Progressive taxation schemes and redistributive social policies, as well as public services such as those discussed already in the fields of education, healthcare, housing, sport and recreation are of course indispensable tools to combat poverty. However, they also present certain limitations. They depend on economic growth, as measured by an increase of the country’s GDP per capita. In addition to the ecological barriers that such a strategy now faces, this may create an incentive to create a ‘business-friendly’ investment climate and to lower the regulatory and tax burdens on corporations, as a means to stimulate wealth creation, with potentially exclusionary impacts: it is a strategy, in other terms, that may encourage the development of an extractive and exclusive economy, when what is needed is a regenerative and inclusive economy. Second, tax-and-transfer approaches may be politically unsustainable, at least where social protection takes the form of welfare policies narrowly targeted to benefit the poor, rather than the middle class: the result of targeting thus conceived is that the median voter may not support such policies, insofar as they are perceived as (and presented by populist politicians as) taking from the rich and deserving groups of the population to provide aid to ‘undeserving’ poor. It is this finding that is at the heart of the
It is therefore vital, in addition to designing progressive taxation schemes and to strengthening social protection and access to essential services, to move towards a more inclusive form of economy, one that ensures real opportunities for all. This is not just a slogan. It means designing a model of development that takes seriously the duty of the state to ensure access to employment. It may require providing social support to young adults, particularly from low-income backgrounds, to compensate for the obstacles they face and reduce the perpetuation of advantage and of disadvantage. It means, finally, taking seriously the prohibition of discrimination on grounds of poverty, in order to combat effectively all forms of povertyism. We consider these tools in turn.
A jobs-rich model of development: making the right to work a reality
Given the negative impact on children’s well-being and development of growing up in households with low resources, a key element in breaking the cycle of poverty must be developing a range of policies to enhance access to adequate income and resources for these households. Improving access to employment for adults from low-income backgrounds therefore has an essential role to play in combating child poverty.
How to achieve this? The focus since the 1990s has been on supply-side factors, rather than on the demand side of the employment market; on the individual’s incentives to work, rather than on the structural factors that society can influence. The emphasis on ensuring that ‘work pays’ belongs to that approach, and it is of course essential that in-work poverty be addressed, if it is to provide a remedy against the perpetuation of poverty (see Peña-Casas et al, 2019). Similarly, lifelong learning and training policies can support parents’ access to the labour market by ensuring that they acquire the ‘right’ qualifications: those that the market demands. Finally, the
All these tools matter and should be strengthened further. Another approach, however, complementary to the policies that focus on the individual, is to impose on governments a duty to ensure that each individual able and willing to work will be provided with a job, paid at least a living wage and offering working conditions consistent with the requirements of a decent job.
This would go beyond the right to work as it is currently recognised in international human rights law, most notably in article 6 of the International Covenant on Economic, Social and Cultural Rights. Until now, this right has not been interpreted as requiring from states that they provide jobs to the long-term unemployed. Instead, it has been read more narrowly, as imposing on states obligations of means, rather than obligations of result. As expressed in the ILO Employment Policy Convention, 1964 (No 122), states have a duty to adopt ‘an active policy designed to promote full, productive and freely chosen employment’. In other terms, states must endeavour to promote employment, by appropriate macroeconomic and fiscal policies; but they are excused if they fail to guarantee a job for all. It is now time to ask whether the interpretation should be revised.
The proponents of the ‘Job Guarantee’ idea, in particular within the Levy Economics Institute at Bard College (Tcherneva, 2020), take as their departure point that unemployment has huge costs both to the individual and to society. For those affected, unemployment is not only a loss of income, significantly increasing the risk of poverty (Sen 1997). It also results in a depletion of skills and in a loss of confidence
In addition to its impact on the individual, unemployment imposes a huge cost on society. It represents a waste of talent, when so many societal needs are still unmet. In advanced economies that provide unemployment benefits or social aid, unemployment has to be compensated for with public funds, to provide basic income security to the individual. In addition to those direct costs, unemployment has a range of indirect costs (Watts and Mitchell, 2000). It is also correlated with poor health and depression, and with higher crime rates (Raphael and Winter-Ebner, 2001). The failure to address unemployment may compound the impacts of an economic crisis, since the decrease in demand may create the conditions for a longer recession. In local communities where layoffs take place, indirect job destruction spreads like a disease to surrounding areas (Tcherneva, 2019).
