Income Distribution and Poverty Alleviation for the Native Hawaiian Community

Seiji Naya ()
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Seiji Naya: East-West Center

No 91, Economics Study Area Working Papers from East-West Center, Economics Study Area

Abstract: Since 2000, Hawaii's economy has done relatively well over time and the state's per capita personal income is higher than the U.S. level both. Hawaii's poverty rate is also lower than the mainland's. But in the midst of this prosperity, Native Hawaiians have substaintially higher poverty rates. But in the midst of this prosperity, Native Hawaiians have substantially higher poverty rates. This study examines income distribution and its relation to poverty by using the Lorenz Curve, Gini Coefficient and Kuznets Ration. First, our research reveals that poverty rates are higher and per capital income is lower among Native Hawaiians. This may reflect the sense of family and community that Hawaiian’s call the Ohana spirit. An examination of the income component reveals that income and savings are very low among Native Hawaiians, making it difficult for them to borrow capital from private banks and start business. Possible factors for low income could be the ration of Native Hawaiians graduating from business, science and technology majors are lower than other groups and Native Hawaiian run business’ income as well as number of business is much lower than the State average. Finally, this study concludes by considering micro-finance concepts created by the Grameen Bank as one possible solution to allowing Native Hawaiians to participate more in business and increase income levels.

Pages: pages 22
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