Kazakhstan: Child Poverty Lessons for Adults
Almost half a million of Kazakhstan children live in poverty. They live for one dollar a day. Every low-income family has their particular problems that have led to such a life. The government of Kazakhstan provide targeted assistance to low-income families, namely food and clothing. However, the set of problems – unsuitable living conditions in rural areas, low level of vocational education of parents, lack of upward mobility – prevent these children from overcoming poverty. According to experts, the situation will get worse in the nearest eighteen months.
Too much and even more
Every 13th child in Kazakhstan lives in a poor family. Among the total number of children (6.2 million people), 472 thousand of minors are officially recognised as poor. According to Yerlan Aukenov, vice minister of labour and social protection of people of Kazakhstan, who gave his comment to CABAR.asia, such statistics are based on the total number of citizens who applied for targeted social assistance (ASP). This payment is meant for the households whose per capita income per month is below the poverty line. The poverty line is officially equal to 70 per cent of the regional minimum subsistence level. In other words, ASP is meant only for extreme poor households, rather than low-income families.

The calculation in absolute figures is as follows. According to the source, in May 2021 the monthly per capita income of people who is on ASP was 16.6 thousand tenge (39 dollars). In other words, the amount, which a member of a low-income household may spend a day, equals 1.3 dollars. This amount can be used in Kazakhstan to buy a milk package, a loaf of bread or three kilogrammes of potatoes.

The official information provided by the Ministry of Labour and Social Protection of People of Kazakhstan helps us track down how the pandemic has affected the social position of Kazakhstanis with humble income. Thus, as of May 1, 2020, the country had 586.7 thousand citizens on ASP (including 381.2 thousand of children). These figures increased by 27 per cent (up to 750 thousand) for one year. The number of poor children increased by 24 per cent – from 381 thousand to 472 thousand people.
It must be said that the situation in rural areas is worse than in cities. It follows from the information provided by the National Statistics Bureau of Kazakhstan (according to last update of 2019). The total share of population at the age of 0 to 17 with substandard income was 6.6 per cent. In cities, this indicator was 4.3 per cent, and in villages the number of poor children was far more – 9.5 per cent.

The coordinator of social policy programmes of the United Nations Children's Fund (UNICEF) in Kazakhstan, Arman Umerbayev, said that the child poverty situation and social inequality in Kazakhstan is more far-reaching and complex than follows from the data on the share of children living beyond poverty line. With reference to the official statistics, the speaker said that 15 per cent of all children (more than 930 thousand people – author's note) in 2020 lived in the least wealthy households.
Poverty is so diverse
To grasp what poverty level is among poverty-stricken children in Kazakhstan, we can sort out all statistical data according to Maslow's principle. Thus, the theory suggested by the American psychologist says that physiological needs (food, water, sleep) are the basic human needs. According to the data taken from the statistical book "Children in Kazakhstan" of the National Statistics Bureau of Kazakhstan (this multiple indicator cluster survey is held every five years), by results of 2019, the share of households with children that spend up to 15 thousand tenge (39 dollars) on food was 0.3 per cent of the total number of households.

Then follows a group of households that spend from 15 thousand to 20 thousand tenge (39-52 dollars) on food. They amount to 1.6 per cent (families with many children – 2.4 per cent). They are poor, too, because their daily ration costs 1.3 to 1.7 dollars per person.

Low-income households are the following group of households that spend 20-25 thousand tenge (52-65 dollars) on food per month, or 1.7 to 2.1 dollars per person. The number of such households with children is 4.3 per cent (among families with many children – 7.1 per cent).

According to the method used by the specialists of the National Statistics Bureau of Kazakhstan, they use ranking based on ten decile groups to compare the economic security of the poor and the rich. Statisticians compare the indicators of income, food consumption between the richest and the poorest population.

What and in what quantity do children eat in poor households? This information is gathered by statisticians during multiple indicator surveys. The results of this work for 2019 showed that the poorest households with children consumer per month:

  • 12 kilogrammes of dairy products,
  • 3.5 kilogrammes of meat,
  • 10 kilogrammes of bread and cereals,
  • 5 kilogrammes of vegetables,
  • 3 kilogrammes of potatoes,
  • 9 eggs,
  • 700 grams of fish,
  • 3.5 kilogrammes of fruit,2.5 kilogrammes of sugar and confectionery.

All data are indicated per household, i.e. they need to be divided proportionally to the number of household members.

