Friday 24 October 2008

POVERTY WHAT IS IT?

1.0 INTRODUCTION
This paper examines the issue of poverty globally and in the context of developing countries, taking Tanzania as an example. Also this paper will discuss various classifications of poverty in terms of different levels and types as done by International Organizations responsible for global poverty eradication. Overview of factors contributing to poverty will be discussed and policies and strategies for poverty alleviation in Tanzania. Challenges and weakness on the war to alleviate poverty in Tanzania and what have been achieved so far. This paper will also provide suggestions on the best approach to the solution to this human catastrophic problem of our time. [1]

Phil Bartle (2007) stated that poverty as a social problem is deeply embedded wound that permeates every dimension of culture and society. It includes sustained low levels of income for members of the community. It included a lack of access to services like education, markets, health care, lack of decision making ability, and lack of communal facilities like water, sanitation, roads, transportation, and communication.

Poverty is what we hear and see in our daily life in every place we visit or reading newspaper or listening to radio news bulletin. We find street children begging for few coins from motorists in Dar es salaam and other cities, women walking long distances in search of water in urban areas and rural areas, reading an article in daily news paper on a man stabbed to death by his neighbor after failure to pay a loan of TZS 250 only!, and suicides committed due to failure to fulfill family responsibilities. All these reflect the level of poverty within our communities.

Further, Dr. Phil Bartle (2007) suggests that poverty can only be eradicated after understanding factors which contribute to the social problem of poverty. Poverty as a social problem calls for a social solution. That solution is the clear, conscious and deliberate removal of the factors. We should note that factors and causes are not quite the same thing. A “cause” can be seen as something that contribute to the origin of a problem like poverty, while a “factor” can be seen as something that contributes to its continuation after it already exist[2].

What we observe, experience and see as poverty in our daily life are just symptoms of poverty which we cannot alleviate them without fighting factors which are responsible for their occurrences. For example providing food to the victims of hunger in the community is considered as merely alleviating symptoms of poverty in the short run. It is not a durable solution. But providing technology adaptation on irrigation farming so that people do not depend on rainfall on farming is fighting against the factor of poverty known as ignorance.




2.0 THEORETICAL REVIEW
2.1 Definition
Poverty has been defined in different ways depending on culture, social economic environment. Lack of money can be referred as poverty but in reality money is a measure of wealth and lack of it is lack of wealth and can not be referred as a state of poverty. In other societies having many wives and children is a symbol of wealth and lack of it is symbol of poverty. All these are not social problems of poverty.
English free dictionary (2007), defined poverty as a state of being poor; state of being inferior, poor quality. The quality or state of being poor or indigent; want or scarcity of means of subsistence; indigence; need. Any deficiency of elements or resources that are needed or desired, or that constitute richness; as, poverty of soil; poverty of the blood; poverty of ideas[3]
Wikipedia free encyclopedia define poverty as the condition in which a person or community is deprived of, and or lacks the essentials for a minimum standard of a well-being and life. These essentials may be material resources such as safe drinking water, food, and shelter, or they may be social resources such as access to information, education, health care, social status, political power, or the opportunity to develop meaningful connection with other people in the society[4].
World Bank defines poverty as hunger, lack of shelter, being sick and unable to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not a job, is fear of the future, living one day at a time. Poverty is loosing a child due to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom.
Poverty has many faces changing from place to place and across time and has been described in many ways. It is a situation people want to escape as a call of action-for the poor and the wealth alike-a call to change the world so that many more may have enough to eat, adequate shelter, access to education and health, protection from violence, and a voice in what happens in their communities[5].

2.2 Classification of poverty
a) Income poverty:
I. UNDP (2000)
UNDP classified income poverty into two categories: extreme and overall.
Ø Extreme poverty or absolute poverty: lack of income necessary to satisfy basic food needs-usually defined on the basis of minimum calories requirements.
Ø Overall poverty or relative poverty: Lack of income necessary to satisfy essential non- food needs-such as for clothing, energy and shelter-as well as food needs


II. World Bank
World bank also classify poverty in terms of income which is subdivided into extreme poverty and moderate poverty. This involves social economic growth which is elaborated or indicated by per capital income and GDP growth of a certain community.
i. Extreme poverty:
These are people living on less than US$ 1 per person, per day.
ii. Moderate poverty:
These are people living on less than $2 a day. It has been estimated that in 2001, 1.1 billion people had consumption levels below $1 a day and 2.7 billion lived on less than $2 a day. The proportion of the developing world's population living in extreme economic poverty has fallen from 28 percent in 1990 to 21 percent in 2001. Much of the improvement has occurred in East and South Asia. In Sub-Saharan Africa GDP/capita shrank with 14 percent and extreme poverty increased from 41 percent in 1981 to 46 percent in 2001.[6]

