National Assessment Team (NAT)Ministry of Economic Development, Commerce and Industry, and

Consumer Protection – Policy and Planning Unit (PPU)

BELIZE’S COUNTRY POVERTY ASSESSMENT 2009

Summary of the CPA Findings

Background

It is the 3rd exercise to be conducted in Belize, the two others were held in 1995-1996 and 2002.

Results from CPAs have been used in the design of poverty reduction initiatives such as Social Investment Funds, rural enterprise development, and human settlements projects.

These results have also informed the design of other projects in the education, agriculture and health sectors.

CPA Objectives

To identify the current extent, characteristics, trends and causes of poverty in Belize.

To assess the effectiveness of current policies and programmes and their impact on the poor and the vulnerable.

  To make recommendations for future policies and

programmes that can be incorporated into the current NPEAP.

Study Organisation The CPA will be a collaborative effort by

consultants (TOC) and Belizean Stakeholders (NAT)

Team Co-ordinator: Joe Wood

Team of Consultants (TOC)

Specialist Team Members

Government of Belize

Other agencies - public and private sectors, NGOs

Caribbean Development Bank (supervisory role)

National Assessment Team (NAT)

Local Co-ordinator (LC): Carlos Pol

Ministry of Economic Development

National Human Development Advisory Committee

Principal Elements of the CPA

Living Standard Measurement Survey (LSMS)

Participatory Poverty Assessments (PPAs)

Institutional Analysis (IA)

LSMS Methodology

1. The LSMS was carried out in over 2400 HHs in April and May 2009 by SIB staff.

2. The LSMS questionnaire gathered information at the household and individual levels.

3. Questions related to demographic, health, education, housing, household expenditure, crime, food security, government programmes, economic activities and coping strategy were asked.

The Definition of Poverty

This and other CPAs adopt a wide definition of poverty which includes: - income poverty- lack of basic needs, e.g. water, roads, adequate housing, basic education and health services. - lack of wellbeing resulting from the above and from insecurity, vulnerability and inequality.

The underlying thread is that poverty is related to the lack or deprivation of factors which are necessary for an acceptable quality of life.

Measurement of Poverty in Belize

Given the difficulties in defining poverty, it is no surprise that the measurement of poverty is also problematic.

CPA methodology required the calculation of two poverty lines:

The Indigent Line (IL)- represents the minimum cost of a food basket (MFB) needed to provide a healthy diet for an adult male. Households whose expenditure is below this amount are defined as either indigent, critically poor or severely poor

The Poverty Line - is made up of the IL together with an allowance for non-food expenditure.

2002 & 2009 Indigent and Poverty Lines

District Daily Cost Annual Cost

2002 2009 2002 2009

Belze $ 3.64 $ 5.36 $ 1,328 $ 1,958

Cayo $ 3.03 $ 4.91 $ 1,105 $ 1,791

Corozal $ 3.41 $ 5.35 $ 1,244 $ 1,953

Orange Walk $ 3.33 $ 5.32 $ 1,215 $ 1,942

Toledo $ 4.29 $ 6.12 $ 1,565 $ 2,234

Stann Creek $ 3.41 $ 5.99 $ 1,244 $ 2,186

Country $ 3.47 $ 5.50 $ 1,265 $ 2,005**

Poverty in Belize increased between 2002 & 2009

- From 24.5% to 31% of households and from 33.5% to 41.3% of the population.

- Severe poverty increased from 7.5% to 10.4% of households and 10.8% to 15.8% of the population.

7.5% 10.4% 10.8% 15.8%

17%20.6% 22.7%

25.5%

75.5%69% 66.5%

58.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hholds 2002 Hholds 2009 Pop 2002 Pop 2009

Indigent Poor (not indigent) Not Poor

Increased throughout the country with the exception of

Toledo where poverty decreased a littleAll Poor

26

35

25 27

35

79

56

43

29

4144

60

0

10

20

30

40

50

60

70

80

90

Corozal OrangeWalk

Belize Cayo StannCreek

Toledo

2002 2009

A similar pattern is observed for indigent

poverty Indigence

6 75 5 6

56

21

15

6

12

19

50

0

10

20

30

40

50

60

70

80

Corozal OrangeWalk

Belize Cayo Stann Creek Toledo

% P

op

ula

tio

n I

nd

igen

t

2002 2009

Several reasons why the increase

Problems with key sectors/ employers such as the banana, cane and citrus, garments and, recently, the Corozal Free Zone.

Little ‘trickle-down’ impact from major growth areas such as San Pedro and Placencia, and the oil sector.

Severe flooding in parts of the country in 2007 and 2008.

A general stagnation of the economy with little increase in GDP per capita with more unemployment.

2009 Poverty Rates by Age Group

16%

21%

16%

13%

9%

12%

26%

29%

27%

22%

22%

22%

59%

50%

57%

64%

68%

66%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ALL

Under 15

15-24

25-44

45-64

65+

Age

Gro

up

Indigent Poor (excl. indigent) Not Poor

Poverty has increased for all age groups – young & old, urban & rural, female & male

headed HHs

Category 2002 2009

ALL Households 24.5% 31%

Urban – all poor pop. 23.7% 27.9%

Rural – all poor pop. 44.2% 55.3%

Poor Male-headed HH 26% 32%

Poor Female-headed HH 22% 29%

ALL Population 33.5% 41.3%

<15 years 40% 50%

65+ years 27% 34%

Difficulties faced by communities - PPAs

Note the primacy of economic issues and the frequency of political problems.