For comparison: the richest households buy twice as much per month. The general monthly ration of such households is as follows:

  • 27 kilogrammes of dairy products,
  • 8.5 kilogrammes of meat,
  • 10.7 kilogrammes of bread and cereals,
  • 7.7 kilogrammes of vegetables,
  • 4.6 kilogrammes of potatoes,
  • 9 kilogrammes of fruit,
  • 19 eggs,
  • 1.5 kilogrammes of fish,
  • 4 kilogrammes of sugar and confectionery.

The second level of the pyramid is safety need. According to the official data, the number of crimes against children has decreased three-fold in the last decade in Kazakhstan. In 2010, law-enforcement bodies registered 36.5 crimes per 100 thousand children, and in 2019, the number decreased to 11.4.

One of the most aspects in child life is education. In Kazakhstan, 99.6 per cent of children are covered with elementary education, and 100 per cent with secondary education. Every fifth child at the age of 6 to 15 has no personal computer; only 85 per cent use mobile phones.

Another important need of children is development. If schoolchildren acquire necessary knowledge at school, pre-schoolers need good home learning environment. According to results of the survey held by the National Statistics Bureau of Kazakhstan, only 51 per cent of children under five have three books or more at home, and 60 per cent of children play with two toys or more.

In general, the share of children under five who develop without abnormalities in terms of health, learning and psychosocial well-being amounts to 85.5 per cent.
Inherited poverty
The story of the family of Arailym Dukenbaeva from Ust-Kamenogorsk (Eastern Kazakhstan) is a traditional example of modest-income rural people who moved to the city in search of a better life. Three years ago, spouses Arailym and Bauyrzhan moved to the regional centre of Eastern Kazakhstan region from the small village of Zhanalyk, Tarbagatai district. Parents knew that their five children – Alimzhan, Zarina, Duman, Mansur and Adilzhan – need better conditions than the village could offer them. Moreover, two sons are with disabilities and need medical and social correction.

The boys in the family do not starve, wear cheap clothes, have necessary furniture. However, their living conditions are not good, their house is not suitable for winter. Child poverty in this family is the effect of adult poverty, low level of education of parents, disability of sons and tough living situation.

Initially, the couple knew they could not buy the apartment in the city. However, they did not even count on that – they were short of money. Husband worked as a janitor in the nearest city school. They saved money to buy a small house in Titan dacha community near Ust-Kamenogorsk. They started the repairs, improvement of the area, and the accident happened. Bauyrzhan had blood stroke and fell into a coma. In a month, doctors suggested that Arailym make a decision – remove life support or take husband home in a vegetative state. The man had no hope of recovery and he could not be kept in the hospital. The woman chose the second option.

Their life became even harder. In the past, their family had had at least one wage earner, but now their income was made of disability benefits for her sons. Now the family spends most of the money to take care of their critically ill father. The woman borrows food products from a store.

"To make my husband breathe, we bought the cheapest ventilator. It cost us 100 thousand tenge (235 dollars). Moreover, food is very expensive – we need to provide him with two bottles of specialised formulas from the pharmacy through the feeding tube. It costs us over 26 thousand tenge a month (61 dollars). Moreover, we buy diapers, medications," Arailym Dukenbaeva said to the reporter of CABAR.Asia.

Arailym did not resort to the social protection department – she is not used to asking for help. When we spoke to the family, we saw the key reason – both mother and sons feel ashamed for their poverty.

Oleg Ivanov, the chair of Titan gardening partnership, told about the family that needs support to the akimat of Ust-Kamenogorsk and charitable organisations. State organisations help them from time to time – they bring food packages and clothes for children. The caring head of the dacha community said that 1,200 households are registered in this community, including 820 households who live there throughout the year. The citizens call such dacha communities "city ghettos". They all know that people who live there all the year round are usually low-income people or outcasts.
"Those who live in summer houses winter and summer live there for a reason. They have either moved from a distant village and they don't have enough money to buy an apartment or a comfortable house, or been deceived and deprived of their property. There are many low-income households among them. Working adults spend most of their money to improve their summer houses, to insulate them for winter. However, there are few such families as Arailym's family. We try to help them with documents to make them apply for a rental apartment from the state," Oleg Ivanov said.
By the way, Arailym Dukenbaeva has applied for the apartment, too. The akimat promised to provide her with a three-room apartment once it is her turn. They will have to pay the rental to the budget for 10-15 years, but then the three-room apartment can be bought out from the state at residual value. Arailym's children cannot wait to see that moment because then they would be able to attend courses and various classes, and would not need to carry heavy coal buckets to fire the furnace.
What is their assistance?
The system of state support for low-income families in Kazakhstan is a diverse one. Let's see the main kinds of assistance that low-income households can qualify for. Yerlan Aukenov, vice prime minister of labour and social protection of people of Kazakhstan, provided some information about the assistance.
1
The first option is targeted social assistance. This is the main allowance for low-income people. It is calculated as the difference between the poverty line (24 thousand tenge or 57 dollars) and per capita income per one household member. This allowance, as such, lets the household live just above the poverty line. Thus, together with ASP, the income of such household becomes equal to 57 dollars per person (or about 2 dollars per day).

