MercoPress. South Atlantic News Agency

An estimated 40% of Argentine live on less than 8 US dollars per day

30% of richest homes concentrate over 50% of Argentina’s national income

An estimated 16 million Argentines, (out of a population of 40 million) live on less than 800 pesos per month which is equivalent to 8 US dollars per day, according to the latest data from the official Homes Standing Poll.

The release from the last quarter of 2010 also shows that in the low income homes live more people and there’s less money to go around. This means that in the 30% of the poorest homes in Argentina lives 40% of the population and receives 14.2% of the national income. At the other end 30% of the richest homes only represent 21% of the population but concentrate over 50% of the national cake.

Therefore regarding basic food prices (which determine the levels of poverty and indigence), the 10% richest can spend twenty times more than the poorest 10% of the country.

Argentina according to INDEC, the controversial statistics and census office, only has 10% of the Argentine population ranked as poor. However private estimates based on basic food prices and other alternative calculi, overall poverty is closer to 25% and in some cases reaches 30%.

For example for INDEC an Argentine family (a couple and two children) is not considered poor if they have monthly earnings above 1.283 Pesos (approx 320 US dollars). Private consultants based on current inflation and food prices argue the floor is over 2.200 Pesos (500 USD).

Official data shows that in recent years the poorest Argentine families have seen their incomes increase based on higher family allowances per child, old age pensions and other forms of social assistance (non contribution pensions, mainly for housewives), but even with this support the poverty map “has not increased proportionately since food prices have a greater influence on low income families”.

Furthermore according to private consultants and organized labour estimates, Argentine inflation is running at an annual rate of 25% to 30% while most social security payments adjust every six or twelve months.

Precisely in coming weeks the Argentine government is expected to adjust the family allowance per child (currently al the equivalent of 110 USD) as well as increase the top benchmark to have access to the allowance (currently at 1.200 USD income per family). The same with the unemployment benefit which is equivalent to 100 USD per month.

The poverty statistics follow on eight years of sustained growth of the Argentine economy at what are described as ‘Chinese rates’.