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Monday, March 31, 2025

Growing poverty in T&T: Low-income people have smaller chance of survival in pandemic

by

Raphael John-Lall
1367 days ago
20210704
  Police officers warn members of the public to social distance as they wait in line to receive hampers during South Park mall's distribution, last month.

Police officers warn members of the public to social distance as they wait in line to receive hampers during South Park mall's distribution, last month.

Rishi Ragoonath

"A poor man liv­ing in a twee­ny-wee­ny hut

The chil­dren hun­gry and noth­ing in the pot

He gone by the neigh­bour to beg for some rice

The neigh­bour un­der pres­sure, Boy, thing ent nice..."

These are some of the lyrics to the Mighty Shad­ow’s 1994 clas­sic ca­lyp­so "Pover­ty is Hell" which de­scribes the strug­gle peo­ple face in their dai­ly lives. More than 26 years af­ter this song was writ­ten, the lyrics still hold true to­day as T&T is wit­ness­ing one of its worst eco­nom­ic and so­cial crises since in­de­pen­dence.

From the po­lice hav­ing to dis­perse large hun­gry crowds wait­ing for food ham­pers at South Park mall two weeks ago to the ris­ing num­ber of peo­ple beg­ging on the streets every day, the in­crease in pover­ty is glar­ing and has been com­pound­ed by the COVID-19 pan­dem­ic.

When COVID-19 hit, thou­sands of peo­ple lost their jobs.

Co­or­di­na­tor of the Con­fed­er­a­tion of Re­gion­al Busi­ness Cham­bers Jai Lelad­hars­ingh said that based on a sur­vey done by that group, 5,000 busi­ness­es closed with­in the last 12 months, re­sult­ing in 13,000 jobs be­ing lost. Labour Min­is­ter Stephen Mc­Clashie said in June that al­though he did not have up­dat­ed un­em­ploy­ment sta­tis­tics for the en­tire coun­try, be­tween Jan­u­ary to April of this year 235 peo­ple had filed with the min­istry as be­ing un­em­ployed.

Speak­ing in Par­lia­ment two weeks ago, Fi­nance Min­is­ter Colm Im­bert said as of June 2020, 113,000 peo­ple lost their jobs since 2015.

Those who be­came un­em­ployed in re­cent years al­so tell a tale of the se­ri­ous­ness of the sit­u­a­tion. Hun­dreds left job­less have had to dig deep to find cre­ative ways to sur­vive by tap­ping in­to crafts and trade that they learnt. But with the on­slaught of the pan­dem­ic, that too fell apart for many.

Some peo­ple have re­sort­ed to plant­i­ng crops at home to help feed them­selves and sup­ple­ment their small in­come. Oth­ers have re­port­ed cut­ting back on the num­ber of meals and the quan­ti­ty of food they eat so they could live to see an­oth­er day.

One man was re­port­ed­ly sell­ing gal­vanise sheets off his roof to buy food re­cent­ly. Chil­dren have dropped out of school as par­ents are un­able to pro­vide reg­u­lar meals or pay elec­tric­i­ty and in­ter­net bills to en­sure they ac­cess on­line school­ing.

Ac­cord­ing to in­for­ma­tion from the Min­istry of So­cial De­vel­op­ment, more than $341 mil­lion was spent on COVID-19 re­lief pro­grammes in 2020 alone as they sought to help out cit­i­zens fac­ing hard­ships.

Non-Gov­ern­men­tal Or­gan­i­sa­tions have been in­un­dat­ed with re­quests for help from those who are en­coun­ter­ing prob­lems pro­vid­ing ba­sic ameni­ties for their fam­i­lies. Liv­ing Wa­ter Com­mu­ni­ty had said the de­mand for help from their or­gan­i­sa­tion in­creased by 50 per cent.

Di­rec­tor, Kind­ness Makes a Dif­fer­ence Foun­da­tion Kavi­ta Rag­bir said that peo­ple are much more im­pov­er­ished as the pan­dem­ic has wreaked hav­oc on the coun­try's so­cial fab­ric. Peo­ple have lost their jobs and are des­per­ate, peo­ple are evict­ed from their homes and their men­tal health are be­ing af­fect­ed, chair­per­son, Catholic Com­mis­sion for So­cial Jus­tice, Leela Ramdeen shared.

