## _cr06289

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---

### I. Purpose, Scope, and Framework (GSPS)
- GSPS is a medium-term strategy covering the next five years and makes poverty reduction the direct focus of Government economic and social policy.
- GSPS informs:
  - the medium-term macro-economic framework;
  - the structural reform agenda;
  - the medium-term public investment programme;
  - annual budgets to be presented to Parliament.
- Government’s main poverty-reduction strategy: pursuit of sustained strong economic growth.
- GSPS intended as a rolling plan to be updated annually.
- Target growth objective: GOCD will aim at achieving a sustained rate of economic growth of 3% over the medium term.
- Priority sectors for growth: tourism, agriculture, fisheries, energy and water.
- Enablers for private investment: reduce cost and improve reliability of transportation and energy; increase labour productivity via education and training; infrastructural development.

### II. Public Consultation and Ownership
- Inputs: Integrated Development Plan (IDP) consultative process and report; Country Poverty Assessment (CPA) (2002); GSPS-specific consultative process with four focus groups.
- Internal review: early drafts circulated to MoFP technical staff and Heads of Division; Permanent Secretaries involved via a mid-December 2004 workshop.
- Regional/national consultations:
  - Seven regional focus group discussions (January 2005): 35 Local Authorities; 19 CBOs; 10 NGOs; 19 Government Organizations; views of over one thousand representatives.
  - National workshop mid-January 2005: twenty-nine participants (Permanent Secretaries, Heads of Regional Organizations, Heads of Local Organizations).
- International/regional consultations: informal submissions to IMF and World Bank teams; donors meeting on June 23, 2005.

### III. Vision, Strategic Pillars, and Fiscal/Admin Objectives
- Government vision (verbatim): “A place characterized by a people empowered to contribute to their own well-being and that of our country, through policies of Government geared to facilitating an environment within which private enterprise can flourish to the benefit of our people.”
- Three strategic pillars:
  1. Fiscal policy and administrative reform (create enabling environment for private enterprise);
  2. Sectoral strategies for growth;
  3. Strategies for poverty reduction and social protection.
- Fiscal objectives: prudent fiscal policy, expenditure restraint, administrative modernization, control of borrowing to reduce government debt to sustainable levels.
- Administrative reforms: remove impediments to foreign investment and business activity; simplify access to land and business start-up; restructure public sector enterprises; outsourcing and commercialization.

### IV. Poverty: Data Sources and Key Findings
- Primary data source: 2002 Country Poverty Assessment (CPA) comprising Survey of Living Conditions (SLC), Participatory Poverty Assessment (PPA) and Institutional Analysis (IA).
- Key CPA figures (exact):
  - Poverty in Dominica: about 29% of households and 39% of the population.
  - Indigent (very poor): approximately 10% of households and 15% of the population.
  - Three quarters of poor households live in rural areas; one in every two households in rural areas is poor.
  - 24% of poor households are in Roseau and Portsmouth.
  - Poverty among the Caribs: 70% of the Carib population is poor and almost half are indigent.
- Indigence (US$1 a day) benchmark:
  - Dominica: below 2 percent.
  - Comparative: Grenada 4.7%, St. Lucia 2.97%, St. Vincent 5.55%.
  - MDG target (halving <US$1 a day by 2015) expected to be achieved well before that date.
- MDG-related indicators (exact figures preserved):
  - Primary education enrolment rate: 99 percent.
  - Child mortality: 23 per 1000 in 1990; 14 per 1000 in 2000; about 10 per 1000 in 2002.
  - Maternal mortality: about one per 1000.
  - Safe drinking water: approximately 95% of households; sanitary toilet facilities: 85% of households.
- Poverty lines:
  - Indigence line for an adult: EC$2,000.00 per annum.
  - Poverty line for an adult: EC$3,400.00 per annum.
- Incidence table (exact figures preserved):
  - Indigent/Very Poor: Households 11% | Population 15%
  - Poor: Households 18% | Population 24%
  - ALL POOR: Households 29% | Population 39%
  - NON POOR: Households 71% | Population 61%
  - TOTAL: 100% | 100%
- Estimated counts (mid-2002, exact phrasing preserved):
  - around 2,500 indigent households;
  - around 4,400 poor households;
  - just fewer than 7,000 households have expenditures below the poverty line.

### V. Geographical Distribution and Spatial Targeting
- Parish-level concentration (key figures from Table 3, households unless noted; population figures shown in parentheses):
  - St. George (Roseau): Indigent 5%, Poor 13%, All 18% (population: 23%); % of all poor 12%
  - Rest of St. George: Indigent 11%, Poor 12%, All 24% (39%); % of all poor 6%
  - St. John: Indigent 7%, Poor 21%, All 28% (37%); % of all poor 9%
  - St. Peter: Indigent 6%, Poor 12%, All 17% (31%); % of all poor 1%
  - St. Joseph: Indigent 13%, Poor 20%, All 33% (44%); % of all poor 11%
  - St. Paul: Indigent 12%, Poor 11%, All 23% (36%); % of all poor 9%
  - St. Luke: Indigent 4%, Poor 28%, All 32% (48%); % of all poor 3%
  - St. Mark: Indigent 13%, Poor 31%, All 44% (62%); % of all poor 4%
  - St. Patrick: Indigent 9%, Poor 32%, All 41% (48%); % of all poor 16%
  - St. David: Indigent 28%, Poor 23%, All 52% (67%); % of all poor 15%
  - St. Andrew: Indigent 9%, Poor 16%, All 25% (32%); % of all poor 12%
  - TOTAL: Indigent 10%, Poor 18%, All 29% (39%); % of all poor 100%
- Spatial targeting implication: prioritize St. David, St. Patrick, and St. Mark given disproportionate share of poor households and high population incidence.
- Urban vs Rural:
  - Urban indigence 6%; urban overall poverty 19%.
  - Rural indigence 13%; rural overall poverty 33%.
  - About three quarters of poor households live in rural areas.
  - Urban areas contain around a quarter of all poor households and population.

### VI. Demographics, Children, Ethnicity, and Vulnerable Groups
- Households with children: poor households 70% vs non-poor 44%; half of Dominica’s children live in poor households.
- Elderly: 27% of households contain elderly (over 64 years); little variation by poverty status.
- Carib population:
  - Incidence of poverty among Carib population: 70%, almost half indigent.
  - Caribs represent around 4% of total population and 7% of poor population.
  - Carib household conditions: 39% do not have access to safe water, virtually none have a flush toilet, fewer than 30% have proper kitchen facilities; 81% have land they cultivate.
- Indigent households:
  - Overall incidence of indigence: around 11%.
  - Indigent households tend to be larger, lower educational attainment, worse housing, more overcrowding, lower asset ownership.
  - Public assistance take-up is low; stigma cited as a reason.

### VII. Employment, Sectors, and Labour Market Findings
- Employment and dependency:
  - 69% of poor households have at least one person employed compared to 77% of non-poor households.
  - Dependency ratio in poor households: 3.4 (over double that in non-poor households).
  - Unemployment in labour force of poor households: 40% compared with 18% in non-poor households.
  - Overall unemployment rate: 25% (compared to around 16% in 1999 and 10% in 1991).
- Youth unemployment:
  - Almost three-quarters of 15-24 year olds (who are not studying) from poor households are unemployed; this cohort contributes almost half of all unemployed persons.
- Sectoral distribution (from Table 4, Poor / Non-poor / Total):
  - Bananas: 5% / 6% / 6%
  - Other Agric: 26% / 15% / 18%
  - Manufacturing: 3% / 5% / 4%
  - Construction: 18% / 8% / 10%
  - Wholesale/retail: 11% / 15% / 14%
  - Government: 11% / 20% / 18%
  - Other Services: 24% / 26% / 26%
- Occupational status (Poor / Non-poor / Total):
  - Prof/Man/Tech: 7% / 24% / 20%
  - Sales/Clerical: 14% / 25% / 22%
  - Farmers: 25% / 18% / 20%
  - Skilled manual/crafts: 29% / 19% / 21%
  - Elementary: 25% / 14% / 17%
- Implication: poor households are over-represented in agriculture and construction and under-represented in government and professional occupations; employment growth should target youth and sectors with high poverty incidence.

### VIII. Health, Education, Housing, Assets, and Coping Mechanisms
- Health:
  - Maintain free immunisation programme and decentralised health clinics.
  - Introduce graduated health charges with exemptions for the poor (feasibility to be examined).
  - Princess Margaret Hospital responsible for over 40% of total health spending; current collection ~10% of hospital’s total spending.
  - Continue participation in OECS Drug Procurement Programme.
- Education:
  - Maintain Education Trust Fund, School Feeding and Textbook Programmes.
  - Review primary school distribution (projection: "Primary school enrolment is likely to fall by around 20% in the next 5 years").
  - Continue BERP with emphasis on curriculum development and vocational/technical education.
- Housing:
  - Majority own houses; incidence of squatting about 3%.
  - Around 90% have electricity and access to piped drinking water.
  - Over 60% of houses built entirely or partly in concrete.
  - Poor housing indicators (poor vs non-poor; selected figures):
    - House with wood/ plywood walls: Poor 60% | Non-poor 37%
    - No safe water: Poor 16% | Non-poor 9%
    - No electricity: Poor 23% | Non-poor 12%
    - No toilet or latrine: Poor 29% | Non-poor 16%
    - No bathing facilities: Poor 35% | Non-poor 20%
    - No kitchen facilities in house: Poor 41% | Non-poor 25%
    - Uses wood for cooking (Does not use gas): Poor 38% | Non-poor 21%
- Ownership of durables among poor households:
  - 50-60% have refrigerators, televisions and telephones.
  - 70% have gas or electric stoves (implying 30% rely on open fires or neighbours).
- Coping mechanisms:
  - Seeking employment overseas or in the capital; multiple low-paid jobs; reliance on family remittances; reliance on government, NGOs, churches; subsistence production; reducing expenditures and savings.

### IX. Social Protection System and Financing
- Dominica has an extensive social safety net of government- and NGO-administered programmes.
- World Bank estimates:
  - GOCD spent roughly 5.6% of GDP on social protection in 2000/01.
  - Increased to about 5.9% of GDP in 2004/05.
  - Nearly half of expenditures were from Dominica Social Security (DSS) (self-financing); government expenditures on social protection about 3.0% of GDP.
- Observation: existing strategy does not address critical vulnerabilities fully and coordination between programmes is weak; under-subscription observed for some programmes during 2001-2004.
- GSPS priority criteria for programmes:
  - Promote economic growth and job creation;
  - Existing effective programmes with direct/indirect impact on poverty reduction;
  - New initiatives that do not require substantial additional government expenditures unless externally funded.

### X. Priority Poverty Reduction Actions (selected with indicative costs)
- Environmental: Formulate strategies for addressing environmental degradation — responsible: Environment, CDGA, NGOs.
- Health:
  - Maintain immunization programme and distribution of primary health care facilities — Cost: Not applicable (existing programmes).
  - Investigate feasibility of graduated health charges — Cost estimate: US$16,000 (2 months at US$8,000 per month) if done by outsider.
  - Secure participation in OECS Drug Procurement Programme — Cost: Not applicable (would produce net savings).
- Education:
  - Maintain government pro-poor education assistance programmes — Current annual costs: TBS $180,000; ETF $45,000; SFP $50,000 (for administration only).
  - Review distribution of primary schools — Cost: None (internal).
  - Initiate life skills education, extend TVET — Costs: Not assessed.
- Social Safety Nets:
  - Review operation of welfare system — outside expertise required; raising Public Assistance and increasing eligibility could exceed $10 million annually.
  - Review Dominica Social Security arrangements to ensure sustainability — action to be explored.
- Justice and Child Support:
  - Improve operation of child maintenance system — Cost: None unless additional staff hired; should be self-financing.
  - Establish task force to review law related to families and children — Cost estimate: US$24,000 if outside expertise hired (3 months at $8,000 per month).
- Housing/Infrastructure:
  - Squatter regularisation programme — from Housing Division; cost: not specified.
  - Maintenance of water supply and road networks — financed from existing budgets.
- Carib Community:
  - CPDP financing commitment: $4.3 million for 2003-2007.
  - Communal land reserve: 3,700 acres for 1,700 resident Carib population; Carib population approx. 3,000 or 4 percent of population.
  - CPDP medium-term objective: equalize Carib incomes and poverty indicators with national average by 2010.

### XI. PSIP, New Projects, and Financing (medium-term 2005/06–2009/10)
- Priority new GSPS projects and cost estimates:
  - Environmental Disaster Fund: $20.4 million (initially about 5% of the PSIP for the medium-term).
  - Road Maintenance and Rehabilitation Programme (RIP): $12.4 million.
  - Establishing D-GEN (GOCD ITC Network): $10.6 million.
- If included, total cost of adjusted PSIP: $43.4 million for the medium-term.
- Adjusted PSIP totals (2005/06-2009/10):
  - NEW: 5.4 9.3 11.4 10.1 7.2  43.4  10.4% of Total
  - Current PSIP: 73.3 70.0 72.9 76.3 81.7 374.2 89.6% of Total
  - Total PSIP: 78.7 79.3 84.3 86.4 88.9 417.6 100.0
- Financing of PSIP (2005/06-2009/10):
  - Grants: 55.1 55.0 54.0 55.3 56.9 276.3 66.2% of financing
  - Local Counterpart: 6.3 6.8 10.1 10.4 10.7 44.3 10.6% of financing
  - Loans: 17.3 17.5 20.2 20.7 21.3 97.0 23.2% of financing
- GOCD counterpart funding total: $44.3 million for 2005/06 to 2009/10 (average $9 million a year).
- PSIP implementation constraints: donor funding timing, internal bottlenecks, need to outsource engineering/technical works, improve PSIP management.

### XII. Recurrent Costs of GSPS (medium-term totals and annual profile)
- Aggregate total recurrent cost (Table 12): 17,980 $,000
- Annual totals (Table 12):
  - 2005/06: 3,450 $,000
  - 2006/07: 3,705 $,000
  - 2007/08: 3,640 $,000
  - 2008/09: 3,765 $,000
  - 2009/10: 3,820 $,000
- Major components (annual profiles and totals, $ ,000):
  - Agriculture & the Environment: 320; 320; 100; 100; 100; Total 940
  - Est. Fisheries Parastatal: 220; 220; -; -; -; Total 440
  - Fisheries Surveillance: 50; 50; 50; 50; 50; Total 250
  - Finance & Planning*: 660; 660; 660; 730; 730; Total 3,440
  - Inland Revenue Institutional Strengthening, VAT Unit: 530; 530; 530; 530; 530; Total 2,650
  - Communications, Works & Housing (Institutional Strengthening, Road Maintenance): 1,000; 1,200; 1,400; 1,400; 1,400; Total 6,000 (each of two line entries)
  - Tourism: 1,000; 1,050; 1,050; 1,100; 1,150; Total 5,350
  - Health & Social Security (HIV/AIDS): 320; 320; 320; 320; 320; Total 1,600
  - Education, Youth, Sports & HRD (Distance Learning, DSC): 50; 300; 550; 50; 50; Total 1,000
  - Legal, Immigration & Labour (Institutional Strengthening): 50; 50; -; -; -; Total 100
- Total recurrent costs of the GSPS to the GOCD: $17.9 million for the medium-term.

### XIII. Macro, Growth, Tourism, Trade and Employment Projections (selected tables and targets)
- Growth target: Real GDP Growth Rate 3% per annum (2005–2009).
- Public sector debt/GDP: 103.9% (2005) → 87.1% (2009) (Table 17 values: 103.9% 99.5% 95.3% 91.1% 87.1%).
- Tourism projections (Table 15; expenditures and visitors):
  - Stay-over visitors growth assumption: average 5.5% a year.
  - Per capita tourist expenditures growth: 2% a year.
  - Cruise ship visitors stable at about 300,000 a year.
  - Total Tourism Exp (selected years, $ ,000):
    - 2004: Total Tourism Exp 162,370 $,000; Total Tourism Exp % of GDP 22.0; Contribution to GDP 4.3
    - 2009: Total Tourism Exp 221,569 $,000; Total Tourism Exp % of GDP 24.4; Contribution to GDP 4.9
  - Conclusion: growth in tourism expenditures could average 6.1% a year; contribution increases from 4.3% to 4.9% of GDP.
- Commodity trade scenario (Table 14, $ million):
  - Exports (without Water) A.R.G: 6.7 %
  - Water Exports A.R.G: 15.2 %
  - Total Exports A.R.G: 3.8 %
  - 2004: Exports 111.3; Imports 390.8; Visible Balance of Trade -279.5; Exports % of GDP 15.1; Imports as% of GDP 52.8
  - 2009: Exports 155.3; Water Exports 85.0; Total Exports 238.3; Imports 473.1; Visible Balance of Trade -234.8; Exports % of GDP 26.2; Imports as% of GDP 52.1
- Labour force and poverty projections (Table 16):
  - Population (mean): 2004 69,261 → 2009 68,824; A.R.G -0.1
  - Labour Force: 2004 28,010 → 2009 28,180; A.R.G 1.2
  - Employment: 2004 23,860 → 2009 26,420; A.R.G 2.0
  - Unemployment (numbers): 2004 4,150 → 2009 1,420; Unemployment Rate (%): 2004 14.8 → 2009 6.2
  - Poverty Levels (number and percent of population): 2004 32,100; 46.3% → 2009 24,200; 35.2% (A.R.G -5.7)
- Performance indicators (Table 17 selected targets 2005–2009):
  - Unemployed Rate: 13.1% 11.4% 9.8% 8.0% 6.2%
  - Poverty Head Count: 36% 32% 27% 24% 20%
  - Indigent Poverty: 15% 13.5% 12% 11% 9%
  - Poverty Gap Ratio: 10.2% 9.5% 8.5% 8% 7%
  - Public sector debt/GDP: 103.9% 99.5% 95.3% 91.1% 87.1%
  - Government Primary Balance target: 3% of GDP (each year).

### XIV. Risks, Uncertainty Analysis, and Priority Sequencing
- Major economic and implementation risks:
  - Environmental shocks (hurricanes, volcanic eruption) can disrupt growth and exacerbate poverty.
  - Energy crisis.
  - Loss of international donor support.
  - Inability to attract private foreign investment.
  - Failure to increase productivity and competitiveness (most serious economic risk).
- Specific risk implications:
  - Wage increases outpacing productivity and "irresponsible Trade Union demands" could erode competitiveness.
  - Continued immigration of lower-wage workers could limit unemployment and poverty decreases among natives.
- Priority sequencing and scheduling:
  - GSPS implementation period: 2005/06 to 2009/10.
  - Early actions: administrative reform within two years; introduce fiscal measures early; accelerate PSIP implementation; remove legislative/bureaucratic restrictions in 2005/06; improve social protection targeting coverage in 2005/06.
- Monitoring and evaluation:
  - PPU to incorporate monitoring into budget exercise.
  - Mid-term evaluation in 2007/08; end-of-period evaluation in 2009/10.
  - Establish performance criteria including objectively verifiable indicators and qualitative indicators of inputs and outputs.

