Sunday, October 19, 2008

POVERTY, WHAT IS IT?

INTRODUCTION
In an attempt to explore the question “Poverty, what is it?” This paper will be divided into four major headings, that is, theoretical literature review, empirical literature review, Tanzania policy on poverty and the conclusion.

Under theoretical literature review, this paper will examine the meaning of poverty as given by various authorities, types of poverty, historical background of poverty, traditional attitudes toward poverty, causes of poverty and effect of poverty. Under empirical literature review, the paper will explore the question by examining poverty in developing countries, poverty in developed countries, poverty in developing countries, poverty in Tanzania and the most recent world Bank report on poverty.

The paper will then further explore the question by trying to look at Tanzania policy on poverty as stipulated in the National strategy for Growth and Reduction of poverty (NSGRP).

Finally, the paper will give out the conclusion by offering the personal opinions and recommendations.

2. THEORITICAL LITERATURE REVIEW.
2.1 Definition of Poverty.
According to Encyclopedia Britanica, Poverty is a condition that exists when people lack the means to satisfy their basic needs. The basic needs may constitute (i) those necessary for survival and (ii) those reflecting the prevailing standard of living in the community. The first one covers people who are near the borderline of starvation or death from exposure whereas the second one would extend to people whose nutrition, housing and clothing, though adequate to preserve life, do not measure up to those of the population as a whole.
According to the World Bank, poverty is a state of living on less than $ 2, a day. Poverty can also represent a lack of opportunity and empowerment, and bad quality of life in general.
Wikipedia see poverty as a condition in which a person or community is deprived of or lacks the essentials for a minimum standard of living of well being and life.
Thomas J. Corbett, writing for Encarta encyclopedia 2004, saw poverty as a condition of having insufficient resources or income. In its extreme form, poverty is a lack of basic human needs, such as adequate and nutrition food, clothing, housing, clean water and health services.

2.2. TYPES OF POVERTY.
2.2.1. Cyclical poverty.
This may be widespread throughout the population with limited duration. In developing continues, it may be caused by temporary lack of food caused by natural phenomena or poor agricultural planning. In developed countries, the level of life is related to fluctuations in the ability of business, industry and government to sustain high levels of employment and adequate wages.

2.2.2. Collective Poverty.
This involves relatively permanent insufficiency of means to secure basic needs. It may be either generalized collective poverty as it is in developing countries or concentrated collective poverty as it is in developed countries. These types of poverty can be transmitted from generation to generation, fathers passing their poverty on to their sons hence creating cycle of poverty.

2.2.3. Case Poverty.
This refers to the inability of an individual or family to secure basic needs even in social surrounding; a collection known as relative poverty. In developing countries, relative poverty often is measured as having a family income less than one-half of the median income for that country. Absolute poverty or destitution is extreme poverty which threatens people’s health or lives. In developing country it means having a household income of less than US $ 1 per day.


2.3 HISTORICAL BACKGROUND OF POVERTY
Poverty has been a concern in societies since before the beginning of recorded history. According to sociologists and anthropologists, social stratification was a defining characteristics of the earliest civilization. The rulers and other powerful or wealthy members of these civilization frequently mistreated the poor, sometimes subjecting them to hard labour or enslaving them.
Babylonian, Talmudic and early Christians, codified relationships between the poor and non poor into law, as was done in Babylonia, that is, Hammurabi. The present-day welfare systems of the United Kingdom, the United states, and Canada evolved from a 17th Century British legal act known commonly as the poor laws.
The rise of civilizations also led to stratification among nations and territories around the globe. Powerful and wealth nations maintained and increased their power and wealth and built empires by using the labour and resources of less powerful regions. This dynamic manifested itself more during colonial era. Colonizers variously sought to acquire new resources and productive land, to spread religion, to find religious freedom, and to gain positions against rival nations in political and military confrontations.
The unequal distribution of wealth and resources generated in the colonial period has become even more pronounced in the postindustrial or information age. Members of societies with access to good educational opportunities and advanced technology profit more for the emerging global economy than do members of less developed societies.

