Romania’s Poverty Rate Rose 5 Pcts In ‘05-‘08, Despite Economic Growth

According to data the NGO presented Thursday, 23% of Romania’s population lived in relative poverty in 2008, compared to 21% in Bulgaria, 20% in Spain, Lithuania and Greece, 19% in the UK, Estonia and Italy and 9% in the Czech Republic.

„The poverty rate by social welfare increased from 18% to 23% in 2005-2008,” said the NGO’s executive manager, Ancuta Vamesu.

The report shows Romania is one of the EU member states that spends a small amount of its GDP on social welfare, just 12.8% of GDP, compared to the EU average of 25.2%. Also, Romania’s social welfare spending decreased to 12.8% in 2005-2008, from 13.2% of GDP.

Vamesu said Romania spends triple on passive measures than it does on active social protection measures and accredited social services providers are distributed unevenly and only cover 31% of the country.

The organization also said the number of NGOs providing social services is decreasing because of policies that have encouraged the development of state social services, funded with taxpayer money.

If in 2006 NGOs accounted for 73.8% of accredited service providers, in 2010 they only account for 48.7% and NGOs provide a quarter of alternative child protection services in Romania, the report states. NGOs also assist 41% of the country’s population in need of home care services and over 58% of the elderly.

Moreover, the report notes, NGOs’ costs per services beneficiary are as much as five times lower than the same services provided by the state.