Judita Reichenberg UNICEF Area Representative WHY WE CAN NOT AFFORD CHILD POVERTY? "Children in the Risk of Poverty and Social Exclusion. Challenges & 0pportunities" Zagreb, 30. Nov 2010.

What is child poverty? WHY WE CAN NOT AFFORD CHILD POVERTY? Income deprivation Income deprivation + Constrained access to services (severe deprivation in two or more basic needs of food, water, sanitation facilities, health, shelter, education and information) State of child Well-Being –based on CRC Material and non-material dimensions of child well-being

The measuring and monitoring of child well-being includes both material and non- material aspects. WHY WE CAN NOT AFFORD CHILD POVERTY? CHILD WELL-BEING Income Material deprivation Housing Labor market attachment of the members of the child’s household MATERIAL dimension Education Health Exposure to risk and risk behavior Social participation and relationships, family environment Local environment NON-MATERIAL dimension “Child Poverty and child well-being in the European Union”, Report for EC, Tarki Social Research Institute, Applica, January 2010.

Poverty in the region Source: SILC, EU (2008), FBH Federal Office of Statistics, Statistical Office of the Republic of Serbia At risk of poverty rate: children compared to total populations

WHY WE CAN NOT AFFORD CHILD POVERTY? Gross National Income (2008) per capita (constant 2008 PPP US$) Child Poverty and Infant Mortality in the Region

WHY WE CAN NOT AFFORD CHILD POVERTY? Child Poverty and Education in the Region Gross National Income (2008) per capita (constant 2008 PPP US$)

Impact of child poverty Health – physical and mental health problems, risk of severe, long term and life-limiting illness Education – low educational attainment and skill levels Employment – low status and unsecure employment, worklessness and low levels of employability Behavior- inhibiting and anti-social behavior, crime, substance misuse Relationships- family difficulties, child abuse, friendships and social isolation, future family formation Subjective well-being- shame, stigma, lack of autonomy and low self esteem

WHY WE CAN NOT AFFORD CHILD POVERTY? The economic costs of child poverty – case of UK Children in Families with low incomes 1. Worse outcomes in education, health, etc. 2. Persistence of worse outcomes later in life, despite interventions A. Social spending aiming to ameliorate these effects B. Future impact on social spending, and economic costs of poor labor market outcomes Current cash transfers not included! (Hirsch, D. 2008) £12 billion £13 billion £8 billion£5 billion Lost earnings to individualsBenefit bill, lost tax and NI £25 BILLION TOTAL

WHY WE CAN NOT AFFORD CHILD POVERTY? The economic costs of child poverty – current costs 1. Worse outcomes in education, health, etc. A. Social spending aiming to ameliorate these effects £12 billion ServiceAmount% Share of all spending on that service Personal Social Services2,849 £m71% Acute + Primary Healthcare2,070 £m 7% School Education2,888 £m10% New Social Housing1,654 £m98% Police and Criminal Justice2,927 £m12% Etc.

WHY WE CAN NOT AFFORD CHILD POVERTY? The economic costs of child poverty –future costs Lost EarningsAmount Private Individuals8 £ billion Income Tax and National Insurance3 £ billion Benefit Costs Benefit Costs2 £ billion 2. Persistence of worse outcomes later in life, despite interventions B. Future impact on social spending, and economic costs of poor labor market outcomes £13 billion Budget expenses!

WHY WE CAN NOT AFFORD CHILD POVERTY? Ending child poverty seems straightforward… 1.Agreement on what societies should do to prevent and eradicate child poverty and social exclusion: a. Start early - ECD b. Ensure quality inclusive education c. Ensure access to continuum of quality health services d. Provide social security- cash transfers and services for children and their families

…. however, many challenges remain How to avoid additional constrains created by the short term economic crisis and longer term economic restructuring? Resources are not limitless. How to make choices? Every policy has a social impact. But are we aware of it? What about potential synergy in inter-sectoral co- ordination? And what about the voice of the “voiceless”?

THANK YOU!