Beneath The Surface
Same poor, different poverty
Digging deep into the data files of the Brac-supported survey of 62 villages, that contain information of the same households for two decades, we considered three cases of the tedious paths that poor households pursue in their lifecycles. Small household size, access to credit, healthy earning members and a mix of farm and non-farm occupations could sometimes help them graduate, as the following case studies might show.
Tale one: Ultra-poor to poor
Two decades ago, Kurban Fakir (30) of Nouga village under Sirajgong district had only one source of income -- day labour -- to feed a household of five. He did not own land and lived in a straw house (jhupri). The household income in 1988 was roughly Tk.630 ($20) derived from labour and paltry poultry. About 2.5 kg of rice/day was required, that was met from the market or, sometimes, by borrowing from land-bigwigs. In economists' jargon, the household led by Kurban is an ultra-poor household. No winter clothes, no consumption of fish or meat to prove otherwise. Twelve years later, in 2000, Kurban Fakir was found living in that jhupri with 3 members (two daughters having got married). Quite obviously, the economic pressure appeared less severe than before. But, Kurban's thirst for a better living possibly pushed him to pick up van driving (9 months) and catching fish (3 months). Home-grown fruits and vegetables feebly supplemented his total monthly income of Tk.2112 ($41) -- double that of 1988. Meantime, (in 1999) Kurban borrowed Tk.1500, at an interest of 120% per annum, for 6 months from Gram Samity (an informal association of villagers that lends money during distress). But when all was going reasonably well, the 1998 flood came as a bolt from the blue, with huge losses for the household. Food insecurity forced the household to cook 1.5 kg/day instead of 2 kg/day. Household members could not have three satisfactory meals. Despite new avenues of income compared to 1988, their economic condition deteriorated further due to spending in the daughters' marriage, flood damage and repayment of loans. The dreams of the ultra poor-household were dashed to the ground by shocks arising from exogenous and endogenous sources. Four years later, in 2004, Kurban's mother was found living with him and the household size was four. This time health hazards took a toll when two members suffered from cholera and one from toothache, bringing unbearable treatment costs. However, he took loan from a samity to do business of poultry and livestock. Net income stood at Tk.3200 ($54)/month. Housing condition remained as before, but food condition improved to 2 kg/daily and satisfactory meals could be managed throughout the year. But overall economic condition deteriorated, as some of the ducks died, and health hazards haunted the household. Even then, Kurban continued to drive on the treacherous path of poverty. On the heels of hazards, in 2008, his wife became a member of BRDB and borrowed Tk. 20,000 to buy poultry and to improve housing condition. The household has now 150 poultry birds, mostly looked after by his wife. By and large, the household's total income stood at Tk.5, 092/month ($75) from crops grown, poultry, and son's labour. Housing condition improved: Tin roof, tin wall and mud floor. Storage capacity was created for 20 maunds of crops. Before the last amon season, the household stored 4 maunds of paddy. Now, the household can meet rice needs for 6-7 months from own production. There was an overall improvement in economic condition, despite the recent spikes from soaring prices of food grains. Even last week, preceding the survey, they consumed fish for 4 days; each member now has got 2 pieces of winter clothes. The resilience emanated from: small household size, availability of credit and its productive use in profitable poultry, additional earning member and a tight labour market. Kurban now thinks that his household is poor but not-ultra poor. Of course, the graduation from ultra-poor to poor status took twenty years of tedious journey, even with availability of credit! Tale 2: Ultra-poor to low income group
Adam Ali Fakir (35) from the same village had four members in his household in 1988. He owned no land but lived in khas land in a house made of tin roof, straw wall and mud floor. Household income was Tk.560/month ($18), mostly from day labour but partly from poultry/livestock. The income level was very close to the household we mentioned just before. But this household's condition was even worse as Adam had to borrow Tk. 500 (that year) from relative at 10% interest to meet household expenditures. Household members had one piece each of winter clothes In 2000, Adam was found engaged in rearing ducks and chickens, and owned 150 poultry birds. This became his primary occupation. Net income was Tk.3000/month ($60). The 1998 flood hit the family with a loss of Tk.3000. Adam faced it from own savings and help from relatives. Since the daughter was married, the household size was three and 1.5 kg of rice was cooked daily. Three satisfactory meals were available throughout the year. Even during the last week preceding the survey, they had consumed fish for 2 days. Adam's happiness is adduced to good income from ducks and small size of the household. He saw himself as poor -- not ultra-poor of 1988. In 2004, Adam rented 33 decimals of land to grow 22 maunds of BR-20. At Tk.260/maunds, the value of the crop stood at Tk. 5,720. However, the total income from poultry, wage labour and crops grown stood at about Tk.6000 ($102). The household consumed 2.5 kg. of rice every day and there was no complaints about three satisfactory meals throughout the year. And very recently, in 2008, with grand children, Adam's household comprised of six members. Meantime, his wife became a member of an NGO. The household income comprised of farm income, income from day labor and income from poultry. Adam's wife borrowed Tk.5000 from NGO as initial capital for poultry business in 2004. Now the total capital invested in this business is Tk.50, 000 of which Tk.30, 000 is from own savings. Last year, net profit from poultry was Tk. 62,000 -- Tk.5, 166/month. By and large, the household's income now is Tk.7, 766 ($115). The household consumes 2 kg of rice/day, there is food security throughout the year; and they consumed fish for 5 days and meat for one day during the week the survey took place. The ultra-poor household in 1988 is now being perceived as a low-income household. Tale three
