The Challenges of Poverty and Social Welfare in the Caribbean

INTERNATIONAL DOI: 10.1111/j.1468-2397.2006.00453.x JOURNAL OF Int J Soc Welfare 2007: 16: 150–158 SOCIAL WELFARE ISSN 1369-6866 The challenges of poverty and social welfare in the Caribbean

Bowen GA. The challenges of poverty and social welfare in Glenn A. Bowen the Caribbean Int J Soc Welfare 2007: 16: 150–158 © 2006 The Author(s), Western Carolina University, Cullowhee, NC, USA Journal compilation © 2007 Blackwell Publishing Ltd and the International Journal of Social Welfare. Poverty and related social problems have presented a long- standing challenge to policy makers and development planners Key words: Caribbean, microﬁnance, poverty, social development, throughout the Caribbean. This article is a social primer on social funds, social welfare anti-poverty strategies and welfare programmes established in Caribbean countries. It presents a comprehensive overview of Glenn A. Bowen, Western Carolina University, 460 HF Robinson poverty and attendant problems, discusses the social welfare Administration Building, Cullowhee, NC 28723, USA approach and poverty reduction strategies, and outlines E-mail: [email protected] practical proposals for pursuing social development. Accepted for publication April 6, 2006

programmes in the Caribbean. It also presents practical Introduction proposals for addressing social and human development Caribbean countries have been grappling with poverty in the region. These proposals comprise a general and concomitant social problems for many decades. The approach to poverty reduction rather than specific small island economies of the region1 face formidable strategies geared to different countries. challenges as they deal with the impact of globalisation, particularly in relation to the vital agricultural sector Dimensions and characteristics of poverty (Ahmed, 2001; Paul, 2002). Moreover, widespread poverty has represented the most intractable challenge to social Traditionally, poverty has been conceptualised as and economic development in the Caribbean (Baker, income and material deprivation, but it has long been 1997; Mills, 1998) and has contributed to environmental acknowledged that poverty may be defined in various degradation (Evans, McGregor & Barker, 1998). ways (Banfield, 1981; Macarov, 1995). Poverty involves Despite overall improvements in living standards, much more than the restrictions imposed by lack of poverty remains a persistent problem in Caribbean income. A complex, multidimensional problem, poverty countries today (Department for International Develop- has both income and non-income dimensions, entailing ment [DFID], 2004; Orozco, 2003). Poverty rates average the lack of the basic capability to lead full, creative about 30 per cent of the Caribbean population, with lives. The income dimensions reflect living standards in Haiti’s 65 per cent rate being the highest among the relation to material deprivation; in monetary terms, a countries of the region (Caribbean Development Bank person living on US$1.00 per day is generally considered [CDB], 2004; World Bank Group, 2005).This article poor (UNDP, 2004). Various social and human develop- synthesises research data about poverty and related ment indicators such as health, child mortality, life problems, anti-poverty strategies and social welfare expectancy, housing, education and access to drinking water and sanitation facilities are aligned to the non- income dimensions of poverty (UNDP, 2004; World 1 For the purposes of this article, the Caribbean region consists Bank, 2004). of the 15 member countries of CARICOM (the Caribbean From an economic perspective, a recent survey by Community) – Antigua and Barbuda, the Bahamas, Barbados, the CDB shows that countries of the region have been Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, experiencing economic recovery in the new millennium. Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago – as well In 2003, Caribbean countries improved their perform- as the Dominican Republic, a CARICOM observer. Except ance, registering, on average, a 2.8 per cent gross for Belize, Guyana and Suriname, all are island countries in domestic product (GDP) growth compared with the the archipelago of the Caribbean Sea. Caribbean countries 1.0 per cent recorded in 2002 (CDB, 2004). The recovery have a common colonial past but are heterogeneous in terms of size, race and ethnicity, language, religion and cultural was fuelled mainly by the services sector and, more heritage. CARICOM serves as a regional integration movement. specifically, by tourism. However, there were significant

© 2006 The Author(s) Journal compilation © 2007 Blackwell Publishing Ltd and the International Journal of Social Welfare. 150 Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA

Poverty and social welfare in the Caribbean

Table 1. Human and social development indicators for Caribbean countries.

