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Poor Europe. The Problem of Poverty in Chosen European Countries - ebook/pdf
Poor Europe. The Problem of Poverty in Chosen European Countries - ebook/pdf
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POOR EUROPE The Problem of Poverty in Chosen European Countries NR 3372 POOR EUROPE The Problem of Poverty in Chosen European Countries Edited by Grzegorz Libor, Dorota Nowalska-Kapuścik Wydawnictwo Uniwersytetu Śląskiego • Katowice 2015 Editor of the series: Socjologia Wojciech Świątkiewicz Referee Anna Śliz CONTENTS Introduction / 7 Griet Roets, Rudi Roose, Johan Vandenbussche, Tineke Schiettecat, Michel Vandenbroeck Belgium / 15 Maria Jeliazkova Bulgaria / 41 Zdenko Babić, Danijel Baturina Croatia / 59 Gill Main England / 87 Heikki Hiilamo, Juha Mikkonen Finland / 109 Stefán Ólafsson, Guðný Björk Eydal Iceland / 127 Rose Marie Azzopardi Malta / 145 Dorota Nowalska-Kapuścik Poland / 165 Daniela Sime Scotland / 177 Contents 6 Nada Stropnik Slovenia / 193 Montserrat Simó-Solsona Spain / 213 Monica Budowski, Maurizia Masia, Robin Tillmann Switzerland / 235 Grzegorz Libor Wales / 259 Conclusions / 271 INTRODUCTION Europe is one of the richest continents of the modern world. In 2009, taking ad- vantage of the financial crisis that hit hardest the United States, Europe overtook its main competitor, accumulating in its resources the largest assets of the world. The report published by The Boston Consulting Group entitled “Wealth of the World 2009” indicates that due to the crisis the United States has lost about 22 of them, which was over 8 billion dollars. It means that today the value of all assets that have remained in the hands of US investors is 29,3 billion dollars, while their European counterparts have accumulated the assets worth over 32,7 billion dollars (The Boston Consulting Group 2009). However, despite this optimistic news everyday practice gives us a slightly dif- ferent picture. Seventeen percent of the European population is not able to meet basic living needs. Moreover, taking into account the fact that poverty, according to wide range of available definitions, can take and actually takes different forms the problem seems to be growing. As the most recent data of European Statistical Office (Eurostat) show, the phenomenon of poverty and social exclusion affects nearly 125 million EU citizens (24.8 )! The figures are alarming; hence it is not surprising that the problem of poverty, in addition to unemployment, with which it remains in strong correlation, is one of the main points on a long list of difficulties and challenges facing Europe today. Of course, not all its regions are exposed to the problem of poverty to the same extent. Poverty is one of these problems which are strongly differentiated when it comes to their territorial characteristics. Nevertheless, it does not mean that there are countries for which social exclusion and poverty are completely unknown. The most difficult situation occurs in Bulgaria, Romania, Spain, Greece, and Lithuania, while the greatest differences in incomes are recorded in Spain, Latvia, and Bulgar- ia. More or less in the middle of the scale of not only the risk of poverty but also the spread of income (Federal Statistical Office 2010) are Ireland, Germany, and Malta. Austria and the Czech Republic seem to be in the most privileged situation. 8 Introduction This picture cannot, however, be regarded as a complete reflection of reali- ty. Nonetheless, as in the case of any other social phenomenon, there is reason to believe that statistical data do not always reflect the scale of the problem. Beside actual figures there is always individual, subjective perception of being at risk of poverty and social exclusion. The research carried out by the European Commis- sion show that the average citizen of the European Union is not only afraid of pov- erty, but also says that this problem affects 39 of people in his or her immediate surroundings. That is why preventing poverty and social consolidation policy fo- cused on the development of appropriate methods of dealing with poverty, as well as constant collection of data illustrating the progress in realizing the objectives, now have a privileged position among different activities taken within economic and social policy of the European Union. The main goal of this publication was not only to collect the articles recog- nizing the phenomenon of poverty in selected European countries, but also to use a comparative and multidimensional approach to identify the most important transformations taking place in this field in the whole Europe. Moreover, we still have the impression that there is a serious deficit of such studies in the publish- ing market. This encouraged us to contact European experts, specialists, and sci- entists with a request to prepare reports on the problem of poverty and social ex- clusion in their own countries. Finally, the publication contains the analysis of the following countries: Belgium, Bulgaria, Croatia, England, Finland, Iceland, Mal- ta, Poland, Scotland, Slovenia, Spain, Switzerland, and