Litia Cava 
[File Photo]
Economist Dr Neelesh Gounder has highlighted the pressing need to go beyond traditional approaches when tackling poverty in Fiji.
According to Dr Gounder, relying solely on the tax and welfare systems is insufficient for reducing poverty as it fails to address its structural causes.
The University of the South Pacific economics lecturer says, contrary to popular belief, the welfare system is not designed to alleviate poverty; rather, it serves as a support mechanism for those already living in impoverished conditions.
“Where do people live, as we saw from the data, poverty is much higher in the rural areas. Rural urban differences, why do we have rural-urban differences in income, are individuals able to fulfil their potential? If not, why not? What are the choices that individuals in households make and what are the incentives available to them and why do certain households make certain choices?.”
To truly combat poverty, Dr. Gounder states that attention must be given to the nature of jobs available at the lower end of the labour market.
He emphasizes the significance of evaluating the wages earned by individuals in low-income jobs and their capacity to rise from poverty.
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