QCOSTARICA == Costa Rica went from having 21.8% of poor households to 18% in the last year, according to data revealed last month by the Instituto Nacional de Estadística y Censos (INEC) – National Institute of Statistics and Census, thus reaching the lowest levels of poverty in the last 15 years.
The 3.8 percentage point reduction in poverty translates into 63,428 families that have left poverty behind, which leaves 327,081 households still in that condition.
The figure is not only the lowest poverty rate the country has seen since 2009, when it reached 18.5%, but it also breaks the barrier that Costa Rica has had around 20% poverty since the mid-1990s.
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According to INEC, extreme poverty also fell from 6.3% to 4.8% and now there are 86,748 households that have less than ¢50,000 colones (US$100) a month available to meet their basic needs.
The survey also records that the drop in the poverty rate was significant both in urban areas, where it fell from 21.1% to 16.4%; and in rural areas, where it fell from 26.4% to 21.1%.
The Costa Rican government celebrated the data with a brief statement by the Minister of Human Development and Social Inclusion, Yorleny León, for whom this result is “irrefutable proof” that the current government of President Rodrigo Chaves has made the right decisions in its policy to combat poverty.
“The route that Don Rodrigo laid out for us to prioritize those who need it most is the correct one for this country to overcome the scourge of poverty and inequality,” said the minister.
However, Fernando Rodríguez, an economist at the Universidad Nacional National University and former vice minister of Finance, believes that there is a lack of clarity regarding the figures presented.
He said that although Costa Rica has had a good economic performance during the last two years, this does not explain the sudden and dramatic drop in the poverty rate.
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This growth, Rodriguez assured, corresponds, in large part, to the “special regimes” such as free trade zones, where companies are not necessarily employers of the poorest groups.
To have more clarity on the survey data, it would be necessary to know what is considered in the “other activities” category, he added. This category is recorded in the survey but it does not specify what type of economic activity it refers to.
The economist added, that while these figures are measured at a general level, they do not seem to be reflected in everyday life.
“It may be that the country’s economy has improved to a certain extent, but this is not reflected in people’s economy. Because the costs of everything increase and the economic income of families is not reflected,” he said.
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