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Alberto Fernández, Cristina Kirchner and Sergio Massa leave power with a poverty rate close to 45%

2023-12-05T07:38:02.143Z

Highlights: Poverty among children under 17 reached 62.9%. In the third quarter of this year, poverty reached 44.7% of the population. There are 8 million children and adolescents living in poor households, of whom 2.1 million are destitute. The poverty rate would rise to 49.1% without the AUH (Universal Allowance) and other social programs, says the UCA. It follows that such State aid succeeds in reducing poverty, but not in reducing indigence.


The measurement is as of September of this year and was carried out by the Social Debt Observatory of the UCA. Affects 20.8 million peoplePoverty among children under 17 reached 62.9%


In the third quarter of this year, poverty reached 44.7% of the population. There are more than 20.8 million citizens who suffer from this condition, if that percentage of the Social Debt Observatory of the UCA (Argentine Catholic University) is projected to the entire country, including the rural population. Of that total, 9.6 percent -- 4.4 million people -- are destitute.

These data are slightly higher than the INDEC, which for the second quarter showed 41.1% poverty and 9.8% indigence for the second quarter of this year.

Meanwhile, poverty among children under 17 years of age reached 62.9%, of whom 16.2% live in indigent households. There are 8 million children and adolescents living in poor households, of whom 2.1 million are destitute. Given that inflation has skyrocketed since October, it is quite possible that poverty will exceed 45% by the end of the year

On the other hand, 32.2% of these children under 17 years of age experienced situations of "food insufficiency", a percentage that rises to 64.5% among the segment of households with the highest extreme poverty.

In releasing these data, Agustín Salvia, director of the UCA Observatory, explained that as long as stagflation lasts and until there is a positive exit from the adjustment phase that is coming, during the next year poverty will continue to increase, even if state aid to the poorest families is maintained

Salvia pointed out that the post-convertibility economic cycle concluded that "through the pro-market model or the pro-State model, structural barriers to productive growth and social development increased." And if this situation continues, there will be "new poor due to the decline of the lower middle classes, more structural poverty and greater dependence of extreme poverty on public assistance." Also "growth of informal work and the social subsistence economy and deterioration of health, education and access to justice for the poor".

Among the factors that explain the rise in poverty – it went from 28.2% in 2017 to 39.9% in 2019 (Macri government) and 44.7% in 2023 (government of Alberto Fernández and Cristina Kirchner) – the UCA report points out that "between 2017 and 2023, wages fell dramatically: the purchasing power of labor income fell 32.1% in the wake of inflation and prolonged recession. In a context of falling unemployment, a new figure appears: the working poor." And it details: "in 2023, 33.1% of employed people have low incomes (incomes below the individual poverty line) and 32.5% live in poor households".

Of those living in poor households, 41.9 per cent are in the micro-informal sector, 28.2 per cent in the public sector and 16.3 per cent in the formal sector.

As of the third quarter of 2023, the median labor income fell from $249,689 in 2017 to $169,454 in 2023 (-32.1%) and those with full employment from $371,901 to $249,687 (-32.9%).

Full employment comprises 40.4 per cent of the employed population, but covers only 12.7 per cent among the lowest-income sectors and 76.2 per cent in the upper-middle segment.

At the same time, the employed population. 51.9% do not have Social Security contributions, a percentage that rises to 83.3% among the 25% with the lowest incomes.

The report recognises that "low incomes and the risk of poverty are very differentially distributed. People who work in the informal sector and those in precarious jobs or unstable underemployment are the most affected, doubling or tripling the average risk."

The 44.7% poverty rate would rise to 49.1% without the AUH (Universal Child Allowance) and other social programs, and indigence would jump from 9.6% to 20.1%. It follows that such State aid succeeds in reducing indigence, but not in reducing poverty.

For this reason, in relation to the impact of State aid measures, the UCA Report points out that "the high level of incidence of income transfer policies and direct food assistance among the most disadvantaged sectors is not sufficient to prevent the socio-economic situation from deteriorating or below adequate subsistence conditions. This points to the limitations faced by social policies in Argentina in order to reverse the deterioration of living conditions in a lasting way."

The report provides the following additional information:

• 41.3% of the population lives in households that received some social assistance linked to income transfers (Food Program, Non-Contributory Family Allowances, Employment Programs, etc.).

• 24.2% of the population stated that they had received a bag or food from non-school canteens at home.

• In both types of aid, it is in low-income households, with educational deficits and in conditions of poverty and/or food insecurity, in which a greater scope of social assistance is evident."

Source: clarin

All business articles on 2023-12-05

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