1. WYE City Group Meeting on Rural Development and Agricultural Household Income Rome, 11-12 June 2009 Anna Szukielojc-Bienkunska, CSO Poland a.bienkunska@stat.gov.pl Monika Borawska, SO Olsztyn, Poland m.borawska@stat.gov.pl Poverty and social exclusion in the Polish rural areas. Attempted diagnosis and measurement – related dilemmas.

2. Delimitations of rural areas in Poland Polish methodology – based on TERYT (National Official Register of Territorial Division of the Country) P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S TERYT considers rural areas as the territories outside the city administrative boundaries = rural gminas (communes) + rural areas of the urban/rural gminas. The number of people living in rural areas has increased slightly since the year 2000 and amount to about 39% in total population (14,8 millions). Especially large the population growth of rural areas is particularly large in areas around big cities and areas of attractive scenic beauty.

3. Poverty and social exclusion according to CSO’s surveys Current state consistent measurement of poverty based on HBS and since 2005 also on EU-SILC; every few years multidimensional analysis of poverty, analysis of various dimensions of social exclusion (such as labour, consumption, education, social relations). Plans for the near future Comprehensive analyses of multidimensional poverty and social exclusion based on social cohesion surveys. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

4. What indicator of wellbeing has been adopted for the measurement of objective poverty in Poland? Taking into account the quality of data, in the analyses based on HBS results the expenditure level, including natural consumption, was adopted as the synthetic indicator of the economic situation. This choice seems particularly justified for the analyses of farmers’ households (among others because of the seasonal nature of their incomes). Natural consumption share in the total expenditure (HBS 2008) in farmers’ households – 11%. Natural consumption share in disposable income (HBS 2008) in farmers’ households – 8% (non monetary income – 10%). Share of income from farming in disposable income in farmers’ households – 70%. General remark: wherever the data on consumption and households’ income are reliable, the poverty indicators obtained on this basis are approximately the same. However, it should be noted whether the analysis covers monetary income only or includes natural consumption. This is particularly important for the countries with a significant percentage of the population living on farming. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

5. At-risk-of-economic-poverty rates by class of locality Source: CSO data estimated based on HBS. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S % of people below poverty line Relative a) „Legal” b) Subsistence minimum c) 200720082007200820072008 Total………......17,317,614,610,66,65,6 Urban areas.....12,212,310,46,94,13,3 Rural areas…...25,526,121,916,710,59,2 a)50% of mean monthly expenditure of households. b)Amount providing the legal eligibility for the social assistance benefit in cash. c)Estimated by the Institute of Labour and Social Studies. The subsistence minimum accounts for those needs only the satisfaction of which may not be postponed and if consumption below this level leads to biological destruction.

6. At-risk-of-economic-poverty in rural areas In rural areas at-risk-of-poverty rate is over twice, and in the case of extreme poverty, almost three times as high as in urban areas. At-risk-of-poverty rates according to EU criteria (on the basis of EU-SILC 2007). Eurostat does not estimate this indicator in the breakdown by urban/rural area. CSO’s estimates for Poland by rural/urban area: urban areas in total – 12%, rural areas – 25%. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

7. Social differentiation of poverty range in rural areas, illustrated by extreme poverty (people living in households with the expenditure level below the subsistence minimum) In 2008 there were about 9% of the population (about 1.3 million people) below the poverty line adopted at the subsistence minimum level. This was over 63% of the total population at the risk of extreme poverty (2.1 million people). The highest rates of the poor in rural areas was noted among the families without their own farms, whose main source of maintenance was provided by social benefits other than retirement pay or pension (about 32%) and the pensioners’ households (15%). The at-risk-of-extreme-poverty rate in rural areas among children and the young (0-19 years old) amounted to about 12% (with the poverty rate being over twice as high as the average). This age group made up almost 40% (38%) of those affected by extreme poverty in rural areas. The poverty rate for the age group 65 years and over was less than 7%. These people made up about 9% of the poor population in rural areas. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

8. Social exclusion There is no doubt that social exclusion is a category more helpful in explaining social problems of nowadays, as it is not limited to the traditional concept of material poverty, but effects social policy adapting it to the real needs. The social exclusion dimensions suggested in both Polish and foreign literature for monitoring: labour, consumption, social security, education, dwelling and environment, health, participation in culture, social relatiions, participation in social and political life (social capital dimension), public institutions and their accessibility. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

9. Selected indicators of social exclusion for rural areas in Poland Labour market (Labour Force Survey 2008, annual averages): activity rate – 54,5%; employment rate – 50,7%; unemployment rate – 7,0%. Structure of households by economic activity of the households members: with at least one employed person (without unemployment person) – 64,9%; with at least one unemployment person – 7,9%; of which without employed persons – 2,0%. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

10. Accessibility of services (EU-SILC 2007) Evaluation of the accessibility of services (% of households declaring great difficulties) basic services: retail trade (shops) – 5%; banking – 10%; public transport – 10%; health care (GP, out-patient clinic) – 8%. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

11. Information society (2008) (% of househols) no computer at home – 47%, no access to the Internet at home – 64%. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S Participation in social and cultural life (EU-SILC 2006) (refers to people at the age of 16 and over) % of people who have not been to the cinema during the last 12 months – 73%, % of people not participating in any political organization, trade union – 97,5%, % of people not participating in any religious groups or associations (including those not attending holy mass) – 22,7%.

12. Conclusion So far it has been possible to analyze (to a different extent) various aspects of social exclusion, sometimes in relation to the financial condition. In order to get a comprehensive diagnosis of this phenomenon it seems justified to carry out regular analyses taking into account possibly all the dimensions of social exclusion. Therefore, CSO has developed a concept of the multidimensional survey on social cohesion. The aim of the social cohesion survey is to collect the information which would allow for the comprehensive evaluation of the quality of life of Poles – both in the material and non-material aspects – but first of all, for the full evaluation of poverty and social exclusion, including the analysis of the relationship between the two phenomena. P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S

13. Thank you for your attention! P O W E R T Y A N D S O C I A L E X C L U S I O N I N T H E P O L I S H R U R A L A R E A S