### XV. Institutional Arrangements for Implementation
- Institutionalization:
  - Establish GSPS Steering Committee; PPIU within MOFP to serve as Secretariat/implementation arm.
- Steering Committee:
  - Headed by a designated Minister; not more than 15 members including Financial Secretary; Head of PPIU (Secretary); Social Development Planner; all Permanent Secretaries; private sector and civil society representatives.
  - Meet quarterly; PSIP Committee to submit quarterly reports to GSPS Steering Committee.
- PPIU roles and staffing:
  - Responsibilities: analyses of economic and social performance; monitor poverty levels; establish PROMISE (Poverty Reduction Monitoring and Evaluation Management System); appraise and approve project proposals; submit proposals to IFIs/donors.
  - Personnel provided for: Head, PPIU (Chief Development Planner); Social Development Planner; Senior Economist; Two Economists; A Statistician (social statistics).
  - Budgetary provision: recurrent costs about $80,000 a year ($50,000 salaries and $30,000 operating expenses).

*Source: _cr06289 - provided IMF chapter/section.*

### 1.           Geographical           Distribution                      ..................................................

### 1.           Geographical           Distribution                      .........................................................

### Major sections and thematic structure
- 1.           Geographical           Distribution ...........................................................
- 2. Urban and Rural Poverty ..............................................................
- 3. Demographics  ................................................................................
- 4.           Ethnicity                      .................................................................................
- 5. Employment and Economic Activity  .........................................
- 6.           Disability           and           Health                      ...................................................................
- 7. Education                      .......................................................................................
- 8. Housing  ...........................................................................................
- 9. Ownership of Assets and Durables  ............................................
- 10.           Children/Single           Parenthood                      .......................................................
- 11. The Elderly and the Disabled  .....................................................
- 12.           The           Indigent                      .................................................................................. 

### Coping mechanisms, challenges, and poverty reduction focus
- D. Coping Mechanisms and Survival Strategies  .........................................
- E. The Challenge of Poverty Reduction  ..................................................... 

### REDUCING POVERTY AND IMPROVING SOCIAL PROTECTION (III)
- A. The  Institutional  Framework:  Social  Protection  Systems in Dominica  .....................................................................................................
- B. The Medium-Term Poverty Reduction Strategy for Dominica  ...........
- C. Poverty Reduction Policies and Programmes  .......................................
- D. Economic Development and Job Creation  ............................................
- E. The Maintenance of Existing Social and Physical Infrastructure Programmes  .............................................................................................
  - 1. Health  .............................................................................................
  - 2.           Education                      .......................................................................................
  - 3. Social Safety Nets/Social Sectors  ..............................................
  - 4.        Housing/Infrastructure                ............................................................
  - 5.           Institutional                      ...................................................................................
  - 6.           Legal                      ...................................................................................
  - 7.           Environmental                      ...............................................................................
- F. Special Focus on the Carib Territory  .........................................................................

### THE ECONOMIC AND FISCAL CONTEXT (IV)
- IV. THE ECONOMIC AND FISCAL CONTEXT  .............................................................

### PROMOTING SUSTAINED ECONOMIC GROWTH (V)
- A. Enabling Environment and the Role of Government  ...........................
- B. Sectoral Strategies for Recovery and Growth  ......................................
  - 1.        Tourism                ........................................................................................
  - 2.           Agriculture                      .....................................................................................
  - 3.           Fisheries                      .....................................................................................
  - 4.           Manufacturing                      ...............................................................................
  - 5. Information and Communications Technology  ........................
  - 6. Other Sectors  ................................................................................
    - a.           Construction           and           Housing                      ..............................................
    - b. Energy  ...............................................................................
    - c.           Transportation                      ................................................................. 
    - d.           Micro-business           development                      ......................................... 
    - e.           Developing           our           Human           Resources                      ................................ 
    - f. Managing the Environment  ............................................ 
    - g.           The           Dominica           Diaspora                      ................................................

### RESOURCE REQUIREMENTS FOR IMPLEMENTING THE GSPS (VI)
- A. Financial and Cost Implications of the GSPS  ........................................
- B. Implications for the Public Sector Investment Programme  ...............
- C. Additional Strategic Projects  ..................................................................
- D. Recurrent Costs of the GSPS  ...................................................................
- E. GSPS Recurrent Costs by Ministries  ........................................................

### IMPACTS, MONITORING AND EVALUATION OF THE GSPS (VII)
- A. Growth Related  ......................................................................................... 
- B. Employment, Poverty Reduction and Social Protection Related ....... 
- C. Improved Economic Performance  ..........................................................
- D. Trade Performance Scenario  ...................................................................
- E.                      Tourism                      ....................................................................................................... 
- F.  Labour force, Employment and Poverty Reduction Prospects  .........

### IMPLEMENTING AND MONITORING THE GSPS (VIII)
- A. Performance Indicators for the GSPS  ....................................................
- B.  Institutional Capacity for Implementation of the GSPS  ..................... 

### RISKS TO EFFECTIVE IMPLEMENTATION OF THE GSPS (IX)
- A. Risks and Uncertainty Analysis  ...............................................................
- B. The Energy Crisis  .......................................................................................
- C. Loss of International Donor Support  ......................................................
- D. Inability to Attract Private Foreign Investment  ..................................
- E. Failure to Increase Productivity and Competitiveness  .......................
- F. Time Frame and Scheduling  .................................................................... 

### IMPLICATIONS AND CONCLUSION (X)
- X. IMPLICATIONS AND CONCLUSION  .......................................................................

### Tables listed in the content
- 1. Millennium Development Goals  ..............................................................
- 2. The Incidence of Poverty in Dominica  ...................................................
- 3. Geographic Distribution of Household Poverty .............................
- 4. Employment Characteristics  ...................................................................
- 5. Housing Indicators by Poverty Status  ....................................................
- 6. Priority Poverty Reduction Actions  ........................................................
- 7. GDP by Sector 1998 – 2004  ......................................................................
- 8. Dominica Medium Term Projections 2006 – 2010  ................................
- 9. Tourism Expenditures  ...............................................................................
- 10. Tourism Contributions and Objectives  ..................................................
- 11. Adjusted PSIP, 2005/06 – 2009/2010  .....................................................
- 12. Recurrent Costs, GSPS 2005/06 – 2009/2010  .......................................
- 13. Recurrent Expenditure, Ministries, 2004/05 – 2009/10  .....................
- 14. Commodity Trade Scenarios, Export and Imports, 2004 – 2009  .......
- 15. Tourism Expenditures and Projections for 2004/05 – 2009/2010 ........
- 16.  Employment Scenarios ..............................................................................
- 17. Performance Indicators, 2005 – 2009  ....................................................

### Appendices listed in the content
- 1. Dominica Policy Matrix, 2005 – 2010  ..................................................................
- 2. Government and Non-government Administered Social Programmes  ..........
- 3.  Strategic Reform Agenda........................................................................................
- 4. Investor Roadmap Process Recommendations  ..................................................

*Source: _cr06289 - 1.           Geographical           Distribution                      ...........................................................*

### 5.  Indicative Financial Implications of Priority Poverty Reduction Actions  .....

### 5.  Indicative Financial Implications of Priority Poverty Reduction Actions

### I. Purpose, Scope, and Framework
- The Growth and Social Protection Strategy (GSPS) is a medium-term strategy covering the next five years and makes poverty reduction the direct focus of Government economic and social policy.
- GSPS informs:
  - the medium-term macro-economic framework;
  - the structural reform agenda;
  - the medium-term public investment programme;
  - annual budgets to be presented to Parliament.
- Government’s main poverty-reduction strategy: pursuit of sustained strong economic growth.
- GSPS is intended to be updated annually as a “rolling” plan.

### II. Public Consultation Process (evidence of ownership)
- Three consultative inputs informed the GSPS:
  - Integrated Development Plan (IDP) consultative process and report.
  - Country Poverty Assessment (CPA) (2002).
  - GSPS-specific consultative process with four focus groups: internal-governmental, internal-regional, national, and international/regional.
- Internal review process:
  - Early draft circulated to Ministry of Finance and Planning (MoFP) technical staff; two-week review period and a half-day working session.
  - Circulation to Heads of Division and Chief Technical Officers; approximately thirty-six copies with two-week review period.
  - Permanent Secretaries involved from mid-December 2004 via a workshop.
- Regional and national consultations:
  - Seven regional focus group discussions in January 2005: 35 Local Authorities; 19 CBOs; 10 NGOs; 19 Government Organizations. Views of over one thousand representatives were represented.
  - Focus groups used a questionnaire guide of approximately sixty questions; proceedings were recorded and transcribed.
  - A national workshop in mid-January 2005 had twenty-nine participants (Permanent Secretaries, Heads of Regional Organizations, Heads of Local Organizations).
- International/regional consultations:
  - Informal submissions to IMF and World Bank mission teams (including CDB and ECCB representatives).
  - Donors meeting on June 23, 2005 constituted formal international/regional consultation.

### III. Vision, Strategic Pillars, and Macroeconomic Objectives
- Government vision quoted verbatim:
  - “A place characterized by a people empowered to contribute to their own well-being and that of our country, through policies of Government geared to facilitating an environment within which private enterprise can flourish to the benefit of our people.”
- Three strategic pillars of the GSPS:
  1. Fiscal policy and administrative reform, including creating an enabling environment for private enterprise activity;
  2. Sectoral strategies for growth;
  3. Strategies for poverty reduction and social protection.
- Fiscal and administrative objectives:
  - Prudent fiscal policy based on expenditure restraint, administrative modernization and reform, and control of borrowing to reduce government debt to sustainable levels.
  - Administrative reforms aimed at a more modern and effective public service supportive of private sector development.
  - Key reforms include: removing impediments to foreign investment and business activity; creating simple and transparent conditions for access to land, construction/renovation and start of new businesses; restructuring public sector enterprises; outsourcing and commercialization of some government activities.
- Target growth objective:
  - GOCD will aim at achieving a sustained rate of economic growth of 3% over the medium term.
- Priority sectors for growth: tourism, agriculture, fisheries, energy and water.
- Enablers for private investment:
  - Reduce cost and improve reliability of transportation and energy;
  - Increase productivity of the labour force via education and training (including technical, management and entrepreneurial skills);
  - Infrastructural development and improved focus on education and training.

### IV. Role of Social Protection
- Even with higher economic growth, targeted and well-managed social protection programmes are necessary.
- GOCD commitment: improving targeting, management, and administration of social programmes and better coordination among programmes and agencies.
- Expert reviews conclude Dominica already has an appropriate range of programmes and instruments to implement the social protection strategy.

### V. Medium-term Challenges (governmental and private sector)
- Main public-sector challenges (verbatim themes):
  - Continuing sound fiscal management to consolidate progress towards reducing the government’s financing requirements to sustainable levels and reducing public sector indebtedness;
  - Continuing reform of the public service to make the administration a more cost effective “customer driven” service;
  - Reducing poverty levels through growth and employment generation, and improving the effectiveness of the social services and social assistance programmes;
  - Improving the law and order apparatus, including the effectiveness of the judicial and land administration systems in swift enforcement of property rights and contracts;
  - Improving the execution, focus and effectiveness of the public sector investment in upgrading economic infrastructure;
  - Upgrading regulation and oversight of providers of energy, water, transportation (seaport and airport) and telecommunication services, to support more effectively improvements in quality (reliability and timeliness) of services and reduction of costs to the rest of the economy;
  - Improving the efficiency of institutions and simplifying procedures that make the enabling environment for private enterprise with a view to shortening the process and reducing the cost of establishing new and expanding existing businesses;
  - Improving the protection and management of the natural environment.
- Private-sector challenges (verbatim themes):
  - Assessing realistically and responding more positively to improved overall economic prospects and investment opportunities resulting from progress towards macroeconomic stability, including a more active and innovative support of the financial sector to business initiatives;
  - Increasing owners’/managers’ alertness and responsiveness to changes in business environment driven by globalization, technical progress and the changes in the labor market;
  - Increasing investment in the use of and development of the country’s natural and human resources, including closer collaboration with educational institutions and training of employees to help enhance productivity and sharpen the competitive edge;
  - Improving the consultation process within the sector and engaging in a constructive dialogue with the Government on steps to improve the business/investment environment.
- Institutional and cultural constraints reported:
  - Resistance and poor attitude to change, low entrepreneurial and marketing skills, lack of accountability and poor work ethics, remnants of the culture of dependency, political interference and nepotism, poor communication and low levels of trust among social partners, large number of public holidays and low number of effective work hours, limited human capital in both numbers and competencies.

### VI. Poverty: Data Sources, Key Findings, and MDG Benchmarks
- Primary data source: 2002 Country Poverty Assessment (CPA) comprising a Survey of Living Conditions (SLC), a Participatory Poverty Assessment (PPA) and an Institutional Analysis (IA).
- Key CPA findings (exact figures preserved):
  - Poverty in Dominica: about 29% of households and 39% of the population.
  - Approximately 10% of households and 15% of the population are indigent (very poor).
  - Three quarters of poor households live in rural areas; one in every two households in rural areas is poor.
  - 24% of poor households are in Roseau and Portsmouth.
  - Poverty among the Caribs: 70% of the Carib population is poor and almost half are indigent.
- Extreme poverty (US$1 a day) benchmark:
  - World Bank Report: share of Dominica’s population living on less than US$1 a day is below 2 percent.
  - Comparative figures cited: Grenada 4.7%, St. Lucia 2.97%, St. Vincent 5.55%.
  - MDG target of halving proportion living on less than US$1 a day by 2015 expected to be achieved well before that date.
- Millennium Development Goals (MDGs) — summary of the eight goals as presented in source:
  - Goal 1 Eradicate extreme hunger and poverty. Halving the proportion of people living on less than US $1 a day and halving malnutrition.
  - Goal 2 Achieve universal primary education. Ensuring that all children are able to complete primary education.
  - Goal 3 Promote gender equality and empower women. Eliminate gender disparity in primary and secondary schooling no later than 2015.
  - Goal 4 Reduce child mortality. Cutting the under-five death rate by three quarters.
  - Goal 5 Improve maternal health. Reducing the maternal mortality rate by three quarters.
  - Goal 6 Combat HIV/AIDS, malaria and other diseases. Halting and beginning to reverse HIV/AIDS and other diseases.
  - Goal 7 Ensure environmental stability, cutting by half the proportion of people without sustainable access to safe drinking water and sanitation.
  - Goal 8 Develop a global partnership for development. Reforming Aid and Trade with special treatment for the poorest countries.
- Dominica’s progress on MDG-related indicators (exact figures preserved):
  - Primary education (Goal 2): universal; enrolment rate of 99 percent.
  - Gender parity (Goal 3): no significant difference at primary level; females out-perform boys at primary level and at secondary and tertiary levels; female participation rates are higher at the secondary level.
  - Child mortality (Goal 4): 23 per 1000 in 1990; 14 per 1000 in 2000; in 2002 about 10 per 1000.
  - Maternal mortality (Goal 5): about one per 1000.
  - HIV/AIDS (Goal 6): poses a very serious challenge; national HIV/AIDS prevention strategy implementation is underway and funding has been secured; reversal will be achieved if implementation proceeds as planned.
  - Safe drinking water and sanitation (Goal 7): approximately 95% of households have access to safe drinking water; 85% have access to sanitary toilet facilities; national programme to reduce this figure planned for the first quarter of 2006.
  - Goal 8: Dominica will continue to provide support in concert with regional and international partners.
- Source caveat: authorities recognize much work remains beyond MDG goals, particularly in poverty reduction; GSPS dedicated to that objective.

### VII. Poverty Measurement and Characteristics
- Poverty lines derived:
  - Indigent poverty line derived from a Minimum Food Basket (MFB) and a Poverty Line including a non-food component.
  - Indigence line for an adult: EC$2,000.00 per annum.
  - Poverty line for an adult: EC$3,400.00 per annum.
- Participatory Poverty Assessment (PPA) sampled seven communities chosen for specific characteristics:
  - Carib Territory: rural, Carib (indigenous) population
  - Dublanc: progress in community economic diversification and poverty reduction
  - Grand Bay: rural, land access problems
  - Petite Soufriere: rural, poor economic diversification, extensive out migration of working age population
  - Scotts Head: rural, fishing community
  - Tarish Pit: urban, squatter settlement
  - Woodford Hill: rural, severely affected by decline in banana industry
- Institutional analysis prepared a register of institutions administering poverty-reduction programmes across State, Private, and Civil Society sectors and assessed effectiveness in catering for the poor.
- Historical note: 2002 CPA is the first major Poverty Assessment; previous assessment in 1996 used different methodology and is not comparable, so no time series data on poverty.

### VIII. Determinants and Patterns of Poverty
- Recent exacerbating factors:
  - Continuing decline in the agricultural sector, particularly the banana industry.
  - Deterioration in government finances during 2000 to 2003.
  - Little expansion in other sectors (tourism, construction and manufacturing) until 2004, leading to stagnation in production and demand, reduced employment and incomes.
- Demographic and household characteristics:
  - Poverty disproportionately affects children: 70% of poor households have children versus 44% for non-poor households; half of Dominica’s children live in poor households.
  - Less than half of households with children have two parents in the home; 14% have no resident parents.
  - Little statistical relationship between poverty and single parenthood, elderly, gender, health, disability and young motherhood—though indigent households often exhibit one or more of these characteristics and lack family support.
- Socioeconomic characteristics of poor households:
  - Unemployment rate among poor households: 40% (versus 16% for non-poor households).
  - Educational attainment among adults in poor households: 27% have an adult with secondary education (versus 45% of non-poor households).
  - Frequency of overcrowding and proportions without indoor bathing or cooking facilities higher in poor households, especially rural areas.
- Alternative poverty-line assumption sensitivity:
  - If non-food expenditure component is based on the average non-food expenditure of indigent households (approximately $740), the proportion of poor households falls to around 20% of all households and 28% of the population.
- Incidence table (exact figures preserved):
  - Indigent/Very Poor: Households 11% | Population 15%
  - Poor: Households 18% | Population 24%
  - ALL POOR: Households 29% | Population 39%
  - NON POOR: Households 71% | Population 61%
  - TOTAL: 100% | 100%
- Estimated counts (mid-2002, exact phrasing preserved):
  - around 2,500 indigent households;
  - around 4,400 poor households;
  - just fewer than 7,000 households have expenditures below the poverty line.
- Comparative note:
  - Incidence of poverty in Dominica is among the highest in the Caribbean with only St. Vincent and Guyana having comparable levels (St. Vincent data dates back to 1995).
  - Indigence comparable to St Kitts and Nevis, Belize, and Grenada; much lower incidence of severe poverty than Guyana and St. Vincent and the Grenadines.
  - Observation: while incidence is high, Dominica may have a more balanced distribution of household expenditure than in several other countries.

