Welcome to CENFACS’ Online Diary!
20 January 2021
Post No. 179
The Week’s Contents
• FACS, Issue No. 70, Winter 2021: Generational Economics and Reduction of Intergenerational Poverty
• 2021 as Leafy Year
• The Objective of Ensuring that Poor People Consume Sustainably, Safely and Healthily
… and much more!
Key Messages
• FACS, Issue No. 70, Winter 2021: Generational Economics and Reduction of Intergenerational Poverty
How to avoid and reduce the transmission of poverty to future generations
The 70th Issue of FACS, CENFACS’ bilingual newsletter, looks at poverty reduction from the intergenerational perspective or an intergenerational approach to poverty. The Issue uses economic theories of the household or family while drawing inspiration from the work carried out by CENFACS’ Africa-based Sister Organisations in order to help reduce intergenerational poverty. The Issue also considers some elements of basic generational accounting at family level. In doing so, the Issue deals with intergenerational transmission of disadvantages and risks that may induce poverty.
Far from being an account on intergenerational transmission of poverty, it provides some basic recipes for those working with intergenerational poor in order to explore ways of helping them to reduce or escape from intergenerational and life-cycle poverty. Amongst these recipes, there are: the improvement of the socio-economic mobility and earnings capacity, mobility of intergenerational poor, the intergenerational transmission of well-being and wealth, etc.
Under the Main Development section of this post, we have given Key Summaries making the contents pages of FACS Newsletter, Issue No. 70.
• 2021 as a Leafy Year
2021 has been dedicated as a leafy year or a year of leaves of poverty reduction. Indeed, leaves and herbs can help to relieve from illnesses or pains. As we are in a global situation of a challenging pain brought by the coronavirus pandemic, we thought it could be a good idea to focus on leaves as ways of relieving us from pains.
In fact, many medicines come from natural plants, herbs and leaves. One can think of medicinal plants in traditional medicine. Plants, herbs and leaves have some curative or healing power. They can heal from illnesses or ill health or health poverty. Ourselves, we use a leaf as our logo, a leaf of poverty relief.
This 2021, we will be celebrating what leaves can do for those living in poverty. Leaves are the main organs of photosynthesis and transpiration. Leaves can have many functions to play in human lives such as they can help to manufacture food through the photosynthesis process.
Since we are in January month of Responsible Consumption, we would like this month to be of responsible and sustainable consumption of leaves. It means whether we consume leaves for manufacturing our food or healing ill body and mind, consumption of natural leaves need to be responsible and sustainable. This is our way of keeping harmony between our consumption of leaves and nature.
2021 will be a year that we would like to turn over a new leaf; a year of resolve covered with poverty reduction leaves to do better for and with those in need. As we go along the year, we shall release more activities and events that will make our year of leaves of poverty reduction, a Leafy Year.
For further details about CENFACS’ Leafy Year, please do not hesitate to contact CENFACS.
• The Objective of Ensuring that Poor People Consume Sustainably, Safely and Healthily
This week, we are as well revisiting our Poverty Reduction Goals Project, particularly its Goal No. 2 and Objective 5 of Ensuring that Poor People Consume Sustainably, Safely and Healthily. We are doing it to echo our month of Responsible or Sustainable Consumption.
Indeed, it is possible to decrease or end the state of lacking money and or material possessions in order to use available resources to satisfy one’s wants or needs. In simple terms, consumption poverty can be tackled, reduced and ended.
Consumption poverty can be tackled like any other types of poverty. It is possible to work with consumption poor to create ways for them to consume sustainably, responsibly, safely and healthily. We will be working with them to achieve this objective 5 as part of the implementation of our Poverty Reduction Goals project and related Goal No. 2.
For those who may be interested in this implementation, they should not hesitate to contact CENFACS.
Extra Messages
• Gifts of Peace: Only 11 Days to Create Life-Changing Magic of Peace
Our Gifts of Peace highlighting the Season of Giving will soon reach the deadline. We continue to appeal to those who did not have the opportunity to donate by telling them that there are only eleven days remaining to create a Life-Changing Magic of Giving something for Sustainable Peace.
We understand that at this time of the COVID-19 shock and adversity it is difficult for people to donate. However, for those who can we are appealing to them to donate since the need is still urgent and pressing for those who need both health and economic peace to mitigate the distributional and differentiated effects of the COVID-19 and lockdowns.
