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The Dutch Social Benefit System: Dispelling Myths

Dutch Social Benefit SystemTo an outsider, the Dutch social benefit system may seem easy to gain access to. However, accessing benefits in the Netherlands is not always easy and has its unique obstacles. Additionally, living off of benefits does not come without risks and consequences. There are three common myths regarding the Dutch social benefit system.

Myth #1: The Dutch Receive Benefits Indefinitely

Despite the Netherlands having a reputation for freely distributing welfare benefits, the Dutch social benefit system has become increasingly restrictive recently. This is due to increasing austerity measures, which have continued to intensify, even during the COVID-19 crisis.

Generally, to gain access to the Dutch social benefit system an individual needs to be a Dutch or European citizen, or alternatively, a registered resident. The individual must also be above the age of 18, not be imprisoned or detained, must have little or no income and must not receive a pension or other benefits.

While this may seem like easy entry criteria, the threshold for having social benefits cut is relatively low. Taking a non-student above the age of 21 into one’s home results in an automatic reduction of benefits. This is the case even if the person does not contribute financially and even if they would be homeless otherwise. Social benefit recipients are prohibited from receiving most gifts, even if they are clearly legitimate in nature and not an attempt to cheat the system. If one receives any form of assistance, even from a family member, the government will automatically reduce benefits.

Recently, one low-income, single mother was ordered to pay more than €7,000 after it became known that the woman’s mother would buy the family a bag of groceries once a week. Since the story came to light, the single mother’s case is being re-heard. It is not unheard of for people to be labeled as fraudsters for receiving modest gifts. If the victim’s case did not receive widespread attention, it is likely that the decision would have been upheld.

Myth #2: Foreigners Favored for Social Benefits

As mentioned, one of the first stipulations of receiving benefits is to be legally registered in the Netherlands. For low-income immigrants who have their asylum or residency applications rejected, this creates an overwhelming barrier to economic stability.

Over the past few years, the Dutch government has had to answer to the victims of the childcare benefits scandal, which saw thousands of parents legitimately receiving benefits for childcare having their benefits reclaimed.

Many of these parents were highlighted as potential fraudsters on the basis of having a second nationality and placed on a secret blacklist by the tax authorities. Later, they were denied benefits for things like simple paperwork mistakes or omissions. At one daycare center, only those with a second nationality had their benefits suddenly stripped. Clients with only a Dutch nationality were unaffected.

Myth #3: High Social Benefit Amounts

In many cases, what people receive is less than what they need to get by. For the city of Amsterdam, the net amount that a person may receive per month is €1,021.67 while the maximum for a family is €1,459.52. However, in Amsterdam, the cost of living surpasses that greatly. Those living on this amount must keep a grueling budget with little room for savings. Yet, if they were to receive another form of income to supplement this deficit, they could potentially lose all benefits entirely. This generates a system of poverty where people have little social mobility and must live mere subsistence lifestyles.

In February 2021, the government of the city of Breda chose to officially limit social benefits for homeless people, stating that the homeless do not need as much support money because they have a lower cost of living. The government justified this by stating that homeless people have no housing costs. The cuts had been in place since 2019 but have only recently become policy. The cuts were also motivated by antiquated ideas of addiction. One official invoked ending addiction as a reason to limit social benefits to homeless people.

Political Climate in the Netherlands

In March 2021, Wopke Hoekstra, the party leader of the Christian Democratic Appeal party proposed a plan to gradually reduce eligibility time for benefits. The plan would increase the benefits initially received by beneficiaries from 75% of their old wage to 90% for the first two months. The increase would then be 80% in the next four months and remain at the current 70% in the final six months. According to Hoekstra, the plan would save the government €600 million annually.

Further, over the past decade of government under Rutte’s ruling party, the People’s Party for Freedom and Democracy has pursued a policy of reducing benefits with the aim of eventually phasing out unemployment assistance by 2035 entirely. The Dutch government’s own planning offices have observed this process to be driving an increase in poverty.

