Tuesday, January 31, 2017

POVERTY ON A RISE IN SRI LANKA by Dr. D. Tennakoon


                                 POVERTY ON A RISE IN SRI LANKA?
by Dr. D. Tennakoon

1. THE BIOLOGICAL OR SUBSISTENCE APPROACH TO POVERTY.
[In this context, Hon Prime Minister's vision on our development should be encouraged, praised and admired in future planning in development.]
NOTE:  
THESE POVERTY ANALYSIS ARE BASED ON THE 2012-2013 HOUSEHOLD INCOME DATA AND             HOUSEHOLD FOOD EXPENDITURE ESTIMATED DATA FOR 2012-2013.  IT INDICATES THE STATES OF HOUSEHOLD INCOME OF POOR INCOME RECEIVING HOUSEHOLDS THAT FALL IN THE POVERTY GROUP.  THIS SEVERE STATE OF POVERTY IN ALL SECTORS WHICH INDICATES THAT NEARLY (MORE OR LESS) 45% OF THE HOUSEHOLDS HAD RECEIVED LESS INCOME COMPARED WITH THE STANDARD OF REQUIRED INCOME TO SATISFY THE HOUSEHOLD FOOD CONSUMPTION NEED IN THE NUTRITIONAL APPROACH MEASUREMENTS.  THIS SITUATION MIGHT HAVE AFFECTED MORE ACUTELY TO CHANGE THE POLITICAL SITUATION IN JANUARY 2015.   IT SHOULD BE NOTED THAT A NEW GOVERNMENT WAS ESTABLISHED BY THE POOR PEOPLE THEMSELVES IN SRI LANKA.   NO ONE COULD HAD POWER TO CHANGE THE PREVIOUS STRONG POLITICAL LEADERSHIP, BUT ONLY THE POOR PEOPLE, THOSE WHO SUFFERED ECONOMICALLY,  AS THE COUNTRY HAD BEEN LAGGED BEHIND SINCE 1995 - 2014, AND  HAD NOT BEEN ENTERED IN TO A ECONOMIC PROGRESS/NEW PATH OF COMPETITIVE DEVELOPMENT, IN THE COMPETITIVE FREE TRADE ECONOMIC CONCEPTS. POLITICIANS, TRADE UNION LEADERS, STATE OFFICERS AND LEFTIST MOVEMENTS (IN THE GOVERNMENT PARTNERS) HAD BEEN HAD MISGUIDED THE THEN GOVERNMENT, THOUGH THE PREVIOUS GOVERNMENT HAD STRONG POWER TO RESTRUCTURE THE ECONOMY TO COMPETE WITH THE RISING WORLD COMPETITIVE ECONOMIC ORDER, SPECIALLY WHICH HIGHLY COMPETING IN THE SOUTH AND SOUTH-EAST ASIAN COUNTRIES.

Dr. D. Tennakoon
In consumption based measurements of poverty, the income necessary to buy a minimum standard of nutrition is also a subject of controversy.  Many countries have worked out a minimum standard of per capita calorie requirements in respect of their own countries.  But, in economic analysis, the main concern is not measuring the calorie intake, but cost and price of the goods needed to satisfy the desired nutritional standard.  This approach to measure poverty is known as the biological or subsistence standard of poverty measurement, and many scholars have accepted this approach in poverty studies[Sukhathme, 1965; Dandekar and Rath, 1971; ILO, 1977; Rao, 1982; Lipton, 1983; Sarma, 1987; Gaur,1988; Sagar,1988; Tennakoon, 2000]. See “Dimensions of Rural Poverty, 2000, HARTI/Ministry of Agriculture].

In the “biological or subsistence approach” the bundle of material requirements and services are determined to “consist of minimum calorie intake essential to physical human existence”.Clearly this standard will vary with situation and custom.  Sukhathme, in 1965 calculated that an average man in India requires approximately 2250 calorie per capita per day to fulfill this biological or subsistence requirement.  In the case of China, Prof. Remenyi, in 1992 reported that the poor are “… defined as those unable to produce a “subsistence basket” of food [i.e., 2150 calories per day per person] and non-food essentials, or not in receipt of sufficient income to buy the equivalent …”.  In the context of Sri Lanka the equivalent is calculated at about 2200 calories per person per day [MPPI, 1991-1992].  FAO in1974 and World Bank in 1979, had adopted and accepted the nutrition based definitions of the poverty line as the consumption norm.

