Understanding Poverty in Trinidad and Tobago: A Review of the Literature

By Innette Cambridge Ph.D. Co-ordinator Social Policy Programme Department of Behavioural Sciences Faculty of Social Sciences University of the West Indies St. Augustine Trinidad and Tobago

Juliana S. Foster M.Sc. Researcher Social Policy Programme Department of Behavioural Sciences Faculty of Social Sciences University of the West Indies St. Augustine Trinidad and Tobago

And Kim Mallalieu Ph.D. Head Department of Electrical and Computer Engineering Faculty of Engineering The University of the West Indies St. Augustine Trinidad and Tobago

1 Table of Contents

EXECUTIVE SUMMARY ...... 4 1. INTRODUCTION ...... 5 1.1. Aims and Purpose of Paper ...... 6 1.2. Acronyms ...... 7 2. CONCEPTUALIZING POVERTY AND ITS RELEVANCE TO THE CARIBBEAN CONTEXT ...... 9 2.1. Types of Poverty ...... 9 2.2. Causes of Poverty ...... 11 2.3. Characteristics of Poverty in the Caribbean ...... 12 2.4. Gender and Poverty...... 13 2.5. Rural / Urban Poor ...... 13 2.6. Employed poor ...... 13 2.7. C. Y. Thomas’s typology of the Poor in the Caribbean ...... 13 3. HISTORICAL BACKGROUND: POVERTY IN TRINIDAD AND TOBAGO ...... 16 3.1. Capturing Poverty in Trinidad and Tobago ...... 18 3.2. Poverty in the Caricom Context ...... 20 4. ESTIMATES OF POVERTY IN TRINIDAD AND TOBAGO ...... 24 4.1. Household Budgetary Survey (HBS) ...... 24 4.2. Poverty and Inequality in Trinidad and Tobago ...... 25 4.3. Poverty Profiles ...... 26 4.4. Inequality and Ethnicity in Trinidad and Tobago ...... 30 4.5. Socio-economic Factors and Poverty...... 34 5. MEASUREMENT OF POVERTY...... 38 5.1. Indicators...... 38 6. PROXIES OF POVERTY MEASUREMENT - INDICATORS USED TO MEASURE POVERTY IN TRINIDAD AND TOBAGO ...... 42 6.1. Constructing Poverty Measures for T&T Surveys...... 43 7. SOCIO-CULTURAL COMPONENTS OF POVERTY ...... 49 7.1. Social Capital ...... 50

2 7.2. Cultural capital ...... 51 7.3. Psychological Capital...... 51 7.4. Political Power ...... 52 8. SOCIAL CONDITIONS IN POOR COMMUNITIES...... 53 8.1. Health ...... 53 8.2. Housing ...... 53 8.3. Education and Training ...... 54 8.4. Information ...... 54 8.5. Migration...... 54 8.6. Challenges ...... 55 8.7. Coping and Resiliency in Poor Communities ...... 55 8.8. Self Perceptions of the Poor ...... 56 9. THE WAY FORWARD ...... 59 9.1. The New Economy ...... 59 9.2. Poverty and Vision 20/20...... 62 10. CONCLUSION ...... 64 11. REFERENCES ...... 66 APPENDIX 1. OUTLINE OF SOCIAL SUPPORT SERVICES PROVIDED IN TRINIDAD AND TOBAGO ...... 72 APPENDIX 2. MAPS OF TRINIDAD AND TOBAGO SHOWING COUNTIES AND PARISHES ...... 76

3 EXECUTIVE SUMMARY

This background paper on poverty was requested by the Diálogo Regional Sobre la Sociedad de la Información (The Regional Dialogue on the Information Society) - DIRSI in order to inform some of their planned studies in Trinidad and Tobago. It provides documentation on poverty and what is required in order to understand the social problem of poverty. Key sources of literature on poverty that relate to Trinidad and Tobago are identified for the reader.

Concepts of poverty are defined for the reader and a historical picture of poverty in Trinidad and Tobago is provided via references to international and local poverty assessments and studies. Methods used for measuring poverty including the use of proxies for identifying poor communities defined. The socio-cultural components of poverty are briefly outlined and the study closes with comments on the social safety net and recent developments for reducing poverty in keeping with the government’s policy of Vision 2020.

This guide contains many references and direct quotations. This style, though not a conventional one, has been deliberately used so that the reader can easily access the source document and select references as may be necessary. In this way the working paper can achieve its original goal of assisting the uninitiated to the study of poverty to navigate the existing maze of literature on poverty and the Caribbean from a social science perspective.

4 1. INTRODUCTION

The Republic of Trinidad and Tobago lies in the southern Caribbean. It consists of two islands, Trinidad and Tobago. Trinidad, the larger island is multiethnic and well known for its cultural diversity and natural resources. Tobago, the smaller island is culturally more homogeneous in nature and annually attracts tourists to its picturesque beaches. The total land area is 5128 sq. km. The capital city is Port-of-Spain. The climate is tropical with a rainy season from June to December.

The country became independent from Britain in 1962 and became a republic with a president as the head of state in 1976. It is governed by a bicameral parliamentary system consisting of the Senate and the House of Representatives. Tobago has internal self- government via the unicameral Tobago House of Assembly. Previously Trinidad was administered via eight counties and Tobago via six parishes (See appendix 2). Currently local government is administered via nine regional corporations, 2 city corporations, 3 borough corporations and the ward of Tobago. The regional corporations are Couva/Tabaquite/Talparo, Diego Martin, Mayaro/Rio Claro, Penal/Debe, Princes own, Sangre Grande, San Juan /Laventille, Siparia, Tunapuna/Piarco. The city corporations are Port-of-Spain and San Fernando and the borough corporations are Arima, Chaguanas and Point Fortin. Both counties and regional corporations are referred to in poverty studies in Trinidad and Tobago.

This English speaking country is characterized by an oil-based economy and lately natural gas. With a population of 1.3 million and a per capita income of US$ 14.790 in 2006, this country is regarded by the United Nations as a high income developing country. Among the many challenges of development faced by this nation is the problem of poverty which affects 16,7% of the population’s households. While this figure is the lowest experienced in recent times, it is worth noting that the history of increased poverty in times of economic downturn has made poverty in Trinidad and Tobago a phenomenon in need of continuous assessment.

5 Graph 1. Map of Trinidad and Tobago.

1.1. Aims and Purpose of Paper This paper identifies and reviews examples of various poverty studies conducted in the country to date. It is designed to assist the novice to poverty studies such as undergraduate level social scientists and researchers outside of the social sciences navigate the maze of literature on poverty for the Caribbean and for Trinidad and Tobago in particular. Naturally an effort of this nature would not be exhaustive and there would remain some references that have not been mentioned or acknowledged in detail. This reflects the limitations of a study of this nature. We have addressed the main areas of concern which contribute to understanding poverty within the context. Given these constraints the paper attempts the following:

 To provide a context for studies on poverty in Trinidad and Tobago via a review of literature and documentation on poverty.  To illustrate a picture of poverty in Trinidad and Tobago.

6 This paper provides background information on poverty as a concept and estimates of poverty in Trinidad and Tobago and the Caribbean (to a lesser extent). Included are definitions of poverty, explanations on how poverty is measured, as well as poverty as a social issue on the agenda of national, regional and international organizations. As much as is possible the paper facilitates an understanding of the concept in its local socio economic setting and in the historical and contemporary context. Discussion of the poverty data gives insight into the different causes of poverty as well as the various groups affected by poverty. Poverty in the Caribbean is presented here using data from different countries and various poverty assessments.

Additionally, major events that may impact on poverty are also discussed. These include Vision 2020 of the Government of Trinidad and Tobago and the social service provisions available in Trinidad and Tobago. The paper has more direct quotations than would usually be found in articles, however, their inclusion and retention was a conscious choice as this article primarily serves as background reading to assist the reader in sourcing further information on the topics outlined therein. It helps to support more empirically evidenced based research and interventions with low income populations in Trinidad and Tobago.

1.2. Acronyms CARICOM: Caribbean Community and Common Market CBOs: Community Based Organisations CDB: Caribbean Development Bank CPA: Country Poverty Assessment CSME: Caribbean Single Market and Economy HBS: Household Budgetary Survey IFIs: International Financial Institutions IMF: International Monetary Fund MOSD: Ministry of Social Development MDGs: Millennium Development Goals NDS: National Development Strategy

7 NGOs: Non-governmental Organisations OECS: Organization of Eastern Caribbean States PRSP: Poverty Reduction Strategy Paper SAP: Structural Adjustment Programme SIDS: Small Island Developing States SLC: Survey of Living Conditions UND: United Nations Development Programme WB: World Bank

8 2. CONCEPTUALIZING POVERTY AND ITS RELEVANCE TO THE CARIBBEAN CONTEXT

The Caribbean shares with Latin America a historical colonial legacy of a socially stratified society. Much of the poverty experienced in this region is rooted in the social system where ancestors of today’s poor were African slaves (16th-19th centuries) or East Indian indentured servants (19th-20th centuries). Trinidad and Tobago has some characteristics of poverty with the rest of the region but is unique by its heavy dependence on the production and export of petroleum since the early part of the 20th century and gas in more recent times.

Poverty may be regarded as both a sociological concept, as well as a social issue affecting the lives of millions. In this regard, poverty is therefore of concern to the international community, though appearing to be mainly a national issue. The problem of poverty also attracts many players; all contributing to designing measures to eliminate, alleviate or eradicate it all together. In this section we examine definitions for types of poverty, characteristics of poverty in the Caribbean, categories of the poor and causes of poverty.

2.1. Types of Poverty It has become apparent that in order to study poverty, one must first be clear on the definition of the concept since it has proven to be multi dimensional and multi faceted. Definitions of poverty assist in categorising and classifying findings, and therefore allowing for adequate analyses of causes. Definitions used are as follows:

Absolute poverty: This conceptualisation of poverty focuses on the attainment of socially acceptable levels of food and non food items. It occurs in the absence of the attainment of the “…nutritional requirements below which the bodily health can be threatened”. The non-food component measures some “…minimum provision deemed to be socially acceptable”1.

1 Kairi 2007, p.161.

9 Chronic Poverty: “…this type of poverty is distinguished by its extended duration; five years or more. It refers to “…people who remain poor for much of their life course, and who may pass on their poverty to subsequent generations”2 (intergenerational transmission of poverty).

Extreme Poverty: Exists when poverty is prolonged “…and when it severely compromises people’s chances of regaining their rights and reassuring their responsibilities in the foreseeable future”3.

Indigence: Cases where a household or individual’s resources or group’s available resources were insufficient to ensure access to the means to consume enough to maintain bodily health4.

Relative poverty: “The estimation of poverty on the basis of comparison with what some other group or individual possesses”5. It is also used as an indicator of exclusion of normal activities of the average citizen in a country.

Capabilities and entitlements: “…poverty is deprivation in terms of a range of capabilities in addition to income- education, health, human and civil rights…”

Vulnerability: The poor are “…likely to experience highly stressful declines” in “their level of income, consumption or capabilities”. Vulnerability “can be seen as the risk that a household will be suddenly (but perhaps also gradually) reach a position with which it is unable to cope, leading to catastrophe (hunger, starvation, family breakdown, destruction or death)6.

2 Hulme. 3 Hulme. 4 Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:65. 5 Kairi 2007:168. 6 David Hulme, Forthcoming – World Development Report (2003).

10 These definitions for conceptualizing poverty are not unique to Trinidad and Tobago nor even to the Caribbean. Many can be found in internationally recognized literature by social scientists as Peter Townsend and Amartya Sen. Their selection here is important to recognize the common basis for much analysis on poverty irrespective of the geographical context.