*Source: _cr06289 - 5.  Indicative Financial Implications of Priority Poverty Reduction Actions .....*

### 1. Geographical Distribution

### 1. Geographical Distribution

### Geographic concentration of poverty
- Lowest incidence of household poverty: St. Peter and Roseau where 17-18% of households are poor.
- Highest incidence of household poverty: St. David (which includes the Carib Territory) where over half the households are poor, followed by St. Patrick and St. Mark.
- Over a third of all poor households are located in St. David, St. Patrick, and St. Mark, yet these parishes contain less than a quarter of all households.
- St. David contains over twice as many indigent households (28%) as any other parish.
- Population-based incidence is higher than household-based incidence because poor households tend to be larger; in St. Mark and St. David overall incidence of poverty exceeds 60% of the population.
- Over 30% of the population is poor in all areas except Roseau.

### Key parish-level figures (from Table 3)
- St. George (Roseau): Indigent 5%, Poor 13%, All 18% (population: 23%), Non-poor 82%, Total 100%, % of all poor 12%
- Rest of St. George: Indigent 11%, Poor 12%, All 24% (39%), Non-poor 76%, Total 100%, % of all poor 6%
- St. John: Indigent 7%, Poor 21%, All 28% (37%), Non-poor 72%, Total 100%, % of all poor 9%
- St. Peter: Indigent 6%, Poor 12%, All 17% (31%), Non-poor 83%, Total 100%, % of all poor 1%
- St. Joseph: Indigent 13%, Poor 20%, All 33% (44%), Non-poor 67%, Total 100%, % of all poor 11%
- St. Paul: Indigent 12%, Poor 11%, All 23% (36%), Non-poor 77%, Total 100%, % of all poor 9%
- St. Luke: Indigent 4%, Poor 28%, All 32% (48%), Non-poor 68%, Total 100%, % of all poor 3%
- St. Mark: Indigent 13%, Poor 31%, All 44% (62%), Non-poor 56%, Total 100%, % of all poor 4%
- St. Patrick: Indigent 9%, Poor 32%, All 41% (48%), Non-poor 59%, Total 100%, % of all poor 16%
- St. David: Indigent 28%, Poor 23%, All 52% (67%), Non-poor 48%, Total 100%, % of all poor 15%
- St. Andrew: Indigent 9%, Poor 16%, All 25% (32%), Non-poor 75%, Total 100%, % of all poor 12%
- TOTAL: Indigent 10%, Poor 18%, All 29% (39%), Non-poor 71%, Total 100%, % of all poor 100%
- Note: Figures in ( ) relate to population. All other figures relate to households.

### Implications
- Spatial targeting should prioritize St. David, St. Patrick, and St. Mark given their disproportionate share of poor households and high population incidence.

---

### 2. Urban and Rural Poverty

### Incidence and distribution
- Urban indigence: 6%; urban overall poverty: 19%.
- Rural indigence: 13%; rural overall poverty: 33%.
- Urban areas contain around a quarter of all poor households and population.
- About three quarters of poor households live in rural areas.
- Likelihood of being poor: 1 in 3 rural households are poor compared to 1 in 5 urban households.
- Almost a quarter of poor households reside in Roseau and Portsmouth.

### Labour and livelihoods
- Second jobs: rural 15% of workers with second occupations, urban 5% — rural rate is three times higher than urban.
- 37% of poor rural households own land they can cultivate compared to 12% of urban households.
- Many rural households cultivate house plots; limited opportunities lead to migration to Roseau or other islands or dependence on government welfare/family assistance.
- Rural households benefit from higher community support and solidarity than urban areas.

### Urban-specific characteristics
- Urban poor more likely to have someone unemployed — problem framed as employment scarcity rather than inadequate income from employment.
- Urban poor less able to grow food; some resort to scavenging at the dump.
- Poor households are more vulnerable to hurricanes (more likely to live in wooden structures); vulnerability higher in rural areas where crop damage destroys primary income sources.

---

### 3. Demographics

### Household composition and age structure
- Poor households contain proportionately more children than non-poor households; disparity most marked for ages 5-14 where almost half of this age group lives in poor households.
- Poor households have proportionately fewer persons aged 25-64 years; under a quarter of this group lives in poor households.
- Twenty-seven percent of households contain elderly (over 64 years) members; this proportion varies little with poverty status.

### Gender and household size
- No significant difference in gender distribution of poverty (population, head of household gender, or households with no adult males).
- Poor households are much larger than non-poor households.
- Over 40% of poor households are multi-generational or extended households (members of three generations or extended family including in-laws or siblings).
- Single-person and childless-couple households are less likely to be poor.
- Little difference in proportions of nuclear or one-parent households between poor and non-poor.
- Households with children: poor households 70% compared with non-poor households 44%.

---

### 4. Ethnicity

### Carib population
- Incidence of poverty among the Carib population: 70%, with almost half being indigent.
- Caribs represent around 4% of the total population and 7% of the poor population.
- Over 90% of the poor population in Dominica is African or mixed race.

### Characteristics of poor Carib households
- Over half the poor Carib households have no one working; chronic under-employment is widespread.
- Poor Carib households are less likely to include someone with secondary education, though this disparity is expected to reduce as more Caribs graduate from Secondary school.
- Poor Carib households are less likely to consist of elderly living alone.
- Incidence of disability and single-parent households among Caribs differs little from the majority of poor households.
- Housing and services: 39% of Carib households do not have access to safe water, virtually none have a flush toilet, and fewer than 30% have proper kitchen facilities.
- Ownership rates of durable goods are lower among Carib households.
- Eighty-one per cent of Carib households have land that they cultivate, indicating a fallback means of survival.

---

### 5. Employment and Economic Activity

### Employment status and dependency
- 69% of poor households have at least one person employed, compared to 77% of non-poor households.
- Dependency ratio in poor households: 3.4, which is over double that in non-poor households.
- Unemployment incidence in labour force of poor households: 40% compared with 18% in non-poor households.
- Overall unemployment rate: 25% (compared to around 16% in 1999 and 10% in 1991).

### Youth unemployment
- Almost three-quarters of 15-24 year olds (who are not studying) from poor households are unemployed.
- This age group contributes almost half of all unemployed persons.

### Sectoral and occupational distribution (from Table 4)
- Industrial sector (Poor / Non-poor / Total):
  - Bananas: 5% / 6% / 6%
  - Other Agric: 26% / 15% / 18%
  - Manufacturing: 3% / 5% / 4%
  - Construction: 18% / 8% / 10%
  - Wholesale/retail: 11% / 15% / 14%
  - Transport: 3% / 5% / 5%
  - Government: 11% / 20% / 18%
  - Other Services: 24% / 26% / 26%
  - ALL: 100% / 100% / 100%
- Occupational status (Poor / Non-poor / Total):
  - Prof/Man/Tech: 7% / 24% / 20%
  - Sales/Clerical: 14% / 25% / 22%
  - Farmers: 25% / 18% / 20%
  - Skilled manual/crafts: 29% / 19% / 21%
  - Elementary: 25% / 14% / 17%
  - ALL: 100% / 100% / 100%

### Implications
- Poor households are over-represented in agriculture and construction and under-represented in government and professional/managerial/technical occupations.
- Employment growth targeting youth and sectors with higher poverty incidence is critical.

---

### 6. Disability and Health

### Health service access and common conditions
- Health clinics are distributed throughout the country with no problem of access for community residents; many services (e.g., contraception) offered free and often a resident nurse is present.
- Due to mass immunization and widespread piped water, incidences of infectious or waterborne diseases, low birth weights, infant diarrhoea are low or virtually non-existent.
- Traditional diets of ground provisions and fish remain popular; little evidence of malnutrition, though occasionally children go to school hungry.
- Most common problems noted during PPAs: chronic diseases such as diabetes, hypertension, arthritis and cancer.

### Disability and youth behaviors
- Little difference between poor and non-poor households in incidence of long-term sickness and diabetes/hypertension.
- Significant difference in disability: in just over half of disability cases the disability prevents the person from working or attending school.
- Drug use and alcohol consumption, especially among youth and males, cause great concern.
- Teenage pregnancy: among households with children under 18 years, teenage pregnancies occur in 17% of cases; both parents are present in only a fifth of these.
  - Teenage pregnancies: poor households 19% compared with non-poor households 15%.
- Adolescent sexual activity: over 60% of adolescents aged 15-19 years have had sexual intercourse; only a quarter stated that they used contraception every time they had sex.
- STDs constitute a large proportion of medical consultations; spread of HIV infection is of concern.
- A fully functional aids unit is in place tackling the HIV/AIDS problem.

---

### 7. Education

### Educational attainment and attendance
- Over three-quarters of heads of household have not been educated above primary level.
- Using highest level of attainment of anyone in the household: 60% of households have no one with secondary or tertiary education.
- Educational levels in Dominica have improved dramatically over the last 20-25 years for the population as a whole, benefiting poor and non-poor alike; trends indicate continued improvement.
- Marked differences persist in proportions with no secondary education between poor and non-poor across all age groups, particularly among 15-19 year olds.
- Young children from poor households are less likely to go to pre-school.
- Very few adults in poor households have tertiary education.

### School attendance and barriers
- Virtually all children aged 5-14 years have attended school.
- Very few households reported a child not attending school regularly except for sickness.
- Traditional absence/attrition patterns persist: boys kept from school for agricultural labour; girls kept for sibling care or due to pregnancy.
- Parents generally place high value on education and make sacrifices to ensure attendance.
- Some households cannot afford extra costs (uniforms, books, lunches); many depend on Christian Children’s Fund (CCF) and government programmes.
- In the Carib Territory, attendance is high but more likely to be lower than elsewhere; teachers report some parents still do not encourage school attendance though attitudes are changing.

---

### 8. Housing

### General indicators
- Majority of households (poor and non-poor) own their houses.
- Incidence of squatting: about 3%; does not vary with poverty.
- Around 90% have electricity and access to piped drinking water.
- Only 12% are seriously overcrowded (over two persons per room).
- Over 60% of houses are built entirely or partly in concrete; many wooden houses are solidly constructed but more prone to hurricane damage.
- Eighty percent of households use gas as their principal cooking fuel.
- Significant proportions lack in-house toilet, bathing or cooking facilities; absence of proper toilets was mentioned as a problem in urban areas.

### Housing indicators by poverty status (from Table 5)
- Tenure – House Owned: Poor 77%, * 74%, Non-poor 75% (Total)
- Land squatted: Poor 4%, * 3%, Non-poor 3%
- Overcrowding (persons/room):
  - Up to 1 person/room: Poor 34%, * 71%, Non-poor 61%
  - Between 1 and 2 persons/room: Poor 37%, * 24%, Non-poor 28%
  - Over 2 persons/room: Poor 29%, * 5%, Non-poor 12%
- ‘Defective’ Housing:
  - House with wood/ plywood walls: Poor 60%, * 28%, Non-poor 37%
  - No safe water*: Poor 16%, * 7%, Non-poor 9%
  - No electricity: Poor 23%, * 8%, Non-poor 12%
  - No toilet or latrine: Poor 29%, * 11%, Non-poor 16%
  - No bathing facilities: Poor 35%, * 14%, Non-poor 20%
  - No kitchen facilities in house: Poor 41%, * 18%, Non-poor 25%
  - Does not use gas for cooking: Poor 38%, * 15%, Non-poor 21% (Uses wood for cooking) 23% / 8% / 13%
- Note: * i.e. Water does not come from house connection or standpipe.

### Comparative summary
- All indicators of poor housing are at least twice as high for poor compared to non-poor households.
- Differences particularly marked for serious overcrowding, lack of electricity, lack of toilets, and use of wood for cooking.
- Nonetheless, majority of poor households are not overcrowded and have a full range of facilities: over 80% have access to piped water and over three-quarters have electricity.

*Source: _cr06289 - 1. Geographical Distribution*

### 9.              Ownership of Assets and Durables

### _cr06289 - 9.              Ownership of Assets and Durables

### Ownership of assets and durables
- Rates of ownership of assets and durables are higher for all goods in non-poor households than in poor ones.
- Differentials are most marked for washing machines and vehicles.
- Ownership rates among poor households:
  - 50-60% have refrigerators, televisions and telephones.
  - Only 70% have gas or electric stoves, implying that 30% of poor households rely on open fires or neighbours.

### Children and single parenthood
- Child poverty and household composition:
  - Approximately half of the children in Dominica live in poor households; 22% are indigent.
  - Seventy per cent of poor households include children compared with 44% for non-poor households.
- Key findings:
  - Poverty disproportionately affects children.
  - Incidence of no-parent households reflects migration and changing family patterns; most of these households are not poor, indicating support from overseas.
  - Support from other family members (overseas and locally) to children living with one or no parents is evidenced by the proportion of single parents living with other family members, and many no-parent or single-parent households falling in the non-poor category.
  - The largest poor/non-poor difference is for one-parent families living with other family members, where numbers of dependants and lack of wage earners lead to insufficient income.

### The elderly and the disabled
- Poverty incidence:
  - Statistically, poverty in Dominica does not disproportionately affect the elderly as in other countries, reflecting traditions of adult children caring for parents and relatively wealthy returnees.
  - A higher proportion of poor households have someone with a serious disability.
  - When support is not forthcoming, the link between old age, ill health, disability and poverty is apparent.

### The indigent
- Incidence and characteristics:
  - The overall incidence of indigence, severe poverty, is around 11%.
  - Indigence is higher among the Caribs (previously mentioned in the source).
  - Indigent households tend to be larger, have lower levels of educational attainment, worse housing infrastructure, more overcrowding and lower rates of asset ownership.
  - Little variation among indigent households in terms of household type, disability or sickness, and incidence of households with no one working.
- Public assistance:
  - Despite poverty, only one of the case studies in the PPA was receiving public assistance.
  - Stigma associated with Public Assistance (historically known as a “pauper’s allowance”) is cited as a reason for low take-up.
- Drivers and solutions:
  - Combinations of age, disability, single parenthood, large numbers of children and lack of male and/or family support have devastating impacts on families.
  - Detrimental impact of migration is apparent, though presence of adult children or a father in Dominica does not guarantee improvement.
  - For many indigent households, realistic solutions are government support and improved child maintenance.

### Coping mechanisms and survival strategies
- Reported survival strategies adopted by the poor:
  - Seeking employment overseas and in the capital city.
  - Undertaking multiple jobs that are usually menial, poorly paid and insecure.
  - Increased reliance on support from family members living in Dominica and overseas.
  - Reliance on support from government, NGOs, churches, neighbours and friends; government and CCF educational programmes targeted at the poor are noted as probably most important.
  - Strategies to reduce expenditure (use of public utilities such as telephones, standpipes and baths), subsistence food production, home remedies.
- Consequences and trends:
  - Households, especially in rural areas, are cutting down on basic expenditures (including utility connections) and reducing savings to nil, leaving them vulnerable to emergency finance needs.
- Encouraging features:
  - Over two thirds of poor households have at least one person working.
  - Primary school attendance is high across the population; around three-quarters of 15-19 year old children from poor households are, or have, attended secondary school.
  - Health situation among the poor is generally good with low levels of infant mortality, low birth weights, infectious diseases and malnutrition; life expectancy is high.
  - Piped water and electricity are available to the great majority of poor and non-poor populations.
  - Ownership rates for assets such as refrigerators, televisions and telephones approach or exceed 50% among poor households.
  - Rural households, while facing higher poverty incidence, have more opportunity to grow their own food and tend to live in closer-knit communities providing mutual support.
  - A large proportion of poor and non-poor households benefit from income received from family members resident in Dominica and overseas; non-income support is also high (extended family living arrangements).

### The challenge of poverty reduction
- Main economic drivers:
  - Primary causes of current poverty are unemployment and under-employment due to slow economic growth since the mid-1990s and actual contraction in subsequent years.
  - 1996 Poverty Assessment identified the same poverty-related issues; lack of comparable data prevents precise measurement of change in poverty levels.
  - Banana production declined by 30% from 1996 to 2001 and agricultural production in general declined in real terms by almost 20% over the same period; rural poverty is believed to have increased significantly.
- Differential causes:
  - For those below the poverty line but above indigence, economic factors dominate other causes of poverty (family breakdown, drug and alcohol abuse, unsafe sexual practices).
  - For the indigent and elderly living alone, social factors (sickness and disability) remain major causes.
- Other contributing factors:
  - Detrimental impact of migration on family life.
  - Increasing pressures on women who need employment while still shouldering child rearing duties.
  - ‘Abandonment’ of the elderly to fend for themselves.
  - Increasing pressures on men leading some to flight, crime, alcohol/drugs and violence.
  - Teenage pregnancy (a long-standing problem largely unrelated to the economic crisis).
- Risks and likely outlook:
  - Ever-present threat of destructive hurricanes with historical losses to housing stock, crops and coastal infrastructure cited (David, 1979; Hugo, 1989; Lenny, 1999).
  - A future hurricane would likely further stretch government resources and result in loss of employment.
  - Most likely outcome: poverty will increase until the economy (especially agriculture) recovers and starts creating new jobs.
  - Increasing poverty will further threaten local family and community-based support networks.
  - Prolonged unemployment or underemployment is an acknowledged cause of family breakdown, crime and social unrest that can entrench cycles of poverty.

### Reducing poverty and improving social protection — institutional framework
- Government position:
  - Long-term poverty reduction requires creation of sustainable employment and income earning opportunities for all Dominicans, achievable only with increased levels of economic growth and development.
  - Attainment of above-average and increasing levels of economic growth for the benefit of all Dominicans is Government’s official policy objective and is irrevocably committed.
- Social protection system:
  - Dominica has an extensive social safety net consisting of government- and NGO-administered programmes (listed in Appendix 2 of the source).
  - World Bank estimates:
    - GOCD spent roughly 5.6% of GDP on social protection in 2000/01.
    - This increased to about 5.9% of the GDP in 2004/05.
    - Nearly half of expenditures were from the Dominica Social Security (DSS), which is self-financing; government expenditures on social protection amounted to about 3.0% of GDP.
  - The existing social protection strategy does not address critical vulnerabilities and coordination between programmes is weak.
  - Programmes are not well poised to address income volatility and transient spells of poverty, supported by under-subscription of some social security programmes during 2001-2004.
- Comprehensiveness per the Country Poverty Assessment 2002:
  - Programs are developmental, supportive and preventative.
  - They cover agriculture, small business development, physical infrastructure and housing, education, health and social sectors.
  - They target communities, households and individuals including vulnerable sub-groups – the elderly, disaffected youth, the disabled, drug abusers, the indigent, and households with family problems.
  - Gap: employment creation projects need increased effectiveness; government accepts this is an area to pursue.