2. OFFICIAL POVERTY LINES

In 1979, Government of Sri Lanka sought to introduce a “Food Stamp Scheme”[FSS] as part of its commitment to establish a programme to ensure that all families would be able to satisfy their nutritional requirement for an acceptable standard of survival.  In FSS programme, government defined two levels of poverty.  The first level recognized families in immediate need of food subsidies and food relief.  The income level was equated to an amount needed to satisfy at least a calorie norm of 1800 per capita per day, which was considered to be the level of “malnourished”.  These households were regarded as being in acute or absolute poverty [MFP, 1979].  The second criterion defined as a far more comprehensive standard that embraces concept of welfare in to the definition of poverty.

The implementation of FSS, 1979, defined the cut-off point for beneficiaries of the food stamp scheme to be an income level of Rs. 300 per month per household of five persons. In 1980 this cut-off point has increased to a household income of Rs. 400 per month. In 1985 it was adjusted to an income of Rs. 700 per household per month.  Since 2000-2010 it has been floated over, not to mention. But, all these official poverty lines are more lower compared with the needed income standard sufficient income of households to meet normal nutritional standard of living.  n 1994, official poverty was fixed at Rs. 1,200 .00 per family per month.  Rational of  fixing official poverty line was based on specific purpose of implementing poverty relief programmes.

3.  INCIDENCE OF POVERTY IN SRI LANKA AND IN SAARC

If we compare the incidence of poverty existed in the decade of 1980s in in SAARC countries, poverty has been so acute state in all these countries.

Table: 1       [Poverty ratio: different analysis had given different ratio]                                                                                                                                                                      
COUNTRY
YEAR
POOR AS A PERCENTAGE OF POPULATION
BANGLADESH
1985 -1989
48% -51%
INDIA
1985 -1988
40% -56%
NEPAL
1980 -1981
40%-71%[71= WB estimates]
PAKISTAN
1980 -1988
21% -24%
SRI LANKA
1980 -1986
28% -40%

Many SAARC countries could reduced their poverty at least below 20%. And some countries below 15%.  Official estimates show that Sri Lanka has reduced poverty to between, 7% - 12% from 2000 to up to date.  But, statistics are poorly existent with the actual income levels of households to fulfill their basic nutritional requirement of 2250 calorie intake, per person per day, and based on this, having calculated on the amount of food needed to meet that biological norm of food consumption, at the current price of the food necessities.  But, the official estimates of poverty has not adopted, that the FAO and WB recognized norms of food consumption in need of a healthy human being.  These statistics will never help for us to prepare our own policies for poverty eradication, but it helps us to satisfy ourselves for a movement in the guise, that our development programmes are “successful”.  Politicians are very interested to see official report to show the every success of projects and programmes.  Statistics are a set of art, could be managed with data that we use, in the way that we want to highlight to show what we desired.. 


Table: 2 Competing Estimates of Poverty in Sri Lanka[All these calculations based, except MPI calculations, on income levels of  official income surveys using expenditure needed to meet nutritional level of food consumption]
ESTIMATED BY
YEAR
POOR AS A %   OF POPULATION*
MPI [1]
1978-1979
19.0%
DOCS [2]
1980 -81
50.5%
DOCS [3]
1985 -86
40.0%
HLCO [4]
1988
44.5%
MPI [5]
1986 – 87
27.8%
Korale [6]
1985 -86
39.5%
Average
1980’S
36.9%
TENNAKOON
1994
48.8%
**[For details see Tennakoon, 2000, HARTI/Min. of ARI.]


BIOLOGICAL/SUBSISTENCE APPROACH OF MEASURING POVERTY, (1994)

FOLLOWING HOUSEHOLD FOOD CONSUMPTION DATA WAS USED IN CALCULATING POVERTY LINE IN 1994, FOR THE PURPOSE OF FIELD SURVEY ANALYSIS.