Wales. The first article written by Griet Roets, Rudi Roose, Johan Vandenbussche, Tineke Schiettecat, and Michel Vandenbroeck concentrates on the example of Belgium. Although Belgium is one of the richest countries in Europe, poverty is a reality for an important part of the Belgian population. Although the amount of people in poverty remains rather stable, a growing number of people expe- rience difficulties to make ends meet. In this contribution, two dimensions of social policy in Belgium, and more specifically in Flanders, are discussed, that is, user participation and combating child poverty. Using the analytical frame- work on social justice by Nancy Fraser, it is argued that these anti-poverty strat- egies risk depoliticizing the social problem of poverty in policy and practice. The idea of user participation and fighting child poverty are implemented in such ways that citizens struggling poverty have to learn to cope with individu- al psychosocial effects and empower themselves as a result of living in poverty rather than that the welfare state challenges and tackles oppressive power rela- tionships, structural social inequalities and injustice rooted in the political-eco- nomic structure of society. Although both user participation and combating child poverty happen under the cover of empowering the poor, oppressive pow- er relationships and social inequalities in Belgian society tend to remain out of the picture and the responsibility, for fighting poverty seems to be easily indi- vidualized. Introduction 9 Another article, prepared by Maria Jeliazkova, discusses poverty in Bul- garia—basic dimensions, generators, consequences, and appropriate policies. High levels of poverty of various vulnerable groups, including working people and retir- ees with 40 years of service question the ability of the current social policy meas- ures to overcome the widespread poverty through fragmented and focused on the deep poverty pockets measures. The article argues that the main poverty genera- tors are the policies of distribution and redistribution, which increase inequalities and squeeze huge groups of people on the fringes of society. Widespread poverty in the country is human made and socially constructed. Enlightened pro-develop- mental strategy is necessary to combat poverty, to terminate the operation of the extracting in private group interest institutions, and to stimulate socio-economic dynamics based on common interest. The article written by Zdenko Babić and Danijel Baturina gives an overview of the characteristics and ways of fighting poverty in Croatia. The first part focus- es on demographic-social-spatial characteristics of poverty. First, the authors look at the researches about poverty in Croatia during the socialist period and in first years of Croatia independence. After that the article proceeds to show the risk of poverty rates since the start of the official measurement of poverty in 2001. In ad- dition, the authors observe statistically data that give them an insight into the state of poverty by socio-demographic characteristics such as gender, age, education, size, and economic activity of the household. Also, they analyze their previous re- search on subjective poverty, briefly describe the impact of the economic crisis and identify new potential groups in risk of poverty. In the second part of this paper, Zdenko Babić and Danijel Baturina focus on the measures and programs to com- bat poverty in Croatia, and also their hitherto effectiveness. Special attention was drawn to the development of strategic documents in the context related to pover- ty. They have also considered the status of economic development and particular- ly looked at social transfers and other possible tools for combating poverty in Cro- atia. The conducted analysis provided the authors of the article with an integrative view of poverty trends by different aspects and (in) effectiveness of anti-poverty strategies and programs which are aimed at poverty alleviation in Croatia. The problem of poverty in England was depicted by Gill Main. England, along with the rest of the United Kingdom, was part of the sixth-largest economy in the world (as of 2013), and the third largest in Europe after France and Germa- ny. Given this, its relative income poverty rate of 16 (based on the percentage of the population with a household income below 60 of the equivalized medi- an), placing the UK 14th out of the EU countries for which there was relevant data, is a cause for concern. Clearly, high levels of wealth are not translating into high standards of living for all. The work of several pioneers in the study of pover- ty in England has informed the politics and measurement of poverty in the coun- try. This article begins with providing a brief history of anti-poverty policy and the measurement of poverty in England. It proceeds to examine current political 10 Introduction debates around poverty. Finally, data on poverty rates and risk factors in England from the largest-scale study of poverty in the United Kingdom to date—the 2012 UK Poverty and