AA NN AA PPOOOOVVEERRTTYY RREEDDUUUUCCTTIIOONN YY SSTTTTRRAATTEEGGYY PPAAPPEEEERR UU GG 2200001111--22001155 JULY2011 GG UUYYAANNAA PP OOVVEERRTTYY RR SS PP EEDDUUCCTTIIOONN TTRRAATTEEGGYY AAPPEERR 22001111--22001155 22001111 JJUULLYY ACRONYMS ACP African, Caribbean and Pacific ADR Alternate Dispute Resolution ADP Agricultural Diversification Programme AFHEP Amalia Falls Hydroelectric Project AIDS Acquired Immune Deficiency Syndrome AML/CFT Anti Money Laundering/Combating the Financing of Terrorism API Annual Production Incentive ARV Anti-retroviral ART Anti-retroviral Therapy BCCP Basic Competency Certificate Programme BEAMS Basic Education Access & Management Support BCGI Bauxite Company of Guyana Incorporated BNA Basic Needs Approach BNP Basic Nutrition Program BNTF Basic Needs Trust Fund BoG Bank of Guyana BOOT Build-Owned-Operate-Transfer BOS Bureau of Statistics BPRS Budget Preparation and Reporting Systems BWIs Bretton Woods Institution BSCP Building Social Cohesion Programme BSD Bank Supervision Department CAC Convention Against Corruption CARICOM Caribbean Community CAT Convention Against Torture CBO Community Based Organization CDB Caribbean Development Bank CDC Community Development Council CEDAW Convention on the Elimination of all Forms of Discrimination against Women CERD Committee on the Elimination of Racial Discrimination CH&PA Central Housing & Planning Authority CIDA Canadian International Development Assistance CJIA Cheddi Jagan International Airport CMRs Community Monitoring Reports CNCDs Chronic Non-Communicable Diseases COTED Council of Trade and Economic Development CPCE Cyril Potter College of Education CRC Convention on the Rights of the Child CRFM Caribbean Regional Fisheries Management CSEC Caribbean Secondary Education Certificate CSO Civil Society Organization CXC Caribbean Examinations Council D&I Drainage and Irrigation DAC Development Assistance Committee DIA Diversification Institutional Arrangement DFID UK -Department for International Development DOTS Direct Observed Treatment Short-course DPP Director for Public Prosecutions IDA International Development Association ECE EarlyChildhood Education EFA – FTI Education for All –Fast Track Initiative 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 Organization FDI Foreign Direct Investment FIA Financial Institutions Act FMAA Fiscal Management and Accountability Act GBET Guyana Basic Education Teacher Training Programme GDP Gross Domestic Product GEAP Guyana Education Access Project GECOM Guyana Elections Commission GEMP Guyana Economic Management Programme GGMC Guyana Geology and Mines Commission GIS 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 GNI Gross National Income 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 GWI Guyana Water Incorporated HIES Household Income and Expenditure Survey HIPC Heavily Indebted Poor Country Initiative HIV Human Immunodeficiency Virus IACAC Inter-American Convention Against Corruption IAST Institute of Applied Science & Technology ICCPR International Convention on Civil and Political Rights ICT Information and Communications Technology IDA International Development Association IDB Inter-American Development Bank IDCE Institute of Distance and Continuing Education IFAD International Fund for Agricultural Development IFMAS Integrated Financial Management Accounting System IMCI Integrated Management of Childhood Illnesses IMF International Monetary Fund IPED Institute of Private Enterprise Development IRA Interactive Radio Instruction ISO International Standards Organization IT Information Technology LCDS Low Carbon Development Strategy LCS Living Conditions Survey LEAF Linden Economic Advancement Fund LEAP Linden Economic Advancement Project LINMINE Linden Mining Company LIS Low Income Settlement LSMS Living Standards Measurement Survey LTR Land Tenure Regularization M&E Monitoring and Evaluation MCH Maternal and Child Health MDGs Millennium Development Goals MDRI Multilateral Debt Relief Initiative MICS Multiple Indicators Cluster Survey 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 MTEF Medium Term Expenditure Framework NARI National Agricultural Research Institute NBS New Building Society NCERD National Centre for Educational Resources and Development NDC Neighborhood Development Council NDDP National Dairy Development Programme NDIB National Drainage and Irrigation Board NDS National Development Strategy NGMC New Guyana Marketing Corporation NGO Non Governmental Organization NHP National Health Plan NIS National Insurance Scheme NPTA National Procurement and Tender Administration NPTB National Procurement and Tender Board NPV Net Present Value NRW Non Revenue Water OAP GoG Old Age Pension programme OAS Organization of American States OBMI Omai Bauxite Mines Inc. OB/ SPS Office of the Budget / State Planning Secretariat ODA Official Development Assistance OECD Organization of Economic Cooperation and Development PAHO Pan American Health Organization PCMS Project Cycle Management System PCPMU Policy Coordinationand Programme Management Unit PCU Project Cycle Unit PEMs Public