Families and children hit by worldwide austerity measures

07 February 12

As the global financial crisis deepens, the impact of austerity measures is being felt by families worldwide.

The resignation of Romanian Prime Minister Emil Boc hit the news this week, in the wake of weeks of protest against austerity measures which are hitting families hard, including cuts to public workers salaries and a rise in sales tax from 19% to 24%.  

Meanwhile, the UK Government is resisting attempts by a group of bishops in the House of Lords to protect children from measures to reform the welfare system as the Government seeks to impose a cap on the benefits a family can receive. The bishops had tabled an amendment excluding Child Benefit from the £26,000 per year limit which has since been overturned.

In their analysis of austerity measures in 128 developing countries, UNICEF found that over half had cut their overall expenditure by almost a third of GDP. The report notes that children and poor households are particularly vulnerable. Similar analysis of six European countries identified that, in five of the countries, austerity measures have a larger effect on households with children than those without.  

In such a climate, the risk of families breaking down - one of the reasons children become institutionalised – is far greater. Many of the children we work with in institutions in Central and Eastern Europe and Africa are not technically orphans – four out of five have at least one living parent. Often their families are battling poverty and believe they will be better off in an institution where, at least, they will be fed and sent to school. In reality, children who grow up in institutions suffer delays in their development which can affect the rest of their lives. They also have higher mortality rates and lower educational performance and are more likely to become homeless, turn to crime and prostitution or commit suicide once they leave the institution.

Ironically, as well as being damaging for children, institutions are more expensive to run compared to alternative family based services which prevent family breakdown and abandonment. Research from 2005 (Carter) showed that running institutions is six times more expensive than providing social services to vulnerable families; three times more expensive than providing professional foster care; and twice as expensive as providing small family homes.

In the countries we work in, we give vulnerable families the support they need to get back on their feet, before problems escalate and they feel their only option is to give their children up. We will continue to champion support for children and vulnerable families and better childcare systems for children throughout 2012, as developed and developing countries alike seek to reduce their expenditure further.

Read more about how we work or donate now to support our work.