Previous and current government actions to reduce poverty in Sri Lanka.................!
Previous and current government actions to reduce poverty in Sri Lanka.................!
Previous and current government actions to reduce poverty in Sri Lanka.................!
Previous and current government actions to reduce poverty in Sri Lanka
Poverty
Poverty is one of
the issues that has been discussed globally for decades. Poverty is one of the
driving forces of inequality in the world and an obstacle to individual and
social development.
Poverty is defined
as a state in which an individual is unable to meet even the minimum standard
of living (Rusasatana Team, 2002). That is, it refers to a state in which a
person does not have enough income to meet even the minimum needs necessary for
survival. Poverty prevents a person from living a long, healthy life,
maintaining a decent standard of living, independence, self-respect and being
respected by others ( 1993).It is noteworthy that poverty has a major impact on
the social welfare and economic development of a country. Accordingly,
understanding poverty and its socio-economic impacts is of utmost importance
today.Sri Lanka has been declared a middle-income country. Public expenditure
on social services has fallen to one percent of GDP and this has created
widespread inequality. Poverty, therefore, remains a significant issue but
needs to be understood from a holistic perspective that considers factors such
as people’s abilities, private and social assets, leisure time (or lack
thereof), and access to social participation and security.
·
However, most media
outlets view poverty in terms of economic deprivation. A broader understanding
of poverty includes democracy, good governance, the rule of law, freedom of
expression, and media freedom, which enable people to meet their full
potential.
·
There is no single
approach to describing poverty, and there is no single indicator to measure it.
Poverty is a complex phenomenon with multiple dimensions.
·
Researchers use four main
approaches to defining, measuring, and monitoring poverty. They are the
financial approach, the capability approach, the social exclusion approach, and
the participation approach.
The financial approach
focuses on
the economic dimensions of risk, such as income and expenditure. It is
well-known for its aspect of poverty.
• The
capabilities approach,
introduced
by Indian economist and Nobel laureate Amatya Sen, focuses on what is needed
for a good life. Does an individual have the life he values? Can he achieve a
basic level of capabilities in terms of health, education, environment, and
empowerment? If not, poverty is understood as the denial of the capabilities
for a life lived.
• The social exclusion approach
identifies some people as socially
marginalized and excluded. As a result, they are completely excluded from
policymaking, civil, social and cultural life.
• The
participatory approach
is based on
people's opinions and is therefore subjective.
Types of Poverty
1.
Absolute Poverty
Absolute poverty is the state of not having enough income to meet even
the basic needs, including food items that provide very little calorie value.
Absolute poverty is the state of not being able to meet basic needs such
as food, safe drinking water, housing, health services, education and
information. It depends not only on income but also on access to social
services. In fact, there is a lot of interest in reducing this poverty
worldwide. Absolute poverty is defined in terms of absolute income
distribution. When absolute poverty is present, malnutrition, infant mortality,
illiteracy increase and life expectancy decreases
1. Relative poverty
Relative poverty
is a condition in which the average living conditions prevailing in a society
cannot be maintained. In calculating relative poverty, the average expenditure
of the society is taken into account. The idea is that every society has this
poverty because not everyone in a society has the same income. Some people may
have a lower income than others in the society. However, since their income is
higher than the poverty line, they are not considered to be in absolute
poverty. In practice, not much attention is paid to reducing this poverty.
1. Rural poverty
This occurs in
villages with a population of less than 50,000. This poverty is caused by low
employment, limited services, poor support for the disabled, and lack of
quality educational opportunities.
2. Urban poverty
This occurs in
cities with a population of more than 50,000. Challenges faced by the urban
poor include health, lack of adequate housing, and social security.
Poverty Trends in Sri
Lanka
The World Bank’s report on Sri Lanka reveals that poverty has increased
over the past four years. Poverty has increased from 11 percent in 2019 to
nearly 26 percent in 2024. This means that more than a quarter of Sri Lanka’s
population lives in poverty.
High inflation, wage losses, falling incomes, unemployment and falling
remittances have pushed households into poverty.
The report notes that nearly 60 percent of Sri Lankan households have
seen their incomes fall, with many facing food insecurity, malnutrition and
stunting, the report notes.
The report also indicates that labor market trends in Sri Lanka have been
affected by widespread closures of small and medium enterprises. The labor
force participation rate in the urban sector fell to 45.2 percent in the third
quarter of 2023 from 52.3 percent in 2019. Youth unemployment, especially among
mature youth (25-29 years old), rose to 17.7 percent between the second and
third quarters of 2023.
A report by the Census and Statistics Department of Sri Lanka (CDS) said
that the minimum monthly expenditure for an individual living in Sri Lanka has
increased by 144 percent since 2019. This amount is calculated based on the
amount needed to meet basic monthly needs.
In 2019, the basic expenditure for an individual was Rs. 6,966 (23). This
hunger-proof amount has now increased to Rs. 17,014 per month.
Poverty Reduction Measures of the Past Government.
