Marshall Plan: Getting out of the poverty trap

According to statistics, there is an increasing number of Mauritians living below the poverty line. Despite measures announced by successive governments and the implementation of numerous plans, an increasing number of families fall into the poverty trap. What are the causes? How can the plight of those persons be improved? News on Sunday reports.

The Marshall Plan to fight poverty has not yet been published but a 'draft' version of the document was tabled on Tuesday 11 April at the National Assembly by leader of the opposition Mr Xavier-Luc Duval. The report says that a high proportion of the funds allocated to fighting poverty has been misdirected and made a series of recommendations to achieve this objective. 

The draft report, dated 4th March 2016, is divided into two parts. It notes that poverty has continued to increase over recent years. In 2011, 7.7% of the total number of Mauritian families were considered as living below the poverty line. At the last Household Budged Survey carried out by Statistics Mauritius in 2012, the rate was 9.4% of households. This means that over the period under investigation, there has been an increase in the number of households living under the poverty line from 23,700 to 33,600 households.

In 2012, families with monthly incomes of less than Rs 5,652 were considered to be in relative poverty. Now we are talking about a threshold of Rs 6,200. But the report points out that this sum “is inadequate to cover the basic needs of a family of four or more people.”

Revamping the NEF

The Marshall Plan, whose estimated cost of implementation is at Rs 2.5 billions for the first year, revolves around several themes: social protection, employment, education, housing, health and equality for all in all sectors of activity. It also redefines Corporate Social Responsibility (CSR) and proposes a complete revamp of the National Empowerment Foundation (NEF) which it says is “in total dislocation with reality.”

NEF's assistance programs are subjected to “inaccurate targeting and suffer from gross misunderstandings”. They are not "sufficiently in favour of the poor," says the report. Yet the NEF has the unique mission of helping the most vulnerable citizens through housing, child development, training and work placement. But as highlighted in the draft, the training provided are inadequate and do not serve the right people. Of the 2,418 people trained, only 259 were actually from poor families. Moreover, only 16% of people under job placement programmes were actually recruited. The report proposes that the NEF becomes a facilitator and be responsible to help the poor to come out of the poverty trap.

Education 

In 2013, the government had allocated Rs 750, as a social aid, to families receiving less than Rs 6,200 for each child, provided that it had at least 90% attendance at school during the school year. “So far, there is no tracking system,” highlights the report. So, people have been receiving this money without complying with the rules. The same applied for preschoolers in difficult areas. The establishments received a cheque of Rs 200,000 but there was no follow up to see what was done with the money.

Household expenditures 

The last statistics for household expenditure dates back to 2012. As per the figures, the average monthly household disposable income was Rs 29,360 in 2012 against Rs 19,080 in 2006/07, showing a 53.9% increase. Over the same period, the price of goods and services, as measured by the CPI increased by 33% and the average household size decreased by 5.4% from 3.7 to 3.5 persons. After adjusting for price increases and smaller household size, there was a real increase of 22.3% in the income of households.

According to Trade Unionist Jane Ragoo, in a survey done by the Confédération des Travailleurs du Secteur Privé (Private Sector Employees Union), for a family of four persons (mother, father and two children), the minimum household expenditure for food only is Rs 9,400 per calendar month. “Statistics have shown that 100,000 people live with a salary of Rs 5,500 per month. Among them, 85% are women. It is a deplorable situation.” 

Social housing 

The efforts in the field of social housing are positive and Mauritius is among the few African countries doing the same. One of the strength of Mauritius is that 90% of the families are home owners. If a family does not own a house, it can fall into poverty as rent is extremely high and a large part of the family budget goes into paying the rent. 

Recruitment of social workers 

The social contract of the Marshall Plan will cost Rs 1.3 billion and will be financed by the "gradual elimination of social assistance". The Social Register of Mauritius (SRM) is a crucial institution in identifying families in need and monitors their evolution. For consistency and visibility, it is proposed to group all the existing programs offered by the different ministries under the SRM.  

The report also stressed on the recruitment of more social workers for training so that they are able to mentor people who are in need. Today, an NEF social worker is responsible for 500 poor families. The report proposes to review the ratio to one social worker for every 150 families.