 Economist Dr Vaalmikki Arjoon

Economist Dr Vaalmikki Arjoon

KRISTIAN DE SILVA

More in­equal­i­ty

Uni­ver­si­ty of the West In­dies (UWI) fi­nan­cial econ­o­mist Dr Vaalmik­ki Ar­joon told the Sun­day Guardian by email that he es­ti­mates a fam­i­ly of four in 2021 in T&T needs at least $3,500 to $4,000 a month to sur­vive, and that is ex­clu­sive of rental and med­ical costs.

The grow­ing pover­ty and in­equal­i­ty dur­ing the pan­dem­ic have giv­en low­er-in­come peo­ple an even small­er chance of sur­vival.

He point­ed to the World In­equal­i­ty Data­base which shows that the top one per cent or the rich­est in­come earn­ers in T&T re­ceived 20.2 per cent of the to­tal na­tion­al pre-tax in­come in 2019. In 2010 and 2005, they earned 20.7 per cent and 21.4 per cent re­spec­tive­ly.

Even be­fore the pan­dem­ic, these sta­tis­tics show that in­equal­i­ty in T&T was se­vere. The pan­dem­ic has made a bad sit­u­a­tion even worse, he said.

He point­ed to an In­ter Amer­i­can De­vel­op­ment Bank (IDB) sur­vey done in Au­gust 2020 which found that 67 per cent of low-in­come house­holds were af­fect­ed by job loss­es.

"This stag­ger­ing gap be­tween the in­come earn­ings among the high and low-in­come earn­ers wors­ened due to the COVID fall­out and will like­ly per­sist for the next few years, es­pe­cial­ly giv­en the clo­sure of many SMEs and the re­sul­tant ham­mer­ing to em­ploy­ment lev­els. Con­sumers are spend­ing less due to height­ened un­cer­tain­ty about the fu­ture of the econ­o­my. With frag­ile sales rev­enues and cash-flow prob­lems, many SMEs have shut their doors, while the large com­pa­nies are in a bet­ter po­si­tion fi­nan­cial­ly to sur­vive the pan­dem­ic."

He paint­ed a pic­ture of the chal­lenges the new poor face which in­cludes un­em­ploy­ment, grow­ing hunger, and even dis­eases.

"The ex­ac­er­bat­ed pover­ty lev­els could al­so ac­count for some of the high in­fec­tion lev­els as per­sons be­come un­em­ployed and ex­haust their sav­ings, many would not be able to af­ford rent and have no choice but to share ac­com­mo­da­tion with oth­er per­sons in small and con­fined rooms or apart­ments, some of which may be un­hy­gien­ic, which in turn, in­creased the spread of the virus.

"Many oth­ers felt forced to break reg­u­la­tions and take up oth­er jobs, such as work­ing for mi­cro-busi­ness­es in the un­der­ground econ­o­my, which may not be ad­her­ing to prop­er health stan­dards in the work­place."

Ar­joon pre­dict­ed that the cur­rent sit­u­a­tion will on­ly make it worse for the poor.

"This will damp­en the wage lev­els of low-skilled work­ers across the board, caus­ing fur­ther in­equal­i­ty and pover­ty. Sev­er­al who can­not get jobs will look for work in the in­for­mal sec­tor, such as un­reg­is­tered busi­ness­es that are still op­er­at­ing. In these sec­tors, many are at risk of ex­treme in­come in­se­cu­ri­ty as they may be paid low­er than min­i­mum wage and re­ceive no ac­cess to safe­ty nets such as sev­er­ance, pen­sion schemes, union rep­re­sen­ta­tion."

He added that the food prices could al­so go up which will af­fect low­er-in­come peo­ple even more.

