Documentof The WorldBank FOROFFICIALUSEONLY ReportNo. 35623-GD GRENADA JOINT IDA-IMF STAFFADVISORY NOTE ONTHE INTERIM POVERTY REDUCTIONSTRATEGY PAPER April 28, 2006 Prepared by the Staffs o f the International Monetary Fund(IMF) and the International Development Association (IDA) This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not otherwise be disclosed without World Bankauthorization. - 2 - INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION GRENADA Joint StaffAdvisoryNote(JSAN) of the InterimPovertyReductionStrategyPaper (I-PRSP) Prepared by the Staffs o f the InternationalMonetary Fund(IMF) and the International DevelopmentAssociation (IDA) Approved by Jose Fajgenbaum and Matthew Fisher (IMF), and Pamela Cox (IDA) March28,2006 I.INTRODUCTION 1. This document represents thejoint advice o fthe staffs o f the World Bank and the International Monetary Fundon the Interim Poverty Reduction Strategy paper (I-PRSP) prepared by the Government o f Grenada and submitted to the Bank and the Fundon March 27,2006. This I-PRSP outlines the main areas o f intervention envisaged by the authorities to reduce poverty as well as the steps to be undertaken inthe preparation o fthe fillPoverty Reduction Strategy (PRS). The fillPRSP could improve on the I-PRSP by buildingon its strength o f inclusiveness, strengthening its policy focus, including the link betweenpolicy andresource use and elaborating a clear framework for the coordination and monitoring o f the strategy. - 3 - 11. BACKGROUND 2. Grenada has solid democratic traditions and a strong focus on social policies. Democratic institutions and practices provide a strongbasis for broad popular participation. This has been coupled with sensitivityto social developments, concern about labor issues, and a free press. The relatively small size o f the population allows for close community contact and social coherence, and for open and, at times, heated debate. Inthis context, broad national consultations on major policy issues are needed, and are common. Many o f the important measures underpinningthe current reform program have also been publicly debated. 3. Grenada has a good track record of commitment to fighting poverty and data on the poverty situation could be further improved. The Poverty Eradication Strategy (PES)-to be presented to the Boards o f the Bank and the IMF as Grenada's I-PRSP-is one of several documents that havebeen prepared inrecent years to advance the country's social development agenda. Another similar document was the Poverty Assessment Survey o f 1999. More recent work includes: (i) Macro-Socio-Economic Assessments o f Damage caused by Hurricanes Ivan (2004) and Emily (2005), by the Organization o f Eastern Caribbean States (OECS); (ii) the Core Welfare Indicator Questionnaire (CWIQ) survey o f households (National Statistics Office, with support from UNDP and the World Bank- 2005); and (iii)the assessment o f Recent Natural Disasters and their Impact on Grenada's Achievement o f its Millennium Development Targets and Goals (MDGs-2005). - 4 - 111. THEINTERIM PRSP 4. The PES was initially prepared in 2004 and has been updatedinlight of the large-scale social and economic dislocation caused by Hurricanes Ivan and Emily. Hard- pressed by capacity constraints and time, the authorities have revisedtheir PES as a first step toward a full-fledged (PRSP). The Strategy has the following strengths: (i) it has benefited from consultations at different levels o f society; (ii)makes reasonably good use o fthe data it from past social surveys; (iii)it catalogues existing social programs andprojects; (iv) it outlines the authorities' medium-term economic reform program; and (v) it describes the process for preparing the full PRS. 5. The 2006 Budget was used to launch the government's reformprogram and affirms the importance it attaches to social development. The 2006 budget, entitled "Focusing on Youth Development, Poverty Reduction and Stability,'' outlines the authorities' comprehensive medium-term reform program. Itpresents a range o f programs that seek to address social needs arising from the impact o fthe hurricane. The budget also provides for increased social spendingon vulnerable groups affected by the recent sharp rise inworld oil prices. A. Poverty Diagnosis and Policies 6. The PES contains a good diagnosis of the nature of poverty inGrenada. Comprehensive information on poverty indifferent segments o f the population and among households i s available, including geographical and demographic characteristics, and a gender profile. This data provides a good baseline for measuringprogress toward achieving the MDGs. However, the analysis presented inthe I-PRSP is still mainlybased on a set o f - 5 - data which pre-dates the recent hurricanes. The inclusion o ftables summarizing the main poverty indicators from the 1999poverty assessment survey would have been useful. The use o fmore recent data along with preliminary conclusions on the effectiveness o f social programs wouldprovide key information on the social needs inthe post-hurricane period. It would also have enabled the authorities to track changes inpoverty over time, and get a better understandingo f the social vulnerabilities as a basis for targeting future policy interventions. 7, Natural disasters have reversed previous gains in several areas. According to the PES, in 1999,32 percent o f the population was poor, and the situation is likely to have worsened as a direct result o f Hurricanes Ivan and Emily. Government interventions-which included programs to enhance and diversify rural incomes, improve education and health outcomes, and offer social protection to the most vulnerablehadpreviously began to show encouraging progress. 8. The PES is focused on institutions and program activities.The full PRSP could improve on the PES by having greater emphasis on policy objectives to address poverty. Many o f the existingprograms and projects listed inthe PES were initiated on an ad-hoc basis; thus, they lack strategic focus, and their benefits are not always evident. The PES only includes a broad statement o f intentions to (i) adopt a more fonvard-looking approach better linkedto strategic objectives, and (ii) evaluate the effectiveness o f existing poverty-related programs and projects. But going forward, it will be important to prioritize and streamline these programs with respect to their effective contribution to the strategic objective o f poverty reduction, as well as cost effectiveness, and financing, and to clearly designate institutional responsibilities for implementation. It would also be useful to indicate whether - 6 - the programs were part ofthe central government budget. The staffs encourage the authorities to address these issues by distinguishinginthe PRSP the discussion o fpolicies and activites that they intendto pursue to reduce poverty and by discussing measuresto address weaknesses that have been identified inexisting programs, including weaknesses in project design, implementation and management. 9. Recent measures to improve the social safety net represent a useful first step in strengthening the social development agenda. The 2006 budget includes an increase in monthly transfers to needy elderly persons, mainly inrural areas, from EC$100 (US$37) to EC$135 (US$50) at an estimated annual cost o f about 0.3 percentage points o f GDP. In addition, the budget includes a significant allocation for low-income housingprojects and support for farmers whose livelihoods havebeenseverely affected by the hurricanes. Although the PES contains a longdescriptive list o f Grenada's on-going social programs and projects, no reference i s made regarding these measures. The forthcoming PRSP will need to assess the consistency o f these and other social safety net measures with the government's broader poverty reduction objectives. B. Macroeconomic Framework 10. Discussion of the macroeconomic framework outlined in the 2006 budget i s also very limited. The PES only briefly outlines the mainparameters o f Grenada's macroeconomicprogram. The relationship between the many existing poverty alleviating projects and this macroeconomic framework i s also not clear. Inpart, this reflects capacity constraints as well as the fact that the bulk o f the PES was prepared before the current reform program was fdly fleshed out. Given the strong links betweenpoverty, growth, and - 7 - unemployment inGrenada, it will be important for the forthcoming PRSP to discuss these links and the economic growth rate requiredto advance the social agenda. The PRSP will also need to evaluate the full costs o f social policies and programs, relate them to the available budgetary envelope for capital investment, and identify the associated recurrent costs. The PES assumes-without yet assessingthe need for and availability o f financial resources-that considerable additional donor resources can be mobilized. This strong assumption also needs to be revisited. The economic reform program that the government has prepared is a strong one, and the fiscal reforms it envisages should help restore fiscal and debt sustainability. Inthis context, it will be important to avoid excessive non-grant financed spending which would delay the achievement o f such sustainability. C. Structural Reforms 11. A number of existing strategic sectoral studies could be usefulindeveloping Grenada's structural reform agenda. The linkages between specific social problems, poverty reduction objectives, and structural reforms envisaged under the program could have beenbetter articulated inthe PES. While structural reforms are stated as overall goals ("priority elements"), including inthe policy matrix, it would be important to go beyond these general precepts to indicate how the authorities intendto make these reforms operational and monitorable. To clearly formulate-and discuss with stakeholders-their action programs for the forthcoming full PRSP, the authorities can take advantage o f a number o frecent studies. These specific sectoral studies and blueprints were prepared with regional and international assistance, including from the World Bank'. The study on the ~ (i) FiscalIssues:Grenada:"Policies toAchieveFiscalSustainabilityandImproveEfficiencyand OECS EquityofPublic Expenditure," April 2004; (ii) "Towards a NewAgendafor Growth," April 2005; - 8 - "Modernization of the State Machinery" i s o f particular relevance. Inthis regard, the Government is already taking action to begin the process o fmodernizing its public sector with technical assistance support from the World Bank. D. Reconstruction Efforts 12. Reconstruction needs and efforts, and donor contribution, will deserve special attention inthe PRSP. The Grenadian authorities have proved to be quite effective and successhl inmobilizing donor assistanceinthe aftermath o f Hurricane Ivan and responding to the immediate needs o f the population. Inthe PRSP these efforts-and donors' response- could usefully be reflected inthe face o f specific long-term reconstruction and social rehabilitationneeds. One possibility would be for the Agency for Reconstruction and Development (ARD),presently focused on project screening and development, to take a prominent role inthe formulation and coordination o f the PRSP. Iv. TRANSPARENCY ACCOUNTABILITY AND 13. The authorities acknowledge in the PES that improving transparency of public financial management and strengthening fiscal monitoring are important objectives. Butthe PES does not articulate fully how these objectives will be accomplished. Going forward, improvingtransparency will, inparticular, require regular dissemination of information on budget implementation as well as strengthening accountability through audit reform. Clear steps toward achieving these goals over the medium term should be established, including reforms to enhance fiduciary oversight and enhance governance. (iii)"Institutions, Performance, and the Financing o f Infrastructure Services inthe Caribbean," June 2005; (iv) Caribbean: Social Protection Strategy Paper, November 2005. - 9 - v. PARTICIPATION, COORDINATIONAND MONITORING 14. Consultationswith civil society play a major role in policy formulation in Grenada. The PES has benefited from extensive public consultation. For the last several years, broad national and local consultations have preceded the preparation o f the budget. Participants have included representatives o f the opposition parties inParliament, non- governmental organizations, trade unions, and the wider public. Consultations on specific policy proposals are also commonplace, including most recently on the National Reconstruction Levy introduced inthe 2006 budget.The staffs understand that while trade unions inparticular remain strongly opposed to this measure, they were consulted extensively, and changes were also adopted by the government to address some o f the concerns raised by the unions. The staffs welcome this process o f national consultation, and recommend that the Government uses it to forge broad consensus around the forthcoming PRSP. Inaddition, the Government could benefit from regional consultations on opportunities for coordination in addressing economy o f scale issues which are best done on a regionalbasis. 15. The PRSP could be an important vehicle to enhance donor coordination. The government has consulted with donors during the preparation o f the PES. The staffs recommendthe continuation o fregular consultations with the donor community with a view toward increasingthe level of donor coordination and the involvement of the authorities and civil society inprogram implementation. 16. Efficient procedures to monitor and evaluate progress in implementing the poverty reduction strategy would have to be devised. The PES contains a comprehensive - 10- matrix o f strategic measures, with associated targets and relevant indicators, which testify to the authorities' ambitions to reduce poverty. However, monitoring progress on such a large scale may prove cumbersome, considering limited resources. Follow-up monitoring and evaluation mechanisms shouldbe more precisely defined and the number o f indicators limited to a few key targets. These mechanisms should also include elements o fparticipation by civil society. VI. PREPARATIONOFTHE PRSP 17. Broad public consultations and costing of programs and projects will be important for the PRSP that is being developed. Priority shouldbe given to assessing policy effectiveness, costing o f current and proposed programs and projects, and strengthening links to the macroeconomic framework. This should help to ensure that the PRS is aligned to the budget cycle. 18. To ensure that it becomes the mainvehicle for coordinating the government's social development agenda, the PRS needs to be results-oriented and rigorously forward-looking and the established benchmarks well publicized. This requires (i)establishing efficient mechanisms and easy-to-monitor indicators for progress, including toward the MDGs, (ii) refining the structural reform agenda, inparticular with a view to achieving sustainable economic growth through private sector development, (iii) providing more detailed and focused sector strategies based on an updated poverty analysis, (iv) clearly defining priority expenditures inthe framework o f a strengthened PSIP, and (v) enhancing public sector program and project implementation capacity. - 11- 19. Finally, the forthcoming PRSPwould benefit from another poverty assessment survey. This would help identify more fully the extent o fpoverty and guide priorities at the start o f the current economic reform program. This poverty assessment would need to be supplemented with regular (preferably annual) updates. Dissemination o f the findings o f the survey and how it i s influencing government policies would also be important. 03/28/06 09:19 FAX 2026237499 W H D -_.__- _------- 28/03 2006 09:Sl FAX 473 440 4115 ------- El002"' @I I ". HINISTRY OF FINANCE 002 Rei: No. ...................... , In replying lhc ;ihOvc MINISTRY OFFINANCE, Numlw:md d;iic orthis FINANCIALCOMPL,I!X, lcttcr should lx quorctl. `rmCAIZCNACE, sr.cEORCIC'S, GRENADA, W.I. March27, 2006 Mr.PaulWolfowitz, President, The World Rank 181811:Street,NW, Washington, DC 20433 USA Dear Mr.Wolfowitz. The attached document entitled Grenada: Povcrty Eradication Strategy outlines the Government of Grenada's social development agenda. Drawingon this document we are in the process of preparing a comprehensive poverty reduction strategy, which we cmpcct to finalize in the coming months. This document has benefited from extensive public consultation, and authorize the World Bank to arrange for it to be posted on the Bank's website. Sincerely HodAnthony Boatswain MlNIS'TEFiFOR FINANCE AND I"IANN1NG GOVERNMENT OF GRENADA POVERTYERADICATIONSTRATEGY March 2006 Ministryof Finance,Grenada Poverty Eradication Strategy Table of Contents 1. INTRODUCTION ..................................................................................................................... 