Social Exclusion Study—have been presented. In another paper, Heikki Hiilamo and Juha Mikkonen focus on the extent and nature of the poverty problem in Finland. Towards the end of the 1980s, the gold- en years of the Nordic welfare state, poverty was almost eradicated in Finland. The deep recession in the early 1990s increased unemployment dramatically and thus led to cuts in social benefits. The following years of rapid economic growth did not lift all the boats. Finnish NGOs began delivering food assistance to the individu- als in need. Relative poverty rates continued to increase and long-term unemploy- ment became a persistent social problem. The global recession that began with the advent of 2008 aggravated the poverty problem (OECD 2011). From a compara- tive perspective, poverty rates in Finland are still lower than in many other EU and OECD countries. The future challenge for poverty alleviation in Finland is to fight long-term unemployment and provide adequate assistance to those who are ex- cluded from the labor market. The article prepared by Stefán Ólafsson and Guðný Björk Eydal profiles the extent and characteristics of economic poverty in Iceland. The outcomes are ex- plained with references to the redistributive characteristics of the Icelandic welfare state and the high level of work participation of Icelanders, including members of groups that are generally at considerable risk of falling into poverty. Iceland has a low level of relative poverty as well as a low level of severe material deprivation. At the same time, Iceland has not as low a level of households experiencing great difficulty in making ends meet. In fact, this measure of financial hardship places Iceland at a higher level than the other Nordic nations. This higher level of com- plaints may be due to a high level of debt burden (associated with a high level of home ownership in Iceland). The greater reliance on employment participation for maintaining their living standards may involve generally tighter financial situation in Icelandic households. The financial crisis that hit Iceland exceptionally hard in the autumn of 2008 greatly increased the feelings of financial hardships, with the proportion of households complaining about great difficulty in making ends meet more than doubling. Still the levels of relative poverty and severe material depriva- tion were kept at a low level by international standards. The author of the subsequent article Rose Marie Azzopardi analyzes the pover- ty situation in Malta. She presents data to explain and understand the scale of the problem. Poverty tends to be more pronounced at certain ages (children, youths, and the elderly), particular vulnerable groups (such as single mothers and immi- grants), and can also be geographically clustered. Over the past years, poverty has continued to increase rather than decrease, even though the social security sys- tem is considered to be a generous one. However, there are different factors lead- ing a person into poverty, or not allowing this person to exit poverty. Education and employment are best policies to activate towards the minimization of poverty. Introduction 11 However, other issues such as housing, access to societal resources and opportu- nities, are factors which need to be tackled within a longer term perspective. The Poverty Green Paper launched in 2014 takes such a multifaceted dimension. Fur- thermore, the budget for 2015 with the message of “creating possibilities and not dependencies,” seems to be the first step towards a new direction of changing at- titudes within society and targeting certain groups. It is hoped that the strategies, and apparent dedication of professionals and volunteers working in the sector, can eventually work for the benefit of the more vulnerable individuals within Maltese society. Poverty in Poland was described by Dorota Nowalska-Kapuścik. The article at- tempts to systematize the data on the extent and characteristics of the Polish di- mension of poverty. The first part of the article was devoted to theoretical con- siderations, defining the analyzed phenomenon and identifying the key, from the point of view of Polish law, ways of looking at the problem. The following part pre- sents the basic data reflecting the geographic and demographic diversity of pov- erty over the last several years in Poland. The author also depicted the key stra- tegic actions taken by the Polish government (focus on preventing poverty), and non-governmental organizations providing assistance to the poor. Another country depicted in the publication is Scotland. Its author, Daniela Sime, gives an overview of current developments and approaches to tackling pov- erty and social inequalities in Scotland and examines how the problem of pover- ty has been reflected in current welfare debates, which were central to the Inde- pendence Referendum which took place in Scotland in 2014. Scotland is a small country, with a population of just over 5 million people at the last Census in 2011. The last fifteen years have seen a profound transformation in Scotland’s political