### Medium-term poverty reduction strategy and policy priorities
- Core elements common to developing countries and emphasized for Dominica:
  - Promotion of economic growth and job creation to provide employment opportunities and generate government revenues to target residual poverty.
  - Development of skills and health conditions enabling sustainable livelihoods.
  - Maintenance of basic health and education services and utilities (water, electricity, road access).
  - Betterment of conditions for those in severe poverty through direct income support and other measures; recognition that some households (elderly, disabled, some one-parent families) will need continued direct support.
  - Elimination or reduction of potential causes of future impoverishment by addressing identified social problems.
- Urgent emphases specific to Dominica:
  - Promotion of economic growth and job creation.
  - Maximising the effectiveness of government financial resources available for pro-poor programmes.

### Poverty reduction policies, programme priorities and programme management
- Observations from consultations and assessments:
  - Extensive list of possible actions and strategies emerged from consultations, not all prioritised or funded.
  - Many programmes are already implemented by government and non-government agencies; many interventions are well targeted, successful and innovative.
  - Nonetheless:
    - Current programmes do not fully address demand.
    - Demand for programmes will increase in the short-term.
    - Government may be under pressure to maintain or expand current programmes given fiscal realities.
- GSPS priority criteria:
  - Initiatives that will promote economic growth and job creation.
  - Existing and effective programmes with a direct or indirect impact on poverty reduction.
  - New initiatives that do not require substantial additional government expenditures unless externally funded.
- Ongoing projects excluded from the priority list (already in national budgets):
  - The Basic Needs Trust Fund.
  - The National Shelter Development Project.
  - The legal aid project.
  - Upgrading of rural health facilities.
- Programme maintenance and targeting:
  - Existing health, education and physical infrastructure programmes are cornerstones of policy; failure to maintain them would compromise population capacity to take up new job opportunities and medium/long-term poverty reduction.
  - These programmes may come under pressure as government works towards fiscal sustainability while demand increases.
  - Government will review operations to improve effectiveness through rationalisation and better targeting.
  - Rationalisation: review programmes, improve operational efficiency, cut back less effective programs, reduce overlaps.
  - Targeting: improve targeting of already-targeted programmes and introduce targeting into programmes currently open to all, based on clear criteria; more targeting will only be implemented where savings exceed administrative costs.

*Source: _cr06289 - 9.              Ownership of Assets and Durables*

### 1. Health

### 1. Health

### Health: current stance and recommendations
- Maintain free immunisation programme and current decentralised distribution of health facilities.
- Rationale: Good health is described as "a cornerstone of a sustainable society" and "ranks highly amongst the concerns of the poor when it is lacking."
- Maintain current favourable health situation in Dominica; these are identified as "critical components of the health care system in Dominica."

### Introduce graduated health charges with exemptions
- Recommendation: Examine the feasibility of introducing graduated health charges for some health services with exemptions for the poor.
- Rationale: Pressures on government finances will threaten the current highly subsidised system where the proportion of user charges recovered is so low.
- Target: Princess Margaret Hospital is highlighted as a priority — it is responsible for over 40% of total health spending.
- Current collection performance at Princess Margaret Hospital: the amount recovered represents only around 10% of the hospital’s total spending.

### Drug procurement and public awareness
- Continue participation in OECS Drug Procurement Programme.
  - Rationale: The programme has "proved successful in reducing drug costs in the OECS countries" and will improve cost effectiveness by reducing the cost of a key component (drugs).
- Continue and improve intense public awareness campaign relating to HIV/AIDS and teenage pregnancy.
  - Rationale: "The economic and social consequences of HIV/AIDS are potentially devastating, and teenage pregnancies are an acknowledged cause of poverty."

### Education

- Maintain the Education Trust Fund, School Feeding and Textbook Programmes.
  - Rationale: These programmes are targeted at the poor; without them attendance rates would fall significantly.
- Review the existing distribution of primary schools.
  - Context: Small class sizes, falling school rolls, and pressure on education expenditures.
  - Projection: "Primary school enrolment is likely to fall by around 20% in the next 5 years."
  - Objective: Achieve a more cost effective distribution of primary schools and teachers.
- Continue to implement strategies of BERP (Basic Education Reform Programme) with emphasis on curriculum development and expanding vocational and technical education.
  - Rationale: Increased vocational and technical education is seen as a means of reducing drop-out rates among males and their disaffection with school.
- Maintain and expand funding for community education facilities such as Operation Youthquake, CALLS (Centre where Adolescents Love to Learn and Serve), and the Dublanc Youth centre which cater for vulnerable adolescents and dropouts.
- Initiate research and action into male under-performance, disaffection and parental responsibility.

### Social Safety Nets / Social Sectors

- Review current criteria and level of public assistance.
  - Finding: "The current level of public assistance is below the indigence line. Current criteria exclude many indigent households."
- Review Dominica Social Security arrangements.
  - Action: Government will explore actions to ensure DSS is well placed to meet its future obligations to pensioners and to place DSS on a sustainable footing.
- Develop a programme, in conjunction with NGOs, to provide education in life skills and the availability of counselling services.
  - Rationale: Many causes of future impoverishment originate in adolescence (e.g., teenage pregnancy, substance abuse, low educational achievement, physical abuse and deviant behaviour).
- Establish a facility for young offenders.
  - Rationale: Funding will be sought because the absence of such a facility results in young offenders either being "‘lost’ in jail or returning to the streets without rehabilitation."

### Housing / Infrastructure

- Pursue squatter regularisation programme.
  - Rationale: Squatting is described as "almost always a response to a legitimate housing demand." Relocation is expensive and problematic due to lack of easily developable land.
  - Objective: Continue regularisation to improve housing conditions and enhance well-being.
- Maintenance of water supply and road networks.
  - Rationale: Current networks have wide coverage; further expansion may not be feasible in the short- to medium-terms.
  - Objective: Maintain these networks to prevent deterioration and major future expenditures.

### Institutional

- Hold a workshop involving government and NGOs involved with vulnerable groups.
  - Objective: Pool government and NGO experience to better target and improve effectiveness of assistance programmes for vulnerable groups.

### Legal

- Streamline procedures for child maintenance.
  - Rationale: Lack of child support is a major cause of financial hardship and vulnerability to single parents.
  - Action: Draw up measures that minimise the need for legal assistance and provide effective enforcement and collection proceedings.
- Establish task force to review law related to families and children.
  - Rationale: Current laws are "fragmented, often inconsistent and/or outmoded."
  - Note: OECS initiatives and a report dealing with child legislation are identified as starting points for the revision of Dominica’s laws.

*Source: _cr06289 - 1. Health*

### 7.  Environmental

### 7. Environmental

### Environmental degradation and proposed approach
- Areas of environmental degradation (e.g. deforestation, soil erosion) will be investigated to develop sustainable approaches to natural resource use using existing proposals as a starting point.
- Formulate strategies for addressing areas of environmental degradation.
  - Responsible: Environment, CDGA, NGOs (as listed in Table 6).

### Priority poverty reduction actions (relevant to environment and social sectors)
- Environmental
  - Formulate strategies for addressing areas of environmental degradation. — Environment, CDGA, NGOs.
- Social Safety Nets / Social Sectors (linked implementation partners relevant to environmental outcomes through community development)
  - Maintain immunization programme and distribution of primary health care facilities — Finance, Health.
  - HIV/AIDS/Teenage Pregnancy Awareness Programme — Health, Education, CDGA, NGOs, Media.
  - Investigate feasibility of graduated health charges — Health, Finance.
  - Maintain participation in OECS Drug Procurement Programme — Health, Finance.
  - Maintain government pro-poor education assistance programmes — Education, Finance.
  - Review distribution of primary schools — Education.
  - Increase provisional vocational technical education in primary schools — Education.
  - Maintain funding of projects dealing with troubled children and drop outs — Education, NGOs, Youth (Quake, CALLS).
  - Review current criteria and level of public assistance — CDGA.
  - Ensure integrity of Dominica Social Security — Finance, DSS.
  - Initiate research into adolescent and young adult males — Education, CDGA, NGOs.
  - Introduce courses in life skills education — Education, CDGA, NGOs.
  - Prepare funding proposal for a facility for young offenders — Finance, CDGA, Education, NGOs.
  - Maintenance of water supply and road networks — Public Works and Public Utilities.
  - Squatter regularization — Housing Division.
  - Workshop on educational assistance programmes — Education, CDGA, NGOs.
  - Workshops on vulnerable groups — CDGA, NGOs, Education, Health.
  - Improve operation of child maintenance system — Attorney General.
  - Reform of legal framework related to children, welfare, family support and small claims — Attorney General, Education, Health, CDGA.
  - Reform magistracy operations — Attorney General.
- Institutional actions supporting environmental and social objectives
  - Many priority actions call for little capital expenditure and rely on ongoing programmes and committed government and non-government agencies.
  - Implementation requires committed leadership at all levels.

### Special focus: The Carib Community (environmental and development linkages)
- Demographics and land
  - Carib population: approximately 3,000 or 4 percent of the population are Carib Indians.
  - Communal land reserve: 3,700 acres administered on behalf of 1,700 resident Carib population.
- Comprehensive Carib Territory Community Development Programme
  - Financing: CDB and the GOCD ($4.3 million).
  - Coverage period: the four-year period 2003-2007.
  - Programme seeks to diversify the economy of the Carib Territory by providing employment creation via investments in:
    - tourism sector (Carib model village),
    - health sector (construction of a health center),
    - road infrastructure (feeder roads),
    - agriculture and livestock sector,
    - education and housing sector,
    - land reform,
    - community resource centers and other social activities.
- Carib People Development Plan (CPDP) medium-term objective
  - Reduce the disparities between the Caribs and other Dominicans so that Carib incomes and poverty indicators are the same as the national average by 2010.
- CPDP medium-term measures (selected)
  - Seek financing for project proposals and projects for Carib development from CPDP and international financial and donor agencies (World Bank, OAS, CBD).
  - Implement the Comprehensive Carib Territory Community Development Programme.
  - Integrate the Carib community into the wider economy via access to financial services and micro credit.
  - Promote the Carib village as an eco-tourism center and ensure viable economic operation.

### Environmental management in the macro and medium-term strategy
- Risk recognition and environmental priorities
  - The Government will assign high priority to:
    - Improving disaster preparedness and mitigation;
    - Protecting and enhancing the environment by improving environmental management;
    - Upgrading port, road and airport infrastructure; and
    - Diversifying the economic base and sources of people’s income.
- Medium-term macroeconomic framework (selected targets and implications relevant to environmental strategy)
  - Targeted real GDP growth: about 3 percent a year.
  - Inflation target: around 2 percent a year.
  - Public investment consistent with available grant and concessionary loan financing: public investment at close to 11 percent of GDP (requires strengthening of implementation capacity).
  - Fiscal discipline objective: primary balance target of 3 percent of GDP.
- Policy instruments with environmental relevance
  - Public investment and project implementation: improve project formulation and implementation capacity; line ministries to conduct analysis and stakeholder consultation to maximize linkages and benefits for private sector activity.
  - Public Sector Reform: streamlining ministries and improving service delivery to support growth sectors that depend on natural resources (tourism, agriculture, fisheries, water).
  - Disaster preparedness and environmental management considered integral to reducing vulnerability and supporting sustained growth.

### Key numeric data and policy milestones (selected)
- Carib statistics:
  - Carib population: approximately 3,000 or 4 percent of the population.
  - Resident Carib population on communal land: 1,700.
  - Communal land reserve: 3,700 acres.
  - CPDP financing commitment: $4.3 million for 2003-2007.
- Macro/environment-related targets and dates:
  - Target GDP growth over medium term: 3% (about 3 percent a year).
  - Inflation: around 2 percent a year.
  - Public investment target: close to 11 percent of GDP.
  - Primary balance fiscal target: 3 percent of GDP.
  - VAT introduction: March 2006 (noted as part of broader fiscal reform with distributional implications that may affect environmental and social programmes).

*Source: _cr06289 - 7.  Environmental*

### 1. Tourism

### 1. Tourism

### Overview and potential
- By all accounts, tourism has the potential for the most rapid growth in the economy because of Dominica’s comparative advantages and the current low stage of the sector’s development.
- Government accepts the imperative of paying attention to the development of the tourism sector, both because of its established potential and uniqueness, and the limited opportunities that may be available in other economic sectors.
- Owing the potential linkages between tourism and other economic and social sectors, a vibrant tourism sector can make a major contribution to increased dynamism in the total economy.
- While work is proceeding on a Tourism Master Plan, the Tourism 2010 Policy document will underpin the strategic actions that Government will seek to implement into the medium-term with a view to making a profound positive on the sector, and it is this policy document that forms the basis of this section of the GSPS.
- The overriding challenge is to “realize this potential while ensuring that tourism is sustainable ... “.

### Challenges Facing the Sector
- Dominica’s approved “Tourism 2010 Policy” identifies four main challenges facing tourism in Dominica. These are:
  1. The imperative of a “focused commitment to tourism”, to be reflected in the inadequacy of a “competitive destination management and marketing budget, and continuing tourism infrastructure constraints;
  2. The challenge of positioning its destination and its product to meet the demands of its specialty market;
  3. Successfully incorporating local community involvement in tourism and fostering opportunities for local entrepreneurs;
  4. Dealing with constraints in investment in the sector, such as limited air access and high energy costs;
- Generally, the Tourism 2010 Policy recognizes that Dominica has an excellent opportunity to grow its tourism sector in the light of market trends.

### The Vision for Tourism
- Dominica’s vision for the tourism sector as articulated in the approved Tourism 2010 Policy document is as follows:
  - “Dominica will pursue sustainable tourism that enriches the lives of all citizens by creating economic, social and cultural opportunities, protecting the natural resources and scenic, heritage and cultural features of the country, nurturing community involvement in tourism at sustainable levels, and by creating career paths for the young people of Dominica.”

### Guiding Principles
- Dominica will be guided by several principles to shape how tourism is developed and managed in order for the tourism sector to achieve the country’s vision for tourism. These guiding principles are as follows:
  1. Tourism policy and development programmes will be integrated with national economic, social and cultural policy.
  2. Government will foster a positive environment for the tourism sector and for meaningful local participation in the sector.
  3. Tourism sector planning and management will be based on partnerships and collaboration.
  4. Local communities will play a meaningful role in the tourism sector, one that ensures economic, social and cultural benefits to each participating community.
  5. All tourism activity will be designed to improve the quality of life enjoyed by Dominica’s citizens.
  6. Development of the tourism sector will be market-driven.
  7. Government will adopt a business model to fulfill their role in tourism sector management – that of destination management.
  8. Tourism activity will be private sector-driven.

*Source: _cr06289 - 1. Tourism*

### 9. Tourism policies programme and standards will be integrated with

### 9. Tourism policies programme and standards will be integrated with

### Growth Objectives
- Government believes that, given a robust market, a relatively small tourism sector (particularly the export ready component), and impending improvements in air and road infrastructure, a target of about a 70% increase in expenditures by both stay over and cruise arrivals is realistic.
- Policy will direct the majority of new cruise business to the Portsmouth area to help generate revenue for development of new attractions.
- Because data on the contribution of tourism to the economy is not available, the sector’s growth objectives are expressed in direct expenditures by visitors.
- The 2010 target for tourism is direct expenditures by visitors of EC$227 million with a EC$200 million annual contribution by stay over market and EC$27 million by cruise arrivals.
- Table of expenditures (as presented):
  - Stay over: Current (2004) Expenditures ($EC) $104 million; % of Total 78%; 2010 Target ($EC) $177 million
  - Cruise Arrivals: Current (2004) Expenditures ($EC) $30 million; % of Total 22%; 2010 Target ($EC) $50 million
  - Total: Current (2004) Expenditures ($EC) $134 million; % of Total 100%; 2010 Target ($EC) $227 million

### Product Development Policy
- Re-position Dominica:
  - Government will seek advice of specialist branding and promotion experts to determine whether the “nature island” destination positioning may be too limiting and consider expanding positioning to encompass adventure and cultural tourism.
- Tourism Development Priorities — Area Priorities:
  - a. The Roseau area: greatest concentration of internationally competitive tourism attractions and close proximity to Dominica’s World Heritage Site.
  - b. Roseau itself: capital city, greatest concentration of heritage buildings, waterfront areas, tourism services and amenities.
  - c. The Portsmouth area: expected attractions development to accommodate cruise arrivals, visiting yachts and increased stay over facilities.
  - d. The Melville Hall to Roseau corridor: to be developed as a parkway with central forest reserve, rest stops/viewing/photography pull-offs, and locations for food and beverage/craft purchases and interpretive experiences.
  - e. Scenic parkway designations for coastal roads enhancing coastal area touring, including the Carib Territory, the Southeast, and the West Coasts, where specialty lodges, adventure and cultural tourism product experiences should be enhanced.

### Tourism Contribution and Objectives
- Contribution to Social and Economic Benefits:
  - Creation of job and business opportunities in tourism, and through enhanced linkages, in agriculture, arts and crafts, entertainment and music, and service sectors;
  - Widespread involvement of communities in the tourism sector including community resource management; and
  - Creation of career paths for Dominica’s youth to enter the tourism sector.
- Contribution to Heritage/Cultural Protection:
  - Protection of heritage and cultural resources throughout Dominica with particular attention on community-based resources;
  - Incorporation of heritage interpretive programmes into the tourism product mix including Roseau, Dominica water mills, and other features of Dominica heritage;
  - Incorporation of community based heritage and cultural products into scenic parkway programmes;
  - Generation of tourism revenues for Dominica’s cultural enterprises and groups; and
  - Fostering of pride in, and support for, Dominica’s culture.
- Contribution to Environmental Management:
  - Enhanced commitment to Dominica’s nature resources including completion of the Green Globe certification;
  - Enhanced interpretive programmes at nature sites;
  - Development of scenic viewscape protection policies for Dominica’s coastline routes; and
  - Land use policies that protect Dominica’s environment, important viewscapes, scenic corridors and the intimate feel of the destination as ‘the Caribbean as it used to be”.

### Tourism Standards
- Under the NISE Programme, Government has engaged the Bureau of Standards in the development of tourism standards and certification processes to foster market-driven tourism standards and ensure all tourism suppliers meet minimum standards.
- The national tourism agency will develop and manage a certification and inspection system pursuant to the Tourism (Standards and Regulations) Act.

### Export Ready Policy
- Government will adopt an export ready product standard to ensure international market acceptance and enhance the capacity of tourism suppliers to do business internationally.
- Destination marketing will focus on the export ready product (accommodation, tours, attractions).
- Programmes will assist businesses to become export ready quickly to ensure participation in destination marketing.

### Priority on Stay over Market
- Government will emphasize development of the stay over market by implementing a programme to upgrade existing rooms where possible to export ready status and establish an investment promotion initiative to add new accommodation facilities.

### Cruise Market
- Government will ensure Dominica remains a competitive cruise destination and encourage a balanced distribution of cruise arrivals between Roseau and Portsmouth to reduce capacity issues around Roseau.
- Policy will foster a cruise market matched to Dominica’s product strengths and encourage cruise visitors to return as stay over customers.