Country Population Human development GDP per capita Population below Unemployment rate (thousands) index value (rank)a (US$, 2003) poverty line (%) (% of labour force)

Antigua and Barbuda 74 0.800 (55) 8,369 12 – Bahamas 312 0.815 (51) 16,691 – 10.8 Barbados 272 0.888 (29) 9,651 14 11.1 Belize 290 0.737 (99) 3,646 – 12.9 Dominica 72 0.743 (95) 3,023 33 – Grenada 102 0.745 (93) 3,353 32 – Guyana 762 0.719 (104) 911 35 – Haiti 8,200b 0.463 (153) 361c 65c – Jamaica 2,600 0.764 (79) 2,962 19 13.1 Montserrat 4 – 7,569 – – St. Kitts and Nevis 50 0.844 (39) 6,510 31 – St. Lucia 167 0.777 (71) 3,658 19 – St. Vincent and the Grenadines 112 0.751 (87) 2,819 – – Suriname 439 0.780 (67) 2,470 – – Trinidad and Tobago 1,300 0.801 (54) 7,836 21 10.6

Sources: All figures, except where indicated, are from CDB (2004), Economic survey of the Caribbean 2003–2004. a HDI data are from Human development indicators 2004 (see UNDP, 2004, Cultural liberty in today’s diverse world). b From Human development indicators 2004. c From Haiti: Country overview, July 2004 (World Bank Group, 2005). Notes: – indicates that data are not available or that aggregates cannot be calculated because of missing data. The human development index (HDI) is a summary composite index that measures a country’s averge achievements in three basic aspects of human development: longevity, knowledge and a ‘decent’ standard of living. Longevity is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary and tertiary school gross enrolment ratio; and standard of living by GDP per capita (purchasing power parity [PPP] US$). To put the data in perspective, Norway (0.956) has the highest HDI and Sierra Leone (0.273) the lowest among 177 countries, as reported by the United Nations Development Programme (UNDP, 2004). The GDP per capita data used in calculating the HDI are based on purchasing power parity (PPP) rates of exchange. disparities in GDP growth among countries. At the Geographic and demographic dimensions lower end of the spectrum, Guyana registered an economic downturn (−0.6%) while, at the higher end, Rural and urban poverty are separate phenomena. Antigua-Barbuda and Suriname doubled their growth Typically, in rural areas wages are low, unemployment rates in 2003 in comparison with the previous year is high and work tends to be seasonal. More than half (CDB, 2004). the Caribbean’s poor live in rural areas, where the social In recent years, sociologists and economists have infrastructure is weak and people have limited access developed a deeper understanding of the concept of to quality education and health services (Baker, 1997; development and have begun to accept that economic Bowen, 2004). growth is only one dimension of development. Accord- Conditions are more overcrowded in urban areas, where ingly, in addition to gross national income (GNI) and slums and squatter settlements have been ‘the breeding GDP, measures of poverty now include social and human grounds for the reproduction of poverty’ (Laguerre, development indicators. 1990: 21). The problem of squatting is widespread Table 1 summarises the most recent social and human throughout the region, indicating the inability of the development indicators for Caribbean countries and is formal housing sector to provide adequately for low- useful for cross-national comparisons. With a human income groups in need of shelter. By and large, as noted development index (HDI) value of 0.89, Barbados by the United Nations Economic Commission for Latin currently has the highest ranking (29th) in the Caribbean America and the Caribbean (ECLAC, 2000), squatter while Haiti (HDI value = 0.46) has the lowest (153rd). communities do not have the necessary infrastructure to The data suggest that, on the whole, Barbados, Antigua- support their population, and this often results in poor Barbuda and the Bahamas are doing very much better health conditions and other social ills. than other countries in the region in relation to social In Antigua and Barbuda, a recent study of 737 house- and human development. Over the years, these countries holds in six communities (not classified as squatter have been among those achieving ‘high’ human develop- settlements) highlighted links between poverty and ment, while countries like Belize, Dominica, Grenada, disease. The University of Health Sciences (2002) study Jamaica and Suriname have been in the ‘medium’ confirmed that low incomes in these communities were category. Plagued with political and economic problems, associated with inadequate standards of living that Haiti has consistently been in the ‘low’ category of create health- and life-threatening circumstances for the development (UNDP, 1998, 2002, 2004). affected households, especially children and women.

