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Social Protection in the Caribbean. The St. Lucian Experience. Overview. Situational Analysis - E conomic, Political and Social Reality Review of Social Protection Programmes Identification of Main Actors within relevant Ministry -PRF, BNTF Registry System Recommendations.
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Social Protection in the Caribbean The St. Lucian Experience
Overview • Situational Analysis - Economic, Political and Social Reality • Review of Social Protection Programmes • Identification of Main Actors within relevant Ministry -PRF, BNTF • Registry System • Recommendations
Country Profile • Area 238 sq mi 606 sq km • Population 164,213 • Life expectancy 73.3 years • Capital : Castries (60, 300) • Languages: English, French Creole • History 7 times French 7 times British • Government : Parliamentary Democracy
Political Situation • St Lucia became independent from the United Kingdom on 22nd February 1979. • It is governed by a UK-style representative system. • The British Monarch, represented by Governor-General, Dame Pearlette Louisy, is the head of state. • Executive power is exercised by the Prime Minister and his or her Government. • The United Workers’ Party (UWP) Government led by Prime Minister Sir John Compton, enjoys a 11-6 majority in Parliament after emerging victorious in general elections held on December 11, 20061. • The main opposition party is the St. Lucia Labour (SLP) Party by Dr. Kenny Anthony having lost election in December after two consecutive terms in office
Economic Situation St. Lucia experienced a marked decline in economic growth during the 1990s and early 2000s due to : • structural problems, including high labour and utilities costs, • the negative impact of the September 11, 2001 events on tourism • unfavourable weather on agriculture. Expansionary fiscal policies were pursued after 1999 in an attempt to revive growth and reduce unemployment, resulting in a steady rise in public debt. Economic activity in St. Lucia was estimated to have risen by 5% during 2005, led by increased activity in construction and within the hotels and restaurant industry. The tourism industry continues to be the most important area of economic activity and appears to hold the most potential for enhancing economic growth and development of St. Lucia. Preliminary data indicate that real output in the economy grew by an estimated 5.4 percent in 2006, primarily led by robust activity in the construction sector.
Economic Situation (cont’d) • The economy is therefore highly susceptible to external macroeconomic shocks, magnified by an undiversified production and export base and exacerbated by natural disasters that have a serious economic impact on banana and cocoa crops. • St. Lucia is facing new economic challenges in the context of globalisation and liberalisation. Economic growth will depend on improvements in the banana sector and expansion into non-traditional crops, tourism and other services.
Social Situation • St. Lucia has recently completed a Country Poverty Assessment (CPA) • The purpose of the CPA was to generate information and data on the living conditions and the quality of life being experienced by individuals, households and communities with the objective of deriving programmes and projects to improve standards of living in the society.
Indigence and Poverty Indigence and Poverty 1995 and 2005/06 Compared (Percent)
Findings – SLC/HBS The indigence line was estimated to be: Day =EC$ 3.40 (US$ 1.27) Month =EC$131 (US$46.06) Year =EC$1,570 (US$ 588.02) The poverty line (per adult) was estimated to be: Day =EC$13.93 (US$5.22) Month =EC$423.83 (US$158.74) Year =EC$5,086 (US$ 1,904.87)
Poverty and Age The data reveal that persons living below the poverty line are disproportionately young in comparison to the proportion of youth in the general population. The plight of the elderly poor was remarked on by community residents. Those who were totally reliant on public assistance would have been among the poorest, since public assistance payments were lower than the indigence line.
Poverty and Gender Micoud (27.5%), Vieux Fort (21.8%) and Sub-Urban Castries (15.3%) recorded the largest proportions of females classified as indigent. Another significant finding - high level of indigence among men in Vieux Fort.
Geography of Poverty Several rural districts exhibited prevalence rates in excess of 35%. Anse-la-Raye (44.9%) Soufriere (42.4%) Choiseul (38.4%) Laborie (42.1%) Micoud (43.6%) Moreover, Anse-la-Raye and Micoud were observed also to have had highest rates of indigence (5.3 per cent and 4.1 per cent, respectively)
Poverty Head Count by District 2005/06 GROS-ISLET CASTRIES URBAN CASTRIESRURAL ANSE-LA-RAYE/CANARIES DENNERY SOUFRIERE MICOUD CHOISEUL PovertyHeadCount LABORIE VIEUX-FORT 13.1 13.2 - 24.4 24.5 - 38.4 38.5 - 44.9 ± Source: Central Statistical Office Kilometers Household Budget Survey 2005/2006 0 2 4 8 Cartographer: Sherma lawrence Date of Publication: July 2006 Poverty Head Count shows the proportionof the population with a standard of livingbelow the poverty line.
Findings of the CPA (cont’d) • Vulnerability: Using an estimate of 33 percent above the poverty line as the criterion of vulnerability, 46.6 percent of the population was deemed to be vulnerable: in addition to the poor, an additional 16.2 percent of the population would be vulnerable to shocks that could place them below the poverty line, were these to eventuate
Social Protection In St. Lucia • The social protection system in St. Lucia is varied and multi-dimensional. • It is ad hoc and reactive rather than proactive. • It is influenced by the availability of funds from the development partners and the emphases on the international development agenda. • There is a lack of coordination • Civil society provides a strong system of social protection e.g the Church particularly St. Vincent De Paul society • The private sector has increased its role in the social protection system.
