A strategy for social reform

The recent thinking in the field of global social development initiatives focuses on the need to combine social policy with economic policy when attempting to reduce or eliminate poverty. Social development organizations around the globe are beginning to advocate for the inclusion of social policy when collaborating with government to strategize for poverty reduction and elimination.

In our own country poverty reduction strategies are the "in thing" as governments and poverty groups collaborate to design ways to eliminate poverty. A report released by the Canadian Association of Social Workers in December 2009 noted six provincial governments as developing poverty reduction strategies after extensive collaboration with their local community and social development organizations. There is also the commitment of the Federal government by way of a motion in the House of Commons on November 24, 2009 to, " …develop an immediate plan to eliminate poverty in Canada for all". All these attempts are developed through a complicated process that leads to the perception of progress being made to take action on poverty but as yet we have little data to show positive outcomes.

Poverty reduction strategies have incorporated lessons learned that economic and social strategies need to be mutually inclusive. Lessons learned, as reported in the Economist (May 15, 2010), show it is crucial to take the economic steps necessary to get the government's economic house in order and focus on the social policy at the same time. The development response in the past was to get the markets right first and then deal with any remaining pockets of the poverty. This notion was spurred by the example of Asia's rapid growth over the last two decades due to cheap land, cheap labour and technological change driven by globalization and international trade. Although these developing countries have shown phenomenal economic growth, poverty and its consequences remain. Income inequities continue to exist and they create social exclusion that tends to entrench discrimination in other areas such as education and health care.

However, there remains the battle between an ideology that promotes private enterprise and corporate profits and does not take into consideration the needs of vulnerable citizens who may not have had the advantages that others have had in life. The reluctance to share the wealth is based on the view that all persons have the same opportunities available to them and therefore with hard work can succeed. What we know is that much poverty is generational and once born into poverty it becomes difficult more often than not to rise out of the systemic poverty cycle. Also, catastrophic circumstances or disability may lead to personal poverty.

The poverty reduction strategies developed so far (as indicated above) have promoted the inclusiveness of economic and social policy and in our democracy the economic engine is a source of funding of social programs. Social programs must rely on the tax and employment revenues from a market economy. Yet to ignore social policy when developing economic strategies has been shown to perpetuate poverty and to create dissention and even violence is certain countries that ignored a corresponding strategy to improve the conditions that create poverty.

To indicate where social expenditures are made in Nova Scotia, the 2008-2009 provincial budget figures for government departments indicated that expenditures for departments amounted to 88% of total expenditures or $7.3 billion. The largest three departmental expenditures were: health about 40%; education was about 18%; community services about 11% and all other departments amounted to 21%.

Therefore, taxes are the life-blood of government social programs and according to research by the Canadian Centre for Policy Alternatives (CCPA), over the past 15 years Canada's tax system has undergone major tax cuts. Our tax system used to be more progressive but now the richest one percent of Canadians pays less, as a portion of their income, than the poorest 10%. Tax cuts have compromised public services and reduced the effectiveness of our social safety net. Research by the CCPA recommends corrective measures: (a) make corporate Canada part of the solution instead seeing it as part of the problem by reversing tax cuts to corporations; (b) bring fairness back to personal income tax system with a new higher tax rate for persons earning over $250,000 per year; and (c) reverse the GST cut and restore it to 7% with expanded tax credit to protect low-income earners. This latter recommendation alone would allow programs for national pharmacare; home care program for seniors; and fund a national child-care program for our children. Of these three recommendations the fairest way to raise revenue to pay for social programs is to tax those who are capable of paying by taxing income.

In Canada and Nova Scotia social workers are bound by their Code of Ethics to the elimination of poverty, the equitable distribution of society's resources and the universal entitlement and access to the services and opportunities to meet basic human needs in the areas of housing, health care, child care, education and old age security. As professionals we need to continually remind the public that society's resources are not meant to squandered by a few but rather we are all responsible to ensure that everyone has the opportunity to have their basic needs met.

In our version of democracy social policy is directly related to economic policy. We have made important strides in developing social policy that addresses the needs of people living in poverty and the disadvantaged. We must continue to create incentives for private enterprise to flourish and then tax income both personal and corporate profits to pay for social programs for those without means.