Destitution has surged in Argentina, escalating at a troubling pace compared to general poverty levels over the past year. A recent study reveals that in the first quarter of 2024, an alarming more than six million people were unable to meet even their basic nutritional needs.
The comprehensive report, published by the Centro para la Recuperación Argentina at the University of Buenos Aires Economics Faculty, meticulously examines quarterly and semi-annual data sourced from the Encuesta Permanente de Hogares (EPH), conducted by Argentina’s national statistics bureau, INDEC.
Beyond that staggering statistic, analysts and policymakers are increasingly concerned about the medium- and long-term repercussions of this dire reality.
“The first thing to point out is that if these levels of destitution are maintained for any more length of time, structural poverty will increase,” warned a representative from the Centro para la Recuperación Argentina in an interview with Perfil.
“If the economy grows and destitution goes down, there would not be any direct impact on structural poverty, which in Argentina has a core figure of 30 percent,” they elaborated. “Instead, the impact would be reflected in the fluctuating poverty rates based on current economic conditions.”
Nevertheless, the alarming growth of destitution rates could have severe long-term implications, particularly affecting children and young adults. These demographics face the risk of being trapped in poverty for the medium term, significantly curtailing their opportunities for advancement.
‘Structural poverty’
Between the first quarters of last year and this year alone, 3,410,300 people have been added to the population segment unable to afford daily meals, raising the total to a staggering 6,012,772 individuals. If such a state of affairs becomes entrenched, the formation of a new baseline of structural poverty is highly likely.
The concept of structural poverty refers to individuals existing in conditions where economic fluctuations have minimal effect on them; improvements in their income will not elevate them from their current circumstances, concluded the UBA organization.
The prominent Observatorio de la Deuda Social (ODSA) at the Catholic University of Argentina (UCA) characterizes individuals facing structural poverty as those who experience an intense level of deprivation of social rights alongside low income.
ODSA researcher Juan Ignacio Bonfiglio articulated to Perfil: “If we understand structural poverty as a situation in which individuals encounter multi-dimensional deprivation with significant barriers to escaping that state of need, we could envision a negative feedback loop. This loop associates deprivation with exceedingly low income, rendering them unable to secure adequate food, thus impacting their ability to invest in education and maintain minimal standards of health and housing.”
He additionally noted, “Those are effects with negative feedback between themselves which make it more difficult to escape poverty.”
Nevertheless, Bonfiglio reassured that the significant spikes in poverty and destitution, such as what we are currently witnessing, are often part of cyclical economic trends. During times of crisis, destitution may soar to unprecedented heights, yet such conditions typically reverse within a relatively short period.
The crux of the issue, he contended, lies in determining “how much reverses and how much contributes to establishing a new baseline.”
Bonfiglio elucidated that “while we cannot definitively state this is occurring, we possess grounds to suspect that it may be happening, as conditions have been evolving over time to support this theory.”
“It is a hypothesis that requires validation, a bold assertion but one that carries some weight,” he concluded.
Below the line
INDEC’s most recent mid-year report on poverty and destitution indicated that a staggering 52.9 percent of the population resides below the poverty line, with 18.1 percent falling into the destitute category within this total. Comparatively, the latest data reveals a worrying 12.8 percentage point increase in poverty and an 8.8 point rise in destitution from the same period in 2023.
“Destitution speaks to a lack of access to basic food consumption, a line that signifies being able to eat just enough to survive each day and nothing more,” economist Hernán Letcher from the CEPA (Centro de Economía Política Argentina) think tank explained during an interview with Perfil.
If such high levels of poverty and destitution persist, he cautioned, “it becomes increasingly challenging to help those individuals escape their dire circumstances.”
“A growth in economic activity alone is not sufficient,” he continued. “If I secure a job tomorrow, I may temporarily rise above poverty. However, if I have been amongst the structurally poor for an extended period, I likely will not even be in a position to seek employment. That encapsulates the prevailing logic,” he summarized.
**Interview with Juan Ignacio Bonfiglio, Researcher at the Observatorio de la Deuda Social (ODSA), Catholic University of Argentina**
**Editor:** Thank you for joining us today, Juan. To start, can you give us a brief overview of the recent findings regarding destitution in Argentina and its implications?
**Bonfiglio:** Thank you for having me. The recent report indicates a dramatic rise in destitution, with over six million people unable to meet basic nutritional needs in the first quarter of 2024. This uptick corresponds to a worrying increase in structural poverty, which refers to individuals stuck in a state of deprivation despite economic fluctuations.
**Editor:** The data shows that around 3.4 million more people have fallen into destitution over the past year. What are the primary factors contributing to this increase?
**Bonfiglio:** Economic instability plays a critical role. Argentina has faced ongoing financial challenges, and when such crises hit, destitution typically rises sharply. The problem is compounded by barriers to escaping poverty, such as a lack of access to education, healthcare, and job opportunities, creating a negative feedback loop.
**Editor:** You mentioned this negative feedback loop; could you expand on how it works and its long-term effects?
**Bonfiglio:** Certainly. Individuals in structural poverty often experience a multi-dimensional deprivation; they struggle to secure food, which in turn affects their health and educational outcomes. When families are unable to invest in their children’s education, it limits future job prospects, perpetuating the cycle of poverty. This situation can have lasting consequences for generations.
**Editor:** Given the severity of the situation, what do you see as potential solutions to combat rising destitution?
**Bonfiglio:** Solutions must address both immediate needs and long-term structural changes. This includes strengthening social safety nets, improving access to quality education, and creating job opportunities that provide living wages. It’s fundamental to address the systemic issues that create barriers to escaping poverty.
**Editor:** Some experts argue that, in times of crisis, spikes in destitution might reverse eventually. Do you agree with this perspective?
**Bonfiglio:** Yes, I do. Historical trends show that crises often lead to temporary spikes in poverty and destitution, which can eventually diminish as economic conditions improve. However, it’s crucial that, during these times, we put measures in place to protect the most vulnerable populations so that we don’t create a new baseline of structural poverty.
**Editor:** Thank you, Juan, for your insights into this urgent issue. It’s essential to continue discussing these topics as we move forward.
**Bonfiglio:** Thank you for the opportunity. It’s vital that we keep raising awareness about these issues and advocate for meaningful policy changes.