We hope you will keep these Gifts of Peace in your minds and help us reinvigorate the giving season (which has been tarnished by COVID-19 and lockdowns) through your donation or Gift of Peace.
• Transitional Development Programme, Africa-based Sister Organisations and African Continental Free Trade Area
This week, we are also looking at how Africa-based Sister Organisations (ASOs) are preparing or have prepared themselves in order to embrace the African Continental Free Trade Area (AfCFTA) despite the COVID-19 and lockdown handicaps.
The AfCFTA could be much the story of businesses that are looking for market niches and opportunities. However, this does not stop organisations from the voluntary and community sector to explore ways of gaining some not-for-profit benefits within the AfCFTA.
Our work (in the context of Transitional Development Programme) about this preparation is on anything that the ASOs are trying to do in order to be part of this new experience or process of delivering service to continental market or users. This preparedness could include things such as training, seminars, webinars, online discussions and forums, conferences, etc.
It is indeed about making sure that ASOs are not lagging behind any new developments in Africa, especially at this time when most economies in the world have moved towards regional economic trading blocks. This trade integration shift has some consequences in the way organisations like ASOs can deliver their services to their local and national beneficiaries. It could mean that ASOs can start to prepare for transition in catering for a wide market of poverty reduction and sustainable development.
For further details about how ASOs are reacting to stay on top the poverty relief game and agenda, please do not hesitate to contact CENFACS.
• COVID-19 News from the Field
We have good and bad news from some of our Africa-based Sister Organisations (ASOs) which are carrying out work to support those who have been severely affected by the health and socio-economic impacts of the coronavirus pandemic and related lockdowns in Africa.
The bad is that COVID-19 is still rampant in Africa even if it is spreading at a lower rate. The good news is that there are ASOs that are trying to support those who have been severely affected by the socio-economic impacts of the COVID-19 pandemic.
For example, they are helping in places like Congo Brazzaville where there has been food shortage and insecurity, in the Central African Republic where there is still insecurity regarding the outcome of election and adverse effects of COVID-19, etc. ASOs are still working in places where there have been natural events (e.g. torrential rains that caused life-threatening and destroying floods) in countries like Madagascar to assist flood-impacted people and communities to come out the natural disaster.
All the above is happening under the background of COVID-19 and lockdowns. The above are what we call Poverty Relief Happening, simply meaning that poverty reduction is still happening despite the mounting pressure of the coronavirus pandemic on poor and most vulnerable people.
The above is just the news from the field we have so far. For those who have been doing fieldwork or visited projects in Africa, if you have any news; we would be grateful if you could share it with us. Thank you!
Main Development
• FACS, Issue No. 70, Winter 2021: Generational Economics and Reduction of Intergenerational Poverty
How to avoid and reduce the transmission of poverty to future generations
The contents and key summaries of the 70th Issue of FACS, which is the sole development of this post, are given below.
• • Contents and Pages
Key Concepts – page 2
Africa-based Sister Organisations and the Allocation of Non-renewable Resources between Different Generations – Page 3
The Gender Dimension of Intergenerational Transfers of Poverty – Page 3
Intergenerational Vulnerability to Wealth Transfer as Key Driver of Intergenerational Poverty in Africa – Page 4
Excessive Feeling of Immediate Living Well as a Contributing Factor to Intergenerational Poverty in Africa – Page 4
Comment les organisations africaines peuvent-elles travailler avec des familles africaines pour endiguer ensemble la pauvreté intergénérationnelle? – Page 5
La contribution des organisations africaines à la réduction des inconvénients corrélés – Page 5
Comment les organisations africaines peuvent-elles encourager des politiques de pré-distribution et de distribution des ressources économiques pour juguler la pauvreté la transmission de la pauvreté intergénérationnelle? – Page 6
La réduction de la pauvreté intergénérationnelle passe aussi par la restructuration des structures familiales – Page 6
The Dilemma in Investing in Current Consumption and Children’s Future by African Parents – Page 7
Strategies to Avoid and or Reduce Intergenerational Transfers of Poverty – Page 7
Distributional Effects of COVID-19 on Intergenerational Poverty Transfer – Page 8
Continuous Income Deficit as a Source of Intergenerational Poverty – Page 8
Survey on Global Goals, African Children and Intergenerational Poverty Transfer – Page 9
African Voices on Generational Shift: How African Diaspora’s Money Transfer is Complementing Intergenerational Well-being Transfer in Africa – Page 9
Question about Intergenerational Advantages and African Continental Free Trade Area – Page 9
Well-being and Wealth Transfer Project – Page 10
• • Key Summaries
Please find below the key summaries of the 70th Issue of FACS from page 2 to page 10. These key summaries start with the clarification of the economic jargons used in this Issue since not all our readers and followers understand them.