Bowen

Throughout the region, children and women are among (Chamberlain, 2000; World Bank Group, 2005). The the population groups that are affected disproportionately country’s per capita GDP was US$361 in 2003; 65 per by poverty, which tends to be prevalent in female-headed cent of the 8.2 million population live on less than families. US$1.00 a day and 54 per cent of the population do not Unemployment is a priority concern for women in have sustainable access to an improved water source2 rural areas (OneWorld, 2001). Kambon (2000) found (UNDP, 2004; World Bank Group, 2005). that the gendered dimensions of privilege and prejudice Bowie and Potocky (1998: 82–83) presented a causal have left significant proportions of Caribbean women model of complex factors that have contributed to Haiti’s poor, dispossessed and exploited. In addition, poverty extreme poverty. Factors depicted in the model were is a noteworthy feature of indigenous groups, such as political corruption (evidenced by the diversion of the Caribs in Dominica, the Amerindians in Guyana and public funds to private coffers and a private militia), a the Maroons and Amerindians in Suriname, whose access ‘brain drain’ (the mass emigration of educated profes- to basic social services has remained restricted for many sionals and skilled workers), business monopolies years (Baker, 1997; Morley, 1997; Thomas, 1988). (resulting in limited jobs and low wages), deforestation, Moreover, in several Caribbean countries, the economic decreased tourism and the economic embargo of the pressures experienced by the poor, coupled with high 1990s. Because of deforestation and consequent soil youth unemployment, have contributed to the growing erosion, only about 10 per cent of Haiti’s total rainfall goes problems of crime and drug use (World Bank, 1995). into deep percolation and groundwater; 90 per cent runs off or is evaporated, leaving the majority of the population with limited access to water (ECLAC, 2000). Causes and consequences of poverty Dominica, the Dominican Republic, St. Kitts and St. Race, class and gender hierarchies were a feature of Lucia are among the island countries where people’s colonial domination in the Caribbean (Deere, Antrobus, livelihoods have been adversely affected by natural Bolles, Melendez, Phillips, Rivera et al., 1990) and have disasters in recent years. According to one report, left a legacy of social and economic exclusion of the poor People’s livelihoods have been seriously affected (Wilson-Forsberg, Schonwalder & Robinson, 2001). through damage to agricultural produce, especially Furthermore, various complex, interrelated factors with regard to banana plantations and the sugar cane have contributed to poverty in the region. These include crop, through loss of habitat, power supply, infra- low or negative economic growth, inappropriate macro- structure and casualties, diseases and injuries suffered, economic policies, deficiencies in the labour market, all of which have long-term effects on many aspects low productivity and low wages in the informal sector of life (ECLAC, 2000: 15). and a lag in human resource development (Baker, 1997; ECLAC, 2000; Moser & Holland, 1997; Wilson-Forsberg et al., 2001). The informal sector refers to a field of Structural adjustment employment outside the private formal sector and the Research analysts have argued that many developing public sector, where poor people work as farmers and nations are in debt and poverty partly because of structural agricultural labourers in rural areas and as wage employees adjustment programmes mandated by multilateral develop- in urban areas. ment institutions in the 1980s and 1990s. Structural Poverty assessments undertaken in the Caribbean in adjustment programmes entail a package of economic the late 1990s revealed that the human capital base of and institutional measures aimed at creating macro- the poor, including the level of education, was low and, economic stabilisation and improving the economies of as a result, accessible employment was in low-skilled, struggling nations (Wilson-Forsberg et al., 2001). low-paying jobs. Also, the poor tend to be employed Structural adjustment policies have included reductions in elementary occupations and rural enterprises, in public employment and public expenditure, currency e.g. in small-scale farming, craftwork and a range of devaluation, the deregulation of foreign exchange and other informal activities (ECLAC, 2000). Moreover, trade controls, and privatisation of some state enterprises the poverty assessments found evidence of the inter- (Baker, 1997; Bloom, Mahal, King, Mugione, Henry- generational transfer of poverty, attributed largely to the Lee, Alleyne et al., 2001). At least five Caribbean typically low educational levels and skills in households. In cases where poverty was concentrated in identifiable communities, such as in Guyana and Jamaica, there was 2 Access to an improved water source refers to the percentage ‘evidence of stigmatisation, which results in employment of the population with reasonable access to an adequate discrimination’ (ECLAC, 2000: 10). amount of water from an improved source, such as a Haiti, a country with deep-seated political problems, household connection, public standpipe, borehole, protected well or spring and rainwater collection. Unimproved sources has the unenviable distinction of being the poorest and include vendors, tanker trucks and unprotected wells and most underdeveloped nation in the western hemisphere springs. (Source: WHO/UNICEF, 2000)

