Poverty and Unemployment.docx

Poverty and Unemployment Objectives By the end of the two-hour (2 hours) lecture-discussion, participants will be able to: 1. Define the terms Poverty Unemployment 2. Identify the causes of poverty 3. Briefly describe the types of poverty 4. Discuss the theoretical perspectives on poverty 5. Discuss...

Poverty and Unemployment Objectives By the end of the two-hour (2 hours) lecture-discussion, participants will be able to: 1. Define the terms Poverty Unemployment 2. Identify the causes of poverty 3. Briefly describe the types of poverty 4. Discuss the theoretical perspectives on poverty 5. Discuss the impact of poverty and unemployment on the society and health care. 6. Examine the government's plans to solve poverty and unemployment Introduction Throughout the world, even in the affluent countries, many people are unable to satisfy their basic needs such as food, shelter and clothing and are thereby considered poor. As expected the wants and needs of people vary from one society to another. Since poverty is sometimes a perception of oneself in relation to others, many prefer to define poverty relation to the norms and values of a particular society. The issue of poverty eradication has been on the international agenda for several decades. However, it was only towards the end of the 1980s that a global concern for poverty resurfaced. This was due mainly to pressures from international organisations such as the United Nations Development Programme (UNDP) and United Nations Children's Fund (UNICEF). In addition, there were numerous studies documenting the detrimental economic and social consequences of most structural adjustment programmes (SAP). Definition of Poverty Poverty is the parent of revolution and crime. Aristotle Poverty may be defined as: The lack of sufficient material and cultural resources to sustain a healthy existence (Jary & Jary, 2000) The inability to satisfy basic needs, pronounced deprivation in well-being. The absence of resources necessary to participate and enjoy a culturally acceptable standard of living. It is believed that poverty is caused by and leads to social exclusion and marginalization - it is a vicious cycle. The study of poverty is central to any examination of social inequality, including an analysis of who is poor and the reasons for their poverty. Definition of Poverty Poverty is the lack of basic human needs such as health care, food, clothing and shelter. People are considered living in poverty if their income falls below a certain level or what is called 'the poverty line'. The poverty line is the minimum level of income that will enable a person or persons or families to have an acceptable standard of living. Causes of Poverty Poor planning of Natural Resources: incapable Authorities Unemployment: Lack of jobs and opportunities also Substandard education Economic Situation: unemployment imbalance Large population: improper planning of Human resources Causes of poverty, Debt, lack of education, low income, wars, Natural disaster, unfair trading, cash crops, improper planning A number of other factors have influenced the poverty level in Jamaica. They include: the general level of education disproportionate wealth, gender discrimination power and some would argue - poor social and economic policies. Causes of Poverty Global crises (now: COVID-19 pandemic & the Russian-Ukriane war) are not helping either; reduced employment, low remittances, from families living overseas, migration - both internationally and locally, are causing some serious concerns. The relatively high inflation rate and heavy dependence on imports has not helped either Poverty is normally associated with social and economic policy failures; the relationship of environmental shocks and stresses on poverty rates is however relatively limited in scope. Poverty is one of the most pressing problems affecting developing countries. 1. Absence of social and economic policies that ensure and protect access, quality, equity and equality. 2. Poor choices and decisions (individuals and State) 3. Ascription factors - race, ethnicity, gender and household status. 4. Geographical location (rural, inner-city). 5. Limited human capital 6., Weak social capital 7., Deteriorating economic conditions - redundancies, closures and pull-outs Types of Poverty 1. Absolute or subsistence poverty - refers to the poor who are unable to attain food (in sufficient quantities to satisfy their basic nutritional requirements) and non-food items (quality and amount of food, clothing, shelter deemed necessary for a healthy life). Absolute poverty is also known as subsistence poverty and is therefore linked to maternal deprivation 2. Relative poverty -refers to the deprivation of some people in relation to those who have more. People compare themselves with their colleagues and neighbours. It refers to those who are poor in comparison to other members of the same society. For example, if the majority of people in a country have access to cellular telephones and cars, then the minority who do not have the financial means to acquire these items are said to be the 'relatively' poor. It also depends on the values and standards of living that a particular society sets; those falling below these standards are considered poor. 3. Critical poverty - refers to people who are unable to obtain food necessary for survival. 