Before moving on to other key summaries, we are going to define the key concepts of the Issue which are: generational economics, intergenerational poverty and intergenerational transmission of poverty.
• • • Key Concepts (page 2)
What is generational economics?
Generally the dictionary definition (1) of economics refers to economics as
“the study of the problem of using available factors of production [e.g. natural resources, labour and capital] as efficiently as possible so as to attain the maximum fulfilment of society’s unlimited demands for goods and services” (p. 153).
Generational economics is part of economics or economic knowledge and thoughts that explains us how resources are allocated between different generations at a point in time and analyses how this is done. It is that part of economic theories that is relevant in interpreting patterns in intergenerational transfers. Generational economics tends to deal with the best use of the resources between current consumption and investment in future generations. In this respect, there could be competing needs between current and future ones.
From the above conceptual clarification, the 70th Issue of FACS is about dealing with the limited availability of economic resources that parents or families may possess to fulfil their unlimited needs while meeting the needs relating to the development of their children’s human capital.
What is intergenerational poverty?
To understand intergenerational poverty, we have selected the following online definition given by a Commission on Poverty of Hong Kong (2):
“Intergenerational poverty refers to the poverty induced by the socially/economically challenged background of a person’s parents. It therefore follows that tackling intergenerational poverty would involve the provision of support and opportunities essential to a person’s sound, balanced and sustainable development but which support and opportunities would, if not for the intervention, be beyond reach as a result of the socially/economically challenges his/her parents face. Since life cycle development is cumulative, the earlier the compensatory intervention takes place, the less will be the impact of deprivation on the development of a child/youth”. (p. 1)
From this intergenerational perspective of poverty, the 70th Issue examines at a practical level how for example Africa-based Sister Organisations are trying to work with local parents in order to establish a compensatory mechanism and avoid the repeat of poverty to their children and grandchildren.
What is intergenerational transmission of poverty?
Briony Smith and Karen Moore (3) point out that
“Intergenerational transmission of poverty can be defined in terms of the type of transmission, the type of poverty, its irreversibility, and the individual/household/contextual factors which enhance or interrupt transmissions” (p. 4)
From the points made by the above named authors, we can now borrow the definition of intergenerational transmission of poverty from Kate Bird and Kate Higgins (4), who argued the following:
“The intergenerational transmission of poverty can be described as the private and public transfer of deficits in assets and resources from one generation to another. Poverty is not transferred intergenerationally as a package; but as a complex set of positive and negative factors that affect an individual’s chance of experiencing in the present or at a future point in their life-course” (p. 9)
In terms of the 70th Issue of FACS, we are talking about private intergenerational transfers of these deficits in assets and resources. We are as well working on poverty transmitted from parents to children and grandchildren, but not the one transmitted from young generation to old generation.
• • • Africa-based Sister Organisations and the Allocation of Non-renewable Resources between Different Generations (Page 3)
One of the concerns when the topic of generational economics is raised is about the allocation of natural resources that cannot be replaced when they are used up; allocation between current and future generations. In this matter, we have Africa-based Sister Organisations (ASOs) that are striving to work with local people so that the allocation of resources can happen in a fairly balanced way. This is despite the fact that those who are in urgent and pressing need may not immediately see the benefit of a fair distribution or use of these resources.
For further details about this work of ASOs on resources allocation, please contact CENFACS.
• • • The Gender Dimension of Intergenerational Transfers of Poverty (Page 3)
Poverty can be transmitted from mother to girls and granddaughters. For example, early pregnancies for young girls or early marriages (child marriages) can increase the probability of intergenerational transfer of risks that induce poverty and gender inequality.