In contrast to the general acceptance of mass unemployment as a permanent feature of the economy (and, for some, as a convenient means to justify paying workers less), the ‘Job Guarantee’ recognises that each individual has a right to work (Mitchell, 1998). Its basic premise is that governments, including in particular local government, or private entities with the support of public funding, will provide a decent job at acceptable conditions (including a fair remuneration) to each working-age individual who seeks to work, if that individual is unable to find employment at acceptable conditions elsewhere.
A society that provides a Job Guarantee recognises that each individual has a valuable contribution to make to social progress. It is a society that recognises the worthiness of each of its members, and that refuses the idea that some are redundant. It is also a society that acknowledges the distinction between
Jobs that benefit the local community or society as a whole, rather than only the specific employer, will typically be economically viable only if supported through the public purse. This is the case for jobs that establish or maintain ‘commons’, such as ecosystems or projects that are accessible to all, from collective vegetable gardens to community-led energy cooperatives, public housing projects and initiatives in the sharing economy; jobs that contribute to the circular economy, encouraging the repair, reuse and recycling of consumer items; and jobs that provide care and support to groups of the population that cannot afford to pay for such support themselves – including older persons, people with disabilities or low-income households. The type of jobs generally proposed in the context of the Job Guarantee are often not prioritised or seen as financially viable by the private sector, which means that most of these jobs do not compete with private sector jobs.
Guaranteeing the right to work through a Job Guarantee can be costly (since the jobs created will be financed by the state). Yet, the immediate fiscal implications should be balanced against the enormous benefits, both for the individual and for society, of combating long-term unemployment. In addition to the savings involved – since unemployment benefits or social aid to the job-seekers can be suspended – the workers provided with employment will spend as consumers and contribute to social insurance schemes. The services they will provide will benefit society, meeting needs that, in the absence of a solvent demand, markets currently cannot respond to, and can contribute to environmental sustainability. This will also give meaning to their work, bringing it closer to what one scholar has described as ‘socially capability-enhancing work’, in contrast to dominant approaches to labour that value it only
An additional benefit of introducing a Job Guarantee is that it will serve to de-commodify labour – the immediate implication being that, in all the branches of the economy, including in the profit-driven sectors, the bargaining position of workers will be strengthened, since they have the fall-back option of seeking decent employment paid for by the public purse. In 1919, article 427 of the Treaty of Versailles stated that ‘labour should not be regarded merely as a commodity or article of commerce’, and this principle was again enunciated in 1944, in the ILO Declaration of Philadelphia. It is this idea that the Job Guarantee will help to realise.
Two fears have been expressed in the debate concerning the introduction of a Job Guarantee through public employment schemes. First, it is said, the introduction of the Job Guarantee could be used as a convenient pretext for making social protection conditional on accepting a job, provided such a job is considered ‘suitable’. This is a legitimate concern. There exists a strong political pressure to increase work requirements within existing social protection support, a trend sometimes described as the ‘activation’ of social protection (De Schutter, 2015). In countries where social protection is weak and fiscal space limited, it also may be politically easier to provide income security by establishing or expanding public employment programmes, rather than by expanding other forms of (unconditional) social protection.
The shift ‘from welfare to workfare’ is not inevitable, however. Participation in the scheme should be on a strictly voluntary basis, not as a condition for receiving other kinds of support. The introduction of a Job Guarantee scheme could be paired with a requirement of non-retrogression in the provision of unconditional social protection, to avoid a slide towards workfare. It could also be combined with initiatives to better value care work, performed within households or communities, often without remuneration or even formal recognition.
