y FINAL REPORT VOLUME 1 – MAIN REPORT in the Face of Vulnerabilit in the Face y Povert g Dominica: Reducin COUNTRY POVERTY ASSESSMENT – DOMINICA COUNTRY COUNTRY POVERTY ASSESSMENT DOMINICA VOLUME 1 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 collaboration with the NATIONAL ASSESSMENT TEAM OF DOMINICA COUNTRY POVERTY ASSESSMENT DOMINICA 2008/09 TABLE OF CONTENTS LIST OF TABLES .................................................................................................................................................... VI LIST OF FIGURES .................................................................................................................................................... X LIST OF ACRONYMS/ ABBREVIATIONS ..................................................................................................... XII EXECUTIVE SUMMARY ................................................................................................................................... XIV Process ............................................................................................................................................... xiv Context ............................................................................................................................................... xv Findings .............................................................................................................................................. xv Recommendations .............................................................................................................................. viii CHAPTER ONE: INTRODUCTION ...................................................................................................................... 1 1.1 BACKGROUND ............................................................................................................................................... 1 1.2 DEFINING POVERTY ..................................................................................................................................... 2 1.3 TERMS OF REFERENCE ................................................................................................................................. 4 1.3.1 OBJECTIVES .............................................................................................................................. 5 1.4 THE PARTNERS .............................................................................................................................................. 7 1.5 STRUCTURE OF THE REPORT ..................................................................................................................... 8 CHAPTER TWO: METHODOLOGY .................................................................................................................... 9 CHAPTER TWO: METHODOLOGY .................................................................................................................... 9 2.1 SURVEY OF LIVING CONDITIONS (SLC) AND HOUSEHOLD BUDGETARY SURVEY (HBS) ..... 9 2.2 THE PARTICIPATORY POVERTY ASSESSMENT (PPA) ....................................................................... 10 2.3 INSTITUTIONAL ASSESSMENT (IA) ........................................................................................................ 11 2.4 MACRO SOCIO-ECONOMIC ANALYSIS ................................................................................................. 12 CHAPTER THREE: GEOGRAPHY, HISTORY AND POPULATION .......................................................... 13 3.1 GEOGRAPHY ................................................................................................................................................. 13 3. 2 HISTORY ........................................................................................................................................................ 14 3.3 POPULATION ................................................................................................................................................ 15 3.3.1 Social Stratification ................................................................................................................... 18 CHAPTER FOUR: MACRO-ECONOMIC AND SOCIAL ANALYSIS ......................................................... 19 4.1. INTRODUCTION .......................................................................................................................................... 19 VOLUME I: MAIN REPORT/ii COUNTRY POVERTY ASSESSMENT DOMINICA 2008/09 4.2. INTERNATIONAL CONTEXT ................................................................................................................... 22 4.3. REGIONAL CONTEXT ................................................................................................................................ 24 4.4. DOMESTIC CONTEXT ................................................................................................................................ 27 4.4.1 Overview of Dominica’s Economy ............................................................................................ 27 4.4.2 Economic Performance............................................................................................................... 29 4.4.3 Fiscal Performance ..................................................................................................................... 30 4.4.4 Trade .......................................................................................................................................... 33 4.5 REMITTANCES .............................................................................................................................................. 36 4.6 TOURISM ........................................................................................................................................................ 37 4.7 POVERTY REDUCTION ............................................................................................................................... 37 CHAPTER FIVE: KEY POVERTY AND VULNERABLITY INDICATORS ................................................. 41 5.1 THE INDIGENCE LINE ................................................................................................................................ 41 5.2 THE POVERTY LINE .................................................................................................................................... 41 5.3 THE VULNERABILITY LINE ....................................................................................................................... 42 5.4 THE HEADCOUNT INDEX ......................................................................................................................... 43 5.5 THE POVERTY GAP AND POVERTY SEVERITY INDEX ...................................................................... 44 5.6 THE GINI COEFFICIENT OF INEQUALITY ............................................................................................. 45 5.7 ECONOMIC SITUATION OF HOUSEHOLDS ......................................................................................... 47 5.7.1 PERFORMANCE ON THE MILLENIUM DEVELOPMENT GOALS ............................... 48 5.7.2: Climate Change and Vulnerability in Dominica ...................................................................... 59 CHAPTER SIX: THE FACE OF POVERTY IN DOMINICA ........................................................................... 62 6.1 GEOGRAPHIC DISTRIBUTION OF POVERTY ........................................................................................ 62 6.2 DEMOGRAHIC DISTRIBUTION OF POVERTY ....................................................................................... 65 6.3 EMPLOYMENT STATUS OF THE POOR .................................................................................................. 67 6.4 PHYSICAL LIVING CONDITIONS OF THE POOR ................................................................................. 69 6.4.1 MEAN HOUSEHOLD SIZE ................................................................................................... 69 6.4.2 DWELLING CONDITIONS .................................................................................................... 70 CHAPTER SEVEN: LABOUR MARKET ISSUES ............................................................................................. 78 7.1 INTRODUCTION ........................................................................................................................................... 78 7.2 SLC LABOUR MARKET DATA ................................................................................................................... 78 7.3 OCCUPATIONAL PROFILE ........................................................................................................................ 80 CHAPTER EIGHT: EDUCATION ........................................................................................................................ 87 8.1 INTRODUCTION ........................................................................................................................................... 87 8.1.1 LITERACY ................................................................................................................................ 87 8.2 SCHOOL ENROLLMENT............................................................................................................................