POVERTY ASSESSMENT REPORT – GRENADA VOLUME 1 OF 2 October 15 1999 Poverty Assessment Report - Grenada Vol. 1 of 2 : i Poverty Assessment Report - Grenada Vol. 1 of 2 : ii TABLE OF CONTENTS 1.0 INTRODUCTION .............................................................................................................................1 1.1 DEFINITIONS AND MEASURES OF POVERTY .....................................................................................2 1.2 CAUSES OF POVERTY........................................................................................................................3 1.3 NATURE OF THE TASK ......................................................................................................................3 1.4 OUTLINE OF STUDY ..........................................................................................................................8 2.0 THE SOCIETY AND POLITY OF GRENADA ............................................................................9 2.1 GEOGRAPHY......................................................................................................................................9 2.2 THE HISTORICAL SETTING ...............................................................................................................9 2.3 INTERNATIONAL AND REGIONAL RELATIONS .................................................................................19 2.3.1 Governance..............................................................................................................................20 2.3.2 Ethnicity...................................................................................................................................21 2.3.3 NGOs, CBOs and Civil Society ...............................................................................................21 2.3.4 Other Societal Factors.............................................................................................................22 2.4 POPULATION GROWTH ...................................................................................................................23 2.5 THE MACRO-ECONOMY .................................................................................................................26 2.5.1 Central Government ................................................................................................................33 2.5.2 The Private Sector ...................................................................................................................39 2.6 PERFORMANCE AND PROSPECTS OF KEY SECTORS........................................................................40 2.6.1 The Agricultural Sector ...........................................................................................................40 2.6.2 Tourism....................................................................................................................................42 2.6.3 Manufacturing .........................................................................................................................44 2.6.4 Other Sectors ...........................................................................................................................46 2.6.5 The Informal Sector .................................................................................................................47 2.6.6 Unemployment .........................................................................................................................48 2.6.7 Commercial Banking ...............................................................................................................49 2.6.8 The Inflation Factor.................................................................................................................51 2.6.9 Economic Challenges ..............................................................................................................52 3.0 ORGANISATIONAL STRUCTURES, INSTITUTIONAL FRAMEWORK AND POVERTY..............................................................................................................................54 3.1 DEVELOPMENTAL INSTITUTIONS ...................................................................................................57 3.1.1 Agriculture...............................................................................................................................57 3.1.2 Manufacturing .........................................................................................................................61 3.1.3 Informal Sector Support ..........................................................................................................62 3.1.4 Capacity Building ....................................................................................................................63 3.1.5 Other Developmental Initiatives..............................................................................................66 Poverty Assessment Report - Grenada Vol. 1 of 2 : iii 3.2 PREVENTIVE SERVICES...................................................................................................................66 3.2.1 Health ......................................................................................................................................67 3.3 REMEDIAL SERVICES......................................................................................................................72 3.4 SUPPORTIVE SERVICES...................................................................................................................73 3.5 CONCLUSION ..................................................................................................................................75 4.0 THE NATURE OF POVERTY IN GRENADA..............................................................................76 4.1 KEY FINDINGS OF THE SURVEY OF LIVING CONDITIONS ...............................................................76 4.1.1 Overview..................................................................................................................................76 4.1.2 Origins and Causes: Why are the Poor, Poor.........................................................................77 4.1.3 Magnitude: Estimates Of Poverty In Grenada ........................................................................77 4.1.4 Characteristics Of The Poor In Grenada ................................................................................81 4.1.4.1 Age ....................................................................................................................................81 4.1.4.2 Geographic Distribution....................................................................................................84 4.1.4.3 Gender...............................................................................................................................86 4.1.4.4 Ethnicity ............................................................................................................................87 4.1.4.5 Labour Force Activity.......................................................................................................87 4.1.4.6 Geographic Distribution of the Unemployed Poor............................................................91 4.1.4.7 Education ..........................................................................................................................93 4.1.4.8 Health and the Environment..............................................................................................96 4.1.4.9 Household Headship .........................................................................................................99 4.1.4.10 Housing Amenities..........................................................................................................106 4.1.4.11 Anthropometric ...............................................................................................................108 4.1.5 Relationship between Expenditure and Other Factors..........................................................109 4.2 COMMUNITY SITUATIONAL ANALYSES .......................................................................................110 4.2.1 The Poor Communities ..........................................................................................................110 4.2.2 Perspectives of Poor Communities........................................................................................111 4.2.3 Physical and Material............................................................................................................112 4.2.4 Economic ...............................................................................................................................114 4.2.5 Resource Base........................................................................................................................115 4.2.6 Social .....................................................................................................................................116 4.2.6.1 Education............................................................................................................................116 4.2.6.2 Family/Households.............................................................................................................117 4.2.6.3 Social Networks .................................................................................................................119 4.2.6.4 Community Organisations..................................................................................................119