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WHAT ROLE FOR “COMMUNITY” ACTION IN COMBATING POVERTYAND SOCIAL EXCLUSION?

Presentation to the conference:

Big society: snapshots from the frontline Friday 28th October, 2011, Manchester

Katherine Duffy

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Structure of presentation

1. Lessons from 90s about strengths and limitations of combating poverty and social exclusion (PSE) at the local level

2. Current UK policy landscape and PSE

3. Social impact of the financial crisis4. Alternative...?

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20 UK Parliamentary constituencies with the highest child poverty (CP) and highest unemployment (U)*

Manchester CP%Rank U%* Rank

Central 52 3 12.0 20 Blackley 43 15 11.2 31 Gorton 43 16 10.2 52

Sources: www.endchildpoverty.org.uk poverty in your area March 2011; Commons Library research report: unemployment by constituency Sept 2011

*JSA figs, September 2011

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Blackburn: the Roman Road Estate in the early 1990s

(Very high unemployment and reliance on welfare benefits, low skills, labour market isolation; younger and different demographics; high housing turnover and voids, rent debt, closed down shops, services, school....)

Some social survey results:- What’s the best thing about Roman Road?

Friends The road out of it

What’s the worst thing about Roman Road? The people The road into it

Source Duffy 1992 in Campbell and Duffy

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Challenges in combating local area based poverty and social exclusion (PSE)

Poor spaces – desertification Absence of “organic” or “mechanical”

communities in the classical sense Therefore: limitations for combating PSE of

local social capital promotion and local human capital investment

Role of state: universality, equity (social rights), democratic accountability; but also lack of local flex; bureaucracy;

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EU “Poverty 3” (1990-94) positive local action: revalue & redistributePositive role for VCS/E: partnership,

participation and multidimensional approach:- VCSE community reach/flex

Increasing circulating income from state (e.g. take up of free school meals, welfare rights/ advice)

Revalorisation of local resources & local demand and supply (human capital; third labour market, self employment, low income trading; community assets, green jobs and spaces ...)

Partnership/ community bargaining and “policy bending”“soft” resources (urban, ESF etc.) & mainstream

spendingProcess does matter: participation/democratic

governance Private sector? Regional investment?; Aggregate

demand? Universality and equity?

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UK policy landscape & PSE: from solidarity to exchange (source Duffy and Kiernan July 2011)

“Open public services” (services for the public) Ideal of “people power” Driven by fast pace cuts and “any qualified provider”

competition Autonomous service units in fragmented service landscape

(but integrated/holistic approach better for disadvantaged) Preference for income generation (implies user charges) Commissioning risks – individual, neighbourhood... Government accountability: for cost effectiveness (not

universality, equity); quality for whom? provider accountability?

Investment, outcomes, PBR; care, trust, giving?

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Big Society and Localism Poverty is not about money; inequality is incentive to changePoverty redefined as 120,000 troubled “workless” families; Child

poverty commitment redefined as early years intervention Front-loaded LA cuts 27% over 4 years; service closure, chaos Housing benefit caps and lack of housing; closure of homeless

services Competition – from profit seekers to school gate mums and

dads? Is volunteering free? service consistency, continuity, skills,

management costs Community right to buy and community right to challenge –

asset transfer to whom? Special interests; asset-grab? Poor areas – which communities, what assets?

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The Work Programme – the government’s national anti-poverty programme Aim is not to cut poverty but to cut welfare Low pay and insecure work increasing – poverty in old age too Harsh conditionality and poor evidence on employment; effects on human

rights and mental health Mandatory “volunteering”? Poor areas isolated from jobs Creaming & gaming: what happens to the most disadvantaged and those

who don’t get jobs?

Prime contractors: accountability limited by confidentiality Targets very difficult/ impossible (London Observatory) Sub-contractors not guaranteed price or work flow PBR difficult for small VCS What is happening to needs-based approach of VCS? Contractors as “poverty pimps” and risk to VCSE reputation, reach,

survival

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Making work pay: Universal Credit

Universal Credit real time payment √ – but with BACS ? ICT already got problems

Family tensions over who is payee Privacy and data sharing If payment system goes wrong – no money in house at

all

Still several work/ budget “spikes” and 80% withdrawal rate for some clients

“Mini” jobs problem for parents & disabled people UC is not about level of benefits/ credits: many cut –

but there are no rich children in poor families

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Human Dignity and Social Exclusion (central and eastern Europe) 1994-7

Impact of turbulence and system change to neoliberalism in many “transition” countries – increased risks of inequality, poverty and social exclusion

Adequacy: local patchwork; caps; gaps, standards...

Affordability: user charges, unemployment Accessibility: rural location; discrimination,

exclusion of “undeserving” poor Accountability: de-statisation, privatisation

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EAPN messages on the causes and path of the financial crisis (Brussels 23 September 2011)

Cause: long-term shift in income from wages to profits

It’s not a “Greek” crisis; it’s a global crisis of distribution

Before crisis - deepening poverty from commodity price inflation (food, fuel)

“Austerity” is a cause of crisis and a pro-crisis response

The crisis has provided cover for “shrink the state” strategy

Crisis - working poor initially less protected than those on benefits

The poor will suffer longer from “austerity” policy

Political capital reduced; solidarity weak; hunt for the “guilties” risks dangerous populism

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What has happened to poverty trends in Europe in the last 10 years?

1. The “boom” years up to 2007: relative poverty did not fall in most countries; it rose in some (rising inequality)

2. The financial crisis: poverty on a fixed standard rose in the recession 2007-9, before the implementation of “austerity” programmes

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EAPN assessment of the social impact of the crisis in Europe

Serious social strain (increasing mental ill-health, domestic violence, blaming the victims, rise in crime)

Social protection and social services targeted for cuts Big cuts to NGOs and community groups: smaller NGOs

and advocacy worst affected “Austerity” strategy spreading by 2010 (despite some

states out of recession) Social costs not counted, not costed

Countries with best social protection systems recovered best from recession (EU Social Protection Committee evidence)

Breakdown of social contract/ loss of faith in government in worst affected “periphery” countries

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Anything positive come out of the crisis?

Many people are more aware of the economic system they live under and that there is a systemic crisis

Corruption is more visible

Beginning to realise austerity is a race to the bottom – every country loses; in a race to the top – every country gains

People are discussing alternatives and how to achieve them... revalue, redistribute ... and reboot

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From here ...The Trafford Centre, Manchester, England 177,000 m2 of retail space....to where?

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Getting out of the crisis: from pro-growth to pro-development

1. More, better, useful clean green and white jobs

2. Share our wealth widely

3. Distribute our national wealth fairly

4. Get our resources fairly5. Regenerate politics

from the base

1. Social investment pact; green development

2. O.7% GNP to Millennium Development Goals; ILO “social floors”

3. Minimum wage 60% of average wage; minimum social standards and incomes above relevant poverty threshold; maximum wage?

4. Global tax justice and better regulation of trans-national corporations

5. World social forum; ATTAC, Occupy; 6. Annabel Kiernan

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Choose lifeThank you, Katherine Duffy; k.b.duffy@talktalk.net