Outlook Moving Forward

Poverty in the Netherlands currently occurs at a rate of about 8% of the general population. According to the Dutch Central Planning Bureau (CPB), this percentage is set to increase by one quarter over the next few years if the current plans for further austerity are followed through. The CPB recommends introducing a universal basic income as a solution, which would decrease poverty by 60%.

– Olivia Nelson
Photo: Pixabay

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The Movement Against Casteism in Nepal

Casteism in Nepal
Casteism in Nepal is a centuries-old social class system. This system oppresses lower-caste communities and gives power to upper-caste, educated Nepalis. Historically, the caste system justified the subjugation of lower castes, allowing upper-caste Nepalis to use their status to gain security and power. Roughly 260 million people in South Asia are “Dalits,” or members of lower castes, and are therefore treated as ‘untouchable’ by their social superiors. Dalits in Nepal face social, economic, cultural and political marginalization and routinely fall victim to both institutional and structural discrimination. Despite legal provisions intended to eradicate caste discrimination in Nepal, hate crimes and acts of violence against the Dalit community are rampant. The discrimination and violence Dalits experience severely limit their access to equal education, employment and housing opportunities.

Inadequate Legal Protections

After the monarchy was overthrown, the Nepali constitution explicitly banned discrimination “on grounds of origin, religion, race, caste, tribe, sex, economic condition, language, region, ideology or on similar other grounds.” When the Civil Act 1963 emerged, its primary focus was to make caste-based discrimination a punishable offense. The Untouchability and Discrimination Act and the Constitution of Nepal both provide legal protections for Dalits. Yet, discrimination against marginalized communities in Nepal—particularly Dalit people—remains prevalent.

Despite the instituted legal provisions, cases of caste-based discrimination rarely make it to court, much less result in a conviction. In the rare case of a conviction, perpetrators often avoid jail and walk free after merely paying a small fine. “The discriminatory practice of excluding Dalits from all social practice is so deep-rooted that victims have not been able to speak up for their rights which has resulted in such a few numbers of cases in court,” says Durga Sob, President of the Feminist Dalit Organization.

Discrimination Exacerbated by COVID-19

Discrimination against Dalits is embedded in Nepal’s social fabric. COVID-19 and the subsequent lockdown have only exacerbated incidents of violence and prejudice. A global crisis such as the pandemic not only exposes existing structural inequalities but also deepens their effects. The lockdown has not prevented violence against Dalits from taking place; there were at least 31 documented cases of physical violence against Dalits during the lockdown period. In particular, an incident on May 23rd in Soti Village, Rukum triggered a nationwide anti-caste movement against casteism in Nepal. The movement, called “Dalit Lives Matter,” is inspired by the “Black Lives Matter” movement in the United States. That day, Nabaraj BK, Tikaram Sunar and Ganesh Budha were murdered in Rukum–a hate crime committed out of caste-based prejudice.

Especially Vulnerable Groups

As previously established, state-imposed discriminatory practices are historically embedded in Nepal’s social fabric. As a result, marginalized communities including Dalits and Indigenous Nepalis bare much of the burden from the country’s political and economic turmoil. According to the Human Development Index, Dalits are the poorest community in Nepal. Over half of Dalits live below the poverty line and 45.5% struggle to make ends meet. Not only are Dalits much poorer than their upper-caste counterparts, but they also have life expectancies and literacy rates below the national average. Dalits routinely lack access to religious sites, face heavy resistance to inter-caste marriages, use separate water sources and suffer many additional forms of discrimination.

Among the Dalit community, women face more violence and marginalization than men. Females are deprived of control over resources such as land, housing, money or education. They are also extremely vulnerable to sexual exploitation.

The centuries-long egregious treatment of the Dalit community in Nepal incited nationwide protests and the “Dalit Lives Matter” movement. To effectively put an end to the violence and oppression of casteism in Nepal, beneficiaries of that system–wealthy upper-caste Hindus in Nepal–must use their privilege to uplift and liberate the Dalit community.