However, there is a condition. Targeted social assistance has a motivating component. Households with able-bodied family members must sign social contract once they get ASP. This document suggests that parents are bound to obtain employment or retrain. If mother or father declines all job offers, other forms of employment, the whole household shall lose state benefit for six months. The unconditional ASP (without a social contract) is granted to the households, where the only able-bodied family member cannot work because he/she takes care of a young child, a disabled person or an elderly relative.

In addition to the monetary payment, poor households with children receive the so-called payment in kind. It is called the guaranteed social package (GSP). For pre-schoolers, GSP contains the food package (cereals, milk, baby foods, cookies, etc.), and washing supplies. Children aged 6 to 18 receive free school meals, school uniform and shoes, stationery supplies, and travel allowances.

"GSP is funded by the 'Vseobucha' Foundation and amounts granted for such assistance vary in every region. Thus, Eastern Kazakhstan region spent 3.6 billion tenge (8.7 million dollars) or 4 per cent of total secondary education expenses to support children from poor households in 2020. This is a good indicator. In other regions, this indicator equals 1 per cent," said Zhasultan Sarsenbayev, chief of the office for coordination of employment and social programmes in Eastern Kazakhstan region.

As of May 1, 2021, ASP was granted to 750 thousand people (including 472 thousand children) and GSP was granted to 419 thousand minor children across the country.

At the meeting with the CABAR.asia journalist, Zhasulan Sarsebayev showed a guide on kinds of state support. It was published to deliver simple information about kinds of support people can apply for.
"It turns out that many people do not know about the kinds of allowances and the opportunities they can have to open their businesses. These are grants, cheap loans, job offers, retraining. We have published the guide and distributed it among all Public Service Centres, government agencies attended by low-income people," Zhasulan Sarsebayev said.
2
The second option is large-family allowances. In 2019, such allowances were granted only to low-income households with four or more children, whose per capita income was below 50 per cent of the minimum subsistence level. The amount of the special family allowance was 10.5 thousand tenge (27 dollars).

The situation changed after the tragedy that took place on February 4, 2019 in the capital of Kazakhstan, Nur-Sultan. A temporary construction burned down in the private sector and five sisters of the Siter family died in the fire. The girls aged 1 to 13 were alone at night because their mother was a packer on a night shift and their father, the motor mechanic, was urgently called to the service station.

The tragedy, where not the fire, but poverty caused the deaths of children and where the parents had to work day and night, shook the country. A day after the girls were buried mothers of large families spontaneously took to the streets to state about low social support to large families from the state. Afterwards, the government was discussing the revision of approaches to assisting large families more often for a few months. They decided to revise the system of assistance to such families.

From January 1, 2020, all large families, regardless of parents' income, receive fixed allowance – 4 times MRP (monthly calculation index) per every child. In 2021, the amount of the state allowance is as follows. If the family has four children, the payment is 46.7 thousand tenge (110 dollars), five children – 58.4 thousand tenge (137 dollars), six children – 70.1 thousand tenge (164 dollars). Moreover, mothers of many children who have titles "Altyn alka" and "Kumis alka" receive a separate allowance in the amount of 9.4 MRP, or 18.6 thousand tenge (44 dollars).
3
The third option is housing assistance. It means inclusion of large families into a separate category of families on a waiting list for a house or apartment under construction from the state public housing fund. This is a complex and financially demanding problem that the state cannot solve promptly as the rate of completed dwellings is low. For example, Eastern Kazakhstan region allocated 1,049 apartments for large families in 2020, and nearly 500 apartments in the previous year.
Is this enough?
How to determine if the state support provided to low-income families with children is sufficient or not? Let's see various opinions.

"To estimate public opinion about the efficiency of state support, the government has ordered repeated social surveys. Thus, they have shown that the proportion of people in reproductive age who estimate positively the efficiency of state measures of support to families with children is 70 per cent," said Yerlan Aukenov to CABAR.asia.

