Global Price Spikes Could Create ‘New Poor’ in Jamaica – Dr. Chang

Water and Housing Minister, Dr. Horace Chang says Jamaica could see the creation of what he describes as a “whole new group of newly poor”, consequent on the global spike in fuel and food prices over recent months that have impacted the country.
Speaking at the launch of the Poverty Monitoring and Social Policy Analysis Programme’s (PMSPA) islandwide poverty maps, and research publication: ‘Issues of Critical Social Concern: Some Investigations’ at the Planning Institute of Jamaica (PIOJ) on Friday (July 25), Dr. Chang noted that the country is “caught in a turbulent environment”, which is particularly hurting the poor.
“Indications by some studies suggest that, in the last year, we have had up to (a) 45 per cent (price) increase in some basic foods. This is associated with the dramatic increases in the cost of fuel, which is a commodity that impacts on every facet of our lives. This certainly creates a challenge for a country like Jamaica, which imports almost all aspects of its fuel,” the Minister stated.
He noted that spikes in global prices have also contributed significantly to the country’s inflation level, which, he pointed out, went as high as 16.8 per cent last year. The Minister said that in the face of this “dramatic” inflation, persons who were currently “on the margin” would “begin to go below the poverty line.”
“Inflation is, maybe, one of the most dangerous things to income and consumption levels, and one of the most damaging to society in terms of its capacity to create poverty. Those who are on the margin will suddenly find their fixed income incapable of sustaining (their) lifestyle,” Dr. Chang lamented, noting that the most recent Survey of Living Conditions estimated that there were 360,000 persons in Jamaica living below the poverty line.
He said the Government has not ignored this scenario, pointing out that steps have been taken to “bring some relief to the poor”. These, he said, include: removal of hospital, and secondary school fees. He also highlighted the Programme for Advancement Through Health and Education (PATH), and the National Insurance loan facility, which provides funding for micro and small entrepreneurial projects. These, he noted, were regarded by lending agencies, such as the World Bank, as expansions of the country’s social safety net.
The PMSPA publication comprises four researched papers, which explore issues spanning poverty measurement, underutilization in primary and all age schools, the PATH, and its impact on educational attainment and contract work.
The poverty maps provide demographics of the areas of Jamaica having the highest concentration of individuals categorized as living below the poverty line.
Dr. Chang said the results of these researches were important in assisting and guiding the Government in terms of designing effective policies to address the challenges that obtained.