To back the above statement, Kate Bird and Kate Higgins (op. cit.) argue that
“Women and girls who lose out in asset inheritance are not always compensated through higher investments in human capital. This limits their agency, capabilities and livelihood options, making it more likely that they will be poor. This has implications for their children and their intergenerational transfers of poverty” (p. 23)
For those who would like to dip into the gender dimension of intergenerational transfers of poverty, they can request the full article about this from CENFACS.
• • • Intergenerational Vulnerability to Wealth Transfer as Key Driver of Intergenerational Poverty in Africa (Page 4)
The inability of poor families to withstand what hinders wealth transfer within a family line can be the main reason that poverty is passed down to future generations. Withstanding the handicaps of wealth creation and transfer would help them to reduce intergenerational poverty.
Those who would like to go beyond this summary on this subject, they can contact CENFACS.
• • • Excessive Feeling of Immediate Living Well as a Contributing Factor to Intergenerational Poverty in Africa (Page 4)
Vulnerability to exposure to attacks and arms is one thing. The other thing is when parents would like to live very well for themselves without seeing the benefits of investing in future or the future of their children. Most parents would not do that. However, this narrow thinking can be found amongst the few.
For example, some of the work carried out by our Africa-based Sister Organisations found this type of behaviour amongst some small raw materials traders and diggers in places where diamonds and gold are dug and traded in the Eastern provinces in the Democratic Republic of Congo. Many of those who behave like that fail to pass down their wealth to their children.
• • • Comment les organisations africaines peuvent-elles travailler avec des familles africaines pour endiguer ensemble la pauvreté intergénérationnelle? (Page 5)
La pauvreté intergénérationnelle a des causes multiples et complexes. Malgré cela, les organisations africaines peuvent s’organiser avec leurs bénéficiaires et les locaux pour la réduire. Elles peuvent par exemple procéder à des actions concrètes suivantes pour réduire le mécanisme de transmission de la pauvreté intergénérationnelle:
√ Développer le capital humain des enfants des familles pauvres ou nécessiteuses
√ Informer ces familles et améliorer leurs capacités de gagner de revenus élevés
√ Améliorer ou réduire des mauvaises ou peu productives connexions des parents pauvres
√ Rendre meilleur leurs conditions de logement, de voisinage, d’éducation, d’alimentation et autres
En gros, il s’agit de parvenir à une répartition équitable et équilibrée entre la dépense de consommation courante et l’investissement dans l’éducation et la formation de leurs enfants afin d’éviter et de réduire la pauvreté intergénérationnelle.
L’ensemble de ces initiatives aura des effets bénéfiques sur les ressources économiques que ces familles ont ou pouront avoir accès.
Pour ceux ou celles de lecteurs ou lectrices qui voudront aller dans les détails de ces initiatives ou ce que les organisations africaines font sur le terrain concernant la réduction de la pauvreté intergénérationnelle, ils/elles peuvent contacter le CENFACS.
• • • La contribution des organisations africaines à la réduction des inconvénients corrélés (Page 5)
L’une des caractéristiques fondamentales des familles pauvres est l’accumulation des inconvénients corrélés et multiples. Pour réduire la pauvreté intergénérationnelle dont ces familles font l’objet, il faut diminuer ou anéantir ces inconvénients corrélés et multiples qui les entourent.
La réduction de ces inconvénients corrélés et multiples passe par le travail avec ces familles ou parents pauvres pour améliorer leurs circonstances et leurs ressources réelles et non-monétaires. On peut y arriver par les moyens ci-après: la formation des adultes, l’aide pour améliorer leurs conditions d’emploi et à trouver des occupations mieux rémunérées ou au-dessus du seuil minimum. S’ils ou elles sont des pauvres agriculteurs ou agricultrices, il faut les aider à avoir des prix rémunérateurs de leurs produits.
Grosso modo, il s’agira de rehausser le niveau et la qualité des ressources réelles et occupationnelles qui sont à l’origine de la transmission de la pauvreté aux générations futures, c’est-à-dire leurs enfants et grands enfants.