"The UN Food and Agri­cul­ture Or­ga­ni­za­tion (FAO) da­ta shows that the glob­al food price in­dex in­creased by 30.8 per cent be­tween April 2020 and 2021, with price in­creas­es in dairy by 24 per cent, meat by five per cent, sug­ar by 60 per cent and ce­re­al by 26 per cent to name a few.

"Phar­ma­ceu­ti­cal prices have al­so gone up. Ship­ping and con­tain­er costs have al­so in­creased for im­porters. Nat­u­ral­ly, all these high­er prices and added costs will be passed on to con­sumers lo­cal­ly, in an en­vi­ron­ment where many house­holds and SMEs are al­ready fi­nan­cial­ly strained.

"Re­moval of these sub­si­dies, es­pe­cial­ly if it hap­pens too ear­ly, will fur­ther in­flate the costs of busi­ness op­er­a­tions in an ex­ist­ing frag­ile en­vi­ron­ment, and is the type of pol­i­cy that will cause many to be re­trenched and pover­ty ex­ac­er­bat­ed."

Peo­ple earn­ing min­i­mum wage who can some­how hold on to their jobs will not be able to sus­tain their house­holds with the con­comi­tant in­crease in the cost of liv­ing, Ar­joon added.

A homeless man begs for money from passersby at the corner of Queen Janelle Commissiong and St Vincent Street, Port-of-Spain, in November last year.

A homeless man begs for money from passersby at the corner of Queen Janelle Commissiong and St Vincent Street, Port-of-Spain, in November last year.

NICOLE DRAYTON

Pover­ty lev­els

Ac­cord­ing to a Peo­ple's Part­ner­ship gov­ern­ment-ini­ti­at­ed pover­ty study in 2014, 24.5 per cent of T&T cit­i­zens were liv­ing in pover­ty. The an­nu­alised pover­ty line for Trinidad was $11,479, which sug­gest­ed that a poor Trinida­di­an lived on $956 per month at that time. The an­nu­alised pover­ty line for To­ba­go was $12,177 an­nu­al­ly, which sug­gest­ed that a poor To­bag­on­ian lived on $1,015 per month at that time.

The study iden­ti­fied ar­eas with a sig­nif­i­cant num­ber of poor peo­ple–Rio Claro/Ma­yaro (48.7 per cent), Point Fortin (35.6 per cent), Diego Mar­tin (33.5 per cent), and Siparia (31.7 per cent).

From an eth­nic point of view, the ma­jor­i­ty of vul­ner­a­ble, poor, and in­di­gent peo­ple were Africans, In­di­ans, and peo­ple of mixed race.

The Bor­gen Project–a US-based NGO–in a re­port pub­lished on its web­site in 2017, stat­ed that pover­ty lev­els in T&T re­mained high. The re­port re­ferred to a 2015 re­view con­duct­ed by the Com­mon­wealth Foun­da­tion, a non­par­ti­san think tank fo­cused on pub­lic pol­i­cy, which stat­ed that over 20 per cent of T&T’s cit­i­zens were liv­ing be­low the pover­ty line. The re­port al­so stat­ed that 11 per cent of the pop­u­la­tion was un­der­nour­ished.

These un­ex­pect­ed­ly high rates of pover­ty and mal­nu­tri­tion may be part­ly due to the con­sid­er­able gen­der-wage gap present in T&T, they found. The Bor­gen re­port blamed a lack of di­ver­si­fi­ca­tion of T&T’s en­er­gy-dom­i­nat­ed econ­o­my and an in­ef­fi­cient busi­ness en­vi­ron­ment that does not en­cour­age for­eign in­vest­ment.

UWI lec­tur­er in the So­ci­ol­o­gy Unit, Dr She­lene Gomes in an email re­sponse to the Sun­day Guardian re­ferred to the T&T House­hold Bud­getary Sur­vey (2008-2009), which showed that 21.8 per cent of the pop­u­la­tion was liv­ing be­low the pover­ty line (Cen­tral Sta­tis­ti­cal Of­fice, 2011).

She said ac­cord­ing to the UN Sus­tain­able De­vel­op­ment Goals (SDGs) or the "Glob­al Goals" there are mul­ti­ple de­f­i­n­i­tions of pover­ty.