2.2. Causes of Poverty For the Caribbean, Eleanor Wint and Yves Renard1 note significant progress in all areas of social development, however, in recent times poverty has taken new forms and dimensions. Significant developments include:

 Growth in urban poverty.  New forms of rural poverty.  Impact of HIV/AIDS, particularly on the 20-34 age group.  Rapid ageing of the population.  Poverty associated with new forms of international migration for example political and economic refugees and deportees.  Sudden and unpredictable effect of natural hazards7.

Apart from the historical causes, the following factors contribute to the persistence and spread of poverty in the Caribbean, as well as increased vulnerability in the region8. These are as follows:

 Growing economic disparities within countries and communities.  The reduced capacity of the state.  Changes in personal consumption patterns.  The emergence of new health issues, especially the HIV/AIDS epidemic.  Increased vulnerability of social institutions such as church and family.

7 In Trinidad there are relatively few hurricanes, however Tobago has been devastated by these natural disasters. Trinidad experiences severe foding in the rainy season. 8 Wint and Renard, (in Melville and Wint, 2007).

11  The growing importance of personal and community security and safety issues.  The long term impact of the oil crisis from the 1980’s.  The impact of structural adjustment from the 1980’s.

Henry et al. report that “the causes of poverty in Trinidad and Tobago extend beyond access to adequate income. In certain districts, shortage of such public goods as potable water, transportation, and youth access to training and education diminish opportunities and quality of life”9. “In other environments, informal but effective extra legal groups influence access, creating a subculture that undermines commitment to values consistent with the peaceful development of society”10.

2.3. Characteristics of Poverty in the Caribbean Caribbean countries, because of their plantation, colonial history and small island nature have some visible patterns of poverty. In 1996, the following characteristics of poverty in the region were noted. Approximately 25% of the total Caribbean population was poor. Income distribution was skewed. The poor included the elderly, children, the disabled, small-scale farmers, unskilled workers, indigenous populations, and in some countries, female- headed households and the underemployed or unemployed, many of whom are school leavers who have few skills with which to enter the labor market (WB 1996: vii- viii).

Common characteristics among the poor are:

 Large family size.  Low levels of education.  Overcrowded housing.  Limited access to water and adequate sanitization facilities (WB 1996).

9 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006: 89. 10 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006: 89.

12 2.4. Gender and Poverty Data from studies across the region also showed that women are largely represented among the poor. Causes of this manifestation include inequality in land and property ownership, labour market discrimination, and fertility issues such as teenage pregnancy.

On the other hand it is noteworthy to observe that men are also well represented among the poor, in particular young males. Males in the Caribbean tend to stand out since they appear quite vulnerable being affected by under representation in school achievement, lack of male role models and high rates of unemployment. (WB 1996: vii-viii).

2.5. Rural / Urban Poor The World Bank report stated that most of the poor in the region live in rural areas. However, it also noted that “…with the rising rates of urbanization and high vulnerability of the urban poor to economic and social problems, urban poverty has become a major concern” (WB 1996).

2.6. Employed poor The majority of the employed poor work in the informal sector. In rural areas, these are usually small-scale farmers and agricultural labourers. The employed poor also include employees in urban areas (WB 1996). The latter group is also called the working poor, which is further described below by Thomas.

2.7. C. Y. Thomas’s typology of the Poor in the Caribbean Poverty in the Caribbean varies on a country basis. However, a study of the phenomena reveals that similarities have evolved giving rise to definite categories of poor. C. Y. Thomas represents these categories in a typology of poverty. He argues that each category “has its own dynamics which requires its distinct mode of intervention”11. The categories are as follows:

11 C. Y. Thomas 1995 in Girvan 1997:37.

13 Hard core or Systemic Poor: Include “…those who are born poor and remain poor over their lifetime, mainly because of the manner of their insertion into the system of production and asset ownership”12. This group reflects the historically underdeveloped characteristics of Caribbean societies.

Newly Poor or Structurally Adjusted Poor: “…refers to persons who while not being born poor, have become poor largely because of the various stabilization and adjustment programmes in operation”13. Examples of persons falling in this category include public servants, teachers, and members of the security services. Before the SAPs, “these groups formed the traditional middle class of the region and had more or less secure, guaranteed employment from the colonial and immediate postcolonial states”14.

Transient Poor: “members in this group may vary in number, form and content, from year to year and season to season, reflecting in general the ups and downs of the economy and the definite seasonality of production and sales which still persist especially in agriculture and tourism”15.

Additional Categories include the indigenous populations of the region who live in poverty. In Guyana for example, “the Amerindian population constitutes a definite social category, since as many as 87 per cent of the Amerindian population were found to be below the poverty line in the 1992 survey”16.

Employed Poor: “…those persons in rural areas and towns who live in households where at least one person is working, but the wage obtained is below the household’s subsistence requirements”17. It is therefore apparent that poverty and unemployment don’t always go hand in hand as is commonly assumed.

12 C. Y. Thomas 1995 in Girvan 1997:37. 13 C. Y. Thomas 1995 in Girvan 1997:37. 14 C. Y. Thomas 1995 in Girvan 1997:37. 15 C. Y. Thomas 1995 in Girvan 1997:37. 16 C. Y. Thomas 1995 in Girvan 1997:37. 17 C. Y. Thomas 1995 in Girvan 1997:37.

14 Socioeconomic conditions: “…drop in real values of social insurance and social assistance and changes in family structures have contributed to declining living conditions”18. The economic situation in each country directly impacts the living conditions of the population. The could be caused by changes in the international economy e.g. the decline in the price of bananas or oil and gas.

Another typology of the poor has been identified by Cambridge (1997). The three broad categories of the poor identified in this study are the traditional poor, the poverty line poor and the new poor. The traditional poor correspond to the systemic poor of Thomas and include persons such as ex-prisoners and adolescent girls who enter child bearing and raising in an unsupported environment. The definition of the New Poor also correspond to Thomas’s typology in referring to the groups of persons who were use to a satisfactory level of living prior to economic downturn of the 1980’s and the reductions in state expenditure by reducing the civil service expenditure. The poverty line poor consists of those households whose income would place the; below the poverty line, however basic needs of the household would be met. These households frequently did not have pipe borne water or electricity; nevertheless there would be fresh water from tanks or home made rain water systems, and kerosene lamps. Residents in these households did not perceive themselves to be poor and there was an abundance of food that could be shared with visitors and neighbours.

These definitions of the concepts and types or poverty serve as the basis for more in depth understanding of poverty within the Caribbean context. While these typologies reflect uncertainties in the region’s economic development associated with structural adjustment; they are likely to persist in the current era. Conditions such as the “increases in competition stemming from global economic changes in trade and capital markets, the erosion of preferential market access, the vulnerability of the tourist industry and competition from other destinations, decline in official capital flows from bilateral sources all present a particularly difficult challenge for the Caribbean”19.

18 Judy L. Baker, 1996:vii, WB. 19 Judy L. Baker, 1996:vii, WB.

15 3. HISTORICAL BACKGROUND: POVERTY IN TRINIDAD AND TOBAGO

The nature of poverty in Trinidad and Tobago has been captured and illustrated through various country studies on poverty over the years. Studies revealed that Trinidad is a middle income Caribbean country with relatively high levels of poverty. The economy has been characterized by its heavy dependence on the production and export of petroleum and gas since the early 1960s.

Stagnation and or reversals in the country’s social development levels have largely correlated with declining economic performance. “As international oil prices declined during the 1980s, the economy experienced sharp contraction with an average annual decline of 4,5 percent between 1982-1989”20. This crisis was associated with:

 A drop in per capita GNP from US $6.600 per annum (1982) to US $3.160 (1989).  A sharp rise in unemployment.  A gradual decline in the quality of services.  A steady flow of emigration to North America21.

The crisis was also manifested in poverty trends. Data indicates an increase in the levels of poverty during this period.

 The 1975 study revealed the earliest estimates of poverty. At the time of this study, 25% of the population was classified as poor. This measure did not include housing22.  Estimates from the 1981 and 1988 study put forward an increase in absolute poverty from 3,5 percent to 14,8 percent of households23.

20 Judy L. Baker / World Bank 1995:1. 21 Judy L. Baker / World Bank 1995:1. 22 Ralph Henry and Juliet Melville, 1989, “Poverty Revisited”. 23 Teekens, R. (1990) “Poverty data from two Family Budget Surveys in Trinidad and Tobago, 1989. Analysis was based on ‘household expenditure’ Judy L Baker / World Bank 1995:1.

16  Poverty in the 1980s was characteristic of a new phenomenon: the ‘New Poor’. The traditional poor then which included the elderly, persons with disabilities, and female-headed households, were joined by those who became unemployed during the mid-eighties24.  The distribution of income widened slightly during this period with the Gini coefficient increasing from .45 in 1981 to .47 in 198825.  Using the PPP, this measure showed that during 1990 to 2001, “approximately 12,4 percent of the population earned less than US$1 per day and 39 percent earned less than US $2 per day”26.

Over the years, poverty in Trinidad and Tobago has therefore fluctuated. The Poverty Head Count 1989 (Henry et al), 18.5%; World Bank 1995, 21%; IDB, 24%27. The 1989 study focused on households using HBS data, while the World Bank reported on individuals and was based on the SLC which depends on recall of expenditure. The IDB study was also based on a HBS”28.

These studies were facilitated by the availability of HBS data since Trinidad undertakes at least every ten years, a Household Budgetary Survey, which is preparatory for updating the cost of living index. The data generated from an HBS is “easily adapted for the purposes of poverty assessment and monitoring living conditions”29.

With the economy doing better in the new millennium, Trinidad and Tobago has registered decreases in poverty. A Survey of Living conditions estimating the indigence line at TT$ 8,35 per day or TT$ 255 per month, for an adult in 2005 and the poverty line was at TT$ 665 per month, in 2005. Using these demarcations, it was found that 16,5 percent of the population’s households were poor in 2005, compared to 24 percent in

24 Judy L. Baker / World Bank 1995:1. 25 Gini coefficient increases as the distribution becomes more skewed. Henry R. Melville, J, 1989, and Teekens 1989 in Judy L. Baker / World Bank 1995:1. 26 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:17. 27 Kairi 2005, (Source- Figure 1.1: Poverty Levels 1988 to 2004). 28 Kairi 2005:6. 29 Kairi 2005:6.

17 1997/98. Additionally, 1,2 percent of the population was deemed indigent, compared to 8,3 percent in 1997/98. The poverty gap was estimated at 4,63 and the severity index at 1,9630.

Social Development indicators for Trinidad and Tobago are more or less positive. Life expectancy at birth in 2004 stood at 69,8 (UNDP, 2006, 284). The Human Development Index for the country has been looking more and more favourable with time.

Table 1. HDI Trends for Trinidad and Tobago. 1975 0,751 1980 0,783 1985 0,790 1990 0,793 1995 0,791 2000 0,801 2004 0,809 Source: BRD UNDP 2006 p. 289.

3.1. Capturing Poverty in Trinidad and Tobago Over the past 30 or more years, poverty in Trinidad and Tobago has been assessed and analyzed through data gathered from various country surveys. The three major studies of poverty conducted are the Household Budgetary Surveys (HBS) (1975, 1981/2, 1988 and 1997/98) and the Survey of Living Conditions (SLC) of 1992. The most recent data has been presented from the 2005 Survey of Living Conditions.

3.1.1. Household Budgetary Survey (HBS) Household Budgetary Surveys were conducted in 1975, 1981/82 and 1988 by the Central Statistical Office. Data from these surveys has been used mainly for comparative purposes and not dealt with in depth, in this paper.