Poverty and social welfare in the Caribbean countries were forced to lay off public employees in the pensions), as well as to mitigate poverty (Baker, 1997; course of their adjustment efforts (Baker, 1997). ECLAC, n.d.). The state serves as an agent of social For many years, structural adjustment programmes welfare in countries like Jamaica, where much of the supported by the International Monetary Fund (IMF), public spending has been ‘pro-poor’ (Baker, 1997: 70). the World Bank3 and the United States Agency for However, throughout the region state, interventions International Development (USAID) were strongly through various allocations tend to maintain the poor at criticised for forcing developing countries to cut back the threshold of poverty (Laguerre, 1990). It may very social spending and to increase their dependence on the well be that politicians value some level of poverty in richer nations (Bowen, 2004). Moreover, various poverty their constituencies. After all, the poor, being powerless, assessments revealed that the structural adjustment serve as objects of attention during election campaigns policies in some Caribbean countries resulted in an and sometimes as recipients of political largesse (or increase in unemployment and a rise in the incidence charity) provided by ‘caring’ elected officials. and severity of poverty (Deere et al., 1990; ECLAC, 2000; Peake, 1998; Stiglitz, 2002). Often as a result of Social safety nets structural adjustment measures from which governments in some Caribbean countries (including Suriname, Social safety nets have been the mainstay of publicly Jamaica and the Dominican Republic) could not abstain, funded welfare programmes in the Caribbean. In Jamaica, poverty spread to include even people with jobs in the for example, long-standing safety-net programmes are formal economy (ECLAC, 2000). the national insurance scheme (NIS) and the food stamps, Nevertheless, while structural adjustment may have school feeding and student loan programmes (Baker, worsened living standards for many people, it is not the 1997; Bloom et al., 2001; IDB, 2000). These programmes root cause of poverty. What structural adjustment should use targeting mechanisms to provide social assistance. be faulted for is its failure to deliver on the promise that Targeting is the identification of those who are eligible poverty reduction gains would ‘trickle down’ naturally for assistance under a social programme; the goal is to to the populace (Wilson-Forsberg et al., 2001: 6). In any concentrate resources on those who need them most. event, a trickle-down strategy smacks of passivity by Those who are eligible receive cash or ‘in-kind’ welfare policy makers who are unable or unwilling to raise the transfers (Grosh, 1992). Baker (1997) has singled out productivity of the poor by means of direct, proactive the NIS for guaranteeing a full pension after relatively strategies. few years of contribution – only three years – compared with the much longer periods specified in other Caribbean countries (e.g. 20 years in Haiti). With regard to food Social welfare stamps, the Inter-American Development Bank (IDB) In English-speaking Caribbean countries4 the legacy of has identified Jamaica’s food stamps programme as an the Victorian Poor Law is evident in the social welfare example of a safety net that has become a permanent structure, which provides ‘welfare of the last resort’ for public programme, providing important income support destitute individuals and makes very little, if any, for the poor since 1984 (Grosh, 1992; IDB, 2000). provision for able-bodied people (Baker, 1997: 36). The Substantial financing of Jamaica’s social safety net Poor Law distinguished between the ‘deserving’ and the project has come from the IDB, the World Bank and ‘undeserving’ poor; the undeserving poor were regarded the European Union (EU). The IDB and the World Bank as having brought poverty on themselves by ‘indolence each approved a loan of US$40 million for the project and laziness’ (Baker, 1997: 106). (Weekly Gleaner, 2001) while the EU provided a grant Social welfare programmes in Caribbean countries of $6 million (1 Euro = US$0.87) (Weekly Gleaner, are designed to provide basic services, such as child 2001). Of course, the loans will have to be repaid welfare, family allowances and old age benefits (including eventually. Loan-supported social assistance programmes come at a cost which, as Narcisse (2000) intimates, may become a burden for future generations of Jamaicans. 3 The World Bank is not a bank in the common sense; it is With the exception of Barbados, no Caribbean country one of the United Nations’ specialised agencies and is made makes provision for unemployment insurance (Baker, up of 184 member countries. The World Bank is the name 1997). As Baker reported, social assistance programmes that has come to be used for the International Bank for tend to have high administrative costs but low benefits, Reconstruction and Development (IBRD) and the International Development Association (IDA). Together these with coverage in many cases restricted to a relatively organisations provide low-interest loans, interest-free credit small proportion of the poor. and grants to developing countries. In Trinidad and Tobago, many safety-net programmes 4 Thirteen of the Caribbean countries identified in this article are available to the poor, although the potential gain are English-speaking. The Dominican Republic is Spanish- speaking, Haiti’s official language is French and Suriname’s from these programmes is tempered (World Bank, is Dutch. 1995). The safety net suffers from the lack of an overall

