches to the determination and measurement of poverty. The article discusses the contemporary multidimensional methods of poverty measurement, material deprivation and social exclusion, and justifies the necessity to expand the income distribution and poverty scoring system. Monitoring the poverty level in Russia is an important analytical tool for public authorities and scientists.