The prevalence of income poverty is still high in Tanzania. According to the household budget survey of 2000/1 the proportion of the population below the national food poverty line is 18.7% and that below the national basic needs poverty line is 35.7%.[7]


b) Social wellbeing poverty:
This is a situation whereby people are not able to access to main social needs such as clean and safe water, health services, quality education, and freedom of expression of opinions (components of Human rights). “About 47% of rural households are still using unprotected sources of drinking water in Tanzania. Long distances to sources of drinking water in rural area entail heavy workload on women and children” About 28.6% of Tanzanians cannot read and write in any language. There is more illiteracy among women [36%] than men [20.4%] …., this is due to large gender disparities in enrollment in secondary and tertiary levels. The vulnerability of girls to cultural belief and customs, early pregnancies and sexual abuse remain challenges to enrolment and completion of schooling”. Many poor people, children and women in particular, die without ever accessing a health facility, whereas eight out of ten children die at home and six of then without any contact with formal health services. [8].
UNDP (2000) Classify this as human poverty characterized with lack of basic human capabilities: Illiteracy, malnutrition, abbreviated life span, poor maternal health, illness from preventable diseases.
Indirect indicators for this type of poverty are lack of access to goods, services, and infrastructure-energy, sanitation, education, communication, drinking water-necessary to sustain basic human capabilities[9].

(c) Food security Poverty.
F.A.O explained that, where people do not live in hunger or have no fear for starvation, implies that food security situation exist. However due to extreme poverty prevailing around 852M world-wide men, women and children are chronically hungry; while up to 2 billion people lack food security intermittently due to varying degrees of poverty.
There is a direct relationship between food consumption levels and poverty in terms of income. Families with income resources such that they are out of extreme poverty bracket rarely suffer from chronic hunger; while poor families not only suffer the most from chronic hunger, but are also the segment of the population most at risk during food shortages and famines.
Therefore Food Security exists when all people, at all times, have access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life[10].
Food security at household level means that all members of the family have access at all times to enough food for an active, healthy life. Food security position means that there is availability of nutritious, adequate and safe foods with ability to acquire using socially acceptable means. The opposite of this is famine and hunger both of which are rooted from food insecurity. This can be classified as chronic or transitory. Chronic food insecurity results into famine and hunger which is related to poverty.
Currently, Tanzania has not been able to suffice her food security; this is because of low level technology used, depending on rain fed agriculture and inadequate implementation of different agricultural development programs.

3.0 EMPERICAL REVIEW
3.1 Indicators of poverty
Development is a process of improving /raising the standard of living of the people. It is a process which creates changes measured in different parameters. For example ability to meet basic needs like food and clothing. Development could be the process of improving capacity of getting food or the process of ensuring that people get basic clothes at least to cover their body. Therefore inability to meet those basic human needs leads to impoverishment.
Lack of these basic needs (also referred as indicators) as discussed above can either be under Income poverty, Social wellbeing poverty or Food security Poverty as indicated in the following table:



S.N
INDICATOR
TYPE OF POVERTY
1.
Poor infrastructures, poor roads, poor water supply, lack of schools etc: Some parts of the country does not have passable roads, clean water supply, adequate schools and teachers.
Social wellbeing
2.
Shortage of Food/food insecurity which leads into hunger: Many parts of the country have been experiencing nutritious food supply for normal health requirement.
Food Security
3.
Diseases: In Tanzania we are experiencing incurable diseases like HIV / AIDS and curable diseases like malaria which renders people poorer.
Social wellbeing
4.
Income levels in Tanzania is half a $ or TZS. 500 per person per day.
Income poverty
5.
Civil wars, conflicts, political instability due to political monopoly, too much discriminations
Social wellbeing
6.
Homelessness and landlessness:
Income/Social wellbeing


3.2 Causes of Poverty or impoverishment in Tanzania
(i) Historical factors,
Tanzania like other African countries lost a lot of its resources during the time of slavery in terms of manpower, and other natural resources like ivory, skins, precious stones timber and other commodities which were taken freely to Europe. During industrial revolution in Europe African countries including Tanzania were colonized to ensure supply of raw materials to metropolitan industries with very little compensation. Neo-colonization and globalization still impoverish developing countries people including Tanzanian people. .


(ii) Environmental / Natural features:
Environmental features or natural features such as climate, arable/fertile land, rainfall, minerals, fresh water, energy, and other natural features have a lot to do with poverty. Some people in Tanzania normally in the rural areas are poor due to unfavorable environment features. However poverty is also experienced by people who live in very favorable environment features.
(iii) Macro-economic conditions
Economic policies are important factors in Tanzanian poverty. Good policies will eradicate poverty but poor policies will increase poverty.