TABLE: 1.  ESTIMATED COST FOR THREE MEALS A DAY – 1994  (HOUSEHOLD OF FOUR PERSONS)
THREE MEALS
*NORMAL DIET                        COST 
                                                             ( RS.)
**ALTERNATIVE DIET             COST                                                                              (RS.)    
BREAKFAST
2 LOAVES OF BREAD                  9.00
1 COCONUT                                    8.50
250g OF DAL                                 11.00
SPICES                                              6.00
1kg. OF RICE                                   18.00                                            
½ COCONUT                                      4.50
100g. OF DRY FISH                        12.00
SPICES                                                 6.00
LUNCH
1 kg. OF RICE                                  18.00
250g. OF VEGETABLE                   6.50
150g, OF DRY FISH                      18.00
GREEN LEAVES (BUNDLE)          3.00
½ COCONUT                                    4.50
COCONUT OIL (175mg.)               6.00
SPICES                                               6.00
2 LOVES OF BREAD                        9.00
250g. OF DAL                                    11.00
500g OF VEGETABLE                     14.00
1  COCONUT                                      8.50
200G. OF DRY FISH                        22.50
SPICES                                                 6.00
DINNER/SUPPER
1kg. OF RICE                                  20.00
250g. VEGETABLE                          6.50
500g, FISH                                       18.00
250g. OF DAL                                 11.00
SPICES                                                6.00
½ COCONUT                                     4.50
1kg. OF RICE                                     18.00
500g OF FISH                                    20.00
GREEN LEAVES (ONE Bundle)       3.00
250g. VEGETABLE                             8.50
COCONUT OIL, 175 ml.                   6.00
½ COCONUT                                       4.50
SPICES                                                  6.00
TOTAL

                                                RS.      161.50

                                                    RS.     167.00
*For normal diet a family needs an income of Rs. 4,845.00  Per month, for a household of four persons.             
**For alternative diet Rs.5,010.00 per month, for household of four persons.    
                                                                                                 
On Nutritional Approach Based Poverty Line is  Rs. 4,845.00 per month per Household’
On Nutritional and Necessary Amenities Based poverty Analysis, income for Necessary amenities should be added:  i.e., i. Children’s Education Rs. 120.00  ii. Health Rs. 80.00  iii. Cloths  Rs. 260.00  Total Rs. 460.00                (according to survey of 1994)

*** Thus, Nutrition and Necessary Amenities based Poverty Line is Rs. 5,305.00    In 1994, official Poverty line was Rs. 1,200.00  per household of four person per Month.   This poverty line seems to be very lower compared with the Nutritional Approach based Poverty line.  Then, a question  can be asked, how about 40% of household were eligible for benefit of ‘Poverty Relief Programmes.  It was revealed that the people have reported lower income to synchronize with the lower poverty line, to  the “Implementing Authority”.

*QUANTITIES OF FOOD NEEDED TO CONSUME TO OBTAIN 2,250 CALORIES PER DAY PER PERSON; ADOPTED USING THE GUIDELINES PROVIDED BY INDIAN NUTRITION SURVEYS.


 BIOLOGICAL/SUBSISTENCE APPROACH OF MEASURING POVERTY,  (2013)

I HAVE USED FOLLOWING FOOD CONSUMPTION DATA FOR ANALYZING THE POVERTY LINE, AND CALCULATING HOUSEHOLDS  BELOW THE POVERTY LINE, USING HOUSEHOLD INCOME DATA OF THE DEPARTMENT OF CENSUS AND STATISTICS, THE DATA OF "THE HOUSEHOLD INCOME AND EXPENDITURES SURVEY (HIES) OF 2012 -2013.

Note:  THESE COST OF SUBSISTENCE (EXPENDITURE) CAN BE USED FOR AVERAGE/NORMAL HOUSEHOLD FOOD  EXPENDITURE MEASURES FOR 2015 AND 2016.

TABLE: 2.  ESTIMATED COST FOR THREE MEALS A DAY – 2012 – 2013 (HOUSEHOLD OF FOUR PERSONS)