2.4 TRADITIONAL ATTITUDES TOWARDS POVERTY
In Scotland the Rev. Thomas Chalmers expressed the belief of many when he declared in 1823 that the “four fountain of charity” were ”frozen or locked up by the hands of legislation". These fountains were the frugality of the poor themselves, the kindness of relatives, the sympathy of the wealthy for the poor and the sympathy of the poor for one another.
Laissez-faire theory added economic justifications to the attitudes of those who favoured only minimal assistance. It proclaimed that if progress were to occur, economic life would be regulated only by the natural market processes of supply and demand. Adam Smith pointed out in 1776 that the propertied classes must ultimately pay wages high enough to assure the subsistence and reproduction of the labour force. Failure to do this would lead to the downfall of the system.
Thomas Malthus’ Essay on the Principle of populations, published in 1798, furthered this general attitude. Malthus contended that since an increase of a population’s food supply is more than consumed by the consequent increase in population, the only antidote was the limitation of population by war, diseases and famine later. Economists took up Malthusian ideas and declared flatly that attempts to interfere with “natural” processes by helping the poor could only lead to perpetuating destitution by maintaining them in too large numbers.
Much of late 18th and 19th century Protestant theology was dominated by the concept of predestination. Material success and the accumulation of wealth were indications that one was favoured in God’s eyes.
In 19th century Social Darwinism in Biological evolution believed that unfit individuals and inadaptable species died or became extinct leading to vigorous species and the eventual emergence of man.
English sociologist, Herbert Spencer also coined the phase “survival of the fittest”, unregulated competition among men had led to social and economic progress and the rise of the most able to position of power and eminence.

2.5. CAUSES OF POVERTY
Poverty has many causes, some of them very basic. In most cases, the causes and effect of poverty interact, so that what makes people poor also creates conditions that keep them poor. Primary factors that may lead to poverty include.

2.5.1 Environmental degradation
In many parts of the world, environmental degradation – the deterioration of the natural environmental, including the atmosphere, bodies of water, soil and forests is an important cause of poverty. Environmental problems have led to shortage of food, clear water, materials for shelter and other essential resources. As forests, land, air and water are degraded, people who live directly off these natural resources suffer most from the effects.

2.5.2. Lack of appropriate education and technology.
Illiteracy and lack of education and poor technology are common in poor Countries. Governments of developing countries often cannot afford to provide for good public schools, especially in rural areas. Without education, most people cannot find income-generating work. Poor people also often forego schooling in order concentrate on making a minimal living. They also do not comprehend rapid changing technology in order to cope up with global trend.

2.5.3. Lifestyle linked conditions
The lifestyle linked conditions may include unemployment, underemployment, migration, displacement and social enmity.
In developing countries, unemployment rates may be very high. When people do not have work, they do not make any money; thus, high unemployment leads to poverty. Availability of employment also tends to fluctuate, particularly agriculturally – related jobs.
Migration, displacement and social enmity is a common phenomenon in war – torn region of the third world. Displacement has also been witnessed in urban centers particularly in the slums for the purpose of development by municipal councils.

2.5.4. Over population.
Over population, the situation of having large numbers of people with too few resources and too little space is closely associated with poverty. In countries where people live primarily by means of simple farming, gardening , herding, hunting and gathering, even large areas of land can support only small numbers of people because these labour-intensive subsistence activities produce only small amount of food.

2.5.5. Global Distribution of Resources.
Many experts agree that the legacy of colonialism accounts for much of the unequal distribution of resources in the world economy. Many developing countries lack essential raw materials and the knowledge and skills gained through formal education and training. They often lack the infrastructure provided by for example, transportation systems and power generating facilities. Because these things are necessary for the development of industry, developing countries generally must rely on trade within developed countries for manufactured goods, but they cannot afford much.

2.5.6. Individual responsibility and laziness.
Some people believe that the poor intentionally behave in ways that cause or perpetuate their poverty. For instance, if people voluntarily choose to use drugs and thus leads them to poverty, it can be argued that they are to blame for their situation. Idleness and failure to engage in any meaningful economic activity leads to shire poverty.

2.5.7 Cultural beliefs and practices.
In most developing countries people have failed to move from their traditional form of production to modern form of production. The use of hoes, axe and slices is still common in agricultural sector with little mechanization hence production remain to be low.

2.5.8. Ill health.
The ill health due to lack of medical facilities and practitioners in developing countries, many people experience high rates of infectious diseases. Inadequate shelter or housing creates conditions that promote disease. Without decent protection, many of the poor are exposed to severe and dangerous weather as well as bacteria and viruses carried by other people and animals hence rendering them more poor.


2.5.9. Poor governance.
Most of the political leaders in developing countries engage in activities which either cause or perpetuate poverty. Such practices include corruptions, lack of transparency and accountability. Some leaders accepted multiparty system as a matter of principle but not as a matter to be practiced. And in the course of this, the ruling party fail to work is partnership with opposition parties hence experiencing political monopoly and discrimination. This factor leads to misallocation of resources.