4 1.1 Background ...................................................................................................................... 4 1.2 Government's Commitment to Poverty Eradication.................................................... 5 1.3 Macroeconomic Context and Progress .......................................................................... 7 1.3.1 8 1.3.2 Unemployment.,......................................................................................................... 8 Economic Performance:............................................................................................. 1.3.3 Inflation...................................................................................................................... 9 1.4 Past Policies ...................................................................................................................... 9 1.4.1 9 1.4.2 10 1.4.3 Public Sector Reform............................................................................................... PrivatizatiodCornmercialization Programme.......................................................... Structural Adjustment Programme............................................................................ 11 1.4.4 12 2. POVERTY SITUATION......................................................................................................... Economic Diversification ........................................................................................ 13 2.1 Country Poverty Assessment........................................................................................ 13 2.1.1 Poverty Profile......................................................................................................... 13 2.1.2 Causes of Poverty .................................................................................................... 14 2.1.3 Poverty and Coordination ........................................................................................ Characteristicsof the Poor....................................................................................... 15 2.1.4 20 2.1.5 Policy Recommendations......................................................................................... 21 22 3.2.2CURRENT The Core Welfare Indicators Questionnaire Survey.................................................. EFFORTS AT POVERTY ERADICATION....................................................... 24 3.1 Grenada Rural Enterprise Project (GREP) ................................................................ 27 3.2 Disaster Preparedness and Management..................................................................... 27 3.3 Biodiversity..................................................................................................................... Food Security Project .................................................................................................... 28 3.4 29 3.5 Climate Change.............................................................................................................. 30 3.6 Land Degradation.......................................................................................................... 31 3.7 32 Health and Nutrition...................................................................................................... Health Sector Reform.................................................................................................... 3.8 33 3.9 Education Reform.......................................................................................................... 33 3.10 National PhysicalDevelopment Plan ........................................................................... 35 3.11 Basic Needs Trust Fund(BNTF).................................................................................. Capacity Building and Institutional Strengthening.................................................... 37 3.12 38 3.13 Grenada HIV/AIDS Prevention and Control Project ................................................ 39 3.14 40 4. 3.15 - 40 NATIONAL POVERTY ERADICATION STRATEGY ....................................................... Current Programmes Conclusion.............................................................................. Social Safety Net Measures inthe 2006 Budget .......................................................... 41 4.1 Vision................................................................................................................................ 41 4.2 42 Programme Elements .................................................................................................... MediumTerm Framework........................................................................................... 4.3 43 5.4.4MONITORING Elements of NationalPoverty Eradication Strategy................................................... 44 46 5.1 MonitoringIndicators ................................................................................................... INDICATORS, RISK AND COSTING ....................................................... 46 .................................................................................................................. 2 Ministry of Finance, Grenada Poverty Eradication Strategy 5.2 R i s k s ................................................................................................................................ 46 5.3 Policy Area/Objectives ................................................................................................... Costing ............................................................................................................................ 47 2.2 50 3.2 Strategies and Measures ................................................................................................ 50 4.2 Targets ............................................................................................................................ 50 5.2 AIDS and other diseases................................................................................................ 54 6.2 Health sector reforms .................................................................................................... 54 Annexes Annex 1............................................................................................................................................ 50 Annex 2............................................................................................................................................ 62 .................................................................................................................. 3 Ministry of Finance, Grenada Poverty Eradication Strategy 1. INTRODUCTION 1.1 Background The Government o fGrenada ranks poverty eradication as a premier policy objective to be achieved through the promotion o f sustained and robust growth inthe economy and the creation o f employment, production and income generating activities especially inthe rural communities. In 1999,the Government o fGrenada elaborated a Poverty Assessment Survey which revealed significant gaps and shortcomings inthe social sector o f the Grenadian economy. The Survey identifiedthe need for a concerted effort bythe authorities to address the deteriorating state o f the social environment and to formulate a clear, consistent and integrated social policy framework and national plan for social development and poverty eradication. The expressed mediumterm goal as expressed in2000-2002 MediumTerm Economic Strategy Paper (MTESP) i s to "reposition the Grenadianeconomy as a more diversified, competitive andknowledgebased economy, thereby ensuring the quality o f life o f all its citizens i s permanently enhanced" (MTESP, 2000). The Government o f Grenada incooperation with civil society and incollaboration with regional and international organizations, inparticular the OECS, UNDP and CDB, developed and executed a detailed programme o f activities geared to inform a National Social Development Policy and Poverty Strategy and Plan. The Poverty Eradication Strategy was completed after wide rangingconsultations on the local level. The strategy reiterates government's commitments to the eradication o f poverty and highlights the importance o f engendering meaningful involvement of all stakeholders inorder to achieve economic growth and development andimprovements inthe social infrastructure . Subsequent to the completion o f the Poverty Eradication Strategy and Plan, Grenada suffered the devastating effects o ftwo major hurricanes and an unprecedented rise inprices due to oil price adjustments. On September 7th2004, hurricane Ivanunleashed its wrath on Grenada and left a trail o f damage inits path. A damage assessment report conductedby the Organization o f Eastern Caribbean States indicated that the damage amounted to over 200 percent o f the Country's gross domestic product. The assessment was done in four basic categories namely; social, productive, infrastructure, and environment, and the direct and indirect damages were computed. The extent o f the damage translated into serious consequences for the poverty situation inthe country. The overall computation o f the damage included a detailed macroeconomic assessment o f the economy prior to the disaster, the projected macroeconomic performance without the disaster, and the estimated economic performance Poverty Eradication Stratem o f the economy as a result o fboth direct and indirect costs and effects associated with Hurricane Ivan.The damage assessmentreport specifically recommended a rehabilitation and reconstruction strategy and programme, the need to reduce vulnerability over time and increase resilienceto natural disasters and the need for reconstructionefforts to be married with strategic policy interventions. The Government o f Grenadaheeded the advice o fthe experts and elaborated a detailed reconstructionand development programme. OnJuly 14,2005 inthe midst o fthe reconstructionand development programme, the country was again hit by a major hurricane. According to a report done by the Organization o f Eastern Caribbean States, the direct and indirect damage caused by Hurricane Emilywas estimated at 12.9 percent o f the gross domestic product. Like the previous report, the damage assessment was conducted for the four major sectors and included pre and post disaster economic situation analysis. The report then reiterated the conclusions with respect to strategic directioning o fthe economy which were detailed inthe earlier assessment. The Grenadian economy receivedthe third ina series o f significant economy shocks with the significant increases inthe prices o f imported fuel and relatedproducts. The Ministry o f Finance estimated that the immediate inflationary effect o f the oil price adjustment will be a 6 percent increase inthe prices o f goods and services. Based on the foregoing, the Government o f Grenada i s committed to the elaboration o f a full-fledged Poverty Reduction Strategy and Action Planwithin the next 12 months. The Strategy and Action Planwill be informed by another detailed Poverty Assessment Report and an extensive programme o fpublic consultations throughout the country. This document therefore is prepared as an interim Poverty Reduction Strategy Paper (I- PRSP) to guide the programme for poverty reduction inthe interim period. The I-PRSP i s based on the draft Poverty Eradication Strategy and other policy documentation elaborated since the completion o f the draft strategy. 1.2 Government's Commitmentto PovertyEradication Clear policy statements on Government's commitment to poverty eradication were made at several fora including the year 2000 Millennium Declaration and the subsequent national budgetingprocesses. Infact, the theme o fthe year 2000 budget read as follows "Poverty Eradication Through Growth, Equity and Peoples' Participationinthe New Millennium". This theme was followed by an objective statement whichread "To Establish a Platform for the Longer Term Eradication o f Poverty". In2001 and 2002 the Government continued on the poverty theme and focused the 2001 and 2002 budgets as follows "Towards a Knowledge-based Economy with Equity" and "Stimulating Economic Growth, Increasing Food Security and National Productivity". In2003, the theme was "Stimulating Economic Growth, PromotingPrivate Investments andHumanDevelopment" and inyear 2004 the theme was "Promoting Economic and Social Development Through Peoples' Participation". The theme for budget 2006 i s "Reaching Consensus on Promoting Growth, Macroeconomic Stability and Poverty Alleviation Measure." Insum, the statements clearly indicate the Government's policy towards poverty eradication. The recurring issues o f Poverty Eradication Strategy economic growth, peoples' participation, economic reform, equity and social development constitute the basic structures o f the poverty eradication programme. Thebudgetso fthesepast five years include a series ofmeasures designed to assistthe poor and disadvantaged as part o f a programme for poverty eradication. Consistent with the above themes, increased budgetary allocations were made geared towards the following: 0 Sustaining the growth process; Increasing the poor's participation ingrowth and access to the benefit of growth; Provision o f safety nets for the very poor and disadvantaged; Creation o f institutional framework for rural development and poverty eradication; 0 Modemisation o f state machinery. The MediumTerm Economic Strategy for the years 2003 to 2005 represents a continuation o f the plans and strategies articulated inthe previous planningdocument, year 2000 - 2002, andthe various government pronouncements on the issue. The declared emphasis inthe present Medium Term Plan i s "the development o f a more diversified and service oriented economy, strengthening the operations o f central government and poverty reduction and alleviation" (MTESP, 2003 -2005). Government's commitment i s consistent with the overall objective o f poverty eradication. The Government o fGrenada identifiedthe following priorities with respect to its medium term objectives: Sustained robust economic growth; Disaster rehabilitation and improved disaster management; Reduced unemployment; Improved access to quality health care; Humanresource development; Modernized state machinery; Improved environmental management; Housing development; and Agriculture rehabilitation. The Government posits that advancement inthe areas specified above will be enhanced through the application o f new information and communication technologies and new and improved systems inboth the private andpublic sectors including the NGO and CBO communities. Poverty Eradication Strategy To this end, an extensive consultation on the Poverty Eradication Strategy was elaborated. The main aim o fthe programmewas to encourage and solicit the full and effective participation o f all stakeholders into the process o f determination and finalization o f the strategy. It was deemed important to institute a mechanism to continuously engage civil society inthe process as a necessary element inthe forward planning. The process thus included a "bottom up" participatory approach at several levels includingindividual and sector level consultations, stakeholder level consultations, community level consultations, parish level consultations and national consultations. Annex 2 providesa detail breakdown of consultations. Various teams o f local experts were engaged to carry out these consultations. Reports o f each consultation were preparedand the results were infusedin the overall poverty eradication programme. 1.3 MacroeconomicContext and Progress The State o f Grenada includes the islands o f Grenada, Carriacou and Petit Martiniqueand several small uninhabited islandsmainlyalong the eastern and northern coasts. The country has a land area o f approximately 340 square kilometers with an estimated population o f 103,532 (Year 2001 Census Preliminary Report). The Grenadian economy i s characterized by its openness, vulnerability and dependence on the international economy. In2001, imports o f goods accounted for 49.3 percent o f the Gross Domestic Product while exports o f goods accounted for 14.9 percent o f the Gross Domestic Product. The dominant economic activity i s agricultural with the production for export o f bananas, cocoa and nutmegs. Banana exports have made a valuable contribution to the economic and social development inthe country throughout the 1960's to 1980's. A preferential trading arrangement with the European Union provided a ready market for the country's weekly banana exports. These earnings fi-om bananas constituted a significant share o f the income of rural households. With the dismantling o fthe trade regime with the advent o fthe WTO, banana production went into decline. Infact, in 1997 export o fbananas was halted and has been marginal since then. Cocoa andNutmeghave been traded on the open market and invariably subjected to the vagaries o f external market forces. The production and export o f these traditional products havebeen ina state o f similar decline since the 1990's. Notwithstanding the foregoing, productions o f these products constitute the mainstay o f the Grenadian economy particularly inthe rural economy. There is also a large subsistence agricultural production activity mainly inthe production of fruits, vegetables, flowers and mainly livestock for the domestic and regional markets. The Government Medium Term Economic Strategy up to the advent o fHurricane Ivan involve a series ofmeasures aimed at economic diversification, the targeting o f annual growth rates o f 4 percent and the improvement inthe overall competitiveness o f the economy. Poverty Eradication Strategy With the diversificationinitiatives, the structure of the economy is beingdramatically transformed from primary agricultural productionto a more service orientation. In2001 the services sector accounted for over 70 percent o f the GDP as compared with 53.2 percent o f GDP in 1990 (MTESP, 2000). 