30 Kairi 2005:156.

18 3.1.2. Survey of Living Conditions (SLC) 1992 The 1992 SLC measured living standards among the population. It incorporated information from approximately 1.450 households (6.200 individuals). The survey included data on “household consumption, employment, income, expenditure, education and health”31.

The 1992 SLC concluded that:

“Nationally, 21 percent of the population, or roughly 265.000 people fall below the TT$ 2.420 poverty line. Eleven percent of the population would be classified as extremely poor, with consumption levels below the minimum amount required to purchase the nutritionally balanced low-cost food basket. The shortfall in per capita expenditures from the poverty line (poverty gap) is around 7 percent, and the severity of poverty as measured by the P2 measure is 3,7 percent” (WB 1996: 4).

3.1.3. 1997/1998 HBS Data from this study found 24% of the population to be living in poverty. The indigence level was found to be 8,3 percent32.

3.1.4. 2005 Survey of Living Conditions This survey found that 16.7 percent of the population’s households was poor and 1,2 percent was indigent.

Table 2. Level of Poverty, Indigence and Vulnerability Lines. Level of Poverty and vulnerability lines TT $ Indigence Line (Annual in local currency) 3.060 Poverty Line (Annual in local currency) 7.980 Vulnerability line (Annual in local currency) 9.975 Source: Kairi 200533

31 Judy L. Baker / World Bank 1995:2. 32 Kairi 2005:xvi. 33 Kairi 2005:xvii, Table 1: Level of Poverty, Indigence and Vulnerability Lines.

19

These sources note fluctuations in the poverty levels for the period during which there have been regular assessments. The figures of the new millennium are some of the lowest for recent years.

3.2. Poverty in the Caricom34 Context Trinidad and Tobago is not alone in dealing with the problem of poverty. A look at the main social indicators of the various countries of the region, reveal wide variations pointing to the fact that “acute problems of social development are manifest in all”35. Table 5 below provides insight into poverty in the Caribbean. In 1997, Girvan used the example of Barbados and Trinidad and Tobago, to point to the existing trend of high indices of human development in both countries alongside “relatively high rates of open unemployment at 20 and 22 percent respectively”36.

Using the case of Jamaica and Guyana where unemployment rates were lower (15 and 12 percent) than in Barbados and Trinidad, the emerging trend is that “a growing proportion of the employed labour force is classifiable as ‘working poor’”37.

3.2.1. Barbados Barbados is a high income developing country. With a Human Development Index of 0,892. In 2005, it ranked 31 among 177 countries as the number one developing country in the world (UNDP 2007)38. It has achieved relatively high levels of social development and registers some of the lowest poverty levels in the Caribbean39. Poverty in Barbados stood at 8,7% of total households and approximately 13,9% of the total population according to the Barbados Inter American Development Bank Study40.

34 CARICOM is a group of mainly English speaking counries who form part of an economic community. 35 Norman Girvan 1997:2. 36 Norman Girvan 1997:2. 37 C. Y. Thomas 1995 in Girvan 1997:24. 38 Human Development Report Office. 39 Liliana Rojas-Suárez and Carlos Elías, 2006:68. 40 Barbados Ministry of Social Transformation, 2003.

20 3.2.2. Jamaica Irrespective of the set backs to social development brought on by the SAPs implemented during the 1980s, Jamaica has recorded reductions in national poverty levels. This reduction coincides with the implementation of the National Poverty Eradication Programme (NPEP). To date Jamaica has implemented a series of programmes aimed at eradicating poverty.

The Poverty Situation in Jamaica at a Glance:

 “Since the launch of the National Poverty Eradication Programme (NPEP), the incidence of poverty has declined by 10,6 percentage points moving from 27,5% in 1995, to 16,9% in 2004”41.  “According to the Economic and Social Survey of Jamaica (ESSJ) 2004, there was a slight decrease in the incidence of individual poverty island-wide of 2,23% since the 2003 ESSJ, when the rate was 19,1%”42.

3.2.3. Guyana This Caribbean country (along with Haiti) has been declared by the IMF/WB as a Highly Indebted Poor Country (HIPC). Taking into consideration its indebtedness along with its social development problems; namely poverty, Guyana has prepared a Poverty Reduction Strategy Paper (PRSP). Both the strategy paper and the National Development Strategy (NDS) set the country on the path for tackling its problems of poverty. It should be noted that in 2007 Guyana’s principal donor, The Inter-American Development Bank “cancelled Guyana’s nearly $ 470 million debt equivalent to nearly 41% of GDP”43.

3.2.4. OECS The OECS44 states consist of St. Lucia, Grenada, St. Vincent and the Grenadines, Antigua, St. Kitts and Nevis, Dominica and Montserrat. The Virgin Islands and Anguilla

41 NPEP. 42 NPEP. 43 CIA. The World Factbook. Guyana. 44 OECS. The Organization of Eastern Caribbean States. See Lewis (2002).

21 are associate members. Within CARICOM OECS States “are a distinctive group with special shared peculiarities of an economic and social nature and the history of cooperation through common institutions”45. These Small Island Developing States (SIDS) face unique challenges to the attainment of their development. They have therefore committed to a ‘Development Charter’ with a specified human development agenda. The rationale is that the well-being of OECS people is seen as ‘central focus of the development process46.

One of the minimum targets identified by the OECS Development Charter is that of ‘reducing the levels of poverty’. The Charter states that “poverty in our states can only be eliminated by enhancing access by the poor to resources they require”47. The following two tables show that the percentage of the poor in the OECS can range from 12% in Antigua to 33% in Dominica. In Grenada 32% of the population and in St. Kitts 30% of the population fell below the poverty line.

Table 3. Poverty Indicators for selected Caribbean countries. Poverty Indicators Year CPA % below % below Poverty Foster-Greer- Country Conducted Poverty Indigence Gap Thorbecke Line Line (FGT) P2 (Severity) Anguilla° 2002 23,0 2,0 6,9 3,2 Barbadosp 1997 13,9 - n.a n.a Belize+ 2002 33,5 10,8 11,2 6,1 British Virgin 2002 22,0 < 0,5 4,1 1,7 Islands° Dominica° 2002 39,0 15,0 10,2 4,8 Grenada° 1999 32,1 12,9 15,3 9,9 Guyanapp 1999 35,0 19,0 12,4 n.a Haiti* 1997 65,0 56,0 n.a n.a Jamaica** 2002 19,7 n.a n.a n.a St. Kitts and - - - - - Nevis St. Kitts° 2000 30,5 11,0 2,5 0,9 Nevis° 2000 32,0 17,0 2,8 1,0

45 OECS Development Charter, 2002:2. 46 OECS Development Charter, 2002:8. 47 OECS Development Charter, 2002:10.

22 Saint Lucia° 1996 25,1 7,1 8,6 4,4 St. Vincent and the 1996 37,5 25,7 12,6 6,9 Grenadines° Suriname++ 2000 63,1 20,0 n.a n.a Trinidad and 1997 24,0 8,3 n.a n.a Tobagoppp Turks and Caicos 1999 25,9 3,2 5,7 2,6 Islands° ° CPAs commissioned by CDB; p Barbados, CPA, Inter-American Development Bank (IADB); + SLC, Government of Belize; pp Guyana Living Conditions Survey, United Nations Development Programme (UNDP); * Haiti commissioned by UNDP; ** Jamaica SLC Government of Jamaica; ++ Suriname, Government of Suriname Statistics Office; ppp Trinidad and Tobago Household Budgetary Survey. Source: CDB, Poverty Reduction Strategy Paper (Barbados, 2005)48.

Table 4. Welfare measures in the Caribbean. Head count Human Integrated Basic Needs Index Development Poverty Index Index (very Country (percentage Index >0,40 needy, <0.50) poor) Antigua and 12 0,796 0,223 0,892 Barbuda Bahamas 5 0,854 - - Barbados 8 0,894 0,057 0,926 Belize 35 0,666 0,501 0,677 Dominica 33 0,749 0,501 0,782 Dominican 21 0,638 0,380 0,699 Republic Grenada 20 0,707 0,192 0,862 Guyana 43 0,580 0,591 0,773 Haiti 65 0,357 0,755 0,439 Jamaica 34 0,749 0,688 0,831 St. Kitts & 15 0,730 0,282 0,800 Nevis St. Lucia 25 0,709 0,355 0,773 St. Vincent and 17 0,732 0,396 0,776 the Grenadines Suriname 47 0,677 0,356 0,818 Trinidad and 21 0,855 0,239 0,831 Tobago Caribbean 27 0,710 0,394 0,777

48 Table 2.1: Poverty Indicators for Selected Caribbean Countries, Eleanor Wint, chapter 2, The Poor in the Caribbean: Some Facts, Figures and Postulates (in Melville and Wint, 2007:7).

23 Average Latin American Countries 25 0,757 0,403 0,731 Average Developing 0,600 0,467 Country - 0,541 (median) (median) Average Source: Table 1.2. Welfare measures in the Caribbean49. - Not Available. Only those estimates with an asterisk were calculated using a similar methodology

As seen in Table 3 above, poverty levels throughout the Caribbean and OECS are a cause for concern. More recent studies for some countries show, in some cases, reductions, and in others increases in poverty. St. Lucia has recently conducted a SLC which puts poverty levels in 2005/06 at 28,8% of the population and 21,4 % of households50. The EU estimates the poverty level in Antigua to be at around 12%51.

3.2.5. CSME and MDGs It is anticipated that with full commitment to the Millennium Development Goals (MDGs) and the successful implementation of the Caribbean Single Market and Economy (CSME), the region will experience continued reductions in poverty levels as seen in Jamaica. However the threat from global economic restructuring poverty is likely to increase as in St. Lucia under the adverse effects of loss of preferential markets for bananas.

4. ESTIMATES OF POVERTY IN TRINIDAD AND TOBAGO Estimating the level of poverty is an ongoing exercise. Kairi (2005), The Household Budgetary Survey (HBS), The Ministry of Social Development (1996) are the key sources for these measures.

4.1. Household Budgetary Survey (HBS) HBS data for 1997/98 revealed high levels of poverty as well as the existence and persistence of “pockets of acute poverty and indigence” in certain eastern, far south, and

49 World Bank, 1996: 3-4. 50 Kairi 2006. 51 Antigua and Barbuda Country Strategy Paper, 2002.

24 southwestern regions of the country52. HBS data also established that, in 1997-98, nearly 25 percent of Trinidad and Tobago’s population was poor. Expenditure levels suggest that more than 8 percent was indigent53.

The 1997-98 (HBS)54 used indigence and poverty lines of TT$ 228,30 and TT$ 376,54 a month per adult respectively55. Indigence was estimated at 6,0 percent for households. Based on comparisons made between the 1981 HBS and the 1988 HBS, Teekens (1990) estimated that absolute poverty had increased from 3,5 percent of households in 1981 to 14,8 percent in 198856.

