LISTENING TO THE POOR: A SOCIAL ASSESSMENT OF POVERTY IN LATVIA Report on research findings (March – June 1998) Institute of Philosophy and Sociology Riga, 1998 TABLE OF CONTENTS TALKING TO THE POOR:............................................................................................................ I A SOCIAL ASSESSMENT OF POVERTY IN LATVIA .............................................................. I TABLE OF CONTENTS................................................................................................................ II ACKNOWLEDGEMENTS.......................................................................................................... VI EXECUTIVE SUMMARY ......................................................................................................... VII OBJECTIVES OF THE STUDY ................................................................................................ VII METHODOLOGY ................................................................................................................. VII FINDINGS .......................................................................................................................... VIII CHAPTER 1: OBJECTIVES AND METHODS............................................................................1 AN ECONOMY IN TRANSITION................................................................................................1 OBJECTIVES OF THE STUDY ...................................................................................................2 METHODOLOGY ............................................................ERROR! BOOKMARK NOT DEFINED. CHAPTER 2: THE DIMENSIONS OF POVERTY .......................................................................4 CONCEPTUALIZING POVERTY ................................................................................................4 Poverty as relative....................................................................................................4 Describing poverty...................................................................................................5 What is a “poor person?”.........................................................................................6 EXPLAINING POVERTY...........................................................................................................6 Inadequate, low and late salaries..............................................................................6 Unemployment and the fear of unemployment........................................................7 Inflation, currency reform, and the collapse of the "Baltija" Bank..........................7 Low agricultural prices, high costs of technology and difficulties of marketing .................................................................................................................8 Assigning responsibility...........................................................................................8 THE IMPACT OF POVERTY ON SOCIAL RELATIONS ..................................................................9 Poverty and family relations ....................................................................................9 The impact of poverty on socializing.......................................................................9 Neighbors and friends ............................................................................................10 Stratification of society..........................................................................................10 CONCLUSIONS .....................................................................................................................11 CHAPTER 3: MATERIAL LIVING CONDITIONS....................................................................12 HOUSING CONDITIONS.........................................................................................................12 Rising housing costs, shrinking incomes...............................................................12 Deteriorating exteriors and interiors .....................................................................12 PAYING FOR RENT AND COMMUNAL SERVICES ....................................................................13 Housing types.........................................................................................................13 Central heating.......................................................................................................13 Heating with wood.................................................................................................14 Problems of plumbing and water supply................................................................14 Telephone costs......................................................................................................15 HOW HOUSEHOLDS STRATEGIZE TO PAY FOR HOUSING SERVICES ........................................15 The impact of housing costs on different households............................................15 ii Cutting back, substituting cheaper fuel, and doing without...................................16 Making reduced payments .....................................................................................17 Moving to cheaper housing....................................................................................17 Installing meters.....................................................................................................18 Selling assets..........................................................................................................18 Illegal techniques ...................................................................................................18 CONSEQUENCES OF NON-PAYMENT: EVICTION.....................................................................18 CHANGING PATTERNS OF OWNERSHIP..................................................................................19 CHANGING CONDITIONS IN NEIGHBORHOODS AND COMMUNITIES........................................21 Transportation........................................................................................................21 Perceptions of danger and insecurity .....................................................................21 Spatialization of poverty........................................................................................23 CONCLUSION.......................................................................................................................24 CHAPTER 4: FORMAL AND INFORMAL SURVIVAL STRATEGIES ..................................25 INTRODUCTION....................................................................................................................25 SELF-EMPLOYMENT IN URBAN AREAS..................................................................................25 Working in the service sector ................................................................................25 Petty commerce......................................................................................................26 Making use of formal training ...............................................................................26 Arts and crafts........................................................................................................26 Construction work..................................................................................................27 Paid domestic labor................................................................................................27 Migrating for work.................................................................................................27 Selling recyclables .................................................................................................28 RURAL SURVIVAL STRATEGIES ............................................................................................29 Farming for cash and subsistence ..........................................................................29 Gathering................................................................................................................30 Agricultural wage labor .........................................................................................30 Forestry ..................................................................................................................31 SUBSISTENCE STRATEGIES...................................................................................................32 Selling and pawning assets ....................................................................................32 Exchanging goods, services and money.................................................................32 Economizing and cutting back...............................................................................33 Juggling debts ........................................................................................................34 Pilfering and theft ..................................................................................................34 Exchanging sexual favors ......................................................................................34 Exchanging housing for assistance ........................................................................34 SEARCHING FOR EMPLOYMENT ...........................................................................................34 The role of personal connections ...........................................................................34 Splitting up for survival .........................................................................................35