1.3.1 Economic Performance: The Grenadianeconomy has achieved relatively highrates o f economic growth averaging 5.7 percent for the period 1995 to 2000. Infact, the real Gross Domestic Product (GDP) expanded by an average o f 7.8 percent for the period 1998 to 1999. This relatively high growth rate mustbe seen against the back drop o f a stagnant economy inthe early 1990's which saw growth rates averaging less than 2 percent from 1990 to 1995 and 3.6 percent for the period 1995 to 1997 (MTESP, 2000; IMF Report, 2000). In2001 there was a dramatic turno f events with the economy recording a negative growth o f approximately 3.4 percent. The slowdown inthe Grenadian economy in2001 was attributed to developments inthe international economy as a result o fterrorist activities and its impact on world travel and trade. The robust growth achieved over the period 1995-2000 hasbeen attributedto expansionary fiscal policies introduced by the Government which included reform o f the taxation system, expanded Government expenditure on infrastructural projects, public sector reform and economic diversification. The overall growth has been fueled by the implementationo f large construction projects; namely, the National Stadium, the Ministerial Complex, the Port Expansion Project, Road Rehabilitation and Construction Projects, Residential HousingProgrammes, the Coastal Erosion Sea Defense Project, the Basic Education Reform Project and the Basic Needs Trust FundProject. 1.3.2 Unemployment The economic recovery experienced for the period 1996 - 2000 was accompanied by a significant decline inemployment. In2000, the unemployment rate was estimated at 12 percent down from 26.7 percent in 1995. The rise inemployment was due to increased economic activity inthe constructing, manufacturing and tourism sectors. Inaddition several new jobs were created inthe offshore financial services sector which was introduced in 1995. The unemployment rate i s highest among the youth population, women and the rural communities (MOF, 2002). With the contraction ofthe economy in2001, the unemployment rate increasedto 14 percent. In2003, unemployment rate was recorded at 13 percent (MOF. 2004). In2004 shortly after Hurricane Ivan, unemployment was estimated at 30 percent. In2005 the unemployment rate i s estimated at 18 percent. .................................................................................................................. 8 Ministry of Finance, Grenada Poverty Eradication Strategy 1.3.3 Inflation Like unemployment, inflation rates have been declining duringthe period 1996 - 1999 from a higho f 2.8 percent in 1996 to 1.02percent in 1999. As a consequence o f increased fuel prices, inflation increased to 3.4 percent by the end o f 2000. In2001 inflation fell dramatically to 0.7 percent andby the end o f 2002 the rate increase to 2.3 percent. Inflation rates have since stabilized and recorded 1.6 percent at the end o f 2002 and 2004 (MOF. 2004). Followingthe oil price increases of 2005, inflation is expected to increase to 6 percent. Itis significant to note that the prices of food, beverages, household supplies and fuel account for about 50 percent o f the consumer price index weights. The Government maintains control on the wholesale and retail markups on a range o f commodities including food items, constructionmaterials, school supplies, drugs and petroleum products. In 1998 the wholesale markups were capped at 15 percent. The range for retail markup i s 10 percent to 40 percent. Most commodities however are subject to a 15 percent retail markup. Since 1997, the government has introduced a price stabilization scheme for petrol fuel. The price o f a gallon o f petrol was fixed at EC$7.50. Adjustments are made in government revenue intake to reflect the changes ininternational price o f fuel inorder to keep fuel prices fixed to the consumers. Followingthe 2005 oil price increases the Government reexamined and reevaluated the scheme and the price o f a gallon o f petrol was raised to EC$10.89. Grenada maintains a fixed exchange rate regime with the Eastern Caribbean Dollar pegged ' to the US Dollar at 2.7 to 1. Grenada remains committed to the Eastern Caribbean Currency Union established within the framework o f the OECS. 1.4 Past Policies From the early 1990's the Government o f Grenada has embarked on several structural reform programmes which met varying levels of successes. The major programmes instituted were the following 0 Structural Adjustment Programme 0 PrivatizatiodCommercializationProgramme 0 Public Sector Reform Programme 0 Economic Diversification Programme 1.4.1 StructuralAdjustment Programme In 1992the Government o fGrenada embarked on a three-year Structural Adjustment Programme designed to accelerate structural changes to reverse the deteriorating state o f the country's finances which was adversely affecting the growth and development potential andhence poverty eradication. Grenada's annual GDP growth rate fell precipitously during the previous years. Poverty Eradication Strategy The main goals o fthe programme were: To stimulate a real GDP growth o f 4 percent inthe medium term; To improve financial management to produce current account surpluses; To return the country to international credit worthiness. The programme strategy included the following: Fiscal reform; Rationalization o fpublic sector employment; Reduction o f arrears o f debt and contributions; Privatizationo f state owned enterprises; 0 Provision o f enablingenvironment for private sector led growth. The debate on the outcome o f the structural adjustment programme was inconclusive. The general consensus seemed to indicate that the programme had achieved some measures o f success for specific parameters but inthe main had a detrimental impact on economic and social development. Theprogramme achieved fiscal stabilization rather than structural adjustment. Itwas generally recognised also that the programme exacerbated the plight o f the poor and did not ingeneral improve the well being o fthe people. The activities implementedunder the programme saw huge cuts on spending for social sector development, the provision o f social infrastructure, education, training and human resource development. The programme did not enhance private sector activity inthe country nor succeeded indrastically reducing the size o f the public sector. 1.4.2 Privatization/Commercialization Programme The PrivatizatiodCommercialization Programmeinstitutedby the Government achieved a highdegree o fsuccess.The programmewas institutedto improve fiscal management through the divestment o fpublic enterprises to contribute to private sector growth through the transfer o f assets from the public sector and to generate revenue for infrastructure development. Several loss makingGovernment institutions/organisations were removed as a charge on the consolidated fund. The Government successfully divested shares inthe following: 0 National Commercial Bank 0 Grenada Bank o f Commerce 0 Grenada Breweries Limited 0 Grenada Electricity Services Limited 0 Grenada Sugar Factory Limited 0 Grenada Telephone Company 0 Grenada Broadcasting Corporation Poverty Eradication Strategy Inaddition, the Government ofGrenadahas changedthe management structures ofthe following: Grenada Postal Corporation The Offshore Financial Sector The Gravel, Concrete and Emulsion Production Corporation The Grenada Ports Authority The GrenadaAirports Authority National Water and Sewerage Authority Marketing and National Importing Board Grenada Development Bank Negotiations are ongoing to commercialize several Government agencies and departments. These include the Government Printery, the National Parks, the T A Marryshow Community College, health sector services and several services across various ministries. The Government has also announced a policy change from longterm leases o f selected Government lands andbuildings to outright purchases. The proceeds o f the sales o f Government assets were carded for financing o f capital development projects. The results o f Government privatization programme show increased levels o f national employment and reduction o f the burden on the consolidated fund. 1.4.3 PublicSector Reform The history o f public sector reform in Grenada dates back to 1985 following a review o f the public sector by external consultants. The review focused on the following: 0 Manpower trends, forecasting and controls; 0 Organisation o f the public service and personnel management; 0 Organisation of work and staff efficiency; 0 Public policies and systems; 0 Training and management development. In 1994 a second review ofthe public service was undertaken. The mainpurpose ofthe second review was to ascertain the progress made inreforming the public sector from the previous initiative and to develop a plan o f action that will take the reform effort forward. The review highlighted the following achievements: 0 The establishment o fthe Department o fPersonnel and Management Services (DPMS) to oversee the reform programme. 0 The equipment o f the staff o f DPMS to handle personnel management issues, trainingneeds assessment andtrainingdelivery as well as to undertakethe management services function. 0 Securing staff reduction levels from 6633 inJune 1991to 5436 inJune 1994 thus achieving the set target o f5460 bythat date. Poverty Eradication Strategy The review indicatedhowever that the staff reductionwas achieved mainlythrough attrition. It was also noted that the reductions have not been accompanied by correspondingreductions inthe levels o f expenditure on wages and salaries. Infact, the 18.1percent reduction instaffing corresponded to 3.8 percent reduction inannual expenditure on wages and salaries. Inaddition, the review indicated that only limited improvement had taken place inthe delivery o f services. The following major constraints were identified: Weaknesses inpersonnel management. Lack o frole clarity among sector public servants. Lack o f clarity on goals and objectives. Low performance levels. 0 Lack o f clarity on role o f government inmacroeconomic development. Action planswere developed based on the major areas o f weaknesses identified above. The Public Sector Reform Programme i s been implementedto date. The aim is to build on the successes o f the past programmes andto implement the stated plan o f action. 1.4.4 Economic Diversification Output from the agricultural sector has beenindecline duringthe period o f the eighties and nineties and continues to decline to date. The production o f Grenada's three main export commodities, namely bananas, cocoa and nutmegs have been severely compromised for a range o f reasons including marketing arrangements, low productivity, pest infestation, and changing labour force demographics. Government's policy response included attempts at economic diversification. Renewed focus was placed on improvingthe productivity and marketingarrangements and production o f other crops to complement the traditional exports inorder to provide employment opportunities, generate income and forge greater linkages between agriculture, tourism, manufacturing and the service sectors. Inthis regard, the Government embarked onthe following: Micro and small enterprises development. Establishment of financial services sector including offshore financial services. Liberalisation o f the telecommunications sector. The provision o f physical and social infrastructure. Review o f incentives to manufacturing. Review o f the Public Sector Investment Programme. Development o f master plans, policies and programmes for tourism, forestry, environment, education andinformation and communication technologies. Development o f the informatics industry. 2. POVERTY SITUATION The Country Poverty Assessment Report (PAR) constitutes the single most comprehensive document on the socio economic status o f the Grenadian economy. The report highlighted the need to develop a comprehensive database on social development initiatives and programmes undertaken by the Grenadian authorities. Prior to the completion of the Report, several area specific reports and documentation sought to address aspects o f the poverty problem. 2.1 Country PovertyAssessment 2.1.1 Poverty Profile The Poverty Assessment Report, concluded inOctober 1999, utilized a representative sample o f the Grenadian economy and provided some critical information on the state o f the country's social sector. The principal components o f the study were as follows: 0 A national survey of living conditions utilizingarandomly selected sample o f 1124households with 4061 individuals. 0 A community situational analysis conducted in 14communities. 0 An institutional analysis ofkey agencies and organisations. The survey was conducted by a team o fregional experts supported by team o f local officials (National Assessment Team) assembled for the expressed purpose o f developing local capacity inthe area o f social development and poverty assessment and monitoring. The report constituteda sustained effort bythe players over a two-year periodbeginningin 1997 following a national consultation on poverty. The report utilized benchmark levels to determine the state o f the nation's poor and arrived at absolute poverty estimates across the population. Profile included determinations on geography, age, gender, employment, education, health, housing, institutions, community development, social infi-astructure and living conditions. The report analysed the causes o fpoverty and provided a time phased action plan or activities aimed at poverty reduction. The conclusions o f the report were subjected to critical rigorous analyses by the authorities, civil society and the population at large and have stood the test o f time. Infact, the government has givep its endorsement to the report which now forms the basis o f national responses to address the attendant issues. Poverty Estimates The survey revealedthat 32 percent o f the population correspondingto 28.8 percent o f households are classified as poor based on a poverty line o f EC$3,262 per annumper adult. Thirteen percent o f the population, correspondingto 10.5 percent o fhouseholds, are classified as indigent, being unable to meet the costs o f supplyingtheir minimum requirements for food. The study also revealedthat the poor have limited access to health Poverty Eradication Stratem services, education, adequate housing and social services and that higher incidences o f poverty among the youth, aged, women and female headedhouseholds and persons inthe rural economy (PAR 1999). Since the conclusiono f the survey anddespite Government's efforts to address the poverty condition it mightbe expected that with the significant downturn experienced inthe economy in2001 and 2002 that the poverty profile will not be significantly improved from the 1999 assessment. Causes of Poverty The demonstrated causes o fpoverty include economic factors and structural differential in the Grenadian economy. Inaddition there i s a range o f historical, social and psychological factors that causepoverty. The literature also indicated that natural disasters, personal catastrophe, major illnesses, differences among peoples and cultural norms can help sustain poverty or condition the interventions at its eradication. The major causes o fpoverty as identified inthe Poverty Assessment Report are the following: Limitedincome and employment generation; Limited safety nets; Limitation o fphysical infrastructure (especially inrural economy); Weakness insocial infrastructure (especially inrural economy); Poor community organisation; Gaps ininstitutional infrastructure; Limitations inhumanresource development. Inthe Grenadiancontext, the major problems faced bythe poor are the following: Lack o f access to basic amenities and facilities; Lack o fbasic infrastructure; Inability to pay bills for basic necessities; Limited access to clean unpolluted water; Poor sanitation; Poor housing; Lack o f access to natural resources; Over dependence on agriculture; Highunemployment; Low wages; Relianceor remittances