Fighting poverty: Ramesh Shrestha

In our daily conversation poverty directly translates to lack of money. But in reality, poverty has a complicated relationship with human civilisation since time immemorial - have and have not. It has a direct link with a country's governance and by default is linked to democracy, human rights, equality & equity and economic policy, all the issues that politicians lament about. Poverty is not associated with fate which many people believed in ancient times. Poverty is a political choice.

The World Bank (WB) narrowly defines poverty as a condition where anyone living below the international poverty line, which is currently set at $1.90 per person per day. But when we review people's lives the idea of poverty goes way beyond money; it is not just an issue of two meals a day. One may even ask what is the logic behind the WB's authority to set the monetary criteria for poverty? In reality poverty is a violation of economic rights usually due to corrupt governance and inadequate social policy. The United Nations defines poverty more inclusively as "a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also access to services."

Based on the narrow concept of poverty defined by the WB many mid- and low-income countries have made substantial progress in reducing levels of poverty in recent decades. According to the United Nations (UN) between 1990 to 2014, more than one billion people moved out of poverty line; prevalence of poverty was reduced from a global average of 37.8 percent in 1990 to a global average of 11.2 percent by 2014. In 2015 nearly 10 percent of the global population (740 million) were living below the poverty line. It is estimated that 71 million people reverted back to poverty as a result of COVID crisis which impacted income and access to basic necessities. According to a UN report, based on current projection some 530 million people may still be living in poverty by 2030, the year the UN aims to achieve sustainable development. goal

Pivotal role of the UN

The UN had declared 17 October as the International Day of Poverty Eradication through the UN Resolution 47/196 adopted on 22 December 1992. This day was chosen in memory of people's demonstration to honour the victims of extreme poverty, hunger and violence in Paris in 1987 where the Universal Declaration of Human Rights was signed on 17 October 1948. In 1995, the World Summit for Social Development, poverty eradication was identified as one the three core issues. In 2015 it was declared Goal #1 in UN's Sustainable Development Goal target 'ending poverty in all its forms everywhere' to be achieved by 2030.

It is unnatural

There is enough land, natural and financial resources and well-meaning people in all countries in the world. Hence, in this world of plenty, poverty seems unnatural. Poverty is the result of immoral legal, social and economic policy unduly influenced by perverted politics everywhere, without exception. As a result, poverty continued to be a universal phenomenon with few exceptions. There is just a difference in the depth of poverty, which in fancy academic terms we call relative poverty, absolute poverty and chronic poverty and many other names.

There are numerous graduate, post graduate and doctoral thesis written on issues of poverty reduction in many reputed universities. Academics have carefully dissected the causes of poverty in all countries in all continents with utmost care like a neurosurgeon on an operating table. There are numerous recommendations submitted to the concerned authorities everywhere. There are also many country reports on the situation of poverty and recommendations published by the World Bank and in reports from other studies funded by several bilateral institutions. The fact is that there is enough data and information on why poverty still exists. In essence those who need to know already know who are poor & where they reside. The basic problem is that countries are not mobilising required resources in the target pockets of poverty. It really is a political choice to mobilise resources where needed.

In 1987 a publication entitled 'Adjustment with Human Face' based on ten country experiences in poverty alleviation attempts of UNICEF and other partners made a global headline. This study highlighted the extent of the problem and unintended negative consequences of monetary policies adopted, especially in low- and mid-income countries. The idea of a 'poverty reduction strategy' with a variety of interventions has spread like a wildfire since the last decades of 20th century. Since then, it may not be an exaggeration to suggest that studies on poverty have become an academic business in itself with every funding agency wanting their own study conducted through their favourite NGO. One West African country approached UNICEF to assist in establishing a very catchy 'Poverty Research Institute', which was responded with thanks but no.

Armed conflicts and poverty

Poverty is further complicated by armed conflicts which has become a permanent fixture of human civilisation. Collectively, according to Médecins Sans Frontières, ICRC and UNDP, in the Middle East and North Africa alone there are 45 ongoing armed conflicts. In Asia there are 19 localised armed conflicts as in Myanmar, Afghanistan, Iraq, Pakistan, the Philippines, India-China border region, etc. In Africa, there are 35 active armed conflicts; in Europe and Latin America there are 7 and 6 armed conflicts respectively. In all these situations the high- and mid-income families are protected with their wealth and connections; it is the under-privileged people in low-income families who are adversely affected, making a bad situation worse.

Capitalism and poverty

Ronald Regan's famous claim during his inaugural speech on 20 January 1981 'Government is not the solution to our problem; government is the problem' has given a new strength to capitalism and the private sector. Since the USA is the world leader, policies adopted in the USA usually become the model for the rest of the world, which in this case is support to the private sector, which is also being pushed globally by the World Bank and the IMF as an economic reform strategy. Capitalism is all about wealth creation, efficiency and competition, but not wealth distribution. With one global rule book the entire world was made to believe that capitalism is the only economic policy in the world, including in centralised governance system as in Vietnam and China. Fortunately, these two countries have not shredded their social policy embedded as the backbone of communism which helped them move millions of people out of poverty within a short time.

There are millions around the world who are unable to afford treatment for illnesses, there are other millions who couldn't send their children to school as they need their labour, there are still millions of individuals without access to fresh water & sanitation, there are millions of youths underemployed, and so on. There are hundreds of thousands of migrant labourers in the Middle East and other millions in agricultural farms in North America working in slave-like conditions. Are they not poor?

It is time to reintroduce with vigour the UN's definition of poverty to the global audience.

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