We are going to talk to you about Poverty. We will touch on different sides of poverty; we will explain what poverty is when looking at it from different perspectives. [Team member 1] will talk about the social and cultural point of view; [Team member
2] will tell us more about the political perspective and I will touch on the economic side of things.
We want to give you a small explanation of why we choose poverty as a subject. The 3 of us do not suffer from
the effects of poverty, however, others do. And with the ongoing pandemic, people tend to forget other problems like Poverty. And that is why we wanted to talk about it, to make sure people understand that it is still an ongoing problem and that it has
gotten worse the past year!
Poverty, what is poverty? How can we describe poverty from an economic perspective? Poverty in the eyes of economists is a state in which a person, a community or a neighbourhood lacks the financial resources to achieve a minimum
standard of living. So, poverty means that the level of income of a person or a group of people is below a certain threshold. This threshold is so low that basic human needs can just be met. Receiving income that is below this threshold is considered
living in poverty. The effects of living in poverty can be horrendous, people living without proper housing, clothing struggling to be able to eat healthy food or drink water every day. Although poverty seems to be a worldwide problem concerning millions
of people around the world, poverty is also different in a lot of countries. because the threshold that determines whether someone is poor or not can differ per country. However, the IPL international poverty line has been set at $1.90 per day. Global
estimates are that around 689 million people live in absolute poverty right now.
Let's start with a local view of Poverty.
In Maastricht, around 8.2% of the inhabitants live in poverty. We have a place in the top 10 municipalities with the highest number of habitants living in poverty. When compared with the averages of the Netherlands as a country we have a higher
average of people living in poverty in Maastricht, which shocked me. I was under the impression that Maastricht would score 'better' on this list. And that is another problem with poverty.
You can not always tell when someone lives in this state of poverty. People tend to not talk about it and sink into an even deeper hole without trying to get help for the situation they are in. This can make the situation for people in poverty
even worse. if you get to the point where you live in poverty the smart thing to do is get help for your financial situation. let people know what you are undergoing and get help. In the Netherlands, we have certain safeguards in place where
you can explain your situation and get help from financial advisors. They will help you to limit your expenses and will try to help you pay off your debt if that is applicable.
Even with this available help people still live in poverty. In the Netherlands, about 6.2% of the population lives in poverty. With a poverty threshold of €1090 per month which almost a million people don't pass. This seems rather alarming, however,
it is an improvement when compared with the numbers from several years ago. In 2013 7.4% of our population was living in poverty! So we are making small progress on the national level.
So there is a slight improvement, however, are we going to keep that up or even improve the situation faster? I think we can keep the progress up. On a global level, people have been hit hard financially by the lockdown. Businesses had to close
down and people have been struggling financially. However, with the election in the Netherlands promises of improvement and support for those who need it have started to arise.
When we take a look at Maastricht once again, we can see that people are fighting for change. 6 of the political parties have agreed to a program in which they will get 50 households who live in poverty and have extensive debts, a financial plan
and a guide to slowly get their lives back on track. Furthermore, before the year is out they want to make a plan to attack the poverty in and around Maastricht.
On a national level, things are starting to change as well. Food Banks are starting programs to support the people who need to get their food at the food banks. An example of this support is the 10 point plan created by a food bank in Groningen.
This foodbank helps its 'customers' with a 10 point plan attack on poverty. Some examples are:
1. Only buy things you can afford!
2. Getting help when in a big debt has to become faster, right now it can take up to 4 months to get people to listen to your story.
3. Trying to remove the own risk of health care for people who live in poverty.
when looking at the biggest picture, international poverty, I am not sure if we are going the right way. at least we should be able to do better. because of the differences between countries on poverty we do not have a clear view of the real numbers.
We do have estimates of absolute poverty, the $1.90 a day, and from those numbers we can conclude that we must do better.
There are some great ideas and initiatives out there to help reduce poverty around the world. For example: Improving the transition from school to work of the vulnerable work population. And implementing policy measures to reduce household debt
and vulnerability to housing price changes.
Another great idea is to create a worldwide organisation that makes a centralised policy around poverty and the battle against poverty. Another thing that would help would be to make sure people are warned about the risks of borrowing money. There
are some regulations around these risks already however we could improve them, make sure that vulnerable people can not miss the warnings, maybe even make it harder for them to borrow money because it will eventually put them in even more
debt and make them even poorer. And lastly, we need to make sure everyone has the opportunity to get out of poverty, We need to give the poor the tools to become financially healthy again. Courses on finance, debt and interest, financial advice
and learn them how to get back on their feet.