She did not give spe­cif­ic wage lev­els which de­ter­mine "pover­ty" as she said pover­ty was de­fined by more than just wage lev­els.

Pover­ty is cat­e­gorised as ab­solute or rel­a­tive, she said. Ab­solute pover­ty ex­am­ines whether ba­sic hu­man needs are met in­clud­ing food, safe drink­ing wa­ter, san­i­ta­tion fa­cil­i­ties, health, shel­ter, ed­u­ca­tion and in­for­ma­tion. It de­pends not on­ly on in­come but al­so on ac­cess to so­cial ser­vices. Rel­a­tive pover­ty, mean­while, is de­fined in re­la­tion to the eco­nom­ic sta­tus of oth­er mem­bers of the so­ci­ety: peo­ple are poor if they fall be­low pre­vail­ing stan­dards of liv­ing in a giv­en so­ci­etal con­text.

The Unit­ed Na­tions De­vel­op­ment Pro­gramme (UNDP) Pover­ty re­port pre­pared by the Cen­tre for Health Eco­nom­ics, UWI in 2018 stat­ed that "pover­ty, in the gen­er­al sense, was held to be a lack of ba­sic ne­ces­si­ties es­sen­tial for a liv­ing—food, cloth­ing, shel­ter, ba­sic ameni­ties such as elec­tric­i­ty and wa­ter and mon­ey."

Away from de­f­i­n­i­tions, Gomes said al­though tem­po­rary COVID-19 grants giv­en by the Gov­ern­ment are nec­es­sary and use­ful, there are deep­er struc­tur­al is­sues to pover­ty to meet ba­sic needs and to live with dig­ni­ty "which go be­yond each elec­tion cy­cle."

Gomes spoke about some of the eco­nom­ic de­vel­op­ments even be­fore the pan­dem­ic that led to job loss­es in T&T and which im­pact­ed pover­ty lev­els.

She said be­fore the pan­dem­ic and the most re­cent job loss­es for in­stance at Caribbean Air­lines, there were eco­nom­ic de­vel­op­ments that ad­verse­ly af­fect­ed the pop­u­la­tion such as the clo­sure of Petrotrin. One of the is­sues is the State and em­ploy­ers aban­don­ing work­ers to take care of them­selves with­out so­cial sup­port.

"While per­sons may have been re-hired, it was in some cas­es on con­tracts de­void of ben­e­fits that would al­low a sim­i­lar stan­dard of liv­ing, erod­ed fi­nan­cial se­cu­ri­ty and in ef­fect made work­ers more vul­ner­a­ble to risk–hence the im­por­tance of the point about rel­a­tive pover­ty."

She said it was ob­vi­ous that Petrotrin work­ers are not the "poor­est of the poor" in T&T, but this ex­am­ple points to a glob­al trend that is be­ing repli­cat­ed in T&T to­ward gig work where­by the State and com­pa­nies di­vest re­spon­si­bil­i­ty for work­ers–broad­er ex­am­ples in­clude that of Uber and Airbnb–where com­pa­nies reap the prof­its and "self-em­ployed" work­ers car­ry the risks and the costs.

Minister of Social Development and Family Services Donna Cox.

Minister of Social Development and Family Services Donna Cox.

Cox: Govt spent $341 M

In an in­ter­view with the Sun­day Guardian, Min­is­ter of So­cial De­vel­op­ment Don­na Cox who has come un­der fire for her com­ment that some peo­ple are "greedy and not needy" as they joined long lines for food ham­pers while not ad­her­ing to COVID-19 safe­ty pro­to­cols, de­fend­ed the work that her min­istry has done to as­sist the need­i­est since the pan­dem­ic hit in 2020.

Cox said while the min­istry does not have the most re­cent sta­tis­tics on pover­ty, she ad­mit­ted that with the lock­down and clo­sure of busi­ness­es it is ex­pect­ed that the most vul­ner­a­ble in T&T would have been hit hard by the eco­nom­ic prob­lems.

