Denmark has one of the lowest poverty rates in the world, and it is important to look at what allows the nation to have such a low rate. With aggressive public health programs and a well-rounded social welfare program that
brings aid for unemployment, disability and old age, the people of Denmark can often receive proper help and assistance in times of need.
Social Welfare Aid
Widespread access to welfare in the country stems from a systemically upheld belief that welfare is a right of the people and not a privilege as it is all paid for through taxes. The benefits received by those who are unable to properly support themselves or their children work to lower poverty in Denmark. Furthermore, while the Danish have access to assistance programs, one poll suggests that nearly 60% of respondents believe that the economic gap between the upper and lower classes needs to be reduced.
Social responsibility is a large key ideal held by many people in Denmark. Social responsibility carries into the ideas of the social welfare programs and correlates to funds allocated toward helping members of the community. Because of governmental and social efforts, the level of poverty in Denmark is able to stay relatively low. For instance, funds and programs go to help parents raising new children, allowing a year of paid paternity or maternity leave.
The Poverty Rate
As of 2018, Denmark had a poverty rate of around 0.30%, which was a 0.1% increase from the previous year. Those living with fewer than $5.50 U.S. dollars per day are counted within the poverty figures. This is one of the lowest poverty rates in the world, around 10% less than the United State’s poverty rate in 2020. With a high poverty rate in the late 1980s of around 1.2%, the decline has occurred steadily over the years. While the poverty rate tends to fluctuate from year to year, it remains relatively low. Currently, Denmark is often compared to nations like the Netherlands, Malta, the Czech Republic and Norway. However, changes in social spending correlate to the fact that poverty seems to be been rising despite the high levels of support offered by the system.
Despite Denmark’s reputation for strong welfare programs, child poverty rose in the country from 2016 to 2017. In the span of that year, the number of children recognized as living in poverty rose from around 40,000 to more than 60,000. Despite the level of social welfare benefits, employment rates have remained largely unchanged among certain groups. Among those affected by reduced social spending are refugees and minority groups in the country. As of 2017, the number of children under the poverty line accounts for more than 5% of the child population. Programs like the Integration Benefit are targeted to those living in extreme poverty in Denmark.
With many different social programs, poverty in Denmark has been able to stay relatively low in recent years, notably due to social programs and community mentalities. Despite the rising poverty rates among those in danger of falling below the poverty line, the Danish government has been implementing programs to try and reduce these issues like the Integration Benefit. Lastly, the programs afforded to parents allow for a stable environment for parents to raise their children. The solutions to these issues through more aid and higher access to aid stand to lower the poverty rate further.
– Jake Herbetko