– Shreeya Sharma
Photo: Flickr

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Poverty in Sweden

Poverty in Sweden
When discussing global poverty, most tend to think of cases of extreme poverty. However, poverty exists everywhere, even in prosperous countries. Sweden, a Nordic country in Northern Europe known for its progressive politics, is home to a population of about 10 million. Although Sweden is a relatively wealthy country, 16.2% of its people are at risk of falling into poverty. Here are the top 10 facts about poverty in Sweden.

Top 10 Facts About Poverty in Sweden

  1. Sweden uses the European Union (EU) definition of  “risk of poverty” which is when household income is 60% below the median income so about 1,620,000 Swedes are in this category.  Citizens with “low-income standards” are those whose household income is inadequate to afford necessary living costs. Currently, six percent of Sweden’s population (570,000 people) falls under the low-income standards category of poverty.
  2. In 2016, Statistics Sweden announced that less than 1% of the population in Sweden suffers from “severe material poverty”. Sweden defines severe material poverty as not being able to afford at least four of the following six components: unforeseen expenses, a week’s holiday per year, a meal with meat or fish every other day, satisfactory heating and housing, capital goods and bills.
  3. Sweden’s unemployment rate declined in both 2017 and 2018,  but it increased in 2019. In 2018, the unemployment rate was 6.35%, which was a 0.35% decline from 2017. Primarily due to COVID-19, unemployment rates increased by 1.3% in 2020.
  4. Although Sweden abolished its minimum wage, its 110 trade unions, to which virtually all working Swedes belong,  use collective bargaining to set minimum wages in each sector. These provide approximately 60% to 70% of the average wage in Sweden. Swedish law additionally ensures all workers earn 25 paid vacation days and 16 public holidays each year.
  5. Sweden offers equality between genders, especially in the workplace. In 2009, The Swedish Discrimination Act required employers to promote equality between men and women and ban workplace harassment. Then in 2016, Sweden updated its parental leave for both parents to have six months of paid leave. Nevertheless, Sweden has room for improvement, as there is still a 10% wage-gap between men and women.
  6. Sweden’s incorporation of equal education opportunities, beyond gender or socioeconomic status, help increase opportunities for Swedish citizens, thus limiting poverty expansion. Sweden’s Education Act protects free education for all through secondary school. Tuition for higher public education is lower than in other Organisation for Cooperation for Economic Development (OECD) countries; bachelor’s degrees for national students are free.
  7. The free, universal healthcare in Sweden aids the country in fighting poverty. The healthcare system is highly tax-funded and provides equal access to substantial health benefits for all citizens. 
  8. Life expectancy in Sweden is one of the highest in the world: almost 85 years for women and 81 years for men. Municipal taxes and government grants fund elderly care in Sweden. 
  9. Sweden’s aim for equal opportunities benefits everyone, including the disabled. Government policies cover accessibility regulations for disabled citizens across transportation, housing and employment sectors. 
  10. Sweden is famous for its high taxes, but Swedes don’t mind paying them for a few reasons.  First, they trust the Swedish Tax Agency. Second, the country provides services for its citizens “from crade to grave – literally.”

As the Swedish government focuses on opportunities for its citizens, aiming for equality across genders, age and socioeconomic status, the country offers hope to its citizens that they will continue to reduce their poverty statistics.

– Kacie Fredrick
Photo: Flickr

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Single Motherhood in South Africa

Single Motherhood in South Africa
Poverty in South Africa disproportionately affects women, a phenomenon people know as the feminization of poverty. Despite efforts by the South African government to combat severe female poverty and disadvantage, the feminization of South African poverty remains an important issue today. Single motherhood in South Africa is a huge problem because it puts a severe psychological and financial strain on both mothers and children. As of 2015, more than half of the South African population was living under the official poverty line, and homes headed by black African women are at greatest risk of impoverishment.

Despite government efforts to alleviate race-and-gender-skewed poverty with state-sponsored health care, free housing programs and subsidized basic services like water and electricity, poverty in South Africa remains overwhelmingly black and female. Half of South African children grow up in fatherless households, and the number of single mother households in the country has grown over the past several decades. Women must increasingly raise and support children alone, which increases a family’s risk of living under the poverty line.