THREE MEALS
*NORMAL DIET                   COST   (RS.)
**ALTERNATIVE DIET           COST   (RS.)
BREAKFAST
2 LOAVES OF BREAD                     80.00
1 COCONUT                                        45.00
250g OF DAL                                       32.00
SPICES                                                  12.00
1kg. OF RICE                                    65.00
½ COCONUT                                    24.00
100g. OF DRY FISH                        70.00
SPICES                                               12.00
LUNCH
1 kg. OF RICE                                     70.00
250g. OF VEGETABLE                      24.00
150g, OF DRY FISH                        130.00
GREEN LEAVES (BUNDLE)            15.00
½ COCONUT                                      45.00
COCONUT OIL (175mg.)                 40.00
SPICES                                                 12.00
2 LOVES OF BREAD                      80.00
250g. OF DAL                                   32.00
500g OF VEGETABLE                    40.00
1  COCONUT                                    40.00
200G. OF DRY FISH                      128.00
SPICES                                               12.00
DINNER/SUPPER
1kg. OF RICE                                     75.00
250g. VEGETABLE                           24.00
500g, FISH                                        260.00
250g. OF DAL                                    32.00
SPICES                                                12.00
½ COCONUT                                     24.00
1kg. OF RICE                                     70.00
500g OF FISH                                  270.00
GREEN LEAVES (ONE Bundle)     15.00
250g. VEGETABLE                           24.00
COCONUT OIL, 175 ml.                 40.00
½ COCONUT                                     22.00
SPICES                                                12.00
TOTAL

                                      TOTAL (RS.) 832.00


                                 TOTAL    (RS.)   956.00
  *For normal diet a family needs an income of Rs. 24,960.00   Per month, for a household of four persons.          
** For alternative diet Rs.  28,680.00  per month, for household of four persons.

Note:  THESE COST OF SUBSISTENCE (EXPENDITURE) CAN BE USED FOR AVERAGE/NORMAL HOUSEHOLD FOOD     EXPENDITURE MEASURES FOR 2015 AND 2016. *QUANTITIES OF FOOD NEEDED TO CONSUME TO OBTAIN 2,250 CALORIES PER DAY PER PERSON; ADOPTED USING THE GUIDELINES PROVIDED BY INDIAN NUTRITION SURVEYS.

On Nutritional Approach Based Poverty Line is  Rs.24,960.00 per month per Household’

On Nutritional and Necessary Amenities Based poverty Analysis, income for Necessary amenities should be added:  i.e., i. Children’s Education Rs. 480.00  ii. Health Rs.1,200.00  iii. Cloths  Rs.750.00  Total Rs.2,430.00                (according to the market price/based on field observations)

*** Thus, Nutrition and Necessary Amenities based Poverty Line is Rs. 27,390.00   (2012 -2013)

4.  CALCULATION OF POVERTY BASED ON 2013 DOCS INCOME DATA

Table: 3  Percentages of Households Below Poverty Line In 2012/2013
DECILE
GROUP
INCOME GROUP
PERCENTAGE OF HOUSEHOLDS %
TOTAL[%]                URBAN [%]               RURAL [%]        ESTATE [%]
ALL
GROUPS

   100.0                              100.0                            100.0                     100.0
1                     
Less than 10,836
   10.0                      4.5                     11.1              14.1
2
10,836 -16,531
   10.0                      6.3                     10.6              13.8
3
16,532 – 21,286
   10.0                      6.3                     10.6              13.8
4
21,287 – 25,903
   10.0                      7.5                     10.4              13.0
--
% in poverty
 40% -42%           24.6%-26.6%         42.6%-45.0%      54.7%-56.0%
5
25,904 – 30,814
   10.0                       8.1                     10.3             12.2
6
30,815 -36,758
   10.0                       9.3                     10.2             10.1
7
36,759 – 45,000
   10.0                     10.9                     10.0               8.3
8
45,001 – 57,495
   10.0                     12.1                       9.6               6.3
9
57,496 – 83,815
   10.0                     15.6                       9.0               4.9
10
More than 83,815
   10.0                     19.4                       8.3               3.5
---
Non- Poor Population
   60.0%                75.4%                   57.4%           55.3%
*On Nutritional/Biological approach, s household of four persons needs to earn an income of Rs.24,960.00 to consume foods at nutritionally accepted standard, then poverty line should be fixed approximately around, an income of Rs, 25,000.00 per household per month.

** On the basis of Nutritional and necessary Amenities approach additional expenditure may be added to food consumption cost. On this approach, a household of four persons need to earn an income to satisfy cost of  household subsistence and basic amenity, and thus a house hold should earn an income of Rs. 27,390.00 to meed these requirements.

