"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
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.
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.
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