from abroad; Persistent drug use, prostitution and alcoholism; Lack o f credit; Low educational attainment. Poverty Eradication Strategy 2.1.3 Characteristicsof the Poor PovertyandGender The data from the 2001 Census indicatedthat the population o fmales and females was even, It i s worthy to note that traditionally women bore the burden ofpoverty and have been under represented inkey development areas. Within recent years however, there hasbeen a clear trendfor improvedparticipationby women indecision-making at the national level. The traditional occupational labels are being eroded and inrecent times the term "male marginalization" has added significance. The government has established a department o f Gender and Family Affairs with the mandate to formulate a national gender equity policy and to raise awareness on the gender question. The policy will seek to entrench equity and fair treatment for women and youth on the national level and bringgender perspectives into the mainstream o f the country's development agenda. The data from the Poverty Assessment Report revealed that the poor were fairly distributed between males and females. Males account for 49 percent ofpoor persons and females 51 percent. The data also revealed that 33 percent o f all males inthe country live below the poverty line as compared with 32 percent for females. The report also indicated that women, female headed households and children are the mostly seriously affected groups. Unemployment and underemployment are highest among the female population and a poor householdis more likely to beheaded by a female. In fact, the report stated that 16 percent of female headed households are unemployed and 28 percent are not classified among the labour force. The data substantiated the notion that poor women tend to have relatively highrates o f fertility and therefore poor households tend to have a relatively highernumber o f children. PovertyandAge Inthe Grenadian context, the youth also bears the burdeno fpoverty and there are many problems affecting the nation's youth. A National Youth Policy and Action Planhas been completed and approvedby Cabinet in2001. Several activities inthe plan are aimed to reverse emerging trends inyouth occupation inthe areas o f violence, druguse, teenage pregnancies and other lifestyles. It is evident that youth exposure to national values and anti-social lifestyles are impacting on youth social behaviour. There i s a call for the development o f alternative profiles for youth engagement given the highlevels o f unemployment and youth's aversionto traditional agricultural production. Education and skills training with the utilization o f information and communication technologies are seen as worthwhile alternatives. Poverty Eradication Strategy The data from the Poverty Assessment Report revealeda close relationshipbetween poverty and age. Over 56 percent o f the poor were less than25 years old. Infact 51 percent o f the people below the poverty line were below the age of 20 years. Children 14 years and under make up 41 percent o fthe poor as opposed to 28 percent o f the non-poor. 5.6 percent o f the poor were 61 years and older. These comprised 22.5 percent o f all persons age 65 years and over. Povertyand Ethnicity The data revealed no discernible differences inpoverty among the various ethnic groups. Persons o f African decent for example comprise 80 percent o f the population and 80 percent o f the poor. The mixed grouping ethnic category comprises 12percent o f the population and 11percent o f the poor. Poverty andUnemployment The data revealed a strong association between unemployment andpoverty andthe poor tend to be concentrated inelementary unskilled occupations. The survey showed aNational unemployment rate o f 15 percent. Among the poor the unemployment rate was 20 percent as against 13 percent among the non-poor. The unemployment rate was highest among the females and young sections of the population. The unemployment rate among the males was 10.5 percent and among the females 21.2 percent. It must be noted however that a large proportion o f males were not counted inthe labour force, as they were not actively seeking employment. The unemployment rate for the age group 15 - 19 years was shown at 41.7 percent. Apart from the government services, agriculture, construction, wholesale and retailtrade and tourism sectors account for the sectors with the highest levels o f employment. The employment by major sectors gleaned from the 1998 draft labour force survey i s as follows: Employment by Sector Sector YOEmployment Agriculture 13.8 Construction 14.8 Wholesale and Retail Trade 18.2 II Tourism Government Services II 16.6 '5.7 II Manufacturing 7.4 Transport / Communication 5.9 Source: Draft Labour Force Survey 1998 Themedian age for the employed was 36 years and higher levels o funemployment are concentrated inthe youthful period which suggest areas for policy intervention. The labour Poverty Eradication Strategy force survey also showed that the income levels o f the employed were low with the median monthly income o f approximately EC$744. The medianmonthly income was lower for females as against males. Male median monthly income average EC$829, as opposed to EC$605 for females. The unemployment rate for the various age groups and the medianmonthly income are shown below. UnemploymentRate by Age Group Age Group %Unemployed Male Female 15 - 19 41.7 34.9 53.7 20 - 24 25.8 18.8 33.3 25 - 29 16.6 8.9 27.3 30 - 34 13.8 6.9 21.4 35 - 39 9.7 6.9 12.8 40 -44 8.0 3.9 13.0 45 -49 2.4 2.2 2.7 50 - 54 11.5 9.3 13.5 55 - 59 8.4 9.4 12.5 60 - 64 4.9 3.0 14.9 Unemployment i s highest inmany o f the poor rural communities. The report indicatedthat unemployment ranges from 4.2 percent inCarriacou to 22 percent in St. John. Thepercentage of unemployment by Parish is shown asfollows: Parish %Unemployed St. George 12.7 St. John 22.0 I St. Mark I 14.9 I St. Patrick 17.8 St. Andrew 16.0 St. David 20.5 I Carriacou I 4.2 I Source Poverty Assessment Report, 1999 Therehas been a steady increase inthe number o fpersons moving from rural to urban areas insearch o f employment and other opportunities. Employment opportunities are greatest inSt. George's area and inthe areas o f the services sector. Poverty Eradication Strategy The prospects for external migration have beenindecline due to developments inthe global economy. Infact, there has been a reversal in external movements o fpersons including return o fnationals who migratedinthe late 1950's and 1960's. Geographic Distribution of Poverty The data revealed that the poor are evenly spread across the country with St. George, St. Patrick and St. Mark above the national average. The geographic distributions o f the poor by parishes are shown inTable below. Parish YOof Non Poor YOPoor %of Parish Poor St. George 28.6 31.7 34.4 St. John 15.0 10.0 23.9 St. Mark 4.5 4.8 33.5 St. Patrick 12.0 14.0 35.5 St. David 10.2 9.8 31.3 Carriacou 4.1 3.1 26.8 Source: Poverty Assessment Report, 1999 Poverty and Housing The data revealed that house ownership i s very highinGrenada, and the poor were more likely to own their home than the non-poor. It was found that 94 percent o f the poor own their house as opposed to 88 percent o f the non-poor. The non-poor tend to live inrented accommodation. Approximately 71percent o f the homes inGrenada are situated on lands owned by the householder. 75 percent o f the poor owned the lands on which their homes were constructed while 69 percent o f the non-poor owned the lands on which their homes are located. There i s a clear relationship between socioeconomic status and housingtype, with the poor housing generally o f wood and galvanized zinc as roofing. The poor are less likely to have water piped into their homes and as a consequence more likely to have pit latrines as toilet facilities. Wood i s the predominant source o f fuel for the poor and the poor households have limited access to electricity, telephone and communication facilities and other social amenities. Infact the report indicated that as least 40 percent o f the housing stock inthe country are unfit for humanhabitation. Poverty and Education The Poverty Assessment Survey analysed the education sector and found that the educational attainment o f the population i s generally low with correspondingly low level educational certification and socioeconomic status. Poverty Eradication Strategy The data revealedthat 64 percent o fthe populationhas no form o f education certification and the lack o f certification is higher among the poor thanthe non-poor. The lack of certification i s also higher among the older persons inthe population. Infact the data revealedthat 73 percent o f Grenadians aged 30 years and over have no form o f educational certification. Access to secondary and tertiary education was found to be very limited and constituted a significant barrier to the transformationo f the economy to skill and knowledgebased productive activities. Poverty and Health The data revealed no definitiveevidence to suggest that in general the poor were less healthy than the non-poor. The data however suggested that the poor are more likely to contract and succumb to certaintypes o f illnesses than the non-poor. It was further noted that the poor have lower levels o f accessibility to proper health care and preventative measures and so might conceal the existence o fhigher levels o f certain types o f illnesses. The poor make greater use o fpublic health facilities than the non-poor. Poverty and HIV/AIDS HIV/AIDSwas diagnosed inGrenadain 1994. In2001 there were 216 reportedcases of AIDS. One hundred and six persons have since died and 110persons are known to be livingwith the virus. The data shows that there are 15 -20 new cases each year. Itmustbe noted however that the reporting mechanism i s suspect and there may be many cases o f persons livingwith the disease which are not part o f the official statistics. Ofthe number o f reported cases, 138 persons were males and 78 persons were females. With respect to persons livingwith the disease, 64 are males and 36 are females. The disease i s most prevalent between the age group o f 15 - 54. One hundred and eighty seven (or 87 percent) o f the reported cases fall within the 15 - 54 age group. Seven cases were reported with respect to persons born with the virus. The linkage between HIV/AIDS and poverty i s evident. The disease impacts negatively on productivity, health care expenditure, income generation, humancapital formation, living standards and social behaviour. HIV/AIDS can cause individuals and households to become poor or to intensify existing poverty situations among the poor. Poverty and Living Conditions The report indicated that there is a tremendous difficulty to break the poverty trap and as a consequence poverty moves from generation to generation. Alcoholism, drug abuse, crime, prostitution, praedial larceny and several manifestations or anti-social behavior are rampant among the poor. With respect to access to basic utilities, for example water, the survey found that 21 percent of poor households have no close access to water and only 8 percent have water piped in Poverty Eradication Strategy the yard o ftheir residence. 75 percent o fpoor use pit latrines and many have no toilet facilities whatsoever. Poor housing and environmental standards are also characteristics o f the poor. Additionally, over crowding i s also a feature o fpoor households. The report noted the importance o f the agricultural sector to the well being o f the rural people and also noted the significance o f the fall inthe production o fbananas on the lives o f the rural poor communities. PovertyandInstitutions The report indicated significant capacity constraints with respect to institutions with a poverty eradication focus. The report called for the establishment o f institutions with resources for promoting sustainable development and poverty eradication. Community development remains a major focus o f the Government o f Grenada and infact i s the expressed mandate o f several civil society organisations. The Government has established a Community DevelopmentDivisionwhich aims to improve the social infrastructure o f communities especially inthe rural communities. A rural development policy document has been prepared and submittedfor comments from civil society organisations. Within the medium term, the Government plans to implementhuman resource development training for community groups andto actively support small and micro enterprise development. To this end, there are plansto establish a rural development commission and a micro enterprise development board. Plans are also afoot to establish a rural development fund. Despite the foregoing, analysis o f the functioning o f the Divisionreveals significant inadequacies inthe types and levels o fresources to promote poverty eradication. The Division's scope o f activities are geared to reduce the incidences o f poverty on a limited basis and do not constitute a long-term vision for poverty eradication. The activities o f civil society inthe area o f community development are also geared to reduce the incidences o f poverty rather than part o f a long-term strategy for poverty eradication. Lack o f resources and low levels o f cooperation and coordination among the actors do not permit meaningful actions for eradicatingpoverty on the national level. 2.1.4 PovertyandCoordination GovernmentAgencies Several ministries are charged with the responsibility o f overseeing government's social sector spending. These include: MinistryofEducation Ministry o f Housing, Social Services and Culture Ministry o f Health andthe Environment Ministry o f Youth, Sports and Community Development Ministryo fTourism, Women's Affairs and Social Security The Prime Minister's Office Coordination among the above is a desired objective. .................................................................................................................. 20 Ministry of Finance, Grenada Poverty Eradication Strategy Civil Society Organisations Inaddition several civil society organizations are actively involved intheprovision of social services. Principal among them are the following: a Agency for Rural Transformation a Grenada Community Development Agency (GRENCODA) a Child Welfare Authority a Church Forum for Social Action a Conference o f Churches, Grenada a EarlyChildhood Education Connection (ECE) a Grenada Food andNutritionCouncil (GFNC) a Grenada Girl Guides Association a Grenada MediaWorkers Association a Grenada National Council for the Disabled(GNCD) a GrenadaNational Organisation for Women (GNOW) a Grenada Planned Parenthood Association (GPPA) a Grenada Save the Children Development Agency (GRENSAVE) a Grenada Union o f Teachers (GUT) a Legal Aid and Counseling Clinic (LACC) a N C H Action for Children a New Life Organisation (NEWLO) a Grenada Citizen Advise and Small Business Agency (GRENCASE) a Grenada Boys Scouts Association a Extended Care Through Hope and Optimism (ECHO) A case canbe made for improved coordination amongthese agencies and betweenthose agencies and government. EightNGOs have organizedthemselves into anumbrellabody called the Interagency Group o f Development Organisation (IAGDO) with the aim o f enhancing levels o f cooperation and collaboration among them. 2.1.5 Policy Recommendations Policy recommendations from analysis o f Poverty Assessment Information are as follows: Poverty eradicationprogramme must be appropriately targeted at youth, women headed households, large household, the rural economy and specified spatial vulnerable and marginalized groups. Specific programmes must target both males and females to avoid the problem o fmale marginalization and vulnerability. Specific focus must be given to the creation of employment opportunities. Specific focus on the improvement inthe social infrastructure. Specific focus must be given to health, education, water and social amenities. A review andrationalization o fthe safety net programmemustbe completed. Poverty Eradication Strategy e Full and effective participation ofcivil society mustbe encouraged and actively promoted. A programmeo fpublic awareness and public education mustbe established and sustained. A review o fthe planningstructure mustbe conducted and pro poor mechanism integrated innational planning. Capacity buildingprogrammemustbe established and mechanisms for management, evaluation and monitoring o fpoverty instituted. e Meaningful involvement o f the private sector, NGOs CBOs, FBOs are critical to the process o f povertyreduction. e Reform o f the agricultural sector i s necessary to promote employment. e Poverty eradication programmemustbe rooted inthe community to facilitate ownership and sustainability. e The Government mustprovide the enabling environment and attendant political will for sustained programming. e Special focus mustbe given to agricultural reform and the impact o f external trade relations and the mitigation o f exogenous factors. 