NOTE:  
THIS POVERTY ANALYSIS ARE BASED ON THE 2012-2013 HOUSEHOLD INCOME DATA AND             HOUSEHOLD FOOD EXPENDITURE ESTIMATED DATA FOR 2012-2013.  IT INDICATES THE STATES OF HOUSEHOLD INCOME OF POOR INCOME RECEIVING HOUSEHOLDS THAT FALL IN THE POVERTY GROUP.  THIS SEVERE STATE OF POVERTY IN ALL SECTORS WHICH INDICATES THAT NEARLY (MORE OR LESS) 45% OF THE HOUSEHOLDS HAD RECEIVED LESS INCOME COMPARED WITH THE STANDARD OF REQUIRED INCOME TO SATISFY THE HOUSEHOLD FOOD CONSUMPTION NEED IN THE NUTRITIONAL APPROACH MEASUREMENTS.  THIS SITUATION MIGHT HAVE AFFECTED MORE ACUTELY TO CHANGE THE POLITICAL SITUATION IN JANUARY 2015.   IT SHOULD BE NOTED THAT A NEW GOVERNMENT WAS ESTABLISHED BY POOR PEOPLE THEMSELVES IN SRI LANKA.   NO ONE COULD HAD POWER TO CHANGE THE PREVIOUS STRONG POLITICAL LEADERSHIP, BUT ONLY THE POOR PEOPLE, THOSE WHO SUFFERED ECONOMICALLY,  AS THE COUNTRY HAD BEEN LAGGED BEHIND, AND  HAD NOT BEEN ENTERED IN TO A ECONOMIC PROGRESS/NEW PATH OF COMPETITIVE DEVELOPMENT, IN THE COMPETITIVE FREE TRADE ECONOMIC CONCEPTS.

According to the following analysis, the incidence of poverty in Sri Lnka during 2012-2013 is more higher than the headcount ratio of poverty declared by the Government Agencies.
A Woman Works as Housemaid
This analysis of incidence of poverty used household income data of the Department of Census and Statistics of Sri Lanka, of “The Household Income and Expenditure Survey [HIES] of 2012/2013.  The “Poverty Line” is calculated using food price data of 2012/2013 and household income required to buy food necessities to maintain dietary intake equals to the standard of calorie requirement of 2250 per person per day.  The quantities of food requirements was adjusted to consist with the food consumption patterns of lower 50% of the household income groups, which was adopted by a field survey on rural food consumption in 1994 [for details see Tennakoon, 2000, HARTI].

On this biological or subsistence approach, at least 40% of households in Sri Lanka live below poverty line, in Urban sector: nearly 25%, in Rural sector, nearly 43%, and in Estate sector, nearly 55% live in poverty.

The living standard of the poorest of the poor in Sri Lanka is appalling, and this state directly affect to the existence of malnutrition among elders, and it also burden heavy cost for the government to incure expenditure for free medical facilities for a substantial percentage of population.


A  Man Working as a Casual Labourer
 in a Packing Industry

Consider the statistics of following table on the food consumption patterns of the poorest of the poor in rural sector in Sri Lanka.  I have observed this pattern of food consumption in rural areas, by most of the poorest of the poor, and expenditure was calculate using current market prices.  Even for this type of lean food norm, a household need to earn an income of Rs. 17,760.00 per month.  I analysed the households in this poorest income category by using income data of 'The Household Income and Expenditure Survey [HIES] of 2012 -2013, of The Department of Census and Statistics of Sri Lanka, and I reveled a considerable percentage of poorest households in Urban, Rural and Estate Sectors.  About 10.8 percent - 11.5 percent in the Urban Sector, about 21.7 percent - 22.5 per cent in the Rural Sector, and about 27.9 percent - 28.5 percent in the Estate Sector fall below the level of poorest consumption norm.










Table: 4  Consumption of Food by Poorest Households
[Poorest Households Below an income of  Rs. 17,760.00 Per Month]
Consumption of Food by a Household Per Day[A Household of Four Persons]
Type Meals
Type of Food and Quantity
Cost [Rs.]

Breakfast
No f\Food Taken for Breakfast
Tea
25g. of Tea and 250g. of Sugar [per day use]

20.00
45.00
Lunch
1 kg. of Rice
250g. Dal
½ Coconut
Cheap Fish
Spices
80ml. of Coconut Oil
85.00
38.00
25.00
90.00
15.00
28.00
Dinner/Supper
2 Loves of Bread
½ Coconut
Cheap Dry Fish
250g. of Vegetable
Spices
116.00
25.00
60.00
30.00
15.00
Total
Total for Three Meals
592.00
*According to this food consumption pattern of a household fall in poorest (poorest of the poor)category need an income of  Rs. 17,760.00 per month for survival.