‘Seek assistance from a politician’ was also cited most frequently as the main coping strategy when households ran into financial difficulties.

Summary by Broad Category

Political 48 21%

Economic 81 35%

Health/ Education/ Social 50 22%

Infrastructure 40 17%

Environmental 11 5%

Total Mentions 230 100%

Community PPAs Priorities Enhanced education, training, job opportunities.

Access to land, credit and markets to pave the way for work and a sustainable livelihood.

Better designed and targeted safety nets for those who need them.

Better infrastructure, health care and community and sports facilities.

The depoliticising of services and assistance.

Poverty Among Vulnerable Groups

Older Population

Poverty amongst the elderly is lower than for the population as a whole reflecting the availability of family support and the fairly widespread distribution of pensions, including the NCP which is specifically targeted at the elderly poor with little or no family support.

The likelihood of poverty amongst the elderly however varies substantially with their living situation.

30% of the elderly live either on their own or as a couple while the majority live with other family members.

Poverty Amongst the Older Population

Living Situation Indigent Poor ALL Poor Not Poor

ALL % of Elderly

Single elderly 8% 15% 23% 77% 100% 15%

Elderly couple 5% 16% 22% 78% 100% 15%

Living with other family members 15% 25% 40% 60% 100% 70%

All Elderly 12% 22% 34% 66% 100% 100%

Families and Children Main cause of poverty the same as for other groups – lack

of income.

BUT impact can be much more serious if relationships are unstable.

These can then induce a cycle of risky behaviour which leads to poverty in the future.

These factors can be caused by factors other than poverty: infidelity, family conflict and neglect of children, peer pressure, need for self esteem, ignorance of parental responsibilities.

Families and ChildrenThere is not an immutable causal relationship between income poverty or household structure, and well-being.

Poverty Rates

Distribution of ALL Child Households Type of Household Poor Not poor Total

No Children 18% 82% 100% 35%

With Children 40% 60% 100% 65%

ALL Households 33% 67% 100% 100%

Child households only

Single parent 33% 67% 100% 16%

2 parents 41% 59% 100% 57%

HoH caring for children of others 38% 62% 100% 18%

Extended h’holds 56% 44% 100% 9%

Institutional Analysis - Positives

A very wide range of social sector and other programmes operated by

government and NGOs.

A generally favourable public perception of these programmes.

Total social spending has been little impacted by the economic

recession and the country’s large debt burden.

A large number of hard working and dedicated professionals (govt.,

NGOs and voluntary).

An increased perception that buy-in by potential beneficiaries & their

participation throughout the entire project cycle is crucial to success.

A police force actively involved in community policing and outreach

activities.

Institutional Analysis – Negatives

Lack of resources leading to understaffing and inadequate admin., O & M which then adversely affects the services provided.

Difficulties in providing trained and committed staff to rural areas – just where they are needed most.

Inadequate management procedures to deal with staff concerns or those of the public.

Low coverage of most social and income generation programmes. Insufficient inter-agency co-ordination programmes: duplication,

poor implementation. Not enough sharing of programme strengths and weaknesses. Political interference in the identification of beneficiaries for

government programmes and land allocations.. Social spending is likely to come under increasing pressure as debt

repayments increase, especially if government revenues decrease.

The Economic Causes of Poverty in Belize

Lack of investment

due to poor security / perceived corruption.

Depressed local or

international markets for goods.

World market prices

Natural disasters. Resource depletion.

Low demand for jobs and goods.

│

Exploitation. Profiteering.

Lack of labour laws/ trade unions

Hoarding. Inequitable

terms of trade. High

taxation

No/ limited natural

resources No jobs

Lack of skills

No Work

Low pay

High prices

INSUFFICIENT INCOME

↑

↑

The Non-economic Causes of Poverty in BelizeRisk Factors

Macro-environment

Economy/ employment

Poverty/ inequality Risky youth behaviour

Negative youth outcomes

Negative adult outcomes

Cultural/ historical attitudes → Early sexual

initiation → Un- or under-employment → Unemployment

Micro-environment Unsafe sex Poor physical/ mental health

Poverty/ low earnings

Peers/ Role Models/ Social Networks → School non-

attendance → Teenage pregnancy → Uninvolved

parent

Family Crime and violence Social exclusion

Sexual / physical abuse

Poverty; low parental education

Substance abuse/ dealing Incarceration

Substance abuse

Parental absence → Homelessness/ vagrancy → Death →

Criminal behaviour

Parental substance/ physical/ sexual abuse Incarceration

Individual Death

Physical/ mental/ learning disability, aggressive behaviour

↑ ← ← ↓

Recent Events CPA 2009 was finalized in August 2010.

CPA 2009 was shared with the NHDAC for approval by

mid-September 2010.

CDB officially hand over the CPA to Cabinet on October

5, 2010.

CPA to placed on SIB and GoB websites. Hard copies will

be disseminated with all stakeholders.

User-friendly version (reduced) in English and Spanish

have just been completed. Hard copies will be printed.

The Way Forward Gov’t finances are likely to be constrained in the short &

medium terms. This puts a premium on making the best use of the funds available by improving the management and effectiveness of current government operations.

The CPA team believes that there is substantial scope to improve the well-being of its pop. over the coming years as well as reducing the likelihood of poverty occurring in the future.

The CPA team has made numerous recommendations which address all the issues discussed in the report.

The NPESAP 2009-2013 to be revised based on new CPA findings.

Continue implementation of the NPESAP.

THANK YOU FOR YOUR

ATTENTION