2.2 The Core Welfare Indicators Questionnaire Survey In2005 following the impact o fHurricaneIvanandEmily,the Government commissioned a Core Welfare Indicator's Questionnaire (CWIQ) Survey. The CWIQ is ahousehold survey that measureschanges inkey social indicators for different population groups - specifically indicators o f access, utilization and satisfaction with core social and economic services. It is a very effective tool for improving project and sector programme design and the targeting o f services towards the poor and most disadvantaged communities. When repeated annually, the CWIQ becomes a monitoring tool for assessingimplementation effectiveness and the impact o f programs/projects on livingconditions. The CWIQ is being used increasingly as one o fthe key tools for monitoring PRSPs. The CWIQ was required to produce information leadingto: ' .. Clearer details and statistics on the impacts on women by the specific analysis o f the data for gender; Details on children and their living conditions; and Detailed analysis o f the social vulnerability implications o f the disaster. The survey was implemented over a four-week period inMay and June 2005. The Grenada Core Welfare Indicators Questionnaire (CWIQ) Survey Report reflectsthe challenge o f measurement in Grenada, made more urgent by the passage o f Hurricanes Ivan and Emily, which created additional need for services while reducing both the services available and access to the information needed to provide the services. The CWIQ Survey also helped to define key social indicators; develop a simple and quick survey instrument for monitoring ongoing changes inliving conditions; and encouraged wider dialogue and participation among a wider range o f interests. Poverty Eradication Strategy Inthe Grenadian context, the questionnaire was adapted to capture the effects o f Hurricanes Ivan and Emily, providing the first real systematic study o f the devastation caused by the hurricanes. According to the survey, overall nearly ninetypercent o f dwellings inthe country were damaged, with half sustaining serious damages and approximately 5 percent o f dwellings being completely destroyed. The highest levels o f damage to dwellingsoccurred in St. George's, St. David's, St. Patrick's and St. Andrew's. The poorest households were the most adversely affected, with 95 percent suffering damages as compared to 65 percent in the least poor group. Damage was also more severe among the poor. Almost half o f households across Grenada were displaced, just over half for several days only, 24 percent for several weeks, and 13 percent for several months. Some 7 percent were still displaced seven months after hurricane Ivan. Most displaced households moved to family and fiends for shelter. Only 10percent o f damaged households had some insurance, with none amongthe poorest quintile. Home insurance was most evident inSt. George's. Over a third of damaged households are beingrebuilt. Halfo f the householders who are rebuilding are aware o f the buildingcodes and among those who are aware, nearly all are complying withthe codes. About 75 percent o fhouseholds have received support post-Ivan, with the family being the most important source o f help. The most common forms o f support received were food and water, and buildingmaterials. Physical injuries and mental sickness respectively occurred inless than 10percent o f the households. Most physical patients haverecovered but less than one quarter o f the mentally affected have recovered. Damageto key assets was highlyvariable. Ten percent o f vehicles were damaged, half o f them severely. Damage to tree and casWshort crops were significant and severe but damage to livestock was minimal. Recovery has beenvariable. Earnings have fallen, especially from wage employment, through loss o fjobs and the reduction o f salaries. Income from business fell by 15 percent. The disaster also had an impact on nutrition, and affected the capacity o f individuals to bounceback. Food security has also been compromised through increased food imports and the loss o f the nutmeg and cocoa industries, which have also affectedthe national economy. The CWIQ reaffirmed several o f the recommendations o f the Poverty Assessment Survey. Specifically the survey revealed that just under half o f the households inGrenada are female-headed, with more thanone fifthinthe rural areas falling into the lowest welfare quintile. Well over halfthe female heads are unemployed, as compared with one quarter o f male heads. Similarly halfthe female heads are not inmarital union as compared with one quarter o f male heads o f households. Maleheads o f households account for the vast majority employed inthe private formal sector, and o f persons who are self-employed, Female heads o fhousehold predominateinthe private informal sector. A significantly large proportion o fhouseholds within the bottom quintile o f the rural households are female-headed, compared with households where most households are men. For urban households, 24 percent o f female heads lives inthe bottom 3 quintiles as opposed to a mere Poverty Eradication Strategy 18 percent for the males. The dependency ratio i s fifty percent or higherinall parishes and the highest ratios are found among the unemployed and inthe private informal sector. The dependency ratio i s higher for female-headed households than for male. With respect to access to education, the survey revealedthat less than halfofhouseholds have access to schools. This number falls to 24 percent for secondary schools. Urban households have easy access while less than 30 percent o fpoor students from rural areas do. Access to health care i s also found to be restricted for the poor. The survey revealed that in urban areas, 68 percent o f the populationshave a health facility within 15 minutes, compared with 30 percent for the rural population. Unemployment i s another key statistic. The survey revealed that some two thirds of the population was inthe active population (labour force), with 81percent employed. Unemployment i s highest among the poor, and among the 15 -29 year olds o fboth sexes. Paid employees and the self-employed respectivelymake up the great majority o f the employed population, with males makingup the larger percentage ineach case. Self- employment i s highest inparishes best known for fishing. Private enterprise employs the highest percentage ofworkers and more males than females. More females than males are employed inthe public sector. The highest levels o f employment are found inconstruction and services. Employment still falls along traditional gender lines, best illustrated inthe construction, wholesale and retail, and hotel and restaurant sectors. The total unemployment rate i s 18.8%, higher among women than men. Inthe urbanarea, female unemployment i s more than double the male rate. Nearly one third o f youth are unemployed, again with higher rates among females. Inlargemeasure, andbasedonthese select parameters o faccessto basic services andlevel o f employment, the poverty condition inthe country has been exacerbated as a direct result o f Hurricanes Ivan and Emily. The hurricanes have infact reversed several o f the gains that were made since after the elaboration of the Poverty Assessment Survey. The Government had in fact introduced several initiatives aimed at poverty eradication. 3. CURRENT EFFORTSAT POVERTY ERADICATION Current poverty eradication efforts are drivenby the Government incollaboration with international organization and civil society groups. Inthe main, these Projects received financial support from the international community. Direct budget allocations account for a small proportion o fthe total expenditure. It must be noted however that civil society organizations especially the NGO community are engaged in several self-initiated programmes aimed at poverty eradication. Although these projects are generally small and under fbnded, these NGO Projects tend to make a significant contribution by directly targeting the poor communities. Indeedthe NGO community has acquired the capacity to utilize small amounts o f resources to address the poverty condition. Civil society direct . involvement is a necessary condition for advancingpoverty eradication goals in Grenada. Current Poverty EradicationProjects include the following: Poverty Eradication Strategy ~ e Grenada Rural Enterprise Project (GREP) e Disaster Management and Preparedness e Food Security Project e Biodiversity Conservation and Protection e Climate Change and climate vulnerability e Project to Combat LandDegradation e Infrastructureand Road BuildingProgramme e Health Sector Reform e Education Reform e Public Sector Reform / Human Resource Development e Information, Communication and Technology Project e Project to Combat DrugUse, Crime and Anti social Behaviour e Renewable Energy Project e National Physical Development Plan e Capacity Buildingand Institutional Strengthening 0 Microenterprise Project 0 Good Governance Project e Employment Generation Project Agricultural Diversification Project e Solid Waste Management Project e Affordable Housing and Shelter Project e Basic Needs Trust Fund(BNTF) e Legal Aid and Counseling Programme e Family Planning Project e Community based Institutional StrengtheningProjects e Water o f Life Project e Research study on Social Protection and Poverty Reduction inthe Caribbean A synopsis of some o fthese projects is outlined below: 3.1 Grenada Rural Enterprise Project (GREP) Objectives:The mainobjectives ofthe Grenada Rural Enterprise Projectis to reduce rural poverty ina sustainable and gender equitable manner by offering rural households a chance to enhance their income through the realization o f economic activities. Activities:The Project activities includethe following: e Diversification and improvement o f income generating activities. e Strengthening capacity and buildingconfidence at the at the rural community level. e Strengthening o f rural service providers to meet community needs. e Promoting efficient and environmentally sustainable production and processing activities. Fostering sector and market linkages. Output:The Project envisages the following outputs: e Improved access to support services and facilities. e Enhanced businessactivities e Increased rural incomes e Higher levels o f entrepreneurship, technical and managerial skills. e Increased flow o f funds from financial intermediaries. e Increased participation inlocal organizations and activities. e Increased access to social services. e Increased levels o f numeracy and literacy. e Increased educational and skills levels especially o f the young. e Reduction inunemployment levels. e Strengthened community groups and increased capacity among executing agencies. 0 Improved capacities within financial intermediaries to service the rural households. e Improved capacity within the Ministryo f Agriculture to provide technical support to farmers and rural production units. e Improved landholdings and improved productivity leading to higher farm incomes. e Pilot production activities to serve as best practice examples. e Higher standards o fproducts produced inthe rural areas. e Enhanced access to markets for rural production. ProblemsEncountered:The major problems encountered include the following: e Delay infinalization o f logistics arrangements for the Project. e Absence o f required baseline data. e Bureaucratic delays inaccessing resources for Project implementation. e Delays inProject implementation 3.2 Disaster Preparedness and Management Objectives:The objectives o fthe Disaster Preparedness and ManagementProject are to strengthen the national disaster response capacity and to strengthen Grenada's resilience Poverty Eradication Strategy and preparedness to tackle disasters through institutional strengtheningand mitigation measures. Activities:The project activities are as follows: Implementmitigationand strengthening measures aimed at minimizing damage causedby disasters and reducingthe disruption o f economic activities inthe event o f emergencies. Establishsustainable procedures to ensure quick response inthe event o fnatural disasters. Define and implement a national hazard mitigation strategy based on strengthening institutional capacity to prepare for and respond to disaster emergencies, in particular through the strengthening o f the national disaster office. Institutional strengthening, aimed at improving Grenada's capacity to prepare for andrespond to disaster emergencies through technical assistance, capacity building andtraining, rehabilitationo f shelters and the Emergency Operations Center (EOC), andprocurement o fnecessary emergency equipment and supplies. Physical mitigation, aimed at minimizing damages caused by disasters through preventative infrastructure investments and associated supervision services as well as the necessary preliminary studies to assess risks and damages, and prepare detailed designs for critical priorities to be subsequently financed. Output: The project outputs are as follows: 0 Operationo f emergency procedures and instituted internationally accepted standards 0 Capacity enhancement for disaster management 0 Trained personnel infield 0 Construction of physical infrastructure 0 Increased levels o fpersonnel indisaster management. ProblemsEncountered:The major problems encountered are as follows: 0 Bureaucratic delays inimplementation 0 Lack o f adequate integration o f disaster issue innational planning 0 Lack o fresources to establish disaster management fund 0 Inadequacy o f baseline information. 0 Capacity limitations 3.3 Food Security Project Objectives: The objective o fthe food security programme is to enhance food security and nutritional status o f rural households. Activities:The Project is implementedby the NGO community andinvolves arangeo f activities inthe following: 0 Backyard gardening Fruit presentation Poverty Eradication Strategy 0 Livestock production 0 Agriculture training 0 Food security awareness 0 Monitoring and evaluation Output:The Project outputs are as follows: 0 Documentation o fbaseline data 0 Trained rural households 0 Enhanced infrastructure for food security 0 Community empowerment 0 Public awareness programme conducted. ProblemsEncountered:The food security project was seen as a most appropriate project focused at poverty eradication. The problems encountered duringimplementationwere as follows: 0 Limited financial resources 0 Significant delays due to various capacity constraints 0 Lack o f adequate supplies 3.4 Biodiversity Objectives:The objective o fthe Project is the fulfillmento fGrenada's obligation under the Conventiono fBiological Diversity and to promotethe Country's efforts at achieving sustainable management o f its biological resources. Activities: The activities ofthe Project includedthe following: 0 Assessment o f key sectors for biological diversity- agriculture, forestry, wild life, fisheries, marine and coastal areas, landuse and environmental planning and tourism. 0 Identification o f gaps for effective management o f natural resources. 0 Assessment o f institutional, policy and legal frameworks for planning and management. Output:The major outputs are as follows: 0 Determination o f capacity needs for biodiversity conservationand protection. 0 Provision o f broad-base support for conservation and sustainable use o f biodiversity. 0 Protection o f key eco-systems from negativehuman induced impacts. 0 Development and encouragement o f sustainable utilization o fbiological resources that are essential to the livelihood o f local communities. 0 Maintenance, recovery and promotion o f genetic resources necessary for sustainable agriculture. 0 Ensurance o f a fair and equitable sharing o f the benefits arising out o f the utilization o f genetic and ecosystem resources. 0 Elaboration o fNational Biodiversity Strategy and Action Plan (NBSAP). Poverty Eradication Strategy Provide information on key ecosystems for incorporation into national accounts and decisions on national development projects. Problems Encountered: The major problems encountered include the following: a The urgent need to develop a national policy for guidinglandmanagement (including a landuse policy, and a national physical development plan) and incentives for protection o f critical ecosystem. a Lack o f implementation o f appropriate policies which contribute to the conservation o f aspects o fbiodiversity and the need to modify policies with significant negative impacts on the environment. a Lack o f effective enforcement o f existing legislation and at mitigating the adverse impact on environment due to humanbehavior. a Legislative revision for improved regulation o f activities with significant adverse impacts on the integrity o f key habitats and on resident and migratory species. a Lack o f effective enforcement o f existing legislation and at mitigating the adverse impact on the integrity o f key habitats and on resident and migratory species. The need to build awareness on and understanding o f the value, sustainable use, and the need or immediate conservation o f natural resources by decisionmakers and stakeholders. Lack o f comprehensive and up to date baseline biological/environmental data and inventories on key species and habitats. a The needto develop management plans for key ecosystems, biological and genetic resources. a Institutional strengthening for key agencies with responsibility for management o f biological resources. a Genuinecollaborative mechanismamong state agencies, andbetween state agencies and stakeholders for joint management o f environmental resources. a The need to develop a local repository for representative samples o f flora and fauna. 