According to the speaker, the analysis of the current law on family procurement and social protection of maternity is in full compliance with international standards "On minimum standards of social assistance."

According to the representative of the relevant agency, in the last decade the number of recipients of allowances for families with children has increased by 39 per cent, and the amount of budget funds for this purpose has increased four times (in the national currency). In 2011, the total expenditure for this purpose was 160.9 billion tenge (1.1 billion dollars), and in 2020 it exceeded 653.3 billion tenge (1.4 billion dollars). After conversion, the increase in dollars shows 35 per cent. This figure excludes the cumulative inflation rate for ten years.

Arman Umerbayev, coordinator of social policies programme of UNICEF Representative Office in Kazakhstan, provides data proving the fact that the level of budgetary expenditure on children and family allowances in Kazakhstan is below the global level. Last year, UNICEF specialists held a special survey on this topic.

"An average of 1.1 per cent of GDP is spent on child allowances for children aged 0-14 and family allowances in the world, according to the World Labour Organisation. In Kazakhstan, this indicator was 0.5 per cent of GDP in 2017-2018, and 0.83 per cent of GDP in 2019. For comparison: in European countries, the rate of public expenditure for this purpose is 2.5 per cent of GDP. However, the share of children there is half as many as in Kazakhstan," Arman Umerbayev said.

The UNICEF representative in Kazakhstan said that it is not the matter of funding, but the problem of rational and efficient use of money that is important and causes concern.
"Every year during budgeting, the amounts of allowances meant for social protection of children in Kazakhstan are being reviewed based on the forecasted inflation rate. As a result, in 2019 the growth of these social allowances in nominal terms increased compared to 2016 and amounted to 119-130 per cent. However, based on the cumulative inflation rate, the amounts of allowances in real terms could not reach the 2016 level and decreased by 4-12 per cent," Arman Umerbayev said.
Another relevant problem, according to the speaker, is the problem with material assistance to low-income households during the pandemic. According to Kazakhstan UNICEF estimates, every fifth representative of vulnerable groups could not get extra assistance from the state because of difficulties with document preparation.

Children's ombudsman in Kazakhstan Aruzhan Sain in the interview to the CABAR.asia reporter emphasised that "a lot of good things are declared in law in our country in part of the state's duties to citizens. How it is performed on the ground is a different story."
"Children's ombudsman means common social and economic problems leading households to poverty. For example, the increase in children's disability. If we had a good chain of early detection of health issues in babies, early intervention, treatment and rehabilitation, we could reduce the number of children who become severely disabled. In other words, we could reduce the number of households who become low-income families once they have a disabled child because they lose income of one family member and spend much money on medical and social services.

We are working in this direction now. We have created a roadmap to improve the quality of life for children with disabilities. And we want to make this plan of actions real and implemented, not a mere formality, as it often happens," Aruzhan Sain said.

According to the children's ombudsman in Kazakhstan, "we must create such a state system as to fully ensure the justified national budget based on real needs of children, and the totally transparent mechanisms of implementation."

Aruzhan Sain
Children's ombudsman in Kazakhstan
Forecasts and recommendations
The specialists of the UNICEF in Kazakhstan were pessimistic speaking of child poverty in Kazakhstan in the nearest future. According to preliminary estimates, the child poverty level in various scenarios might increase up to 19-22 per cent in 2022. According to Arman Umerbayev, there is a real risk that every fifth child in the country could be designated as poor. It also means that even next year the country will not be able to return to the 2019 indicators and these negative consequences may have a long-term effect.

"UNICEF is cooperating with the government of Kazakhstan and emphasises that it is important to introduce the integrated model of social assistance, the need for removing any administrative obstacles to access to state support, including steep demands and unnecessary conditions of applying for such assistance. It is also important to introduce the social register that contributes to horizontal and vertical expansion of social support in response to hardships experienced by the people because of the pandemic," Arman Umerbayev said.

According to Aruzhan Sain, Kazakhstan needs quality and profound changes in the common economic structure in order to eradicate child poverty. Only such changes can contribute to human capital development.

"It's high time we, adult citizens of Kazakhstan, focused all our efforts on providing all opportunities to our children to make them educated, well-raised, and, most importantly, patriotic to our state. Therefore, all our investments, resources must be aimed at our children, our human capital. We need to raise public awareness of our goals and to revise the system accordingly by means of honest and decent professionals at all levels of business and public administration. If we reach our goals, the problem of poverty will disappear without a trace," the children's ombudsman said.
By
Irina Osipova
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Natalia Lee
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