Tofazzal Mallick of Majgram village under Pabna district started the same journey with a very small household size of two in 1988. He had 5-6 decimals of land, on which his house stands. His income was Tk 1200 ($38) --twice the income of earlier two cases -- from daily labour in agriculture and earthworks. But, most importantly, as he worked in others' lands and was listening to TV/radio, he learnt how to grow modern variety of rice. He decided to give up day labouring and leased in 86 decimals to cultivate crops. Twelve years later, Mallik was blessed with three children -- two boys and one girl, and two of them were school-going. In the 86 decimal leased-in lands, he grew BR-8 and got 19 maunds of paddy (worth Tk.3800), 25 maunds of onion (worth Tk.11, 875) and 5 maunds of local aman (worth Tk.1258). Besides, he acquired three cows, and three poultry birds. The net income for the household stood at Tk.2, 635 ($ 45). His house was as before, but he created an additional space for storing 20 maunds of crops. Economic condition improved due to (a) leasing in land, (b) improved yield of crops and (c) selling the cash crop, onion. Ultra-poor Mallik of 1988, graduated to poor within 12 years. And in this transformation, NGO or government dole was of no help. In 2008, Mallik became a farmer as well as day labourer for three months. Unfortunately, he suffered from heart disease in 2006. It cost him Tk.10,000 from own savings and help from relatives. The improving economic condition got a serious jolt. However, Mallik lives in a house made of tin roof, tin wall and mud floor. He added a cattle house, a kitchen and a storage facility for crops. By that time Mrs. Mallik had become a member of Brac, but had yet to take loans. His economic condition deteriorated due to health problem of the sole earning member. The household income stood at Tk. 3200 ($47). The household can supply four months of food need from home. Now, the requirement of 2.5 kg of rice/day can be met satisfactorily. His children are still in school, but a further deterioration in father's health could keep them off the school and turn the tide. The case studies presented above point to the following observation: given a small household size, good health of the earning member, availability of credit and its proper use (especially on home based activities like poultry and vegetables, fruits), access to tenancy market and modern technology, a poor household could possibly overcome food insecurity. The journey is long but never lost. Abdul Bayes is a Professor of Economics at Jahangirnagar University.
Two decades ago, Kurban Fakir (30) of Nouga village under Sirajgong district had only one source of income -- day labour -- to feed a household of five. He did not own land and lived in a straw house (jhupri). The household income in 1988 was roughly Tk.630 ($20) derived from labour and paltry poultry. About 2.5 kg of rice/day was required, that was met from the market or, sometimes, by borrowing from land-bigwigs. In economists' jargon, the household led by Kurban is an ultra-poor household. No winter clothes, no consumption of fish or meat to prove otherwise. Twelve years later, in 2000, Kurban Fakir was found living in that jhupri with 3 members (two daughters having got married). Quite obviously, the economic pressure appeared less severe than before. But, Kurban's thirst for a better living possibly pushed him to pick up van driving (9 months) and catching fish (3 months). Home-grown fruits and vegetables feebly supplemented his total monthly income of Tk.2112 ($41) -- double that of 1988. Meantime, (in 1999) Kurban borrowed Tk.1500, at an interest of 120% per annum, for 6 months from Gram Samity (an informal association of villagers that lends money during distress). But when all was going reasonably well, the 1998 flood came as a bolt from the blue, with huge losses for the household. Food insecurity forced the household to cook 1.5 kg/day instead of 2 kg/day. Household members could not have three satisfactory meals. Despite new avenues of income compared to 1988, their economic condition deteriorated further due to spending in the daughters' marriage, flood damage and repayment of loans. The dreams of the ultra poor-household were dashed to the ground by shocks arising from exogenous and endogenous sources. Four years later, in 2004, Kurban's mother was found living with him and the household size was four. This time health hazards took a toll when two members suffered from cholera and one from toothache, bringing unbearable treatment costs. However, he took loan from a samity to do business of poultry and livestock. Net income stood at Tk.3200 ($54)/month. Housing condition remained as before, but food condition improved to 2 kg/daily and satisfactory meals could be managed throughout the year. But overall economic condition deteriorated, as some of the ducks died, and health hazards haunted the household. Even then, Kurban continued to drive on the treacherous path of poverty. On the heels of hazards, in 2008, his wife became a member of BRDB and borrowed Tk. 20,000 to buy poultry and to improve housing condition. The household has now 150 poultry birds, mostly looked after by his wife. By and large, the household's total income stood at Tk.5, 092/month ($75) from crops grown, poultry, and son's labour. Housing