### Attractions
- Government policy will prioritize enhancing and strengthening existing tourism attractions before extensive new attractions; new attractions will proceed only when consistent with national tourism niche markets and where adequate management capacity exists.
- Priorities include:
  - a. Tourism attractions managed by the public sector (the Ministry of Tourism and National Parks).
  - b. Resolving management of these sites including transferring authority for all sites to the Parks unit.
  - c. Developing and implementing a business model for public sector attractions management, including market-driven fee structures, product quality control, and cooperative marketing with the NDC.
- Public sector attractions are to be marketed, managed and maintained consistent with global best practices to ensure world-class visitor experience (access, hospitability services, interpretive programmes).

### Niche Markets
- Dominica will continue to develop and prioritize niche markets:
  - a. Build on dive, adventure and nature niche markets and foster their expansion;
  - b. Enhance development of adventure tourism products, including specialty adventure products such as camping, tent platform lodges and similar facilities;
  - c. Develop a vibrant community tourism product consistent with policy directions;
  - d. Facilitate development of a yachting segment, focusing on Portsmouth;
  - e. Enhance cultural tourism including festivals, village feasts, and local cuisine experiences;
  - f. Develop health tourism potential including spa and wellness facilities;
  - g. Strengthen and develop product in sports tourism and agro-tourism;
  - h. Pursue potential for another major travel generator such as golf for Dominica, in the Portsmouth area; and
  - i. Explore the country’s potential for the bridal tourism market.
- Consideration will be given to day visitors, visitors arriving by ferry or yacht, as well as the domestic market.

### Touring and Related Specialty Niche Markets
- Government will pursue development of touring markets for packaged tours, independent rental vehicle use, bicycling and walking tours.
- Dominica has potential for mountain biking specialty products for touring and in combination with trail systems and adventure tourism products.
- Government will pursue special events related to the biking sector (e.g. road races, mountain biking, off-road trails).

### Roseau Development
- Government will foster Roseau as a significant tourism experience combining heritage, culture and city experiences.
- Considerations include enhancing understanding of the Roseau Heritage District, introducing themed signage, developing walking tours, ensuring road reinstatement does not compromise the historic community “feel”, and upgrading the waterfront with a user-friendly walkway.
- Visitor-friendly Roseau will include provision for river access (riverside walkways and bicycle trails) and a safer night time experience for dining and entertainment.

### Community Tourism Policy
- Promotion of community tourism is a high priority for community empowerment and product development.
- Core policy principles:
  - Actively open opportunities for rural communities, local people and the informal sector to increase involvement in tourism planning and enterprise operation;
  - Ensure rural communities, local people and the informal sector have greater access to tourism benefits on their land via appropriate legal mechanisms and incentives;
  - Ensure development of tourism on State lands takes place in areas and forms acceptable to local people;
  - Encourage cooperation between the formal tourism sector and the informal sector as a social responsibility and contribution to national development objectives of improved equity, poverty alleviation, and sustainable growth;
  - Ensure tourism development within Dominica is environmentally sustainable.
- Implementation priorities:
  - Development of an inventory of cultural product experiences and work with communities and enterprises to strengthen cultural product accessibility by tourists;
  - Preparation of a guide to cultural tourism products and amenities such as restaurants serving local cuisine throughout Dominica.

### Environmental Responsibility
- Dominica has advanced environmental protection via national parks and protected areas programme and Green Globe designation; private sector environmental practices must match this progress.
- Government will encourage environmental walk-through and related programmes to increase awareness and foster implementation of sound environmental practices by private sector operators.
- Consideration of energy alternatives where feasible and where such alternatives do not compromise national interest and present environmental concerns.

### Strengthening Tourism Infrastructure
- Priority on continually improving air and marine access and transforming road systems into touring opportunities.

- Air Access — immediate term actions:
  - a. Upgrade the Melville Hall airport to lengthen the runway, construct a new terminal and install night lighting;
  - b. Provide certainty to the tourism sector and potential investors regarding the completion date of the airport access project;
  - c. Initiate discussions with airline suppliers to Dominica to announce the Melville Hall dates, introduce the tourism policy, and commence discussions on enhancing air access consistent with Dominica’s tourism policy.
- Longer term: pursue an international airport providing jet access, seek an appropriate public-private sector partnership and financing package for implementation.

- Parkway System:
  - Ensure proposed two-lane roadway between Melville Hall and Roseau commences urgently and review roadway upgrading to enhance development as a national Dominica “parkway”.
  - Pursue comprehensive upgrading of the country’s road system to foster exploration of attractions, communities and scenic parkways.

- Marine Infrastructure:
  - Capitalize on strategic marine access from Guadeloupe, Martinique, St. Lucia to package multi-country vacations.
  - Priority to upgrading marine access facilities including creation of a welcoming arrival facility at the ferry terminal meeting international market expectations.
  - In Portsmouth, develop and implement a marine infrastructure facilities plan to support existing marine tourism activities and create a yachting sector.

### Policy on Destination Management
- Government will undertake destination management in partnership with the private sector.

- Destination Marketing Policy:
  - Adopt a market-driven orientation including maintenance of performance indicators and a monitoring system, market research in priority segments and locations, and a market intelligence function.
  - Focus marketing on export ready products to international and regional markets.

- Investment Promotion Policy:
  - Align investment promotion with national tourism policy and tourism priorities by type and area; enhance transparency in application of investment incentives.
  - Restructuring of the NDC will include a new focus on investment promotion with operating guidelines:
    - a. Emphasis on attracting investment consistent with national tourism policy, specifically for new rooms at existing hotels or new hotel development, resolving issues related to upgrading existing rooms to market ready status where appropriate, and attracting investment for nature, adventure, community and cultural tourism experiences; and
    - b. Development of specific investment promotion strategies pursuant to the National Tourism Policy for the following areas:
      - Portsmouth
      - ii. Roseau and the Roseau Valley area
      - iii. The proposed scenic parkway routes, prioritized by the timing of road upgrading for each.

### Policy on Tourism Awareness Programmes
- Continue strengthening tourism awareness programmes at the community level.
- Implement a comprehensive programme consistent with the Tourism 2010 theme including:
  - public awareness programmes including “Tourism Week” events each Fall;
  - industry awareness programmes related to market and product trends influencing Caribbean and Dominican tourism;
  - a programme targeted to Government and the financial and business sector related to tourism and fostering linkages throughout the economy;
  - introduction of tourism into the school curriculum modeled after best practices suggested by the Caribbean Tourism Organization.
- Develop and implement an annual comprehensive media and communications programme as a normal part of the tourism agency programme, including maintenance of a Dominica tourism news web site and regular media releases.

### Human Resources Development Policy
- Develop a comprehensive approach to human resources development in tourism, including partnership with the Dominica State College for training, programme delivery and skills training to provide an internationally competitive tourism product.
- Rationalize human resources development through:
  - initiating discussions with the OAS on delivery of the Skills for Success (small hotels) training programme at the Dominica State College;
  - funding delivery of the Tour Guide programme through the Dominica State College and enhancing it with best practices from recent initiatives such as the aerial tram guide programme;
  - developing a comprehensive menu of training programmes for the industry consistent with product development and destination management priorities.

### Crime Reduction Policy
- Recognize that increasing incidence of crime negatively affects tourism growth potential and can jeopardize public and private investment.
- Government will work to enhance visitor security and reduce impacts of crime by fostering partnerships among stakeholders, communities, the police and the judiciary to develop effective crime reduction initiatives.

### Cultural Tourism Policy
- Ensure tourism and cultural policies are complementary and mutually supportive.
- Pursue repositioning Dominica as a nature, adventure and cultural tourism destination and foster development of cultural tourism products and experiences.
- Specific initiatives will include:

*Source: _cr06289 - 9. Tourism policies programme and standards will be integrated with*

### 1. Alignment  of  the  National  Tourism  Policy  with  Dominica’s  cultural

### 1. Alignment of the National Tourism Policy with Dominica’s cultural

### Cultural policy alignment and product development
- Align the National Tourism Policy with Dominica’s cultural policy framework to ensure complementarity and consistency.
- Partner with the cultural community to identify cultural tourism product development initiatives for consideration by the NDC and the private sector.
- Establish a working group of Government and cultural tourism stakeholders to work with communities to identify cultural tourism products for the proposed scenic parkways throughout Dominica.
  - Potential products include community-based tourism products and cultural experiences such as roadside fruit stands, restaurants and bars.
- Develop an enhanced calendar of cultural events, including community-based events, as demand dictates and in parallel with growth of the tourism sector.
- Create a special cultural programme for Roseau that features Roseau’s heritage, local cuisine, specialty bakeries, arts, crafts, music, performing arts and other entertainment.

### Tourism and land use planning policies
- Ensure physical planning policies developed during the outline physical plan preparation in 2005 are integrated with and support implementation of the national tourism policy.
- Government policy objectives:
  - Position the plan as a physical development plan for approval by Dominica.
  - Include a tourism development “plan within the plan” to provide a land use policy framework that guides tourism sector growth and protects Dominica’s natural, heritage and cultural resources for future generations and as assets for tourism enterprises (both public and private sector).
- Short-term tourism-related planning policies to guide investors while the land use plan is prepared:
  - Use the tourism development priorities as a guide in consideration of applications for development and in discussions with potential investors.
  - Develop comprehensive policies on viewscapes for all touring routes in Dominica, with particular emphasis on coastal routes.
  - Develop a policy on quarry development.
  - Develop a signage policy taking into account impact on aesthetics throughout the country.
  - Formally adopt the Roseau Heritage District Plan.

### Heritage protection policies
- Regard heritage and cultural resources as important components of Dominica’s destination appeal.
- Foster coordination between the tourism sector and heritage protection actors to:
  - Identify tourism interests.
  - Ensure collaboration between Government, property owners and heritage NGOs.
  - Facilitate development of heritage tourism products including interpretation and guided tour activities.

### Disaster preparedness
- Develop a disaster preparedness programme for the tourism sector to reduce scope and extent of negative impacts from annual weather-related tourism sector disasters.
- Develop programme in collaboration with emergency preparedness authorities.

### Implementing the national tourism policy
- Ministry of Tourism to lead implementation, requiring engagement with private sector, local government and communities, other ministries and agencies, the media and NGOs.
- Establish a high-level task force including relevant government agencies and stakeholders to oversee implementation and execute the detailed action plan (to be reviewed annually).
- Task force to submit an annual report to the Cabinet including recommendations for adjustments to the action plan.

### Source attribution
*Content derived from the provided IMF chapter/section.*

### Agriculture — strategic objectives and actions

- Context and medium-term objectives:
  - Agriculture has potential for rapid growth due to under-utilized capacity caused by declines in banana production and abandonment of lands.
  - Medium-term objectives: achieve sustained growth in production and exports, increase employment and incomes, and increase productivity in agriculture.
  - Diversification is necessary because banana prospects are poor due to Dominica’s low productivity per acre and exogenous external conditions.
  - For smallholdings, intensive agriculture focusing on high-valued crops (spices, peppers, flowers, selected vegetables) can yield higher returns than bananas.
  - Diversification through use of idle lands is the main means of increasing agricultural production during the medium-term.

- Major obstacle:
  - Relatively high cost of production per acre compared with other Windward Islands OECS countries due to land conditions (hilly terrain, small uneconomic sized lots) and low productivity of agricultural labour, resulting in high real wage rates in agriculture.
  - Improving labour productivity is a significant challenge.
  - Lack of a land-use planning or wider Human Settlement Policy is a critical impediment to agriculture, tourism, and housing.

- Three key result areas for the medium-term:
  1. Sustainable growth and development of the sector;
  2. An enhanced enabling environment for investment in agriculture; and
  3. Sustainable use of natural resources.

- Actions to pursue sustainable growth and development:
  - Enhance agricultural production, productivity and competitiveness through:
    - Crop diversification into passion fruit, hot peppers, plantains, culinary herbs, exotic crops and new food crops.
    - Assisting in the preparation of client business plans.
    - Providing irrigation infrastructure.
    - Rehabilitation of farm access roads.
    - Providing product development support through technical assistance, auditing, post harvest and other support.
    - Renewal of the citrus rehabilitation programme.
    - Establishment of a fodder bank and pasture at the Central Livestock Farm and crop and livestock input revolving schemes.
    - Facilitating use of idle lands through favorable leasing or rental conditions.
    - Introducing technologies to increase productivity and attract young people to agriculture.
  - Facilitate trade and investment through:
    - Production of HACCP plans for agriculture and fisheries.
    - Ensuring EUREGAP certification and monitoring for all banana farmers.
    - Assisting in preparation of at least 20 investment proposals.
    - Improving marketing of agricultural produce and encouraging export of products in primary or processed forms.
    - Pursuing niche market investigations and penetration for specialized products such as organics, herbs and spices, and fruits and vegetables.
    - Embarking on Programme of action to establish Dominica as an ‘Organic Island’ to reduce introduction of harmful substances into rivers and soils and establish a sound sustainable basis for agricultural growth.
    - Improving micro-credit in existing financial institutions for small-scale operators and re-cropping of idle lands.
    - Focusing public investment in agriculture in areas that will elicit or support private investment.
  - Promote sustainable development of natural resources through:
    - Working to increase by 50% the number of agro-forestry farmers.
    - Implementation of projects to expand organic banana production, improve integrated pest management, and increase utilization of farm organic waste.
  - Improve food security by:
    - Proactively supporting increased food and livestock production.
    - Completion and effective implementation of the SPFS project.
  - Ensure research and development, and information dissemination effectively promote competitiveness of agricultural investments.

- Enabling environment for investment — legislative, policy and institutional reforms:
  - Modernize legislation governing plant protection, animal health, food safety and other relevant legislation.
  - Gazette new fisheries legislation.
  - Complete a land use plan for the country, with the preliminary version to be completed by mid-2006.
  - Formulate and implement a policy for use of Dominica’s biological resources for bio-prospecting.
  - Review and streamline procedures for investing or starting a business in the agricultural sector, including appropriateness of the incentives regime.
  - Formulate and implement clear policies on organic agriculture and food security.
  - Improve enforcement of and review legislation pertaining to praedial larceny.
  - Amend wage legislation to provide for an hourly rate for agricultural workers.

- Sustainable use of natural resources — priority actions:
  - Implement a targeted public awareness and education campaign.
  - Develop and implement the (NEMS) National Environmental Management System.
  - Conserve genetic diversity and ensure sustainable use and proper management of national parks and eco-tourism sites, including actions on occupancy and use of lands on national parks and forest reserves, development and maintenance of trails, collection of user fees, and maintaining wildlife population at sustainable levels.
  - Reduce user conflict and promote sustainable use through greater collaboration with other government agencies and formulation of a coastal zone management plan.
  - Promote land conservation and rehabilitation for agricultural production, including preparation of a national action plan for reclamation of degraded lands and conservation of areas at risk.
  - Maintain ecological processes and life support systems in forest reserves and national parks through data collection and appropriate policy interventions.
  - Improve water management through preparation and execution of a national water management policy.
  - Promote sustainable utilization of forest products.

- Capacity, data and institutional strengthening:
  - Continue improvements to Government’s capacity for data gathering, analysis and utilization to inform policy and planning.
  - Enhance Government capacity through specialized training opportunities.

- Sector outlook and targeted expectations:
  - The document notes that Dominica’s banana industry will likely be much reduced: envisaged scenario of 400 banana farmers producing high quality bananas that qualify under ‘fair trade’ or ‘organic’ labels and satisfy niche markets.
  - Government interventions to support bananas:
    - Continue to intervene with the European Union to make grant funding available for infrastructural support to the banana industry, particularly continuation of the Irrigation and Drainage Programme.
    - Through the European Union-supported Enterprise Development Programme, make resources available to farmers needing irrigation equipment.
    - Actively promote banana industry interests in regional and international forums.
    - Continue partnership with Dominica Banana Producers Ltd. in its comprehensive Banana Development Programme to increase production levels.
  - Given limited expectations for banana performance, non-banana agriculture faces a greater performance burden for raising sector contribution to GDP over the medium- to long-term.
  - Government will act as an enabler, using public investment to signal confidence and to facilitate increased private investment.

- Timelines and deliverables:
  - Preliminary version of the land use plan to be completed by mid-2006.
  - Ministry of Agriculture comprehensive long-term plan expected to be available in mid-2006.
  - Ongoing strategic review of DEXIA expected to be completed by end 2005.

- Cross-cutting challenges highlighted:
  - Issues of production, productivity, cost of labour, competitiveness, marketing and transportation are inter-related and require a comprehensive approach.
  - Marketing and transportation largely reside in the private sector domain; Government will work to increase private sector interest and define roles through DEXIA review.

- Source attribution
*Content derived from the provided IMF chapter/section.*

### 3. Fisheries

### 3. Fisheries

### Characterisation of the Sector
- Dominica’s fishing industry is relatively small and artisanal, employing just over 3,100 fishers, 996 on a full–time basis.
- Majority of fishers are opportunistic (farmers), operating part-time and at subsistence level within the twelve mile territorial sea limit; surplus catch is sold to supplement income.
- Sector predominantly male-dominated across fishing, vending, boat building, and gear construction; fragments of women’s involvement emerging in Scotts Head, San Sauveur, Newtown and Portsmouth as vendors and secondary processors.
- Fleet composition:
  - Traditional floating rafts, dough-out canoes, and wood and fiberglass vessels ranging from five to 27 feet; characterized as day-boats (open hull, limited space, absence of navigational aids/amenities limiting trips beyond twelve hours).
  - Intermediate vessels capable of up to five days at sea present in very small numbers (only four registered) and considerably under-utilized.
  - Modern fleet: about 735 registered pirogues made of wood encased with fiberglass and fiberglass vessels.
- Fishing operations centered in coastal communities; thirty-two recognized fishing communities on the island.
- Spatial dynamics:
  - Predominantly within twelve-mile territorial waters.
  - Re-introduction of fish aggregating devices in the late 90s increased effort up to the forty-five mile radius from the coastline.
- Production and demand:
  - Fish landings have been increasing but only amount to about 1,400 tonnes.
  - Domestic landings are unable to meet demand, resulting in considerable imports of fish and fish products.
- Species and gear trends:
  - Shift toward offshore pelagic species (tuna and marlin).
  - Inshore net fishing operations and traps of lesser importance due in part to development programmes aimed at reducing near-shore fishing effort.
- Quality and effort issues:
  - Fish spoilage and relatively low fishing effort are common, attributable to traditional attitudes, low technology incorporation, consumer unwillingness to demand/accept higher quality standards, and structural vessel limitations (lack of chill storage).
  - National average fishing effort estimated at 2.35 days weekly, reflecting high proportion of part-time operators and limited perception of fishing as a major occupation.
- Biological/environmental constraints include seasonal variability, distinctions in fishery types, and access issues to and from resources.
- Sectoral transformation:
  - Greater compartmentalization emerging (fishing, marketing, support services) creating opportunities for new enterprises, employment, contributions to food security and GDP.
  - Infrastructure improvements referenced: Roseau and Marigot Fisheries Complex and FAO/D-REP based landing site improvements.