A basic income for young adults
A truly inclusive society, one that is designed to ensure real equality of opportunities, may also rely on the tool of a universal basic income (UBI). While a range of proposals have been made to implement this idea, either to complement classic welfare programmes (Van Parijs and Vanderborght, 2017) or, in a libertarian-conservative version of a ‘negative income tax’, to replace it (Friedman, 1968), our preferred scenario is that of a UBI introduced to provide all young adults, between the end of secondary education and age 25, with a monthly stipend, on an unconditional basis. This would be providing children from a low-income background with a third chance, where interventions in early childhood and attempts to provide inclusive education remain insufficient. Providing a UBI to support all young adults as they enter into their adult lives may be the most realistic option, both politically and
Contrary to a widespread assumption that income support provided unconditionally may discourage work, the provision of a UBI in such a form may in fact favour labour market integration. A study of a randomised cash transfer in Uganda showed that most youth (who normally would not have access to credit in the absence of aid) invested the transfer in vocational skills and tools, leading to significant increases in cash earnings (almost 50% relative to the control group): the real annual return on capital was 35% on average (Blattman et al, 2014). Similarly, an experiment with the introduction of a UBI scheme in rural Kenya shows the benefits of even a relatively modest guaranteed and unconditional income scheme (of the equivalent of US$0.75/day) for improved food security, mental and physical health, and entrepreneurship – protecting households from having to sell productive assets in times of crisis and encouraging them to invest in productive investment (Haushofer and Shapiro, 2016). Studies of UBI schemes in rich countries show either no negative impact on employment or only a marginal impact (a 10% income increase induced by an unconditional cash transfer decreasing labour supply by about 1%), but significant improvements in health and educational outcomes, especially among the most disadvantaged youths (Marinescu, 2018).
By definition, due to its universal nature, UBI for the youth is not stigmatising, and the risks associated with targeting in means-tested programmes are avoided. In most countries, such schemes could be financed by increasing taxes on inheritance. This would also be a coherent way of tackling the growth of wealth inequalities. In OECD countries, the inheritances and gifts reported by the wealthiest households (top 20%) are
The prohibition of discrimination on grounds of socioeconomic disadvantage
Given the extent to which discrimination causes and perpetuates poverty and social exclusion (see Chapter Two, in
At its core, the idea is simple enough: people in poverty cannot be treated adversely simply because they are poor; in principle, their underprivileged socioeconomic situation cannot be allowed to result in a reduced ability to enjoy human rights. Yet, discrimination against individuals or groups of individuals on grounds of socioeconomic disadvantage remains widespread, and largely unpunished. The introduction of an explicit protection from discrimination on grounds of social condition in particular would not only have a strong symbolic value, sending a clear message to policy makers in particular that people may not be treated less favourably because they are poor. It would also have institutional consequences, in particular by allowing Equality Bodies (independent institutions tasked with preventing and addressing discrimination and promoting equality) to contribute more effectively to the fight against poverty, alongside the specific contribution other human rights mechanisms can make.
This remains a largely unfinished task. While some progress has been achieved on paper (in the legislative and regulatory framework), the protection from discrimination on grounds of social status is in practice, at best, highly uneven (Thornton, 2018); there are in fact few examples of this ground being
The potential role of the prohibition of discrimination on grounds of ‘social condition’ could be maximised by relying on an expanded notion of the concept of ‘social origin’ which appears in Article 2(2) of the International Covenant on Economic, Social and Cultural Rights. The Committee on Economic, Social and Cultural Rights (CESCR) understands this expression to refer to the ‘social and economic situation when living in poverty or being homeless’ (UN Committee on Economic, Social and Cultural Rights, 2009, para 35). As noted by Angelo Capuano, however, this definition may be unnecessarily restrictive, and thus potentially irrelevant in many contexts where discriminatory treatment is based. First, the ‘social status’ of a person ‘is reflected more by prestige and esteem rather than merely property status, wealth or economic status’ (Capuano, 2017, p 105). Moreover, ‘the criteria which the CESCR seems to use to give content to the concept of
Two implications follow. A first implication is that, in the understanding of ‘disadvantaged socio-economic condition’ or simply ‘poverty’ (whatever the anti-discrimination framework provides for), attention should be paid to both objective and subjective factors – in other terms, to both the circumstances a person faces and the stereotypes or prejudice associated with such circumstances. Guidance may be found in the interpretation provided to the prohibition of discrimination based on the term ‘social condition’, which appears in Article 10 of the Charter of Human Rights and Freedoms of the Canadian Province of Québec:
The definition of ‘social condition’ contains an objective component. A person’s standing in society is often determined by his or her occupation, income or education level, or family background. It also has a subjective component, associated with the perceptions that are drawn from these various objective points of reference. A plaintiff need not prove that all of these factors influenced the decision to exclude. It will, however, be necessary to show that as a result of one or more of these factors, the plaintiff can be regarded as part of a socially identifiable group and that it is in this context that the discrimination occurred. (Comm. des droits de la personne v. Gauthier [1993], 19 C.H.R.R.D/312 [English summary])
Legal tools can be designed to address these situations in their variety. In Ireland for instance, the Equality (Miscellaneous Provisions) Bill 2021 (which is still pending adoption at the time of writing) defines having a socioeconomic disadvantage as being member of a
socially or geographically identifiable group that suffers from such disadvantage resulting from one or more of the following circumstances: (a) poverty, (b) source of income, (c) illiteracy, (d) level of education, (e) address, type of housing or homelessness, (f) employment status, (g) social or regional accent, or from any other similar circumstance. (Houses of the Oireachtas [Ireland], 2021)
In South Africa, the Promotion of Equality and Prevention of Unfair Discrimination Act (implementing Section 9 of the Constitution) contains a ‘Directive Principle’ that requires giving special consideration to the inclusion of, inter alia,
Public entities, moreover, should not be allowed to make policy decisions or decide regulatory reforms without inquiring into the impacts on people in poverty and ensuring that their decisions do not worsen inequalities. We detail this positive duty further below.1
The three roles of equality and non-discrimination in combating poverty
The prohibition of discrimination on grounds of social origin or property extends to any action or omission that disproportionately affects members of a particular group, in the absence of a reasonable and objective justification. (Such form of discrimination is referred to as de facto discrimination, to distinguish it from discrimination that is de jure, in other terms, that relies explicitly on poverty or socioeconomic condition as a characteristic on which adverse treatment is based.) There is both a negative and a positive face to this. First, regulatory or policy measures that are neutral on their face may be considered discriminatory if they do not take into account the disparate impacts they may have on certain groups of the population, defined for instance on the basis of ‘property’, or income levels. In South Africa for instance,
It is this idea that is at the heart of a ‘positive duty’ to consider the impacts on poverty in law and policy making, as imposed for instance in Scotland since April 2018 as part of the Equality Act 2010: this duty, referred to as the ‘Fairer Scotland Duty’, imposes on a number of public bodies in Scotland to ‘actively consider (“pay due regard” to) how they can reduce inequalities of outcome caused by socio-economic disadvantage, when making strategic decisions’.2 In practice, this means that decisions such as where to locate a school or a hospital, or how to develop a neighbourhood, should be made with the involvement of the local community, and aim at adopting a decision that will reduce, rather than increase, the exclusionary impacts of lack of income – thus contributing to a more inclusive, less divided society. Diana Skelton, a volunteer for ATD Fourth World, described to one of us3 how low-income families expressed their concerns after plans were announced for the Monklands University Hospital in North Lanarkshire to move: these families were living in the vicinity of the existing hospital, and they feared that they might not be
Human rights impact assessments serve to alert policy makers to the impacts on the human rights of the poor of the policies they design and implement. Human rights impact assessments, it should be emphasised, are distinct from other types of assessments, including social impact assessments or sustainability impact assessments, with which they present certain similarities. The specificity of human rights impact assessments is that they examine the intended and unintended impacts of policy measures on the ability of the states parties to these agreements to respect, protect and fulfil the human rights of people living in poverty. They therefore should be based explicitly on the normative content of human rights, as clarified by the judicial and non-judicial bodies that are tasked with monitoring compliance with human rights obligations. References in impact assessments to development goals or to poverty are therefore not a substitute for a reference to the normative components of human rights.
Given the disproportionate and devastating effect of economic and financial crises on groups most vulnerable to poverty, States must be particularly careful to ensure that crisis recovery measures, including cuts in public expenditure, do not deny or infringe those groups’ human rights. Measures must be comprehensive and non-discriminatory. They must ensure sustainable finance for social protection systems to mitigate inequalities and to make certain that the rights of disadvantaged and marginalised individuals and groups are not disproportionately affected. (OHCHR, 2012, para 54)
The Guiding Principles on human rights impact assessments of economic reforms presented in 2018 by the Independent Expert on foreign debt and human rights provide further guidance as to how the human rights impacts of fiscal consolidation programmes, as they are adopted following an economic crisis leading to an increase in the sovereign debt and thus additional borrowing by states, should be conducted (Bohoslavsky, 2018).