Table 5. Poverty Indicators for Trinidad and Tobago. Poverty Indicators Year CPA % below % below Poverty Foster- Conducted Poverty Indigence Gap Greer- Country Line Line Thorbecke (FGT) P2 (Severity) Trinidad and 1997 24,0 8,3 n.a n.a Tobagoppp Source: ° Country Poverty Assessment (CPAs) commissioned by CDB; p Barbados, CPA, Inter- American Development Bank (IADB); + ppp Trinidad and Tobago Household Budgetary Survey. Source: CDB, Poverty Reduction Strategy Paper (Barbados, 2005)57

4.2. Poverty and Inequality in Trinidad and Tobago Measures for inequality include the Poverty gap, the Foster-Greer-Thorbecke index (FGT2) and the Gini coefficient. The Poverty Gap index refers to “a per capita measure of the shortfall in the welfare of the poor from the poverty line”58. This measure is often used to estimate the need for transfers to lower income households. The Gini coefficient

52 Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:65. 53 Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:65. 54 See Table 1 below. 55 Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:69-70. 56 World Bank, 1995. 57 Table 2.1: Poverty Indicators for Selected Caribbean Countries, Eleanor Wint, Ch 2. The Poor in the Caribbean: Some Facts, Figures and Postulates, (in Melville and Wint, 2007:7). 58 Source: Variable Definitions-University of Columbia.

25 is a measure of inequality of income distribution or wealth distribution. Its values range from 0 to 1. “A Gini index score of 0 implies perfect equality, whereas a score of 1 implies perfect inequality (i.e. all resources belong to one household)”59. The Foster- Greer-Thorbecke index measures the severity of poverty for each area. The higher the figure the more severe the poverty of the area. Over the period 1971-1998 the Gini coefficient fell from a high of 0,51 (1971-72) to 0,39 (1997-98)60. Table 6 below shows data on inequality in Trinidad and Tobago.

Table 6. Poverty Gap and the FGT2 Index by County, 1997-1998. County Poverty Gap FGT2 Index St. Andrew/David 11,3 6,1 Nariva/Mayaro 11,0 5,7 Victoria 8,1 4,3 St. Patrick 7,8 3,9 St. George 4,5 2,4 Port of Spain 3,6 2,1 San Fernando 2,5 1,5 Caroni 2,4 1,4 Tobago 2,5 1,1 Trinidad and 5,3 Tobago FGT 2 – Foster- Greer- Thorbecke Index by County Source: Household Budgetary Survey61

Unemployment decreased from 12 percent at the beginning of the decade to 8 percent in 2005 and 6,3 percent in 2007. The Gini coefficient “remained at 0.39 just as it was in 1998”. This suggests that “…there might not have been much closing of the gap between the poor and the non-poor”62.

4.3. Poverty Profiles Poverty profiles explore the broad parameters of poverty as related to geographic distribution, gender, age, education and ethnicity.

59 Source: Variable Definitions - University of Columbia. 60 Figure 2.1, Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:69. 61 Table 2-5 Poverty Gap and the FGT 2 Index by County 1997-1998 in Liliana Rojas-Suárez and Carlos Elías, 2006:73. 62 Kairi 2005:156.

26

4.3.1. Geographic Distribution Table 7 and Table 8 below provide insight into the distribution of the poor throughout Trinidad and Tobago, as revealed by various studies. By comparison, the 1992 SLC data revealed that the highest incidence of poverty was found in San Juan / Laventille, Tunapuna / Piarco, Princess Town, Diego Martin, Chaguanas Borough, and Siparia, ranging from significant highs of 7,7% to 12,7% respectively.

Table 7. Geographic Dimensions of Poverty (1997-98 HBS Data). Percentage of County Trinidad and Tobago Poor Tobago 4% Port of Spain 7% San Fernando 11% St. Patrick 13% Caroni 3% Nariva/Mayaro 24% Victoria 15% St. Andrew/ 14% St. David Source: Barbados Stay over Visitor Survey 2003 and 2004 Quarterly Publications63.

Table 8. Summary distributions of Poverty by Local Government Area (1992 SLC Data). Local % of Poverty Government Country Rate (%) Area Poor Port of Spain 4,5 31,6 San Fernando 6,0 35,6 Arima Borough 2,3 36,4 Chaguanas 7,9 27,3 Borough Point Fortin 4,9 36,0 Borough Diego Martin 8,2 8,3 San Juan/ 12,7 37,4 Laventille

63 Figure 2-4 Distribution of indigent Population by county: Liliana Rojas-Suárez and Carlos Elías, (2006: 71).

27 Tunapuna/ 9,7 30,4 Piarco Couva/Tabaqui 7,3 30,0 te/Talparo Rio Claro/ 4,9 56,3 Mayaro Sangre Grande 6,4 49,3 Princess Town 9,0 48,0 Penal/Debe 5,8 35,6 Siparia 7,7 40,0 Tobago 2,8 24,7 Source: Ministry of Social Development, 1996: 45. Table 10: Summary Distributions of Poverty by Local Government Area.

4.3.2. History and Demographics Examining the 1992 SLC and the 2005 SLC reveal that patterns of poverty persist along lines of geography with minor changes over the years.

Striking dimensions of poverty revealed in the 1992 SLC are as follows:

a) The highest incidence of poverty was among large sized households. b) The highest incidence of poverty was found within the San Juan/Laventille (12,7%) and Tunapuna/ Piarco (9,7%) regions. The Sangre Grande area registered significant proportions of the poor64. “The more densely populated County of St. George, therefore, contained the largest share of the country’s poor: 28,9%”65. c) Concentrations of poverty were found in the more densely populated area adjacent to the Cities and Boroughs. These areas were also characteristic of large scale squatting settlements, a situation being addressed by squatter regularization programmes in those areas which are on lands owned by the state66. d) In the final analysis distribution of the poor amounting to 35,9% of all households67.

64 Ministry of Social Development, 1996: 23. 65 Ministry of Social Development, 1996: 23-24. 66 Ministry of Social Development, 1996: 24. 67 Ministry of Social Development, 1996: 24.

28 4.3.3. Rural/Urban Poverty The 1992 SLC informs us that poverty levels were higher in rural areas than in urban areas. The figures were 15,6% and 20,3% respectively. Poverty in rural areas however, maintained a different character to urban areas68.

The poorest households are those found in Rio Claro/ Mayaro, Sangre Grande, Princess Town, Point Fortin and Siparia, where the poor constitute more than 40% of the households. The Rio Claro/ Mayaro area appeared to have the highest proportion of poor households, constituting 56,5%69.

4.3.4. 2005 SLC- Geographic distribution of Poverty and Indigence by region. Over time, though poverty may have decreased, the geographic distribution remains highly unequal. The 2005 SLC reveals that “…the north-east and south-west of the island of Trinidad and Tobago were the two poorest areas…”. “The Mayaro area that had been the poorest for decades, no longer carried the dubious distinction, although its residents had not become well off”70.

Poverty levels remain significant in Siparia (15,1%); Princess Town (11,2%); San Juan/Laventille (11,0%); Tunapuna/Piarco (10,1%). These regions together accounted for “47,4 percent of the total poor population”71. In the final analysis Sangre Grande had the largest proportion of poor persons (poverty within Regional Corporations), per 100 in the population; “39,1 percent of the population in the Regional Corporation of Sangre Grande were deemed to be poor”72.

Table 9. Geographic Distribution of Poverty by Regional Corporation. Regional As % of As % of Total Total Regional Disparity Corporation population non poor Sample Sample Corpora Ratio poor population population Population tion As of Regional % of

68 Ministry of Social Development, 1996:ix. 69 MOSD, 1996:61. 70 Kairi 2005:xix. 71 Kairi 2005:xix. 72 Kairi 2005:xix.

29 Corporation Sample Port of Spain 5,1 4,6 18,0 718 4,7 1,1 Mayaro/ 5,1 2,8 26,6 492 3,2 1,6 Rio Claro Sangre 9,6 3,0 39,1 627 4,1 2,3 Grande Princess 11,2 5,3 30,0 954 6,3 1,8 Town Penal/Debe 3,7 5,4 12,0 784 5,2 0,7 Siparia 15,1 7,9 27,7 1.391 9,1 1,7 City of San 2,8 4,5 11,2 641 4,2 0,7 Fernando Borough of 0,8 3,3 4,5 436 2,9 0,3 Arima Borough of 2,6 5,4 8,9 748 4,9 0,5 Chaguanas Borough of 2,2 1,4 24,6 230 1,5 1,5 Point Fortin Diego Martin 7,9 9,1 14,9 1.349 8,9 0,9 San Juan/ 11,0 12,9 14,7 1.915 12,6 0,9 Laventille Tunapuna/ 10,1 17,3 10,5 2445 16,1 0,6 Piarco Couva/ Tabaquite/ 7,4 12,7 10,5 1795 11,8 0,6 Talparo Tobago 5,2 4,4 19,0 694 4,6 1,1 Total (%) 100 100,0 16,7 - 100,0 - Total (N) 2.546 12.672 - 15.218 - - Source: Table 4.1 Geographic Distribution of Poverty by Regional Corporation. Kairi 200573.

4.4. Inequality and Ethnicity in Trinidad and Tobago

The 1992 SLC showed that poverty levels were “significant only for the dominant ethnic groups of East Indian and African origin”74. Data has revealed differences in poverty levels and inequality among the various ethnic groups of Trinidad and Tobago, particularly those of East Indian origin. The Gini ratios for household heads by ethnicity were as follows: “African 0,40; Indian 0,36; Mixed 0,41 and Other 0,39”75.

73 Kairi 2005:34. 74 Ministry of Social Development, 1996:ix. 75 Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suarez and Carlos Elias, 2006:69.

30

Table 10. Ethnicity of Household Heads by Quintile* (percent). Quintile (per capita African Indian Mixed Other All in T&T consumption) I 15,6 13,9 17,0 6,5 15,0 IV 18,7 16,8 18,1 6,5 17,7 III 19,4 18,8 14,6 6,5 18,3 IV 21,5 24,1 18,4 12,9 21,9 V 24,9 26,5 31,9 67,7 27,1 * Column distribution Source: Trinidad and Tobago: Poverty Reduction and Social Development (Kairi consultants, Ltd. 2004)76

It is argued that “underlying the change in Gini coefficient is “poverty reduction among Indians and development of an economic base outside of agriculture, which could be attributed more to the mobilization of intra-group social capital for advancement, than to any inexorable factors associated with the Kuznets hypotheses”77.

“Household poverty data for 1997-1998 did not immediately reveal any statistically significant difference in poverty levels between the two groups, except that the African poor were largely urban and the Indian poor were largely rural; however, close examination revealed that a gap between the two ethnic groups may have emerged”78.

“For example, by analyzing the distribution of household heads by ethnicity across quintiles, one sees that Africans were better represented than Indians in the lowest quintile; they were far less represented in the highest quintile than were Indians and other ethnic groups”79.

76 Table 2-6, Ethnicity of Households Head by Quintile, Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:73. 77 Kuznets Hypothes postulates that “inequality levels reaches a plateau and then starts to decline as a function of increase in average incomes” (Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:69). 78 Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006: 73. 79 Ibid.

31 Table 11. Distribution of Household Member by Ethnicity and Per Capita Consumption Quintiles. Per Capita Consumption Quintiles (%) Ethnicity Poorest II III IV Richest Total African 39,8 38 37,7 33,9 335 36,5 Indian 29,8 33,8 36,1 39,8 37,3 35,4 Chinese - 0 0,1 0,3 0,7 0,2 Syrian/ - - - 0 0,2 0 Lebanese Caucasian 0 - 0 0,1 1,6 0,4 Mixed 30,4 28 25,9 25,2 26,3 27,1 Other - 0 0 - 0,2 0 Ethnic Not Stated 0 0,2 0,1 0,6 0,3 0,3 Total 100 100 100 100 100 100 Source: Table 5.7A: Distribution of Household Member by Ethnicity And Per Capita Consumption Quintiles (Kairi 2005:49).

4.4.1. Gender It was reported that in Trinidad and Tobago, the percentage of poor females was only marginally higher than poor males, that it was not statistically significant. “Female household heads were more likely to be poor than male household heads”80. However female headed households were increasingly emerging among the poor.