landscape. Since the devolved Parliament established in 1999, the issue of a ‘fair- er Scotland’ which could break away from the Westminster-based Parliament and manage its own resources, has remained a constant aspect of political and public debate. Poverty rates in Scotland remain higher than in other European countries, with about 20 of its population living in poverty, despite the country being one of the richest among the OECD countries. When compared with other small Eu- ropean countries like Denmark, Norway, and Netherlands, where only about 10 of people live in poverty, the situation in Scotland has often been described by pol- iticians and activists as “shocking” and “unacceptable.” The paper about Slovenia was prepared by Nada Stropnik. According to the researcher the relative poverty risk has increased by more than three percentage points in Slovenia since the start of the global financial and economic crisis, but is still among the lowest in the EU-28 (14.5 in 2013), particularly for children (14.7 ) and the working-age population (13 ). Serious austerity measures were implemented only in June 2012, but the most vulnerable children (families with children) have been exempt from cuts in entitlements. The decline in econom- ic activity has strongly and disproportionally affected young people (aged 18–24 12 Introduction years) in particular. Their risk of poverty has almost doubled in the period from 2009 to 2013 (from 7.7 to 14.2 ). In the last decade, the at-risk-of-poverty rate for persons aged 65 years and over has been oscillating close to 20 , which is one of the highest rates in the EU-28. The pensioners’ socio-economic position has been worsening since the pension reform implemented in 2000 and also due to a decline in the real value of pensions as well as the 2012 social benefits re- form. The effectiveness of social transfers is evident from a considerable differ- ence between pre-transfer and post-transfer (pensions not included) risk of pov- erty: 25.3 and 14.5 , respectively, for the total population of Slovenia in 2013. Another paper written by Montserrat Simó-Solsona is about poverty in Spain. The social structure in Spain, among other factors, is being fragmented by the im- pact of poverty. This social problem is not new but is especially important in times of crisis, when figures have soared and extended towards groups of population that have been safe until now. The downward spiral towards poverty and social exclusion is closely related to the present economic recession featuring high un- employment rates and low-payed jobs. Furthermore, the housing market has also become a trap that has impoverished families far away from guaranteeing such ba- sic needs as accommodation. The social policies implemented within the frame- work of the Spanish welfare state cannot combat the poverty rates. These policies have had a shock-absorbing role, but they are not enough to face up to the austeri- ty strategy implemented by the administrations. In conclusion, this situation pos- es a social problem today, but it will also determine the future generations of the country. The article elaborated by Monica Budowski, Maurizia Masia, and Robin Till- mann presents a cursory overview of poverty research and poverty policies in Switzerland. The Helvetian peculiarity in comparison to other countries is the lack of a uniform national poverty research and national poverty policy. This particu- larity is explained from a historical perspective. The increase in social assistance provided to the recipients in the mid-1970s, after a long period of continuous de- cline, triggered research on poverty. In the course of its development and differen- tiation over time, five stages of poverty research with different perspectives were identified. The different stages give rise to corresponding policy measures: first group-specific instruments and social welfare (in particular social assistance) fol- lowed by a more broad approach that takes into account the varied conditions of life. Research on the dynamics of poverty leads to a greater focus on the im- portance of employment and the work-life/work-family policies (minimum wage, child-care). Research on wealth points towards issues of taxation. Given the lack of a uniform national policy, the Swiss approach to deal with poverty is broad and takes into account various policy fields: from social insurance and social assis- tance across minimum wages and contracts in the field of labor market policies to the field of culture policies addressing social exclusion. The paper concludes with challenges Switzerland faces in terms of research and policies. Introduction 13 Last but not least is the article on Wales prepared by Grzegorz Libor. Its main aim was to depict the problem of poverty in Wales which seems to be quite par- ticular, taking into account the limitations imposed by the power devolution phe- nomenon on the capabilities of both the Welsh government and National Assem- bly for Wales in fighting against its negative consequences and sources. Devolution not only made their creation possible but also