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...
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