How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries
Abstract
:1. Introduction
1.1. Addressing the Challenges of the Export Banana Industry
1.2. The Methodological Challenge
1.3. The Research Questions
2. Materials and Methods
2.1. Selection of Assessment Methods
- For the concept of assessment: assess/evaluate/measure/estimate/calculate/appraisal/determine/set/achieve and their derivatives.
- For the concept of living standard: living standard/living wage/decent income/decent salary/minimum wage/minimum income standard/poverty line/decent living standards/decent living conditions/standard of living/sustainable livelihood.
2.2. Document Analysis Methodology
- Condition 1: The method approaches the living standard of an individual or household directly or indirectly. Through construction, the selection of documents stemming from the bibliographic search always complies with this criterion.
- Condition 2: It is suited to situations where there is no price defined for certain basic services for populations, and it can work without assuming the existence of a monetarised market for the service. Accordingly, all the method families employing monetarisation only (income, wages, etc.) assume the existence of markets for everything and do not comply with this criterion.
- Condition 3: it takes into account representations from the people concerned (without projecting the prejudices of other societies onto the field), by asking the opinion of the main stakeholders as to the main object, representing the living standard undergoing assessment.
- Condition 4: It enables meaningful and complete comparisons between countries and sectors, including when the socio-economic contexts are very different. Comparing wages, income, or baskets of goods between countries makes some sense but gives only a little information on the comparative living standards of the two populations.
3. Results
3.1. Result: Method Families
3.1.1. Absolute Methods
- Monetary budget methods: These methods look at the income required to cover the expenditure relating to obtaining a predefined basket of goods and services. The precursor of these methods is Morris [18] in the United Kingdom. Estimated expenditure was still monetary, as in the Living Wage Calculator [19], applied in the USA, or by Anker [7] and Anker and Anker [20], who study the wages of agricultural workers. Haveman and Wolff add asset valuation to the monetary elements to calculate the poverty line [21]. In some methods, such as [22], monetary items are converted to time in order to calculate the Freely Disposable Time (FDT) of a household. The poverty line stands for FDT = 0. The representation of stakeholders is not directly surveyed and comparisons between countries are incomplete due to monetarisation.
- Budget methods based on food/energy: These approaches were completed by [18] and are reduced to estimating coverage of food or energy needs. The most well-known, the Food Energy Intake method (FEI), considers total expenditure (food and non-food) covering the recommended calorie intake. Here, the possible absence of monetarised trade for certain goods and services is no longer a limit. Hence, they have been applied mainly in Southern countries, e.g., by the Indonesian Central Bureau of Statistics (BPS) from 1987 to 2002 [23] but also in Kenya [24], in Mozambique [25], or in India [26]. Dietary habits are taken into account before calculating the cost of calories or energy required via national surveys or other databases, but the representation of stakeholders is not directly incorporated.
- Ratio methods: These approaches are guided by the comment by Engel [27], who showed that the proportion of food expenditure in income falls as households become richer. There are numerous applications of this, such as the food-share method [28], which calculates income from the proportion of food expenditure, or the calculation of income enabling a good food expenditure ratio (low income cut-offs [29]), as well as the application of the LES model (Linear Expenditure System) and enlarged LES model, which use sampling surveys for the same purpose, as in [30]. These methods deduce total income by evaluating income dedicated to food, thereby avoiding the need for the presence of monetarised trade. In this case, the representation of stakeholders is a secondary consideration. Comparison between countries is meaningful but only provides information on food.
- Physiological deprivation score methods: These approaches are used to establish a score that reflects the state of health. The Body Mass Index method [31] is based on universal biological indicators (height, weight, size, etc.) to establish whether individuals are in good health and by extension whether they have a good living standard. These methods can thus be applied even in the absence of monetarised trade. Biological indicators are objective and do not incorporate the representation of individuals. Since at no time either expenditure, costs, or income are used, comparisons between countries are meaningful in terms of physical health. However, living conditions which influence the state of health remain unknown.
- Absolute deprivation score methods: These are methods that assess multi-dimensional poverty using a deprivation score, calculated from a panel of non-monetary indicators. These indicators are the same whatever the context, as for the Multidimensional Poverty Index (MPI) [32] initiated by the work of Alkire and Foster [33]. The use of non-monetary indicators avoids the issue of the non-existence of monetarised trade. In general, secondary data are used, and no stakeholder surveys are required. These methods enable only incomplete comparisons between countries.
3.1.2. Relative Methods
- 6.
- Relative budget methods: These methods compare the income level to the cost of a basket of goods and services. Yet, this basket is identified according to the one owned by a certain proportion of households in the society or of what is regarded as a necessity by a certain proportion of households (Rowntree approach cited in [34,35]). So, unlike monetary budget methods, they do incorporate representations from the households. However, these methods are dependent on the presence of monetarised trade and do not therefore allow meaningful comparisons between countries and regions.
- 7.