Table 12. Employment Status by Gender across Quintiles, (Percent) 1997-1998. Status Quintile (per-capita consumption) I II III IV V Male Employed 16,3 17,3 19,8 22,1 24,5 Unemployed 36,2 26,8 20,9 11,4 4,7 Female Employed 11,9 16,6 17,5 24,3 29,7 Unemployed 32,8 23,7 24,9 14,5 4,1 Both Employed 14,6 17,0 19,0 22,9 26,5 Sexes Unemployed 34,5 25,3 22,8 12,9 4,4 Source: Household Budgetary Survey81.

80 Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:70. 81 Table 2-10. Employment status by Gender Across Quintiles, Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:75.

32 Table 13. Distribution of Household Members According to Sex and Socio-Economic Status. Socio Economic Status Sex Indigent Poor Vulnerable Non Poor Total Male 49,7 50,4 50,2 49,1 49,4 Female 49,5 49,5 49,8 50,6 50,3 Not Stated 0,8 0,1 - 0,3 0,2 Total (%) 100 100 100 100 100 Total (N) 180 2.366 1.652 11.020 15.218 Source: Table 5.4 A: Distribution of Household Members According to Sex and Socio-Economic Status, Kairi 2005: 45

4.4.2. Vulnerable Groups (Children, Elderly and Youth): Children in Poverty “A much higher percentage of poor children was found in Tobago than in Trinidad. Because larger households generally had a higher percentage of children, a significantly higher percentage of poor were children; this finding also extended to indigence”82. Youth an children under 19 years old were consistently over represented among the indigent poor and vulnerable in proportion to their percentage in the society. On the other hand the elderly 65 years and over were marginally overrepresented among the non-poor.

Table 14. Poverty by Five Year Age Groups. Five Year Socio Economic Status Age Group Indigent Poor Vulnerable Non Poor Total 0-4 14,2 9,1 8,8 6 6,9 5-9 10,3 9 10 5,9 6,9 10-14 13,6 11,5 9,6 7,2 8,2 15-19 15 14,2 10,5 8,4 9,6 20-24 7,9 11,3 10,7 9 9,5 25-29 9,5 7,2 9,2 7,6 7,8 30-34 8,7 6,5 6,9 6,6 6,6 35-39 5 5,8 6,3 6,8 6,6 40-44 4,6 6,7 6,3 7,9 7,5 45-49 5,4 4,9 5,4 7,1 6,6 50-54 1,8 3,9 3,8 6,2 5,5 55-59 1,4 3,3 4,1 5,4 4,9 60-64 - 2,7 2,9 4,3 3,9

82 Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:75.

33 65-69 1,4 1,3 1,6 4 3,3 70-74 0,6 1,2 1,6 2,7 2,3 75-79 0,8 0,7 0,9 1,9 1,6 80-84 - 0,3 0,6 1,4 1,1 85+ - 0,3 0,6 0,9 0,8 Not Stated - - 0,2 0,4 0,3 TOTAL 100 100 100 100 100 Source: Table: Poverty by Five Year Age Groups, Kairi 2005:43.

4.5. Socio-economic Factors and Poverty Poverty in Trinidad and Tobago and the Caribbean has been linked to changes in the economy. In the 1980s, Trinidad and Tobago experienced the repercussions of the collapse of oil prices on the world market. As a result the Trinidad and Tobago economy suffered reverses. This period led to the introduction of a series of Structural Adjustment Measures.

4.5.1. Structural Adjustment Programmes (SAPs) in Trinidad and Tobago In 1988, the Government of Trinidad and Tobago underwent an adjustment programme. The focus of the IMF/WB SAPs were:

 Improving the fiscal situation by reducing public sector expenditures (including a reduction in employment).  Introducing tax reform as value added tax (V.A.T.).  Restructuring and divesting public enterprises.  Increasing public utilities tariffs.  Rescheduling debt repayments.  Liberalizing exchange and trade controls .  Improving the incentive framework83.

4.5.2. Impact of SAPs on Welfare

83 Judy L. Baker / World Bank 1995:1.

34 There have not been in Trinidad and Tobago as extensive numbers of studies on the impact of SAPs as have taken place for example in Jamaica. It can therefore be difficult to measure the impact of SAPs on welfare in Trinidad and Tobago. The following impacts have been identified as being directly related to the SAPs:

 Decline in living standards for some is attributed to policies such as “those affecting the labour market, value of real wages, and decline in expenditures”84.  Increase in Poverty: it was estimated that poverty increased from “18,5 percent of households in 1988 to 22.5 percent in 1992”85.

It was concluded that based socio economic trends (re-increase in poverty, decline in economic performance nationally), that the high levels of poverty registered “which represents an extraordinary increase in poverty, has been brought about by the worsening of the economic circumstances experienced over the past decade”86.

MOSD (1996) argues that one of the effects of adopting economic measures aimed at stabilizing the economy was the creation of new classes of poor households which have been called ‘the new poor’. This phenomenon defined by C. Y. Thomas appears to apply adequately to Trinidad and Tobago.

4.5.3. Link between Poverty and Unemployment The increase in poverty in Trinidad and Tobago has been closely linked to unemployment.

 Between 1988 and 1992, unemployment rose from 10 per cent to 20 percent.  Sectors suffering from job loss primarily among construction, manufacturing and public sectors.

84 Judy L Baker/ World Bank 1995:2. 85 Henry and Melville, 1989 quoted in Judy L Baker/ World Bank 1995:2. 86 MOSD, 1996:23.

35  The informal sector, namely community and personal services, wholesale and retail trade, tourism and to a lesser extent agriculture, all served as avenues to absorb workers.  Trinidad saw the emergence of the ‘New Poor’ category that refers to those who remained unemployed. These individuals were “unable to find gainful employment to support themselves and their families”87.

Bearing in mind the adverse effects of these socio economic factors on living standards and poverty levels in the past, it is not surprising that, following steady economic progress in the late 1990s and the first five years of the new millennium (past 10 years), Trinidad and Tobago has indeed registered declines in poverty and improvements in living standards throughout the country. The 2006 study found that poverty has decreased from 35% of households in 1992 to 16,7% in 2006, a time when unemployment is at an all time low.

With the dawm of the 21st century there continues to be a reduction in reporting of poverty levels The 2005 SLC Report notes that “…unemployment fell into single digits, for the first time in decades, and the poor had work available to them”88. This progress for the people and Government of Trinidad and Tobago (the decline in poverty and indigence) is attributable to the “…rapid expansion of the economy in the first half of the present decade”, among other factors. In the monetization of revenues from gas and oil, the government contributed to the expansion of employment directly and indirectly, in particular, through the Construction Sector, and in Government services”89.

The phenomena of the working poor must still be kept in mind as with increased employment, some of the poor would have merely “…graduated from indigence and poverty to being the working poor, while others would have risen above the poverty line”90. The Ministry of Finance (2004) notes however that “Institutional economic and

87 Judy L. Baker / World Bank 1995:2. 88 Kairi 2005:xvii. 89 Kairi 2005:xvi. 90 Kairi 2005:xvii.

36 social forces also put the country’s households at risk. Trade liberalization increases the vulnerability of employees in certain sectors, and the country has no developed mechanisms for handling trade adjustment”91.

91 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:89.

37 5. MEASUREMENT OF POVERTY

The measurement of poverty is a complex activity involving many actors and considerable debate. Below we have selected to identify some of the key measurements used in poverty studies. The list should assist the reader to better understand the terms found in literature of this social problem.

5.1. Indicators Indicators are universal statistical measures that are used in the study and measurement of social conditions. The following indicators allow for determining the degree or extent of poverty faced by individuals, communities and countries. They are as follows:

 Human Development Index (HDI): “Human Development Index- A composite index measuring average achievement in three basic dimensions of human development- a long and healthy life, knowledge and a decent standard of living”92.

 Human Poverty Index (HP1 2): “for selected high income OECD countries. A composite index measuring deprivations in the three basic dimensions captures in the human development index- a long and healthy life, knowledge and a decent standard of living- and also capturing social exclusion”93.

 Life expectancy at birth: “The number of years a new born infant would live if prevailing patterns of age-specific mortality rates at the time of birth were to stay the same throughout the child’s life”94.

92 HDR 2006:407. 93 HDR 2006:407. 94 HDR 2006:407.

38  Literacy rate, adult: “the percentage of persons ages 15 and older who can, with understanding, both read and write a short, simple statement related to their everyday life”95.

 Literacy rate, youth: “The percentage of people ages 15-24 who can, with understanding, both read and write a short, simple statement related to their everyday life”96.

 Mortality rate, infant: “The probability of dying between birth and exactly one year of age, expressed per 1.000 live births”97.

 Mortality rate, under-five: “The probability of dying between birth and exactly five years of age, expressed per 1,000 live births”98.

 Mortality ratio, maternal: “The annual number of female deaths from pregnancy- related causes per 100.000 live births”99.

 Purchasing power parity (PPP): “A rate of exchange that accounts for price differences across countries, allowing international comparisons of real output and incomes. At the PPP US$ rate, PPP US$ 1 has the same purchasing power in the domestic economy as $ 1 has in the United States”100.

 Sanitation: Population with sustainable access to improved sanitation facilities- “The percentage of the population with access to adequate excreta disposal facilities, such as a connection to a sewer or septic tank system, a pour-flush latrine, a simple pit latrine or a ventilated improved pit latrine. An excreta

95 HDR 2006:407. 96 HDR 2006:407. 97 HDR 2006:408. 98 HDR 2006:408. 99 HDR 2006:408. 100 HDR 2006:409.

39 disposal system is considered adequate if it is private or shared (but not public) and if it can effectively prevent human, animal and insect contact with excreta”101.

 Tenure: households with access to secure-refers to “Households that own or are purchasing their homes, are renting privately or are in social housing or sub tenancy”102.

 Unemployment: “Refers to all people above a specific age who are not in paid employment or self-employed, but are available for work and have taken specific steps to seek paid employment or self-employment”103.

 Unemployment, long-term: “Unemployment lasting 12 months or longer”104.

 Water: population without sustainable access to improved water source- “Calculated as 100 minus the percentage of the population with sustainable access to an improved water source. Unimproved sources include vendors, bottled water, tanker trucks and unprotected wells and springs”105.

 Water: population with sustainable access to “the share of the population with reasonable access to any of the following types of water supply for drinking; household connections, public standpipes, boreholes, protected drug wells, protected springs and rainwater collection. Reasonable access is defined as the availability of at least 20 litres a person per day from a source within 1 kilometer of the user’s dwelling”106.

While these are among the most frequently used indicators, used particularly by the international community when measuring poverty and quality of life across countries,

101 HDR 2006:409. 102 HDR 2006:409. 103 HDR 2006:410. 104 HDR 2006:410. 105 HDR 2006:410. 106 HDR 2006:410.

40 CPAs may not always be in a position to utilize all of them. It is therefore important to note which indicators or proxies are used for various studies to understand not only what improvements have occurred but also why data may vary.

41 6. PROXIES OF POVERTY MEASUREMENT - INDICATORS USED TO MEASURE POVERTY IN TRINIDAD AND TOBAGO

Integrated poverty measure: this measure was employed in the 1992 SLC Survey. All known variables which correlate to cause poverty constituted elements of the methodological framework. These were lack of food, clothes, shelter, absence of basic amenities such as potable water, sanitation facilities, lack of provisions for education, health, recreation and other social welfare amenities which have been catered for through the collection of data in the study.

The variables which were specified are:

a) Earned income and expenditure. b) Access to potable water. c) Access to sanitary services such as flush toilets and septic tanks. d) Education.

