A review of measurement and causal analysis of Indigenous poverty and disadvantage in remote Australia

Abstract

This paper is a review of current assessment frameworks, time series features and an analysis of the causes of Indigenous poverty and disadvantage. Current frameworks used to assess the chronic nature of Indigenous poverty and disadvantage are mainly descriptive in nature and inadequate in terms of considering Indigenous perspectives and concerns about well-being improvement. They are also backward looking and not indicative of causal structures. Existing national longitudinal data sets have either limited coverage or inadequate Indigenous sample sizes and cannot be used to make any meaningful multidimensional analysis of chronic Indigenous poverty and disadvantage. Explanations as to why disadvantage and poverty persist are fragmentary and often polarized, including either an Indigenous culture of dependency or government policy failures. The persistence of Indigenous disadvantage and poverty is evident when using even inadequate measures such as income. The persistence of poverty in spite of several efforts seems to indicate traps – different sets of complex feedback loops that create vicious circles and make escaping from poverty a non-linear affair. This paper suggests adapting and then adopting a broader inequality and poverty assessment framework such as a capability approach by Amatrya Sen. It also calls for research which would apply integrated systems approaches and modelling to explore the nature of poverty and inequality traps among Indigenous people and to provide comprehensive evidence base for effective solutions.