THE distribution of income between the rich and poor in Jamaica has widened with annual consumption spending for the wealthiest 10 per cent of the population increasing to 12.5 times that of the poorest 10 per cent.
According to the 1999 Survey of Living Conditions, the decline in per capita consumption was matched by an increase in the number of people who fell below the poverty line.
Just last year, the Planning Institute of Jamaica (PIOJ) and the Statistical Institute of Jamaica (STATIN) reported that the wealthiest 10 per cent of the population consumed 11 times more than the poorest 10 per cent, at a time when poverty was said to have declined.
Asked what could be done to reduce the widening poverty gap, Food For The Poor executive director Bradley Smith, said the haves should give some of what they own to the have-nots. He said they should not just give spiritual guidance and food to the poor, but assistance towards education.
Mr. Smith said that while the Government was making some effort towards making more houses available to the poor, more needed to be done towards improving health care and education, as well as ensuring there were industries in which people could be employed after their graduation.
The survey report, which was tabled in Parliament earlier this week, was jointly published by the PIOJ and STATIN.
The study, which assesses the impact of the effects of macroeconomic policies associated with structural adjustment on the most vulnerable groups in Jamaica, found that the mean per capita annual consumption of the wealthiest 10 per cent of the population was $205,960, compared with $16,542 for the poorest 10 per cent.
It also found that 37 per cent of Jamaican households had total consumption expenditures of $20,000 or more per month. Regional distribution of consumption showed that 50.1 per cent of the population in the Kingston Metropolitan Region, 36.7 per cent of those in other towns, and 27.1 per cent in rural areas were consuming $20,000 or more on a monthly basis.
Noting that some 10.5 per cent of households spent less than the official minimum wage of $6,000 per month, the report said that "as expected, in the rural areas with its relatively low income farming communities, households were more likely to consume less than the other regions." The report also showed that 0.2 per cent of the population spent less than $1,000 monthly.
While the 1999 data showed that the greatest positive contributors to the change in consumption nationally and regionally were transportation and housing, the researchers said, "the increases may have resulted from the increasing cost of these items and not from a structural shift which reflects improving well-being."
With the widening gap between the rich and poor, the researchers have again pointed out that "addressing consumption shortfalls and disparities is of fundamental importance to policy-makers. Every member of the society should be able to consume a minimum quality of goods and services essential for ensuring the development of their capabilities and for enjoying a decent standard of living."
According to the report, the persistent inequality was primarily evident in rural areas which showed a decline in real per capita consumption and an increase in the proportion below the poverty line.
"The underlying causes of poverty and inequality are related to the problems of unemployment and inability to generate adequate income," said the report, pointing to the policy implications. "For the rural areas in particular, this stems from a lack of development activities and access to markets," it said.
The researchers said "there are existing programmes which focus on rural development which need to be continued, restructured and expanded in order to improve the welfare of individuals, particularly the youth, in these areas." In addition, they said, "despite increases in housing solutions, there is still the need for more affordable housing. The government needs to encourage lower, more affordable mortgage rates by lending institutions."