2.5.10. Micro-economic structures.
Micro-economic condition may be a cause of poverty in most developing countries. Such structures may include infrastructure such as roads, railways, electricity ad water; social services such as medical facilities, schools and police posts; Communication which may include telephones, e-mail, telex, fax or post offices; Polices which fail to be implemented; institutions such as ministries and departments and finally market whether perfect or imperfect.

2.5.11. Other causes
Other causes of poverty are bureaucratic practices which encourage selfishness, corruption ad favouritism; lack of capital; foreign debts, and political conflicts.

2.6 . EFFECTS OF POVERTY.
Poverty has wide-ranging and often devastating effects. These effects may include:-

2.6.1. Malnutrition and starvation.
In developing countries, the poorest people cannot obtain adequate calories to develop or maintain their appropriate body weight. Children and adult a like may suffer from protein-energy malnutrition, severe vitamin and mineral deficiencies. Prolonged malnutrition can lead to starvation and death.

2.6.2. Infectious diseases and exposure to the elements.
In most developing countries inadequate shelter or housing creates conditions that promote diseases. without decent protection many of the poor are exposed to severe and dangerous weather as well as to bacteria and viruses carried by other people and animals. The poor are also more likely to become infected with diseases carried by insects or rodents. Developing countries also have shortages of doctors.

2.6.3. Mental illness and drug dependence.
The most common disorders associated with poverty are depression and anxiety disorders. Many poor people develop low self-esteem and feelings of worthlessness. Because the poor experience high rates of severe mental illness, they also have high rates of suicide.
Mentally ill and drug-dependent people tend to have trouble holding steady jobs and maintaining relationships, causing them to fall into poverty.

2.6.4. Crime and violence.
Anger, desperation, and the need for money for food, shelter and other necessities may all contribute to criminal behavior among the poor. Other problems associated with poverty are often linked to crime. For example, to obtain money some poor people commit the crime of selling illegal drugs; others may steal to obtain the money to buy drugs on which they are dependant.

2.6.5. Long term effects.
Poor people are at disadvantage in things such as education. Studies have shown that people who grow up in persistently poor households experience more difficulties throughout their lives than those raised in households that are above the poverty level. In many cases, those who had poor parents are poor themselves, earning lower than average incomes hence the vicious circle of poverty.


3. IMPERICAL LITERATURE REVIEW

3.1 Poverty in Developing countries
According to Thomas J. Corbett many developing nations experience severe and widespread poverty, which often leads to diseases, epidemics, starvation, and deaths. As recently as 1998, almost one person in four (23 percent) residing in developing countries lived on less than $ 1 a day.
Africa includes some of the poorest countries in the world. During the late 20th century, desertification contributed to famines in a number of African nations, including Somalia, Ethiopia and Mali. Political instability and wars in many sub-Saharan countries have also contributed to poverty.
In 1998 Asia accounted for about two-thirds of the world’s 1.2 billion poorest people. These people lived on less than $ 1 per day. China has very large numbers of poor due to the great size of its rural population. South east Asia countries as Vietnam, the Philippines and Indonesia also rank among the world’s poorest.
It is estimated that slightly more than 60 million people in Latin America lived in extreme poverty in 1998. The poorest people are commonly, Native American, people of African ancestry and Mestizos (persons of mixed Native American and European ancestry). Political instability has contributed to poverty in many Latin American Countries, including Chile, Cuba, Nicaragua Panama and Haiti. Brazil has the greatest number of people living in poverty in all of Latin America.
Many countries formerly part of the communist bloc, including those of the former soviet Union, have relatively high level of poverty. Since the fall of communism in 1989, poverty in much of Eastern Europe and Central, Asia has increased.

3.2. POVERTY IN DEVELOPED COUNTRIES.
Corbett writes, in 2001 census Bureau reported about 33 million residents living in poverty in the United States, or about 12 per cent of the total population. Higher percentages of people are poor in southern and western part of the country than North east and mid west.
The great ethnic and racial diversity of countries such as Australia, Canada and the United Kingdom Contribute to high poverty rates because minority groups tend to have low social and economic status. The Scandinavian countries, which have the lowest poverty rates of all developed countries, have fairly homogeneous population.
Differences in history and scope of social welfare systems among developed countries also may contribute to differences in their poverty rates.

3.3. POVERTY IN TANZANIA
This can be divided into the following categories.

3.3.1. INCOME POVERTY
Vice President’s office (2005) reporting on National strategy for growth and Reduction of Poverty (NSGRP),writes, according to the House hold Budget, Survey (HBS) of 200/01 the proportion of the population below the national food poverty line is 18.7 per cent and that below the national basic needs poverty line is 35.7 percent.

