Hungary is facing pressure from EU’s €63bn cut in the development fund
FT.com Feb 2020
More than half of the EU’s member states have rejected cuts to €63bn in development money in the bloc’s next budget, entrenching sharp divisions between rich and poor countries ahead of an emergency leaders’ summit this month.
A group of 15 countries who are net recipients of EU money — including Poland, Hungary, and Spain — have said they will not sign off on a spending plan that reduces prized cohesion money for the poorest states.
Economic Index of Hungary
According to the figures, Hungary should be a very good place to live in. It has a very narrow gap between rich & poor and a very low poverty rate of 1%.
But why people complain about the poverty problem in Hungary?
Hungary’s Poverty at All-Time Low
The number of people living in severe material deprivation in Hungary is at an all-time low as reflected by the latest figures from Eurostat. While these numbers are the most favorable yet, Hungary still has one of the highest poverty rates in the EU.
Eurostat has released its latest dataset about severe material deprivation in the European Union, which is an indicator expressing the inability to afford some items considered by most people to be desirable or necessary to lead a proper life.
Severe material deprivation measures the percentage of the population that cannot afford at least four of the following nine items:
- to pay their rent, mortgage or utility bills;
- to keep their home adequately warm;
- to face unexpected expenses;
- to eat meat or proteins regularly;
- to go on holiday;
- a television set;
- a washing machine;
- a car;
- a telephone.
Hungary is part of the EU community
Hungary is a family of EU and people in Hungary will naturally compare their living standards to rich countries like Germany and France.
The GDP of Germany is 3 times higher than that of Hungary. This is certainly a very big gap.
How to Resolve this problem
People in Hungary should rely less upon the EU and spend more energy to create opportunities for themselves such as Community Crowdfunding for the development funds.
A lot of suggestions that increased community participation is the ultimate way to reduce poverty.
If the funding can be coming from cashback from merchants such as people eating out every day, buying out every day.
- As an example, GDP per capita for Hungary is about US$ 14,840 per year https://data.worldbank.org
- Assumed retail merchant networks can cover all walks of life in Hungary.
- 5% cashback will equate to 5% x US$14,840=US$740 per year
- Hungary has a population of 10 million. Half of the people participate, 5 million users will generate cashback close to US$ 4 B annually.
This US$ 4B can be used as development fund such as:
- Small business enterprise funds
- Young people venture funds
- Education funds
- Technology venture funds
Sustainable development goals and the world economic index are to measure the success of a country. However, most of them are trying to apply the wishes and values of the wealthy countries to poor countries such as gender equality, clean energy, income inequality, climate action, life on land, peace & justice.
Don’t count on their aids and build the community crowdfunding structure and help ourselves.
To learn how to create a Cashback program at retail nationwide, please visit CharityiBonus.com