Food aid for the poor – key working tool for protection of food interestsof ukraine’s population

Iryna Nizhnik1, Ruslan Mudrak2
1, 2 Uman National University of Horticulture
https://doi.org/10.22630/TIRR.2019.11.7
Nizhnik, Iryna (Uman National University of Horticulture)
Mudrak, Ruslan (Uman National University of Horticulture)
Food aid for the poor – key working tool for protection of food interestsof ukraine’s population
Turystyka i Rozwój Regionalny, 2019, vol., nr 11, s. 73-83

Słowa kluczowe

food interests protection subsistence level food aid budget cost multiplier

Streszczenie

The need to protect the food interests of Ukrainian citizens is conditioned by a number of pressing challenges – insufficient level of income, high growth rates of consumer food prices, excessive level of market concentration, excessive volumes of food exports, which cause a deficit in the domestic market, etc. For a full-scale deployment of the Ukrainian food aid program, it is necessary to preliminarily conduct an experiment. As part of the experiment, we propose to involve low-income citizens in the program, who has a total income not exceeding 130% of the poverty line (subsistence level). According to the statistics of 2017, the protection of food interests needs those households whose average income is less than UAH 2,085 per month – these are household’s first decile group. The average benefit is UAH 284 per person per month. A tentative budget for food aid for all households and the decile group should be UAH 1204.6 million. An increase in food expenditure by 1% will lead to an increase in real GDP of Ukraine by 0.97%. Food expenditures of the population of Ukraine in 2017 amounted to UAH 673539.0 million. Their increase by UAH 1204.6 million, or 0.18%, will cause real GDP growth of 0.17% or UAH 4266.9 million.

Cytowania

  1. Cabinet of Ministers of Ukraine: Decree “About making changes to the application to the decree of the Cabinet of Ministers of Ukraine dated December 25 1996, No. 1548 and recognition of invalidations of some decrees of the Cabinet of Ministers of Ukraine dated June 7 2017, No. 394”, Official Bulletin of Ukraine, 2017, No. 48 (access: 05.08.2019)
  2. Commission of the European Communities: White paper on food safety, Brussels, 12 January 2000, COM (1999) 719 final.
  3. Economic Discussion Club: USA Food Support Programs, or about how the state power respects its people, http://edclub.com.ua/analityka/programy-prodovolchoyi-pidtrymky-naselennya-ussha-abo-pro-te-yak-vlada-povazhaye-sviy (access: 23.07.2019).
  4. FINANCE.UA: The following year, Lithuanians will be issued food stamps, https://news.finance.ua/ua/news/-/443922/nastupnogo-roku-lytovtsyam-vydavatymut-talony-na-yizhu (access: 22.07.2019).
  5. Keynes J.M.: The General Theory of Employment, Interest, and Money, Macmillan Publishing Company, London 1936.
  6. Luhby T.: The real story of food stamps, CNN Business, 2018, https://money.cnn.com/2018/02/13/news/economy/food-stamps-what-to-know/index.html?sr=fbmoney021318food-stamps-what-to-know1144PMVODtopLink&linkId=48080593 (access: 29.07.2019)
  7. Minfin: Living wage in Ukraine, https://index.minfin.com.ua/ua/labour/wagemin/ (access: 05.08.2019)
  8. Mudrak R., Lagodienko V.: The consumer price index of food products and agroinflation: comparative analysis Ukraine-European Union, Economy of Ukraine 2018, No. 1, p. 29–39.
  9. Verkhovna Rada of Ukraine: Low of Ukraine “About state support of agriculture of Ukraine” from 24 June 2004, No. 1877-IV, Bulletin of Verkhovna Rada of Ukraine, 2004, No. 49.