3.3.1.1. Geographical disparities
The authors report that the indicators of income poverty, human capabilities, survival and nutrition and the human development Index (HDI), clearly shows growing rural-urban divide. There are also disparities across and within regions and districts in poverty status. Disparities are explained by the Patten in the distribution of population, endowment in natural resources, climatic conditions as well as in the distribution of infrastructure such as transport, schools and health facilities.

3.3.1.2. Perspective of agriculture and other productive and service sectors
Agriculture is the lead sector, accounting for 45 percent of GPD and about 60 percent of export earnings in the past three years. It is the source of food and raw materials for industries. It also provides to 82 percent of the population. The constraints to rural growth are largely related to those in the agricultural sector, broadly defined to include livestock and bee-keeping.

The industrial sector grew by 8.6 percent in 2003 compared to 8 per cent in 2002 (Economic survey, 2004); but the increase has not been uniform across industrial establishments.
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3.3.1.3. Urban poverty, formal and informal sectors.
Urban poverty is evident in households with low and unreliable income, the unemployed, urban vulnerable groups and those in the informal sector. Trade liberalization has prompted an influx into urban areas of a vast number of petty traders mainly youth aged 20 -29 with primary level of education and no formal training. The informal sector also includes men and women engaged in sand mining, quarrying and lime making to support the growing construction industry.

3.3.1.4. Infrastructure, science and technology
Levels and quality of transport and communications and energy service are generally poor and this constrains growth. Rural areas lack road network and rural telecommunications which in turn limit creation of new opportunities for markets, employment and trade (domestic and foreign).
Problems of access to information and Communication Technologies (ICTS) include low literacy rates, low incomes and limited number of service providers. The recent rise in the use of (CTS including mobile telephone is still dominantly urban-oriented

3.3.2. Employment status.
Unemployment stands at 2.3. Million equivalent to 12.9 per cent of the labour force. Employment – to – population ratio is 76 per cent nationally. The ratio is lower in urban areas (58 per cent) than in rural areas (81 per cent). Unemployment is worse among the youth, including the educated youth. Employment opportunities for people with disabilities are limited and special support for them in the work place is frequently lacking.

3.3.3. NON – INCOME POVERTY

3.3.3.1. Education and illiteracy
Enrollment rate in primary schools reached 106.3 per cent in 2004 and Net Enrolment rate (NER) reached 90.5 per cent in the same year. But the pace of transition to secondary schools is low, despite the growth of private secondary schools.
Illiteracy remains high. About 28.6 per cent Tanzanians can not read ad write in any language. There is more illiteracy among women (36 per cent) than man (20.4 per cent).

3.3.3.2. Health services.
The 1990s health services shows successes in immunizations coverage of children, in TB treatment and in the accessibility to contraceptive. There have been steady improvements in vaccination rates since 2000, with an impressive coverage of 90 per cent by 2002, thus surpassing PRS targets.

3.3.3.3. Survival and nutrition.
No substantial progress was made in the reduction of infant and under – five mortality and maternal mortality.
As for nutrition, Tanzania has identified four nutritional disorders as being of public health concern; (i) Protein energy malnutrition (PEM) (ii) Nutritional anaemia (iii) Iodine deficiency disorders (IDD) and (iv)Vitamin A deficiency (VAD). Other nutritional disorders include obesity; chronic diet related non – communicable diseases and deficiencies of some vitamins and minerals.

3.3.3.4. Hiv and aids.
An increase in HIV and AIDS prevalence, over the last decade has further aggravated the health status by eroding the Human Development Index (HDI) and future prospects of Tanzanians. It has therefore undermined the foundations for development and attainment of the Millennium Development Goals and national target.

3.3.3.5. Water and environmental health.
Improved rural water supply coverage has increased to 53 per cent in June 2003. About 47 percent of rural households still use unprotected sources of drinking water. Long distance to source of drinking water in rural areas entail heavy work load on woman and children. Majority of rural households have latrines, but they lack proper hygienic use and maintenance.

Urban water supply coverage increased to 73 percent in June 2002 especially in unplanned urban settlements.
3.3.4. Vulnerability.
According to Tanzania Participatory Poverty assessment (TZ PPA) (2002/03) and Policy and service satisfaction survey (PSSS), impoverishment are grouped into six categories, namely economic, environmental, governance, socio – cultural, health and life cycle factors. Respondents frequently referred to wrong policies and effects on environment, bad governance and macro economy as the cause of poverty.

