Living Conditions in Antigua and Barbuda - Caribbean Development

289 Pages·2007·2.25 MB·English

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: [phone]; Fax: [phone] 
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

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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
6.3 Employment By Sector/Industry ............................................................................................ 83
6.4 Income Sources........................................................................................................................ 86
6.5 Hours Worked ......................................................................................................................... 87
6.6. Coping Strategies .................................................................................................................... 89
CHAPTER 7 - EDUCATION AND HEALTH................................................................................... 91

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7.1 Education ................................................................................................................................ 91
7.1.1 Enrollment And Attendance ..................................................................................... 91
7.1.2 School Feeding And Textbook Programmes .......................................................... 94
7.1.3 Mode And Distance Travelled To School................................................................ 97
7.1.4 Adult Literacy ............................................................................................................. 98
7.1.5 Educational Attainment............................................................................................. 98
7.1.6 Public Perception Of The Role Of Education........................................................ 101
7.2 Health .................................................................................................................................... 103
7.2.1 Child Health .............................................................................................................. 103
7.2.2 Self Reported Health ................................................................................................ 106
7.2.3 Lifestyle Diseases...................................................................................................... 106
7.2.4 Number Of Work Days Lost Due To Illness ............................................................. 108
7.2.5 Access To Health Services.......................................................................................... 108
7.2.6 Satisfaction With Services........................................................................................ 110
7.2.7 Health Insurance....................................................................................................... 110
7.2.8 Personal Security ...................................................................................................... 111
7.2.9 Public Perceptions Of Health Issues ...................................................................... 113
CHAPTER 8 - HOUSING AND PHYSICAL LIVING CONDITIONS ........................................ 114
8.1 Tenancy Of Dwelling............................................................................................................ 114
8.2 Type Of Dwelling Unit......................................................................................................... 114
8.3 Main Roofing Material ......................................................................................................... 117
8.4 Material Of Outer Walls....................................................................................................... 117
8.5 Main Cooking Fuel................................................................................................................ 117
8.6 Type Of Toilet Facility .......................................................................................................... 119
8.7 Main Water Source ............................................................................................................... 119
8.8 Lighting /Main Energy Source ............................................................................................. 122
8.9 Overcrowding........................................................................................................................ 122
8.10 Access To Internet And Telephone Services ......................................................................... 124
8.11 PPA Perspectives On Physical Conditions In Communities ............................................... 124
8.12 Publicly Provided Services And Facilities ............................................................................ 128
8.13 The Environment .................................................................................................................. 129
PART III: COPING WITH POVERTY– INSTITUTIONS AT WORK IN
ANTIGUA AND BARBUDA.............................................................................................................. 132
CHAPTER 9 – INSTITUTIONAL REVIEW .................................................................................... 133
9.1 Introduction .......................................................................................................................... 133
9.2 Development-Oriented Agencies .......................................................................................... 133
9.2.1 Social Transformation .............................................................................................. 134
9.2.1.1 Community Development . 135
9.2.2 Economic Development And Planning ................................................................. 136

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9.2.2.1 Economic Policy And Planning Unit ..................................................... 136
9.2.2.2 National Economic And Social Council ................................................ 136
9.2.2.3 Industrial Development Board............................................................... 137
9.2.2.4 Division Of Industry And Commerce ................................................... 138
9.2.3 Tourism ...................................................................................................................... 138
9.2.3.1 Other Aspects Of Tourism ...................................................................... 139
9.2.4 Agriculture And Fishing.......................................................................................... 140
9.2.4.1 Central Marketing Corporation (CMC)................................................. 140
9.2.4.2 Ministry Of Agriculture........................................................................... 141
9.2.4.3 Gilbert Agricultural And Rural Development Center (GARD)......... 141
9.2.4.4 Central Farmers Cooperative.................................................................. 142
9.2.4.5 Fishermen’s Cooperative......................................................................... 143
9.2.5 Credit .......................................................................................................................... 143
9.2.6 Education And Training ............................................................................................ 144
9.2.7 Gender And Development ...................................................................................... 147
9.2.8 Culture........................................................................................................................ 147
9.2.9 Disability .................................................................................................................... 148
9.2.10 Utilities ....................................................................................................................... 149
9.2.11 The Labour Market................................................................................................... 149
9.3 Preventive Agencies .............................................................................................................. 152
9.3.1 Children And Family Services ................................................................................ 152
9.3.2 Primary Health Care ................................................................................................ 153
9.3.3 Substance Abuse ....................................................................................................... 154
9.3.4 Solid Waste Management........................................................................................ 155
9.3.5 Public Works And Building Construction ............................................................ 155
9.3.6 Environmental Conservation And Management................................................. 156
9.3.7 Immigration Control . 157
9.3.8 Control Of Crime ...................................................................................................... 158
9.4 Remedial Agencies................................................................................................................. 159
9.5 Supportive Agencies.............................................................................................................. 160
9.5.1 Social Security ........................................................................................................... 160
9.5.2 Social Welfare............................................................................................................ 161
9.5.3 Violence And Abuse Against Women................................................................... 162
9.5.4 Salvation Army Girls’ Home................................................................................... 163
9.5.5 Education Support. 164
9.5.6 Disaster Management . 164
9.6 Summary............................................................................................................................... 164
CHAPTER 10 – POVERTY AND ADJUSTMENT.......................................................................... 170
10.1 Developing Home-Grown Recipes ........................................................................................ 170
10.2 Private Sector As Engine Of Growth.................................................................................... 172

