This poverty assessment for Romaniacovers the period from 1995 to 2002, since the last WorldBank poverty analysis reviewed the evolution of poverty from1989 to 1994, the early years of transition from a socialistto a market economy. This assessment's objective is tounderstand how poverty has evolved and how economic growthand social protection programs, 10 percent of GDP, haveaffected poverty, as Romania prepares for accession to theEuropean Union.The paper focuses on monetary dimensions ofwell-being, or consumption, to inform the policy dialogue inRomania on the extent and dynamics of poverty. The resultsare based on two comparable, nationally representativesurveys: (i) the Romanian Household Budget Survey (ABF, uponits Romanian acronym) for the period 2001- 2002; and (ii)the Integrated Household Survey (AIG) for the period1995-2000. Other dimensions of deprivations have beencaptured for 2002 using the Living Conditions Survey(ACOVI). While concentrating on monetary poverty, the papercaptures dimensions of material poverty such as caloricintake; crowding and living conditions, and ownership ofessential durables. In addition, it assesses poverty definedas capability to function in society, or adequate level ofinvestments in health or education, or the lack ofunemployment. Finally, the report reviews community povertyand perceptions of poverty. First, the changing economicstructure is briefly described, as is the evolution ofmacroeconomic management. Second, the assessment is fittedinto the context of the broader Bank program of analysis andlending. The rest of the paper is arranged as follows:apoverty profile (Chapter 2), an analysis of the impact ofgrowth on poverty (Chapter 3), of labor force participation,unemployment and poverty (Chapter 4) and of socialprotection and poverty (Chapter 5). Detailed backgroundpapers are provided in Volume 2.
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