 Non attendance of minors at school.  Adults who have attended school but who received no qualifications or certification.  Access to and extent of use of health services.

e) Housing in terms of:

 Adequacy of provision.  Type of tenancy.  Land tenancy.  Persons per room.  Extent of overcrowding107.

107 Ministry of Social Development, 1996:21-22.

42

6.1. Constructing Poverty Measures for T&T Surveys

6.1.1. The Poverty Line Measure: Poor households according to the poverty line method (SLC 1992) “A poverty line of TT$ 623 per capita monthly has been established in the 1992 SLC, against which persons falling below this level of income, were deemed to be poor”108. At the time of the study, the population of 1,3 million translated into 300.000 households. According to the Poverty Line Measure, 35,9% of the households were judged to be poor constituting:

 Individuals and households who had long fallen into a state of poverty –the historically poor.  Individuals and households which have more recently become poor as a result of changed economic circumstances e.g. loss of jobs, reduced wages –the new poor109.

Poverty Line (1992 SLC): For different sized households the poverty line was derived as follows:

 2 person households: TT$ 1.108  3 person households: TT$ 1.512  4 person households: TT$ 1.847  5 person households: TT$ 2.142  6 person households: TT$ 2.437  7 person households: TT$ 2.700  8 person households: TT$ 2.940110

108 Ministry of Social Development, 1996:22. 109 Ministry of Social Development, 1996:viii. 110 Ministry of Social Development, 1996:viii.

43 It is worth noting that the Poverty Line measurement generally assumes that there exist pre-determined and well-defined standards of consumption- called ‘poverty lines’. This line is derived by considering all the component items of a basket of goods which contain the necessary nutrients of food as well as non-food items which are required for an acceptable standard of living111.

Poverty assessments and measurements also take into account “all those basic amenities including, those which promote good health, access to education, shelter, recreation, employment opportunities and self sustaining incomes, which individuals and households require in order to enjoy a comfortable life”112. This approach provides a more informed view of socioeconomic situation of population groups.

The poverty line measure has “…provided a measure of the extent of increase in poverty levels through time periods as was discerned for the 1981 and 1988 Household Expenditure data and the SLC of 1992. It has also provided evidence of the emergence of classes of the ‘new poor’”113.

6.1.2. Absolute Poverty Such a measure is advantageous for capturing the worst scenario, in terms of incomes unavailable to households, at levels necessary to provide for their basic needs (MOSD 1996). The poverty line measure is therefore capable of pointing out persons living in absolute poverty. “The most common approach in defining an absolute poverty line is to estimate the cost of a basket of goods (food, shelter, clothing, etc.) deemed necessary to assure that basic consumption needs are met”114.

111 Ministry of Social Development, 1996:1. 112 Ministry of Social Development, 1996:1. 113 MOSD, 1996:61. 114 MOSD, 1996:22.

44 This measure advocates that poverty is a condition that exists in a society when a person(s) or household(s) do not attain a level of material well-being deemed necessary to constitute a reasonable minimum by the standards of that society115.

“This approach recognizes that poverty lines are inherently subjective judgements made about what constitutes a socially acceptable minimum standard of living. While it is undeniable that there exist levels of consumption of various goods (food, clothing and shelter, etc.) below which survival beyond short periods is threatened, it is less clear exactly what these levels are for any given individual”116.

The poverty line measure is also challenged by the fact that “…in most societies, including some of the poorest –the notion of what constitutes “poverty” goes beyond the attainment of the absolute minimum needed for survival”117. Taking all variables into account to produce one single measure therefore remains problematic.

6.1.3. Consumption versus income measures of poverty A second approach to measuring living standards that is used in Trinidad is the study of household consumption. This, rather than income, is widely accepted as a more appropriate measure” (WB 1996:3). Take for example the trends revealed from the 1975, 1981/82 and 1988 Household Budgetary Survey conducted by the Central Statistical Office. In these studies households reported more expenditure over and above their incomes. In surveys persons usually understate or decline to give their true income.

It is widely accepted that household consumption provides a basis for measuring welfare, hence the use of consumption measures such as the food basket rather than income (WB 1996:3).

115 MOSD, 1996:22. 116 MOSD,1996: 22. 117 Ibid.

45 When it comes down to measuring poverty in Trinidad and Tobago, there are several possible poverty lines that can be constructed. For example, a commonly accepted methodology used for capturing extreme poverty was a measure reflecting the average price of a minimum low-cost basket for a 2.000 calorie diet collected during the time of the survey (TT$ 4,90, US$ 1,15 per person per day). For the 1992 SLC, poverty was defined at TT$ 6,60 (US$ 1,56) per person, per day (or) TT$ 2.420 per person, per year based on May/June 1992 prices). Accuracy of measurement was ensured by adding an allowance for basic non-food goods to the extreme poverty line using information on the consumption patterns of the poor from 1992 the SLC (WB 1996:4).

6.1.4. 2005 Survey of Living Conditions The data for this study was gathered in 2005 by the CSO. “Estimates of poverty generated in this report are specific to the (reference) year 2005”118. This study involved the selection of a random sample of 3.621 households, which added up to about 12.919 persons. This figures, on the basis of population updates, represented one percent of the population119.

The main poverty estimates derived for this study are based on “an indigence line that measures, in dollar terms, what would be necessary for an adult to attain the minimum level of nutrition deemed adequate to maintain good bodily health at the prices available in the market during the time of the survey (mid year 2005)”120. “The derived poverty line incorporates the indigence line, and accommodates for other items than food that individuals and households would need”121.

Table 15. Level of Poverty, Indigence and Vulnerability Lines. Level of Poverty TT $ and vulnerability lines

118 Kairi 2005:xv. 119 Kairi 2005:xv. 120 Kairi 2005:xvi. 121 Kairi 2005:xvi.

46

Indigence Line (Annual in local 3.060 currency) Poverty Line (Annual in local 7.980 currency) Vulnerability line (Annual in local 9.975 currency) Source: Kairi 2005122.

6.1.5. Limitations of one-time surveys

Time Since poverty conditions are likely to change over time, whether improving or worsening, it is necessary therefore to monitor living conditions through periodic surveying123. This has only been achieved slightly in Trinidad and Tobago since the gaps in terms of years between surveys are relatively large. For example the poverty level from the 1988 data was 18,5% (Henry’s estimate). Teekens (only 1988 data) estimated the level to be 14,6%. The findings of both analysts suggested worsening of the poverty level between 1981 and 1988124.

Subsequent data generated by the SLC was useful in providing a snapshot of poverty. While future data collection efforts were highly recommended to enable ongoing monitoring and evaluation of poverty reduction programmes and policies, the next study was actually conducted in 2006. This one would argue is quite a large gap.

Variables Both HBS studies employed the poverty line approach which did not allow for analysis of social factors and their effects on poverty. The SLC, in contrast, “has focused on a wide

122 Kairi 2005:xvii. Table 1: Level of Poverty, Indigence and Vulnerability Lines. 123 Ministry of Social Development, 1996:2. 124 Ministry of Social Development, 1996:12.

47 range of poverty assessment variables which have now made a much broader scope of analysis and measurements possible”125.

Consumption Take for example the trends revealed from the 1975, 1981/82 and 1988 Household Budgetary Survey conducted by the Central Statistical Office. These showed recurring patterns where household expenditure tended to be over and above their incomes. Such patterns point even more to the adequacy of consumption measures over income measures of poverty.

One outstanding advantage of the poverty line measure is that it captured the various levels and intensity of poverty, and pointed to changes in the income and expenditure patterns of households, a development which can be linked to shifts in employment patterns, job losses and reductions in incomes and wages accruing to households126.

125 Ministry of Social Development, 1996:12. 126 MOSD, 1996:61.

48 7. SOCIO-CULTURAL COMPONENTS OF POVERTY

Poverty lines and consumption measurements assist in providing a framework for measuring physiological deprivation of individuals in the form of income, consumption and meeting of basic needs. These methods of determining poverty are well developed in the discipline of economics and are the most commonly used in the current discourse on poverty and poverty reduction. They do not assess socio-cultural deprivation such as social exclusion and lack of dignity, self-respect, security, justice and health. The presence of these attributes in communities and households contribute to building social capital and facilitating empowerment for sustainable livelihoods. These factors have a major effect on perceptions of the poor on their situation, yet the more commonly established methods of assessing poverty frequently exclude socio-cultural conceptions of poverty.

Bearing in mind the limitations of the Poverty Line measure for assessing poverty “a more in-depth study of the conditions of households employing socio-economic measures, becomes desirable, in order to establish the full dimension of the poverty situation which obtains” (MOSD, 1996:61). Such a measure is necessary to capture features such as:

 Socio Cultural deprivation.  Human poverty approach, lack of basic capabilities to live a long healthy life.  Social exclusion- lack of resources to participate in customary activities.  Lack of participatory approach- lack of dignity, self respect, security, justice and health.

Traditional or previously used measures of poverty will have to be adjusted to incorporate indicators such as longevity, knowledge, mortality and living standard, access to health, access to water, degree of malnutrition etc. Measuring social exclusion will take into consideration indicators such as income: precariousness, employment, marital instability and limited social participation. Use of the Participatory approach will be

49 necessary to measure the assets of the vulnerable, their time use, and access to education and health.

Other concepts of wealth and capital have become increasingly recognized as being pivotal to successful social transformation and the economic success of communities. These non-physical forms of wealth significantly affect the feeling of well-being of a community or household and the ability to improve their material living conditions. These include the following:

 Social capital  Cultural capital  Psychological capital

These individual, family and household strengths especially when accompanied with land ownership may hold the key to poverty alleviation in the future. Their effectiveness could then be assessed via the traditional methods for poverty measurement.

7.1. Social Capital This concept has been described by many authors including Bourdieu, Putnam and the World Bank. Bourdieu states that Social capital is “the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition” (Bourdieu 1983:249). Putnam notes that ‘Whereas physical capital refers to objects and human capital refers to the properties of individuals, social capital refers to connections among individuals –social networks and the norms of reciprocity and trustworthiness that arise from them. In that sense social capital is closely related to what some have called “civic virtue”. The difference is that “social capital” calls attention to the fact that civic virtue is most powerful when embedded in a sense network of reciprocal social relations. A society of many virtuous but isolated individuals is not necessarily rich in social capital’ (Putnam 2000:19). Recognizing the importance of social capital in development projects, The World Bank noted that “Social capital refers to the institutions, relationships, and

50 norms that shape the quality and quantity of a society’s social interactions…Social capital is not just the sum of the institutions which underpin a society – it is the glue that holds them together’ (The World Bank 1999).

Both cultural capital and psychological capital are in some ways linked to to social capital. However they both illustrate human resources of the particular individual or household.

7.2. Cultural capital This refers to the range of attitudes and competences that provide the individual with the confidence to negotiate his or her space in the world. Sometimes it is a confidence that comes through knowledge of ancestral strengths and knowledge of one’s past and heritage. Other definitions refer to the linguistic and behavioural competences necessary for educational success, which often leads to further success in the world of work. Bourdieu (1985) describes cultural capital in the following manner. “Cultural capital can exist in three forms: in the embodied state, i.e. in the form of long-lasting disposition and objectified state, in the form of cultural goods (pictures, books, dictionaries, instruments, machines, etc.) theories or critiques of these theories, problematics, etc. and in the institutionalized state …because, as will be seen in the case of educational qualifications, it confers entirely original properties presumed to guarantee”.