4. Subjective poverty - is considered a new concept in the field of poverty research. Definitions are based on surveys that use the households' own assessments of the minimum or 'just enough' levels of income or consumption needed by people like them. 5. Chronic poverty - is a type of poverty that is characterised by its permanence or duration. It therefore describes people who remain in poverty for most or all of their lives. 6. Cyclical poverty - describes poverty experienced only during stages of an individual's life cycle, such as during childhood or old age. - 7. Seasonal poverty - refers to people whose income fall below the poverty line only during certain months of the year. Their employment and sources of income may be seasonal. This category is also inclusive of the 'temporarily poor' who suffer an income shortfall for a brief period of time as a result of an exogenous natural disaster such as an earthquake or flood. Categories of the Poor The poor are a very diverse group, but some groups in diverse society have an increased possibility of being poor. These include: 1. women - poverty levels among female-headed households in some countries are high, especially in urban areas. Some reasons for this 'feminization of poverty' include wage discrimination, high and time restrictions due to child- unemployment rearing activities. Poor women are also faced with social problems such as teenage pregnancy, domestic violence and high fertility rate. 2. The physically challenged - these individuals with special needs are at an even greater disadvantage, since there is limited access to jobs, education and long-term health care. The safety nets are inadequate. 3. Indigenous Groups - especially in Guyana and Suriname where the prevalence of poverty, malnutrition and illness is high. 4. Children - those experiencing poverty suffer from lack of proper nutrition, a low quality of education and limited parental care and supervision. If not addressed, this makes it difficult for the child to break the poverty cycle. 5. The elderly - with rising inflation, the value of lifetime savings and pension benefits are depleted. Even with social assistance, it may be insufficient. 6. Small-scale farmers - rural poor are engaged in agriculture. However, they face problems of limited access to land tenure and to markets. 7. Unemployed youths - many unskilled youths face increased barriers to entering the labour market. Those with 'free time' may find themselves involved in drug use, criminal activities, teenage pregnancy and other related social problems. Poverty and Youth Addressing poverty issues faced by youth is important for the following reasons: The capacity to learn, for younger people, is much greater than for older people. Missed opportunities to take advantage of education and skills development, develop positive health practices and make meaningful contribution to society can be very costly to rectify. The development of the youth also affects the development of their children. Research has shown that educated parents are more willing to invest in their children's education and health. Unemployment DEFINITION: The state of not being employed in paid work or self-employed, even though available for such activity. Employment is important for self-esteem and fulfills vital functions such as: Regular pattern of activities and time structure to the day Source of social contacts outside the household Participation in a wider collective purpose Social status and identity. LABOUR FORCE SURVEY 2010 The labour force includes all persons who were in any form of economic activity for one hour or more during the survey week; all persons who had jobs but were absent from work during the survey week; all persons who had no job and were looking for work and all persons who were not looking for work but wanted work and were in a position to accept work during the survey week. The employed labour force is made up of all persons 14 years and over in employment; that is all persons working (whether for their own account or as employees) for at least one hour during the survey week, together with persons who had jobs but were not working during the survey week. Unemployment Every industrial society has some unemployment. Much of it temporary. Some persons entering the work force find jobs readily; some temporarily leave to have children or seek new employment, others due to ill- health and some lack the skills. The economy itself generates unemployment, often called structural unemployment. Jobs disappear as occupations become obsolete, businesses close resulting in forced layoffs and bankruptcies. Reasons Governments Understate Unemployment The unemployed are those persons: 1. Actively "looking for work" together with persons "Wanting" work and "Available" for work. The latter category includes persons who were, during the survey week, actually engaged in home or other duties classified as Economic Activity, but were willing and able to accept work. 2. Many who are unable to find work for which they are qualified settle for lesser employment - should fall in underemployed 3. Changes in the policies help to conceal unemployment such as the youth training scheme- on the job training. Theoretical Perspectives on Poverty Social scientist do not agree on the causes and effects of poverty. Some see it as inevitable, some see it as useful and others see it as detrimental and unjust. Three selected theoretical perspectives on the causes and persistence of poverty: 1. Culture of Poverty 2. Marxist Perspectives 3. Conservative or Functionalist Approach. 