SEATTLE, Washington — In 2019, for the first time in four years, it looked like poverty in Italy was on the decline, with 1.7 million families living in absolute poverty, which was down from the 1.8 million families living in absolute poverty in 2018. The Italian National Institute of Statistics (ISTAT) defines absolute poverty in Italy as being unable to buy goods and services essential to avoid “social exclusion.” For those living in relative poverty—people with disposable incomes less than half the national average, there was also good news. In 2019, only 14.7% of the population fell into this category, as opposed to 15% in 2018. Last year, poverty in Italy seemed to be falling, albeit slowly. But then, Italy was hit hard and fast by COVID-19, and the rest of the world watched the country lockdown as hospitals filled up. Now, it looks like the consequences of the pandemic are not just the lives lost to the virus, but increasing poverty and debt as well. Here is how the country is facing poverty after COVID-19.
Italy’s New Poor
When the lockdown began in March, almost 11.5 million Italians lost their job and requested unemployment aid from the government. Now, the primary agricultural association of Italy estimates that another one million Italians will have to start relying on food banks or other related services. The fallout from
COVID-19 has pushed an entirely new group of people into poverty, making up Italy’s “new poor,” and welfare services are struggling to keep up.
Italy’s “new poor” used to work in restaurants, movie theaters, gyms and sporting arenas, but since Italy shut down
in-person, non-essential businesses, these people quickly lost their jobs in the aftermath. On top of those traditionally employed, there were many people working in an “underground economy” (illegal/undeclared work) who were also left jobless after the lockdown. To combat this new transition, the Italian government has allocated some funding for those newly unemployed by COVID-19. In March, it promised €600 for part-time and self-employed workers. Months later and many of them are still waiting for that money. Eventually, the government also recognized the needs of those working in the underground economy and budgeted €55 billion to support workers who weren’t included in the previous financial package, but many of those workers still haven’t filed claims, for fear of exposing their statuses as illegal workers.
Some of Italy’s new poor are turning to criminal organizations for help. Mafia gangs in Italy are beginning to profit off of the pandemic, providing loans and food packages to those who aren’t receiving government aid, either from the delays in distribution or fear. Many others are turning to churches for charity, but their resources are already stretched thin. Soup kitchens have seen two hundred more people per meal, and one food package service now delivers to more than 7,000 families, as compared to the 300 before the pandemic. Whereas poverty in Italy had been decreasing before, Italy was unprepared for a spike of this magnitude.
What Italy Can Teach Us
One of Italy’s biggest warnings from this pandemic? After disease, comes poverty, and other countries need to be prepared to fight it. The entire world was able to watch Italy and learn from its actions as it became the center of a devastating COVID-19 outbreak. Now that Italy has begun to heal from the pandemic, we are uniquely situated to learn from them again.
Italy is already looking toward the future, and they
suspect the worst economic consequences will be able to be seen in the fall. Italy’s tourism industry will lose billions in the coming months, and up to 40% of small-to-medium businesses are predicted to disappear. On top of that, once the government lifts the
extended firing ban in December, the country expects to see a surge of layoffs and furloughs in the months following. All of these factors combined are set to increase the level of poverty in Italy.
What Italy lacks is a comprehensive plan. Many small business owners have shared their frustration at the Italian government for not doing more; they want legislation for sustainable growth and investment, and all they have received so far are handouts.
Looking Ahead
With Italy’s warning in mind, and with their stories on the front pages, other countries that are starting to begin their recovery from COVID-19 can learn from Italy’s mistakes in order to keep millions from falling into global poverty. Now, these countries have a choice: learn from history, or be doomed to repeat it.
—Hannah Daniel
Photo: Flickr
