Poverty, Ethnicity and Politics in Guyana

2. Poverty, Ethnicity and Politics in Guyana “One people, one nation, one destiny” Guyana National Motto (Mahabir, 284)

3. Population:698,209 Capital:Georgetown Major Cities: Berbice, Linden Language: English (The only English speaking country in South America) Independence: May 26, 1966 Ethnicity: Indo-Guyanese 51%, Afro-Guyanese 43%, Amerindian 4%, European 1%, Chinese 1% Religion: Christian 50%, Hindu 33% , Muslim 9%, Other 8% Guyana

4. Regional Layout of Guyana 1 2 3 7 4 5 8 10 6 9

6. Definition of Poverty • What is Poverty? Inability to attain a minimal standard of living (Gafar) • Perceptions of Poverty: A: Poverty’s Economic Face • Joblessness • Underemployment • Lack of finances to satisfy the family’s basic needs • Inability to access loans for self-employment and job creation through lack of collateral • Child Labor

8. B: Social High levels of illiteracy Ignorant and/or violent behaviour High levels of teenage pregnancy and single parenthood High level of substance abuse (drugs and alcohol) Large number of idle men or women C: Psychological Lack of self-esteem Lack of knowledge Lack of motivation to access vital information Feeling of hopelessness Dependency Perceptions of Poverty

10. But what is really poverty?Poverty is ... • Only eating a piece of cake and having a soft drink on Christmas Day • Parents standing in line to collect used clothing and food hand-outs • Fathers/husbands leaving families for long periods while working out of the community • People buying substandard expired goods because they are cheap • Being unable to send children to school • Overcrowding in small dilapidated structures • Frequent illness because of poor diet • Sin, punishment, suffering, hardship A single mother from Guyana defines poverty in these terms; “Poverty is hunger, loneliness, nowhere to go when the day is over, deprivation, discrimination, abuse and illiteracy.” (Gafar(a) , 61)

11. Characteristics of the Poor

14. Measurements of Poverty • How is poverty measured? • Headcount Approach - proportion of people living below the poverty line (Earnings are equal or less than US$ 1 per day) • Poverty Gap – measures the depth of poverty

15. Head Count Index

16. Poverty Gap

17. Measures of Poverty by Region

18. Ethnicity Total 1993 Total 1999 Ist Q 1993 Ist Q 1999 Indo-Guyanese 45.9 30.0 Afro-Guyanese 36.7 28.3 Amerindian 10.3 37.4 Mixed 6.2 4.1 Other 0.9 0.2 Measurements of Poverty by Ethnic Group

19. Causes of Poverty1/ Political history 2/ Economic Factors 3/ Social Aspects “Ethnicity is a powerful instrument in these plural societies because it can act as a measure of control, and as a symbol of racial and cultural superiority. It can be used as a mechanism to project and protect the interest of certain segments of the society.” (Mahabir)

20. 1/Political HistoryPeople’s Progressive Party(PPP)Civic History: • The first modern political party • Forbes Burnham • First Platform: 2 Objectives • Cheddi Jagan • Women

22. PPP Programs • 1953 Labors Relation Bill • Market oriented economy • Poverty Reduction Strategy Paper

24. People’s National Congress History • Split • Forbes Burnham • PNC • Focus of Party

26. PNC Platform Manifesto 2001 • Major focuses • Social reforms • Gender issues • Task forces • Economic Recovery Act

28. Race: A Factor • Race • PNC - Urban Afro-Guyanese • PPP - Indo-Guyanese • An Interesting feature of these racially and culturally heterogeneous societies is the development and accentuation of antagonism between and among the disparate groups, often aided and abetted by small racial elite power (Mahabir, 285) • When political power and economic resources are up for grabs, competition will always resolve around ethnicity. People would bound into seperate groups on the basis of a shared history, destiny, the myth of blood or of an imagined community. (Mahabir, 298)

29. 2/ Economic Factors Poverty from an economic perspective is “failure to achieve certain minimum capabilities.”(Gafar)

30. 3 Periods of Economic Policy • 1966 Ind. – 1970 Rep. ‘import substitution model’ • 1970-1988 ‘cooperative socialism’ • 1988 – today ‘liberalization and market reforms’ Economic Recovery Program 1992 free elections “ Any financial crisis results in widespread unemployment, a loss of purchasing power by the poor, and increased poverty.” (Gafar 68)

31. Economic Growth and Poverty

33. Trade

35. Lack of Economic Opportunities Agriculture Manufacturing Eco-tourism Poor tax system ‘Non-growth’ Infrastructure Poor Governance Insecurity and lack of adequate access to justice Corruption Discrimination Insufficient attention to decentralization Unsustainable Growth: Why?

37. Importance of Agriculture 20% of GDP ½ of exports 27% of labor force = 280,000 Over 90% of Guyana’s 25,000 farm households are concentrated along the narrow coastal plains Rural poverty 66% of the rural population lives in poverty 27% small farmers 15% women-headed households 12% Amerindians The rest do not own any land Agriculture and the Rural Poor

38. 3 measurements by year 1988 1993 1st Quintile % of income 7.5 5.3 2nd 11.7 7.7 ration of top 20 to bottom 40% 2.3 4.4 gini coefficient N/A 0.42 Income Inequality

39. Unemployment • of the population: some 50.8 % of those capable to work (15 or older) are working • of the poorest: • 52.9 % are working • 12.7 % unemployed • 34.4 % inactive • of the poorest: 57% are involved in the infomal sector 

41. Projected gross external financing requirements: US $ 1.4 billion in the next 5 years (2002-2006) or about US $ 272 million per year The government is estimated to be able to provide for US $ 181 million, which gives an esimated gap of US $ 91 million per year. 1996 1999 2000 Foreign direct investment (US $ million) 93 48 67.1 Total debt service (US $ million) 104.1 70 74 Aid per capita (current US $) 169.5 29.68 47.84 Foreign Debt

42. Foreign Debt

43. 3/ Social Aspects “Most poverty in Guyana can be explained by inadequate access to incomes, job opportunities, education, health care, and declining real wages.” (Gafar)

44. The facts • Lack of proper Social Programs for Education, Health care, Water, Sanitation and Housing • HDI (% of people not expected to live to 40, % of people who are illiterate, % of people without access to water and health services, and % of moderately and severely underweight children) • HPI (average of the deprivation in longevity, knowledge, and a decent standard of living)

45. Countries HDI HPI Guyana  0.708  N/A Jamaica 0.736 12.1 Dominican Republic 0.718 18.3 Haiti 0.338 46.2 Barbados  .84  N/A Measures

46. 1990 1999 Primary School Net Enrollment 92.8 96.6 Infant mortality rate (per 1000 live births) 63.8 58 Measeles: percent of 1-year olds immunized 77 83 Maternal mortality (per 1000 live births) N/A 190 HIV/AIDS number of reported cases N/A 237 HIV/AIDS reported cases among women aged 15-45 N/A 74 % population with access to safe water N/A 92 Social Development

48. The problems • Women and children • Highest among women, esp. Amerindians • 78.8% of total income received by men • 60% of the total labor force • Education • Free in Guyana • Migration • 8.38 migrant(s)/1000 population (2001 est.)

49. Health • Lige expectancy in 1998: 64 years • expected to rise to 68 years in 2010 (without counting HIV/AIDS) • given the HIV/AIDS now estimated to fall to 50 years in 2010. • It is estimated that in 1998 the HIV/AIDS epidemic has increased child mortality rate by 100% in Guyana. • Only 34% of the poorest have access to preventive care