© 2006 International Monetary Fund October 2006 IMF Country Report No. 06/364 Guyana: Poverty Reduction Strategy Paper Progress Report 2005 Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country’s macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document for Guyana is being made available on the IMF website by agreement with the member country as a service to users of the IMF website. To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to [email protected]. Copies of this report are available to the public from International Monetary Fund • Publication Services 700 19th Street, N.W. • Washington, D.C. 20431 Telephone: (202) 623-7430 • Telefax: (202) 623-7201 E-mail: [email protected] • Internet: http://www.imf.org Price: $18.00 a copy International Monetary Fund Washington, D.C. ©International Monetary Fund. Not for Redistribution This page intentionally left blank ©International Monetary Fund. Not for Redistribution ©International Monetary Fund. Not for Redistribution VERTY REDUCTION STRATEGY – PROGRESS REPORT 2005 ACRONYMS ACP African, Caribbean and Pacific States AIDS Acquired Immune Deficiency Syndrome AML/CFT Anti Money Laundering/Combating the Financing of Terrorism API Annual Production Incentive ARV Antiretroviral Therapy BCCP Basic Competency Certificate Programme BEAMS Basic Education Access & Management Support BCGI Bauxite Company of Guyana Inc. BNTF Basic Needs Trust Fund BoG Bank of Guyana BSCP Building Social Cohesion Programme BSD Bank Supervision Department CARICOM Caribbean Community CBO Community Based Organisation CDB Caribbean Development Bank CDC Community Development Council CH&PA Central Housing & Planning Authority CIDA Canadian International Development Assistance CJIA Cheddi Jagan International Airport COTED Council of Trade and Economic Development CPCE Cyril Potter College of Education CRFM Caribbean Regional Fisheries Management CSO Civil Society Organisation CXC Caribbean Examinations Council D&I Drainage and Irrigation DFID Department for International Development DOTS Direct Observed Treatment IDA International Development Association E-HIPC Enhanced Heavily Indebted Poor Country Initiative EPA Environmental Protection Agency EPMU Expenditure Programming Management Unit ERC Ethnic Relations Commission EU European Union FAO Food and Agriculture Organisation FDI Foreign Direct Investment FIA Financial Institutions Act ©International Monetary Fund. Not for Redistribution VERTY REDUCTION STRATEGY – PROGRESS REPORT 2005 GBET Guyana Basic Education Teacher Training Programme GDP Gross Domestic Product GEAP Guyana Education Access Project GGMC Guyana Geology and Mines Commission GIS ARCVIEW Geographic Information System GIS/SME Geographical Information System/School Mapping Exercise GLSC Guyana Lands and Survey Commission GMA Guyana Manufacturing Association GNBS Guyana National Bureau of Standards GNCB Guyana National Cooperative Bank GOG Government of Guyana GOINVEST Guyana Office for Investment GPAS Guyana Protected Area System GPF Guyana Police Force GPHC Georgetown Public Hospital Corporation GPL Guyana Power and Light GRA Guyana Revenue Authority GT&T Guyana Telephone and Telegraph Company GUYSUCO Guyana Sugar Corporation GUYWA Guyana Water Authority GWI Guyana Water Incorporated HIES Household Income and Expenditure Survey HIPC Heavily Indebted Poor Country Initiative HIV Human Immuno-deficiency Virus IAST Institute of Applied Science & Technology ICT Information and Communications Technology IDB Inter-American Development Bank IFMAS Integrated Financial Management Accounting System IMF International Monetary Fund IPED Institute of Private Enterprise Development IRA Interactive Radio Instruction ISO International Standards Organisation IT Information Technology LEAF Linden Economic Advancement Fund LEAP Linden Economic Advancement Project LINMINE Linden Mining Company LSMS Living Standards Measurement Survey LTR Land Tenure Regularisation M&E Monitoring and Evaluation ©International Monetary Fund. Not for Redistribution VERTY REDUCTION STRATEGY – PROGRESS REPORT 2005 MDGs Millennium Development Goals MIS Management Information System MLHSS Ministry of Labour, Human Services and Social Security MoE Ministry of Education MoF Ministry of Finance MoH Ministry of Health MoHW Ministry of Housing and Water MOU Memorandum of Understanding NCERD National Centre for Educational Resources and Development NDC Neighbourhood Development Council NDDP National Dairy Development Programme NGMC New Guyana Marketing Corporation NGO Non Governmental Organisation NHP National