Rewritten Title: A Deeper Look at the Poverty Line: Methodology and Economic Realities
Article:
A recent government announcement on the poverty line has sparked a significant debate among economic observers and labor activists, centering not just on a number, but on the very methodology used to define economic hardship.
The Announced Figure and the Ensuing Debate
The government spokesperson’s declaration that the poverty line for a single individual stands at 6.128 million Tomans for the Iranian year 1403 has been met with both surprise and criticism. The core of the dispute lies in the basis of this calculation. Critics are questioning whether this figure accurately reflects the real cost of living for an average Iranian household, factoring in essential expenses such as housing, healthcare, education, and transportation.
Labor activists have warned that the announced number risks misrepresenting the true state of living standards. They argue that it could lead to a statistical underestimation of poverty, effectively overlooking large segments of the population, particularly minimum-wage workers and social security retirees.
Expert Insight: The Danger of “Number Games”
Echoing these concerns, Hossein Kamali, Secretary-General of the Islamic Labor Party and former Minister of Labor, emphasized in an interview with “Eghtesad News” that poverty cannot be erased by altering measurement tools or lowering the poverty line statistic. “The solution lies in improving production, increasing productivity, and growing incomes, not in playing with numbers and statistics,” Kamali stated.
He elaborated that the final number is entirely dependent on how the “cost of living basket” is defined. A basket that includes only the most basic food items would yield a very low poverty line, while one that incorporates housing, clothing, and healthcare costs would present a vastly different and more realistic picture.
The Real-World Impact: Retirees and Workers
Applying the government’s own figure reveals a stark reality. For a family of four, the poverty line would be approximately 24 million Tomans per month. This calculation indicates that nearly 60% of social security retirees, who currently receive a minimum pension of around 12 million Tomans, live below this poverty threshold.
The situation is similar for minimum-wage workers. Even with periodic salary adjustments, a significant portion of their income is consumed by essential costs. Kamali pointed to housing as a critical example, noting that for many workers, up to 70% of their wages can be spent on rent alone.
A Call for Structural Solutions
The central argument from critics is that statistical adjustments do not address the root causes of economic hardship. “We cannot solve the problem of poverty by superficially surveying the population and lowering the poverty line number,” Kamali asserted. He stressed that sustainable solutions require a fundamental focus on boosting production, enhancing productivity, and fostering a thriving economic environment for all citizens.
The debate underscores the need for transparent and comprehensive metrics that truly capture the cost of a dignified life, moving beyond numerical figures to address the underlying economic structures.