0 The need to incorporate environmental costs into the planningprocess. 3.5 Climate Change Objectives: The Project objectives include the fulfillment o f Grenada's commitments under the United Nations Framework Convention on Climate Change which includes the stabilization o f green house gas concentration inthe atmosphere and the institution o f mitigation measures to counter the potential impacts o f global climate change. Activities: The Project activities included the following: An inventory o femissions o f green house gasses by sources An initial analysis o f Grenada's vulnerability to the adverse impacts o f climate change Proposed national measures aimed at fulfilling Grenada's commitments under the UNFCCC. Elaboration o fNational Report on Climate Change Poverw Eradication Strategy Output:The Projectoutput includes the following: 0 National inventory o f anthropogenic emissions by sources and removal by sinks of GHG. 0 Institutiono f appropriate measuresto eliminate data gaps on baseline information. Regional collaboration inthe development o f emission factors. Assessment o f current levels o f Grenada's vulnerability to the effects o f climate change. Identification o f existing information gaps. ProblemsEncountered:The major problem encountered is the lack o fnational capacities to address the attendant issues. The priorities recommended to address this constraint include the following: 0 -Strengthening o fthe Institutional Framework, which include; The establishment o f a coordinated mechanism for environmental - management, including climate change; The strengthening o f the legal frameworks, includingbuildingcodes to - provide for management o f climate change issues; The strengthening o f the technical capacity within the country, through training o f appropriate personnel, to address climate change issues 0 Strengthening o fthe data collection and monitoring systems to facilitate the collection and analysis o f data relevant to climate change. This will be applicable to all sectors o f the economy that are sensitive to the impacts of climate change. 0 Public Awareness and Education on Climate Change ingeneral and the role o f the individual inmitigating and adapting to climate change. Special efforts are needed to begin the collection o f as muchbaseline data as possible, inorder to improve future analyses to guide national planning and development. 3.6 Land Degradation Objectives:The objective o fthe project is to fulfill Grenada's obligation underthe United Nations' Convention to Combat Desertification. A specific objective i s to combat desertification and mitigate the effects o f drought through effective action inthe framework o f an integrated approach consistent with Agenda 21. Activities:The project includes the following: 0 Give priority to combating desertification and mitigating the effects o f drought and allocate adequate resources; 0 Establish strategies and priorities within the framework o f sustainable development plans and / or policies to combat desertification and mitigate the effects o f drought; ' Poverty Eradication Strategy 0 Address the underlyingcauses of desertification andpay attention to socio- economic factors contributing to desertification process; 0 Promote awareness to facilitate the participation o f local populations inefforts to combat desertificationand mitigate the effects o f drought; 0 Strengthening o f appropriate existing relevant legislation, enacting new laws and establish long-term policies and action programmes. Output: The project outputs are as follows: 0 Establishment o f institutional structures for management 0 Mechanisms developed for facilitating civil society participation 0 Collaborative and cooperative mechanisms established 0 Forestry tree planting programme established 0 Monitoring mechanisms established 0 Improvement inhumancapital. ProblemsEncountered:Themajor problems encountered are as follows: 0 Lack o f adequate institutional arrangements 0 Capacity and resource limitations 0 Lack o f stakeholder participation, ownership and public education and awareness o f the issue. 3.7 Health Sector Reform Objectives:The provision o fadequate accessible, affordable and equitable health services and the maintenance o f a protected environment. Activities: 0 The establishment o f an autonomous body to manage hospital services 0 The establishment of an autonomous body to manage solid waste collection and disposal 0 Reorganizationo f primaryhealth care 0 Promotion o f health care financing 0 The development of institutional capacity 0 The development o fphysical capacity 0 The development o f human resources. Output:The programme outputs are as follows: 0 Creation and functioning o f autonomous bodies 0 Decentralizedprimary health care system 0 Increased financing for health 0 Establishment o f functioning institutions and facilities 0 Increase number and improved quality o f health care pr viders. ProblemsEncountered:The major problems encountered are as follows: 0 Lack o f stakeholders buy-into the reform effort Poverty Eradication Strategy 0 Union activity resulting indelays 0 Lack o f resources to underwrite the reform effort 0 Worker uncertainty for the new environment. 3.8 HealthandNutrition Objectives:The MediumTerm Economic Strategy calls for a strategy to ensurethat Grenada citizens are provided with appropriate, affordable and accessible health care ina healthy environment. This includes developing o f quality health care to all citizens, improved health facilities, reducing inthe prevalence o f HIV/AIDS andhealth sector reforms. Activities: The following strategies andmeasures were advanced: 0 Improve supply o f safe drinkingwater 0 Develop a five year strategic health plan 0 Revision o fhealth legislation 0 Expand universal immunisation Programme 0 Improve health service delivery mechanisms 0 Reintroduce/ strengthen school feeding programme 0 Intensify health education programmes inprimary and secondary schools 0 Ensure the supply o f low cost generic aids drugs 0 Intensify Aids education programmes 0 Strengthen AIDS and expand MCH, reproductive and family planningactivities 0 Intensify community awareness o fhealthy eating and lifestyles 0 Train health administrators inhealth administration principles 0 Upgrade and rehabilitate all community clinics 0 Construction o fmajor clinic inSt. George's 0 Complete new General Hospital 0 IntroduceNational Health Insurance Programme ProblemsEncountered:The major problems encountered include the following: 0 Political interference and union activities 0 Resistance to change 0 Worker uncertainty innew environment 3.9 EducationReform Education constitutes a main element o f Grenada's Poverty Eradication Strategy. To this end, the Government elaborated a Strategic Plan for Educational Enhancement and Development (SPEED) 2002 - 2010. The project was designed to be consistent with the Government's Medium Term Economy Strategy and findings o f the Poverty Assessment Report. Infact, the Poverty Report declared that "Grenada's salvation for poverty inthe new global dispensation depends Poverty Eradication Strategy critically on the knowledge and skills Grenadian possess" (Poverty Assessment Report pg. XVII). Objectives: The overreaching the objective o f the strategic plan for education i s to develop a learningsociety through effective enhancement o f Grenada's human resource. To this end, the project involves the following: Provisiono funiversal access to education Improvement o fthe quality o f education and the achievement of pupils. Provision of learners with relevant knowledge, attitudes and skills. Establishment and strengthening relationships with partners ineducation. Improvement o f the effectiveness o f management and administration o f education at ministryand school levels. Ensurance o f consistent government financing o f education, to diversify the funding sources and to make certain that resources are usedefficiently. The project overall objective is to improve the efficiency and effectiveness of the education system and enhancing the quality and equality o f access to basic education. Strategies and Measures: The Plan's strategies and measures includes the following: Achieve universal access to primary education by 2003 Universal access to secondary education inthe mediumterm Expand access to tertiary education. Strengthen monitoring o f truancy EstablisWupgrade TVET centres Modemise and upgrade all educational facilities Increase use o f computers inschools Establishfunctioning learning resource centres inprimary and secondary schools Improve teacher training and development instruments relating to professional teaching standards Review conditions o f teaching service Develop an improved teacher supervision system Develop a competency based approach to the evaluation o f learning at primary and secondary levels Strengthen continuous assessment at primary and secondary level. Train teachers indiversified testing methods. Total revision o f education curricula Establish a comprehensive Tec Voc programme that responds to HRDneeds Develop secondary and tertiary level programmes that responds to labour market requirements Develop Labour Market Information System Enact and enforce revised education act Establish fully functioning school boards Establishfully functioning Parent Teacher Associations Engage the media inpromoting education Poverty Eradication Strategy 0 Improve working relationship with national, regional and international organisations. 0 Monitor annual education budget Output:The major outputs includethe following: 0 Construction o f new Ministry o f Education Head Office 0 Restructure management 0 Improved supervision and management 0 Improved curriculum design and implementation 0 Construction and rehabilitationo f schools 0 Increased secondary places inunderserved districts ProblemsEncountered:The major problems encountered were as follows: 0 Bureaucratic delays due to management and capacity constraints 0 Poor supervision on project implementation 0 Political interference 0 Resistance to institute a culture o f reform with poverty focus at all levels 0 Unwillingness to change existing status quo. 3.10 NationalPhysicalDevelopmentPlan Objectives: The primary objective o f the plan i s to provide an integrated and coherent framework to promote and guide spatial and physical development activity inGrenada ina sustainable manner. The strategic objectives o fthis planrepresent a comprehensive socio- economic framework for the formulation o f development objectives, policies and proposals inthe national physical development plan. Also, the planpresents a spatial development strategy to guide the implementation of socio economic policies such as housingprogrammes, retention o f good agricultural lands and decentralization o f industrial development lands. Activities: The planned activities include the following: 0 The formulation o f land use andproject proposals that would be complementaryto current socio-economic policies and proposals for national development. 0 The provision of a strategic planning framework to facilitate: -- Rational allocation o f the landresource among competing uses and interest Consistency inthe regulation and control o f development activity More detailed level planningat the national and sub-national levels 0 Adoption and implementation of appropriate development policies and projects in order to: - - Maintain the ecological integrity o fthe biophysical environment; Maintain the integrity o f the cultural landscape including traditional economic activities (agriculture, forestry), significant historical and archeological sites and the form and character o furban and village development; Poverty Eradication Strategy - Safeguard suitable lands for affordable housing,viable agriculture and - environmentally sensitive tourism and industrialdevelopment; Control the demands on the infrastructure systems (water supply, waste disposal, transportation facilities etc.) and ensure efficient use of existing - and proposed systems; Safeguard population, housing, economic activity and infrastructure facilities from climatic and seismic hazards. 0 Promotion o f efficient and timely development and coordination o fthe programmes and investments activities o f individual public and private sector agencies involved indevelopment. 0 Provision o f a basis for community participation inthe planningand development process, as was initiated inthe preparation o f the Carriacou-Petite Martinique Development Plan Output: The National PhysicalDevelopmentPlanis conceived as amediumto longterm planwith a twenty (20) year perspective. The plancomprises a diagnosis o fkey development issues and outlines a strategic vision and development objectives for future development activity as well as a basic spatial development concept and sectoral and area policies and proposals. The plani s expected to provide the following benefits: 0 Serve as a planningframework by the Physical PlanningUnit o f the Ministryo fFinance to facilitate the efficient and effective coordinationof development programmes and projects. 0 Provide a sound base to government for the administration o f fkndingad technical assistance for planning and development matters. 0 Provide the appropriate legal regulatory framework for sustainable development. 0 Serve as a guide to donor agencies and financial institutions with regard to a comprehensive spatial development strategy, project possibilities and action plan thus resulting in an increase inthe level o f confidence by investors and developers inmakingstrategic landuse andinvestmentdecisions. ProblemsEncountered:Among the challenges and constraints and which are o f strategic importance thus requiring focused attention included: 0 The development pattern inthe country is characterized by the concentration of community facilities, business activities and employment opportunities inthe greater St. George's UrbanArea insouthwest Grenada. The development disparities betweenthe St. George's UrbanArea and the other settlements are influencing patterns o frural to urbanmigration resulting incongestion and other environmental impacts inthe primary center. Certain demographic trends present implications for rural development and management o f development pressures inthe Greater St. George's Urban Area. These trends include: - The implications for rural development and the management o f - development pressures inthe Greater St. George's urban area Consistent reduction inthe average size o f households inthe country and the resultant increasingdemand for housing. Poverty Eradication Stratem 0 The lack o f adequately human resources to effectively implementing the plan was also noted as a major constraint inthis regard 0 The stable economic development as well as economic growth experienced during the mid 1990s has caused some level o f concerns from a physical planning perspective. This include: - The relative absence o f effective linkages between economic planning and - physical planning; Weak linkages among the major economic sectors and the implication for - balanced sectoral and spatial development; The concentration o f economic activity andjobs inthe greater St. George's areas and the problem o f poverty and its implication for the provision o f - housing and other social development facilities; Themanagement ofhuman impact on the environment arising from activities such as squatting and spontaneous development. 3.11 Capacity BuildingandInstitutionalStrengthening Objectives:The development objective is to promote and accelerate sustainable human development through the design and completion o f economic and social programmes and interventions to improve individual and community welfare. Activities: The Project activities include the following: 0 Development of criteria classification system design databases and execute questionnaires and surveys to analyse the existing skills training programmes for youth development. 0 Assessment o f skills requirement inthe private sector and identify opportunities for youth development. 