Tuesday, August 29, 2017

Latin America's Poverty

“There are 33 million rural dwellers in Latin America who are still living in extreme poverty and can’t afford a good diet, clothes or education, and we are not going to help them move out of poverty if we use the same strategies that worked 20 years ago,” FAO regional representative Julio Berdegué told IPS. “There is a strong deceleration in the reduction of poverty, five times slower than before, only just 0.2 per cent per year,” noted with concern Berdegué, who attributed the phenomenon, among other causes, to a regional economic slowdown which has had an impact on employment and incomes.

While the proportion of rural extreme poor decreased by 1 percentage point a year between 1997 and 2007, the rate of decrease was only 0.2 per cent a year between 2007 and 2014.

“The strong, sustainable, solid solution to rural poverty is economic development in rural areas. Quality jobs, better wages: that is the best strategy to reduce rural poverty,” said Berdegué. “Social policies compensate for the effects of economic development, but what we want is for people to stop being poor because they have better jobs and not because of good social programmes…that is a second best option.” 

There is also the issue of rural labour markets “which are in general in a state of true disaster, with high levels of informality and very low female participation rates, among them young women who have received 10 to 12 years of schooling and have no job offers in line with this human capital they have acquired.”

“Many of these 33 million poor are poor because they are first victims of inequality. A rural indigenous woman, in a less developed area, is victim of more than four inequalities: gender, ethnicity, rural and territorial. Besides, economic inequality, on grounds of social class,” Berdegué said.
“Good quality employment, better wages, that is the best strategy for reducing rural poverty. And we have an accumulation of inequalities that, if we do not solve them, it will be very hard to return to the rate of one percentage point of reduction of rural extreme poverty,” he concluded.

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