Social development and living conditions in the Dnipro Basin

3.2.6  Social development and living conditions in the Dnipro Basin

As a result of the economic reforms of the 1990’s, hyperinflation, the collapse of productive activity, unemployment and uncontrolled growth of prices on basic consumer goods have had an immediate and severe impact on the population. Real earning capacity has been undermined and individuals cash assets have virtually disappeared. Rates of decline were particularly severe between 1991-2000. Key comparative statistics on the living standards in the riparian countries of the Dnipro Basin is presented in Table 3.7.

Table 3.7 Human development indicators for the Dnipro Basin countries (Human Development Report 2000)

In 2000, Belarus was ranked 57 in the Human Development Index, ahead of Russia (62) and Ukraine (78). The Basin countries have high ranks in terms of the education level of their population, although real per capita GDP values are 2-3-fold lower than in other Eastern European and NIS countries.

There has been a dramatic 20-60% reduction of real per capita GDP values in the Dnipro Basin countries over the last decade. The Ukrainian population has been particularly hard hit with a per capita GDP reduction of 60.1% (from 1,979 USD in 1990 to 873 USD in 1998). In Russia and Belarus, per capita GDP reduction has been 58% and 44% respectively.

Average life expectancy is low in all countries of the Basin (67 to 69 years) and Ukraine has the largest proportion of population whose incomes are below the poverty line. The economic reforms have had a serious impact on the human resource potential of the Basin, which is going to require a long time to redevelop. The living conditions and life expectancy of the Basin population are also greatly affected by the unfavourable environmental situation that has developed as a result of the Chernobyl accident and a deficit of good quality drinking water.

The progressive deterioration in living conditions in the riparian countries of the Dnipro Basin is a crucial issue, as an underdeveloped market often limits the choice of the population with regard to housing. The situation is exacerbated by an inadequately developed/funded transportation network, and the poorly developed and funded social service sector (including the municipal utility service sector and communications). It is recognised that there is a close relationship between the level of social development, the living conditions of the Dnipro Basin population and the existing state of the municipal utility sector.

Next: Municipal utility sector

Previous: Agriculture