(iv) Disease:
Diseases are the sources of poverty specifically those classified as diseases of poverty: AIDS, malaria, and tuberculosis, which perpetuate poverty by diverting individual, community, and national wealth and economic resources from investment and productivity. The Tsetse fly makes it very difficult to use many animals in agriculture in afflicted regions.

(v) Poor Governance:
Poor governance results into lack of rule of law, democracy , and political will for those in power, prevalence of political monopoly or discrimination, bureaucratic practices, selfishness, favoritism and corruption. This is also a situation in which there is no transparency and accountability. The leaders in this case are conservative (do not want to change)
Creation of tax havens for foreign investors in which citizens are heavily taxed but not citizen from other nations and refuse to disclose information necessary for foreign taxation. This enables large scale political corruption, tax evasion, and organized crime in the foreign nations.

(vi) Social services
Lack of health care, equitably availability of schools, birth control methods needed to check population growth.

(vii) Technology , Education and infrastructure
Poor technology or techniques of production and appropriate education / knowledge

(viii) Poor infrastructure
Lack of good infrastructure like roads and transport facilitates causes poverty.
(ix) Free trade liberalization, the very high subsidies to and protective tariffs for agriculture in the developed world market. Lack of trade barriers on incoming (often highly subsidized) goods from wealthier countries.
(x) Substance abuse, such as alcoholism and drug abuse.
(xi) Cultural beliefs and rigidity to attitude change, actions and choices.
(xii)Discrimination of various kinds, such as age discrimination, stereotyping, gender discrimination.
(xiii) Rural urban migration, The youth are migrating to towns and cities from rural areas hence man power in rural areas is affected.
(xiv) Floods, draughts, pests and vermin.
(xv) Lack of capital in terms of money or working tools, expertise etc.
(xvi) Dependency on local and foreign donors: People believe that without donation nothing can be done. This attitude brings poverty.
(xvii) Political conflicts destroying infrastructure.
(xviii) Lack of savings which are necessary for capital building and investments.
(xix) Laziness and idling: Able people are wasting time doing nothing, playing cards or sleeping during the day and night.

3.3 Solutions
(i) Increase in production and productivity in agriculture, industries, fisheries, mining etc.
(ii) Improving economic infrastructure at the national level, these are roads, water supply, electricity, irrigations schemes, marketing and commerce.
(iii) Good governance can be achieved through:
(a) Political will by leaders (b) better policies (c) Willingness to invest in production (d) improve accountability (d) improve transparency (e) institute anticorruption
(iv) Cultural change or attitude change through education.
(v) Develop self reliance in production and avoid dependency on donors for development.
(vi) One of the best suggested model of poverty alleviation is through applications of CED approach which promotes and build community self reliance, control inclusion, with broad participation, involve those who are marginalized and existing social and economical policy[11]. Through CED people initiate their own strategies which seek to develop the economy of the community, region or country for the benefit of its residents. CED is a systematic planned intervention that is intended to promote economic self reliance. This will lead to consumers becoming producers, users becoming providers, and employee becoming owners of enterprise. It does not assume that market alone will solve the economic problems of the communities[12].

However we may say that there is no single solution for poverty alleviation but a combination of methods may provide good results. It is not the Government or donor community, who will provide solution for this social evil, but peoples focus on the problem, commitment and willingness to fight jointly will provide good results.


4.0 POLICY REVIEW
Historically Tanzania has been fighting poverty through its development plans and strategies. Just after Independence there were sectoral; development plans (water, energy, land Agriculture, Industry, fishery and mining). Arusha declaration gave birth to Socialism and self reliance policy with an objective of fighting exploitation of the poor people by capitalists. In 1975 village act was passes which established ujamaa villages as primary Cooperative societies.
In order to ensure that poor people are linked to financial services, the Government through its Ministry of Coop. and Marketing established Cooperative Development Policy 2002, which encouraged formation of SACCOS within the area of operation of primary societies. Further more the government initiated Rural Financial Services Program financed by IFAD, with an objective of strengthening the operational and financial performance of both existing and new grass roots MFIs, like SACCOS, that meets financial needs of the rural people. It trains leaders and members on microfinance best practice and provides institutional support to MFIs. Also build capacity to existing financial institutions (FIs), Community and Cooperative Banks, to expand their financial services to rural area and link up with the grass roots MFIs which in turn will provide loans to microenterprises of the poor people[13].

Through Property and Business Formalization Program (PBFP) “MKURABITA”, the government aimed at economically empowering the poor by increasing their access to property and business opportunities, towards development of a strong expanded market economy, which is governed by the rule of law[14]. This Program is conceived within National Strategy for Growth and Reduction of Poverty (NSGRP) “MKUKUTA”.

