Distribution of `so-called oil money’ could be disincentive to poverty reduction initiatives

Dear Editor,

In a previous letter, I touched on the question of poverty which the avid newspaper reader may ask why focus attention on this issue again. Simply put, poverty, a lingering enigmatic socio-economic societal disease, captured the attention and concerns of authors of various persuasions for centuries. Poverty, throughout history, unfolded in a complex array of dynamic societal problems with varying manifestations among people of all ages, all races, and ethnicities. In this regard, Guyana is not an exception. An examination of Guyana’s newspaper reports reveals claims and misrepresentations of the level of poverty within the country, misrepresentations based on Western methodologies, or United Nations criterion of annual average income – analytical models with questionable conceptualizations and portrayals of poverty. This is not to deny, or underplay, the existence of poverty within Guyana.

 Utilizing income as the sole indicator of poverty, then the majority of Guyanese would readily be characterized as poor. This begs the question as to whether the experts on poverty ever factored into their analyses, or even considered the various ways – income included – by which Guyanese truly earn a living? Most of Guyana’s poor, if asked, would readily admit the loss dignity in a state of poverty. Aware of the negative stereotypes of those considered poor – laziness, uneducated, worthless, shameless etc., – many Guyanese become conflicted about the characterizations of low-income families. Despite the negative perceptions, the vast majority of Guyana’s poor work, either for daily wages, fish, farm, or perform tasks requested by people within the community. Those unable to adequately provide for themselves, or their families, customarily explore opportunities for relief from their temporary deprivations, or request assistance from friends and family members.

Cognizant that poverty cannot be fully eradicated, the PPP/C government embarked on various approaches in its campaign to reduce this persistent societal problem. Unless one exists in a state of denial, then he/she would accuse the government of not addressing the problem of poverty. For, already underway towards the reduction of the poverty, the government distributed house-lots, houses, granted small business loans, improved health and education, increased retirement benefits and old age pensions, cash assistance, and distributed fertilizer to farmers etc. The above initiatives appear to be circumscribed by Guyanese expectations regarding the distribution of oil revenue to individual citizens. Such expectations present a dilemma for the government, especially since income accrued from oil accumulates gradually, and regularly prioritized for essential national development projects including poverty reduction initiatives.

The distribution of so-called, oil money” could be a disincentive to Guyana’s poverty reduction initiatives, and socio-economic stability. As Nobel Laureates Abhijit Banerjee and Esther Duflo pointed out in their book “Poor Economics,” when the poor “have more money,” they spend it on “better tasting food” and other material acquisitions. As they summed it up: “Generally, it is clear that things that make life less boring are priority for the poor. This may be a television, or a little bit of something to eat-or just a cup of sugary tea.” Such neo-consumption patterns cannot be reversed in today’s Guyanese society where the prevalence of technological propagandizing advertisements lure people into believing that their cultural norms, consumption patterns, and lifestyles exemplify an existence of backwardness.

Modern technology, cell phones and iPads, and consumption of fast foods have permeated every nook of Guyanese society. Guyanese of every income level have accommodated to such material acquisitions and lifestyles. And, why not? Should a portion of the population be denied these wants because of poverty? This question brings to the fore the complex dynamics, understanding, and perceptions of poverty – an elusive and pervasive societal problem. Numerous scholars, biographers, novelists, and social critics, who have studied, or written about poverty, emphasize the value of education as most beneficial in the reduction of this historical-universal societal problem. As the Chinese philosopher Lao Tzu once said, “Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” Lao Tzu’s quote exemplifies education as an indispensable resource in the preparation of individuals for productive lives.

However, it should be acknowledged that formal education takes years, and tied primarily to deferred gratification. Hence Guyana’s policy makers need to focus on a balance between formal and informal education, and its relations to national occupational needs, and linkages to poverty reduction. By education is meant not only academic training, but also the acquisition of vocational skills. Hence, the PPP/C government may find it beneficial to utilize financial incentives – instead of “free oil money” – as subsidies to the poor desirous of apprenticeships in the various vocations that facilitate the transference of skills/know-how. Incentives could also be extended to sugar cane labourers, small farmers, and fishermen. In general, incentivized work-opportunities need not be prolonged, and should be centered on positioning the poor on wage-earning paths, occupational endeavours that provide opportunities for Guyanese to work their way out from poverty to dignity and thereby reduce the probability of transferring generational poverty.

In serious consideration of the foregoing, it should be noted that the promulgation of well-intentioned poverty reduction policies alone, without an efficient and effective articulation and monitoring system, would not contribute meaningfully to reducing the poverty gap. In fact, it could widen the poverty gap by preferential awards to those knowledgeable about accessing and exploiting governmental assistance. Hence it would be beneficial to the PPP/C government to consider establishing an impartial oversight system that objectively evaluates compliance with the intent, and efficiency and effectiveness of governmental policies on poverty reduction. As Mahatma Gandhi eloquently quipped, “Poverty is the worst form of violence.” I wonder what Guyana’s policy makers think.

Sincerely,

Narayan Persaud, PhD

Professor Emeritus