### Prospects for the Fisheries Sector
- Government commitment to develop seven zonal centers and enact an appropriate legal framework to achieve management targets; strategic plan seeks consolidation and upgrading of facilities at Marigot, San Sauveur, Anse De Mai, Portsmouth, Fond St Jean/Stowe, Roseau and Scotts Head as major centers island-wide.
- Recently completed Marigot fisheries complex cited as an example of donor-assisted development.
- Anticipated contributions from sectoral development:
  - Greater contribution to GDP through employment creation and disposable income earnings.
  - Social and economic stability at community level (poverty reduction).
  - Improved food security and reduction in import bill.
  - Potential earning of foreign exchange from fish export.
- Production and employment trends:
  - Near-shore fishery operations expected to decline in production and employment.
  - Offshore fishery expected to grow at a rate of three to five percent annually given existing trends.
  - Decline in coastal fisheries expected to be cushioned by anticipated rapid increase in water-sport activities as areas are allocated for alternative uses.
- Growth conditional on:
  - Rate of implementation of fisheries infrastructure improvements to meet international standards for fish export trade and improve access and processing capacity.
- External competition:
  - Advent of the CARICOM Single Market and Economy (CSME) will create challenges; local operators may face dumping of cheaper products from Guyana and Trinidad & Tobago, compromising poverty reduction and community stability due to lack of capacity to produce at competitive cost.

### Constraints
- Human capital and adoption:
  - Growth dependent on rapid adoption of modern skills and technologies and evolution from cultural practices that hinder progress.
- Financing:
  - Availability of accessible investment capital is severely challenged by lending institution policies and insufficient donor willingness to support fisheries.
- Cultural and capacity barriers:
  - Cultural influences and general lack of entrepreneurial capacity among sector players.
- Specific factors affecting development:
  - Unwillingness of fishers to engage in cooperative management of limited resources.
  - High percentage of part-time operators with low productivity, poor entrepreneurship skills, inadequate equipment, and resistance to new technologies and higher standards.
  - Poor resource management (open access fishery) including lack of effective surveillance of Dominica’s EEZ.
  - Rapid habitat degradation from multiple factors including poor fishing practices.
  - Lack of public appreciation of the sector’s potential and importance.
  - Inadequate written policies and lack of adequate legislation to manage the fisheries sector.

### Strategies for a way forward (Government measures for medium-term development)
- Improve fisheries management:
  - Put in place appropriate fisheries regulations under the Fisheries Act.
  - Implement a licensing and fees system for vessels and fishers, including foreign vessels, covering sport fisheries and water sport activities (including whale watching, and scuba diving etc.). Revenues potential from these operators fees could easily exceed EC$100,000 annually during the medium–term.
- Establish a commercialization policy:
  - GOCD to establish policy to manage and operate fisheries complexes along viable lines and stimulate entrepreneurship.
  - Allow public/private sector investment arrangements, potentially requiring initial government subsidies or an easy access development fund to enable private sector commercial use of complexes while Fisheries Division focuses on management and regulation.
- Develop offshore fishing capability:
  - Encourage private sector investments in intermediate-sized fishing fleets by establishing an enabling environment, primarily in areas where artisanal fishermen do not operate.
- Increase surveillance:
  - Increase fisheries surveillance by the Coast Guard, particularly in offshore areas within Dominica’s EEZ, with government contributing to surveillance costs.
- Develop essential infrastructure:
  - Construct fishing complexes in Portsmouth, San Sauveur, Scotts Head, Anse De Mai, and Fond St. Jean/Stowe to stimulate private sector interest.
- Upgrade knowledge, skills and technology:
  - Ensure minimum standards for entry into the fishery.
  - Establish an institution for transfer of knowledge, technology and skills through public sector led initiatives.
  - Develop and implement educational programmes targeting fishers and consumers of fish.
- Encourage regional integration and strengthen national authorities:
  - Promote regional integration of fisheries management and strengthen national management authorities for greater participation in regional and international fisheries fora.
- Eliminate trade barriers:
  - Establish national standards required for international compliance and certification to allow better access to external markets.
- Broaden opportunities through compartmentalization and reallocation of resources for alternate and new uses.
- Encourage greater involvement of women in sector operations through incentive-driven approaches.

*Source: _cr06289 - 3. Fisheries*

### 5.  Information and Communications Technology (ICT)

### 5. Information and Communications Technology (ICT)

### Overview and Rationale
- The GOCD recognizes that ICT can improve private sector performance, increase access to and the quality of education and health care, increase transparency and accountability of government institutions, improve service delivery to the poor, and give the poor a voice in decisions that shape their lives [OECD (2003), Policy Brief: Integrating Information and Communication Technologies in Development Programmes].
- A CIDA-financed feasibility study led to a project proposal, Dominica Government Enterprise Network (D-GEN), envisioning a state-of-the-art broadband wireless system starting with the government sector and extending to NGOs and the private sector.
- The D-GEN proposal was not implemented due to lack of funding and corporate direction, but provides a model incorporated into an ICT policy for Dominica being developed in conformity with an OECS Policy and Strategic Plan [GOPA Consulting Services, (2002), Final Report and Strategic Plan, OECS], whose objective is development of ICT as a leading sector in OECS economies.

### Medium-term Strategy
- The strategy for ICT development during the medium-term includes:
  - Formal GOCD approval of an ICT policy and strategy covering areas for intervention, human resource development, marketing, interagency collaborative mechanisms, and fiscal incentives.
  - Enactment of E-commerce and anti-competitive legislation and a review of the Telecommunications Act with a view to making necessary amendments to facilitate ICT sector development.

*Source: _cr06289 - 5.  Information and Communications Technology (ICT)*

### 7. Establish  an  association  of  micro  and  small  business  owners  to  access

### 7. Establish  an  association  of  micro  and  small  business  owners  to  access

### Centre staffing and succession
- A centre would be staffed by two international specialists in micro and small business development under contract for a two year period, with support staff seconded from existing NGOs and institutions such as SPAT, NDFD, and AID bank.
- Recommendation that two of the support staff should be trained so that they could take over the centre at the end of the specialists’ contracts.

### Developing our Human Resources — context and challenges
- Global economic reforms, knowledge-based activity, and rapid improvements in science and technology are reshaping education priorities.
- Dominica attained universal secondary education in late 2005 but must continue to improve quality and relevance.
- Government accepts: “The skill endowments of the labour force are indispensable for technology absorption, productivity improvement, diversification and overall competitiveness. Building a strong skill base is particularly important for competitiveness in the OECS because of their reliance on services and niche manufacturing.”
- The education system also must reduce social disparities and foster upward mobility while building social cohesion.

### Observations from studies and reviews (OECS)
A. SKILLS, EDUCATION AND TRAINING
- Skills are important for achieving and maintaining competitiveness.
- Building a strong skill base is particularly important for Dominica and other OECS countries because of potential future reliance on services and niche manufacturing.
- Firms have cited the shortage of skilled labour as a major constraint to improving competitiveness.
- The shortage of skills is reflected in increasing returns to education.
- The shortage of skilled labour arises from factors including relatively low educational attainment and emigration.

B. BASIC AND SECONDARY EDUCATION
- Dominica has expanded access to education, but quality remains a major issue.
- Poor education outcomes have emerged despite high spending, indicating serious inefficiencies.
- Secondary school curricula are in dire need of reform.
- High spending masks inequities; tendency to spend relatively more on better performing schools rather than where needs are highest.
- One outcome of low quality and inequitable secondary outcomes is high youth unemployment.

C. TERTIARY EDUCATION
- The OECS countries as a whole have a serious shortfall in tertiary education output.
- Both supply and demand factors explain the shortfall.
- Supply of tertiary education has been predominantly public-financed and publicly provided.
- Relying predominantly on either private or public investment has pitfalls in terms of equity.
- Public spending on tertiary education may not be sufficiently geared to private sector needs; attracting private tertiary providers may be difficult given small market size.
- The OECS must ensure public tertiary institutions contribute efficiently to solving skills shortages and find ways to increase private supply.

D. JOB TRAINING
- Job training is an important part of the supply chain for skilled labour.
- Job training appears to be lower in the OECS than in the rest of the Caribbean and Latin America.
- Job training complements, not substitutes for, basic education.
- Public training programmes are not well geared toward private sector needs.
- Under-provision of job training will persist if left entirely to the private sector.
- International best practice is to separate public financing from provision of training, e.g. by providing incentives for firms to use private providers, though small market size may hinder entry.

### Policy actions — strategic objectives
- The challenge is two-fold: (i) improve the quality of education; (ii) expand access to tertiary education; and (iii) refocus education and training systems on building skills demanded by employers.

A. Improve quality and efficiency of public spending on education by:
- Reforming teacher training and deployment schemes, seeking adoption of a sub-regional approach to teacher training (i.e. common curriculum, delivery modality, and certification system).
- Shifting resources from better performing schools to those where needs are greatest.
- Accelerating reform of secondary education curriculum to provide appropriate competencies and skills for further education and/or the transition from school to work.
- Improving monitoring and international benchmarking of, and public information on, education outcomes across the sub-region.

B. Expand access to secondary and tertiary education by:
- Encouraging greater participation of the private sector in tertiary education while ensuring adequate standards; adopt a sub-regional approach to accreditations integrated with regional and international standards.
- Improving efficiency of spending on tertiary education by increasing cost-sharing and appropriately targeted loan or scholarship programmes.
- Negotiating better terms of trade for tertiary education services to increase spillovers to domestic needs; target areas with domestic impact such as tourism and IT.
- Accelerating implementation of distance learning efforts; greater use of ICTs to overcome small market size and remoteness.

C. Refocus education and training systems on employer-demanded skills by:
- Strengthening private sector involvement in secondary curriculum reform, governance of tertiary institutions, and design and provision of job training programmes.
- Expanding skills training in key areas such as IT, hospitability, non-hotel tourism services, accounting and management.
- Refocusing public spending on training by targeting vocational training and micro-enterprise skills on linkages with export sectors, and promoting in-firm training through judicious use of financial incentives.

### Education Development Plan mission and key policy objectives
- Mission: “Guarantee equitable access to high quality education and training to develop in all its citizens the capacity to lead productive and fulfilling lives in a complex and changing society.”
- Key policy objectives include:
  - Change the culture of the Ministry of Education to that of a service provider, reposition institutional responsibility and strengthen systems.
  - Facilitate expansion of early childhood care and development activities, especially for disadvantaged and disabled children.
  - Promote qualitative improvements in primary education through a more student-centred approach.
  - Ensure universal access to secondary education and develop relevant curricula.
  - Improve access to tertiary and continuing education, ensure quality and efficiency through structural transformation of existing institutions.
  - Establish an integrated national information system.
  - Provide increased opportunities for personal development and effective use of leisure time.
  - Improve quality of education through enhancing teachers’ capacities and commitment.
  - Recognise and utilize science and technology as a strategic asset for sustainable national development.

### Managing the Environment — vulnerability and medium-term measures
- Dominica is extremely vulnerable to natural disasters and economic shocks, ranked the seventh most vulnerable country in the world.
- Environmental vulnerability increases infrastructure maintenance costs (landslides, erosion) and economic shocks (e.g., collapse of banana industry affecting 1999-2003 growth).
- Government aims to reduce environmental vulnerability (maintain/enhance environment) and economic vulnerability (diversification).

Medium-term measures:
- Approval and implementation of the OECS Physical Planning Act and National Environmental Management Strategy and Action Plan (NEMP) covering land and sea space management, waste management, disaster management, and climate change adaptation; envisages use of EIAs for large public (PSIP) and private projects.
- Strengthen physical planning capability to preserve historic and cultural integrity of Roseau, Portsmouth, and villages.
- Develop alternative energy sources: encourage exploitation of geo-thermal energy potential, extension of hydropower, and increased use of solar power; invite foreign and local private investors.
- Improve capacity for disaster management: reassign NEPO as Prime Ministerial responsibility, relocate ODM to the Prime Minister Office (OPM); upgrade ODM staff and provide Disaster Management training; develop DM policies/plans acknowledging volcanic threat; implement public information and education programme; conduct extensive mitigation activity.
- Establish an Environmental Mitigation Fund within the PSIP: initially 5% of the PSIP allocated to a contingency fund; GOCD will seek initial financing from donor agencies (the EU and PRC’s assistance programmes).
- Explore establishment of a Vulnerability Fund for SIDS under BPoA or AOSIS, potentially by the World Bank, to provide speedy response to hurricanes and environmental disasters and to seek environmental insurance for small islands.

### The Dominica Diaspora — size and economic significance
- Dominicans in the Diaspora more than double the existing population.
- Estimated between 150,000 and 160,000 adult Dominicans migrated since the 1940s to the UK, Canada and the United States.
- Remittances are not officially recorded but likely account for over 10% of Dominica’s GDP.
- Based on Latin American and Caribbean immigrant remittance expenditure from the United States averaging US$ 2,500 a year, Dominica’s Diaspora remittances are estimated at EC$80-$90 million a year, or about 12% of GDP in 2004.
- GOCD committed to a Diaspora Policy to increase investment and participation of the Diaspora and encourage Diaspora Dominicans to work or retire in Dominica.
- Medium-term measures: articulating and implementing the Diaspora Policy; utilising the NDC’s one-stop shop to promote investment.

### Resource requirements for implementing the GSPS — overview
- Implementation depends on: a) attaining necessary financing; b) improving institutional capacity; c) creating enabling environment to attract private investment.
- Costs are based on new elements/programmes constituting demands on a) capital expenditures of the PSIP, and b) recurrent expenditures of the GOCD.

### Implications for the Public Sector Investment Programme (PSIP)
- PSIP implementation adversely affected by: 1) donor funding timing difficulties (EU projects); 2) internal bottlenecks (scheduling, soil tests, technical drawings, poor reporting/monitoring).
- GOCD will outsource engineering/technical works and improve PSIP management.
- World Bank to work with donors for better coordination and harmonization of procedures.

Priority new projects for the GSPS:
1) Establishment of the Environmental Disaster Fund on a revolving fund basis.
2) Road Enhancement and Maintenance Programme.
3) Establishment of GOCD ITC network (D-Gen).

Project cost estimates for the medium-term:
- The Environmental Disaster Fund: initially based on about 5% of the PSIP; cost of the fund is $20.4 million for the medium-term period.
- Road Maintenance and Rehabilitation Programme: based on upgrading 50 km of roads a year; estimated cost for the medium-term is $12.4 million.
- Establishing D-GEN (GOCD ITC Network): estimated to cost $10.6 million during the medium-term period.

If these three projects are included, the total cost of the adjusted PSIP amounts to $43.4 million for the medium-term.

Adjusted PSIP figures (2005/06-2009/10) — by project and totals
- NEW: 5.4 9.3 11.4 10.1 7.2  43.4  10.4% of Total
- Env. Fund: 3.5  3.9   4.1  4.4 4.5 20.4
- RIP: 1.9  2.4   2.7   2.7 2.7 12.4
- D-GEN:   3.0   4.6    3.0 -  10.6
- Current PSIP: 73.3 70.0 72.9 76.3 81.7 374.2 89.6% of Total
- Total PSIP: 78.7 79.3 84.3 86.4 88.9 417.6 100.0

Financing of the PSIP (2005/06-2009/10)
- Grants: 55.1 55.0 54.0 55.3 56.9 276.3 66.2% of financing
- Local Counterpart: 6.3 6.8 10.1 10.4 10.7 44.3 10.6% of financing
- Loans: 17.3 17.5 20.2 20.7 21.3 97.0 23.2% of financing

Additional notes on PSIP financing and contribution
- The three new projects contribute about 10.4% to the PSIP’s projected expenditures for the medium-term period.
- About 66% of the financing of the PSIP is expected to come from grants, 23% from loans, and 11% from local counterpart funding.
- GOCD’s contribution of counterpart funding will amount to $44.3 million for the period 2005/06 to 2009/10, an average of $9 million a year.
- Implementation depends on securing required donor support for the PSIP during the period.

### Additional strategic projects and government partnering
- Government may need to be more entrepreneurial and partner private investors or be proactive in development where national interest is compelling.
- Candidate projects:
  - Continuation of the Pointe Michel Sea Wall and construction of the Scotts Head Sea Defence Project.
  - Construction of two mini marinas along the West Coast (recommended by a UN ECLAC expert review).
  - Canefield Cultural and Entertainment Complex (C-CEC) — multi-stage venue, conference centre, two-building car park at Canefield Airstrip; commercially viable but may require government determination on engagement if private financing is lacking.
  - Reconstruction of the West Coast Highway: projected to cost approximately EC$150 million; includes bypasses, Tarreau Road expansion, Layou River bridge, road streamlining; PRC committed to meet capital costs; should start late 2006.
  - Major refurbishment of Princess Margaret Hospital: possible cost of $12 million funded by PRC; expected to be completed within the GSPS time frame.
- Government may contribute land as equity or make financial outlays where necessary.
- Targeting Portsmouth for development: marina project with hotel and duty-free shopping; priority to establish a central sewage system in Portsmouth; road rehabilitation and reconfiguration of land use; possible highway bypass construction.

Capital expenditure projections and financing strategy
- Budget Address July 2005 indicated anticipated capital spending within the PSIP of close to EC$300 million over July 2005 to June 2008, potentially taking total capital expenditure to at least $500 million by 2010.
- Government will determine extent of donor/external financing required and seek continued grant or concessionary financing in view of borrowing limitations.

### Recurrent costs of the GSPS — overview and by Ministry
- GSPS will affect recurrent expenditures via: 1) institutional strengthening of Ministries; 2) increasing expenditures on services required; 3) temporary financial support for certain newly established agencies/institutions.
- The recurrent costs of the GSPS to the GOCD amount to $17.9 million for the medium-term.

Major recurrent costs by Ministry (medium-term estimates and descriptions)
- Ministry of Agriculture and the Environment:
  - Institutional strengthening of the Department of Agriculture to enhance extension services for agricultural diversification.
  - Establishment of a parastatal commercial company, Dominica Fisheries Ltd, estimated cost for establishment and operation is $520,000, requiring an increment of $220,000 over recurrent GOCD expenditures of about $300,000 a year for the Roseau and Marigot complexes; provision made for incremental costs for 2005/2006 and 2006/07 assuming about two years to reach viability.
  - Financing fuel costs of fisheries surveillance patrols: based on four offshore EEZ surveillance trips per month, estimated at $50,000 a year for a total of $250,000 for the medium-term period.

- Ministry of Communications, Works and Housing:
  - Institutional strengthening to improve capacity to implement the Road Maintenance and Rehabilitation Plan; cost amounts to $6 million for the period.

