<$BlogRSDURL$>

2005-05-04

Poverty relief - local and global 

I want a comprehensive political programme that addresses the issues of national poverty relief in a high-income country with measures and frameworks that are consistent with an interconnecting strategy of poverty relief on an absolute, global scale.

Typical counter-examples:

To ask for globally or regionally homogeneous taxation and labour regulation reduces an opportunity that less developed economies have, although it may relieve pressure on less qualified workers in rich countries.

Trade restrictions such as customs duties on mass-produced goods may relieve pressure on less qualified workers in rich countries, but deny an opportunity to underdeveloped economies.

---
Scratchpad: Every financial subsidy that is distributed to a subset of the poor without an equivalent increase in their productivity worsens their competitive position in the global labour market against those who don't receive the transfer, since work now makes sense only at a higher wage for the beneficiaries. The subsidy will only lead to a sustainable improvement for the beneficiaries if their position is simultaneously strengthened by an equivalent gain in productivity. However, if a poor and unemployed man gets a subsidy of 10000 euros, he will not complain about his loss of competitiveness, and even if he goes on to spend the entirety of his new capital on chips and beer, he will not complain about having received the money to start with. There is a gain, but it is not sustainable. Conclusion: empowerment, education, and promotion of job creation as the more important part of poverty relief? The financial subsidy only as a psychological stimulus that is part of empowerment? Obviously this applies only to participants of the labour market, for all other poor the financial subsidy is unproblematic, including those in a labour market with for example 70% unemployment rate as well as those who are ultimately unable to find or keep work.


0 comments:
Post a Comment

Back to Main Page
This page is powered by Blogger. Isn't yours?