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CHRONIC POOR AND THEIR IMPACT ON SUSTAINABLE DEVELOPMENT IN EUROPEAN REGION: CASE OF GERMANY
Abstract
The modern world is characterized by significant economic and environmental inequality. Income inequality of population and the predominance of rich people in the consumption over others cause certain ecological and economic problems with negative impact to sustainable development. One of the main global problems according to Sustainable Development Goals is poverty. And the most challenging kind of poverty from an economic and ecological point of view is chronic poverty. It is reproduced systematically in several generations of the family or in certain regions with low chances of escaping from it. The authors use data of the ?German Socio-Economic Panel (SOEP)? for 2008?2012 to estimate chronic poverty among German citizens. According to the results about 6% of people were chronically poor and about 17% were transient poor during the research period. Such level of chronic poverty in Germany has negative impact on sustainable development. The quality and sustainability of the environment worries chronic poor much less than the problem of survival. Environmental degradation, to a certain extent the result of poverty, in turn, has a greater impact on poor people. Consequently, people will be interested in solving environmental problems and invest in its preservation only when they have sufficient income.
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