Bowen policy framework and lead agency, high administrative of low-cost labour through tax breaks, tariff reductions costs and significant duplication and gaps in coverage. and other sorts of economic assistance (International The duplication in benefits gained by some people Trade Data System, 2004). While the CBI has encouraged provides them with a strong disincentive to leave the companies to set up factories that offer employment welfare system, while the absence of benefits for others to people in these developing countries, it has also leaves them destitute. The total expenditure on Trinidad encouraged the exploitation of labour. and Tobago’s safety-net programmes is approximately For its part, the UK government’s DFID has provided 4 per cent of GDP; however, because of the decline in support that has enabled the CDB to help countries GDP, the real value of these transfers has declined confront the economic and fiscal challenges of the (World Bank, 1995). region and support their efforts to improve economic Family remittances represent a kind of safety net for management. The CDB has pioneered poverty reduction Caribbean families and are currently one of the most action plans in nine countries of the region (DFID, concrete forms of linkages between emigrants and their 2004). Further, the Canadian International Development countries of origin (Baker, 1997; Bloom et al., 2001). Agency (CIDA) currently provides assistance to the In recent years, remittances to Barbados have been region through poverty reduction programmes with an estimated at US$84.15 million; to the Dominican emphasis on environmental management and social Republic, $1.93 billion; to Guyana, $120 million (a development (CIDA, n.d.). The agency has supported quarter of the national income); to Haiti, $800 million; development projects, particularly micro-financing to Jamaica, $1.2 billion; and to Trinidad and Tobago, projects, in no fewer than 17 Caribbean countries $50 million (Orozco, 2003). However, those who receive (CIDA, 1995). remittances tend not to be the extreme poor, but are Microfinance emerged as a growing industry to usually families falling into lower- and middle-class provide financial services to very poor people, and has ranks. While there is a tendency for funds received to been focusing primarily on providing micro-credit (small be directed to basic consumption needs, recipient house- loans of about US$50–$500) for micro-enterprises holds can eventually save up to 10 per cent of the (UNDP, 1999). The dual objectives pursued through remittances, resulting in a savings rate that would be microfinance are financial sustainability and poverty higher than national averages (Orozco, 2003). This would, reduction (Marr, 2003). Microfinance institutions can in part, relieve pressure on social spending and other become more effective if they do not limit themselves public welfare programmes in the home countries. to providing micro-credit and, rather, provide a range of Nevertheless, safety-net programmes are only a financial services, including credit, savings and insur- palliative or stopgap measure, serving to alleviate rather ance, to poor enterprises and households. In the view than reduce poverty. Other programmes are needed if of one analyst (Gulli, 1998), microfinance can play an poverty is to be reduced and eventually eliminated. important role in poverty reduction, but its benefits are not only poverty related, and it is only a partial tool for poverty reduction. Approaches to poverty reduction In northern Bangladesh, as Hasan (2003) found, To address poverty and attendant problems, many loans reach only the upper level of the poor and provide countries in the Caribbean have instituted macroeconomic narrow and limited financial services with rigid systems policy reforms and have been implementing social and procedures that in many ways do not address development programmes (Baker, 1997; Bowen, 2004). the needs of the poorest. The situation is similar in the Strategies have concentrated primarily on creating jobs Caribbean, where Lashley (2004) has highlighted the and reducing unemployment, as well as instituting public exclusion of the poor and the scaling-up of micro- assistance programmes. As Greene (1994) reported, finance to reach ‘bankable’ clients. Caribbean countries have sought to reduce poverty also One analyst, Ana Marr (2003), was clearly critical through interventions in health and education. The of the performance of the microfinance industry. She reduction of fertility levels in the region has improved asserted that microfinance not only has failed to the capacity of countries to alleviate poverty and con- solve the original problems of information asymmetries centrate on building a foundation for future sustainable between borrowers and lenders, but also, in its pursuit development (Mills, 1998). of financial sustainability, is destroying the very Over the years, the US government has funded foundations of these schemes by disrupting the social programmes and provided various forms of aid to fabric of communities, creating more poverty and Caribbean countries. For example, the Caribbean Basin excluding the poorest and most vulnerable from any Initiative (CBI) – under the Trade and Development Act given group. Nevertheless, within the limitations of of 2000 – was designed to promote economic develop- microfinance as a tool for poverty reduction, actions can ment throughout the region (including Central America) be taken on different levels to expand the outreach and by encouraging American companies to take advantage impact of microfinance programmes.

