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Nordic nations show the way to lift children out of poverty
The Age
Tuesday March 15, 2011
If they can do it so can we, and taking action now will save a whole lot of grief later. IT IS scandalous that more than half a million or one in eight Australian children continue to live in poverty. Various political and economic commentators have called lately for bold reforms, but the kind of "reforms" many have in mind such as further privatisation, deregulation or other measures that would increase inequality are not what is needed.Instead, cutting child poverty in Australia towards the much lower levels achieved in the Nordic European nations of Sweden, Norway, Denmark and Finland would be a genuinely bold reform deserving of support.The Council of Australian Governments recently agreed on overhauling healthcare funding and the Prime Minister has emphasised plans to increase workforce participation. Both initiatives can help reduce the stark inequalities that disadvantage so many Australian children.The landmark new book by British researchers Richard Wilkinson and Kate Pickett, The Spirit Level: Why Equality is Better for Everyone, highlights the Nordic nations' achievements in early childhood development. It shows how increases in socio-economic equality starting in the earliest years of life promote positive health outcomes for all members of society.The Nordic countries' successes for children result from their strong investment in public childcare, provision of substantial paid parental leave and effective regulation of working hours.These policies promote secure and appropriate jobs in terms of work/family balance, boost women's labour force participation and reduce joblessness among families with children.Prime Minister Julia Gillard and her government have made positive initial reforms including introduction of some paid parental leave, support for wage rises for low-paid community services workers and national implementation of the Australian Early Development Index. More can now be done.COAG in 2009 started to develop an early years agenda including a priority to strengthen the early childhood development workforce.It is now time for renewed and much more vigorous activity by national and all state and territory governments to properly follow through on that initial work. This should include updates on progress with, and resources for, the introduction of a required 15 hours a week of kindergarten for four-year-olds in 2013, particularly in growing but socio-economically disadvantaged urban areas.Measures in Australia that would benefit businesses as well as workers include providing further parental leave, and more family-friendly working hours. These would help companies retain experienced, valuable employees.It will also be useful to research the practical local benefits that the introduction in Australia of particular Nordic European approaches and programs can bring.It has been calculated by economist Professor Peter Whiteford that reducing joblessness among families towards the consistently low levels of the Nordic nations could in itself cut child poverty in Australia by as much as a third.Sweden, Denmark and Norway have consistently had much higher labour force participation rates than Australia. Their high employment, including proper forms and standards of part-time work for women, has greatly helped them to reduce poverty among children.Some (including Tony Abbott) who push for higher workforce participation do so as part of a punitive welfare reform agenda based on an assumption that individuals are trying to avoid responsibility. Others push for higher workforce participation as part of a positive plan to tackle hidden unemployment, including through job creation and substantial, sensitively designed new skills retraining opportunities.It is vital that the government's actions are guided by this constructive second approach.The flood and cyclone crises that have ravaged Queensland, in particular, have created a need for new community infrastructure repair and rebuilding activity. People with the skills and energies to contribute to this include many who are currently unemployed or out of the workforce due to loss of jobs in the industries in which they used to work. Their re-engagement with paid work now will not only help rebuild the ravaged regions, but will also help boost national productivity through the extra mobilisation of human resources.Concerns that a comprehensive government approach to boosting workforce participation and investing in children's well-being are beyond current financial resources are misplaced. The resources simply must be found now for these priorities or a far higher price will be paid by each one of us later.
© 2011 The Age