EKIP– Expert Club for Economics and Politics A Different Opinion
The Indesk, developed by Steve Hanke
Just in time for the day of reflection, the Cato Institute published an article about the poverty index in Bulgaria over the past few governments. The index is formed by the sum of inflation, interest rates on bank loans and the unemployment rate. The percentage change in GDP is subtracted from the sum. An increase in the index means a deterioration.
The index hit its peak during the rule of Zhan Videnov – due to hyperinflation in the first half of 1997, it reached 2138 points. With the introduction of the currency board and the end of hyperinflation, under the rule of Ivan Kostov, the index fell by almost 2000% in 4 years. Under Simeon II, the index also decreased slightly. The trend of improvement was interrupted under Sergey Stanishev, when the poverty index increased by 8%. There was a slight improvement under the rule of GERB (against the backdrop of rising poverty indices across Europe).
The conclusion is that the introduction of the currency board led to the most significant reduction, and the socialist rule - to an increase in poverty.