NSGRP (MKUKUTA) is a second national organizing framework for putting the focus on poverty reduction which is high on the country’s development agenda. The NSGRP is informed by the aspiration of the Tanzanian’s Development Vision (Vision 2025) for high and shared growth, high quality livelihood, peace, stability and unity, good governance, high quality education and international competitiveness. It is committed to the Millennium Development Goals (MDGS) as internationally agreed target for reducing poverty.[15]

The last but not the least is the Economical Empowerment Program popularly known as “J.K. Empowerment Program” in which 1bn TZS will be spent in each region for loans specifically to be provided to microenterprises for economical empowerment, in poverty alleviation. [16].

4.1 Weaknesses of the policies
(i) The strategies formulated and implemented on poverty alleviation were not participatory, instead were TOP DOWN with an assumption that the communities have no skills to put inputs on those strategies resulting into failure to realize the expected positive impact.
(ii) The strategies were donor dependency on funding and driven by donor policies which are still hindrance to poverty struggled.
(iii) There is unconsolidated approach in addressing poverty.
Moreover, Poverty Reduction Strategy Papers (PRSPs - MKUKUTA) are in many ways the replacement for Structural Adjustment Programs, and are documents required by the IMF and World Bank before a country can be considered for debt relief within the HIPC ( Highly Indebted Poor Countries) program.[17] Poverty Reduction Strategy Papers (PRSP) are believed to be prepared by the member countries through a participatory process involving domestic stakeholders as well as external development partners, including the World Bank and International Monetary Fund.



5.0 CONCLUSION.
War against poverty has registered some achievements, like school children enrollment and increase in secondary school intake. Introduction to community health insurance positively achieved reduction of maternal mortality rate and introduction of health insurance to the community level.
However still the poverty level in Tanzania is still high due to the fact that majority of Tanzanian population is still below poverty line. Therefore concerted efforts are required to involve the poor community in solving this problem in order to ensure support in the implementation of the programs.

Tanzania should work out equitable utilization of available natural resources for the benefit of the people instead of enriching foreign multinational mining companies through bad mining contacts. Now it is time to understand that poverty alleviation will not be effected through high dependence of donor funding (development partners). We must build the spirit of self reliance.


Reference
1. Dr. Phil Bartle (2007), Factors of Poverty, The Big Five, Workshop notes Published in http:// www.scn.org.
2. English free dictionary (2007).
3 .FAO, 2003
4. http: www. Ippmedia.com/ipp/guardian/2007/01/04
5. Kemp & Coyle, 1994: 261
6. National strategy for growth and reduction of poverty [NSGRP] of Tanzania, VPO, 2005, p.13
7. RFSP News Letter (2004): www.rffsp.org
8. Sanyika 1989. p. 9
9. The World Bank (2007) Poverty Analysis overview Http://web.worldbank.org.
10.. UNDP (2000) Poverty Report 2000, Overcoming Human Poverty, New York,USA
11. URT, Presidents Office, Empowering the disadvantaged towards Expanded market Economy
12. URT,Vice presidents office (June 2005) , National Strategy for Growth and Reduction of Poverty
13. Vice presidents Office ((2005),National strategy for growth and reduction of poverty [NSGRP] of Tanzania, p.4
14. Wikipedia free encyclopidia.
[1] Dr. Phil Bartle (2007), Factors of Poverty, The Big Five, Workshop notes Published in http:// www.scn.org.
[2] Dr. Phil Bartle (2007), Factors of Poverty, op. cit.

[3] English free dictionary (2007).
[4] Wikipedia Free Encycopidia
[5] The World Bank (2007) Poverty Analysis overview Http://web.worldbank.org.
[6] Wikipedia free encyclopidia.
[7] Vice presidents Office ((2005),National strategy for growth and reduction of poverty [NSGRP] of Tanzania, p.4
[8] National strategy for growth and reduction of poverty [NSGRP] of Tanzania, VPO, 2005, p.13
[9] UNDP (2000) Poverty Report 2000, Overcoming Human Poverty, New York,USA
[10] : FAO, 2003
[11] Kemp & Coyle, 1994: 261
[12] Sanyika 1989. p. 9
[13] RFSP News Letter (2004) : www.rffsp.org
[14] URT, Presidents Office, Empowering the disadvantaged towards Expanded market Economy
[15] URT,Vice presidents office (June 2005) , National Strategy for Growth and Reduction of Poverty
[16] http: www. Ippmedia.com/ipp/guardian/2007/01/04
[17] Wikipedia free Encyclopedia.

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