Fighting poverty

AS poverty continues to be under spotlight with many civil organisations around the world clamouring for eradication of the social ill, the Namibia Economic Society (NES) yesterday joined the bandwagon when it held a half-day workshop in Windhoek.

With poverty being a major obstacle to economic growth in developing countries around the world, global aid and individual country efforts are necessary in this ongoing fight. International data reveal that most of the world’s poor lives on less than US$1 (N$6,61) per day.The NES roundtable discussion on whether poverty reduction efforts in Namibia were effective attracted participants from the public, private and civil sectors.Addressing the gathering, NES Chairman Mihe Gaomab II said the issue was very pertinent to Namibia, which according to international research, was among the countries with the highest income disparities.The unemployment rate is officially at 35 per cent.He added there was urgent need for poverty reduction to be discussed seriously at national level; as this would in turn boost economic growth.National Planning Commission Deputy Director Vekondja Tjikuzu said despite the Government having identified poverty eradication as one of its priorities, there were many challenges facing the country.He said to date Namibia was yet to adopt a national definition of poverty.Challenges that needed tackling to reduce and ultimately do away with poverty include skills shortage and limited education, HIV-AIDS, alcohol abuse, crime and corruption.Tjikuzu said another problem was when the more informed and leaders of society dealt with the issue of ‘eradicating poverty’ without consulting the poor themselves, hence evading reality.To this end, he added that the Government was carrying out poverty assessments at grassroots level in each region, as part of its action plan on poverty reduction.He said three regional assessment projects had been completed in Ohangwena, Caprivi and Omaheke.The remaining 10 will be completed early next year, said Tjikuzu.These assessments focused on specific groups, grassroots poverty reduction programmes and policy changes; which intended to improve the production level and quality life of those considered poor.Small to medium-sized enterprise (SME) development was identified as a way of reducing poverty.SMEs’ contribution to the gross domestic product has risen significantly in the last three years from eight per cent to 12 per cent.The sector employs around 20 per cent or 60 000 of the total labour force.SMEs have proved in most countries to be the backbone of economies, and if developed properly, have a major role to play in boosting economies by providing employment to the ordinary citizen.Tuwilika Hamwele, the National Coordinator of the Joint Consultative Council – the umbrella body for SME service providers – called on stakeholders to aggressively fight for SME development in Namibia.She said there were a number of challenges facing the sector such as lack of education, information and skills and HIV-AIDS, which the Government and private sector could assist more in dealing with.Hamwele said it was unfortunate that SMEs were not taken seriously in some quarters, yet they are creating much-needed jobs.She also said it was time that SMEs were well equipped with entrepreneurial skills so as to know how to grow and develop into major formal conglomerates.A researcher at the University of Cape Town, Laura Poswell, gave a presentation on the situation in South Africa.She said although the economy of South Africa was growing, poverty was still a major problem the country needed to deal with.International data reveal that most of the world’s poor lives on less than US$1 (N$6,61) per day.The NES roundtable discussion on whether poverty reduction efforts in Namibia were effective attracted participants from the public, private and civil sectors.Addressing the gathering, NES Chairman Mihe Gaomab II said the issue was very pertinent to Namibia, which according to international research, was among the countries with the highest income disparities.The unemployment rate is officially at 35 per cent.He added there was urgent need for poverty reduction to be discussed seriously at national level; as this would in turn boost economic growth.National Planning Commission Deputy Director Vekondja Tjikuzu said despite the Government having identified poverty eradication as one of its priorities, there were many challenges facing the country.He said to date Namibia was yet to adopt a national definition of poverty.Challenges that needed tackling to reduce and ultimately do away with poverty include skills shortage and limited education, HIV-AIDS, alcohol abuse, crime and corruption.Tjikuzu said another problem was when the more informed and leaders of society dealt with the issue of ‘eradicating poverty’ without consulting the poor themselves, hence evading reality.To this end, he added that the Government was carrying out poverty assessments at grassroots level in each region, as part of its action plan on poverty reduction.He said three regional assessment projects had been completed in Ohangwena, Caprivi and Omaheke.The remaining 10 will be completed early next year, said Tjikuzu.These assessments focused on specific groups, grassroots poverty reduction programmes and policy changes; which intended to improve the production level and quality life of those considered poor.Small to medium-sized enterprise (SME) development was identified as a way of reducing poverty.SMEs’ contribution to the gross domestic product has risen significantly in the last three years from eight per cent to 12 per cent.The sector employs around 20 per cent or 60 000 of the total labour force.SMEs have proved in most countries to be the backbone of economies, and if developed properly, have a major role to play in boosting economies by providing employment to the ordinary citizen.Tuwilika Hamwele, the National Coordinator of the Joint Consultative Council – the umbrella body for SME service providers – called on stakeholders to aggressively fight for SME development in Namibia.She said there were a number of challenges facing the sector such as lack of education, information and skills and HIV-AIDS, which the Government and private sector could assist more in dealing with.Hamwele said it was unfortunate that SMEs were not taken seriously in some quarters, yet they are creating much-needed jobs.She also said it was time that SMEs were well equipped with entrepreneurial skills so as to know how to grow and develop into major formal conglomerates.A researcher at the University of Cape Town, Laura Poswell, gave a presentation on the situation in South Africa.She said although the economy of South Africa was growing, poverty was still a major problem the country needed to deal with.