7.3. Psychological Capital This term has evolved with the increased insights into the importance of investing in human resources in particular within the context of the workplace. Goldsmith et al. (1998:15) notes that psychological capital encompasses “those personal attributes expected to influence productivity. Many features of a person’s psychological capital are reflected in a person’s self-view or sense of self-esteem”. Luthans, Youssef & Avolio (2007:3) define psychological capital as being characterized by the following:

“1. having confidence (self-efficacy to take on and put in the necessary effort to succeed at challenging tasks; 2. making a positive attribution (optimism) about

51 succeeding now and in the future; 3. persevering toward goals when necessary, redirecting paths to goals (hope) in order to succeed; and 4. when beset with problems and adversity, sustaining and bouncing back and even beyond (resiliency) to attain success”.

In Trinidad and Tobago the social psychologist, Ramesh Deosaran has best studied the concept of psychological capital among the poor in the book Psychonomics and Poverty: Towards government and civil society. Hyman (1971) in discussing the flexibility of lower class families in Trinidad refers to the ability of individuals to adapt to varying circumstances. This adaptability is an example of psychological capital.

7.4. Political Power The last form of capital that needs to be recognized in an introductory project such as this is political power. This latter concept determines the distribution of resources. Persons with access to this form of power usually develop regulations which ensure the inclusion of themselves and their representative group within those receiving resources. Frequently described as determining “who gets what, when where and how”, political power penetrates the heart of the poverty discourse. From some perspectives poverty is not a problem of economics but one of politics. Efforts to solve poverty via manipulation of figures and poverty lines are inefficient if the distribution systems at national, community or international levels are not addressed. From this perspective the improvement of the conditions of life of the lowest income groups can only be improved by their empowerment and increased participation in the political decision making affecting their respective communities.

Other forms of capital, that are increasing recognized but fall outside of the objectives of this study, include natural capital, information and technology capital and environmental capital.

52 8. SOCIAL CONDITIONS IN POOR COMMUNITIES In order to gain an appreciation of social conditions in poor communities it is important to consider the areas identified below. Details for particular communities can be found at the website of the Central Statistical Office of Trinidad and Tobago, where the data is classified according to county enumeration district or town. Details of housing and contents of housing can also be provided by the census data127. Indicators of well-being and increased living standards include:

8.1. Health “For the period 1997 to 2000, the leading cause of death for all ages was heart disease followed by diabetes mellitus, malignant neoplasm, cerebrovascular disease and HIV/AIDS”128.

HIV/AIDS continues to be the major cause of death among young adults in Trinidad and Tobago. In 2002 there were 236 deaths as a result of the disease, comprising 140 men and 93 women. “Available data for the period 1983 to 2002 indicate that the male population has been more affected by the disease, recording both higher incidences and death rates”129. “The 30 to 34 age group, represented the largest cumulative figure for AIDS reported deaths by age and 25 to 39 age groups respectively”130. “Current forecasts indicate that the country may loose up to 4 percent of its GDP by 2005 if the trend continues”131. “By Geographical area, the County of St. George remains the largest affected area with 189 deaths and 159 HIV cases followed by Tobago which had a reported 85 cases and 21 deaths”132.

8.2. Housing Adequacy and quality of housing remain a cause for concern in Trinidad and Tobago. “Approximately 25.000 squatters currently occupy State Lands in Trinidad and Tobago.

127 http:/cso.gov.tt/ 128 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:15. 129 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:15. 130 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:16. 131 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:16. 132 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:16.

53 In recognition of the fact that these people are among the poorest of the society and are therefore unable to provide decent housing for themselves, Government has sought to regularize 5.400 families at seventeen squatter settlements throughout the country”133.

8.3. Education and Training “Failure to provide for the training and retraining of workers in the face of economic and technological change can put a household’s main breadwinner, along with his or her family, on the breadline”134.

8.4. Information “Information dissemination has progressed in Trinidad and Tobago with the prevalence of cellular devices and computer usage associated with the Internet”. “Since 1998 the usage of these devices has increased from 20 to 1,52 (per 1,00 persons) to 217 and 36,2 respectively 2001”135.

“International competition and the rate of technological obsolescence have contributed to the decline in the prices of these devices and the subsequent wider usage”136. “Traditional channels of communication including telephones, cable networks, radios and newspapers, remain primary sources of information”137.

8.5. Migration “…External migration- in response to push factors at home and pull factors abroad deprives households of parents, with often pernicious results for the children left behind”138. “The net migration rate is –11,13 migrant(s) / 1.000 population”139. Migration frequently splits families with children and the elderly being left behind. Emigrants may

133 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:16-17. 134 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:89. 135 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:17. 136 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:17. 137 Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:17. 138 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:80. 139 CIA, The World Factbook-Trinidad and Tobago.

54 find themselves excluded in the host country although many succeed in improving their circumstances and send home remittances.

8.6. Challenges The current social environment in Trinidad and Tobago is affected by many challenges. Vulnerable communities, including the poor, experience:

 Murders, in particular of young men.  Kidnappings.  Crimes of property , theft , larceny.  Violence in schools.  Increased ethnic tension.  Domestic violence (especially abuse of women and children).  Increased incidence in use of narcotics and in narcotics trade.  Spread of HIV/AIDS.  Trade liberalization’s effects on certain sectors of the labour force and economy140.

Further discussions of these challenges remain outside of the scope of this review of literature. However these issues have been noted to assist in providing a picture of poverty in Trinidad and Tobago.

8.7. Coping and Resiliency in Poor Communities Persons who fall below the poverty line and are classified as poor are not passive in their situation but develop various strategies to help them to meet their basic needs and cope with their situation. Melville and Wint (2007:41) mentioned sharing and cooperating as the most frequently stated strategy by men and women in their study. This is mainly an individual effort and not that of a community organized approach. Growing food in backyards was another strategy mentioned and participating in the informal sector.

140 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:90.

55 Learning to “make do”141. Other persons mentioned stealing, begging and selling drugs as a way of coping with poverty. Children mentioned remaining hungry at school until the days that school lunches are provided. Drug use was also mentioned as a way of coping emotionally with poverty.

Resiliency is a concept which has its roots in clinical psychology. The term refers to the ability to bounce back from failure, adversity and advance to positive change, progress and increased responsibility. Researchers have noted that the ability of persons to be resilient in difficult circumstances usually requires the support of one support person, who should be involved early in the life of the particular individual (Larsons and Luthans, 2006).

8.8. Self Perceptions of the Poor Poverty in Trinidad and Tobago is often represented in official reports that have quantified the occurrence of the phenomenon. However, qualitative studies are necessary to gain subjective data on how the poor see themselves and their situation. This approach to studying poverty has been commented on by Chambers, the World Bank Voices of the Poor initiative.

Melville and Wint (2007) and Cambridge (2003) share views and perspectives of the poor of their situation. Cambridge (2003:48) notes that residents in Beetham Gardens have seen clear improvements in their lives compared to their previous residences. Residents of the community stated that the stigma of the national community towards Beetham Gardens negatively affected their sense of community pride, well-being and personal dignity “that comes from owning a furnished home with easy access to the advantages of the capital city”. In this study more than half of the residents stated that even though they were comfortable living in Beetham any progress, especially for employment, required them to move out of the area.

141 An expression that refers to living within the capabilities of current resources.

56 Melville and Wint (2007:41) state that the poor understand and describe poverty as “a cycle of physical and emotional deprivation, disadvantages in education and a lack of motivation or ability to find work”. The authors acknowledge that poverty has an immense effect on the poor. Some of the emotional issues are shame, frustration, insecurity and a lack of self worth especially by the long term unemployed. The authors also note that some communities or a substantial number of participants in their study did not see their communities on the whole as being poor. The reasons given included the high rate of home ownership, strong social capital and observable improvements in living conditions compared to the past.

Other sources include the mass media including both electronic and print media. Newspapers articles and television programmes periodically cover stories of the poor in Trinidad and Tobago. The journalistic approach occasionally sensationalizes the poverty experience. Social science research methodology and ethical principles are frequently not practiced in these cases. Some of the ethical guidelines that may be ignored are:

 Ensuring the confidentiality of the subject, such as any information which would lead to the identity of the person.  Unnecessary invasion into the privacy of the interviewee.  Lack of protection of the subject from emotional or psychological distress that the research may inadvertently bring about.  Disrespect of the poor through the use of slogans, acronyms e.g. BOP (Bottom of the pyramid population) to describe the population of low income persons.

Another source of perspectives on poverty is to source information from popular culture. The calypso tradition of Trinidad and Tobago has a pattern of social and political commentary. Popular local songs such as “People in the Ghetto” by Pink Panther or “Poverty is Hell” by The Mighty Shadow give voice to the sentiments of the poor. These various sources of opinions of the poor and the experience of poverty are obtained from

57 the qualitative interactions of the community with low income communities and serve to report different perspectives on the realities of the Trinidad and Tobago poor.

58 9. THE WAY FORWARD

Dealing with poverty in Trinidad and Tobago will require a strategic effort on the part of Government and Civil Society. Key to any strategy to reduce or eliminate poverty is adequate information or data on poverty; data which captures its multi dimensional nature. It is important to identify the most disadvantaged in society: whether they are large households with young children, vulnerable groups e.g. disabled, shut-ins, persons with HIV; informal sector workers.

Studies should inform development efforts such as agricultural development, rural development efforts, provision of health and medicine (health reform), social policy and social service delivery and social protection. Progress will be made if social programmes for poverty alleviation target health, behaviour change, agriculture, information literacy and social exclusion. Reducing poverty involves programmes that target not only income- poverty but other forms by

 Introducing sustainable forms of well being.  Enhancing social, cultural, financial, physical and environmental capital.  Facilitating empowerment e.g. mobilization, support for NGOs.  Promoting sustainable livelihoods (conflict resolution, food security, environmental legislation, relief).

9.1. The New Economy The Trinidad and Tobago economic performance is improving. In 2002 it registered a 4,6 percent expansion, an increase when compared to the 2,8 percent expansion of 2001. Growth for 2003 was projected to be as high as 6,7 percent. This period of growth is attributed to the start-up of additional liquefied natural gas operations”142. “…Over the period 2002-2006, our economy grew at a high rate and real GDP of 9,7 percent per year…” (Budget Statement 2008:5). Per capita income has increased from “US$ 7.100 in

142 Ministry of Finance 2004:13

59 2002 to $US 14.790 in 2006” (Budget Statement 2008:5). “…The non-energy sector surpassed expectations, increasing an average annual rate of 6 percent over the period” (Budget Statement 2008:5).

Since the country has a significant link between employment and poverty, it is worth noting that unemployment has been decreasing. The 2001 unemployment was at 10,8 percent and reduced to 10,4 percent in 2002. “For the third quarter of fiscal 2003 however unemployment registered a marginal increase of 10,19 percent over the 10,12 percent registered in the corresponding period of fiscal 2002”143. “…An average of approximately 14.400 new jobs were created annually, resulting in a reduction in the unemployment rate from 11,7 percent in 2001 to 5 percent at the end of 2006, the lowest in our nation’s history” (Budget Statement 2008:5). “…Official data shows a halving of the poverty rate from 35 percent in 1990 to 16,7 percent by 2006” (Budget Statement 2008:5).

9.1.1. Social Services The country’s potential success at reducing and/or eventually eradicating poverty depends on appropriate social planning to treat existing and emerging vulnerabilities. This would require a holistic understanding of the developmental needs of the nation and sensitivity to the interdependence of economic and social planning. In the current scenario, various interventions are being put in place to ensure social benefits and provide a social safety net.