(During the last couple of decades, poor families could made a two bed room small houses with cement bricks, and thatched with asbestos sheets; as their young redundant members (of the agricultural households) had opportunity to work in army, garment factories, in construction works, in middle east.  But, when that individuals marry and seperate, the question come again. Many policy makers see this as "development", and prepare reports based on statistics shaped with such visualizations, to show that poverty has decreased.  Actually these families suffer from want of nutritional diet, and many of them suffer from malnutrition.)

What are the implications of these statistics. We have followed urban bias development approach, which lead, in large scale, heavy constructions, both building, road construction, and private housing construction.  Poverty has increased.

Sri Lanka: The higher Level Committee of Officials, 1988, appointed by then President J.R. Jayawardena, has clearly stated, that, "... reduction of employment and malnutrition must be given the highest priority, and the urgency it deserves".


A Woman Working as Casual labourer
in  a Tea Packing Industry
Robert S. McNamara, 1975, reviewed that "... How to raise the productivity of the rural poor in developing countries is one of the two or three most urgent questions confronting international development community today.  .. the number of the absolute poor increases, .... despite more than two decades of extraordinary world wide economic growth, ... The problem is not merely the benefits of economic growth have been inequitably distributed, as they have,  ... but that the poor themselves have been unable to contribute that growth. ... The solution, then, lies in raising the productivity of the poor, so that their own incomes can rise as those of others in their societies do. .. But how".  How the access of poor to contribute to the national economic growth could be improved and strengthened.  LEFTISTS DO NOT HAVE AN IDEA OTHER THAN DESTRUCTION, TO SEEK THE WAY ENTER TO POWER.

"...If we could not alter the situation, development will have failed." [McNamara, 1973].



"I consider it crime to tolerate poverty in any society, because poverty and misery are synonymous".
[Ranasinghe Premadasa, Prime Minister, Sri Lanka, 1988]

"... However, many more persons come under the category of the working poor.  They require,...  more productive and better paying sources of livelihood - better jobs.  Thus, in the Sri Lankan Context, it seems inappropriate to focus policy intervention only on the unemployment problem alone".  [Ronnie de Mel, Minister of Finance and Planning - Sri Lanka, 1988].

Under the lines of above guiding advice, we have to follow multiple approach to tackle the captioned question:
1. Programmes for employment generating in common, and employment generating for       technically/professionally advanced youths for better/attractive salaries.
2. Remedies for under employment, to increase their productivity,
3. Upgrading technical/professional education with support of private sector, to compete in the international labour market,
4. Accelerated "regional Development Programmes" for backward districts, and 
5. Overall economic development with international cooperation, and industrial development to produce substitutes to the Imported necessities.

The average daily wages of the labouring poor is very low, and a labour working in building construction sites receive about Rs. 1250 - 1350.00[equal to 9.00 US Dollars]  per day, and a woman labour in construction sites receive about Rs.1000.00 [equal to 7.70 Us Dollars] per day..  Most of labours have work only for 5 1/2 days, except some urgent sites.  The skilled workers/professional trained workers, and technical officers/foreman, like  masons ans carpenters receive fairly good wages, about more or less Rs. 2500.00 [equal to about 17.00 Us dollars per day.

According to the information received from a recent field survey, the labour class employees dail wage rates are given below:

LABOUR CLASS DAILY WAGE RATES

Skilled Labourer: 1. Masons              Rs. 2,250.00     US$ 15.00
                               2. Carpenters        Rs. 2,250.00     US$ 15.00
Other Casual labourers:
                              1. Labourer in Construction          Rs. 1,500.00    US$  10.75
                              2. Sundry labourer                          Rs. 1,250.00    US$   9.00
                              3. House and Garden labourer      Rs. 1,000.00    US$   7.15
Woman Labourer:
                              1. Garment Factory                        Rs. 1,500.00    US$  10.75
                                    (skilled labourer)
                             2. Garment Factory                         Rs. 1,000.00     US$   7.15
                                    (other labourer)
                             3. Housemaids                                   Rs.   750.00     US$   5.35
                             4. Other woman casual labourer     Rs.   500.00     US$  3.70