1. Culture of Poverty - the underlying idea is that the lifestyle of the poor differs in many respects from that of the non-poor in the society. Similarities have been found in this poverty lifestyle even across different societies. This leads to the development of a subculture, with its own norms and values, that are transmitted from one generation to the next. Oscar Lewis developed the Culture of Poverty in the 1950s. He posits that this concept has the following levels: At the individual level,: the poor tends to experience feelings of marginalization, helplessness and inferiority; a sense of resignation and the desire for immediate gratification; that is, the poor tend to be unable to delay gratification. At the family level, there exists free unions or consensual marriages; high divorce rates; a notable number of female-headed households due to desertion by males. At the community level, the poor usually demonstrate the following: people normally exhibit minimal effective participation and integration in the major institutions. there is non-membership in trade unions and other similar organisations. little use is made of banks, museums, hospitals and other such social services. Lewis concludes that the Culture of Poverty 'encourages' poverty since these aforementioned characteristics act as vehicles to ensure the perpetuation of poverty. 2. Marxist Perspectives - conflict theorists posit results from the failure of the that poverty state to allocate resources equitably. They view poverty from different angles: Marxist Perspectives Labour Market - in industrialised societies where many of the production processes have been automated, there exists an increasing demand for skilled workers The unemployed and underemployed tend not to meet these requirements and are unable to command high wages on the labour market. Hence, they remain in poverty. An alternative perspective is that there is a dual labour market A primary labour market (found in large, profitable companies) with job security, high wages and training opportunities; and A secondary labour market (found in smaller companies) with little job security, low wages and few training opportunities. Women and ethnic minorities, who are concentrated in the secondary labour market take the low paid jobs. Stratification System: this system relates poverty to class. The 'underclass', which consists of retired elderly people, the physically challenged and single- parent families, for example, lack prestige and wealth. Their low position is as a result of their low status. It is because of their low status that opportunities for better-paid employment are limited. Capitalism - It is to the advantage of the owners of production to ensure that poverty exists, as it allows them to maintain the capitalist system and maximise profits. Members of the working class own only their labour, which is sold for a wage. For members whose labour is not in demand, their wages are low. Competition among workers ensures that wage levels remain in check. The state will act in favor of the ruling class and therefore, the governments will do little to alleviate poverty The Functionalist Approach Herbert Gans argues that poverty persists because it is beneficial to certain non-poor and affluent groups in society. He identified that there are certain functions of poverty: 1 In every society there are menial, dirty, hazardous jobs and poverty ensures that there is a pool of low-wage labourers with no choice but to accept these jobs. 2. Poverty ensures that there are continuous employment opportunities for those who serve the such poor, doctors, nurses, social workers, police and others alike. as The Functionalist Approach iii. The poor provides a yardstick against which the 'success' of the non-poor may be measured. Gans claims that the poor are unable to alter their situation and poverty exists to benefit certain non-poor members of society. Effects of Poverty and Unemployment Unemployment can wreak havoc on lives and families. If it continues for a long time it may result in resignation and adjustment. It has been linked to ill-health, premature death, attempted and actual suicide, marriage breakdown, child battering and racial conflicts. A subculture of despair can emerge, sometimes linked to the development of an underclass. Generally, unemployment affects those with the least resources most. Effects of Poverty and Unemployment The effects of poverty are serious. Children who grow up in poverty suffer more persistent, frequent and severe health problems than do children who grow up under better financial circumstances. Many infants born into poverty have a low birth weight, which