Social Protection In St. Lucia (Cont’d) • Commitment by Government – during the recent budget the Prime Minister spoke of “providing direct support to some of our more vulnerable populations” • Characterised by existence of informal strategies e.g. “coup de main” • Extended family support • Support by FBOs/CBOs
Structure of Government • Key departments and agencies that interface with communities and the vulnerable population have recently been placed under one umbrella ministry - The Ministry of Social Transformation, Human Services, Family Affairs, Youth and Sports.
Major Departments Community Services Youth & Sports Human Services & Family Affairs Gender Relations Research Information & Programming Social Agencies- Poverty Reduction Fund Basic Needs Trust Fund National Conservation Authority Ministry of SocialTransformation, Human Services, Family Affairs, Youth and Sports
Policy Framework • Social Policy • Poverty Reduction Strategy • Integrated Social Protection Strategy • Targets all vulnerable groups • Single parent households • The poor and indigent • Socially displaced persons • Homeless • Abandoned children • Vagrants • The elderly poor • Victims of substance abuse • deportees
Basic Needs Trust Fund • The Basic Needs Trust Fund (BNTF) was established under a regional Caribbean Development Bank (CDB) initiative in 1979. • BNTF is now into its fifth programme cycle • The purpose of the Programme is to assist low- income communities to reduce their vulnerability and to improve their access to public services through the provision of social and economic infrastructure and the development of skills to enhance employability • BNTF 5 will provide support to two main types of activities, namely: -The development of social and economic infrastructure at the community level; -Skills training (not less than 7% of the total grant). • Infrastructure projects may be in the following areas: water and sanitation, education, • health, physical welfare of vulnerable persons, community markets, access and • maintenance of facilities. • The Project also supports the strengthening of local institutions.
The Poverty Reduction Fund • The Poverty Reduction Fund (PRF) was established by the Parliament of Saint Lucia though the Poverty Reduction Act No. 7 of 1998 and it became operational in July of that year. Its mission is to reduce poverty, build social capital, improve socio-economic conditions and increase access to and quality of basic economic infrastructure and services across Saint Lucia, in a sustainable manner, including environmental considerations. • Its design has followed the model of the social investment funds that have been established in Latin America and other parts of the developing world in recent years. • Its primary purpose is to build local institutional capacity and to improve social and economic infrastructure • Funded by the Government of Saint Lucia (GOSL), World Bank and the European Union. • It has recently completed its first programme cycle with an impact Study Report that endorses its contribution to the delivery of community priorities.
PRF (Cont’d) • Its main domains of activity include: Ø Provision of technical assistance and funding for social and economic projects. Ø Provision of models and experiences for later integration into national policy and programmes. Ø Mobilisation and participation by beneficiary communities. Ø Strengthening of community-based and non-governmental organisations. • These activities are grouped into two main sets of activities: Ø Community projects, implemented according to the established project cycle. Ø A Social Assistance Programme.
Proposed Merger • In an effort to address fiscal and other constraints, the Ministry of Social Transformation initiated the amalgamation of the Basic Needs Trust Fund (BNTF) and the Poverty Reduction Fund (PRF). • The main objective of the initiative is to develop an operational framework for the establishment of one agency that will serve as a delivery mechanism for the provision of infrastructure and services to poor and marginalized communities and groups in an efficient, responsive and accountable manner.
Registry System • The National Insurance Corporation maintains a registry of persons within the labour market - ie NIC Contributors • The Civil Status Section of the Ministry of Justice is the central repository of births, deaths and marriage records • Data from the above institutions have not been used to inform Social Protection Policy • The Division of Human Services keeps a limited database of welfare recipients
Recommendations for Improvement of Social Protection in St. Lucia(as proposed by Dr. Henry-Lee in Social Protection and Poverty Reduction in the Caribbean: Examining Policy and Practice, St. Lucia Country Review) • 1. Promote “risk management” at the regional level through CARICOM and the soon to be established CSME. • 2. Develop a social protection strategy within an Integrated Development Plan with a vision of where St. Lucia should be in 20 years time and what the basic skills of every St. Lucian should be. • 3. Establish a Council to coordinate the social protection programmes with the Minister of Social Transformation as Chairperson. • 4. Institutionalize the 20/20 vision (developed by UNICEF/UNDP), which advocates that 20 percent of public expenditure and donor funds should be allocated to the basic social services – primary health, nutrition, family planning and rural sanitation.
Recommendations for Improvement of Social Protection in St. Lucia (cont’d) • 5. Encourage development partners to invest in institutional capacity building to ensure effective delivery of social protection instruments. • 6. Invest in “good quality education” so that the “jobs with decent wages” can be obtained. • 7. Encourage the establishment of an umbrella organization to coordinate and promote social protection activities by non-governmental organizations.
Recommendations for Improvement of Social Protection in St. Lucia (cont’d) There is also the need for: • Effective Targeting (the most vulnerable should get the benefits) • Constant Monitoring and Evaluation • Means Testing • Community Participation • Adequate Information System/database