provided them with some compe- tencies that are still quite different from “normal” and leave much to be desired. Under these exceptional circumstances the Welsh authorities must deal with vari- ous problems, for example those resulting from poverty. Here the most important issues are child poverty and a high level of economic inactivity of Welsh inhab- itants. Because of the abovementioned legal barriers the Welsh government pre- pares all its strategies assuming the participation of NGOs which are not depend- ent to such type of restrictions. Although we are aware of significant definitional differences and various per- spectives illustrated in this book we perceive them rather as its strength, not as its weakness. We believe that the methods used to prevent and reduce the negative ef- fects of poverty in different regions of Europe depicted in this book may serve as inspiration to take similar actions in other parts of Europe. We hope that the presented considerations will find their continuation in prac- tical terms as a point of departure for activities involving not only scientific and ac- ademic institutions, but also governments, NGOs, and other actors for whom the problem of poverty is not indifferent. We would like to extend special thanks to Professor Anna Śliz from the Uni- versity of Opole for the revision of our publication and all remarks. We would also like to give special thanks to Professor Andrzej Noras, Vice-Dean for academic matters in the Faculty of Social Sciences at the University of Silesia, for organiza- tional support. This book would not have been complete without the technical and linguistic effort of employees of the University of Silesia Press to whom we would like to express our gratitude as well. The Editors CONCLUSIONS Globalization which has led to homogenization and unification in many areas of human life does not still cover all of them. Undoubtedly, one of the best exam- ples of these can be income inequality as well as a number of social problems, be- ing its results more and more visible almost everywhere in the world, also in the case of European countries so far perceived as a collection of communities, strong- ly emphasizing the need to improve the social nature of the market economy. The most important reasons for this seem to be rapid changes being the aftermath of economic and social crises, as well as malfunctioning of the systems of resourc- es redistribution. As a result, this type of inequality takes a disharmonic form: on the one hand, there is a small group of those who concentrate most of the world’s wealth in their own hands, on the other hand, an innumerable multitude of the poor, which only confirms a necessity to constantly look at the ways European countries integrate in dealing with the problem of poverty and social exclusion, as well as with changing economic and social conditions. The anti-poverty and social exclusion policy in Europe is not a new phenom- enon, over the years it has been an essential element of raison d’être for many na- tional and supranational organizations and institutions, including the European Union. It suffices to mention such documents as the Treaty of Amsterdam (1997), the Lisbon Strategy (2000), Nice Objectives (2000), Memorandum on Social Inclu- sion (2001), Community Action Programme to Combat Social Exclusion (2002– 2006), Social Policy Agenda 2006–2010, as well as the Europe 2020 Strategy, which put the problem of poverty and social exclusions first. However, despite nearly two decades of integration around the problem of poverty and social exclusion, Europe has failed to develop a common action strategy, based on the idea of open coordi- nation. For that to happen it is advisable to monitor the phenomenon of social ex- clusion and poverty in different European countries on the basis of both statistical data, as well as more subjective, often informal description of the condition of the population of individual region or country. 272 Conclusions It is hard to harmonize mechanically the scope or the ways of recognizing pov- erty; the situation of each country is different, that is, determined by different so- cio-economic capital as well as different pace of development. What is more, there are demographic, cultural, and political differences too. Regardless of the existing variations between the European countries, they share a common goal which is to create such conditions for the development of their societies to reduce the number of people at risk of or affected by poverty, or at least inhibit the growth of further groups struggling with this problem. However, what integrates many-faceted Eu- rope are the consequences of poverty and social exclusions, such as: suppression of social progress, lack of cohesion, and socio-economic development of individu- al countries, deepening of social inequalities, an increase in pathological phenom- ena, threats, as well as difficulties in maintaining social order and transmission of poverty or unfavorable patterns of behavior from generation to generation. The intention of the editors of this publication was to