Poverty in Serbia has been defined as a multi-dimensional phenomenon which, in addition to insufficient income for securing livelihood, implies also the lack of employment, inadequate housing and access to social welfare, medical, educational and communal services. Other key aspects of poverty include inability to exercise the right to a healthy environment and natural resources, clean water and air above all.

The Poverty Reduction Strategy endorsed by the Government of the Republic of Serbia in 2003 provides a basis for development and implementation of measures at national and local levels which should contribute primarily to reduction of absolute poverty (the persons considered to be under the absolute poverty line are persons of age whose monthly expenditures are below the minimum required for food (minimum nutritional prescribed by FAO) and other expenses that do not include food (with the exception of durable goods and imputed rent)) in the country but to improvement of the quality of life of the most vulnerable categories of population also.

The main aim of implementation of the Poverty Reduction Strategy was to half absolute poverty in Serbia by 2010. According to the 2002 Living Standards Measurement Survey, 14% or some one million citizens of Serbia were poor. The data from the 2007 Living Standards Measurement Survey indicate that poverty had been reduced to 6.6% in this period.

In addition to the Living Standards Measurement Survey, poverty in Serbia is also measured by the Household Budget Survey (HBS). In 2004, a strategic decision was made to base the poverty statistics in Serbia on data obtained from the Household Budget Survey, the rationale being to ensure full national ownership and the necessary continuity in monitoring data related to poverty. The Household Budget Survey is regularly conducted by the Republic Statistics Office.

The European Union i.e. the Member States measure relative poverty (relative poverty line is set as 60% median average consumption per consumption unit) on the basis of Eurostat methodology (Survey on Income and Living Conditions – SILC). According to the 2008 data, the percentage of population living at risk of poverty in the EU Member States varies between 10% and 23%. The lowest poverty rate was recorded in the Netherlands and Czech Republic; the highest risk from poverty was recorded in Latvia. The risk from poverty is also high in the Meditterranean and Baltic states.  GDP increase in the period 2003 – 2008 has contributed significantly to poverty decrease (Data of the Republic Statistics Office and the Ministry of Finance).

Data for the period 2003-2007 also show that consumption of middle class and the poorest households increased above average as compared to the general population in Serbia (Data from the Living Standards Measurement Survey, RSO).

----- average incrase in consumption   ------ concumption of households in deciles

Despite the fact that the main objective of the Poverty Reduction Strategy has been achieved, the necessity for the Government of the Republic of Serbia to deal systematically with the problems of the most vulnerable categories of population, social inclusion and continuous poverty reduction, persists. An effective care of the state is even more imperative in light of the international financial crisis and enourmous budget restrictions.
According to the official data of the Republic Statistics Office, 7.9% citizens Serbia lived below the absolute poverty line in 2008.

Strategic framework for social inclusion and poverty reduction in the coming period

After the formal completion of the PRS implementation, the Government of Serbia began  the process of defining policies of social inclusion and poverty reduction, bearing in mind the relevant EU policies in these areas effective at the EU level. Further to design and implementation of measures alleviating the effects of financial crisis, the Government plans to improve measures aimed at poverty reduction and better social inclusion with an emphasis on the vulnerable and marginalized categories.

The transition from the poverty reduction to the social inclusion concept stems from the commitment of the Government to implement the EU integration process and the need to align the Government measures with the EU policies leading to more effective social cohesion. This move will be based on improvement of the quality of life of all social categories and shall represent an integral part of the EU integration process.

The Republic of Serbia is gradually entering a contractual relationship with the EU (Stabilisation and Accession Agreement and the candidate country status), with the issues of poverty reduction and social inclusion becoming a mandatory component of the EU integration policies. The Government of Serbia is resolved to fulfil the requirements relevant to social inclusion as defined by the European Union at Lisbon and Copenhagen Summits, the Millennium Development Goals as well as the objectives set in the Poverty Reduction Strategy. In order to achieve this, updating of the existing policies is required as these deal with the issues of social inclusion only partially. Also, a strategic framework needs to be developed that will take into account the entire spectrum of exclusion based on numerous social factors.

As with the other countries in the process of EU accession, the Republic of Serbia is also expected to develop a Joint Inclusion Memorandum (JIM). The aim of the JIM is to assist candidate states in fight against poverty and social exclusion, to modernize their social policy systems as well as to assist them in preparations for full participation in EU policies. The EU candidate states are invited to develop their JIMs in cooperation with the European Commission.

What is the role of the Social Inclusion Memorandum?

• To prepare the candidate countries for their full participation in the Open Coordination Method on issues of social inclusion, following their accession into the European Union;
• To identify key challenges related to fight against poverty and social inclusion;
• To represent the main strategic measures undertaken so as to start translating the joint EU objectives into national policies; and
• To identify key strategic problems requiring monitoring and additional discussions.

Data for 2007

Data for 2006

Data for 2003