“Many existing institutional structures treat areas of vulnerability or pathology that social forces have created. Most operate with a top-down philosophy or handout mentality. All must be viewed against the backdrop of the range of factors that contribute to poverty to create household risk”144. “Extensive social benefits from expenditure on health, education and housing as well as old age pensions and public assistance have been

143 Ministry of Finance 2004:13. 144 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:89.

60 provided to the population which stands close to 1,3 million residing in over 300.000 households. Economic decline, stagnation and enforced adjustment measures have however tended to erode theses benefits”145.

The delivery of social services occurs through a range of state and non-governmental organisations. “A host of non-governmental organizations (NGOs) and Community Based Organizations (CBOs) also operate in the country”146. In Tobago, the Tobago House of Assembly oversees the delivery of social services and poverty reduction programmes. State institutions include but are not limited to the following ministries. Periodically there can be changes of responsibility for specific areas e.g. youth or gender, however the governmental units mentioned below reflect those responsible for treating poverty issues”. These are:

 Ministry of Community Development, Culture and Gender affairs.  Ministry of Youth and Sport.  Ministry of Social Development.  Ministry of Labour and Cooperatives.  “Many of the programmes operated in Trinidad are found in Tobago. However, the Special Needs of Tobago’s population have led to the development of needs- specific programmes”147.

“More than 100 programs fall under the rubric of social services, besides those offered by the Ministries of Education and Health”148. The institutional environment is therefore “thick with participants. Yet there are major gaps, attested to in the level of need felt by some sections of society and the outward visible evidence of social discord”149.

145 Ministry of Social Development, 1996:vii. 146 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:90. 147 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:90. 148 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:90. 149 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:90.

61

“Change in the governing administration and restructuring of ministerial portfolios make it difficult to develop a historical series on beneficiaries by programmes, even though it is possible to establish broad terms in expenditure allocated and public assistance are among the few beneficiaries for whom there is a readily available series of benefits”150. “Expenditure data from NGOs and CBOs are even more problematic. Government subventions to most and provide some sense of commitment level”151.

9.2. Poverty and Vision 20/20 The government of Trinidad and Tobago has pledged commitment to invest more in human resources. “The present administration has encapsulated its objectives in the rallying theme of vision 2020, whereby the country aspires to achieve developed-country status by the year 20/20”152.

Vision 2020 “…was founded on five developmental pillars; Developing Innovative People; Nurturing a Caring Society; Enabling Competitive Business; Investing in Sound Infrastructure and the Environment; and Promoting Effective Government153. This programme is evidence that the government acknowledges that social protection structures “must be put in place to protect the most vulnerable citizens against the risks of economic and social change”154.

Based on its current level of expenditure and resources, it is argued that at this historic moment, Trinidad and Tobago can “significantly reduce, and even eliminate, extreme poverty”155. All efforts when the vision and mission of Vision 2020 aim to do just that. At present the thrust is towards:

150 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:91. 151 Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:81. 152 Liliana Rojas-Suárez and Carlos Elías, 2006:65. 153 Budget Statement 2008:4. 154 Liliana Rojas-Suárez and Carlos Elías, 2006:65. 155 Liliana Rojas-Suárez and Carlos Elías, 2006:66.

62  Improving housing.  Improving social safety nets.  Improving access to and quality of health care.  Increasing education and training.

In order to continue the struggle to reduce poverty and hunger the government has strengthen the social safety net in the following ways. Between 2002 and 2007 the minimum old age pension was increased from TT$ 800 per month to $ 1.350. The elderly have also received access to free medical care and drugs, bus passes and housing assistance (Budget Statement 2008). Irrespective of increases in the minimum wage (now at $ 9,00 per hour), high food prices continue to affect some households. The Government of Trinidad and Tobago has therefore introduced a Food Debit Card aimed at helping needy citizens cope with this phenomenon. Cards value TT$ 300, $ 400 or 500 for relevant vulnerable households of 3, 4 or 5 persons (Budget Statement 2008). Various training programmes for youth and for the poor to develop entrepreneurial skills and establish small businesses and self-employment skills also contribute to the struggle to reduce poverty in the twin island state.

63 10. CONCLUSION

This background on poverty in Trinidad and Tobago serves to assist the novice to the field of applied social sciences, and in particular, to the study of poverty and low income communities to understand the nature of poverty within this national context. In keeping with the development goals of the twenty –first century of which a primary aim is the reduction and eventual eradication of poverty, this review of literature and highlighting of key issues for studying low income populations will be useful for assisting in the design of macro level interventions for different professions and disciplines in the area of poverty reduction.

The literature surveyed provides helpful insights on key aspects of poverty as a concept , causes of poverty and the historical patterns and geographical patterns of poverty and socio-cultural concepts of poverty in Trinidad and Tobago since the initiation of poverty assessments over 30 years ago. The key sources used are:

 A publication of the World Bank by Baker, Judy L. Report No.14382-TR. Trinidad and Tobago. Poverty and Unemployment in an Oil Based Economy. October 27, 1995. Country Department III.

 National publications produced by the state or by private contractors to the state: The Household Budgetary Surveys (HBS) 1975, 1981/2, 1988 1997/98; The Survey of Living Conditions of 1992; Survey of Living Conditions (2005).

 Kairi (2007) Analysis of the Trinidad and Tobago Suvey of Living Conditions, 2005, Kairi Consultants ltd.

 Melville, Juliet and Wint, Eleanor (2007) A New Perspective on Poverty in the Caribbean: The Strength of a Participatory Approach, Ian Randle Publishers, Kingston, Miami.

64 The groups of persons most likely to be poor have been identified as: The elderly, children, the disabled, small scale farmers and unskilled workers, large intergenerational households and seasonal workers. The highest percentage of the nation’s poor were found in Nariva/ Mayaro (24%), Victoria (15%) and St. Andrew/St. David (14%). In terms of household groups 21.4% of female headed households were considered to be poor.

The paper also introduces the reader to some of the discussion concerning the recognition of different types of capital as an aide to understanding poverty and some of the concepts that need to be considered in the development of projects and programmes to improve the conditions of life of the poor especially those in poor communities. The include an appreciation of the social conditions in these environments, non-physical forms of capital and political power and its influence on the distribution of resources.

Whereas available studies do provide quantitative data on poverty there remain many unaddressed issues. One shortcoming is the unavailability of relatively easily accessible qualitative studies of poverty that give voice to the poor. Cambridge (2003) does include self perceptions of the poor on their situation, however, her study is limited to one community, Beetham Gardens, and is a small sample. The second is the absence of comparable poverty data over a period of time. The Household Budgetary Survey through six year periodic assessments does provide one of the better sources of comparatative data over time, nevertheless its data remains descriptive of consumption patterns. Causal analyses of the past and emerging experiences of poverty by the nation still remain to be addressed. Lastly even though there are many social programmes aimed at reducing poverty very little is known of their impact on reducing poverty within the nation state.

65 11. REFERENCES

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Cambridge, Innette (2003), The quality of life in a low-income urban community: The Case of Beetham Gardens, Department d’etudes urbaines et touristiques, University de Québec à Montréal.

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71 APPENDIX 1. OUTLINE OF SOCIAL SUPPORT SERVICES PROVIDED IN TRINIDAD AND TOBAGO

Service Other Ministry of Social Development Ministry of Ministry of Ministry of Public Nongovernmental Provider programmes Community Health Utilities and the Organisations Development, Environment Culture and Gender Affairs Description Unemployme The Micro Enterprise Loan (MEL) Minor Repairs Anti Retroviral The Hardship Relief These of Service nt Relief Facility. Construction Grant Treatment Programme organizations often Programme Facility (in Programme work in This is a community empowerment collaboration with the It is executed by the collaboration with Adult and poverty reduction initiative, National commission Charitable ministry in government Education which equips Community Based for Self Help) Cardiac Surgery collaboration with the ministries. Programme organisations (CBOs) to actively Programme Water and Sewerage engage in promoting sustainable Facility provides Authority (WASA) Community livelihoods among the poor. building materials to Chronic Disease Education destitute families and Assistance Plan Aims of Programme- Skills Aims to provide micro loans and senior citizens whose (C-DAP) i) To provide Programme support to micro entrepreneurs homes are in dire financial relief on need of repairs or Medical Aid water rates for Youth Beneficiaries- recipients of public reconstruction due to Youth Health qualified old age Training and assistance; subsistence level or damage from fires, Programme160 pensioners, and Employment minimum wage earners; floods or other recipients of public Partnership unemployed who live in natural disasters assistance or Programme impoverished conditions disability grant. ii) (YTEPP) Also facilitates the enhance the real Limited Services provided to borrowers: repairs of dilapidated income of Community based business loan or damaged materials beneficiaries of the services; Business training for all such as wooden programme interested persons; After-loan flooring boards,

160 Ministry of Social Development 2005

72 services and business support galvanize sheeting, Beneficiaries- wooden window and recipients of old age Objectives- i) contribute to the frames, wooden pension, public reduction of poverty by facilitating doors, ceilings, assistance or the creation of sustainable flooring joists, disability grant who livelihoods; ii) Empower CBOs to rafters, steps and owns one residential discharge micro credit services; iii) partitions property in Class A2 Support and promote (water supply is entrepreneurship at the community Beneficiaries receive externally serviced, level a maximum of $10, i.e. pipes are located 000 in building outside the dwelling); Operating offices are in Belmont, materials for repair Class A3 (water Tobago, St. Joseph, Mayaro and work supply is internally Four Roads Tamana156 serviced, i.e. pipes Eligibility inside); Class A4 Public Assistance Programme (water supply is (PAP) (In collaboration with the Criteria – Programme internally serviced Social Welfare Office) demands that and metered up to recipients meet i) an 150 cubic meters). Provides grants to needy citizens income eligibility Class A2 receives a criteria, ii)recipients $70 rebate per year Eligibility criteria: persons who are work through a on water bill. Class unable to earn a living to support community driven / A3 and 4 receive themselves or dependents because community $100 respectively161. of illness or injury; unemployed; organization (e.g unemployable; guardians of needy Kiwanis), iii) tenancy children or ownership criteria (dwelling must be Grant is also paid on behalf of owner occupied), iv) fatherless children (whether dead, tenancy requirement

156 Ministry of Social Development 2005 161 Ministry of Social Development 2005: 27

73 imprisoned, or have deserted them) (property must be freehold, leased or Grants are as follows: One person - rented; v) $470 monthly; Two persons- $710 Regularized squatting monthly; Three persons- $920 requirement if they monthly; Four persons or more- are from squatting $1,090 monthly households159.

Aim of PAP- to provide financial relief to needy persons and needy children for meeting basic needs157

Urgent Temporary Assistance Programme (in collaboration with Welfare Division)

Programme provides grants to nationals who are in dire need of financial assistance for a temporary period

Aim to provide financial assistance toward the purchase of necessary items for persons in dire need and in crisis situations

Beneficiaries may be victims of natural disasters who have lost all of their possessions, or as a result of death of breadwinner of family,

157 Ministry of Social Development 2005 159 Ministry of Social Development 2005

74 victims of domestic violence, persons on welfare in dire need

Guidance and counseling services are also provided to beneficiaries

May also provide assistance to parents of special needs children in the form of transport to school, school uniforms for the needy

Provides an Emergency Cases Fund for the purchase of household articles, clothing, textbooks, pharmaceuticals, materials for house repairs, funds for rent, and for domestic house help

Also provide funeral assistance and help with accessing medical equipment

Old Age Pension Programme

Disability Assistance Grant158

158 Ministry of Social Development 2005

75 APPENDIX 2. MAPS OF TRINIDAD AND TOBAGO SHOWING COUNTIES AND PARISHES

76