'The poor shall always be with you'

So it has been written. Despite ever increasing affluence and material well-being, humanity has still failed miserably in eradicating poverty. It is estimated that one third of the world population lives in sheer poverty. And the poor are not to be found solely in the Third World, the developing countries. One in every eight Americans is living in poverty. A recent study by Unicef concluded that in recent years child poverty had worsened in 17 of the 24 richest countries of the world. According to the Malta government, poverty here is in line with that of EU countries, with about 15 per cent of the population and 21 per cent of children being at the risk of poverty.

The figures for our country are nothing to boast about. This for a society that prides itself of its big social conscience and which spends a significant amount of its money on the welfare state.

At a time when government finances are in dire straits, it is important to ask who is really benefiting from this "welfarism". Otherwise there could be a real danger that once the present unsustainable system is inevitably overhauled, those who are really in need, but have no political voice, will end up as net losers.

The government-appointed working group, known as the Poverty Line Project, reported that "in order to understand the effectiveness of the available social benefits, a basic needs- driven poverty threshold has yet to be developed". The National Commission for the Family believes that social assistance must be more carefully tailored, monitored and delivered. And, in my opinion, it should have added that social assistance needs also to be de-politicised.

In dealing with such an issue, where there exist deep vested interests, it is quite easy to get lost in analysis and a maze of marginally relevant considerations. Defining poverty has been a bone of contention. Understanding what causes it and how it is to be measured can become a nightmare. And, in the meantime, people around the world are suffering, maybe dying of hunger and disease.

It takes a tsunami to momentarily bring us back to our senses. At this year's meeting of the World Economic Forum, Davos 2005, President Jacques Chirac said that "It's time for ethics", declaring a new global war on poverty. Former American President Bill Clinton emphasised that possibly "we need to end welfare as we know it".

For people like Mother Teresa, who spent her life working with the poor, poverty needs no definition.

For her, poverty had a face and a name. Yet even she came under fire. Once she recalled how a man accused her of spoiling people by giving them fish to eat. She should give them a rod to fish. Her reply was that "her" people could not even stand, let alone hold a rod.

"But I will give them the fish to eat and then once they are strong enough I will hand them over to you."

Seen through Western eyes, the poor have a right for food, decent shelter and clothing and adequate health services.

They also have a right for the opportunity to overcome social exclusion and to strive for economic self reliance. To be successful, poverty eradication cannot be tackled in a piecemeal way.

Economic deprivation in Malta has been closely linked to social exclusion. Our society is changing very fast, traditional family and kin networks are being continually redefined, conventional safety nets are disappearing.

The intervention of the state in ensuring a basic level of welfare of all its members is fundamental to building social cohesion. Yet, it would be a mistake for the government to seek to achieve this on its own; the involvement of civil society is essential.

To my mind, there can be no success in eliminating poverty without stamping out the scourge of illiteracy. In academic and public policy circles there is nowadays a lot of talk about the "knowledge society". Still, one in 10 of our adult population is illiterate. These are the people most vulnerable to poverty.

Our community needs to take a holistic approach to social welfare. Its core objective being the wiping out of illiteracy and poverty as well as combating the marginalisation of any of its members.

I am sure this will have the backing of all the political and social forces of this country. The necessary goodwill of all parties exists.

Finding the required financial resources may seem to be more challenging. This will inevitably entail more effective, and efficient, use of the money already being spent on social welfare.

This is one of the important challenges facing our country. Urgent action is called for if we are to embark on a programme of social and economic regeneration.