- Relative budget methods based on food: These methods described in the works of Ravallion [36,37] and Ravallion and Bidani [38] are derived from relative budget methods and ratio methods. On the one hand, they estimate food expenditure according to local costs of a basket of food satisfying the minimum nutritive energy needs (and belonging to people whose consumption expenditure is below a predetermined amount), while adhering to local traditions. On the other hand, they estimate two non-food expenditure thresholds using an equation from Engel. These methods are applicable even in the absence of monetarised trade. They provide incomplete comparisons of living standards. Surveys to incorporate representation of households are not required.
- 8.
- Income or consumption proportion methods: Poverty is seen as having an income below a certain proportion of the average or median income (or consumption expenditure) of the population in question. This is the case with the Fraction of Median Income Approach from an OECD study (1976) cited in [39] or in [40,41]. These methods do not work in the absence of monetarised trade and do not take into account representation of stakeholders.
- 9.
- Deprivation score methods: Poverty is here understood as multi-dimensional, and living standard is assessed according to non-monetary indicators, which are counted to establish a score, as in the Townsend’s Deprivation score [42] or in the works of Alkire and Foster [33]. Moreover, there are the cases in livelihood approaches, such as applications of the Sustainable Livelihood Framework and the associated tools “Participatory Rural Appraisal” or “Participatory Poverty Assessment” [43,44,45] or “Sustainable Livelihood Security Index” [46]. Livelihood approaches are inspired by Sen [47,48] to suggest operationalisation of the capability approach. The use of non-monetary indicators enables application of these methods even in the absence of monetarised trade. The stakeholders are surveyed to determine the deprivation level. However, they are not systematically asked for prioritising and choosing the non-monetary indicators. Comparisons between countries are meaningful only between the same indicators, but they are promising.
- 10.
- Consensual methods: The stakeholders themselves define the goods making up the sufficient basket [49,50] or directly the minimum income that they regard as sufficient [51] or rate their current income level ([52]; The Leyden Poverty Line method in [53]; The Subjective Poverty Line method by [54]; Center for Social Policy Poverty Line by [55]). The method of Dubnoff [56], which is about asking prospects to assess the income level of a hypothetical family, belongs to this group. The main characteristic of this family is that representation of the stakeholders is put at the centre of the assessment. These methods are not intended to enable comparisons between countries, but it seems possible to improve them in order to achieve this objective (see Section 4).
3.2. Conclusion about the Analysis of the Methods under the Four Criteria
4. Proposing a New Method: The Consensual Services Deprivation Method (CSDA)
4.1. Focusing on “Social Services” Deprivation
4.2. Toward a New Definition of a Decent Living Standard
4.3. Assessment of the Access Level “Consensually Deemed to Be Normal”
4.4. In Practice: Step-by-Step Implementation of CSDA
- Selection of the important social services for workers
- Interviews with households
- To assess the access level consensually deemed normal “what do local people think is the current correct level for such or such a service?”. An example of a question applied to schooling access would be: “For access to schooling, what do your neighbours think in general is the correct level that children in the village should be able to achieve?”. By definition, this assessment is consensual if we have chosen the members of the groups correctly. This was the case in the African case study.
- What they think of the access level of their own household (much less, less, better than, or equal to the consensus level) for each service and how to improve it to reach the level consensually deemed normal.
- Identification of gaps
5. Discussion
- Limits during the implementation
- Limits in the outputs of the methodology
6. Conclusions
Author Contributions
Funding
Informed Consent Statement
Acknowledgments
Conflicts of Interest
Appendix A
- Historic works in the North using the monetary approach to poverty
- Historic works on the non-monetary approach to poverty
Appendix B
Database | Queries | Number of Results | Number of Documents Selected |
---|---|---|---|
Google Scholar | “living wage” | 76 | 19 |
“decent income” | 0 | 0 | |
“decent salary” | 0 | 0 | |
“minimum wage” | 301 | 3 | |
“poverty line” | 112 | 36 | |
“decent living standards” | 0 | 0 | |
“decent living conditions” | 1 | 0 | |
“standard of living” | 169 | 16 | |
“sustainable livelihood” | 142 | 16 | |
“minimum income standard” | 6 | 0 | |
EconLit | “living wage” | 118 | 2 |
“decent income” | 5 | 0 | |
“decent salary” | 0 | 0 | |
“minimum wage” | 1708 | 0 | |
“poverty line” | 1287 | 56 | |
“decent living standards” | 2 | 0 | |
“decent living conditions” | 4 | 1 | |
