Measuring multidimensional poverty within the resource-based approach: a case study of Latgale region, Latvia

Abstract

In modern social science, the concept of multidimensional poverty is considered the most progressive approach to measuring poverty in countries of various development levels, including the developed ones. As an indicator of poverty in the EU, the multidimensional index of the risk of poverty and social exclusion (AROPE) is used, which integrates the indicators of income poverty, material deprivation and exclusion from the labour market. The empirical basis for its calculation is the data of the survey “Statistics of income and living conditions in the EU” (EU-SILC), published by the statistical office of the European Union. Within the framework of this article, the authors tried to contribute to the theoretical and methodological basis for studying the issue of multidimensional poverty by measuring and analysing it within the framework of the resource approach using the empirical data collected by the authors in one of the peripheral regions of Latvia - Latgale, which for many years has had the lowest indicators of economic development in the country. The resource-based approach is founded on the following methodological path: resources available for the people and households can be transformed into capital as a result of its activation and capitalization that, in its turn, can give the person socially economic benefit, i.e., a resource becomes a capital. The methodology of this study involves the application of new concepts: the “resource-poor” (few resources) and the “functional-poor” (low capitalization of available resources), as well as the “resource-functional poor”, who, according to the authors, represent different target groups for the social policy, since they fundamentally differ in terms of both the causes of poverty and the approaches to supporting these groups.