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10.3 Managing The Social Fall-Out Of Adjustment.................................................................... 173
10.4 Growth Of The Underground Economy ............................................................................... 174
10.5 Family Life And Community Relations ................................................................................ 175
10.6 Labour Productivity .............................................................................................................. 176
10.7 Health And Wellness............................................................................................................. 177
10.8 Housing................................................................................................................................. 178
10.9 Community Development And Social Welfare ..................................................................... 178
10.10 Performance On The MDGs ................................................................................................. 179
CHAPTER 11 – POLICY IMPLICATIONS......................................................................................... 182
11.1 Macro-Policy Formulation and Economic Management ...................................................... 182
11.1.1 Assumptions and Background ............................................................................... 182
11.1.2 Findings...................................................................................................................... 183
11.1.3 Implications for Policy ............................................................................................. 184
11.2 Resources for Domestic Businesses ....................................................................................... 187
11.2.1 Assumptions and Background .............................................................................. 187
11.2.2 Findings ...................................................................................................................... 188
11.2.3 Implications for Policy ............................................................................................. 189
11.3 Expanding the Social Infrastructure..................................................................................... 189
11.3.1 Assumptions and Findings ..................................................................................... 189
11.3.2 Implications for Policy ............................................................................................. 190
11.4 Vulnerable Groups ................................................................................................................ 191
11.4.1 Assumptions and Findings ..................................................................................... 191
11.4.2 Implications for Policy................................................................................................ 193
11.5 Underground Economy and Security....................................................................................... 193
11.5.1 Assumptions............................................................................................................... 193
11.5.2 Implications for Policy............................................................................................... 194
11.6 Conclusion.............................................................................................................................. 194
PART IV: REDUCING POVERTY IN ANTIGUA AND BARBUDA........................................ 195
CHAPTER 12 – TOWARDS POVERTY REDUCTION IN ANTIGUA AND BARBUDA ............ 196
12.1 National Programme for Poverty Reduction ........................................................................ 196
12.2 Knowledge, Learning and the Individual.............................................................................. 199
12.2.1 Broadly Based Work-Force Upgrading ................................................................. 202
12.2.2 Special Provisions to Complement Participation of Mothers
in Programmes in workforce upgrading............................................................... 204
12.2.3 Social Marketing of Wellness .................................................................................. 204
12. 3 Transformation of the Public Service ....................................................................................205
12.3.1 Upgrade of Public Service ....................................................................................... 206
12.4 Macro-Economic Adjustment And Economic Development ................................................ 207

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12.4.1 Macro-Economic Adjustment Complemented By Industrial Policy
and Tax Reform and Supported With The Development
Of Entrepreneurship ................................................................................................ 208
12.4.2 Inshoring of Off-Shore’ Resources Held By Nationals Abroad ......................... 208
12.4.3 Entrepreneurial Development ................................................................................ 209
12.4.4 Tourism and Related Development ....................................................................... 209
12.4.5 Agricultural Development ........................................................................................ 210
12.5 Physical Planning And Development................................................................................... 210
12.5.1 Upgrading of Building Codes................................................................................. 211
12.5.2 Inculcating Environmental Sensitivity and Measuring Impacts........................ 212
12.5.3 Development of New Nodes of Growth ............................................................... 212
12.5.4 Squatter Regularisation and Slum Clearance ....................................................... 213
12.6 Social Integration And Social Protection.............................................................................. 213
12.6.1 Strengthening Social Safety Net ............................................................................. 214
12.6.2 Coordination and Enhancement of Community Interventions ........................... 215
12.6.3 Disaster Management .............................................................................................. 216
12.6.4 Implementation Local Government Reform......................................................... 216
12.6.5 Improve Public Order .............................................................................................. 217
12.6.6 Social Protection........................................................................................................ 218
12.7 Creating and Sustaining a Poverty Reduction Process in Antigua and Barbuda................ 218
12.8 Conclusion............................................................................................................................. 221
APPENDICES ........................................................................................................................................ 222
APPENDIX I – SUMMARY AGENDA OF NEW ADMINISTRATION....................................................... 223
APPENDIX II – THE RISK OF BEING POOR IN ANTIGUA AND BARBUDA ....................................... 224
TECHNICAL APPENDIX TO CHAPTER 4............................................................................................... 233