is associated with many preventable mental and physical disabilities. Not only are these poor infants more likely to be irritable or sickly, they are also more likely to die before their first birthday. Children raised in poverty tend to miss school more often because of illness. These children also have a much higher rate of accidents than do other children and they are twice as likely to have impaired vision and hearing, iron deficiency anemia and higher than normal levels of lead in the blood, which can impair brain function. Levels of stress in the family have also been shown to correlate with economic circumstances. Studies during economic recessions indicate that job loss and subsequent poverty are associated with violence in families, including child and elder abuse. Poor families experience much more stress than middle-class families. Parents who experience hard economic times may become excessively punitive and erratic, issuing demands backed by insults, threats and corporal punishment. The result of both unemployment and poverty is inequality and if these issues are not addressed quickly, there will be a society filled with frustrated individuals willing to do anything to survive, including crime and violence, which further impact health care and the social services. Poverty Alleviation Interventions Between 1886 and 1981 - Jamaica, the welfare state, indulged in three main forms of public spending that targeted the poor. There were: public assistance programmes; general food subsidies and school feeding. These programmes incurred high costs to the central government and were not sustainable; they also encouraged dependence. In 1981, the IMF introduced the Structural Adjustment Programme (SAP). This meant Government's expenditure on social benefits had to be reduced. In 1984, the Food Stamp Programme was introduced. This focused on pregnant and lactating women, children, the elderly, the handicapped and large families. In 1991, the Micro Investment Development Agency (MIDA) was launched to facilitate income generation initiatives by providing credit to the poor for micro- enterprise creation. This was followed by the Social and Economic Support Programme (SESP) in 1993; it offered (1) training and credit for the youths; (2) financial assistance to students; (3) employment opportunities via infrastructural development in communities The two year period 1995 - 1996 saw the inception of ten programmes. Five implemented in 1995 and five in 1996. The five programmes that came on stream in 1995 were: 1. Skills 2000 2. Secondary School Fee Assistance Programme (SSAFP) 3. Operation Pride 4. Integrated Community Development Programme 5. Special Training and Employment Programme (STEP) These provided training and skills assistance, education, formal housing as opposed to squatter settlements and community development assistance. In 1996, the other five programmes were introduced. These were: 1. Jamaica Drugs for the Elderly Programme (JADEP) 2. Bauxite Community Development Programme 3. Strategy to Rehabilitate Inner-City Communities through Viable Enterprises (STRIVE) 4. Jamaica Social Investment Fund (JSIF) 5. National Poverty Eradication Programme (NPEP) The first four initiatives targeted, the elderly, bauxite communities, inner city communities and infrastructure in quartile four communities. In 2000, a closer look was taken at the welfare of the poverty reduction initiatives of the Government. The Social Safety Net Assessment and Review Board looked at six areas and developed a reform programme for assistance to the poor. They evaluated: institutional and administrative framework; life cycle needs; persons with disabilities; poor housing and homelessness; drug abuse; persons living with HIV or AIDS. This SSNR programme is ongoing and is coordinated by the PIOJ. This led them to consolidate the Outdoor Poor Relief, the Food Stamp programme and Old Age or Incapacity Allowances to the Programme for Advancement through Health and Education, which is intended to improve the targeting mechanisms used to identify the poorest segments of the population, to increase the effectiveness of welfare and related programmes and to streamline the delivery of services. The principal objective of PATH is to improve human capital development by increasing the access of children in poor families to education thereby breaking the cycle of inter-generational poverty. It also seeks to improve the health status, productivity and longevity of the poor. Solving Poverty Solving poverty requires the following: Meeting basic needs or reducing social inequalities – access to social services Community empowerment - building human and social capital (sustainable livelihoods) Social and economic policy intervention Adequate measurement and monitoring Sustained economic growth and productive employment Reducing murder rate and anti-social behaviour. Conclusion The causes of poverty and its attendant consequences are not simple issues requiring single-pronged approaches to develop policies. Rather, these issues are complex and require inputs from all sectors, especially from the grass- root level, since these are the people most affected and who also stand to gain the most.