Why poverty has persisted
Aug 30, 2006
POVERTY Eradication is one of the Millennium Development Goals (MDGs). The Ugandan government aims to reduce the incidence of poverty to 10 per cent by 2017 compared to a less ambitious target of 28% by 2015 under MDGs. Although poverty has fallen nearly by 20 per cent in the past decade, it increas
By Dauda Hiriga
POVERTY Eradication is one of the Millennium Development Goals (MDGs). The Ugandan government aims to reduce the incidence of poverty to 10 per cent by 2017 compared to a less ambitious target of 28% by 2015 under MDGs. Although poverty has fallen nearly by 20 per cent in the past decade, it increased from 34 per cent in 1999/2000 to 38 per cent in2002/2003 with absolute numbers increasing in the same period i.e seven million (Chronic Poverty Report 2005). A survey showed those with big families, those living in an agricultural household, in Northern Uganda or far away from a town, and the uneducated are more likely to be poor.
Why despite various efforts, has poverty remained an issue of national concern?
Firstly, Uganda’s population (27.5m in 2005) grows at a very high annual rate of 3.3 per cent per, which means that Uganda is adding on roughly one million per year. We will be 51.9m and 118.3m in 2025 and 2050 respectively. High fertility and a large number of young people affects the population’s productive capacity which determines wealth creation. With limited resources (more than 48% of budget support),it depresses savings and makes it increasingly difficult for most families to adequately feed, clothe, house and educate their children. Also frequently child bearing deprives the mother of the opportunity for gainful employment, careers advancement and increases vulnerability to ill health.
In addition, the majority of Ugandans are in rural areas and in agricultural sector.
These people will naturally not understand and internalise “economic jargons †like trend in inflation, GDP per capita, growth rates if they are not able to have meals, school fees, healthcare or clothes for tier children. So they unlikely to respond to incentives to get them out of poverty.
A big population is good if the economy is vibrant and majorities are industrious. However, if the population grows faster than the economy then it is recipe for disaster.
However, if we are to look at causes of poverty and study them in Ugandan context, there is more to put in consideration than just population.
According to Poverty Participatory Report, 2002, poverty defined as powerlessness can be seen in terms of ; poor governance and corruption (e.g. insecurity in northern Uganda has increased poverty incidence in that region), lack of participation where decisions, theories are preconceived by the elite, gender discrimination, unmet aspirations (e.g. sharp price fluctuations for farm products like vanilla) and illiteracy.
It therefore requires that development should be seen in a context that is greater than meeting the macroeconomic indicators such as GDP and MDGs which are in most cases based on national averages. Polices and programmes should primarily focus on social safety nets that help poor people to manage present deprivation and rapidly return to a non-poor status.
Current policies and decision-making and planning processes at various levels should reflect a clear understanding of broadness of poverty and its relationship to the above factors.
The writer is a researcher
POVERTY Eradication is one of the Millennium Development Goals (MDGs). The Ugandan government aims to reduce the incidence of poverty to 10 per cent by 2017 compared to a less ambitious target of 28% by 2015 under MDGs. Although poverty has fallen nearly by 20 per cent in the past decade, it increased from 34 per cent in 1999/2000 to 38 per cent in2002/2003 with absolute numbers increasing in the same period i.e seven million (Chronic Poverty Report 2005). A survey showed those with big families, those living in an agricultural household, in Northern Uganda or far away from a town, and the uneducated are more likely to be poor.
Why despite various efforts, has poverty remained an issue of national concern?
Firstly, Uganda’s population (27.5m in 2005) grows at a very high annual rate of 3.3 per cent per, which means that Uganda is adding on roughly one million per year. We will be 51.9m and 118.3m in 2025 and 2050 respectively. High fertility and a large number of young people affects the population’s productive capacity which determines wealth creation. With limited resources (more than 48% of budget support),it depresses savings and makes it increasingly difficult for most families to adequately feed, clothe, house and educate their children. Also frequently child bearing deprives the mother of the opportunity for gainful employment, careers advancement and increases vulnerability to ill health.
In addition, the majority of Ugandans are in rural areas and in agricultural sector.
These people will naturally not understand and internalise “economic jargons †like trend in inflation, GDP per capita, growth rates if they are not able to have meals, school fees, healthcare or clothes for tier children. So they unlikely to respond to incentives to get them out of poverty.
A big population is good if the economy is vibrant and majorities are industrious. However, if the population grows faster than the economy then it is recipe for disaster.
However, if we are to look at causes of poverty and study them in Ugandan context, there is more to put in consideration than just population.
According to Poverty Participatory Report, 2002, poverty defined as powerlessness can be seen in terms of ; poor governance and corruption (e.g. insecurity in northern Uganda has increased poverty incidence in that region), lack of participation where decisions, theories are preconceived by the elite, gender discrimination, unmet aspirations (e.g. sharp price fluctuations for farm products like vanilla) and illiteracy.
It therefore requires that development should be seen in a context that is greater than meeting the macroeconomic indicators such as GDP and MDGs which are in most cases based on national averages. Polices and programmes should primarily focus on social safety nets that help poor people to manage present deprivation and rapidly return to a non-poor status.
Current policies and decision-making and planning processes at various levels should reflect a clear understanding of broadness of poverty and its relationship to the above factors.
The writer is a researcher