Tuesday 21 October 2014

2.5 million Dutch below poverty line?

Although I have been in the UK for over 4 years now, I still follow the Dutch newspapers on a daily basis. Last week, all major national newspapers (de Volkskrant, HP de Tijd, AD, Parool etc) shared one big headline: “2.5 million people in the Netherlands live below the poverty line”. Really? In a country that ranks #4 on the Human Development Index? Should I worry about poverty issues in the developing world when things back home are so bad?

It turns out, it may not be so bad after all. But let me start by saying that I don’t mean to be condescending or patronise the 2.5 million people who live well below the average level of wellbeing in the Netherlands. I do believe something is seriously wrong when such a rich country can’t get its wellbeing distribution right; more equal, that is, in my opinion. And it requires action.

But what I want to criticise is the lack of perspective in those newspapers that all published the same press release, without any further reflection on the report. What does poverty mean here? And does poverty in the Netherlands compare to the rest of the EU, or the world?

In the report, poverty is measured according to the so-called AROPE indicator. The AROPE indicator of being at risk of poverty or social exclusion reflects the share of the population with low income, severe material deprivation or very low work intensity. You are severely materially deprived if you don’t own a car, a phone, a colour TV, a washing machine; you haven’t been away from home on holiday for at least a week; you can’t eat meat/fish/poultry every other day; you can’t pay off your loans or cope with unexpected financial expenses, and can’t afford to keep your home adequately heated. If you earn 60% of the national median income, you’re qualified as being at risk.

De aardappeleters (the Potato Eaters) by van Gogh

Now let’s have a look at countries of “low human development”according to the HDI. In Malawi, for example, 62% of the population lives below the $1.25 a day poverty line and 67% lives in multidimensional poverty. That is 10 million people. This multidimensional poverty index (MPI) looks at education, health and standard of living. This is not about being able to eat meat, but about being malnourished. It is about having had your child die, not having 5 years of education yourself and being able to enrol your children, and - among others - not having electricity and access to clear drinking water; and not owning at least one of these: bicycle, motorcycle, radio, fridge, phone or TV. So where would you rather be labelled ‘poor’? The MPI and the AROPE index are not comparable, but what matters here is that the differences in standards and indicators are striking, and telling.

And compared to the rest of Europe? Well, it turns out that the Netherlands has the best (lowest) AROPE rate, a very low unemployment rate (7.1%), the lowest percentage of working-poor and youth unemployment, etc. We could do better on life expectancy perhaps, but on closer inspection we only have to allow Mediterranean countries and Sweden ahead of us. 

Notably, the number of Brits at risk of poverty and social exclusion is almost equal to the total population of the Netherlands: 16% of the 17 million Dutch are at risk compared to 25% of the 64 million UK citizens. Are the Netherlands a relatively small country with a relatively small problem?

In global rankings, we do very well, no matter which ranking we take. The Netherlands may not win medals in GDP per capita rankings (although consistently in the world top 20), but the Dutch enjoy a very good quality of life (#8) and do even better on Social Progress (#4)[1] and happiness (#4). And we work less than the OECD average!

So, I don’t like that headline. The lack of perspective, resulting from mindless copying of a press release, and the negative message set the tone for how society thinks about what politicians need to prioritise. Another headline could have made the well-off Dutch appreciate their luck, and perhaps even, one day, consider sharing their wealth a bit more...



[1] Interestingly, the Netherlands scores relatively low on Ecosystem Sustainability.

No comments:

Post a Comment