Monday, January 2, 2012

The Poor Does Not Have to be With Us Always

Can We End Poverty in Jamaica?
Basil Waine Kong

I was amused to learn recently that the winners of the US$250,000,000 Powerball lottery were three millionaires (asset managers) in Connecticut. It started me thinking about how and why the rich get richer and the poor get poorer. I am also thinking of the gentleman who prayed fervently but futilely every day for God to bless him so he could win the lottery. Finally God had to speak directly to the gentleman: “If I am going to help you win the lottery you should at least buy a ticket. I can only help those who help themselves.”

A year ago, a country gentleman told me that his father advised him that going to school was a waste of time and that as long as he could dig a yam hill he would be fine. So, for fifty years, he has been cutting cane and planting his ground on an acre of land he rents---never expecting to own his own land. Not even in his dreams could he see himself owning adequate tools of his trade, a house, a tractor or even a bicycle. I now learn that illiterate persons will no longer be allowed to participate in the Government's overseas farm work program. According to Minister of Labour, Derrick Kellier, persons applying to pick fruit and plant beans in Canada must know how to read, write and do arithmetic. What is the future of the twenty percent of Jamaican citizens who cannot read or write? Do we just blame the victim and move on?

My fervent prayer is for the poor to get richer. But my wise friend and golfing buddy insist the rich have all the luck. I tell him that that the harder I practice and work at my game, the luckier I get. While it is a common occurrence for rich children to turn out to be worthless bums and a few children from poor families become accomplished heroes and stars. In the absence of people with extraordinary talent and discipline, as a rule it doesn’t happen often. Babies of the rich are fed delicious and nutritious meals with silver spoons, exposed to the movers and shakers of society as they grow up, go to the best schools, have access to effective healthcare, get tutors to help them learn how to handle their knife and folk, play a musical instrument and to excel in sports, travel, learn to speak eloquently, dress to impress, have their choice of employment from their extensive network of family connections and then they win the lottery. On the other hand, the poor child face daily struggles to get a plate of food each day in single parent households, crime, may or may not go to school, survive by catering to the rich, sleep on the hand ground with a rock stone for their pillow, hustle to make a living and die ten years before his rich counterpart only because he was born at the wrong address.

Will the poor always be with us? Several countries including several the size of Jamaica (Singapore, Botswana, Bermuda, Kuwait, and Oman) have now wiped out poverty. That’s right---no poor people. Everyone has a floor they can comfortably live with. What do these countries have in common?

Two Harvard professors (Acemoglu and Robinson) did an analysis of two cities and wrote:
“In Nogales, a city cut in half by the Mexican-American border fence. There is no difference in geography between the two halves of Nogales. The weather is the same. The winds are the same, as are the soils. The types of diseases prevalent in the area given its geography and climate are the same, as is the ethnic, cultural, and linguistic background of the residents. By logic, both sides of the city should be identical economically.

And yet they are far from the same.

On one side of the border fence, in Santa Cruz County, Arizona, the median household income is $30,000. A few feet away, it's $10,000. On one side, most of the teenagers are in public high school, and the majority of the adults are high school graduates. On the other side, few of the residents have gone to high school, let alone college. Those in Arizona enjoy relatively good health and Medicare for those over sixty-five, not to mention an efficient road network, electricity, telephone service, and a dependable sewage and public-health system. None of those things are a given across the border. There, the roads are bad, the infant-mortality rate high, electricity and phone service expensive and spotty.”


The key difference is that those on the north side of the border enjoy law and order and dependable government services — they can go about their daily activities and jobs without fear for their life or safety or property rights. On the other side, the inhabitants have institutions that perpetuate crime, graft, and insecurity.”

Jamaica has fourth-highest poverty rate at 43.1 per cent compared with our 23 regional neighbours and according to the IMF over one million Jamaicans live on less than US$2.50 per day. Is it possible for our politicians to accept the fact that what we have been doing is not working and our government and bureaucracy is causing poverty? Can we join together and establish a national mandate to reverse it?

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