ELUSIVE SOLUTIONS TO POVERTY AND INEQUALITY: FROM “TRICKLE DOWN” TO “SOLIDARITY ECONOMY” Dr. Tidings P. Ndhlovu Manchester Metropolitan University, UK Visiting Research Fellow, Graduate School of Business Leadership, University of South Africa

INTRODUCTION THEORETICAL PERSPECTIVES EQUITY, (IN) EQUALITY AND POVERTY STRUCTURE OF PRESENTATION: FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH SEN’S ENTITLEMENTS AND CAPABILITY APPROACH, AND PARTICIPATORY APPROACHES MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY” CONCLUSIONS

FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH “ TRICKLE DOWN” APPROACH: TOP-DOWN ● POVERTY AND INEQUALITY: A NATURAL PHENOMENON ● ECONOMIC GROWTH: INCOME “TRICKLING DOWN” ● “GETTING PRICES RIGHT” (LAL, 1983) ● FREE MARKET: RATIONAL INDIVIDUAL BASIC NEEDS (BN) APPROACH (ILO, 1976): BOTTOM-UP ● CHALLENGE TO “TRICKLE DOWN” THEORY: ERADICATION OF ABSOLUTE POVERTY POVERTY: DEPRIVATION OF CONSUMPTION BUNDLES ● BN STRATEGY PROVISION OF BASIC NEEDS: MINIMUM (FOOD, SHELTER, CLOTHING) AND ESSENTIAL (WATER & SANITATION, HEALTH, EDUCATION) PROVISION OF PRODUCTIVE EMPLOYMENT ● REQUIREMENTS ADEQUATE FINANCE NECESSARY SERVICE NETWORKS

FROM “TRICKLE DOWN” THEORY TO BASIC NEEDS APPROACH ● INTERIM CONCLUSIONS NOT ANTI-GROWTH LINK WITH INVESTMENT IN HUMAN CAPITAL ● EVIDENCE CHINA: SRI LANKA WORLD BANK INVOLVEMENT: NATIONAL SOVEREIGHTY LIMITED RESOURCES SUBSIDISATION: UNINTENDED CONSEQUENCES ● PRIMARY/UNIVERSIRTY ACCESS: SELECTIVE POLICIES ● EXTENSION OF SYSTEM: CONTRADICTORY TO TARGETING DEPENDENCY DEFINITION OF BASIC NEEDS & DEVELOPMENT OF SOCIAL INDICATORS: ● SELECTION OF VARIABLES ● WEIGHTING OF VARIABLES ● METHOD FOR CONSTRUCTING COMPOSITE INDEX ● USEFULNESS OF INDEX

SEN’S ENTITLEMENTS AND CAPABILITY APPROACHES: PARTICIPATORY APPROACHES POVERTY AND INEQUALITY: ● DEPRIVATION OF BASIC CAPABILITIES ENTITLEMENTS ● CONSUMPTION BUNDLES: DEPEND ON EMPLOYMENT, WAGES, PRICES OF COMMODITIES ● POLITICAL/SOCIAL PRESSURES CAPABILITY APPROACH: ● ACCESS TO ENTITLEMENTS OF EDUCATION, HEALTH etc. ● “FUNCTIONINGS” - ACTUAL ACHIEVEMENTS ● FREEDOM - CAPABILITY – CHOICES/OPPORTUNITY; MATERIAL AND SPIRITUAL NEEDS; PARTCIPATION IN POLITICAL/DEMOCRATIC PROCESSES; INVOLVEMENT IN DECISION-MAKING PROCESS EXAMPLE OF PARTICIPATORY APPROACH (YUNUS, 1999) ● GRAMEEN BANK (VILLAGE BANK) IN BANGLADESH ● “MICRO-LOANS“ TO POOR WOMEN SEN: CONCLUSION ● POVERTY: MULTI-DIMENSIONAL ; DEPRIVATION - DIGNITY etc.

MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY” MARXIAN: OWNERSHIP OF MEANS OF PRODUCTION: ● creation of surplus value ● accumulation process: unequal distribution of wealth & income ● division of labour: class, race, gender/social relations “SOLIDARITY ECONOMY”: ● “popular economy” vis a vis “solidarity economy” ● “solidarity economy” – different perspectives, ranging from enlightened markets to collective values and fundamental change of capitalist societies

Figure 1 Source: Kawano (2013: 5).

NEO-CLASSICAL APPROACH: POVERTY: NATURAL PHENOMENON SOLUTION: “GETTING PRICES RIGHT”/TOP-DOWN CRITICISMS: ONE-DIMENSIONAL; “TRICKLE DOWN” BASIC NEEDS APPROACH: POVERTY: CONSUMPTION DEPRIVATION SOLUTION: PROVISION OF CONSUMPTION AND PRODUCTIVE EMPLOYMENT/BOTTOM-UP CRITCISMS: THEORETICAL AND EMPIRICAL ENTITLEMENTS/CAPABILITY APPROACH; PARTICIPATORY APPROACHES: POVERTY: BASIC CAPABILITY DEPRIVATION SOLUTION: “FUNCTIONINGS” AND FREEDOM CRITICISMS: CONTRADICTORY ANALYSIS; EMPIRICAL MARXIAN APPROACHES, AND THE CONCEPT OF “SOLIDARITY ECONOMY” POVERTY: POWER DEPRIVATION SOLUTION: “GETTING SOCIAL RELATIONS RIGHT” CRITICISMS: SOME ANALYSES CAN BE DETERMINISTIC, WHILE SOME “SOLIDARITY ECONOMY” ANALYSES MAY BE REFORMIST CONCLUSIONS