“standard of living” | 1051 | 26 | |
“sustainable livelihood” | 31 | 1 | |
“minimum income standard” | 8 | 0 | |
Scopus | “living wage” | 442 | 7 |
“decent income” | 24 | 1 | |
“decent salary” | 4 | 0 | |
“minimum wage” | 3535 | 4 | |
“poverty line” | 3866 | 134 | |
“decent living standards” | 42 | 0 | |
“decent living conditions” | 35 | 0 | |
“standard of living” | 5829 | 52 | |
“sustainable livelihood” | 1909 | 8 | |
“minimum income standard” | 46 | 9 |
Appendix C
Family | Number of References (Across All Sources) | Country of Application | Iconic Bibliographic References |
---|---|---|---|
Absolute Methods | |||
Monetary budget methods | 51 | USA United Kingdom Canada Australia Southern countries (India, Nepal, Cameroon, etc.) | (Morris, 2003) [18] (Anker, 2011) [20] (Anker and Anker, 2017) [7] |
Budget methods based on food/energy | 21 | Southern countries (Indonesia, Kenya, India, Mozambique Iran, Pakistan, Turkey Peru, Argentina, South Asia) | Indonesian Central Statistics Bureau 1987 to 2002 cited by (Nashihin, 2009) [23] (Greer and Thorbecke, 1986) [24] (Tarp et al., 2002) [25] (Paul, 1989) [26] |
Ratio methods | 36 | USA Canada Italy Norway Southern countries (Iran, Japan, Indonesia, Philippines, China, Azerbaijan, Peru, Malaysia) | (Orshansky, 1963) [28] (Podoluk, 1968) [29] (Widodo, 2006) [30] |
Physiological deprivation score | 15 | Colombia USA | (Gamboa and Forero, 2009) [31] (Steckel, 2008) [86] |
Absolute deprivation score | 13 | World, including Laos, India, etc. | (OPHI, 2018) [32] |
Relative methods | |||
Relative budget method | 7 | United Kingdom Zimbabwe | B.S. Rowntree approach, quoted by (Bradshaw, 1993) [34] (Living Wage Foundation, n. d.) [35] |
Relative budget methods based on food | 40 | USA Ukraine, Slovakia Southern countries (India, Colombia, South Africa, Pakistan, Haiti, Brazil, Madagascar, Uganda, Malaysia, China, Indonesia) | (Ravallion, 1992) [36] (Ravallion, 1998) [37] (Ravallion and Bidani, 1994) [38] |
Income or consumption proportion method | 32 | USA Europe Turkey Mexico Malaysia Russia Egypt China Latin America and Caribbean | OECD study (1976) quoted by (Callan and Nolan, 1991) [39] (O’Higgins and Jenkins, 1988) [40] (Ringen, 1987) [41] |
Deprivation score | 117 | Europe (Ukraine, Poland, Portugal, Romania), New Zealand, USA, China, Hong Kong, and many Southern countries (Djibouti, Sri Lanka, India, Nigeria, Bangladesh, Kenya, Malaysia, Indonesia, Iran, Namibia, Nepal, Egypt, Nicaragua, etc.) | (Townsend, 1979) [42] (Alkire and Foster, 2011) [33] (DFID, 1999) [43] (Scoones, 1998) [44] (Chambers and Conway, 1991) [45] (Saleth and Swaminathan, 1993) [46] |
Consensual methods | 62 | USA United Kingdom Europe China Canada Russia Southern countries (Iran, Jordan, South Africa) | (Middleton, 2000) [50] (Bradshaw et al., 2008) [49] (Goedhart, 1977) [51] (Dubnoff et al., 1981) [52] (Van Praag et al., 1982) [53] (Kapteyn et al., 1985) [54] (Deleeck, 1977) [55] (Dubnoff, 1985) [56] |
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Method Family | Objects Assessed as an Approach to Living Standard (Condition 1) | Works in the Absence of Monetarised Trade? (Condition 2) | Representations of Stakeholders? (Condition 3) | Meaningful Comparison of Living Standard? (Condition 4) |
---|---|---|---|---|
Absolute Methods | ||||
Monetary budget methods | Basket of goods and wages/income | No | No | No |
Budget methods based on food/energy | Cost of minimum calories/energy required | Yes | No | No |
Ratio methods | Deduction of total revenue by evaluation of income dedicated to food | Yes | No | Yes, for food |
Physiological deprivation score methods | Score reflecting state of health | Yes | No | Yes, but incomplete |
Absolute deprivation score methods | Score reflecting living standard | Yes | No | Yes, but incomplete |
Relative methods | ||||
Relative budget methods | Basket of goods and income | No | Yes | No |
Relative budget methods based on food | Social standard in calories, and estimated non-food expenditure, as per Engel | No | No | Yes, for food |
Income or consumption proportion methods | Fraction of income or expenditure of society | No | No | No |
Deprivation score methods | Score reflecting living standard | Yes | Yes, but incomplete | Yes, but incomplete |
Consensual methods | Goods or income indicated by the stakeholders | Yes/No | Yes | No |
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Falk, A.; Macombe, C.; Loeillet, D.; Deboin, J.-M. How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries. Sustainability 2022, 14, 10794. https://doi.org/10.3390/su141710794
Falk A, Macombe C, Loeillet D, Deboin J-M. How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries. Sustainability. 2022; 14(17):10794. https://doi.org/10.3390/su141710794
Chicago/Turabian StyleFalk, Anaïs, Catherine Macombe, Denis Loeillet, and Jean-Marc Deboin. 2022. "How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries" Sustainability 14, no. 17: 10794. https://doi.org/10.3390/su141710794
APA StyleFalk, A., Macombe, C., Loeillet, D., & Deboin, J. -M. (2022). How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries. Sustainability, 14(17), 10794. https://doi.org/10.3390/su141710794