Technical Assistance in the Development of Community Safety Plans for St. Lucia CFYR Partner Communities
Sign inCARIBBEAN DEVELOPMENT BANK
St.
2018 · 43 pages

Abstract
Lucia, an English-speaking country in the Eastern Caribbean, achieved its independence on February 22, 1979. The country's population was 167,366 in 2011 and increased to 172,623 by 2014. The population between 10 and 24 years was 26.3% in 2012, and the birth rate is increasing while the death rate is declining. The percentage of persons above 55 years is expanding, with more than 40% of the population residing in the north of the island, particularly in Castries. The country's economy was heavily reliant on the export of bananas until the late 1990s, when earnings from tourism surpassed revenue from bananas. This shift occurred due to lost preferential treatment for Caribbean banana-exporting countries, such as St. Lucia, and the impact of severe weather systems, lack of technology, and crop diseases. Despite efforts to restore the industry, the earnings gained under protected trade did not return. The shift to tourism has resulted in mixed outcomes for different sectors and regions. Farmers, who previously profited from the banana industry, have had to find alternative means of supporting their families. The industry brought employment and improved living standards for participants, but the decline in the banana industry intensified internal migration. Those who became unemployed moved to areas such as Castries, Soufrière, Gros Islet, and Vieux Fort in search of work. St. Lucia has been struggling to achieve growth, with an average growth rate of less than 1% from 2005 to 2015, according to the Caribbean Development Bank. The country's production output was weak, and not enough revenue was being collected. Recurrent expenditure constitutes the bulk of total spending, with wages and salaries comprising a significant share of recurrent expenditure. In 2016, wages and salaries were estimated at 9.7% of GDP. The Government of St. Lucia's spending has been strained due to debt servicing. Public debt as a percentage of GDP was 65% in 2011, 71.1% in 2012, 74.5% in 2014, and 75.4% in 2015. In response, the Government introduced Value Added Tax (VAT) in 2012 and facilitated infrastructural projects to generate employment. However, these policies and strategies have not resulted in the anticipated economic and social benefits. The rate of unemployment was approximately 21.2% in 2011, increased to 24.4% in 2014, and declined slightly to 22.1% in 2016. The rate of youth unemployment was approximately 43.1% in June 2017. Poverty is one outgrowth of the high rate of unemployment in St. Lucia. Only two country poverty assessments have been conducted in St. Lucia: one in 1995 and the other in 2005/2006. In the latter assessment, close to 29% of the population was determined poor, up from 25.1% in 2005. Significantly, 50% of the poor were under 18 years old, and 70% of the poor were female-headed households.
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