The creation of a Marshall Plan Community Scheme, managed by the NGO Trust Fund, is also on the agenda, as well as an extensive training and awareness campaign. The report also suggests that the private sector should be more involved and community initiatives should be encouraged. Similarly, the money raised under CSR should be channelled into the Marshall Plan Community Scheme.

Saajidah Dauhoo, SOS Poverty: “There is an increase in poverty”

The president of SOS Poverty, Mrs Saajidah Dauhoo, explains that the government had sought their help into drafting the Marshall Plan but unfortunately, there has been no follow up. “Following the draft, we have not heard anything from the government about the Marshall Plan. So it is difficult for us at SOS Poverty to say if it is feasible or not,” utters Saajidah Dauhoo.

She trusts that the plan can be evaluated only following its implementation. “A plan can seem viable on paper but it is only on the field and during implementation that we get to know if it is addressing the issue or not.” 

Saajidah Dauhoo trusts that the main investment that the plan should focus on is in the education field. “Education can break down the walls of poverty. If a child is deprived from it, then he/she is trapped for life. This is why we have invested in a nursery and a pre-primary school. We also offer academic follow-ups to poor children after school hours,” shares the president of SOS Poverty.

Mrs Saajidah Dauhoo explains that she has noticed a progression of poverty in the island. “This is due, I believe, to the increase in cost of life. The escalating prices of the most basic products such as food has left many families in difficult financial situations. Due to this we notice that even the middle class is disappearing. People are either becoming poor or they are becoming very rich. The gap is widening more and more. I thus believe that the government should review the prices of basic products.”

Eddie Sadien, social worker: “A timid approach till now”

Eddie Sadien, who has been on the field for years, utters that past as well as current government have had a timid approach to address the issue of poverty in the country. “Their approach has not been extensive. Instead, they have established some mechanism just to delay the issue. Are they are not aware of what is going on in the country? For example, the previous issue with the poor salary of women caretakers in Royal College Port Louis. It is only when we sent a letter to the concerned Ministry that the issue was addressed,” he says.

The social worker trusts that there are two types of poverty, namely social construction of poverty and the poverty of emotion. “Regarding the first one, it is created by politicians. The government has enabled the lay-off of people from work and then it comes forward to look out for solutions. What’s the use? The second type of poverty is what politicians suffer from,” he argues. Eddie Sadien also argues that the high income of Ministers is appalling compared to the meagre salary many employees derive. “This is what generates poverty,” he argues.

He also underlines that the problem of housing has continued to escalate over the years. “There has been a demographic explosion throughout the island. Many are living in ghettos, in crammed houses where promiscuity is increasing.” Eddie Sadien trusts that the capitalist system is the major cause of the poverty issue. “The Marshall Plan is unrealistic. It must take into consideration the social and the cultural aspects into consideration while trying to find solutions to combat poverty.”

Nizam Nasrullah, social worker:“Education is the key to fight poverty”

Social worker Nizam Nasrullah explains that he has noted an increase in the number of poor families in Port Louis region, namely in Vallée Pitot. His social group Naw-n-Sha Social Service, which operates in Vallee Pitot, has welcomed, since last year, more needy families looking for help to overcome their situation. 

“Due to the implementation of laws regarding street vendors, many families are no more capable of making both ends meet. This has a major impact on children who have to stop their studies due to lack of funding or to help their parents at home or start working to support their families,” he explains. 

Nizam Nasrullah trusts that education is the key to fight poverty. “This is the major weapon with which we can fight against poverty. For example, there are children who are smart and good at studies but they cannot pursue their studies due to lack of finances. There is this one case where we help a boy pursue his studies up to School Certificate. Today, he is working as a pharmacist and he receives a decent salary. If we do not help children in their education, they will fall in the vicious circle of poverty.”

To curb poverty, says Nizam Nasrullah, the government has to invest massively in education. The social worker also underlines that the second field in which the government should invest to curb poverty is housing. “It is vital for families to live in a healthy atmosphere and a house which is in proper state. We have helped many families who had been living in poor conditions. I trust that the government should, through the Marshall Plan, empower families in those ways,” he utters. 

The social worker adds that the government should also review the basic salary of workers. “We, social workers act as a bridge between the government and those down the ladder. The government must thus, according to me, seek advice and consult social groups and social workers to know how the issue can be handled.”