Socio-economic exclusion as a hindrance of economic development. A comparative study for European countries

In the paper we run an exhaustive study of the magnitude socio-economic exclusion which affects large parts of societies in European countries. Social and economic exclusion – alternatively called as deprivation – are widely recognized as symptoms of human poverty. This implies obstacles in gaining full and free access to education, professional health care, finance, or i.e. labor market, resulting in substantial lack of skills, capabilities and functionings (see Sen 1986). All these disable effective usage and allocation of resources, which constitutes a significant hindrance for economic development of countries. The aim of the analysis is to identify the magnitude of socio-economic deprivation (human poverty) and confront if with the economic development level (approximated by gross domestic product per capita) and dynamics in European countries. For quantitative assessment of the socio-economic deprivation level we apply a bundle of arbitrary chosen indicator derived from EUROSTAT databases. The sample covers European Union economies – with special focus on Baltic Sea region countries, and the time span for the analysis is 2004-2011.