3.3.5. Cross-cutting issues.
Cross-cutting issues relate to the factors that cut across sectors and social groups (often) negatively impacting on income and non-income poverty. Such factors include imbalance in gender relations, environmental issues and HIV and AIDS.

3.4. THE WORLD BANK GROUP REPORT ON POVERTY (SEPTEMBER 2007).
* About 1 billion people – one fifth of the world’s population – live on less than $ 1 a day. Poverty incidence has decreased from 29 percent of global population in1990 to 18 per cent in 2004.
* At current trends, the poverty millennium Development Goal (MDG) of reducing extreme poverty by 50 per cent from its 1990 level by 2015 will be achieved at global level, 12 percent of the population in developing countries will be $ 1 a day or less in 2015.
* The decline in poverty is highly uneven across regions. In East Asia and the Pacific, by 2015 the percentage of people living on $1 a day will drop than 3 per cent. However a still significant 15 percent share will be below the $ 2 a day poverty line indicator. At the other extreme is Sub-Saharan Africa is projected to have a $ 1 a day poverty rate of 36 percent in 2015.

4. POLICY ON POVERTY IN TANZANIA.
The Government is determined to stay the course of economic and social reforms and maintain improved macroeconomic stability. In the course of the National strategy for Growth and Reduction of poverty (NSGRP), real Gross Domestic Product (GDP) is expected to reach the average growth rate of 6 – 8 per cent per annum between 2005 /06 and 2009/10 consistent with the aspiration of vision 2025.

4.1POVERTY ALLEVIATION STRATEGY
According to the National strategy for growth and reduction of poverty (NSGRP) (2005). Poverty would be reduced by applying the following strategies (i) growth and Reduction of income poverty (ii) improvement of quality of life and social well being (iii) governance and accountability .

4.1.1Growth and Reduction of income poverty
Poverty reduction requires sustained high growth rate of GDP of at least 6-8 percent per annum over the next decade.
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4.1.2 Improvement of quality of life and social well being.
The Government recognizes the central role of social service sectors in achieving the goal of improving quality of life ad social well-being.

4.1.3 Governance and accountability.
The NSGRP aims at achieving four broad outcomes.

· Good governance and the rule of law are ensured
· Leaders and public servants are accountable to the people.

· Democracy, political and social to tolerance are deepened and
· Peace, political stability, national unity and social cohesion are cultivated and sustained.

4.2 IMPLEMENTATION ARRANGEMENT
The outcome-based approach adopted in NSGRP bring too the fore issues of cross-section collaboration, inter-linkages and strategies in achieving priority outcomes. The key local actions that will implement the strategy include central government ministries and LGAs, Independents and agencies (MDAs), Private sector, Civil society organization (CSO) and communities. Parliament will play an oversight role over the government in the implementation process. Likewise, the Development Partners (DP) will play a supportive role in the implementation of NSGRP.
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4.3 MONITORING AND EVALUATION OF THE STRATEGY
Evaluation will be done at three levels. First, Internal evaluation will continue through the production of the poverty and human Development Reports (PHDR) and the Public expenditure Review (PER) Process. Second, additional space will be created for on – going evaluation mechanisms through Participatory Poverty Assessments, particularly of the reform programmers. Third, a comprehensive review, informed by annual progress reports produced under national consultative processes, will take place at the end of the NSGRP period in 2010.

5. CONCLUSION:
The war against poverty requires collective effort from various organization which support antipoverty programs in developing countries. Such organization may include (1) International government organizations, such as UN (2) Aid agencies run by developed countries (3) Non governmental organizations (NGOs) and (4) Private development banks.
Through there are already antipoverty programs from the above mentioned organization in Tanzania but there is need to change the attitude of people on poverty.
The developing countries, including Tanzania, need to develop the attitude that “we can change our own situation. The situation towards our problem is within our hand”. With this kind of attitude, we shall reduce the dependency on foreign aids and grants.
Finally, the success, of various antipoverty programs in Tanzania also lies in good governance and accountability as it is put by National strategy for growth and reduction of poverty (NSGRP). The implementation, monitoring and evaluations of such strategy should also be followed strictly.


REFFERENCE:-

Burkey, S (1988), People first: “A guide to self-reliant participatory rural development,” Zed Books, London, chap 1 and 2.

Corbett, J (2004), Poverty Encerta wikipedia.

The United Republic of Tanzania (2005) National strategy for Growth and Reduction of Poverty (NSGRP), Dar es Salaam.

Encyclopedia Bretanica (1986).

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