Poverty Reduction Strategy Paper - UNDP Barbados and the OECS ...

CHAPTER 2: THE POVERTY SITUATION
2.1 Poverty Profile
Fundamental to all definitions of poverty is the concept of a lack of resources. According
to the World Bank (1990) 'poverty is the inability to maintain a minimal standard of
living'. Inherent in this definition are issues of objectivity, subjectivity, absolute and
relative poverty. Kairi further complicates the issue by introducing different types of
poverty i.e: structural, chronic and transitory poverty while CY Thomas adds that "[it] is
not just economic,..... It is also social, political and cultural." The consensus though, is
that poverty is a multi-dimensional, complex phenomenon and that it exists to a troubling
degree in developing countries.
Poverty in SVG is measured in terms of income and consumption levels. According to
(Kairi 1996) the poverty line determined that 38 percent of the population was poor, and
of this 26 percent was classified as indigent. Thirty-one percent of households was found
to be poor and of this 20 percent was below the indigent line. Households and individuals
below the poverty line are unable to satisfy their basic nutritional requirements and are at
risk of chronic ill health.
While poverty levels remain relatively stable over time, the economy has experienced
some severe shocks since 1995 and a recent study by Kairi 14 indicates a resulting
worsening of the situation. Notable among recent developments are the sharp decline in
the banana industry and the events of September 11 2001, which have left large numbers
of the population unemployed, and increased the ranks of those Kairi describes as the
‘transitory poor’.
Poverty in SVG is not confined to any particular locale, but is widespread and deep,
affecting with particular severity children, women and the elderly who together account
for a significant percent of the estimated population. Of particular concern also is the
26.9% of youths considered to be living below the poverty line.
2.1.1. Characteristics of the Poor
Studies have shown that while the poor in many instances have a low educational base
and lack the formal skills necessary for the job market, they own or have access to land
and invariably to other assets.
CY Thomas 15 provides a defining list of the characteristics of poor persons which
actually reflects the situation of the 38% poor in St. Vincent and the Grenadines :
14 Kairi Consultants : Socio – Economic Impact of Restructuring the Banana Industry – Vol. I, 2001
15 C.Y.Thomas, Ibid, p.7
Final SVG I-PRSP Revision June 2003
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