FOREIGN EXPERIENCES IN IDENTIFYING FACTORS AFFECTING THE LEVEL OF POVERTY

Аннотация

This article examines foreign experiences in identifying factors affecting the level of poverty from a theoretical and practical perspective, and provides recommendations on the application of classical economists' theoretical views on the factors that cause poverty, its impact on the economy, its elimination, and their aspects suitable for the conditions of Uzbekistan. Keywords:income level, consumer basket, social protection, minimum consumption expenditure,daily consumption rate In the last century, more precisely on January 8, 1964, the President of the United States of America L. Johnson declared “America’s War on Poverty”. Some time later, on August 20, this “war” became law. This law, based on the capabilities of the United States economy, determined the government’s directions for preventing and reducing poverty. This is referred to in the history of the United States as a grand strategy under the name “War on Poverty”. One of its practical works is that everyone works, works, uses their intellectual potential and tries not to lag behind society on the path of “building a great society”. The relevant representatives of the government will help the lagging strata of the population in the manner prescribed by law. This law has already shown its strength in 1965. The reason for achieving results that had not been achieved since the 1930s in just one year was a complex socio-economic state policy and liberalism. The achievement of property rights occurred through the creation of freedom and privileges, as stipulated in the law. It was during these years that the number of low-income and poor people in the country decreased, and due to the gratuitous assistance provided by the state - subsidies and preferential loans, the number of small businesses and entrepreneurs increased almost3times.1. Poverty in Europe, its consequences, and the factors that reduce it were reflected in the works of Adam Smith. According to him, poverty is a condition associated with human nature, and a process that creates feelings of discrimination, shame, and alienation among the population in society. Here, it is said that the lack of ability to create material well-being is not a hereditary trait, but rather a fundamental line or feature that arises between social standards and material well-being in this society.2Based onthe work of Adam Smith, the poverty line was created in the 19th century by calculating the family budget, that is, their income and expenses, especially those spentongoods and services in theconsumer basket. 1RaitsinV.Ya.Modeliplanirovaniyaurovnyajizni.-M."Economics",1987,pp.42-60 2A.Smith.Investigationofnatureandwealth.-M.1962 page2080 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai Since then, according to the World Bank, the absolute poverty line has been calculated at $1.25 per day. Today, due to the increase in the variety of products in the consumer basket, if the daily norm is less than $3.7, the owner of this income is considered poor. Interestingly, given that more than 70 percent of daily income is spent on minimal consumption, mainly on food, poverty is a condition that negatively affects the economy, since the inability to save money and invest is aprocess that is contrary tothe prosperity ofthe country's economy. Later, European economists established that the daily norm for the poorest countries is 1.25 US dollars, while the poverty line is 2.15 US dollars per day. Today, this figure is equivalent to 5.6 US dollars. Also, the population groups with a daily income of more than 2 US dollars and less than 4 US dollars began to be considered the economically disadvantaged population. The table below presents poverty levels in some foreign countries using different concepts. Table 1.2 Someforeign countries with poverty levels (2014-2021)3 Countryname Absolute Relative Poverty rate (in %) when anti- poverty (in %) poverty (in%) poverty concepts are applied Russia 29 6.1 12.2 USA 24 7.3 14.3 Japan 26 6.7 14.7 China 43 5.2 15.2 European countries 27 7.1 13.2 Some European countries, seeing the benefits of these anti-poverty concepts, have begun to set their own poverty lines as part of their reforms. For example, in China, where the number of poor people increased from 26 million to 128 million when the daily income was 55 cents to 1 US dollar, Scandinavian countries such as Luxembourg, Austria, Germany, and Norway set the daily income at 60 dollars, which reduced the number of poor people in households with 4 members from 960,000 to 450,000. In the United States, daily income also increased from 5.7 dollars to 61 dollars, and here the number of poor people also decreased by an average of 3.5-4 times. According to the latest statistics, Belarus, as well as Moldova, are recognized as the poorest countries in Europe. Most of the population of these territ