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Combating or Incubating Poverty?

 

Reza Adenan*

07/12/2005

Today anti-poverty rhetoric is widespread; it seeks to raise the awareness of the problem while experts and professionals are attempting to solve it. According to John Friedman, as we attempt to solve the problem of poverty, we claim to understand the meaning of poverty. But do we? Our lack of understanding about poverty and our attitude of ‘knowing how’ to solve the problem, despite without having a clear definition of it, have contributed to the deterioration of the past and current condition of poverty.

Understanding poverty is a complicated task, as the question itself poses a subjective nature of interpretation.  In assessing these conditions, professionals (mostly economists) often reduce the definition of poverty into universal and standardized terms which often differ from the perspective of the poor itself, where the realities are often local, complex, diverse and dynamic.

Many attempts to overcome poverty have failed to address the issue in the last few decades. In the year 2000, the World Bank published The World Development Report, with its ambitious intention to attack poverty using various strategies to ensure the success of its mission. The report seeks to expand the understanding of our current knowledge of the concept of poverty. It includes the Voices of the Poor or the section of the gathering of information from 60,000 men and women living in the state of poverty. However, instead of emphasizing to the needs of the 60,000 samples of men and women living in deteriorating social depravation, the report reduces the definition of being poor as to a US$1.8 per day measurement. If the report is read carefully, no single person out of the 60,000 interviewed mentioned that they are poor because they spent less than US$1.8 per day. Most of the issues addressed by the poor were not even about money. It is about access to basic services, such as healthcare, clean water, education and other means that provided the cohesiveness of social integration.

The report proposed three strategies to overcome poverty: promoting opportunity, facilitating empowerment, and enhancing security.

The first strategy did not differ much from our previous ideas of development to overcome poverty. ‘Overall economic growth is crucial for generating opportunities’; the belief in ‘growth’ as a solution to the problems of the poor did not disappear. Indeed economist still endorsed the ‘myth’ of growth as a solution of to the billions of poor, and it would take them probably another one to two decades to realize that they believe in empty dreams.

The second point is ‘facilitating empowerment’. This could be defined as a process of bringing the ‘poor’ outside of their traditional realm.  The poor people have to be ‘removed from any social and institutional barriers’. In other words the second strategy implies invitation to the ‘poor’ to join the formal economy and a dependent wage-labor economic sector, where everything is valued but human life. Why should the informal economy be formalized? It is the informal economy that prolonged the survival of many ‘people’ in third world countries as their formal economies are crippled down. Instead, the promotion of informal economies should be given priority.

The third and last strategy is ‘enhancing security’. This includes reducing vulnerability to economic shocks, natural disasters, ill-health, disability and personal violence-is an intrinsic part of enhancing well being and encourages investment in human capital and in higher risk, higher return activities.’ This seems to contradict the second point because while the latter suggests the removal of social barriers, the former emphasizes the importance to protect the ‘poor’. In order to achieve the first objective and to ensure that the ‘poor’ do not return to the informal sector, providing security to the ‘poor’ was necessary by which made the ‘poor’ dependent on the process of ‘growth’, so foreign business investment can ensure the building of a stable and market oriented society, and most importantly the building of assets for the ‘poor’.

The World Bank Report shapes current understanding in regards to the issue of poverty. The income level factor in defining poverty has been transformed and modified through time. However, it’s hardly been successful in meeting the needs of the poor. The failure to define poverty occurs because contemporary society limits itself to see the question of poverty as an economic problem, rather than a particular state of social, political, psychological, and existential being that defines the human condition at a given point in history. Historical evidence illustrates that the very method used to overcome poverty is indeed the very cause of ‘poverty’. For example, societies that adopted the path of capitalism and development have increased their level of poverty while at the same time using this same method to overcome poverty, that have really contributed to increase their poverty level.

 It is paradox that the deprivation and well being as perceived by the ‘poor’ have often been not considered by those people who judged them ‘poor’ and had the noble intention to help the ‘poor’ in the sake of the society without thinking that their actions might worsen the situation of the ‘poor’ itself. What they value and choose often differs from those of many economists and professionals. Income matters, but so do other aspects of human well being, such as human dignity and quality of life. And those other factors could be achieved without ‘growth’ in income, just like growth in income would not guarantee and improve prosperity.

 
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