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LIST OF TABLES

EXECUTIVE SUMMARY
Table 1: Summary Poverty and Vulnerability Indicators ......................................................xxi
Table 2: Social Characteristics of Households ...................................................................... xxiii
CHAPTER 2
Table 2.1: Domains of Study in the SLC/HBS 2005/06 .............................................................. 7
Table 2.2: Poverty Scoring System ................................................................................................ 13
CHAPTER 3
Table 3.1: Gross Domestic Product by Economic Activity in Constant Prices (EC$ mn)...... 19
Table 3.2: Supply of Credit by Sector............................................................................................ 20
Table 3.3: Central Government Expenditure (EC$ mn) ............................................................. 21
Table 3.4: Total Public Sector Debt Outstanding for ECCB Member Countries (EC$ mn) ... 22
Table 3.5: Comparative GDP/Tax Ratios in Selected OECS Countries ................................... 23
Table 3.6: Central Government Revenue (EC$ mn).................................................................... 24
Table 3.7: Antigua and Barbuda Visitors Arrivals by Country of Origin - 1998 to 2004....... 26
Table 3.8: Governance Indicators by Country (Percentile Ranks, 2004-2005)* ....................... 30
CHAPTER 4
Table 4.1: Poverty Estimates 2005/06 ........................................................................................... 36
Table 4.2: Summary Vulnerability Indicators Antigua and Barbuda 2005/06 ....................... 38
Table 4.3: Distribution of Expenditure by Decile ........................................................................ 40
Table 4.4: Nutritional and Immunization Status of Children - Selected
Communities (2005)....................................................................................................... 41
Table 4.5: Comparative Quintile Estimates of Household Characteristics.............................. 43
Table 4.6: Mean Annual Expenditure –Food and Non Food - by Quintiles............................ 44
Table 4.7: Share of Food and Non Food Expenditure by Quintiles.......................................... 44

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Table 4.8 Headcount, Poverty Gap and Poverty Severity by District 2005/06...................... 46
Table 4.9: Percentage Distribution of District Population According to
Socio Economic Status................................................................................................... 47
Table 4.10: Distribution of District Population across Socioeconomic Groups ........................ 47
Table 4.11: Distribution of Age Cohorts across Socioeconomic Groups.................................... 49
Table 4.12: Age distribution within Socioeconomic Status.......................................................... 50
Table 4.13: Distribution of Indigent Children (Aged 0 -14) by District ..................................... 50
Table 4.14: Distribution of Population by Ethnicity and Quintiles ............................................ 51
Table 4.15 Population Distribution by Quintile According to Ethnicity ................................... 52
Table 4.16: Socio-Economic Status Based on Poverty Line and Perceived
Socio Economic Rating of Household......................................................................... 53
Table 4.17: Per Capita Expenditure Rating versus Subjective Poverty Rating of Household 53
Table 4.18: Distribution of Poor and National Population by Gender....................................... 56
Table 4.19: Size of Poor Households ............................................................................................... 56
Table 4.20: Dependency Ratio for Poor Population...................................................................... 57
Table 4.21: Assets Owned by Poor Households............................................................................ 58
Table 4.22: Highest Level of Education Attained by Poor Persons 15 Years and Over........... 59
CHAPTER 5
Table 5.1: Labour Force Participation of Women by Socio-Economic Status.......................... 62
Table 5.2: Employment Status of females 15 years and Over................................................... 62
Table 5.3: Women in Labour Force by Highest Level of Education and Socioeconomic
Status................................................................................................................................ 63
Table 5.4: Distribution of Female Workers 15 Years and Over by Type and Quintiles......... 64
Table 5.5: Females (15+) by Union Status and Socio-economic Status..................................... 65
Table 5.6: Poor Women by Present Union Status and No. of Live Births................................ 66
Table 5.7: Youths (aged 15-24) Currently Attending School by Type of
School/Grade by Sex..................................................................................................... 70

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