Single-Mother Households and Poverty

The link between single-mother households and poverty is undeniable, impacting even the world’s most affluent nations. In Europe, single-mother households generally have more than double the poverty rate of two-parent households. Single-parent households are bound to bring in less money than married couples because they only have one source of income. As a result, children living in single-parent homes are three times as likely to be poor as children living with married parents.

South African women earn an average of 28 percent less than men, partly accounting for the disproportionate poverty of female-led households. Women also have a harder time finding jobs than men; almost 30 percent of working-age women are unemployed, compared to 25.2 percent of men. Women are also more likely to work in the informal, unregulated sector or do unpaid work. Other vulnerabilities, like domestic abuse, sexual assault, unwanted pregnancy and HIV prevent South African women from supporting themselves and their families.

There are psychological consequences for children in fatherless households as well as financial strains. Research has found that boys who grow up with absent fathers are more likely to display aggression and other hyper-masculine behaviors, which increases their risk for unhealthy relationships, crime and addiction. Fatherless girls are more likely to engage in high-risk sexual behaviors, experience an unwanted pregnancy or find themselves in an abusive relationship. These consequences propagate the cycle of fatherless homes.

Why is Single Motherhood in South Africa Common?

For almost 50 years, South Africa’s white-supremacist government crystalized systematic inequality on the basis of race through the system of Apartheid. Now, only 25 years into liberation, the South African people still feel these legacies deeply. One of the main contributing factors is the urban-rural divide. Apartheid relegated black South Africans were often in rural homelands far from metropolitan centers and, subsequently, jobs. Thousands of black men had to migrate to cities to find work. They lived in male-only hostels or townships, making low wages and sending money back to their families, who could not leave the homelands to join them.

Some argue that the destruction of the black family structure by the Apartheid regime contributed to patterns of male family-abandonment and neglect. This phenomenon may have had a hand in the recent increase in single-mother households.

Additionally, the vast gap in access to good education, well-paying jobs and respect in society created socio-economic inequalities in South Africa. Black South Africans remain poorly educated, and cyclical, persistent poverty traps many of them, leaving them unable to pull themselves out. In addition, 13 percent of all pregnancies in the country are teen pregnancies, which prevent mothers from finishing school and focusing on a career, resulting in continuous poverty.

The South African government recognizes the scope and seriousness of poverty in single-mother households and has adopted the National Development Plan: Vision 2030 to raise living standards, provide public services and reduce severe poverty and inequality. The policy outlines a plan to invest in education, health services, public transport, housing and social security, as well as welfare policies directed specifically at women and children, like a national nutrition program for pregnant women and a plan to increase women’s enrollment in schools, especially in rural areas. Single motherhood in South Africa is a dangerous phenomenon, and in order to alleviate this problem, women need better access to education, resources and job opportunities.

– Nicollet Laframboise
Photo: Flickr

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Five Ways China Beats Poverty

Five Ways China Beats Poverty
China has made remarkable progress in solving its poverty problems. Between 1986 and 2016, China’s GDP increased from $300.758 million to $11.199 trillion. In 2017, the world’s GDP growth was 2.49 percent, but China’s GDP grew by 6.7 percent. This significant growth is closely related to China’s effective poverty policies. In 2016 alone, the Chinese government lifted 12.4 million people out of poverty.