Poverty and social welfare in the Caribbean

Meanwhile, multilateral financial and development Special training programmes, especially for the youth, institutions, such as the World Bank and the UNDP, have been launched in several countries. These include have implemented or supported poverty reduction programmes offered by the Youth Training and Employ- programmes in the region (see, e.g., World Bank Group, ment Partnership in Trinidad and Tobago and the 2005). Since the end of 2003, Dominica, for example, Agency for Rural Transformation in Grenada (ECLAC, has been under a three-year IMF poverty reduction and 2000). The impact of these programmes on poverty is growth facility programme that aims to strengthen the yet to be assessed. If they help to increase employment country’s fiscal position and carry out a structural reform and reduce the problems of crime and drug use, they programme to re-ignite economic growth and reduce should be regarded as a signal success. poverty (CDB, 2004). Too often, though, these external aid programmes Trickle Up are fragmented and do not include explicit poverty reduction targets. Consequently, they have little impact Caribbean states have benefited from the Trickle Up on the living conditions and earning prospects of poor programme whose mission is to help low-income people people. Besides, economic conditionalities imposed by take steps out of poverty by providing them with seed aid agencies have sometimes exacerbated poverty-related capital, business training and relevant support services problems when beneficiary governments institute austerity to launch or expand a micro-enterprise. In 2003, the measures that hurt their country’s poor. programme funded 357 micro-enterprises in Haiti and supported small businesses in Antigua, Barbados, Belize, Dominica, the Dominican Republic, Grenada, Guyana, Social funds Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Guyana and Jamaica are among the countries in the Vincent, Suriname and Trinidad and Tobago (Trickle Caribbean that have established World Bank-sponsored Up, 2004). Over the years, some Caribbean governments social funds which serve as instruments for creating projects have used employment creation strategies as a ‘political that reach poor constituencies using community-based re-election gimmick’, providing low-skilled jobs that strategies (Bowen, 2004; Narayan & Ebbe, 1997). The ‘keep workers in the poverty trap’ (Watson, 1994: 230). World Bank reports that Belize, Haiti and St. Lucia have Despite their limited viability, small business ventures also implemented social fund projects.5 In Guyana, the provide a good alternative to the short-term, ‘make-work’ Social Impact Amelioration Programme (SIMAP), as projects created during election campaign periods and the social fund was named, achieved some success in may contribute to poverty reduction. implementing sub-projects that provided physical infrastructure for water and sewage systems, marketplaces, Civil society participation schools and health clinics, as well as nutrition supplements, skills training and cash supplements for pensioners The initial efforts to mitigate social and economic hard- (Baker, 1997). ships in the Caribbean were directed by private institu- In keeping with the national policy towards poverty tions, especially the churches (Thomas, 1988). The eradication, the Jamaica Social Investment Fund (JSIF) churches also created educational institutions, which has been established as a mechanism to provide funding were ‘one means to liberation and progress’ (Narcisse, for small-scale, community-based projects (sub-projects) 2000: 205). Throughout the region, Nongovernmental in targeted areas. JSIF offers options and important Organisations (NGOs) and community-based organisa- information to community groups so that they can make tions have also been involved in anti-poverty initiatives, an informed choice among different alternatives, thus providing a range of social services to local communities increasing the likelihood that the funded project will (Baker, 1997; Bowen, 2004; Narcisse, 2000). In Trinidad meet a local need (Bowen, 2003; Narayan & Ebbe, 1997). and Tobago, NGOs have been playing an increasingly Social funds are regarded as innovative instruments that important role in poverty alleviation, although, as the have improved social and economic infrastructure, as World Bank (1995) observed, there are still deficien- well as social services, and have strengthened local cies in effective programme implementation by many community organisations. Yet, the application and admini- groups. strative processes required may prevent social funds In Jamaica’s social fund programme, community from reaching the poorest of the poor in under-served participation is one of the criteria for funding a project rural communities. Furthermore, social funds are no proposal. In particular, local communities are required panacea and should not be treated as a substitute for to provide evidence that they are interested in and national social security systems. committed to projects by making monetary and labour contributions or by initiating organisational tasks prior 5 Details of projects are currently available in the World Bank’s to the implementation of projects (Bowen, 2003; Narayan social funds database (World Bank n.d.) & Ebbe, 1997). As Bowen (2004) concluded, stakeholder