Expenditure Management PEPFAR President Emergency Plan for AIDS relief PETR Poverty Expenditure Tracking Report PEU Project Execution Unit PLWHA Persons Living with HIV/AIDS PMTCT Prevention of Mother to Child Transmission PPC Public Procurement Commission PPP Priority Poverty Programme / Project PPPs Public Private Partnerships PPGHS Package of Publicly Guaranteed Health Services 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 REDD Reducing Emissions from Deforestation and Forest Degradation RDC Regional Democratic Councils RHA Regional Health Authority RUSAL Russian Aluminum Company SIMAP Social Impact Amelioration Program SIP School Improvement Plans SMIS School Management Information System SPAP Single Parent Assistance Programme SPS Sanitary and Phytosanitary Systems SSRP Secondary Schools Reform Programme STI Sexually Transmitted Infections SWAPs Sector wide Approaches SWTT Single Windows for trade transactions TB Tuberculosis TIN Tax Identification Number TRAP Tax Reform Action Plan TRIPS Total Revenue Integrated Processing System TTPDB Trade Transactions Public Private Dialogue Body TVET Technical and Vocational Education and Training UAEP Unserved Areas Electrification Programme UDP Urban Development Programme UG University of Guyana UN United Nations UNDP United Nations Development Programme VAT Value Added Tax VCT Voluntary Counseling and Testing WB World Bank WHO World Health Organization WOW Women of Worth microcredit facility WWF World Wildlife Fund T Executive Summary ……………………………. i A CHAPTER 1:INTRODUCTION ……………………………. 1 CHAPTER 2:POVERTY ANALYSIS ……………………………. 5 The Consumption Approach toMeasuring Poverty using the HIES ……………………………. 6 B The Methodological Context ……………………………. 6 Definition of Poverty ……………………………. 6 L Extreme & Moderate Poverty Lines ……………………………. 7 Results of the 2006 Poverty Survey & Poverty Trends in Guyana ……………………………. 7 Headcount index ……………………………. 7 E Urban-Rural Poverty ……………………………. 8 Poverty Gaps & Poverty Severity ……………………………. 8 Demographic Poverty Profile ……………………………. 9 Ethnic Poverty Profile ……………………………. 9 Poverty Propensities ……………………………. 10 O Inequality in Consumption ……………………………. 10 Coping Strategies ……………………………. 13 F Basic Needs Approach in Measuring Poverty ……………………………. 13 Home Ownership ……………………………. 13 Access to Water ……………………………. 13 Access to Electricity ……………………………. 13 Access to Education ……………………………. 14 C Access to Health Care ……………………………. 15 Meeting the MDG Goal to Eradicate Poverty in Guyana ……………………………. 16 O Summary ……………………………. 17 CHAPTER 3: REVIEW OF GOVERNANCE,REGULATORY REFORMS & ……………………………. 18 ECONOMIC POLICIES,2001-2010 N Introduction ……………………………. 18 Review of Governance Reforms ……………………………. 18 T Inclusive Governance ……………………………. 18 Public Accountability ……………………………. 20 Rule of Law including the Administration of Justice ……………………………. 22 E Local Government ……………………………. 23 International Agreements & Treaty Obligations ……………………………. 23 N Review of Economic Policies …………………………… 24 Maintaining Macroeconomic Stability …………………………… 24 T Fiscal Policy ……………………………. 25 Tax Reform ……………………………. 26 S Expenditure Policy Reforms ……………………………. 27 Monetary Exchange Rates & Price Performance ……………………………. 27 T Evaluation of Policies to Support Private Sector Growth ……………………………. 28 Export Investment Promotion & Development of Small ……………………………. 28 A Businesses Restructuring & Modernizing the Traditional Sector ……………………………. 29 CHAPTER 4: INFRASTRUCTURE TO SUPPORT GROWTH ……………………………. 30 B Roads & Bridges ……………………………. 30 Air Transport ……………………………. 31 L River Transport ……………………………. 31 Drainage &Irrigation ……………………………. 31 Sea Defenses ……………………………. 32 E Power Generation & Supplies ……………………………. 32 CHAPTER 5: REVIEW OF SOCIAL SECTOR PROGRAMMESAND POLICIES ……………………………. 33 Education ……………………………. 35 Health Sector ……………………………. 35 Social Safety Nets ……………………………. 37 O Water ……………………………. 38 Housing ……………………………. 39 F CHAPTER 6: PRSP CONSULTATIONS ……………………………. 41 Thematic Group Consultations ……………………………. 41 Issues and Recommendations Arising from Consultations ……………………………. 41 CHAPTER 7: OVERVIEW OF THENATIONAL DEVELOPMENTAGENDA: ……………………………. 47 2011-2015 C Introduction ……………………………. 47 The Context of the PRSP ……………………………. 47 Challenges ……………………………. 48 O Financing ……………………………. 49 Human Resource ……………………………. 49 N Information & Communication Technology ……………………………. 49 Global Uncertainties ……………………………. 49 T Climate Change ……………………………. 50 Opportunities ……………………………. 50 Geography & Language ……………………………. 50 E Cross Cutting Issues ……………………………. 50 Disaster Risk Management ……………………………. 51 N Mainstreaming of Environmental Sustainability ……………………………. 51 Role of Other Stakeholders ……………………………. 51 CHAPTER8: MEDIUM TERM POLICIESTO SUPPORT GROWTH ……………………………. 52 T Maintaining a Sound Macroeconomic Framework ……………………………. 52 Maintaining Fiscal Sustainability ……………………………. 52 S Tax Administration ……………………………. 52 Expenditure Management & Controls ……………………………. 53 Monetary Policies, Exchange Rate & Price Stability ……………………………. 53 Debt Sustainability ……………………………. 54
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