She said the mon­ey that the Gov­ern­ment has spent specif­i­cal­ly on pan­dem­ic re­lief is an ac­knowl­edge­ment of how “tough” the sit­u­a­tion is in the coun­try.

For 2020 alone they as­sist­ed over 176, 800 peo­ple, and that cost rough­ly $341 mil­lion.

She said she re­mains "op­ti­mistic" that as more peo­ple are vac­ci­nat­ed and the coun­try re­opens the so­cial sit­u­a­tion would in­crease.

"What we try to do is to help as many per­sons are we can who are af­fect­ed at this time. The role of the Gov­ern­ment is to help those who need it the most."

In ad­di­tion to re­lief grants, she said, as part of the Gov­ern­ment's so­cial pro­gramme, food bas­kets are be­ing dis­trib­uted to low­er-in­come fam­i­lies. The dis­tri­b­u­tion was an­nounced by the Prime Min­is­ter on May 7 to as­sist vul­ner­a­ble fam­i­lies strug­gling to feed them­selves.

Ac­cord­ing to Agri­cul­ture Min­is­ter Clarence Ramb­harat so far 72,000 of the Na­tion­al Agri­cul­tur­al Mar­ket­ing and De­vel­op­ment Cor­po­ra­tion (NAMDE­V­CO) mar­ket box­es have been dis­trib­uted through­out the coun­try. The pro­gramme start­ed in May and ends at the end of Sep­tem­ber.

COVID-19 SO­CIAL SUP­PORT 2020

*Ad­di­tion­al help to ex­ist­ing ben­e­fi­cia­ries of food sup­port has been giv­en to 25,101 peo­ple to date.

*Food and In­come/Food Sup­port-Re­trenched/ter­mi­nat­ed/in­come re­duced have been paid to 54, 724 peo­ple.

*The pro­vi­sion of Food Sup­port to house­holds that re­ceive meals from the School Feed­ing Pro­gramme but who are not cur­rent ben­e­fi­cia­ries of food sup­port were paid to 20,497 peo­ple.

*Sup­port to cur­rent ben­e­fi­cia­ries of the Pub­lic As­sis­tance and Dis­abil­i­ty As­sis­tance Grant have been giv­en to 42,451.

*Food sup­port to peo­ple who ap­plied for Se­nior Cit­i­zens Pen­sion but their mat­ters were not de­ter­mined has been giv­en to 2,818 ben­e­fi­cia­ries.

*Food Sup­port to peo­ple who ap­plied for Dis­abil­i­ty As­sis­tance Grant but their mat­ters were not de­ter­mined has been giv­en to 488 ben­e­fi­cia­ries.

*Emer­gency ham­pers were pro­vid­ed to fam­i­lies in ur­gent need dur­ing the stay-at-home pe­ri­od. This project was ex­e­cut­ed in col­lab­o­ra­tion with the 14 Mu­nic­i­pal Cor­po­ra­tions and was dis­trib­uted to 1,400 ben­e­fi­cia­ries.

*Food Vouch­ers/Mar­ket Box­es pro­vid­ed to fam­i­lies, in col­lab­o­ra­tion with the Min­istry of Agri­cul­ture dur­ing the stay-at-home pe­ri­od have been gone to 24,999 ben­e­fi­cia­ries.

*Rental As­sis­tance to a fam­i­ly where a mem­ber was re­trenched/ter­mi­nat­ed/re­duced has been giv­en to 4,322 ben­e­fi­cia­ries.

The to­tal for all of these is $341, 125, 345.

CORE GOV­ERN­MENT GRANTS

Num­ber of Peo­ple on Grants June 2021 New Peo­ple in Fis­cal 2021

Dis­abil­i­ty As­sis­tance Grant (Chil­dren) 2558 561

Dis­abil­i­ty As­sis­tance Grant (Adults) 22,936 1,497

Se­nior Cit­i­zens’ Pen­sion 108,191 8,703

Pub­lic As­sis­tance Grant 18,021 2,146

Food Sup­port 30,939 4,897

To­tal 180,087 17,804

poverty


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