Bowen participation can effectively build community capacity programme should be efficient and cost-effective so it to address issues and solve problems. can adequately meet the needs of poor people who are A major poverty report (UNDP, 2000) underscored unable to make it on their own. the importance of community participation in programmes to reduce poverty. As noted in the report, community- Economic growth based organisations are effective in directly represent- ing the poor, especially by articulating people’s needs There is substantial evidence that the potential for and priorities. However, they have difficulty wielding growth, and hence the potential for poverty reduction, influence outside their localities until they build broader can best be realised in well-functioning private market organisations or alliances, such as coalitions and economies that are open to trade and investment partnerships. (Bigsten & Levin, 2001; Klein, 2003; Orozco, 2003). Centralised, ‘supply-driven’ approaches to develop- Sustained economic growth is clearly crucial to long- ment have obvious limitations. There is increasing term poverty reduction. Growth almost always increases evidence that ‘demand-driven’ approaches that involve employment; it generates jobs, boosts productivity and local communities in formulating their own plans and provides real wages for poor people who form the bulk priorities have the best chance of long-term success. of unskilled labour. Recent evidence suggests that, on The full involvement of local community stakeholders average, countries can expect poverty to fall by between in the planning, design and implementation of small- 1 and 2 per cent for each 1 per cent growth in per capita scale projects is an important element for achieving income (Morley, 1997). sustainable improvement in poor people’s welfare. Although economic growth is only one dimension of development, it is, nevertheless, an important dimension. As such, governments should promote export-led The way forward economic growth and maintain macroeconomic stability. Despite the considerable improvements shown by human A successful growth strategy may require considerable development indicators, Caribbean countries continue diversification of the agriculture, manufacturing and to face the challenges of poverty and concomitant social tourism industries on which Caribbean economies problems. These problems have been intractable, defying depend (Bowen, 2005). Developing new products and quick fixes or easy solutions. securing new export markets should be among the Given the varied social and economic conditions in priorities. For example, eco-tourism appears to be a the region, it is clear that no single strategy or viable option for small, remote island countries. With programme is applicable to all Caribbean countries. regard to agriculture, the objective should be to reduce Political stability will certainly improve the chances for dependence on single commodities and limited markets. social programmes to be designed, implemented and Remittances to Caribbean countries have been sustained. In the case of Haiti, then, it may be necessary substantial and can be used to boost social welfare pro- for development agencies to focus first on the political grammes. National governments should pursue policies situation and insist on a system of democratic that include a strategy linking remittances and immi- governance. Political stability is a necessary condition grant capital resources with economic growth and for any meaningful and lasting solution to poverty