We All Benefit From Poverty Reduction

Angela Pezzotti for SooNews.ca
Thursday, November 19, 2009, 12:23PM

Reducing poverty benefits the whole community. So says a study released today by the Community Quality Institute (CQI), commissioned by the District of Sault Ste. Marie Social Services Administration Board that looked at the local impact of poverty on the community.

Calling it a landmark study “Beyond Compassion: Measuring the External Costs of Poverty in Sault Ste. Marie” focuses on the economic and social costs of poverty to the broader community and not just those directly affected by poverty.

Ken Coulter Executive Director of CQI presented the study Wednesday afternoon at Algoma University as part of Homeless Week.

The study points to the significant cost savings in the healthcare just by raising those in the lowest income range less than $34,000 family of four to next income range.

Using the methodology used by a 1997 study out of Winnipeg, Variations in Health Care Use by Socioeconomic Status by Noralou Roos and Cameron Mustard the study theorizes a saving to Sault Area Hospital of 2.33 million dollars a year.

The Mustard Roos study found that those living in the lowest family income range countered for a 27 percent share of hospital in-patient costs, double that of those in the highest income group. Just elevating the lowest to the low would eliminate the 5 percent difference between the two groups.

Coulter says that its time for those in poverty reduction advocacy to “take a page out of the environmentalists book.” Coulter points out that while environmentalists once thought of as just “tree hugging” fringe groups that didn’t receive a lot of attention until they learned to talk business. Coulter says the same approach to reducing poverty will have a greater impact.

Coulter points out that traditionally there has been a divide between those in economic development and the social services. But those in economic development have a stake in
reducing poverty says Coulter. “Economic developers make jobs” says Coulter “that’s the traditional approach,” however to attract economic investment to community a skilled and educated labour pool is required.

Providing educational opportunities to those living in poverty increasing the educated labour force pool benefits the whole community. “Its return on investment,” says Coulter.

The study discusses the successes made in Nova Scotia following a significant investment in poverty reduction. Between the years 1997 to 2006 Nova Scotia reduced the number of those living in poverty by 52,000. One of the most significant ways Nova Scotia accomplished this was by freezing tuition rates. Education is key to reducing poverty.

The study calls for an integrated approach to reducing poverty. Social services agencies, economic developers, educators and healthcare organizations coming together to tackle the issue collaboratively to develop creative strategies is what is required to reduce poverty.

The study applauds the initiatives brought forward by the provincial government including its Poverty Reduction Strategy, which aims to reduce the number of children living in poverty by 25 percent over five years, as well as increases to the Ontario
Child Benefit.

Coulter is optimistic about the future citing the growth of both Sault College and Algoma University and the collaboration of the current social service sector to work together to develop creative, home grown solutions.

Now the job is to bring educators, social services and economic development to the same table to begin the conversation Coulter hopes to do this in January 2010.

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