Poverty and economic growth in the northern regions: trends, relationship and prospects

The paper identifies trends in the dynamics of poverty in the northern regions of Russia, its relationship with economic growth rates and prospects of overcoming poverty. The importance of the study is due to the fact that a decent income at the individual level is one of the factors of socio-economic development. In the northern regions the severity of the poverty problem is caused by the climatic conditions and high cost of living. In addition, the relevance of the topic is due to the lack of an unambiguous approach to the interpretation of the concept and its measurement. It is established that there is a gradual decrease in poverty in the northern regions and Russia as a whole. As a rule, the higher the rate of regional economic growth, the lower the share of population below the poverty line. It is determined that stimulating economic growth and social support are key areas of government policy to reduce poverty. They are especially important at the regional level. In the Komi Republic, the financing amount of these measures today is 20–22 % of the total regional budget expenditures, or 2.0 % of the gross regional product. At the same time, it is shown that the problem of poverty in the Komi Republic is more acute than in most northern regions. It is exacerbated by high income inequality and unemployment. It is proved that the prospects of poverty reduction are related not only to the efficiency of social support measures but also to the transition of the regional and Russia’s economy to the sustainable development level.