Jamus is concerned about poverty.
23 May at 09:03 ·
One of the jobs I’ve held in the past was at the World Bank. The Bank’s mission is to conceive of a world free of poverty. So I’ve spent a disproportionate amount of my professional life thinking about the poor, and to improve their lot, especially in low-income countries. But poverty also shows up in the richer nations of the world. Not everyone is aware of this, but over the last decade, Singapore has vaulted up in the league table of per capita incomes worldwide, and as of this year, is expected to come in between 3rd and 5th. For a small city-state with no discernible natural resources, this is an incredible achievement. While there’s some myth surrounding how far we’ve come (at independence, we were already around the 70th percentile of global GDP per capita), we have nevertheless done very well.
What hasn’t really caught up, however, has been our attitudes and mindsets about welfare. Now, to be clear: most Singaporeans don’t believe in a European-style welfare state, and I doubt we’ll get there anytime soon. Still, it’s hard to deny that, for a wealthy country, state support for our poor is remarkably limited. One common argument that government makes is that this helps avoid a dependency mindset. Another is that day-to-day living here remains affordable.
There’s some mild truth to those statements. Other countries have welfare kings/queens (but even there, such overt efforts to milk the system aren’t widespread). And while things like food and public transport are relatively inexpensive, we still bear the burden for big-ticket items (houses, cars). Having lived in different places (often with little money), it strikes me that a key difference is asset ownership. Those with capital find life much more comfortable than those who don’t. While this is true everywhere, living here is significantly harder at the lower end. This struggle may also have become worse after the pandemic; high inflation has lowered the purchasing power of incomes, and unless you’ve money set aside in special savings accounts, CPF rates haven’t kept up, making you permanently poorer.
We can always make economic arguments about why we should help the poor (basically, one-off transfers help them break the cycle of poverty). This is the approach that this government has taken, and is why antipoverty schemes here tend to be frugal. But perhaps the strongest argument one could make for helping the poor is that it is a moral imperative. Not everyone is blessed with the same gifts. In a meritocracy, those who are endowed with more naturally get more, but what sort of society would we become if we aren’t inclined to share?
If we agree that those who are blessed with more should help those with less, it then comes down to a question of what we’re doing. For starters, we need to know who it is that we’re trying to help. This calls for an official national poverty line. I find it crazy that we don’t have one. Such a line is standard worldwide, in countries rich and poor. Sure, once could argue that we’ve many thresholds—for Comcare, or HDB rental assistance, or the average household expenditure on basic needs (by SingStat)—but myriad lines are confusing and a mess to monitor.
We pride ourselves on being a KPI-oriented civil service (whether that’s an unabashedly good thing, is another story for another time). But how can we say we’re successful in targeting poverty or not if we don’t have the most basic of indicators for evaluating it? Aren’t a suite of metrics, tailored to purpose, better? Sure, nothing precludes us from adapting thresholds for different purposes. Just apply a multiplier to the line! But at least you’ve got a basic level that everyone can focus on.
So what should this figure be? Well, there are many potential numbers, but most reasonable observers will accept that it should be $2,500 or more (the highest, which includes items that many would consider needs in an advanced economy, pegs this at closer to $6.4K). After all, what is necessary for life changes as a country gets richer. Will we tell a citizen struggling to access government support that a smartphone isn’t necessary? Or two working parents that kids’ tuition is a luxury? Or that rites and rituals are frivolous expenses? As most folks will probably agree, what is necessary for living isn’t the minimum amount needed to grind it out. It’s the least needed to not just exist, but truly live; humans need a reason to flourish—otherwise, what’s the point of living in the world’s 3rd richest country?
Beyond a higher poverty line for state support, what else can we do? Comcare—our nation’s social protection system—can extend their support for longer periods, to help those struggling truly get back on their feet (rather than require reporting back every few months). Comcare can also streamline its approval process. It is currently onerous and intrusive, and discourages many who actually need help from seeking it, because they feel ashamed or scrutinized. It’s important to verify needs, of course, but we’re talking about the poor here, not criminals.
Workfare—the other key antipoverty program, which tops up low-wage incomes—is also inadequate. The amounts are lower than those in other advanced economies; what more in high-cost Singapore? They also cut out at $2,500 a month, half that of other countries with similar programs. Moreover, we layer on a whole bunch of additional criteria ($500 minimum monthly income, payouts increase with age) that don’t make much sense. Why exclude top-ups for those who work limited hours? Why are the youthful poor less in need of cash than the elderly poor? Workfare also doesn’t adjust for the number of children in household. But these are precisely the sort of families that may need the most help, since they may have caregiving needs that prohibit longer working hours.
All this sounds like a rant—and in some ways it is—but these issues need attention, even if it only concerns (by definition) a small segment of society. Because in a rich, advanced economy, it is unconscionable that we haven’t fully eradicated poverty, and folks are still scrapping to make a hard living.
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