The rise in inflation and the economic crisis who lives with Argentina in recent years he has been playing 40.1% of Argentines live in poverty, according to data published on Wednesday the 27th by the state statistics agency Indec. Of these, around 9.3% are hungry. The figures represent an increase from 39.2% in the second half of 2022 and 36.5% in the first half of the same year, consolidating an upward trend. However, this data does not yet reflect the impact sharp devaluation of the peso encouraged by the government in August immediately after the result of the primary elections.
In total, Around 11.8 million people live below the poverty line and more than 2 million are unable to access the basic foodstuffs they need to survive, in a population of more than 29 million. The average family income was 124,071 Argentine pesos (R$1,789 at the official exchange rate, but around R$800 at the more common parallel rate), while the value of the basic food basket averaged 199,593 pesos (R$2,878 at the official rate, more than R$1,300). parallel).
Despite the fall in unemployment, which is below 7% this year, poverty is increasing, suggesting that the cause lies in the erosion of the purchasing power of Argentines, whose salaries cannot keep up with price increases. The reflection can be seen in the traditional Plaza de Mayoa tourist and protest site where more and more tents appear with people seeking shelter and food.
Couple sleeping on the streets of Buenos Aires on September 27, 2023, the day Indec released the new poverty data Photo: Luis Robayo/AFP
Lionel Pais, 37, told the Associated Press agency that he had to move to an emergency shelter in Buenos Aires shortly after, three weeks ago The government devalued the Argentine peso by almost 20%, causing further uncontrolled price increases. “These sudden increases in the country’s economic situation do not allow me to cover my basic expenses,” he explains.
Sebastián Boned, 26, called the homeless helpline when his salary as a hotel receptionist no longer allowed him to cover the rent for a guesthouse. “It’s a peaceful place,” he said of the shelter. But their time is running out as the accommodations only guarantee accommodation for three months. During this time, residents will receive advice on finding work and can apply for a subsidy for their rent.
“Most of them say their salary does not cover their needs,” said Mercedes Vucassovich, a social worker who runs the Bepo Ghezzi Social Inclusion Center in Buenos Aires’ Parque Patricios neighborhood, where demand for housing is increasing.
Lionel Pais hangs his washed clothes on a line at the Bepo Ghezzi Social Inclusion Center shelter in Buenos Aires on September 21. Photo: Natacha Pisarenko/AP
This poverty was felt most acutely among children aged 0 to 14, whose rate of 56.2% was higher than the 50.9% of the previous semester. However, organizations working on child poverty warn that the official index is still below reality because it does not assess socalled “multidimensional poverty,” which takes into account not only income but also lack of access to health and education and hygiene. In this logicthe number of children in poverty exceeds 60%.
In Morón, a suburb west of the capital, María de los Ángeles García and Adrián Viñas Coronel, along with their five children aged between three months and 13 years, rent an improvised house in a lowincome neighborhood after six months on the streets. With an address they can enroll their children in a public school.
Their only fixed income is around 90,000 pesos (R$1,297) per month in social assistance, 25% of which they have to pay for rent. “We have to work on the streets all day because we don’t have enough food or diapers for the children,” said García, 31.
María de los Ángeles García and her husband Adrián Vinas hold their children Byron and Jonas in their arms on September 25 in Buenos Aires. Photo: Natacha Pisarenko/AP
To mitigate the effects of child poverty, Argentina has income transfer programs such as “Asignación Universal por Hijo”, a type of family allowance, and the food card. But the amounts received were devoured Interannual inflation of 124%.
“These transfers are important because otherwise we would have a hunger rate of almost 30%, but they are clearly not enough to ensure adequate nutrition for children,” emphasized Ianina Tuñon, childhood specialist at the Argentine Observatory of Social Debt at the Argentine Catholic University , in an interview with Estadao in April on the topic of child poverty.
García and his family are receiving help from the NGO Corazon Azul, which provides snacks, medical assistance and inkind donations to vulnerable people in the region. Among them is Alejandro Heredia, 53, who sleeps on trains and collects cans to sell for recycling. “If you think you’re in a bad situation, it’s always going to make it worse than it already was,” he said. “We have been like this for 40 years and there have been several governments.”
Alejandro Heredia, 53, poses for a photo in Buenos Aires Photo: Natacha Pisarenko/AP
However, these numbers do not yet take into account what happened after the primaries, which the Libertarian candidate won. Javier Milei. Immediately after the PASO (Primary, Open, Simultaneous and Mandatory), the Minister of Economy and presidential candidate for the government ticket, Sergio Massaled to a 20% devaluation of the peso, causing price instability and product shortages. The measure was an old request from the IMF to make more money available to the indebted country.
Additionally, the month of August recorded doubledigit inflation (12.4%) for the first time in 30 years. This whole situation Added to this is the lack of imported inputs, which threatens the country’s production chaintake Analysts predicted an even poorer future.
For much of the 20th century, Argentina was characterized by a dynamic of social mobility that led to the emergence of a large middle class and made the country stand out in the region. But the good times are over and poverty has remained well above 25% for the past two decades.
A consumer walks past a sign in Buenos Aires that reads “Buy today, cheaper than tomorrow” Photo: Agustin Marcarian/Portal
After the 2001 crisis, in which the poverty rate reached 57%, the number fell and fluctuated between 40% and 20%. In 2019, during the government of Mauricio MacriAs the recession began, the numbers rose again, rising 10 percentage points to 34.2% this year. During the pandemic, in the first years of the government of Alberto FernandezThis figure was over 42%, but declined in subsequent years with the postCovid19 recovery.
In recent weeks, Sergio Massa unveiled a series of measures to survive until the general elections on October 22nd. He recently said that those who are not officially employed and not yet receiving any form of social assistance will receive 94,000 pesos (R$1,355), divided into two monthly payments, in October and November.
The measures come at a time when Massa is fighting for a possible second place in the next November round. According to analysts, Milei is likely to be the right name for the second round, while Massa competes with the Macrista candidate Patricia Bullrich the last vacancy. In a Milei vs. Massa scenario, polls suggest a quiet libertarian victory. WITH AP