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SOCIO-ECONOMIC ESSENCE AND CLASSIFICATION OF THE STANDARD OF
LIVING OF THE POPULATION
Samiyeva Gulnoza Takhirovna
Associate Professor of the Department of “Innovative Economics” of KarSTU, PhD
Shermatova N.Z.
2nd year master's student of the Department of "Innovative Economics" of KarSTU
The set of goods necessary for human life includes various needs, such as working conditions,
education, health care, food, and housing. The level of satisfaction of human needs depends
on the level of individual and family income of members of society. The standard of living
can be considered at the national level (for the entire population) and at the stratified
microlevel (for a separate group of the population). The first approach allows for a
comparative analysis of the standard of living of the population in different countries by
determining the gross domestic product per capita.
Comparison of the dynamics of income distribution by population groups is carried out on the
basis of consumption budgets. There are several types of consumption budgets: the average
family budget, the budget of the highly well-off, the budget of the minimally well-off, the
budget of pensioners and other social groups of the population, among others.
The lowest level of well-being can be defined as the level of family income below which the
reproduction of labor force cannot be ensured. This level is considered the minimum level of
material security or the level of subsistence (the beginning of poverty). In a market economy,
the average income is determined by the incomes of the so-called "middle class". The
consumer basket of such a group includes a house, a car, a garden, modern household
appliances, the opportunity to travel and educate their children, securities, and jewelry.
A market economy requires the existence of a highly endowed or "rich" stratum of the
population, which includes a very small percentage of the population who are able to
purchase high-quality goods and services.
The standard of living is inextricably linked with the lifestyle of people. Lifestyle is a socio-
economic category that reflects the type and methods of life activity of people (society, social
stratum, individual) in national and world society. Lifestyle covers various aspects of human
life, namely:
- labor, social forms of its organization;
- forms of life and use of free time;
- participation in political and social life;
- forms of satisfaction of material and spiritual needs;
- norms and rules of behavior of people in everyday life.
The indicators of the standard of living are diverse and are inextricably linked to the concept
of standard of living.
The concept of “well-being of the population” in the modern sense is a broad concept that
covers all aspects of human activity.
In our opinion, the well-being of the population is understood as the provision of the
population with material and non-material goods and services necessary for their survival, as
well as the level of their consumption. Various concepts such as "standard of living",
"people's well-being", and others are used to express the level of well-being of the population.
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In Uzbekistan, the term "standard of living" is more widely used, expressing the level of
satisfaction of the material, spiritual, and social needs of the population. The well-being of
the population or its standard of living depends on the needs of the population, the
development of the employment and service sectors, scientific and technical progress, the
spiritual and educational level of the population, and other such factors. The well-being of the
population is determined, on the one hand, by the composition and level of the population's
constantly changing needs for various goods, and on the other hand, by the possibilities of
satisfying these needs, the situation in the market for goods and services, the income of the
population, and the wages of workers. However, both the amount of wages and the level of
well-being depend on the scale of productivity of the labor and service sectors, the level of
scientific and technological development, the cultural and educational level of the population,
national characteristics, and political power.
The level of well-being is determined by a system of indicators that give an idea of certain
aspect of the life activity of the population. In order to have detailed information about the
level of well-being of the population, it is necessary to thoroughly study the incomes and
needs of the population, the level and structure of consumption, the level of provision with
housing, property, cultural and household goods and other opportunities.
Indicators of the level of well-being of the population are diverse and are closely related to
the concept of living standards. Different countries in the world use different criteria to
express the level of well-being of the population. Among them, the minimum consumption
budget, poverty, absolute and relative poverty indicators are widely used.
The minimum consumption budget is the value of a set of consumer goods and services that
provides a socially justified minimum level of consumption of moral needs necessary for the
development of an individual.
The poverty indicator is one of the criteria used to assess the level of well-being of the
population. In world practice, the following basic concept is used in the approach to defining
the level of poverty. The concept of absolute poverty is based on defining the income
necessary to meet the minimum basic needs of an individual or group.
Households, with their income, also play an important role in the socio-economic
development of the population. In practice, the following descriptions of households are used:
- household income;
- household expenditure;
- indicators of material resources in the household economy.
Poverty assessment in Uzbekistan is practically not used in economics, but is based on the
absolute concept of the subsistence minimum, which is determined by using the average
monthly income indicator. The subsistence minimum is an indicator of the minimum level of
consumption of material goods and services necessary to maintain human health and ensure
their vital activity.
The subsistence minimum can be set as an average per capita value for the Republic of
Uzbekistan as a whole, for the main socio-demographic groups in the subjects, including
individual cities and districts. The basis for determining the cost of living is scientifically
developed natural food product ratios, which are stratified according to minimum
consumption standards for certain socio-economic groups of the population and balanced
according to the caloric content and chemical composition of the substances consumed. In
order to take into account different natural climatic conditions when determining food
consumption standards, the territory of the republic is divided into several zones in
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
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accordance with current methodological recommendations. According to the distribution by
zones, the average annual consumption of food products per capita is determined within
certain limits.
"The energy value of food types by territorial zones is approximately 2204 kcal to 2607 kcal
per day. In the subsistence minimum budget, consumption standards are set only for food
products, and the cost of goods and all types of services is 30-35%."
One of the most negative indicators of socio-economic development is absolute poverty.
Absolute poverty is understood as the lack of income in general or the income necessary to
meet the minimum living needs of an individual.
The level of well-being of the population can also be distinguished by the following four
indicators:
1. Completeness of well-being of the population - the use of benefits that ensure the all-round
development of a person;
2. The standard level of well-being of the population is rational consumption according to
scientifically based standards that provide favorable conditions for the full restoration of a
person's physical and mental strength;
3. Poverty is the consumption of goods at a level that maintains working capacity at the lower
limit of the reproduction of resources for labor;
4. Poverty is the consumption of the minimum types of goods and services that are
permissible according to biological criteria, the consumption of which allows a person to
maintain his ability to survive.
One of the most important indicators of the socio-economic development of the population is
life expectancy. Along with this, the level of education of the population, high professional
level, economic activity, entrepreneurship, social relations are emphasized as the reasons for
ensuring a high level of well-being of the population in the country.
The well-being of the country's population is expressed in the volume and composition of
gross domestic product. Of particular importance is personal consumption expenditure. A
high share of durable goods in the total volume of consumption indicates a high level of well-
being of the population and the level of economic development of the country. Per capita
gross domestic product is used to calculate the human development index and the social
development index of the country.
The main goal of the economic reforms being carried out in the Republic of Uzbekistan is to
achieve stability and positive rates of economic growth. It should be emphasized that all
aspects of social and labor relations directly affect the lifestyle and incomes of the population,
the emergence of those in need of social protection, the rich, the poor and the destitute among
the population.
From a social perspective, the state pursues a social policy aimed at creating conditions for a
decent life and free development of a person. One of the main directions of this policy is to
increase the standard of living and quality of life of the population by encouraging labor and
entrepreneurial activity, ensuring the economic well-being of every person capable of
working and his family through his labor, and creating opportunities for the formation of
savings and their effective investment. Socio-labor relations associated with labor activity
and its results have a direct impact on the formation of wages and incomes. The development
of labor relations leads to the emergence of new forms of social partnership, the development
of social protection, and an increase in satisfaction with labor activity. With the deepening of
market relations, the stratification of the living standards of the population and incomes
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 05,2025
Journal:
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page 594
becomes a central problem. The direction and pace of subsequent fundamental changes, as
well as the political stability of society, will largely depend on their resolution. In turn, the
resolution of these problems requires a clearly working income policy.
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