create a platform for the exchange of experience (or perhaps a platform of inspiration?) and confront di- verse Europe. Not without reason to participate in the project were invited repre- sentatives of social sciences, such as sociology, social work, and social policy. We believe that these issues are so crucial that these disciplines cannot remain indif- ferent to them. Although it is assumed that the development of programs to coun- ter the negative effects of poverty is a matter of politics and politicians, then ac- ademia still can, or even should, to a greater extent than before, make efforts to depict social transformations, look for dependencies, and also indicate social con- sequences of the changes observed. It is, however, not to mention other disciplines, such as for example economics, whose absence here is not a matter of chance; rath- er, it should be seen as an argument for further comprehensive, interdisciplinary analysis of the problem in which we strongly believe. On the basis of the articles presented in this book we have come to some inter- esting conclusions which indicate the presence of substantial similarities between given countries, but also some differences in the perception of poverty and social exclusion, as well as actions taken against their negative consequences. The group of similarities opens economic crisis, which almost in all the articles was a point of departure for describing the problem of poverty and social exclu- sion. Moreover, in the vast majority it was indicated as a main reason enhancing the development of poverty and social exclusion. Only in Switzerland and Belgium global economic difficulties have not had direct impact on the indicators of pover- ty. In Iceland, although the consequences of the crisis were significant, the pover- ty rates have remained quite low. Similarities can also be seen when it comes to other factors responsible for the development of poverty; it suffices to mention the long-term unemployed, a huge percentage of persons outside the labor market (Finland, Spain, Poland, Wales), as well as a considerable variation in poverty, both at the regional and structural lev- el (Spain, Malta, Slovenia, Bulgaria, and Poland). Conclusions 273 Many authors also accentuated the spread of poverty in new areas, new social spaces, so far resistant to crises and economic upheaval, for example the appear- ance of the working poor (Spain, Croatia, Iceland, Poland, Slovenia). A large number of authors were skeptical to corrective actions used by the pub- lic sector. Not only deficiencies in constructive ways of reformulating anti-pover- ty policies (Croatia), but also difficulties arising from the tensions between a sense of moral necessity to fight against poverty and political reality (actual capacity of a state) were noticed. Furthermore, financial restrictions on public administra- tion, which simply make effective policy against social exclusion and increasing poverty impossible were criticized (Spain, Poland), as well as the methods limited mainly to seal the social security system and improve its effectiveness (Finland). Different ways of coping with poverty were observed in the case of Switzer- land, where the burden of responsibility for the fight against poverty and social exclusions lies with cantons and municipalities (federalism), and in the case of Belgium, where depoliticization of poverty and shifting the responsibility for pre- venting marginalization on an individual take place. In the case of Malta, a strong emphasis was placed on providing equal educational chances. While the actions of national governments have often been criticized, the ap- praisal of the changes taking place in the private sector seems to be satisfacto- ry. One of such examples can be Wales, which hopes to solve a large part of its problems, also those related to poverty, thanks to the potential and possibilities of non-governmental organizations, which is also the result of restrictions imposed on the Welsh Government and the National Assembly of Wales within devolution. The NGOs also occupy a crucial role in Poland. The collected material confirms that the awareness of how important poverty and social exclusion issues are gradually increases, as well as the belief that a the- oretical reflection should be accompanied by practical corrective actions taken to improve the situation of those who experience or are at risk of poverty. The Editors Copy editing Cover design Technical editing Proofreading Typesetting Gabriela Marszołek Emilia Dajnowicz Małgorzata Pleśniar Luiza Przełożny Grzegorz Bociek Copyright © 2015 by Wydawnictwo Uniwersytetu Śląskiego All rights reserved ISSN 0208-6336 ISBN 978-83-8012-580-3 (print edition) ISBN 978-83-8012-581-0 (electronic edition) Publisher Wydawnictwo Uniwersytetu Śląskiego ul. Bankowa 12B, 40-007 Katowice e-mail: I impression. Printed sheets: 17.5 Publishing sheets: 22.5 Offset paper grade III, 90 g Price 38 zł (+ VAT) Printing and binding: EXPOL, P. Rybiński, J. Dąbek, Spółka Jawna ul. Brzeska 4, 87-800 Włocławek
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