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Worsening chronic poverty in Venezuelan households

According to the data provided by the official National Statistics Institute (INE), last year the poorest homes in the country recorded an average monthly income of USD 401.82, whereas the food basket amounted to 417.77

More and more homes have recorded a downward trend (File Photo: J. Santos)

Economy
Based on the official data, more and more families failed to get out of poverty in 2008; the exclusion status of more people moved faster and fewer people are on their way to overcome this situation.

These were the findings of a method devised to measure poverty, recently introduced by the National Statistics Institute (INE).

According to the official data, chronic poverty, defined as poverty which strikes homes with at least one unmet basic need and inadequate income, hit 12.6 percent of families ending last year, i.e., 805,144 dwellings. In 2007, the impact was a bit lower –over 12 percent or 750,931 homes.

This group has the most troubles to overcome poverty. But also the situation for the people on their way to leaving social exclusion is worse.

The INE reported that structural poverty, with regard to households in an improving social situation, shrank last year. The state-run agency noted at 2008, such predictor stood at 10.6 percent, from 11.1 percent, which means 677,182 families on their way to getting rid of social exclusion.

While in terms of poverty, a backlash could be a good sign, this is not the case. As a matter of fact, a reduction of structural poverty means that fewer homes have enough income and, as for the findings submitted by the INE, more of these homes are downhill.

Chain exclusion
The data on the comprehensive method of poverty submitted by the agency note that circumstantial poverty increased to 17.7 percent ending last year, for a total of 1,131,417 dwellings which can barely meet their basic needs.

On the contrary, in 2007, circumstantial poverty in 2007 accounted for 15.4 percent, based on the INE data.

But the non-poor are not free from the relapse precisely in a year when the Venezuelan state received unprecedented windfall oil revenues. The government agency highlighted in its annual report that the proportion of homes which do not experience the plight of poverty declined, compared with 2007.

About 59 percent, or 3,762,623 families, were considered non-poor at 2008, versus 61.5 percent the prior year.

The integrated poverty method is used to assess the severity of poverty in a country. This is done by crossing the data on poverty based on the income, and poverty defined by Unmet Basic Needs (UBN).

The rate poverty per income ended the second half of 2008 at 27.5 percent; the UBN measurement stressed that 23.4 percent of Venezuelan dwellings have been targeted by exclusion for that period.

Low income
According to the data provided by the government agency, last year the poorest homes in the country recorded an average monthly income of USD 401.82, whereas the food basket amounted to 417.77.

By means of comparison, the monthly income of households in better conditions averaged USD 1,981.82.

As less money was aimed at keeping 5.04 people on average per poorer home, the number of members of a family with high income averaged 3.11 ending last year.

Translated by Conchita Delgado

Suhelis Tejero Puntes
EL UNIVERSAL


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