- Ministry of Finance and Planning:
  - Institutional strengthening for policy formulation, planning and administration of the GSPS and PSIP; institutional strengthening of the Inland Revenue Department by creating a VAT Section.
  - Provision already made in the 2004/05 Budget for the former, requiring a net addition of two positions; the latter requires a net addition of 14 staff members.
  - Net costs of these positions amount to $3.4 million for the medium-term period.

- Ministry of Tourism:
  - Institutional strengthening in promotion, destination management and marketing.
  - Estimated cost is $5.5 million, most of which is for tourism promotion.

- Ministry of Community Development & Gender Affairs:
  - Institutional strengthening to widen powers/responsibilities of municipal and village councils; conduct annual public consultative process; provide improvements in village community services.
  - Estimated cost: $550 thousand for the medium-term period.

- Ministry of Health and Social Security:
  - Institutional strengthening for upgrading administrative and information systems of social assistance and implementing the National HIV/AIDS Strategic Plan at an estimated cost of $3.2 million a year, or $1.6 million for the medium-term period.

- Ministry of Education, Youth Affairs, Sports and Human Resource Development:
  - Administrative and educational costs for implementing distance learning in the Dominica State College: estimated at $50,000 a year.
  - Costs of establishing a private sector management structure for the Sports Stadium in Roseau, including provision for part operational costs in its first year: approximately $500 thousand in the first year.
  - Total cost amounts to $1 million for the medium-term period.

- Ministry of Legal Affairs:
  - Institutional strengthening to modernize existing legislation and introduce new legislation for private enterprise enabling environment and the environment.
  - Provision for hiring two legal officers (State Attorneys) during the period at an estimated cost of $100 thousand.

- Total recurrent costs of the GSPS to the GOCD: $17.9 million for the medium-term.

*IMF country report content unit: _cr06289 - 7. Establish  an  association  of  micro  and  small  business  owners  to  access*

### 12.  The  impact  of  the  GSPS  is  greatest  in  the  first  year,  i.e.,  2005/06,  when

### _cr06289 - 12.  The  impact  of  the  GSPS  is  greatest  in  the  first  year,  i.e.,  2005/06,  when

### Recurrent costs of the GSPS (2005/06-2009/10)
- Aggregate total recurrent cost (Table 12): 17,980 $,000
- Annual totals (Table 12): 
  - 2005/06: 3,450 $,000
  - 2006/07: 3,705 $,000
  - 2007/08: 3,640 $,000
  - 2008/09: 3,765 $,000
  - 2009/10: 3,820 $,000
- Major component annual profiles and totals ($,000):
  - Agriculture & the Environment: 320; 320; 100; 100; 100; Total 940
  - Institutional Strengthening (Extension Services): 50; 50; 50; 50; 50; Total 250
  - Est. Fisheries Parastatal: 220; 220; -; -; -; Total 440
  - Fisheries Surveillance: 50; 50; 50; 50; 50; Total 250
  - Finance & Planning*: 660; 660; 660; 730; 730; Total 3,440
  - Planning and Priorities Unit: 130; 130; 130; 200; 200; Total 790
  - Inland Revenue Institutional Strengthening, VAT Unit: 530; 530; 530; 530; 530; Total 2,650
  - Communications, Works & Housing (Promotion & Public Awareness): 1,000; 1,200; 1,400; 1,400; 1,400; Total 6,000
  - Institutional Strengthening, Road Maintenance: 1,000; 1,200; 1,400; 1,400; 1,400; Total 6,000
  - Tourism: 1,000; 1,050; 1,050; 1,100; 1,150; Total 5,350
  - Promotion & Public Awareness: 950; 1,000; 1,050; 1,100; 1,150; Total 5,250
  - Community Dev, Gender Affairs (Institutional Strengthening): 100; 105; 110; 115; 120; Total 550
  - Health & Social Security (HIV/AIDS): 320; 320; 320; 320; 320; Total 1,600
  - Education, Youth, Sports & HRD (Distance Learning, DSC): 50; 300; 550; 50; 50; Total 1,000
  - Distance Learning, DSC: 50; 50; 50; 50; 50; Total 250
  - Legal, Immigration & Labour (Institutional Strengthening): 50; 50; -; -; -; Total 100
- Note: "* These cost are provided for in the 2004/05Budget."

### Implications for recurrent expenditures by Ministry (2004/05-2009/10)
- Total recurrent expenditures by all Ministries (Table 13):
  - 2004/05: 176,659.1 $,000
  - 2005/06: 180,613.2 $,000
  - 2006/07: 183,657.2 $,000
  - 2007/08: 187,975.4 $,000
  - 2008/09: 191,501.9 $,000
  - 2009/10: 194,357.1 $,000
  - Average growth rate (A.G.R): 1.9 %
- Economic Ministries subtotal (Table 13):
  - 2004/05: 83,171.4 $,000
  - 2005/06: 86,556.9 $,000
  - 2006/07: 87,938.6 $,000
  - 2007/08: 89,236.5 $,000
  - 2008/09: 90,921.5 $,000
  - 2009/10: 91,893.8 $,000
  - A.G.R: 2.0 %
- Selected Economic Ministry lines and A.G.R (Table 13):
  - Prime Minister’s Office: 24,644.6; 24,598.3; 25,090.3; 25,592.1; 26,103.9; 26,625.9; A.G.R 1.5 %
  - Finance & Planning: 28,346.8; 29,570.6; 29,836.7; 30,105.2; 30,376.2; 30,649.6; A.G.R 1.6 %
  - Agriculture & the Environment: 8,049.3; 8,319.3; 8,485.7; 8,655.4; 8,828.5; 9,005.1; A.G.R 1.6 %
  - Communications, Works, Housing & Physical Planning: 15,331.5; 16,331.5; 16,530.0; 16,730.0; 16,930.0; 17,130.0; A.G.R 2.2 %
  - Tourism, Industry & Enterprise Development: 3,436.2; 4,486.2; 4,575.9; 4,667.4; 4,760.8; 4,856.0; A.G.R 6.9 %
  - Foreign affairs, Trade & Marketing: 3,363.0; 3,351.0; 3,418.0; 3,486.4; 3,556.1; 3,627.2; A.G.R 1.5 %
- Social Service Ministries subtotal (Table 13):
  - 2004/05: 83,627.7 $,000
  - 2005/06: 84,094.0 $,000
  - 2006/07: 85,660.4 $,000
  - 2007/08: 88,580.1 $,000
  - 2008/09: 90,320.0 $,000
  - 2009/10: 92,100.3 $,000
  - A.G.R: 1.9 %
- Selected Social Ministry lines and A.G.R (Table 13):
  - Community Development & Gender Affairs: 10,722.2; 10,719.0; 10,948.3; 11,390.6; 11,618.4; 11,850.8; A.G.R 2.0 %
  - Education, Sports & Youth Affairs: 43,117.6; 43,588.0; 44,111.1; 44,640.4; 45,176.1; 45,718.2; A.G.R 1.2 %
  - Health & Social Security: 29,787.9; 29,787.0; 30,601.0; 32,549.1; 33,525.5; 34,531.3; A.G.R 3.0 %
- Other Ministries totals and A.G.R (Table 13):
  - 2004/05: 9,860.0 $,000
  - 2005/06: 9,962.4 $,000
  - 2006/07: 10,058.6 $,000
  - 2007/08: 10,158.8 $,000
  - 2008/09: 10,260.4 $,000
  - 2009/10: 10,362.9 $,000
  - A.G.R: 1.0 %
- Footnote: "Excludes interest payments."

### Impacts and outputs of the GSPS — objectives and targets (Section VII)
- Two main goals:
  1) improved performance for the economy
  2) increased employment, poverty reduction, and improved social protection
- Growth-related targets:
  - Growth in GDP with annual growth rates of 3% or more.
  - Expansion in trade with growth rates of exports of goods and services exceeding that of imports.
- Employment, poverty reduction and social protection targets:
  - Reduce unemployment rate to fewer than 10% by 2009/2010.
  - Decrease levels of poverty from over 40% of the population to about 25% by 2009/2010.
  - Improve delivery of social services (education, health and social protection programmes).

### Improved economic performance and trade performance scenario
- Medium-term aggregate export scenarios (Table 14):
  - Exports (without Water) growth average (A.R.G): 6.7 %
  - Water Exports growth average (A.R.G): 15.2 %
  - Total Exports growth average (A.R.G): 3.8 %
- Commodity trade figures (Table 14, $ million):
  - 2004: Exports 111.3; Water Exports -; Total Exports 111.3; Imports 390.8; Visible Balance of Trade -279.5; Exports % of GDP 15.1; Imports as% of GDP 52.8
  - 2005*: Exports 116.3; Water Exports -; Total Exports 116.3; Imports 395.6; Visible Balance of Trade -279.3; Exports % of GDP 15.1; Imports as% of GDP 51.2
  - 2006: Exports 125.0; Water Exports -; Total Exports 125.0; Imports 415.6; Visible Balance of Trade -290.6; Exports % of GDP 15.5; Imports as% of GDP 51.5
  - 2007: Exports 134.4; Water Exports 40.0; Total Exports 174.4; Imports 436.0; Visible Balance of Trade -261.6; Exports % of GDP 20.6; Imports as% of GDP 51.7
  - 2008: Exports 144.5; Water Exports 80.0; Total Exports 224.5; Imports 458.8; Visible Balance of Trade -234.3; Exports % of GDP 25.4; Imports as% of GDP 52.0
  - 2009: Exports 155.3; Water Exports 85.0; Total Exports 238.3; Imports 473.1; Visible Balance of Trade -234.8; Exports % of GDP 26.2; Imports as% of GDP 52.1
- Note: "* This is based on a conservative interpretation of sales expectations for bulk water exports."
- Commodity imports assumed to grow at an average rate of 3.4% a year during the medium-term, assuming they remain a relatively constant proportion of GDP.

### Tourism projections and contributions (Table 15)
- Assumptions:
  - Stay-over visitors: average growth rate of 5.5% a year (projection basis).
  - Per capita tourist expenditures: assumes a 2% growth rate a year.
  - Cruise ship visitors stable at about 300,000 a year.
- Tourism expenditure and visitor numbers (Table 15):
  - 2004: Stay over Visitors 74,595; Stay over Exp 138,631 $,000; Cruise ship Visitors 380,608; Cruise ship Exp 24,739 $,000; Total Tourism Exp 162,370 $,000; Total Tourism Exp % of GDP 22.0; Contribution to GDP 4.3
  - 2005: Stay over Visitors 78,698; Stay over Exp 149,181 $,000; Cruise ship Visitors 300,000; Cruise ship Exp 19,890 $,000; Total Tourism Exp 169,071 $,000; Total Tourism Exp % of GDP 22.0; Contribution to GDP 4.4
  - 2006: Stay over Visitors 83,026; Stay over Exp 160,533 $,000; Cruise ship Visitors 300,000; Cruise ship Exp 20,288 $,000; Total Tourism Exp 180,821 $,000; Total Tourism Exp % of GDP 22.4; Contribution to GDP 4.5
  - 2007: Stay over Visitors 87,592; Stay over Exp 172,749 $,000; Cruise ship Visitors 300,000; Cruise ship Exp 20,694 $,000; Total Tourism Exp 193,443 $,000; Total Tourism Exp % of GDP 22.9; Contribution to GDP 4.6
  - 2008: Stay over Visitors 92,409; Stay over Exp 185,894 $,000; Cruise ship Visitors 300,000; Cruise ship Exp 21,107 $,000; Total Tourism Exp 207,001 $,000; Total Tourism Exp % of GDP 23.5; Contribution to GDP 4.7
  - 2009: Stay over Visitors 97,491; Stay over Exp 200,039 $,000; Cruise ship Visitors 300,000; Cruise ship Exp 21,529 $,000; Total Tourism Exp 221,569 $,000; Total Tourism Exp % of GDP 24.4; Contribution to GDP 4.9
- Average growth rates (A.G.R, Table 15): Stay-over visitors 5.4; Stay-over Exp 7.3; Cruise ship Visitors -4.7; Cruise ship Exp -2.8; Total Tourism Exp 6.1
- Conclusion from source: "During the medium-term, the growth in tourism expenditures could average 6.1% a year. This rate of growth will increase tourism expenditures from 22% of GDP to 24.4% and the contribution of the industry from 4.3% to 4.9% of GDP."

### Labor force, employment and poverty reduction prospects (Table 16 and narrative)
- Population and labour force projections (Table 16):
  - Population (mean):
    - 2004: 69,261
    - 2005: 69,187
    - 2006: 69,103
    - 2007: 69,005
    - 2008: 68,909
    - 2009: 68,824
    - A.R.G: -0.1
  - Labour Force**:
    - 2004: 28,010
    - 2005: 28,050
    - 2006: 28,080
    - 2007: 28,110
    - 2008: 28,140
    - 2009: 28,180
    - A.R.G: 1.2
  - Employment (Emp***):
    - 2004: 23,860
    - 2005: 24,370
    - 2006: 24,880
    - 2007: 25,350
    - 2008: 25,900
    - 2009: 26,420
    - A.R.G: 2.0
  - Unemployment (Unemp):
    - 2004: 4,150
    - 2005: 3,610
    - 2006: 3,070
    - 2007: 2,570
    - 2008: 1,980
    - 2009: 1,420
    - Unemployment Rate (%):
      - 2004: 14.8
      - 2005: 13.1
      - 2006: 11.4
      - 2007: 9.8
      - 2008: 8.0
      - 2009: 6.2
      - A.R.G for unemployment numbers: -2.1
  - Poverty Levels (Percent of Population):
    - 2004: 32,100; 46.3 %
    - 2005: 30,600; 44.2 %
    - 2006: 29,000; 42.0 %
    - 2007: 27,500; 39.9 %
    - 2008: 25,800; 37.4 %
    - 2009: 24,200; 35.2 %
    - A.R.G for poverty levels: -5.7
- Narrative projections and assumptions:
  - Population projected to decline from estimated 69.2 thousand in 2004 to 68.7 thousand in 2009, at or by 0.1% a year.
  - Labour force proportion assumed to increase from 40.4% of population in the Census year 2001 to about 41% in 2009.
  - Employment projections based on per capita GDP per person working of $17,355 (constant $) in 2001, increased by 0.86% a year (average rate of growth of GDP per person working for 1991-2001) to estimate job creation/loss.
  - Experts project that a sustained (uninterrupted) GDP growth of 3% a year would generate about 2,500 jobs during 2005-09, assuming labor productivity growth of .9% a year.

*Source: extracted content from the provided IMF chapter.*

### 14.5  percent  in  2004  to  6.2  percent  in  2009  on  the  assumption  that  the  labor

### _cr06289 - 14.5  percent  in  2004  to  6.2  percent  in  2009  on  the  assumption  that  the  labor

### Employment, labor-force participation, and poverty projections
- Unemployment projected to decline from 14.5 percent in 2004 to 6.2 percent in 2009 on the assumption that the labor force participation increases only marginally (from 40.4% in 2001 to 41% in 2009).
- Estimated number of the poor: decrease from 32 thousand in 2004 to 24 thousand by 2009, or by 25%.
- Labor-force participation: from 40.4% (2001 baseline referenced) to 41% in 2009 (assumed).
- Risk noted: continued immigration of workers accepting lower wages may limit decreases in unemployment and poverty among the native population.

### Sectoral growth and employment composition
- Dominica’s economy and labor market to continue depending largely on services and agriculture.
- Employment opportunities expected to increase most in:
  - trade (retail and wholesale),
  - hotels and restaurants,
  - construction,
  - transport,
  - banking and insurance.
- Agriculture and fishing to provide considerable additional employment even if agriculture growth lags other sectors.
- Water, electricity, communication, and manufacturing expected to show more dynamic growth but produce a smaller number of new jobs due to high capital intensity.

### Major risks to growth and employment projections
- A 3% a year GDP growth can be interrupted by external shocks (climate).
- Marginal productivity likely higher than historic average because new investment is more capital- and technology-intensive, which would result in fewer additional jobs even if GDP grows 3% a year on average.
- Continued immigration of lower-wage workers could boost economic activity while limiting unemployment and poverty reductions for natives.
- Emphasis on improving effectiveness of community development and social protection programmes to improve odds of real progress in reducing poverty.

### Implementing and monitoring the GSPS (Growth and Social Protection Strategy)
- Priority aspects:
  - put in place the enabling environment as quickly as possible;
  - make administrative reform an ongoing activity of the Ministries;
  - amend ministry action plans to reflect the private sector focus of the GSPS;
  - accelerate PSIP implementation by improved planning, scheduling and removal of bottlenecks;
  - improve targeting of social programmes.
- Monitoring and evaluation:
  - PPU will incorporate monitoring into the budget exercise.
  - Mid-term evaluation in 2007/08 and end-of-period evaluation in 2009/10.
  - Establishment of performance criteria including objectively verifiable indicators (OVIs) and qualitative indicators of inputs and outputs.

### Performance indicators (selected entries from Table 17, 2005–2009)
- Real GDP Growth Rate: 3% 3% 3% 3% 3% — Measurement & Target: 3% & over per annum
- GDP Per Capita: 3% 3% 3% 3% 3% — % Growth
- Exports: 15.7 15.8 15.9 16.0 16.1 — % of GDP
- Imports: 48.7 48.5 47.9 47.2 46.6 — % of GDP
- Tourism Expenditures: 22.2 22.2 22.7 23.3 24.4 — % of GDP
- Manufacturing Production: 4.5% 4.5% 4.5% 4.5% 4.5% — % Growth rate
- Government Primary Balance: 3% 3% 3% 3% 3% — Maintain 3% of GDP
- Current Revenue: 32.9 29.4 29.2 29.1 29.0 — % of GDP
- Current Expenditure: 28.9 28.4 28.8 28.8 28.8 — % of GDP
- Public sector debt/GDP: 103.9% 99.5% 95.3% 91.1% 87.1% — % of GDP
- Employed (as % of Labour Force): 40.4% 40.5% 40.6% 40.7% 40.8% — % of Labour Force
- Unemployed Rate: 13.1% 11.4% 9.8% 8.0% 6.2% — % of Labour Force
- Poverty Head Count: 36% 32% 27% 24% 20% — % below poverty line
- Indigent Poverty: 15% 13.5% 12% 11% 9% — % below indigent line
- Poverty Gap Ratio: 10.2% 9.5% 8.5% 8% 7% — % Gap
- Education as a % of Gov’t Expenditure: 24.1% 24.0% 23.7% 23.5% 23.5% — % Government Expenditure
- Primary School Net Enrollment Ratio: 90 95 95 100 100
- Secondary School Net Enrollment Ratio: 85 90 95 100 100
- Pupil: Teacher Ratio – Primary School: 1:18 1:18 1:18 1:18 1:18
- Pupil: Teacher Ratio – Secondary School: 1:17 1:18 1:19 1:19 1:19
- Secondary School Results – CXC (% of students passing five or more subjects): 80% 82% 84% 85% 86%
- Public Health as a % of Government expenditure: 16.5% 16.7% 17.3% 17.5% 17.7% — % of Government Expenditure
- Clinics per ‘000 population: 0.78 0.78 0.79 0.80 0.81

### Poverty reduction institutional and programmatic actions
- Government to promote:
  - involvement of many government and non-government organisations;
  - increased inter-agency co-ordination and co-operation, especially between government agencies and NGOs;
  - establishment of inter-sectoral ad hoc committees for key social issues (e.g., HIV/AIDS, male adolescent under-achievement, assistance to vulnerable women and families);
  - clear set of priorities, including re-evaluation and rationalisation of existing programmes;
  - improved targeting and introduction of targeting into programmes where none now exist;
  - preparation of thorough and convincing proposals for external funding agencies;
  - commitment at the highest level of government to these processes.
- Inter-agency committees to develop a limited number of key poverty-related indicators derived from routine information.
- Quantitative indicators to be supplemented by annual workshops and panel discussions with teachers, health personnel, and community development officers.

