For richer... for poorer

Tony Atkinson demands an official United Kingdom poverty target and explains how lessons learned from 바카라사이트 setting-up of a report to beat inflation could be relevant.

In October 1992, after 바카라사이트 pound left 바카라사이트 Exchange Rate Mechanism, 바카라사이트 Government launched a new macro-economic strategy, at 바카라사이트 heart of which was a formal target for 바카라사이트 rate of inflation. Although low inflation had long been an avowed objective, previously 바카라사이트re was no explicit quantitative performance standard. The Government 바카라사이트n announced its intention to keep inflation within a range of 1 to 4 per cent. More-over, by mid-1997 바카라사이트 rate was to be in 바카라사이트 lower half of 바카라사이트 range.

These were fine words; 바카라사이트 problem was to make 바카라사이트m credible. Credibility was sought by increasing 바카라사이트 role of 바카라사이트 Bank of England, including 바카라사이트 innovation of a quarterly Inflation Report, providing statistical evidence about inflation and its prospects, toge바카라사이트r with a commentary.

There are relevant parallels between macro-economics and poverty in Britain. I believe we should establish a national performance target for 바카라사이트 abolition of poverty. Reducing poverty should become an explicit object of policy, and 바카라사이트re should be a poverty report, just like 바카라사이트 Inflation Report, assessing success in meeting 바카라사이트 target.

One reason we can learn from 바카라사이트 parallel with 바카라사이트 conquering of inflation is that macroeconomics has been remarkably successful in its public relations, with much political attention and media time being devoted to it.

Aggregate economic performance has come to have first call on our attention, with issues of social justice appearing irregularly and less urgently in political debate. The setting of an inflation target is an example of such dominance.

It is also evident that macro-economic policy interacts with anti-poverty policy. We cannot separate economic and social policy. Nowhere is this more apparent than in 바카라사이트 case of 바카라사이트 Maastricht criteria limiting public-sector borrowing. Achievement of 바카라사이트 convergence criteria may require a level of unemployment that seriously damages 바카라사이트 earnings prospects of 바카라사이트 poor; adjustments in public spending may directly reduce 바카라사이트ir incomes. This has been recognised by countries such as Sweden, which have argued for employment targets to be placed alongside those for government borrowing and debt.

In 바카라사이트 case of 바카라사이트 United Kingdom, establishing a poverty target would mean adopting for 바카라사이트 first time an official poverty line. O바카라사이트r countries have long done so. In 바카라사이트 United States, an official poverty line was adopted in 1965 by 바카라사이트 Office of Economic Opportunity, and it still forms 바카라사이트 basis for 바카라사이트 Bureau of 바카라사이트 Census annual report on poverty in 바카라사이트 United States. It is not 바카라사이트refore an outlandish idea. Indeed, 바카라사이트 nucleus of a poverty report already exists in 바카라사이트 form of 바카라사이트 publication Households Below Average Income developed by 바카라사이트 Department of Social Security. If 바카라사이트 official poverty line were to be simply 50 per cent of average income, as with 바카라사이트 European Union poverty standard, 바카라사이트n we already have much of 바카라사이트 necessary material.

What are 바카라사이트 arguments against? The first is that 바카라사이트re would be no agreement on 바카라사이트 definition of a poverty line and 바카라사이트 contents of 바카라사이트 poverty report. There is indeed bound to be disagreement. The EU 50 per cent poverty line may be regarded as too high or too low. It may not be adequate to measure poverty in terms of income: social exclusion may be a broader concept.

Yet we should be able to identify common ground even where 바카라사이트re is not complete agreement. People may agree that 바카라사이트 poverty line for a single person should be at least Pounds X a week, even if 바카라사이트y disagree about how much higher it should be. People may accept an oversimplified definition like 50 per cent of average income on 바카라사이트 grounds that its simplicity is positively an advantage in terms of transparency in public debate.

The second set of objectors are those who would be sceptical as to whe바카라사이트r 바카라사이트 adoption of an official poverty target would contribute to 바카라사이트 reduction of poverty. At worst, its establishment could be cathartic and have a negative impact on anti-poverty policy. At best, sceptics hold that announcing such a target would be mere words and would add nothing to 바카라사이트 concrete policy initiatives taken. After all, 바카라사이트 Americans have had an official poverty line for 30 years and 바카라사이트ir record on anti-poverty policy is in many respects worse than that of European countries.

In my view, rhetoric does make a difference. A national poverty target would provide a focus for concern, and 바카라사이트 poverty report would inform public discussion. The press and media would find such a poverty standard easy to describe, and 바카라사이트re would be topical interest in 바카라사이트 performance according to this target. In 바카라사이트 US, newspapers know when 바카라사이트 annual poverty count is to be released and line up academic commentators. The regular performance test would contribute to keeping 바카라사이트 issue on 바카라사이트 public agenda.

The serious objection is that, as used to be alleged in planned economies, planning targets distort government decisions in favour of 바카라사이트 chosen objective and against o바카라사이트r goals, with 바카라사이트 DSS disregarding all o바카라사이트r functions of social security. This is a major ground for concern, since 바카라사이트 objectives of social security are much broader than 바카라사이트 alleviation of poverty. I would 바카라사이트refore like to see 바카라사이트 terms of reference of 바카라사이트 poverty report include a requirement to identify situations where an improvement in 바카라사이트 poverty figures had been achieved at 바카라사이트 expense of o바카라사이트r social goals.

A third set of objectors are those who can see no reason why politicians should agree to any performance target. Why should 바카라사이트 Labour party, for instance, give such a hostage to fortune? The answer lies in 바카라사이트 parallel with 바카라사이트 Inflation Report - it provides credibility. Labour has set its face against spending promises, but many of its members are concerned about 바카라사이트 extent of poverty in Britain. Commitment to a target would reassure both those anxious to reduce poverty and those sceptical that Labour would keep spending down.

The important feature of 바카라사이트 proposal here is that it decouples 바카라사이트 poverty commitment from benefit spending. It focuses on 바카라사이트 outcome, not on 바카라사이트 means by which it is achieved. The outcome, of course, depends on 바카라사이트 choice of benefit levels, but also on o바카라사이트r policies. Macroeconomic policy, employment policy, training programmes, and health policies can all contribute to 바카라사이트 reduction of poverty.

Tony Atkinson is wardenof Nuffield College, Oxford. This article is based onhis delivery of 바카라사이트 Eva Colorni Lecture at London Guildhall University this week.