Health Plan NIS National Insurance Scheme NPTB National Procurement and Tender Board OAS Organisation of American States OBMI Omai Bauxite Mines Inc. PAHO Pan American Health Organisation PCMS Project Cycle Management System PCPMU Policy Coordination and Programme Management Unit PCU Project Cycle Unit PEU Project Execution Unit PLWHA Persons Living with HIV/AIDS PMTCT Prevention of Mother to Child Transmission PPC Public Procurement Commission PRGF Poverty Reduction Growth Facility PRS Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper PSCES Parliamentary Sectoral Committee on Economic Services PSM Public Service Ministry RDCs Regional Democratic Councils RUSAL Russion Aluminium Company SIMAP Social Impact Amelioration Program SIP School Improvement Plans SMIS School Management Information System SSRP Secondary Schools Reform Programme TB Tuberculosis TIN Tax Identification Number ©International Monetary Fund. Not for Redistribution VERTY REDUCTION STRATEGY – PROGRESS REPORT 2005 TVET Technical and Vocational Education and Training UG University of Guyana UNDP United Nations Development Programme VAT Value Added Tax WB World Bank WHO World Health Organisation WWF World Wildlife Fund ©International Monetary Fund. Not for Redistribution EXECUTIVE SUMMARY ………………………………i C H A P T E R 1 Introduction: The Context The Domestic Environment………………………………1 The External Situation………………………………1 Major Challenges ………………………………2 Achieving PRSP Targets and the Millenium Development Goals ………………………………3 Organisation of the Report ………………………………3 C H A P T E R 2 Guyana’s Long Term Poverty Profile & Trends Introduction………………………………5 Measuring Poverty ………………………………5 Poverty Trends ………………………………6 Population ………………………………6 Tenure Status of Dewlings………………………………8 Water ………………………………8 Sanitation ………………………………9 Electricity ………………………………9 Education ………………………………9 Health ………………………………11 Labour Force Participation………………………………12 Poverty and Vulnerability ………………………………12 Disability ………………………………13 Geographic Distribution of Access ………………………………13 HIV/AIDS ………………………………14 C H A P T E R 3 Review of the Economy, Governance and Institutional and Regulatory Framework The Macro Economic Framework………………………………15 TABLE OF CONTENTS Prudent Macroeconomic Policies ………………………………15 Debt Management ………………………………16 Fiscal and Monetary Reforms………………………………17 Creating Opportunities for Private Sector Growth………………………………18 Investment Promotion ………………………………18 Export Promotion ………………………………19 Expanding the Economic Base to Benefit the Poor ………………………………20 Restructuring and Modernising the Traditional Sector ………………………………20 Agriculture ………………………………20 Rural Agriculture………………………………20 The Sugar Sub-Sector………………………………21 ©International Monetary Fund. Not for Redistribution The Rice Sub-Sector………………………………21 Forestry Sector ………………………………24 Mining Sector ………………………………24 Developing New Sectors to Support Growth ………………………………25 Institutional and Regulatory Reforms ………………………………25 Reforms to Enhance the Business Environment ………………………………25 Land Development and Allocation ………………………………27 Public Accountability & Governance………………………………28 Local Government ………………………………29 Decentralisation of Public Services ………………………………29 The Justice System & Crime Prevention ………………………………30 The Disciplined Forces Commission ………………………………31 C H A P T E R 4 Investment in Human and Social Services Investment in Human Capital ………………………………33 Education ………………………………34 Improvement in the Quality of the Delivery of Education ………………………………35 Teacher Training ………………………………35 Improving Equity in the Education Sector ………………………………36 Increasing the Level of Commitment of Students, Parents & Communities ………………………………37 Strengthening Financial & Management Systems ………………………………37 National Assessments ………………………………37 Health ………………………………38 The Legislative Framework ………………………………38 Human Resources Development………………………………38 Doctors ………………………………39 Nurses ………………………………41 Medexes ………………………………41 Improving & Expanding Health Infrastructure ………………………………42 Drug Procurement & Distribution ………………………………42 Technological Capacity ………………………………43 TABLE OF CONTENTS Health Promotion ………………………………43 Water ………………………………43 Housing ………………………………44 Social Safety Nets ………………………………45 Social Impact Amelioration Programme (SIMAP) ………………………………46 Basic Needs Trust Fund (BNTF) ………………………………47 The Environment ………………………………47 Conservation & Sustainable Use of Biodiversity ………………………………47 Environmental Management ………………………………48 Education Information & Training ………………………………49 Support Systems ………………………………49 ©International Monetary Fund. Not for Redistribution C H A P T E R 5 Infrastructure