Initiatives to Assist Low-Income Families
Today, around 4,000 Almaty families (20,500 people) are living below the poverty line. Income inequality and access to resources exacerbate social disparities in society, creating a need for effective support programs.
The existing government programs for low-income families include financial support (such as social assistance and other allowances), subsidies for utility payments, additional child benefits, and more. However, the effectiveness of these measures is a key issue, as many families receiving assistance remain trapped in a cycle of low income and dependence on benefits.
One of the main problems with this support is the suppression of employment incentives and intentional dependency on aid. At the same time, the existing social support system does not provide opportunities and resources for such families to escape poverty.
In this context, it is proposed to consider Singapore's experience in supporting low-income families, which helps them get out of poverty.
The Empowered Families Initiative (EFI)1 is a development initiative aimed at investing in low-income family plans in Singapore to improve their living conditions and socio-economic status. The program focuses not on needs, but on the potential of families.
EFI is based on a Social Contract of trust, autonomy, and accountability. The programs differ significantly from typical social assistance programs, which are mostly focused on fulfilling basic needs.
The program is based on a three-pronged approach:
- Grants: Families receive grants to unlock their potential. They have the autonomy to use these funds to achieve their goals, including education, home business, etc.;
- Savings: Families can build their assets and receive additional funds. Savings are matched 1:2 over 6 months, with a limit of $1,200;
- Community: Families participating in the program meet regularly to share their successes and achievements. Through this platform, they learn from each other, encourage, and support one another.
As part of the program, families are paid $250 every month for 6 months to improve their situation, such as for education, taking courses, or paying off debts.
To encourage families to save money, EFI doubles the amount they manage to save from their monthly grants and adds another $300 if they do not spend their savings within six months.
27 families participated in the program, many of whom live in rented apartments. They were selected after an interview and demonstrating that they are striving to achieve specific goals to improve their situation. Applicants can qualify for a grant if their household income per capita does not exceed $800 per month, but this is not a rigid criterion.
Based on the monthly reports submitted by the families during the first pilot project from October 2022 to March 2023, the EFI team found that an investment of $3,300 per family led to a 21% increase in income, the repayment of all debts and arrears, and a 141% increase in savings.
EFI became the winner of the national competition by the local charity organization Dreams Asia, where more than 60 teams in Singapore competed for the grand prize of $500,000 to create a groundbreaking project to eradicate poverty.
This experience clearly demonstrates that effective government support for low-income families should aim not only at alleviating current financial hardships but also at creating conditions for sustainable economic growth within families. Implementing measures aimed at stimulating employment, investing in education, and creating a favorable environment for development contributes to improving the lives of families and reducing social inequality in society.
This is presented as a proposal.