and development. corruption in that country. To promote entrepreneurship and the development of In the search for a solution to poverty, each country small businesses, microfinance institutions should provide should develop a comprehensive action plan with explicit more comprehensive services and improve the provision targets, adequate budgets and effective organisations. The of credit and savings services. It is understandable that national poverty reduction agenda should include the the formal financial services sector has shown little pursuit of social development goals together with economic interest in financing what it considers high-risk loans growth. It should also include the provision of increased for small projects with high administrative costs, usually access to assets, meaningful employment opportunities operated by people with little or no business experience. and improved social safety nets for the poor. Still, micro-financing services by commercial banks, Programmes targeted at the poor have a vital place credit cooperatives and similar institutions can be in a nation’s overall anti-poverty strategy, notwithstand- provided on a sustainable and profitable basis to assist ing the old adage that ‘programmes for poor people small-scale entrepreneurs, many of whom are women. make poor programmes’ (presumably because such Investing in self-employment strategies such as micro- programmes may stigmatise and demean the poor). As enterprises provides opportunities for earnings that give a targeted programme, safety nets facilitate timely workers ‘a chance to move beyond a poverty wage’ intervention during critical periods. Safety nets provide (Rocha, 1995: 337). Improved business regulations, tax vital protection of the poor and should therefore be regimes and licensing requirements by governments can a permanent feature of public policy. A safety-net go a long way in supporting micro-enterprise development.

Poverty and social welfare in the Caribbean

programme is exemplary and could provide a model for Social development other Caribbean countries. Social development is ‘a process of planned social In conclusion, strategies should involve a variety of change designed to promote the well-being of the stakeholders, engaging them in comprehensively broad population as a whole in conjunction with a dynamic and versatile programmes to reduce poverty, develop process of economic development’ (Midgley, 1995: 25). human capital and improve social wellbeing. Strategies It is a people-oriented approach to social change and should reflect a balanced approach to development – an improved human well-being. Approaches to social approach that harmonises social policies with economic development should be rooted in policies that are goals; addresses diverse community needs and helps pro-poor and processes that are democratic, socially people meet those social, economic, educational and inclusive and engaging. health needs that are fundamental to the maintenance Social development policies and programmes require of society. Lastly, strategies should take into account the a strong commitment from national governments, the aspirations and values of people in the context of their private sector, NGOs and community-based organisa- lived experiences. tions and the international community. Programmes should foster participatory processes, with civil society References participating in ongoing political debates and in managing development projects. In particular, NGOs Ahmed B (2001). 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