0 Identification and formulation o f programmes and initiatives designed to improve the status o fyouths and women. Output:The project output includes the following: 0 User friendly database o f types and levels o f skill training programmes for youth and women; 0 Detailed time phasedmanpower resource plan linking identified needs and the requirements o fthe job market; 0 A National Strategic Plan and Programme o fAction for youth and women development. ProblemsEncountered: 0 Political interference 0 Implementationdelays 0 Lack o f community ownership 0 Lack o f appropriate management strategies Poverty Eradication Strategy 3.12 Basic NeedsTrust Fund(BNTF) Objectives:The Government o fGrenada has recently launched on the FifthPhaseof the BNTF.Themajor objective ofthe BNTF 5 is to achieve Povertyreduction and sustainability inpoor communities. The BNTF programme (BNTF 1- BNTF 4) has been an integral part o f the country's social development agenda. Apart from the inflow o f foreign exchange via the grant window for basic infrastructure, the programmeprovided needed support inthe areas of training and employment generation and assisted instrengthening local communities. The programme facilitated the empowerment o f the local communities including improved organization capacity and assisted incommunity mobilization and encouragement o f community ownership. Activities: BNTF 5 involves establishment o fbasic social infrastructureinthe following subsections: Water and Sanitation: Water reservoirs/tanks and distribution lines constructed/extended to provide potablewater. Construction or refurbishment o f public toilet/bathing/laundry facilities inremote communities that do not have a pipe-borne water supply. Education: Construction, upgrading and extension o f school buildings, including new or expanded pre-school and day-care facilities. Health: Construction and rehabilitation o fprimary health clinics and community hospitals. Physical Welfare o f Vulnerable Persons: Construction, rehabilitation or extension o f facilities that enhance the physical environment o f the elderly, the infirmor children at risk. Community Markets: Construction or rehabilitation o f community/craft markets, and other activities that support productive ventures. Access: Rural roads, drains and footpaths constructed or upgradeto provide continuous all-weather usage to mitigate flooding and soil erosion. Maintenance: This component will be used to assist beneficiarieswith the maintenance o f public facilities inthe education, health and community sectors. Output: The Project output includes the following: Physical evidence o f completed infrastructure 0 Improvement development, development o f skills set inrural communities 0 Improvement inearly capacities of rural communities 0 Strengthening o f community organization. Problems Encountered:The major problems encountered inprevious vintages o fthe BNTFinclude the following: Lack o fprogramme flexibility 0 Lack o f national capacities for project implementation 0 Bureaucratic delays Poverty Eradication Strategy 0 Lack o fproper control and management systems 0 Inadequate levels o f social inclusion o f poor people innational decision- making Inresponseto some ofthe issuesstatedabove, BNTF5 will constitute amoreholistic approach to rural and local community development. The approach will examine the total needs o f the communities within the framework o f the Poverty Eradication Strategy, BNTF 5 will place greater emphasis on community participationand community ownership. Particular attention will be placed on targeting o fresources to ensure that the poorest are the ones to benefit. The programme also envisages greater cooperation and collaboration among the various stakeholders including wide rangingconsultations on dialogue on the relevant issues. 3.13 Grenada HIVIAIDSPrevention and Control Project Objectives:The main objective ofthe HIVIAIDSPreventionand Control Project is to reduce reported HIV/AIDScases by 50 percent and to reduce mortality and morbidity attributed to HIV/AIDS by 40 percent in5 years. The project also aims to improve the quality of life o f persons living with the Virus and to consolidate sustainable organizational framework for managingAIDS. Activities: The Project activities are as follows: 0 Expansionof the available options and infrastructure for care and treatment o f persons living with AIDS. 0 Development o f system o freporting, tracking and monitoring o f AIDS cases. 0 Establish clinical preventative intervention measures and support systems. 0 Institute legislation and regulatory reforms. e Establishprogramme o f training and education on HIV/AIDS and public awareness aimed at modifying attitudes and sexual practices. Output:The Project output includes the following: 0 Establishment o f health status indicators. 0 Establishing of infrastructure and systems. 0 Establishment o f national response management support structure. 0 Changes in attitudes towards persons livingwith the disease. 0 Reduction innumber o f HIV/AIDScases. ProblemEncountered: 0 Bureaucratic delays inproject implementation 0 Absence o f framework for project execution. 0 Untimelyprovision of resources. 0 National resistance to deal with HIV/AIDS due to various levels of uncertainty. Poverty Eradication Strategy 3.14 Social Safety Net Measures inthe 2006 Budget The 2006 budget includes new measures to help the most vulnerable segments o f society challenged byrecent developments. The Government opined that long-term social .. development efforts need to be supplemented by targeted social safety net measures. Inthis regard, the 2006 budget will include the following: An increase inthe monthly transfer to needy elderly persons, mainly inrural areas, from EC$100to EC$150 at a budgeted annual cost o f about EC$4 million; A scheme to temporarily subsidize the increase inbus fares for about 2,000 tertiary students at a budgeted cost o f EC$l-1.5 million. Given the seemingly permanent . nature o f the increase ininternational oil prices, this subsidy will be phasedout over time; Other social programmes for the vulnerable members o f society such as free water supply; free books and uniforms for needy children, free medicine for the elderly will be continued. 3.15 Current Programmes Conclusion - The foregoing programmes, while addressing issues relating to poverty, are not all necessarily and specifically geared to poverty eradication. Infact, for several o f these programmes, the GREP and BNTF being noticeable exceptions, poverty eradication has turned out be merely incidental. Inthe main,many programmes - although with laudable objectives - are often not appropriatelytargeted and not properly focused at poverty eradication. An Audit o f the programmes revealed a general lack o f specificity and prioritization inthe face o f scarcity o f resources Insum, it i s intendedto review these programs on the basis o f the forthcoming poverty strategy, to streamline them ifand where necessary, so as to increase the efficiency o f resource allocation inthe fight against poverty. Capacity constraints leading to significant and costly delays inproject implementation are characteristic o f several projects. It i s evident that limited human, technical and institutional capacities and the attendant lack o f real focus on poverty undermine the integrity of achieving the various project objectives. Several projects can be further disaggregated to indicate shorter term, easily measurable and verifiable outputs. Proper project design andmanagement structures mustbe instituted with sufficient flexibility to allow for adequate delegation o f authority. A strategic approach will haveto rely on explicit references to targets for poverty eradication, committed resources, implementation modalities, mechanisms for monitoring, and impact evaluation. The programmes should be sufficiently disaggregated to allow analysis at minute levels o f detail. A holistic approach i s intendedto lend to the full and effective participation ofthe citizenry. Finally, the programmes should be time-bound and will be assessed against measurable indicators at various levels and stages o f implementation. 4. NATIONALPOVERTY ERADICATIONSTRATEGY 4.1 Vision The overall vision o f the Government to address the poverty condition in Grenada i s to return the economy on a path o f sustained economic growth. The Government aims to promote various initiatives to develop a more diversified and service oriented economy, to involve all stakeholders inthe development thrust, to strengthen the operations o f central government, and to eradicate poverty among its citizenry. Grenada subscribes to and has infact signedonto the Millennium Development Goals and i s fully committed to achieving the goals and targets by the 2015 benchmark date. Reducing the incidence o fpoverty byhalfby 2015 as well as achieving the other goals and targets i s central on the development planning agenda. Despite the ravages the hurricanes and the impacts on the national economy measuredby global events, the Government i s fully committed to promote the achievement o f the country's obligations on the regional and international levels. The overall strategies mustbeplaced within the framework o f the international economy. Globalization and liberalization characterized the international economic order. To quote James (1999) "An increasingly globalized capitalist market and an intensified drive for the States to rely on "free competition" characterize the current economic order. Ifdeveloping countries, like Grenada are unable to improve their capacity to compete inthis ever increasing globalization, they face increased poverty, unemployment and underdevelopment". This means that Grenada must immediately identify the activities for which ithas a competitive advantage. These activities should be able to generate highincome, stimulate growth and enable the Government to implement its poverty eradication strategies. Globalization presents both challenges and opportunities. The challenges include: the need to create a highly literate and productive labour force which i s efficient and effective; to harness the energy and will o f Grenadians to ensure that they buildtheir social capital and commit themselves to the national development plan, and; to improve social conditions and at the same time achieve economic growth. The opportunities are real, and based on the most recent available data. Grenada is on a path of economic recovery. This economic recovery must be maintained and all efforts mustbemade to ensure that a largeproportionof Grenadians are not marginalizedinthe process. Poverty Eradication Strategy 4.2 MediumTermFramework Grenada's medium term reform programme entitled "Economic Growth, Poverty Alleviation and Macroeconomic Stability" details a series of objectives and policies the Government intends to pursue during the period 2006 - 2008. The main elements o f the .. programmes are: Promotion o f sustained higheconomic growth by improving the climate for private .. investment; Restorationo f fiscal and debt sustainability through fiscal consolidation and reform; Reductioninvulnerabilities by safeguarding the soundness o f the financial system; Reduction o fpoverty through more effective social development programmes and safety nets. SustainedHighEconomicGrowth The medium term reform programme i s expected to sustain economic growthon the order o f at least 4 percent per annum. The private sector i s expected to play an enhanced role and Government will develop a more proactive policy environment that i s conducive to private sector investments. Institutional strengthening o f the national private sector development agencies, improving the manner inwhich landi s available for investors and comprehensive reform to improve the tax systems transparency and accountability are on the agenda. The programme also includes consolidation o f the public sector modernizationprogramme and activities geared to enhance labour and product market flexibility. Fiscal andDebt Sustainability The medium term programme will include specific measures to reduce Grenada's public debt stock which is unsustainable at 130percent o f GDP to 60 percent o f GDP by 2015. The programme includes fiscal consolidation to allow the fiscal accounts to swingfrom a primary deficit o f 2 percent o f GDP in2005 to a primary surplus o f 2.5 percent o f GDP in 2008. ReducingVulnerabilities The medium term programme will includes specific measures to reduce Grenada's vulnerabilities to natural disasters and to safeguard the soundness o f the financial sector. ReducingPoverty The medium term programme includes specific measures aimed at reducingpoverty. Targeted poverty reduction initiatives will be undertaken. At the same time, a comprehensive poverty reduction strategy and action planwill be elaborated following a detailed poverty assessment survey. Poverty Eradication Strategy 4.3 ProgrammeElements The programme elements o fthe medium term macroeconomic framework include the following: Strengthening investment promotion; Preparation o f new investment code; Facilitating land transaction through an upgrade o f the land registry and establishment o f a new executive agency; Strengthening customs clearance; Implement an export strategy; Review o f the effectiveness o f the labour market; Rationalizing price controls; Enhancing small business development; Improving the structure and efficiency o fpublic finances; rn Introduction o f an automatic fuel price mechanism; rn Introduction o f a 5 percent national reconstructionlevy on wages and salaries to finance the reconstruction effort; Strengthening o ftax administration; rn Collection o f arrears o f taxes; Revision o f property valuations; Conductingnegotiations with unions to determine a wage path no greater than average annual inflation; Strengthening o f the PSIP planning and implementation; rn Undertaking a series o f measures to control and lower recurrent expenditures including reduced spending on goods and services and the introduction o f an appropriately targeted safety net for the poor, elderly and needy students. Targeting o f about one-quarter o f the underlying medium term fiscal consolidation inthe 2006 budget; rn Targeting o f a 2006 primary deficit o f 7.6 percent o f GDP; Introducinga comprehensive tax and civil service reform; rn Improving fiscal transparency and reporting; m Introduction o f a system o f value added taxes by January 2008; Rationalizing o f the tax incentives system including moratorium on tax holidays, introduction o f a system o f tax write-offs for investments and the introduction o f a system o f accelerated depreciation with loss carry forward provision; Removing the existing system o f consumption taxes with the introduction o f a broad-based VAT with a lower rate and fewer exemption by 2008; Reforming the import duty regime with the introduction o f inter alia import duty exemptions for exporters and selected tourism services; Repealing o f the Investment Code Incentives and Qualified Entrepreneurs Act by May 2006; Lowering o f the corporate income tax threshold ina gradual manner to provide incentives for higher private sector investments; Poverty Eradication Stratem Improving the efficiency and quality o f government services through inter alia, enhancement o fthe performance appraisal system and commercialization o f selected government services; Implementingthe public sector modernizationprogramme which includes the maintenance o f a freeze on public sector positions, the introduction o f greater flexibility in empowerment and separation decisions, decompression o f the wage scale, introduction o f a system o f awards for highperformances and a rebalance o f the civil service mix towards more professional staff as against clerical positions; Improving the transparency ofpublic finance and strengthening fiscal monitoring including inter alia, the regular dissemination o f information publicly on fiscal and economic situation, strengthening budgetary process and accountability through audit reform and strengthening, and reportingrequirements; Implementing and consolidatingthe Government debt exchange offers including infrastructureo f dialogue with official creditors for debt relief; Strengthening the debt management capacity and transparency; Divesting o f a select portfolio o f Government assets using the proceeds for debt retirement and to finance approved capital expenditures; Undertaking independent,professional on site inspection o f the bankingsystem by June 2006; Enacting o f the Grenada Authority for the Regulationo f Financial Institutions and strengthening the administrative machinery for financial management; Strengthening national capacity to deal with natural disasters including the enforcement o f the buildingcode, the strengthening o f the regulation o f the insurance sector and participate inthe "World Bank's Catastrophic Risk Insurance Project" which i s designed to pool insurance risks across countries; Undertaking the implementationo f the various recommendations inthe post hurricanereconstruction and development programme including the housing development, agriculture rehabilitationand development, the Core Welfare Indicator Questionnaire Survey, and the infrastructure development programme. 