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

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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
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