Sri Lanka’s commendable progress in poverty
reduction appears to have been hampered by the spread of the disease, in
parallel with the widening of already widespread inequality. As a result of the
multifaceted poverty reduction initiatives of successive governments and their
efforts to generate inclusive growth, Sri Lanka has made significant progress
in poverty reduction over the past two and a half decades.
According to the official poverty line developed by
the Department of Census and Statistics based on the 2002 Household Income and
Expenditure Survey, the per capita poverty headcount index declined from 28.8
percent in 1995-1996 to 3.2 percent in the 2019 survey round. The latest update
of the official poverty line using household income and expenditure survey data
for 2012-2013 showed that the decline in poverty was similar, but the share of
the population living below the poverty line was 14.3 percent in 2019.
Accordingly, according to the updated poverty line, approximately 3.04 million
individuals are living below the poverty line.
This is approximately 4.4 times higher than the
number of people previously estimated to be living below the poverty line in
2002.
The latest
poverty data from the Department of Census and Statistics, based on the 2019
Household Income and Expenditure Survey, reveals that approximately one in six
Sri Lankans is poor in multiple forms and that 42 percent experience poverty
according to weighted indicators.
Accordingly,
the national multidimensional headcount poverty rates were relatively high in
urban areas at 16.6 percent and in plantation areas at 51.3 percent. People in
the plantation sector experienced the highest levels of poverty. Among the
districts, the lowest indicators of
multidimensional
poverty were observed in Colombo (3.5 percent) and Gampaha (5.1 percent), while
the highest was observed in Nuwara Eliya (44.2 percent). Although there are
significant disparities between districts, the proportion of people living in
poverty across all categories is highest in Colombo and Gampaha districts due
to the generally high population density in urban areas.
This
highlights that a significant portion of the population was living in poverty
even before the COVID-19 pandemic. Due to the persistence of the pandemic and
the disruptions it has caused, a ‘new poverty’ segment of the population at
risk of poverty may have emerged in recent years.
Despite
the limited fiscal space and challenging economic conditions, the government
and the central bank, with due regard for the potential for worsening poverty
outcomes and inequality, continued to focus on mitigating the severe impacts of
the pandemic on vulnerable segments of the population through unprecedented
fiscal and monetary stimulus packages.
While
such measures have mitigated the impact of the pandemic on the financial and
nutritional status of the population to some extent, other pre-pandemic
inequalities related to access to health and education infrastructure as well
as household assets may have constrained the current and future productivity
potential of the household sector.
The
government needs to move forward with effective and targeted policy initiatives
to prevent any further damage to the housing sector from the lingering impacts
of the COVID-19 pandemic, and it is essential that comprehensive and up-to-date
poverty-related data sets are made available by relevant institutions in a
timely manner.
The
government has implemented various social protection measures targeting
vulnerable segments of the population with a view to alleviating the financial
burden of livelihood losses arising from the COVID-19 pandemic.
The
government has continued to expand existing assistance programmes for the needy
segments of society for the second consecutive year, with due regard to the
disproportionate impact of the COVID-19 pandemic.
Accordingly,
the government provided Rs. 5,000 assistance to vulnerable households in two
rounds during the third wave of the pandemic, in April and June 2021. Thus, an
amount of Rs. 14.1 billion was distributed among 2.8 million eligible
households in April 2021, followed by a second round of Rs. 8.2 billion among
1.7 million households in June 2021.
Many
households, including Samurdhi beneficiaries, low-income and vulnerable
families, elderly, differently-abled and kidney patients, benefited from this
program.
In
addition, the government also provided a cash assistance of Rs. 2,000 per
family, effective from August 2021, targeting families who have lost their
livelihood but are not receiving assistance from any of the government's
existing cash assistance programs. Accordingly, a total of Rs. 12.0 billion was
distributed under this program.
The Government is committed to continuing
to implement all existing safety net programmes during the year as they have
worked to protect the economic well-being of vulnerable segments of the
population.
During the year, the Department of Samurdhi
Development disbursed Rs. 51.6 billion to 1.8 million beneficiary families
under the ongoing Samurdhi Relief Programme. The Samurdhi Department has also
undertaken various programmes targeting livelihood, community and entrepreneurship
development with the aim of creating ‘safety nets’ that enable households to
lift themselves out of poverty.
The government has continued the breakfast
programme for pre-school children and introduced the ‘Take Home’ programme in
lieu of school meals under the National School Feeding Programme, while also
providing a nutritional allowance of Rs. 20,000 to young mothers. These
programmes are implemented by the State Ministry of Women and Child
Development, Pre-Primary and Primary Education, School Infrastructure and
Educational Services.
These initiatives are expected to play a
key role in maintaining the nutritional status of young children and new
mothers amidst the challenges faced by the needy households due to the
pandemic.
Considering the disproportionate increase
and the rapid impact of the COVID-19 pandemic on the poor, the Samurdhi
assistance per beneficiary family was further increased by a resolution to
increase by approximately 28 percent from February 2022, as proposed in the
Budget 2022. Accordingly, the family unit assistance of Rs. 3,500, Rs. 2,500
and Rs. 1,500 per family was increased to Rs. 4,500, Rs. 3,200 and Rs. 1,900
per family respectively.
No comments