Latest update December 17th, 2024 3:32 AM
18% of Caribbean’s citizens living on less than G$600 a day – IDB
…says poverty level exceeds past 10 years
Kaieteur News – A recently published report by the Inter-American Development Bank (IDB) revealed that the Latin America and the Caribbean (LAC) region faces a social challenge with nearly 18 percent of the population living on less than US$3.1 per day.
IDB’s Chief Economist, Eric Parrado
The aforementioned was highlighted by IDB’s Chief Economist, Eric Parrado in the preface of the report titled, ‘PREPARING THE MACRO-ECONOMIC TERRAIN for Renewed Growth’.
Parrado said, “Policymakers in the region need to design and implement policies that close development gaps and, at the same time, help them weather the challenges of the economic environment.”
He underscored the importance for the LAC region to address a triple challenge-three complex, interconnected macroeconomic issues-to achieve its population’s aspirations for development and welfare.
In highlighting the region’s social challenge, Parrado noted that not only is 18 percent of the population living on less than US$3 a day, but the poverty level exceeds that of a decade ago.
“While some correction has taken place, the pandemic increased poverty overall, and recently, Russia’s war in Ukraine has made it even more difficult to reclaim lost gains. In addition to poverty, inequality is also on the rise,” he said.
Secondly, he pointed out that the region faces a fiscal challenge, noting that the COVID pandemic stressed fiscal resources and expenditures. “As a result, after the crisis, sovereign debt reached over 70% of GDP and while fiscal consolidation is still possible many risks remain,” he added.
The economist also added that the region faces a growth challenge. He said productivity growth and, consequently, long-term economic growth is currently estimated at only around 2 percent too low to meet the development goals of most countries in the region.
In addition to these specific issues, Parrado noted that the region also faces the cross-cutting challenges of dealing with climate change, advancing diversity, inclusion, and equity, and strengthening the institutional context and the rule of law for a better business environment.
Last November, Kaieteur News reported that a study conducted by the World Bank found that approximately 48 percent of Guyanese live in poverty and are surviving on less than US$5.5 or GYD$1,000 per day.
In its Fact Sheet on Guyana, the international organisation said the country’s national poverty status is among the highest in the LAC region. Moreover, it pointed out that the poverty levels are highest in the sparsely populated interior or hinterland regions where communities have limited access to economic opportunities, healthcare, and public services.
According to the report, “Guyana’s national poverty headcount, the share of the population living below US$5.5 a day, is among the highest in the Latin America and Caribbean (LAC) Region at around 48 percent.”
The report also said that Guyana “experiences high emigration and brain drain, with 39 percent of all Guyanese citizens currently residing abroad and roughly half of all Guyanese with a tertiary education have migrated to the United States.”
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