• • • Comment les organisations africaines peuvent-elles encourager des politiques de pré-distribution et de distribution des ressources économiques pour juguler la transmission de la pauvreté intergénérationnelle? (Page 6)
Loin d’être un problème de moyens seulement, la pauvreté intergénérationnelle est aussi un choix de politique familiale. Un choix de politique familiale parce que nous parlons de la transmission privée, mais pas publique, de la pauvreté.
Pour encourager des familles pauvres à réduire la pauvreté intergénérationnelle, les organisations africaines peuvent travailler avec ces familles afin de les sensibiliser sur le bien-fondé d’une politique familiale basée sur une pré-distribution et redistribution équitable and équilibrée entre les besoins actuels de la famille et ceux des générations à venir de cette même famille. Cela peut demander une remise en cause de certaines valeurs de consommation immédiates pour des valeurs d’épargne futures pour le bien-être de ses progénitures futures.
Pour y arriver, cela demandera une ouverture de dialogue franc entre ces organisations et des familles concernées sur des choix et sacrifices à faire en matière d’élaboration et d’application d’une telle politique afin de créer des conditions nécessaires et favorables à la préservation du bien-être familial.
• • • La réduction de la pauvreté intergénérationnelle passe aussi par la restructuration des structures familiales (Page 6)
Quelque soit le choix fait sur le plan culturel ou structurel entre la polygamie ou la polygénie, il y a lieu d’oeuvrer pour faire en sorte que le mode de famille découlant de ce choix culturel ou structurel ne constitue pas un handicap majeur pour des progénitures issues de ce choix. Cela étant, des organisations africaines peuvent travailler avec des familles au sein des structures et cultures que sont les leurs pour que la pauvreté ne se transmet pas à des générations futures.
L’une des conséquences de ce genre des travaux est que cela peut demander de bouger les lignes traditionnelles si vraiment on veut empêcher que la pauvreté atteigne les générations futures de ces structures ou cultures familiales. D’ores et déjà, la plupart des organisations africaines travaillant avec des familles ont perçu un changement de valeurs familiales avec la modernisation et les exigences économiques actuelles.
Pour conclure, tout en respectant la culture et structure de chaque famille, il y a moyens de travailler ensemble afin que la pauvreté ne soit pas intergénérationnelle pour la famille concenée.
• • • The Dilemma in Investing in Current Consumption and Children’s Future by African Parents (Page 7)
Most sensible parents including the poor ones value the investment in their children’s future. However, because of the level of poverty is so higher for some of them (like the ones working with CENFACS’ Africa-based Sister Organisations), investing in their children’s human capital could become a challenge if not a distant prospect. The poverty challenge is so unbearable that some of the children of these families had to work as child labour.
Nonetheless, no one of them does lose sight about the need to maintain a fair balance between parents’ current consumption and investment in children’s human capital. The only and main problem these African poor parents have is the lack of means to finance current consumption and to save at the same time for the needs of their children in future. There is some support which often falls short as the need is big and complex.
One could hope that the work that CENFACS’ Africa-based Sister Organisations are carrying out with them will enable some of these parents to find solutions to the long standing problem of investing in their children’s human capital.
• • • Strategies to Avoid and or Reduce Intergenerational Transfers of Poverty (Page 7)
Although intergenerational poverty is very complex and multi-dimensional one, it is possible to work with those who are being affected by this in order to avoid, reduce and end it. To do that it requires a clear strategy with projects and well defined realistic goals to be achieved within a specified time frame. Africa-based Sister Organisations can improve their work in this matter by raising awareness about this type of poverty and developing a strategy to mend it even if this is going to take time.
In the development of this strategy, they need take into account the new factors such as COVID-19, the African Continental Free Trade Area, economic downturn in which many African economies are in because of the COVID-19 and lockdowns, etc. They also need to figure out how they can mobilise African resources inside Africa before appealing to outside donors or funders.
• • • Distributional Effects of COVID-19 on Intergenerational Poverty Transfer (Page 8)
COVID-19 has already shown what impacts it can have on health and the economy. From what we have seen so far, it can as well impact poor families in terms of intergenerational transfers of wealth and well-being. The more poor families become poor because of the effects of any disaster (like COVID-19), the more likely they can pass down poverty to their children and grandchildren. Poverty could become hereditary and a life-cycle one in future. That is why eliminating the intergenerational impacts of COVID-19 to poor people and families should not be undermined by just simply arguing that COVID-19 is just like another health crisis.