          In the state of food consumption and entertainment, poors have no access to meet requirements due mainly to daily salaries and retail prices. Compare the price statistics of required items with the normal wage rates of the poors.  The  labour class casual worker in construction fields (non-skilled worker) receives a daily wage of Rs. 1000.00 to 1,250.00 (US$: 7.00 - US $: 9.00). Compare with the retail prices of some necessaries:

Item                             Price in Rs.                         Price in US$     
1kg. Fish                      600.00 - 800.00                     4.40 - 5.80  
1 kg of thalapath        900.00 - 1,100.00                    6.20- 8.20
1kg. of Beef                 900.00 - 1,000.00                      6.50 - 7.20
1kg. of pork                650.00 - 700.00                      4.40 - 5.20
Bottle of Arrack       1500.00 -1700.00                 10.20 - 12.20
Bottle of Beer              360.00 - 400.00                    2.80 - 3.80 

Rising cost of living is a new phenomenon during last 12 months.  The trend in increase of food items has become a passion, it cannot be, because of drought, there might be other reasons.   There is no proper plan to increase meat production, and it cause for increase in meat prices.
  
The Households below the poorest line of the poverty rarely buy fish and meats, i.e, beef, pork and mutton, and use of licensed liquor due mainly to their lower income.e.

WE SHOULD NOT ENCOURAGE CREATION OF ETHNIC GOEGRAPHICAL AREAS IN THE ISLAND, BECAUSE IT WILL DISTORT THE ETHINIC INTEGRATION AND SOCAL DEVELOPMENT, AND WILL THREAT TO NATIONAL DEVELOPMENT AND KEEP LOR AND ORDER.  BUT, THE GOVERNMENT SHOULD  ENCOURAGE AND INVEST FOR REGIONAL DEVELOPMENT, AS IT IS THE ONLY WAY FOR ECONOMIC DEVELOPMENT, AND ERADICATION OF POVERTY, AND ALSO IT IS THE ONLY WAY FOR ACCELERATING ACCESS FOR POOR COMMUNITIES TO CONTRIBUTE TO THE OVERALL NATIONAL ECONOMIC DEVELOPMENT AND CONTRIBUTING TO THE NATIONAL ECONOMIC GROWTH.


A Casual Labourer at a
 Construction Site
In this context, Hon Prime Minister's vision on our development should be encouraged, praised and admired in future planning in development.

I appreciate, if readers would give their comments on these poverty calculations, so that I would be able to further improve my analysis.  Readers' comments are welcome.  I would more appreciate any one could give me guide lines and comments on my analysis. Please send your comments to my email: 

ddtkonn48@yahoo.com

I was very glad to receive valuable comments from development economists, but response


I have observed this week, (14.02.2017 - 17.02.2017) buying of daily food stuffs by the daily waged labour families. The details of the goods they bought and expenses are given below:

(1). One person who is working as household worker in bungalows, on daily paid salary, bought goods for his day consumption;
Stuffs for three members in the family;

Stuffs Cost Rs.
1  1/2 Kg. of rice 120.00
500g. of small fish 250.00
Coconut oil 90ml.    30.00
Vege. Beet 250g.      35.00
Vege.  pumpkin        30.00
One loaf of bread     60.00
Spices                     50.00
Sugar 250g.    30.00
Tea pack 50g.          35.00
3 eggs  45.00
---------------------------------------------------------------------------------------------------
All Stuffs 670.00
_______________________________________________________________
The bulk of this food sack per day per three persons in a family is enough to meet the minimal food requirements of the family. The family needs to earn Rs.20,100. 00 (Rs. 670.00 x 30 days) per month to maintain the minimal food requirement.

(2). A person working in construction site as daily paid worker, bought following food stuffs for his four member family;

Food Stuffs Cost Rs.   
2 kg. of rice 160.00
500g. fish (large variety of fish) 450.00
Coconut oil 90ml.                       30.00
Vege. beans 250g.                      40.00
green leaves (One Mitiyak)         30.00
One coconut                              50.00
Spices                                       30.00
Sugar 250g.                               30.00
tea pack 50g.  35.00
_________________________________________________________
All food stuffs 850.00
_________________________________________________________
This family [of four persons] needs an income of Rs. 25,500.00 (Rs. 850.00 x 30 days) per month to maintain their basic nutritional requirement per month.

