It is considered that the causes for poverty in the developed countries are connected either with a personal failure, which does not require a compensation from the side of the state (Newman, 1999), or with a structural defects within the economy (Rank, Yoon, and Herschl, 2003). The structural defects are being expressed themselves mainly through the labour market, which either does not create enough jobs, or the wage rates does not cover a certain minimum standard of living. The structural defects has both microeconomic and macroeconomic dimensions. And the structural defects are always connected with insufficient investments in human capital.
The poverty in the developing countries is often related to the effect of some additional factors. A range of authors emphasize the significance in this regard of the cultural factors. Certain national cultures create favourable conditions for economic growth and for decrease in poverty, while others traditional social and cultural structures are hostile to the economic progress.
Bulgaria can be referred to the group of the post-communist countries and in the same time as a country it has many characteristics of a developing market. The poverty in Bulgaria is produced by both the structural defects of a transforming economy and by the strong social, cultural and ethnical particularities. This means that there could not be a simple strategy for dealing and overcoming of poverty.


Key words

poverty, economic and social policy



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