Monday, 10 September 2012

THE POVERTY LINE


Argentina’s dubious poverty line
The six-peso diet - Rumbling 
stomachs, grumbling citizens
Sep 8th 2012 | BUENOS AIRES | from the print edition


SIX Argentine pesos ($1.30 at the official exchange rate, or about $1 on the black market) is just enough to buy an alfajor, a sweet biscuit nibbled between meals over coffee. But according to the government, it is more than sufficient to buy an entire day’s food. On August 10th INDEC, the national statistics agency, declared that a family of four should be considered above the poverty line if its monthly food bill exceeded 688 pesos, equal to about six pesos per person per day.

The claim has stuck in the throats of ordinary Argentines, who have to spend far more than this to keep hunger at bay thanks to galloping inflation. Indignant citizens created mock advertisements featuring pizzas the size of finger nails. Hackers disabled the INDEC website, tweeting: “Now you’ll have to use your six little pesos to restore your page :)”.
Experts also doubt the government’s claim. A study by the University of Buenos Aires puts the minimum daily budget for a healthy diet at 24 pesos per person, four times the official figure. “It is totally impossible to eat healthily with six pesos,” says Sergio Britos, one of the study’s authors. INDEC’s report “loses all credibility” by supposing unrealistically low food-prices, he says.
It is not the first time that official reports have played down the cost of living. Since 2007 the government has published bogus inflation statistics to beguile voters and investors. In February, with independent estimates running more than twice as high as official ones, The Economist stopped publishing INDEC’s inflation figures . . . .

More in the Economist:  http://www.economist.com/

Peter’s Comment

Argentina has reduced its military spending in recent years, but still spends 5 billion USD a year on a force of 73,000 personnel.

Getting every mouth fed should have a higher priority than fighting imaginary wars.