Five Ways China Beats Poverty

  1. Target individuals in need
    Targeting individuals is one of the ways China beats poverty. In 2012, the first year of President Xi Jinping’s first term, he declared the Chinese poverty issue to be the top task of his presidency. He called it “the baseline task for building a moderately prosperous society,” which will be achieved by 2020.The main approach to achieve this goal is the Minimum Living Allowance Guarantee, or Dibao. Dibao is a program that guarantees every household meets the minimum income level set by local governments. For example, the minimum income level set by the Beijing government was around $162, and the rural minimum income level was $123.Even though this program is controversial because of governmental corruption, it does improve the quality of life in extremely poor households. Between 2013 and 2016, more than 10 million rural people were lifted out of poverty every year, which aids in reaching President Xi’s goal: eliminate poverty by 2020.
  2. Enact comprehensive social development programs
    The second way China beats poverty is by enacting social programs. The Chinese government has implemented many social development programs since 2000, such as nine-year compulsory education. The nine-year Compulsory Education Law was exacted in 1986 with the goal of minimizing illiteracy.Another outstanding social program is the New Rural Social Pension Insurance (NRSP), which was announced in 2009. It was implemented in all counties in 2012, and more than 80 million peasants were covered by this program. This policy stipulates that individuals over 60 years of age can receive pension benefits. The amount is around 10 percent of the average annual income of rural areas in China.This policy targets a wide range of citizens and improves retirement rates, especially for women. The amount given by NRSP is limited, but it has a substantial effect on rural people’s quality of life.
  3. Merge small family fields into cooperatives
    One of President Xi’s strategies to solve poverty in rural areas is merging small family lands into cooperatives. This system pools land by peasants voluntarily giving up their ownership of free land development and becoming shareholders. The peasants then plant commercial crops such as tea to gain more profits. Some local companies invest in these lands and bring more financial benefits to rural areas. This policy solves the problem of deficiency of scattered development and generates a cohesive effect.
  4. Relocate peasants
    Another way China beats poverty is by relocating rural people. People who live in geologically hazardous areas that are prone to landslides and earthquakes, or in remote areas, will be relocated. Approximately 9.81 million people are set to move between 2016 and 2020. This program helps people who are trapped in remote and poor mountain areas and provides them with an opportunity to learn about new ideas and advanced technology.
  5. Develop tourism in villages
    The Chinese government develops tourism in villages by offering experiences based on the community. Visitors can live in local houses and participate in rural activities such as farming and cooking in primary kitchens. One successful example of this program is Lijiang, an old town in Yunnan province. About 15 million visitors come to this town, which generates more than $3 billion in profits every year.

These are five ways China beats poverty, and through these methods the country has seen remarkable progress. Other countries with similar situations can adopt some of these strategies to help solve their own poverty issues.

– Judy Lu

Photo: Flickr

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A Global Example: The Ever-Decreasing Poverty Rate In Belgium

The Poverty Rate In BelgiumBelgium is a country located in western Europe between France and the Netherlands. It became an independent nation from the Netherlands in 1830 and was then controlled by Germany during World War I and II. The foundation of the EU and NATO allowed the country’s capital, Brussels, to become the home for numerous international organizations. The influence of the organizations and membership in the EU and NATO has allowed the poverty rate in Belgium to remain low.

Currently, the poverty rate in Belgium rests at 15 percent. Like many other European nations, Belgium has a high standard of living and per capita income. Belgium consistently ranks among the top nations in the Human Development Index (an index that measures the quality of life in countries). In 2007, Belgium ranked number seven, which was ahead of the country it once was a part of — the Netherlands.

When measured in 1992, 3.7 percent of the population was in the lowest 10 percent of the income bracket. About 9.5 percent were in the lowest 20 percent, 14.6 percent were in the second 20 percent, 18.4 percent were in the third 20 percent and 23 percent were in the fourth 20 percent of income.

The highest 20 percent made up 34.5 percent and the highest 10 percent made up 20.2 percent of income. These statistics indicate the low poverty rate in Belgium and the little income inequality.

Although there is little income inequality in Belgium, 16.7 percent of people under the age of 18 lived in families that fell below the poverty line. Since 2012, the risk of being under the poverty line for people under the age of 18 has decreased considerably. Thanks to numerous social welfare programs, the risk of a person under 18 being under the poverty line in Belgium has fallen from 27 to 15 percent.

The social welfare system is a primary reason for why the poverty rate in Belgium remains low. The country has programs for family allowance, retirement, medical benefits, unemployment insurance and even a program that provides a salary in the event of an illness.

Belgium is a country that has managed to tackle the issues of income inequality and poverty while remaining a small nation. The social welfare system in Belgium in conjunction with its cooperation with the EU and NATO are one of the primary reasons for the success of the country. Thus, countries interested in lowering their poverty rates should follow Belgium’s example.

– Nicholas Beauchamp
Photo: Flickr