August 2007 Living Conditions in Antigua and Barbuda: Poverty in a Services Economy in Transition Volume I – Main Report Prepared by Kairi Consultants Ltd in Association with the National Assessment Team of Antigua and Barbuda Living Conditions in Antigua and Barbuda: Poverty in a Services Economy in Transition Volume I – Main Report Submitted to: THE CARIBBEAN DEVELOPMENT BANK Submitted by: KAIRI CONSULTANTS LIMITED 14 Cochrane Street, Tunapuna, Trinidad and Tobago, West Indies Tel: 868 663 2677; Fax: 868 663 1442 Website: www.kairi.com In Association with: THE NATIONAL ASSESSMENT TEAM OF ANTIGUA AND BARBUDA Living Conditions in Antigua and Barbuda: Poverty in a Services Economy in Transition TABLE OF CONTENTS LIST OF TABLES ................................................................................................................................ VIII LIST OF FIGURES...............................................................................................................................XIV LIST OF BOXES .................................................................................................................................... XV LIST OF ABBREVIATIONS ..............................................................................................................XVI EXECUTIVE SUMMARY ................................................................................................................XVIII PART I: ANALYTICAL FRAMEWORK AND METHODOLOGY................................................1 CHAPTER 1 – INTRODUCTION ................................................................................................................2 1.1 Background To Study................................................................................................................2 1.2 Analytical Framework...............................................................................................................3 1.3 Structure Of The Report ...........................................................................................................5 CHAPTER 2 – METHODOLOGY ................................................................................................................6 2.1 The Survey Of Living Conditions And Household Budgetary Survey ...................................6 2.2 Institutional Analysis ...............................................................................................................8 2.3 The Participatory Poverty Assessment .....................................................................................9 2.4 Analysis Of The Macro Socio- Economic Environment .........................................................12 2.5 Estimating Unmet Basic Needs ..............................................................................................12 CHAPTER 3 – INTERNATIONAL AND MACRO ECONOMIC CONTEXT .................................................14 3.1 Country History And Background .........................................................................................14 3.2 Vulnerability, Special And Differential Status.......................................................................17 3.3 Macroeconomic Performance..................................................................................................18 3.4 Fiscal Operations.....................................................................................................................18 3.5 Visitor Arrivals .......................................................................................................................25 3.6 The Polity ................................................................................................................................26 3.7 Migrant Workers.....................................................................................................................26 3.8 Government And Business Relations .....................................................................................27 3.9 Oil Prices.................................................................................................................................28 3.10 Labour .....................................................................................................................................29 3.11 The Press.................................................................................................................................29 3.12 Governance Indicators And Human Rights ...........................................................................29 3.13 Summary.................................................................................................................................31 PART II: POVERTY IN ANTIGUA AND BARBUDA - FINDINGS OF THE CPA..................33 CHAPTER 4 – THE FACE OF POVERTY IN ANTIGUA AND BARBUDA.................................34 4.1 Characterising Poverty ...........................................................................................................34 4.2 Key Poverty Indicators............................................................................................................35 VOLUME 1 – MAIN REPORT ii Living Conditions in Antigua and Barbuda: Poverty in a Services Economy in Transition 4.2.1 Indigence, Poverty And Vulnerability.....................................................................35 4.2.2 Inequality .....................................................................................................................38 4.2.3 Poverty Severity And Depth.....................................................................................42 4.3 Household Characteristics.......................................................................................................42 4.4 Household Consumption.........................................................................................................44 4.5 The Geographic Distribution Of Poverty................................................................................45 4.6 Demographic Distribution Of Poverty ...................................................................................48 4.6.1 Age................................................................................................................................48 4.6.2 Ethnicity .......................................................................................................................51 4.7 People’s Perspectives On Poverty ...........................................................................................52 4.8 Characteristics Of The Poor ....................................................................................................55 4.8.1 Age Distribution .........................................................................................................55 4.8.2 Gender Distribution ...................................................................................................56 4.8.3 Household Size And Composition...........................................................................56 4.8.4 Household Durables Owned By Poor Households ...............................................57 4.8.5 Educational Attainment.............................................................................................59 4.9 The Probability Of Being Poor In Antigua And Barbuda ......................................................59 CHAPTER 5 – SPECIAL GROUPS AT RISK.....................................................................................61 5.1 Women ....................................................................................................................................61 5.1.1 Access To Services And Facilities.............................................................................67 5.1.2 How Women Cope With Poverty ............................................................................67 5.2 Youth.......................................................................................................................................67 5.2.1 Coping With Poverty .................................................................................................71 5.3 The Elderly..............................................................................................................................71 5.3.1 Access To Services And Facilities.............................................................................72 5.3.2 Coping With Poverty .................................................................................................72 5.3.3 Case Study...................................................................................................................73 CHAPTER 6 – THE LABOUR MARKET, INCOME AND POVERTY ..........................................76 6.1 Labour Force Participation......................................................................................................76 6.1.1 Male Labour Force Participation ..............................................................................76 6.1.2 Female Labour Force Participation ..........................................................................76 6.1.3 Labour Force Participation By Household Heads .................................................78 6.1.4 Non Participants By Sex And Age ...........................................................................80 6.1.5 Non Particiants By Sex And Educational Attainment...........................................80 6.2 Employment Status.................................................................................................................81