4.4 Elements of National Poverty EradicationStrategy Grenada's Poverty Eradication Strategy focuses on the following priority elements: Economic recovery for sustained robust economic growth; Agriculture rehabilitation and development Housing development; Reduced unemployment; Improved access to social infrastructure; Human resources development; Modernization o f estate service machinery; Improved environmental management; Social safety net programmes. These priority areas show some significant overlaps, for example sustained robust economic growth necessarily involves improvement inthe human capital stock; reduced unemployment; modernize state machinery and improved social infrastructure. Poverty Eradication Strategy Sustained progress inaddressing the issue will be possible only with the meaningful involvement o f all stakeholders. The driveto eradicate poverty should be viewed in a holistic manner. The priority areas, and all areas for that matter, mustbe dealt with simultaneously. Resources and capacity limitations may mean prioritization o f activities under the broad categories but a national, integrated and holistic picture o f the poverty eradication programme has to be prevalent. Under the programme, adequate resources should become available for the effective management o f the poverty eradication programme. Economic growth and development i s the overarching objective o f Grenada's poverty eradication strategy, but it must be implemented with access to social services inparticular education, health, water, housing and employment. The strategy therefore will entail detailed activities inthose specific areas and the priority sectors o f agriculture, housing, health, education and tourism. Starting inearly 2006, a full-fledged Poverty Eradication Strategy Paper will be elaborated, usingthis interim document as its starting base. The strategy will be established following an extensive consultation process that will involve all major stakeholder groups throughout `the country, including inparticular civil society organizations and the private sector. It will aim at further sharpening the focus and coherence o f the poverty reduction initiatives, ensuring that scarce resources are directed to the neediest insociety inan effective and efficient manner. Inaddition, it will forge close links to the poverty reduction objectives and social development programmes while ensuring consistency with overall macro- economic and fiscal objectives, and achieving the Millennium Development Goals (MDG). More specifically, the Poverty Reduction Strategy Paper will seek to achieve the following: m Adopt a forward-looking and strategic approach, clearly definingthe goals for poverty reduction and spelling out steps needed to achieve Grenada's poverty . reduction objectives, including the Millennium Development Goals (MDGs). Evaluate the effectiveness o f existing poverty alleviation programmes, with a view to makingbetter use o f empirical evidence to assess programme effectiveness. In addition, it will define which institution or agency is responsible for which objectives; the size, financing and duration o fprogrammes; and the modes and . timeframe o f implementation. Prioritize programmes and policies according to their desirability and social effectiveness. Detailed costing - separatinginvestment outlays from expected recurrent costs for future maintenance and operation - will be made part o f the benefits analysis, to facilitate the evaluation o f consistency with the fiscal objectives o f the macro-economic framework, the PSIP, and available domestic and external resources. 5. MONITORINGINDICATORS, RISKAND COSTING 5.1 MonitoringIndicators The Government i s committed to create a poverty coordinationunit and buildup monitoring and reporting capability within the Ministry o f Finance and Planning. The unit will be charged with the designo f a database, collection and analysis o finformation on poverty, coordination o f all aspects o f the poverty eradication programme, and collaboration with all relevant stakeholders. Thus, the unitwill provide the required leadership and championing ofthe nationalfight against poverty. The unit will be responsible for the management o fthe Poverty Eradication Programme. It will be guidedby a broad-based National Poverty Eradication Monitoring Committee. A set o f keyindicators for the monitoring o fthe nationalpoverty condition will be identified and discussed inthe framework o f the forthcoming national consultations. The indicators will be grouped along eight major categories, namely: economic, health, education, labour and employment, population, poverty and well-being, housing, and the environment. A basic data set o findicators will be regularly monitored at the national level andupdated at least annually inthe context o f the review o f the national poverty eradication strategy. Based on consultations held with civil society, it was agreed that due to capacity limitations, simple, early and easily monitorable and verifiable indicators should be tailored specifically to the community groups. These community level indicators will then complement information at the national level. Civil society organizations will be incharge o f determining andmanagingthese indicators at the community level. The monitoring strategy will require the strengthening o f various data collection agencies that still present significant capacity limitations. 5.2 Risks The poverty eradicationprogramme calls for the full and effective participation by all citizens inits implementation. The role o fNGOs and community-based organizations which have a demonstrated capacity to promote poverty eradication initiatives will be o f particular importance. The Government intends to establish the appropriate regulatory and institutional framework and providethe necessary resources, which should be appropriatelytargeted. A key challenge for the success o f the strategy will be to ensure sustainable economic growth inthe framework o f stable institutions, which will have to rely on equitable, accountable, and fully transparent political systems. Poverty Eradication Strategy Grenada i s prone to two types o f exogenous shocks: As noted earlier, highvulnerability to a range o fnatural disasters which can at any time seriously erodes the gains achieved under the Poverty EradicationStrategy. Also, unforeseen developments inthe international economic environment could have significant negative impacts on the small and open Grenadian economy. The Government is determined to addressthese risksby focussing its attentionon investing ina long-term effort to buildthe necessarytechnical capacity on the national level, with government working along with civil society and the regional and international partners to strengthenits poverty eradication agenda. 5.3 Costing Providing sufficient financing the implementation of the Poverty Eradication Strategy i s a major concern o fthe Government and civil society. Infact, a lack o f appropriate means represents a serious risk factor for the successful implementation of the programme. The Government i s committed to explore, inthe framework o f its macro-economic programme, all financing options available. These include ordinary resources mobilized inthe national budget -recurrent and capital revenue, savings from quasi-government bodies and privatization operations - and contributions from regional and international donors and financial institutions. The Government's macro-economicprogramme presents evidence of a significant need to secure new and additional resources to ensure the integral implementation o f the poverty eradication programme. It intends to mobilize resources for its fight against poverty mainly from concessional sources, takinginto account the constraints on its limiteddebt-servicing capacity. The envisaged expenditure programme on the national level is consistent with the overall macro-economic objectives outlined earlier inthis document. Significant gaps between the MediumTerm Public Sector InvestmentProgramme (PSIP), limited technical absorptive capacity to effectively manage expenditure programmes, and the desired levels o f expenditure under National Poverty Eradication Programme to reach its objectives will be addressedwith particular care with a view to secure adequate new and additional resources and strengthenthe link betweenbudgeting and effective programme execution. Poverty Eradication Strategy References Sector Studies: Charles Leon D. 2002 "Increasing the Positive Impact on Poverty Eradication in Grenada". Ministryof Finance. Frederick Crispin 2002 Poverty Eradication Through Education ". Ministryof Finance. John Desmond 2002 "Poverty in the Agricultural Sector in Grenada". Ministryof Finance. Tarlie Francis 2002 "Audit of Social Development initiatives, Social Development Programmes and Poverty Reduction Projects ". MinistryofFinance. Henry-Lee Aldrie et a12002. "Analysis of Public Expenditure on Social Sewices and Prospects forpro-poor Budgeting in Grenada". Ministryof Finance. Other References: Government of Grenada 2006 "2006 Estimates of Revenue and Expenditure " Government of Grenada 2005 "Memorandum of Economic Policies " Government of Grenada 2005 Aide Memoire of IMFMission to Grenada Government of Grenada 2005 "Grenada Core Welfare Indicators Questionnaire (CWIQ) Suwey Basic Report" Government of Grenada 2005 "Grenada: Macro-Socio-Economic Assessment of the Damages Caused by Hurricane Emily" Government of Grenada 2004 "Grenada: Macro-Socio-Economic Assessment of the Damages Caused by Hurricane Ivan" Government of Grenada. 2000 "Grenada Medium-term Economic Strategy Paper ", 2000 - 2002 Government of Grenada. 2003 Grenada Medium-term Economic Strategy Paper ", 2003 - 2005 Government of Grenada. 2000 "International Monetary Fund Report ". Ministryof Finance Government of Grenada. 1998. "Draft Labour Force Survey ". Ministryof Finance. Government of Grenada. 1999. "Poverty Assessment Report ". Ministry of Finance. Poverty Eradication Strategy Government of Grenada. 2004. "Status of the Economy". Ministry of Finance Government of Grenada. Various Years. "Estimates of Revenue and Expenditure ". Ministryof Finance. Government of Grenada. Various Years. "Budget SpeechDocuments ".MinistryofFinance Poverty Eradication Strategy Annex 1 7.0 POVERTY ERADICATIONMATRIX AND RELEVANT DATA PROFILE Poverty Eradication Matrix 3.2 Strategies and 4.2 Targets 3road Indicators Area/Objectives Measures I.Education Modernize and upgrade all Rehabilitate all primary and # of primary and pre-primary educational facilities pre-primary schools by 2007 ;chools upgraded Improve the quality of primary, secondary and Increase use of computers in At least 10 computers ineach # of computers installed tertiary education schools primary school by 2007 # o f schools receiving computers # of resource centres established Establish functioning learning 1 Resource centre per school resource centres in primary established by 2007 Y and % o f trained and graduate and secondary schools Leachersby level o f education and Increase number o f trained sex Improveteacher training and /graduate teachers to 75% by development instruments 2007 Code o f ethics adopted and relating to implemented professional teaching standards Instruments and Code of ethics Improved teacher morale inplace by 2005 Review conditions of teaching # o f supervisors and inspectors service Condition o f service reviewed trained by level o f education and and implemented sex Develop an improved teacher supervision system System reviewed and inplace level o f teacher responsiveness to by 2006. new system Develop a competency based approach to 200 Supervisorsand inspectors Student performance on national the evaluation of learning at trainedby 2006 competency standards in selected primary and secondary levels areas by sex Strengthen continuous Minimumnational standards of # of teachers trained in continuous assessment at primary and achievement in math, english assessment methods by level o f secondary level. Train teachers and science developed and education and sex in diversified testing implemented by 2008 modalities All teachers trained by 2007. System implemented by 2008 Poverty Eradication Strategy Issues/Objectives Strategies and Measures rargets Broad Indicators Enact and enforcerevised Improve educationact effectiveness of education Establish fully functioning school management boards Achieve universal access to 100%netprimary enrolment ratio .PrimaryNER by sex and age primary education by 2003 (NER) by 2003 Increaseaccess to secondary 5 years secondaryeducation for all 3econdaryNER by sex and age education eligible, by 2008 .secondary completion rateby sex Achieve minimum of 15% of post Expandaccess to tertiary secondary age cohort enrolled by -NERby sex and age education. 2005; 30 %by 2010 -# of graduatesby sex Reducetruancy to 8% by 2005 and truancy rateby age and sex 2% by 2008 -# of centresestablished. Strengthenmonitoring of truancy Doubleexistingcapacity by 2008 EstablishiupgradeTVET centres Establishhlly functioning Parent All schools with functioning PTA # of schools with functioning Teacher Associations by 2006.NationalPTA BY 2008 PTA Engagethe mediain promoting Develop and implement a # of programmesbroadcast education comprehensivemediaprogramme # of mediahousesparticipating by 2006 in programme. Improve working relationship public responseto programmes with national, regionaland Attend various regional, internationalorganisations. internationalmeeting, # ofmeetingsattended rate of increase in external Mobiliseprivatesector to assist in funding grant selected areas of education development Issue/Objectives Strategies and Measures Targets Broad Indicators Poverty Eradication Strategy Education (cont'd) Total revision of educationcurricula All curricula fully reviseby 2007 # of curricula revised Provide learners with relevant knowledge, attitudes and skills for Establish a comprehensiveTec Voc Programmeestablishedby 2008 Revisedprogramme daily life and the job market programme that responds to HRD needs xepared -Private sector consultations Develop secondary and tertiary level completed by 2006 iiof consultations held programmes that responds to labour -Secondaryand Associatedegree -# o f participants in market requirements programmesdevelopedby 2009 :onsultations - #of programmes Develop Labour Market Information LMIS establishandrunningby developed System 2006 # of persons using LMIS -register of graduated established. Increase government spending on Present well development education Education budget increased by Education as % of total education projects for budgetary support 10%per annum over 2000 levels budget. Increasein budgetary Upgrade and strengthenteacher training allocations to education institutions Institutional strengthening of Ministry of Education Establish focus on early childhood education Private sector community involvement in education reform Implementationof education reform programme Upgrading of TAMCC Issue/Objectives I Strategies and Measures I Targets I Broad Indicators 1 Poverty Eradication Strategy Encouragebreast-feeding. ;ncrease% of babies solely % of babiessolely Reducethe incidenceof malnutrition, ireast fed for first three ireast-fed. low birth weight, infant mortality and Re-introduce/ nonthsfrom 34% in2000 to anemia in children. Strengthenschool feeding programme. 75% by 2006. Jnder five malnutrition Increaseattendance at prenatal clinics. .ate (%). School feeding programme Improveattendance of the poor to well baby in all primary schools in '/o babies with low birth clinics. rural areas by 2006. *eight. Continuehealth educationprogrammes 95% of pregnantwomen Prevalenceof anemia attendprenatal clinic by among one year olds. 2006 from 80% in2000 % of women attending Reduce infant mortality from prenatalclinic. 12.5/1000in2000 to 9/1000 Infant mortality rate by2006 % of health budget for programmes Expandimmunisationamongall 0-1year 100%immunisationby 2006 Under one year diseases olds. from 97% in 2000. immunisationrate Expandimmunisationof all school age 70% of all school age children.Against the six childhooddiseases childrenimmunisedby 2006 Child immunisationrate and rubella. 75% mothersimmunised Increase immunisationof antenatalmothers against tetanus by 2006 Antenatal mothers at or before first visit. immunisedrate (%) Intensify and expand the vector control. Morbidity rates programme, mainly through community awareness. % expenditure on immunisationand preventative health. Issue/Objectives Strategiesand Measures Targets BroadIndicators Poverty Eradication Strategy Improve health facilities Construct, and equip new General jeneral hospital Hospital. ehabilitation completed, :quippedand operational by Renovate and upgrade major health :006 clinic in St. Georges. lealth clinics renovated and Upgrade and rehabilitate community ipgradedby 2006 health facilities Reduce prevalence of STDIHIVI Intensify community awareness of mprove AIDSiHIV 5.2 AIDS and other diseases reproductivehealth and family rwareness. planning issues.