Ukraine's Middle Class
Defined by Self-Identification, Not Personal Finances or Politics
A middle class has become visible in Ukraine, but is still in its embryonic stages. Socio-economic hurdles must be overcome for this group to grow and become influential.
A middle class is slowly emerging in Ukraine. In most European countries the middle class consists of the majority of the population, but in Ukraine, it accounts for just a small cross-section.
Defining Social Classes
According to the International Centre for Policy Studies in Kyiv, Ukraine, income levels cannot be used as the only criteria for defining social classes. The behavior of people in the labor and consumer goods markets should also be taken into account. Other criteria should include education level, professional qualifications, employment opportunities, consumption standards, self-identification as a member of a particular class, and the ability to fit into the transformation process.
Ukraine's Emerging Middle Class
Recent studies show the middle class in most of Europe accounts for 50-70% of the population. On the other hand, in a recent study, Kiev Gorshenin Institute of Management Issues (KIMIG) found that the middle class currently accounts for approximately 8.9% of Ukraine's population. Despite these findings, approximately one-third of Ukrainians consider themselves belonging to the middle class. Study criteria to determine social class included personal income, education level, and aspects of consumer behavior.
Financial Issues Affecting the MIddle Class
In Ukraine, mid-level incomes are not able to afford European standards of living or consumer behavior. According to government figures, the average monthly salary in 2006 was approximately $256. Also of note, Ukraine's middle class spends up to 90% of their monthly income on food and rent, leaving little for other consumer goods.
Respondents to the KIMIG poll provided the following monthly earnings information (in equivalent U.S. dollars):
- Less than $100 - 31%
- $100-200 - 34%
- $200-400 - 21%
- $400-1,000 - 8.7%
- $1,000-2,000 - 2%
- Greater than $2,000 - 0.7%
In the first quarter of 2007, the lowest Ukrainian salaries were in agriculture and health services, averaging $120-160 per month. In comparison, people in the financial sector earned above $500 per month. Based on location, the highest pay is in the capital Kyiv, with average salaries around $400 per month. The Donetsk and Dnipropetrovsk regions were next, averaging $220-250 per month. The lowest average salaries were in the Ternopil region at just over $150 per month
A key financial factor to consider is that many professions making up the middle class in other parts of Europe such as physicians, teachers, and engineers are still state-funded in Ukraine, equating to very low salaries. Approximately half of Ukraine's population is paid by the state. Many of these salaries are considered below subsistence levels.
Outlook for Ukraine's Middle Class
Ukraine's middle class is in its early stages of development. This group cannot yet be considered as a separate social class because people in that group do not get involved in politics or public organizations, nor do they vote for political projects created for middle class support.
Development of the middle class in Ukraine will depend on the country's political situation and the further development of its economy. With its small size, the Ukrainian middle class currently has little to no influence on the country's economy. Those in the Ukrainian middle class are beginning to realize that they cannot wait for somebody to do something for them. They will need to take action themselves, and in time, will have the ability to influence decision-making.
References
The report on preliminary research "Ukraine's Middle Class." International Centre for Policy Studies. October 2002.
The research "Is there a middle class in Ukraine?" Kiev Gorshenin Institute of Management Issues. April 2007.