(3).  I observed a very low income group family of four person, fall in the vulnerable group of the poverty continuum..  The husband of this family has gone away, and the mother has to work as housemaid on a daily wage;

Food stuffs Cost Rs.
One loaf of bread                           60.00
1 kg. of rice  80.00
dry fish 50g.  60.00
Vegetable pumpkin                         30.00
coconut oil 90ml.                           30.00
tea pack 50g.                                 35.00
Sugar 250g.                                  30.00
One Coconut                                  50.00
____________________________________________________________
All food stuffs 375.00
____________________________________________________________
This family needs an monthly income of Rs. 11,250.00 (Rs.375.00 x 30 days) to satisfy the family's food need, although the family food intake fall more below the nutritionally accepted level.

-----------------------------------------------------------------------------------------------------------------------
Casual Labourer at a
Contsuction Site



THE POVERTY MEASURED ON NUTRITIONAL  FOOD CONSUMPTION NORMS  IS ON THE PACE OF RISING, AS 42% IN THE RURAL SECTOR AND 51% IN THE STATE SECTOR HOUSEHOLDS ARE LIVING BELOW POVERTY LINE, IN SRI LANKA.  WE SHOULD ENCOURAGE ACCELERATED REGIONAL DEVELOPMENT PROGRAMMES IN OVERALL PROVINCES IN THE ISLAND.  WE SHOULD NOT ENCOURAGE FOR CREATING GEOGRAPHICAL ETHNIC REGIONS IN THE ISLAND AS IT HAS BEEN IN OPERATION SINCE 1920S WITH THE BRITISH PLANTATION DEVELOPMENT IN SRI LANKA. MANY MIGRANTS BROUGHT TO PLANTATIONS WERE RESETTLED IN DRY ZONE AREAS BY BUINESS MERCHANTS TO CULTIVATE THEIR ENCROACHED CROWN LANDS IN THE DRY ZONE AREAS. ONLY WAY TO  ESTABLISH ETHNICAL COHESION, COOPERATION AND DEVELOPMENT TOGETHER IS THE UNDERTAKING OF RAPID REGIONAL ECONOMIC DEVELOPMENT PROGRAMMES.


A Casual Labourer at a
Construction Site
CONSTRUCTION LABOURER

















These two persons have migrated to a suburb area near Colombo city, and have rented a one bed room house, for each.  He has three children.  He receives a daily wage, about Rs. 1250.00 per day.  He has work for 20-22 days per month.












Education is the Most powerful Tool in Eradication of poverty

      It has been seen that Sri Lankan political parties and some civil organizations are being tangled in the misconceptions of so called leftism and so called capitalism, and are in rivalry each other without knowing virtue of meaning and neo-concepts and realities.  They are deceiving poor people, but all their concepts are used only for their and their families' benefits and well-being.  In our all political parties, the more powerful and old hands always restrain and resist the people, the more talented, educated, in best I.Q, proficient in social relations, proficient in neo-international economy, proficient in love and compassion and in good faith in God to come in to politics.  This might has been one reason of our under development.   The people of such qualities should come forward to politics, if they have genuine desire for getting rid of present adverse situation, and should kick old hands to go back.

           In the neo context of re- awakening, many countries have developed their technological higher education with the partnership of private sector, through Affiliated University Colleges, in many fields of technology.  They have affiliated to the National Universities.  since we do not have such facilities, many Sri Lankan students, selling their parents' properties go to abroad for higher education.  We should be shame of our laggard situation.  If we can't attend to this type of very simple task, I don't know how these people can develop a country, can develop a economy, can restructure the economy, seek solutions to vast unemployment and poverty.


Dialogue Between Ms. Maggiya and Mr. Maharala

Maggiya:  O oh; Maharale, isn’t it true, that leagues and gangs those who fired Lanka, demonstrated ‘harthal’, burned public properties, protested and made loud voice against to Provincial Council Bill in 1987, were in wrong stand against your draft bill of proposals for transferring powers to Central Parliament/Central Executive.

Maharala:  O ho; ye, Maggiyo;  Now we are in a season of turmoil.  All they opposed to my proposals;

                  Have you heard this poem?
                “Eat and Eat creates fond of tasty,
                Fond of tasty inspires with the eagerness,
                Eagerness intrigues with the affection,
                Affection misleads the direction of the right path”

Maggiya:  Is it correct?

Maharala: Can’t you see?, where were you?


Maggiya: Oh; Yeh.



Dr. D. Tennakoon
dingiri50@gmail.com



ddtkonn48@yahoo.com

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