The Methodology of the Subsistence Minimum Calculation for Developing Countries and its Computation on the Georgian Example

Abstract

This article shows the social importance of subsistence minimum in Georgia.
The methodology of its calculation is also shown. We propose ways of improving
the calculation of subsistence minimum in Georgia and how to extend it for other
developing countries.
The weights of food and non-food expenditures in the subsistence minimum
baskets are essential in these calculations. Daily consumption value of the minimum
food basket has been calculated too. The average consumer expenditures on food
supply and the other expenditures to the share are considered in dynamics.
Our methodology of the subsistence minimum calculation is applied for the
case of Georgia. However, it can be used for similar purposes based on data
from other developing countries, where social stability is achieved, and social
inequalities are to be actualized.

ACM Computing Classification System (1998): H.5.3, J.1, J.4, G.3.