Quality of life
and life satisfaction has been a central topic in social science research, as
well as an increasingly popular area of interest for many policy makers. Balanced
development is especially important in developing societies where political and
economic changes can impact social inequality, as well as material wealth and health.
This post uses data from the Caucasus Barometer (CB) 2012, as well as the Life
in Transition (LIT) 2010 survey (carried out jointly by the European Bank for
Reconstruction and Development and the World Bank) to explore issues
detrimental to the general quality of life in the South Caucasus region. These
issues include the material situation of households (as reflected in the consumption
of goods and services), and its impact on health-related indicators and general
life satisfaction across the region.
According to the
2010 LIT survey, the average amount of monthly savings was 1628 dram ($4) in
Armenia, 7 manat ($9) in Azerbaijan and 10 lari ($6) in Georgia. However, the standard
deviation from the mean was high for all 3 countries, which means there were
substantial differences between the amounts of money saved by different individuals.
This is also reflected in relatively high values of the GINI coefficient for
income in these countries. The coefficient measures inequality in income
distribution within a population. Across the region the values of the GINI
index were 31.3 for Armenia (2010), 33.7 for Azerbaijan (2008) and 42.1 for
Georgia (2012), as reported by the World Bank.
Unequal income distribution
and material deprivation are also apparent in differences in food consumption
across all households included in the CB 2012. The survey asked about which of
the following products households limits due to financial reasons: bread and
pasta, butter and milk, poultry, beef, pork, fish, fruit and vegetables,
potatoes, sweets and chocolates. From this list, 80% of households in Armenia,
66% in Azerbaijan and 74% in Georgia cut down on the consumption of at least
one type of food products due to financial constraints.
In terms of the purchases
of goods and services such as electricity and gas, slightly more than half of
Armenians (55% and 58%, respectively) and Georgians (52% and 55%, respectively)
limit their consumption of these items due to financial reasons. Azerbaijanis seem
slightly less likely to do so with 49% cutting down on electricity or gas use,
yet the difference between the values reported for Azerbaijan and Georgia is
within the margin of 3% error.
Material
deprivation, both in the case of limited food consumption or utilities
(electricity, gas) is significantly higher in the rural areas. These
differences are highest in Armenia and lowest in Azerbaijan, where the
difference between material deprivation in the capital and other urban areas is
non-significant.
Living
conditions, including material difficulties, can have a substantial impact on overall
life satisfaction. An examination of the effect of food limitations on life
satisfaction, while controlling for type of settlement (urban, rural and
capital), gender, and age shows that across all three countries the necessity
to cut down on food consumption has a significant negative impact on the
general quality of life. Multivariate regression analysis shows that a cut in
each additional food item results in a significant drop in the average life
satisfaction level. No cutback on food is used as a reference category in the
model, while the other options included 1 to 9 indicating the food items. Gender
is not found to affect the level of life satisfaction in any of the countries. Settlement
type has an impact in Armenia and Azerbaijan where people living in the
capitals declare, on average, significantly higher levels of life satisfaction
than in the countryside.
Life
satisfaction is not the only variable strongly related to material conditions.
Depending on the economic situation of the household (e.g. those that need to
limit food consumption, or other expenditures), the subjective assessment of
individual health varies. People from poor households are significantly more
likely to consider themselves to be in very poor or poor health. Causality is
not established here though as poor health might be both the result as well as
the reason for material deprivation.
The relationship
between health and material deprivation is not a surprise and it has been
well-researched in the social science. However, it deserves strong emphasis,
taking into account the high number of households that needs to restrict their food
and utilities consumption in the South Caucasus.
Monitoring
changes in the material situation of households is thus of major importance.
Analysis of a LIT 2010 question “My household lives better nowadays than around
4 years ago” shows substantial regional differences in this respect. According
to the subjective individual assessment, the quality of life in Armenia and
Georgia seems to have deteriorated rather than improved compared to around 4
year ago, whereas in Azerbaijan the assessment of the change in the household
situation was more positive.
As the most
recent LIT data come from 2010, the situation and standards of living in
Armenian, Azerbaijani and Georgian households might currently be different. Yet,
as the CB 2012 shows, most households still face material problems that force
them to limit consumption of basic products such as food. Since there is a
significant positive relationship between the financial situation of a
household and individual health and wellbeing, all of these factors require special
attention and long-term monitoring in the region.
For more
information on the current social and economic situation in the South Caucasus
see our online database.
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