Combating hunger and poverty

Hardly ever does the media point out, in newspapers, television and radio news, the hunger and poverty that plagues the Third World countries. These sources of information are generally monopolised by the industrialised and technologically advanced countries.

But people coming from poor developing states have access to the way other people live in the more progressive countries that are able to generate wealth and provide enough means of support to their less fortunate people.

In today's world, a new problem is rearing its head - the flow of immigrants from poor African countries to the European states. The US experiences this flow from the poorer regions of Latin America.

Malta, too, is going through this new phenomenon coming from Africa. Other richer European countries are concerned as well. This mobility of people - without documents, with language barriers, unskilled, penniless - are distorting national economies as their support is unexpected and unprovided for in the yearly budget allocations.

The solutions provided are, broadly speaking, inadequate. Generally, the approaches are two: either repatriation or investigating claims for refugee status, both of which are costly.

In Malta's case the financial burdens are intensified because of Government's financial problems and its goals of solving the deficit and debt quandary.

Now Germany, too, is feeling the pinch and a proposal was made to set up immigration centres in African countries, particularly in Libya, and at the points of departure to European countries.

However, it is extremely debatable whether such an approach will provide the solutions needed.

Perhaps Spain's example of moving away from its former war allies and teaming up with countries and organisations that fight world hunger is laudable and offers better prospects for world peace and the alleviation of hunger and poverty.

The new Spanish Premier moved away from America's war alliance in Iraq from where he immediately brought back Spanish troops on the assumption of his duties. Instead, he has joined Brazil's campaign to fight hunger.

This holy alliance is made up of Chile, France and the UN, besides Brazil and Spain.

On the other hand, the US's idea of overcoming world hunger and poverty in developing countries is to allow greater elbow to the private sector that can provide the means required to those afflicted rather than allocating less than one per cent of GDP to this noble cause, as Brazil and the others in the newly formed group are proposing.

Surprisingly, the US, the engine of so much improvement in all sectors of economic and social activity, seems to be unable to perceive that wars do not resolve conflicts; impositions of this nature actually exacerbate matters, complicate civil life and generally lead to discord as well as disharmony.

It is a pity that such a great nation, the greatest believer in democracy and rule of law, fails to realise that a more lasting peace can be obtained through helping these nations break down their vicious circle of hunger and poverty.

True, within the US there are many institutions and voluntary organisations that cater for those people and nations that are caught in the hunger and poverty trap. The American fiscal system encourages philanthropic contributions by the private sector; and the federal state forks out huge amounts in financial aid.

But this aid is generally provided to the governments of these poor countries and, in many of the cases, does not find its way to the people.

Perhaps, rather than financial aid, what these people need is a broader base of education, dissemination of knowledge, training in useful skills, easy access to information and communication, inculcation of the entrepreneurial spirit so that latent resources are fully exploited.

These salient features are lost if there is no justice in the distribution of wealth generation, if the administration is based on prejudices or, worse still, if the leaders follow corrupt ways to enrich themselves.

To be effective, such developing countries need reforms but there should be linkages between policy reforms and the social impacts derived, particularly on the most vulnerable sections of the population.

It is very important that when policies are formulated within countries, quantitative exercises are taken up before and after the measures are introduced to evaluate how people in the lowest income brackets will be affected.

Taking into account the welfare of the silent people in all its aspects will certainly foster a greater environment of peace-loving people and a tendency to aspire to better times. This approach helps people work to better themselves even more. A new hope will be born.

In Malta the kind of absolute hunger and poverty that exists in very poor countries is not present. Of course, there is relative poverty; given this situation, social deprivation tends to follow on account of the persistent high unemployment rates and the fixation of introducing indirect taxation that fall hardest on the people least able to bear it.

What is heartening is that the present Government is conscious of that fact and, through the Malta National Action Plan on Poverty and Social Exclusion for 2004-2006, will be working hard to ensure that each person will participate in the generation of national wealth, enjoy the benefits derived and open opportunities for further personal improvement.

The plan is mainly based on making all people employable by increasing the participation rate in the labour market through the education process. In addition, it intends to reach out to the people in relative need through the welfare system.

There is no doubt that these are laudable goals and they can be marketed as all the points in the plan sound pleasant to the ear.

Politically, Government expects all the praise for the intensive studies and preparations that were needed for the finalisation of the plan. In addition, quite rightly, it expects co-operation for the attainment of its noble aims.

However, those who endure relative deprivation would certainly appreciate constructive criticism about Government's plan on poverty and social exclusion.

It is worth discussing three major points that actually do not form part of the plan:

¤ the introduction of the poverty line;

¤ the quantum of investment needed to ensure that the economy is capable of creating new employment opportunities; and

¤ an assessment of the social impact on the people who are in the lower income bracket and are likely to suffer most under the present tax regime.

It is believed that these three points should help make the plan more focused, more comprehensive and, significantly important, more effective. It is not how hard Government works or plans but what results are being achieved that matter.

If the plan is not focused and comprehensive, Malta will only be frittering away its energy and resources. Thus, it is useless to plan for greater female participation when investments are not there to create the employment opportunities.

Another important consideration is that of the immigrants. Given Malta's geographical size and limited resources, these immigrants, though not as large in numbers as those moving to Italy and Germany, are causing many institutional and financial problems.

Perhaps it is time for Malta to move a notch up and participate more in the international fora that deal with these matters.

Brazil's initiative in campaigning against hunger and poverty is praiseworthy. Spain and France, both EU members, were quick to join. Why not Malta? Malta will certainly enjoy spillover effects in many other sectors.

Dr Borda is an economist specialising in the economic development of small states.