Debate the working poor

by Devon Dick

TODAY, AUDLEY Shaw, minister of finance, debates Peter Phillips, opposition spokesman on finance, concerning issues related to economic growth and finance. High on the debating agenda should be empowering the working poor.

According to a recently published International Monetary Fund (IMF) report, Jamaica's poverty and income inequalities are increasing, and Jamaica has the second-highest unemployment rate at roughly 11.8 per cent; the second-worst unequal distribution of income; the fourth-highest poverty rate at 43.1 per cent when compared with 23 regional neighbours. This IMF report, Regional Economic Outlook, Western Hemisphere: Shifting Winds, New Policy Challenges, defined poverty as the share of population earning less than US$2.50 per day, which translates to 1.1 million Jamaicans.

The head of the Planning Institute of Jamaica, Dr Gladstone Hutchinson, claims that in relation to the poverty level the figures related to 2002, and also that the IMF and Statistical Institute of Jamaica (STATIN) use two different methodologies to compute poverty levels. The IMF uses income earned while STATIN uses con-sumption. Nevertheless, no one has and is challenging the findings of the IMF that approximately 43 per cent of the population earns less than US$2.50 daily.

If the data on income earned by Jamaicans relate to 2002, then chances are the 2010-11 figures would have shown some deterioration because government figures show that poverty has increased between 2007 and 2011. Additionally, we can argue about whether income earned can be used to judge whether persons are living below poverty or whether consumption intake is better. However, no one is disputing that there are at least 1.1 million Jamaicans who are earning less than $220 daily, and that this earning power ranks Jamaica as fourth to last against regional neighbours.

A serious crisis

It is nothing short of disgraceful that this report has largely been ignored by policy-makers, columnists and industry leaders. Therefore, tonight, the national debate makes this issue prominent and the debaters need to tell us what policies and programmes they have to improve the lot of Jamaicans.

It is a serious crisis that a million Jamaicans are earning less than $220 per day, or $1,100 per five-day work week. So people moralise and say that persons should not sell their votes for $10,000, not realising that $10,000 is two and half months pay for a million people. So when the moral majority criticise 76-year-old James Kinghorn for appearing to sell his vote because he said, "Anyway mi nuh get di cutlass and di file, no vote" (Gleaner, December 13), we need to perceive that here is a poor man who is not greedy, but wants a cutlass and file to be able to earn a living.

This low-earning power means that many Jamaicans will have to depend on handouts and remittances to survive. This could lead to a dependency syndrome, a life of mendicancy and feelings of low self-esteem. Others will engage in illegal and/or immoral activities. This low-earning power tempts many persons to be dependent on drug dons for income. It is, therefore, not surprising that stealing is on the increase.

Other possible implications of low-earning power for a significant percentage of Jamaicans are that revenue collection will continue to trend down, demand for goods and services will decline and economic growth will be largely illusive.

On Monday, there was a BBC newscast in which a world survey found that the two major issues discussed by young people were unemployment and poverty. One young person suggested that university graduates who cannot find employment should be allowed free training until they find employment. That is just one idea.

As a start, let our political leaders give us some ideas of how to empower the working poor who constitute 1.1 million Jamaicans.

Rev Devon Dick is pastor of the Boulevard Baptist Church in St Andrew. Send feedback to columns@gleanerjm.com.