The reservation of the Minister of social policy Andrei Reva that Ukrainians allegedly eat a lot, stirred a social network and, of course, raised the question of whether Ukraine belongs to the countries whose populations are heavily powered. Unfortunately, uncovered the picture was very unattractive for Ukraine.
Relative to the planet EU
Epic statements Andriy Reva began with his comments on the State service of statistics that 50% of the costs of Ukrainians have for food. Eminent speaker did not consider that the level of spending on food does not show the real costs of the total budget of the household. Let’s try to explain.
If you compare data from Eurostat and the State service of statics, it really turns out that in Ukraine on food spent approximately 49.8% of income, while in the EU 12.3% of average household income.
If you look closely, you will see that the food was not the only difference between the structure of costs in the EU and Ukraine. The Europeans a greater percentage of their income spent on utilities, household consumption, transport, recreation and culture, restaurants and hotels, — says Vitaly Shapran for Newsone.ua. But the most interesting not it, but the annual cost for a household in the EU — is 32500 euros per year, i.e. roughly 2700 euros per month, in terms of the hryvnia is 81 thousand UAH per month (189 thousand). However, this figure is given with the caveat that it is counted in purchasing power parity terms, i.e. taking into account differences in price levels in, say, Romania and Germany.
But the Ukrainian statistics shows us that the average cost per household in 2016 was 5720,4 hryvnia per month (13 385 thousand). At the price level of the EU, we are lagging behind by about four times, so the statistics of the World Bank. However, I agree the Ukrainians who prefer to consume imports, the more that prices on food we have in the EU do not differ significantly. But if we stick to our estimate of the official statistics, which says that purchasing power is measured in EU, the average Ukrainian household spends 763 Euro per month (5730 * 4 / 30). Ie Ukrainians in a month on food I spend around 380 euros, and the citizens of the countries-EU members on average 332,1 euros. But all these calculations are wrong, made according to the principle “average temperature on hospital”.
Formally, the Minister Reva was right, averaged Ukrainians spend on food (except alcohol) number of Europeans, however, this is only formally. When calculating purchasing power are taken into account prices for services, which lead to the fact that the twisted statistics on the food. Anyone who has ever been to Poland, Hungary, Germany or the UK, knows that food costs about the same, something more, something cheaper, fluctuations in certain commodity items can be in the range of 50%, but overall food basket costs about the same as in Ukraine.
Thus, the closer to the Ukraine — the less deviation in the value of the basket. So really, the Europeans spend on food and more Ukrainians, but the Ukrainians part of the income and related expenses is carried out in the informal sector. When you consider that Ukraine is about 50% paid and spent in envelopes, the cost of Europeans on food (except alcohol) can be more our no more than twice. These conclusions are supported by data from Eurostat. The average German eats four pounds of meat more per month than Ukrainian, but Ukrainians eat more bread, as if we’re making up for calories at the expense of bakery products.
© flickr.com, Uwe BrodrechtКиевский market, Ukraine
However, a comparison of the consumer basket of the EU and Ukraine is not in favor of Ukraine: Europeans eat more efficiently. Although, of course, from Romania to Germany, the cost of food and the diet varies greatly. On the diet influenced not only income, but also tradition. For example, the population in the UK, France or Germany much of the food consumed in restaurants, as it is a separate item of expenditure on which Ukrainians spend only 2.2% of their costs, while Europeans was 8.2%. If, say, the average Briton spends a lot of time at work, and 70% of their active time eating in restaurants and cafes, then of course it will spend less on products at home. So the comparison here at all in favor of Ukraine.
Alcoholic question
Notice that the dispute mainly revolved around the food basket, which does not include alcohol. And alcohol is an essential part of the diet, which is also wasted money. On alcohol and tobacco in the EU is spent 4% of the cost of the consumer basket of households in Ukraine is 2.9%. But prices and volumes of consumption as a factor substitutes homemade (moonshine), are very different. Alcohol consumption in the EU — it is very expensive.
We will not go far and take the example of Poland, comparing prices on exactly the same alcohol. For example, in one of the cheapest supermarkets of Poland Biedronka-liter bottle of vodka Nemiroff is 44,99 zł, i.e. it is approximately 324 per liter (758 rubles). In the Ukrainian ATB the same vodka you can find in just 140 hryvnia per bottle (327 rubles).
And the question here is not the level of prices and in excise duties and VAT on imported alcohol in the EU. Ideas that are roaming in the Verkhovna Rada, is to make the price of alcohol in Ukraine and EU about the same, can lead to a social explosion in Ukraine. It is only to pull up prices to the level of Poland, they need to increase 2.5 times. While in Poland minimum salary starts from 500 USD, in Ukraine it is pure just over $ 100. Unconscious growth of excises on alcohol will lead to the fact that the population will increase the consumption of illegal spirits, which hit in terms of mortality and, of course, will not bring society any good.
Signs of poverty and guide the government
Correct, but informal analysis of data from Eurostat and the State statistics service shows that the accusations that “Ukrainians eat too much” to anything except irritation in the society can not lead. Ukraine compared to the EU — a very poor country. In poor countries a very large percentage of this spending goes on food. And this is not any trend of CIS or Asia, this is a trend that is visible in the EU. So, the biggest percentage of spending on food in the EU in Romania. Romanians spend on food, more than 30% of their consumption expenditure. The Lithuanians, Estonians, Latvians spend on food is around 20%, but Austrians, Germans, Danes — about 10%.
Impressive and the difference in nominal cumulative costs: the EU is 81 thousand UAH per month (189 rubles), we have — barely six thousand (14 thousand).
Therefore, in order not to irritate the electorate, members of the government can hardly reproach Ukrainians piece of bread or to talk about how little the Germans eat at home, forgetting that part of the diet of the German laid down in a separate article in the Eurostat — in restaurants. The main contribution of Prime Minister Vladimir Groisman in the economy — stabilization of the economy and Finance, but not its recovery. Officials better to recognize that Ukraine is one of the poorest countries in Europe, and the utmost efforts to send annoying exercises on the subject of who and how much to eat, and to fight poverty.
I think that the official recognition at the government level, the fact that Ukraine is one of the poorest countries in Europe, and would lead to a change of social standards in our country, and would have found its reflection in negotiations with Western partners. Meanwhile, we see how officials lose points and the commitment of the electorate, even in those regions where previously they were popular.
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Vitaliy Shapran, member of Ukrainian society of financial analysts.