condition improved: Tin roof, tin wall and mud floor. Storage capacity was created for 20 maunds of crops. Before the last amon season, the household stored 4 maunds of paddy. Now, the household can meet rice needs for 6-7 months from own production. There was an overall improvement in economic condition, despite the recent spikes from soaring prices of food grains. Even last week, preceding the survey, they consumed fish for 4 days; each member now has got 2 pieces of winter clothes. The resilience emanated from: small household size, availability of credit and its productive use in profitable poultry, additional earning member and a tight labour market. Kurban now thinks that his household is poor but not-ultra poor. Of course, the graduation from ultra-poor to poor status took twenty years of tedious journey, even with availability of credit! Tale 2: Ultra-poor to low income group
Adam Ali Fakir (35) from the same village had four members in his household in 1988. He owned no land but lived in khas land in a house made of tin roof, straw wall and mud floor. Household income was Tk.560/month ($18), mostly from day labour but partly from poultry/livestock. The income level was very close to the household we mentioned just before. But this household's condition was even worse as Adam had to borrow Tk. 500 (that year) from relative at 10% interest to meet household expenditures. Household members had one piece each of winter clothes In 2000, Adam was found engaged in rearing ducks and chickens, and owned 150 poultry birds. This became his primary occupation. Net income was Tk.3000/month ($60). The 1998 flood hit the family with a loss of Tk.3000. Adam faced it from own savings and help from relatives. Since the daughter was married, the household size was three and 1.5 kg of rice was cooked daily. Three satisfactory meals were available throughout the year. Even during the last week preceding the survey, they had consumed fish for 2 days. Adam's happiness is adduced to good income from ducks and small size of the household. He saw himself as poor -- not ultra-poor of 1988. In 2004, Adam rented 33 decimals of land to grow 22 maunds of BR-20. At Tk.260/maunds, the value of the crop stood at Tk. 5,720. However, the total income from poultry, wage labour and crops grown stood at about Tk.6000 ($102). The household consumed 2.5 kg. of rice every day and there was no complaints about three satisfactory meals throughout the year. And very recently, in 2008, with grand children, Adam's household comprised of six members. Meantime, his wife became a member of an NGO. The household income comprised of farm income, income from day labor and income from poultry. Adam's wife borrowed Tk.5000 from NGO as initial capital for poultry business in 2004. Now the total capital invested in this business is Tk.50, 000 of which Tk.30, 000 is from own savings. Last year, net profit from poultry was Tk. 62,000 -- Tk.5, 166/month. By and large, the household's income now is Tk.7, 766 ($115). The household consumes 2 kg of rice/day, there is food security throughout the year; and they consumed fish for 5 days and meat for one day during the week the survey took place. The ultra-poor household in 1988 is now being perceived as a low-income household. Tale three
Tofazzal Mallick of Majgram village under Pabna district started the same journey with a very small household size of two in 1988. He had 5-6 decimals of land, on which his house stands. His income was Tk 1200 ($38) --twice the income of earlier two cases -- from daily labour in agriculture and earthworks. But, most importantly, as he worked in others' lands and was listening to TV/radio, he learnt how to grow modern variety of rice. He decided to give up day labouring and leased in 86 decimals to cultivate crops. Twelve years later, Mallik was blessed with three children -- two boys and one girl, and two of them were school-going. In the 86 decimal leased-in lands, he grew BR-8 and got 19 maunds of paddy (worth Tk.3800), 25 maunds of onion (worth Tk.11, 875) and 5 maunds of local aman (worth Tk.1258). Besides, he acquired three cows, and three poultry birds. The net income for the household stood at Tk.2, 635 ($ 45). His house was as before, but he created an additional space for storing 20 maunds of crops. Economic condition improved due to (a) leasing in land, (b) improved yield of crops and (c) selling the cash crop, onion. Ultra-poor Mallik of 1988, graduated to poor within 12 years. And in this transformation, NGO or government dole was of no help. In 2008, Mallik became a farmer as well as day labourer for three months. Unfortunately, he suffered from heart disease in 2006. It cost him Tk.10,000 from own savings and help from relatives. The improving economic condition got a serious jolt. However, Mallik lives in a house made of tin roof, tin wall and mud floor. He added a cattle house, a kitchen and a storage facility for crops. By that time Mrs. Mallik had become a member of Brac, but had yet to take loans. His economic condition deteriorated due to health problem of the sole earning member. The household income stood at Tk. 3200 ($47). The household can supply four months of food need from home. Now, the requirement of 2.5 kg of rice/day can be met satisfactorily. His children are still in school, but a further deterioration in father's health could keep them off the school and turn the tide. The case studies presented above point to the following observation: given a small household size, good health of the earning member, availability of credit and its proper use (especially on home based activities like poultry and vegetables, fruits), access to tenancy market and modern technology, a poor household could possibly overcome food insecurity. The journey is long but never lost. Abdul Bayes is a Professor of Economics at Jahangirnagar University.
For all latest news, follow The Daily Star's Google News channel.
Comments