Those who would like to discuss further about the intergenerational transmission of COVID-19 in terms of poverty, they can do it with CENFACS.
• • • Continuous Income Deficit as a Source of Intergenerational Poverty (Page 8)
Poor people or families who often experience income deficit year after year may not have any other alternative than to build and pass down intergenerational poverty to their children and grandchildren. There could be various factors that could be at play and beyond their own control especially if they are poor, vulnerable and living below poverty threshold.
However, whatever the reason about the continuing income deficits, the fact of matter is that this could create an irreversible situation that could become a way of feeding intergenerational poverty for their future generations. This is why through CENFACS’ Zero Income Deficit Campaign, we are trying to work with income deficit families to help them control the level of their income deficit or turn them into a surplus. We know it is not easy knowing the circumstances of these families and the threats and risks brought by the coronavirus pandemic to ordinary families. But, one must try if they want to see an end to poverty on their children and grandchildren.
Interested in CENFACS’ Zero Income deficit Campaign, please let us know.
• • • Survey on Global Goals, African Children and Intergenerational Poverty Transfer (Page 9)
The 10th African Economic Conference (5) held in Kinshasa (Democratic Republic of Congo) in 2015 argued that
“the attainment of the Sustainable Development Goals may have a significant impact on eliminating intergenerational poverty and inequality in Africa”.
In the light of this argument and as part of our work on generational economics and the reduction of intergenerational poverty, we are conducting a survey on the effects of global goals (such as the United Nations’ Millennium Development Goals [MDGs] and Sustainable Development Goals [SDGs]) between different generations.
The survey is about how MDGs did or SDGs can affect different generations and intergeneration poverty (here poverty between two generations). These two generations are: the generation of children born during the UN Millennium Development Goals (2000-2015) and those of generation of UN Sustainable Development Goals (2015-2030).
We are specifically studying if there is any intergenerational mobility or change has occurred between the generation MDGs and the generation SDGs.
For those who are willing to take part in this survey and / or to complete the questionnaire designed to that effect, please do not hesitate to let CENFACS know.
• • • African Voices on Generational Shift: How African Diaspora’s Money Transfer is Complementing Intergenerational Well-being Transfer in Africa (Page 9)
It is known that COVID-19 and lockdowns have disrupted money remittances from African Diaspora to Africa. Despite that Africans are still remitting money to help families and relatives to get out poverty. How this transfer is contributing to intergenerational well-being in Africa.
Those who would like to add or raise their voices about this, they can contact CENFACS.
• • • Question about Intergenerational Advantages and African Continental Free Trade Area (Page 9)
Do you think that African Continental Free Trade Area will provide more opportunities than challenges for intergenerational advantages for those in need?
• • • Well-being and Wealth Transfer Project (Page 10)
Well-being and Wealth Transfer Project (WWTP) is a project of intergenerational poverty reduction that consists of working with poor families in order to identify the barriers to wealth creation while setting up strategies and building skills that will empower them to develop wealth transfer policy and practice. Through this project, users will learn techniques and skills on how to save income, build inheritance and resources transfer so that their future generations do not inherit poverty and hardships.
WWTP is indeed about how to build generational wealth and well-being which involves the following: investing in children’s human capital, saving for future generations, creating an income earning capacity to pass down to children, financial literacy skills and how to handle resources and assets.
For details including full project proposals and budget for WWTP, please contact CENFACS.
The full copy of the 70th Issue of FACS is available on request. For any queries and comments about this Issue, please do not hesitate to contact CENFACS.
_________
References
(1) Christopher Pass, Bryan Lowes & Leslie Davies (1988), Dictionary of Economics, HarperCollins Publisher, London & Glasgow
(2) https://www.povertyrelief,gov.hk/archive/2007/en/pdf/TFCYPaper4_2005E.pdf
(3) https://www.files.ethz.ch/isn/128111/WP59_Smith_Moore.pdf
(4) Kate Bird & Kate Higgins (2011), Stopping the intergenerational transmission of poverty: research highlights and policy recommendations, Working Paper No. 214, Chronic Poverty Research Centre (www.chronicpoverty.org), https://assets.publising.service.gov.uk/media/57a08ae6e5274a27b2000827/WP214.pdf
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