The equality requirement goes beyond this negative duty, however. In order to prevent discriminatory results, states may have to provide positively for differential treatment benefiting certain categories of the population facing systemic disadvantage. In cases of entrenched discrimination, states may
States therefore should dedicate greater resources to improve the condition of groups who face systemic discrimination (UN Committee on Economic, Social and Cultural Rights, 2009, para 39). They also should move up the causality chain, to tackle the underlying causes of social exclusion. Indeed, once it is recognised that ‘a great deal of poverty originates from discriminatory practices – both overt and covert’, it follows that poverty-reduction strategies will be fully effective only if they also address ‘the socio-cultural and political-legal institutions which sustain the structures of discrimination’, and eliminate ‘the laws and institutions which foster discrimination against
Finally, in order to properly assess the contribution of prohibiting discrimination on grounds of socioeconomic disadvantage to breaking the cycles perpetuating poverty, the discrimination faced by disadvantaged individuals and households should be seen for what it is: a form of systemic discrimination which affects a range of areas including health, education, housing and employment.
Addressing discrimination on grounds of socioeconomic disadvantage is therefore ineffective if limited to one sphere alone. For instance, ensuring that employers do not discriminate on grounds of poverty will have a limited impact if disadvantaged individuals continue to face obstacles in having access to quality education, or live in poor neighbourhoods distant from the place of work; supporting schools with a high proportion of disadvantaged pupils may not make a significant difference to these pupils if residential segregation remains unchallenged, so that these pupils remain concentrated in certain schools; and neither combating discrimination in employment nor in education will suffice if health inequalities persist, lowering workers’ productivity and academic achievement.
This also points to the limits of an approach to equality of opportunities which relies on classic understandings of ‘merit’. In fact, societal improvements pursued in the name of ‘meritocracy’, including the use of a classic anti-discrimination framework simply prohibiting discrimination but without including class-based affirmative action, could be counter-productive. As emphasised by the Harvard political philosopher Michael Sandel, the more a society promotes meritocracy by insisting on equality of opportunity at the starting line, the more
But the meritocratic ideal is problematic at an even more basic level. Reliance on ‘meritocracy’ is entirely inappropriate, indeed, where disadvantaged individuals have not been given fair opportunities to acquire certain qualifications or to have their experiential competences formally recognised. Instead, affirmative action policies are essential to break the vicious cycles that result from the systemic nature of the discrimination faced by people in poverty. Whereas preferential treatment is well established as regards the allocation of goods or services that compensate for poverty or social exclusion, as
Examples abound. Israel successfully designed a form of class-based affirmative action to access the country’s most prestigious universities since the mid-2000s, which determines socioeconomic disadvantage on the basis not only of financial status but also of neighbourhood and high school attended, family socioeconomic status (including parental education and family size) and ‘individual and/or family adverse circumstances’ (Alon and Malamud, 2014). In India, while the Constitution includes various anti-discrimination provisions and bans the practice of ‘untouchability’ (Art 17), it also states that special measures may be adopted ‘for the advancement of any socially and educationally backward classes of citizens’, as a means to reduce social inequalities for members of these groups (Art 15, (4) and (5)). This mainly takes the form of reserved seats in public offices and educational institutions (both public and private), as well as job reservations in the public sector, for the castes and tribes mentioned in Articles 341 and 342. In addition however, Article 16(4) of the Constitution allows for ‘the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State’: consistent with this constitutional mandate, the Central Educational Institutions (Reservations in Admissions) Amendment Bill stipulates that 27% of seats are reserved for ‘Other Backward Classes’ in publicly funded higher education institutions, a policy which led to significant improvement in the socioeconomic diversity in universities (Basant and Sen, 2020).
Affirmative action contributes to increased diversity in different sectors and levels of the professional sphere, providing role models to adolescents and young adults from
See Fairer Scotland Duty: Interim Guidance For Public Bodies (Scottish Government, March 2018), p 5.
At a meeting attended in London by Olivier De Schutter, in November 2019.
This should be nuanced, since not all welfare states seek to achieve equality: some models aim only at protecting individuals from extreme deprivation, without setting wealth redistribution as an objective in its own right. See Gosta Esping-Andersen (1990).