### Institutional capacity and governance for GSPS implementation
- GOCD to institutionalize GSPS on a rolling-plan basis to allow flexibility and continuity with IMF/World Bank reporting and donor needs.
- Establish a GSPS Steering Committee; PPIU within MOFP to serve as Secretariat and implementation arm.
- Steering Committee responsibilities:
  - direct implementation of the GSPS;
  - monitor impact of the GSPS;
  - propose required revisions;
  - ensure public information on progress.
- Steering Committee composition: headed by a designated Minister, not more than 15 members, including Financial Secretary; Head of the PPIU (Secretary); Social Development Planner; all Permanent Secretaries; representative of the Private Sector- Chairman of DAIC; representative from the National Association of Local Authorities; Chairperson of the Credit Union League; President of NANGO.
- Steering Committee to meet quarterly; PSIP Committee to submit quarterly reports to the GSPS Steering Committee.

### Planning and Public Investment Unit (PPIU) roles, staffing, and costs
- PPIU main responsibilities:
  - initiate analyses of economic and social performance;
  - monitor poverty levels and establish PROMISE (Poverty Reduction Monitoring and Evaluation Management System);
  - liaise with ministries and coordinate action plans with GSPS;
  - appraise and approve project proposals from ministries;
  - initiate project proposals; and
  - submit approved project proposals to IFIs and donor agencies.
- PPIU personnel:
  - Head, PPIU (Chief Development Planner);
  - Social Development Planner;
  - Senior Economist;
  - Two Economists; and
  - A Statistician (social statistics).
- Budgetary provision made for the first five professionals; recurrent costs amount to about $80,000 a year ($50,000 for salaries and $30,000 for operating expenses).

### Risks, uncertainty analysis, and sectoral threat scenarios
- Environmental shocks (hurricane or volcanic eruption) can disrupt growth and exacerbate poverty for years; GSPS measures focus on disaster preparation, mitigation, and funding systems for environmental disasters.
- Economic shocks identified:
  1. an energy crisis;
  2. loss of international donor support;
  3. inability to attract foreign investment;
  4. failure to increase productivity and competitiveness.
- Energy crisis response measures:
  - reduce dependence on petrol via alternative power sources: thermal energy development, solar power in housing and commercial buildings, wind power in selected areas;
  - encouragement of widespread use of solar power in housing cited as pragmatic.
- Loss of international donor support threatens PSIP implementation and could exacerbate debt problems; GOCD should seek necessary international support for PSIP and social/poverty measures.
- Inability to attract private foreign investment undermines tourism and other sector measures; creating an enabling environment and projecting an "open for business" image is critical.
- Failure to increase productivity and competitiveness is the most serious economic risk; GSPS measures to improve productivity include government efficiency, enabling environment, infrastructure improvements, and more relevant education.
- Risk that wage increases outpacing productivity, including "irresponsible Trade Union demands," could erode competitiveness and growth.

### Time frame, scheduling, and priority sequencing
- GSPS implementation period: from 2005/06 to 2009/10.
- Scheduling strategy emphasizes early action on critical measures:
  1. pursue administrative reform within a two-year implementation time frame;
  2. introduce fiscal measures early to establish a stable fiscal situation;
  3. accelerate PSIP implementation by improved planning, scheduling and removal of bottlenecks;
  4. create the enabling environment by removal of legislative and bureaucratic restrictions in 2005/06;
  5. improve social protection targeting coverage in 2005/06.

### Implications and conclusion
- GSPS aims to transform Dominica from a public-sector-led to a private-sector-led growth economy while incorporating a Poverty Reduction strategy within a macro-growth context for 2005-2009.
- Recognizes prior constraints: reliance on one or two sectors, lack of diversity, and poor fiscal management that led to unsustainable debt (addressed by ESAP), leaving competitiveness and insufficient internal dynamism as remaining defects.
- Growth strategy built around:
  1. a fiscal policy of restraint and improved administrative structure;
  2. creation of an enabling environment for private enterprise;
  3. a strategy for sectoral growth;
  4. a strategy for poverty reduction and social protection.

*Content derived from the provided IMF PDF excerpt.*

### 21. GOCD, (2004), Budget Address 2004/2005

### 21. GOCD, (2004), Budget Address 2004/2005

### FISCAL POLICY
- Controlling the Public Service Wage Bill and Staff Complement:
  - Total Wage Bill increases not more than 2% a year.
  - Staff replacements limited to not more than 40% of the natural attrition from the Service.
  - i) and ii) Implemented (2005/2006–2009/2010).
- Modernization of the Tax System:
  - i) Introduction of a VAT.
  - ii) Broadening the tax base.
  - i) and ii) implemented (2005/2006–2009/2010).

### PUBLIC SECTOR INVESTMENT PROGRAMME (PSIP)
- Integration of PSIP with GSPS:
  - Build capacity in the planning unit for PSIP management.
  - Establishment of the PPIU: PPIU established (2005/2006), PPIU operational (subsequent years).
- More growth-focused PSIP:
  - i) Develop and apply objective selection criteria.
  - ii) Strategically link projects to growth and poverty reduction.
  - New approach implemented (2005/2006–2009/2010).
- Adopt more comprehensive and systematic approach to PSIP:
  - Launch road maintenance project (EURO): Funding acquired; implemented across years.

### MEDIUM TERM PUBLIC SECTOR REFORM
- Modernization of key ministries:
  - Restructure and modernize growth and social services ministries: Consultancy done; Recommendations implemented.
- Strengthening middle management:
  - Train middle managers in key growth and poverty reduction concepts: 1 workshop held (2005/2006); 2 workshops held (each subsequent year).
- Legislative/administrative reform:
  - Review policies, procedures and practices for more effective performance: Review completed; Legislative changes implemented (2006/2007 onward).
- Devolution of human resource management:
  - Provide permanent secretaries responsibility for recruitment, discipline and dismissal of lower level staff: Amending Public Service Regulations; New regulations implemented.
- Building meritocracy:
  - Introduce transparent merit pay system: Proposals made; The new system implemented.
- Building public awareness:
  - Continue public education campaign regarding changes in the Public Service: Strategy developed; Measures implemented.

### ENABLING ENVIRONMENT / INVESTMENT
- Attracting foreign and domestic investment:
  - i) Establish a one-stop shop for foreign investment approval.
  - ii) Reducing the cost of doing business.
  - iii) Encouraging partnership arrangements.
  - iv) Strengthening competitiveness.
  - v) Outsourcing and privatization of Government enterprises.
  - i)-v) Implemented (2005/2006–2009/2010).

### IMPROVING THE FINANCIAL SECTOR
- Improving supervisory mechanism for financial sector:
  - Review legislative/regulatory framework: Review undertaken.
- Improving institutional capacity:
  - Train staff of Financial Services Unit.
- Building strategic position of indigenous banks:
  - Review institutional capabilities of indigenous banks: Review undertaken.
- Improving competitiveness of credit unions:
  - Improve the banking environment: Review undertaken.
- Improving access to capital:
  - Encourage local companies to participate in ECCB Stock Exchange: Implemented (across years).

### OVERCOMING VULNERABILITY / ENVIRONMENT
- Implement National Environmental Management Strategy and Action Plan (NEMP): Meetings conducted; implemented (2006/2007 onward).
- Develop alternative sources of fossil fuels:
  - Pursue geothermal energy project; Participate in regional oil procurement programme.
  - Work continue → Discussions continue → Viability determine → Agreement reached → Project launched → 0il procured → Construction → 0il procured → Geothermal energy produced (phased milestones across years).
- Establish an Environmental Mitigation Fund under the PSIP:
  - Make budgetary provisions in 2005/2006 capital budget: Agreement reached; Funds allocated (2006/2007–2009/2010).
- Establish vulnerability fund for SIDS:
  - Allocate 10% to SDR to fund: Project submission to SIDS Group; Agreement reached and submitted to World Bank; World bank Programme developed; Fund established.

### TOURISM
- Institutional strengthening:
  - Restructure and strengthen the Ministry of Tourism; Increased funding for promotion: Provision in budget; Implemented across years.
- Improvement in tourism infrastructure:
  - (i) Improve Melville Hall Airport; (ii) Construct Melville Hall/Roseau Road.
  - Work Commence → Airport 30% complete → Road 60% complete → 80% → 100% complete (phased across years).
- Establishment of yachting facilities:
  - i) Negotiate with private enterprise operator; ii) Construct yacht marina.
  - Concept finalized; Negotiations with Private Investors; Construction; 100% complete.
- Hotel improvement:
  - Negotiate with hotel chain company; Construct large hotel: Concept finalized; Negotiations; Planning for Implementation; Construction commences.
- Tourism marketing in French West Indies:
  - Marketing and accommodation arrangements with French West Indies hotels: Plan negotiated; 20% increase in Excursion Tourists (targeted increases in later years).
- Establish Air/Sea combination link:
  - Partnership with large French hotels; Utilize ferry services: Concept finalized; 2 hotels → 2 hotels → 2 hotels → 6 hotels total (phased).
- Development of sites:
  - Identify, develop and market community tourism sites: EU Tourism Project; 2 new sites added per year (across years).
- Achieving linkage with agriculture:
  - Establish organic agriculture/tourism linkage: Concept finalized; 3 sites established (maintained across years).
- Public education on Tourism and Improving security:
  - Launch public education programme: Plan developed; Funding secured; Implemented.
- Product development and community capacity building:
  - Improve crafts, cuisine, display: Project developed; 2 workshops per indicated years.
  - Establish Community Tourism Management Committees: Concept finalized; 3 committees (per year).

### AGRICULTURE
- Refining the role of the Ministry of Agriculture / strengthening capacity:
  - i) Comprehensive review of role of Ministry of Agriculture (RMU engaged).
  - ii) Launch organic farming incentive programme; Teach Agricultural science in schools.
- Strengthening science & technology in Agriculture:
  - i) Improve farmer education; ii) Explore hydroponics, irrigation; iii) Expand greenhouse technology.
  - Programme formulated; Programme implemented (phased).
- Promote agricultural marketing and market penetration:
  - Enhance sector’s capacity: Meetings conducted; Task force formed; Recommendations implemented; Implemented (2007/2008 onward).
- Provision of transportation for marketing:
  - Facilitate private sector provision: Increased transportation available (sustained).
- Improve and establish micro credit scheme for agriculture:
  - Review micro credit facilities available to farmers: Review; Implemented (subsequent years).
- Improve systems of cooperation/farmer organizations:
  - Initiate farmers cooperatives; Encourage cooperation in marketing.
- Increase farmer productivity and competitiveness:
  - i) Launch competitive farmer award scheme; ii) Launch young farmers incentive Programme; iii) Change the wage system.
  - Develop Prog.; Amend Wage legislation; Implemented (phased across years).

### FISHERIES
- Improving fisheries Management:
  - i) Co-Management of Artisanal fisheries: Co-mgt areas identified; Mgt. implemented (phased).
  - ii) Improved offshore fisheries surveillance: Surveillance increased; Implemented (phased).
- Conclude arrangements for management of fisheries complexes:
  - Examine options (statutory/cooperative corporation/full privatization): Organization formed to manage complex → Complex self financing → Complex privatized.
- Enhance offshore fisheries capabilities:
  - Facilitate procurement of fishing vessels by private sector: Project developed & submitted; 6 vessels obtained; Vessels operational (phased).

### MANUFACTURING / AGRO-INDUSTRIES
- Link agro-processing to agricultural production:
  - i) Determine agro-processing demands for agricultural products.
  - ii) Strengthen marketing ties between producers and agro-industries: DEXIA, agro-processors and agri associations meeting; Improving marketing ties; Regular supply of raw materials.
- Increase exports of agro-products:
  - Promote joint ventures: Partners identified; Campaign launched; 2 joint ventures formed (then functioning).
- Improve micro credit for agro-processing:
  - Promote greater coverage of micro-credit to small agro-producers: Funding conditions improved; Implemented.
- Provide infrastructure for start up cottage industries:
  - Construct and establish incubator facilities: Proposals prepared; Funding secured; 2 incubators built; Incubator operating.
- Build capacity for testing and quality control:
  - i) Establish a National Testing Laboratory: Planning; Building constructed; Operation of facility.
  - ii) Establish a quality control handbook: Handbook published.

### INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
- ICT policy formulation and implementation:
  - i) Endorse ICT policy: Policy adopted (2005/2006); Policy implemented (2006/2007–2009/2010).
  - ii) Create enabling environment for E-Business.
- Establish Government administrative network:
  - Finalise project proposal on D-GEN: Proposal submitted to donor agency; Implement project (phased).
- Improve regulatory framework and reduce cost of communication services:
  - i) Improve and reduce the cost of communication services.
  - ii) Improve training in telecommunication services.
  - iii) Review regulatory framework to make it more conducive to growth and efficiency.
  - Actions implemented (2005/2006 onward); i) and ii) Implemented.

### CONSTRUCTION / HOUSING
- Construction of affordable housing:
  - i) Launch private enterprise affordable housing programme: Scheme established; Scheme implemented (phased).
  - ii) Utilize government owned lands for sale for housing.
- Land allocation and site development:
  - Implement the shelter development programme: Funding negotiated; 2 Sites established; Houses built; Houses occupied.
- Encourage DIASPORA investment in housing:
  - Formulate a DIASPORA policy: Policy adopted; Policy implemented (phased).
- Improve credit for housing:
  - Dialogue with financial institutions: Rates reduced; More houses built (phased).

### ENERGY
- Development of geothermal energy:
  - Conduct feasibility study; Demonstration plant established; Plant built; Plant operational (phased across years).
- Policy in favor of energy efficiency measures:
  - i) Develop an energy conservation policy: Policy formulated.
  - ii) Encourage solar power in housing and commercial buildings.
  - iii) Introduce a new Energy Supplies Act: Act drafted; Act passed; Policy implemented (phased).

### TRANSPORTATION
- Road rehabilitation and improvement:
  - Formulate comprehensive plan for road maintenance and improvement: Project approved & implemented; 50 km of roads rehabilitated (repeated across years).
- Port improvement:
  - Formulate / implement plan for port modernization.

### WATER
- Large increase in export of bulk and bottled water:
  - Facilitate expansion of private sector production and export: Markets found; Financing secured; Plant constructed; Water exported to key markets (sustained across years).
- Maintain good quality water:
  - Protect water catchments and regular and transparent water testing: Meetings held; Testing increase; Testing maintained.
  - Water quality improved by 50%.

### DEVELOPMENT OF MICRO AND SMALL ENTERPRISES
- Improve the policy framework:
  - Formulate and implement a national policy: Working group established; Policy adopted; Policy prompted; Policy fully utilized.
- Provide micro credit:
  - Review credit schemes and make them more client friendly: Schemes restructured; Greater access achieved (sustained).
- Improve the regulatory framework:
  - Review legislation for viability of micro and small enterprises: Working group established; Legislation adopted; Legislation fully used.
- Institutional capacity enhancement:
  - Obtain micro-business development expert: Expert recruited; Plan completed; Plan implemented; Sector expands (phased).

### PROMOTION OF GOOD GOVERNANCE
- Public participation in national policy formulation:
  - Organise and institutionalize consultations on policy and plan formulation and implementation: Pre-budget consultations; Consultations for GSPS review (ongoing).
- Strengthen the local Government system:
  - Implement recommendations of the Local Government study report of 1999: Recommendations implemented; New legislation adopted; New arrangements implemented (phased).

### HEALTH
- Strengthen Primary Health Care (PHC) system:
  - 1. Repair and renovate health centers.
  - 2. Construct Roseau and Clifton Health Centres.
  - Conduct evaluation of current structure: Relevance of current structure of PHC Service assessed by Jan 2007.
  - Construct Roseau Health Centre; Elaboration of action plan; Implementation of action plan.
  - Action plan ongoing – 40% reduction in incidence of chronic and non – communicable diseases (target).
- Implement the AIDS/HIV strategic plan:
  - AIDS/HIV strategic plan implemented; 50% complete → 75% complete → 100% complete (phased); 50% reduction (target).
- Build public awareness of lifestyle diseases:
  - Strengthen alliances with media, educational institutions and Private Sector for Public Education: Action plan prepared; Implementation ongoing.
- Strengthen Secondary Care Delivery System:
  - 1. Strengthen PMH management structure.
  - 2. Upgrade services at PMH (Introduction of Intensive Care Unit).
  - Proposal submitted to Cabinet to revamp management structure; Implementation ongoing.
- Develop National Health Care Financing Mechanism:
  - Evaluate User Fee Programme and introduce National Health Coverage (UHC).
  - Current regime reviewed; Proposal made, Cabinet decision; Consensus building and public education on UHC ongoing.

*21. GOCD, (2004), Budget Address 2004/2005*

### Introduction

### _cr06289 - Introduction

### Health: UHC Implementation and Private/Public Partnership
- Conduct a study and establish mechanism for necessary Private sector participation in health and social development.
- Draft paper prepared.
- Targets: 1 partnership established; 2 partnerships established; Partnerships evaluated.
- Availability of appropriate medical supplies:
  - Ensure continued participation in OECS drug procurement programme.
  - Timely payment made (repeated entries for successive periods).

### Education: Universal Secondary Education (USE), Quality, and Access
- Achieve universal secondary education.
  - Continued expansion of universal secondary education programme.
  - Universal secondary education achieved.
  - USE maintained (repeated entries across implementation periods).
- Increase efficiency of school system:
  - Keep under review the issue of number of small schools.
  - Further review conducted; Action taken pursuant to review (repeated).
- Improve quality of teaching staff:
  - Train and hire qualified teachers.
  - Targets: 25% improvement in quality of teaching staff; 50% improvement; 75% improvement; 100% improvement.
- Improved tertiary education:
  - i) Continued improvement in state college.
  - ii) Establishing distance-learning linkages.
  - Distant-learning Agreement with regional community colleges.
  - Library facilities improved.
  - Implementation of distance-learning programme.
  - Standards increase; Pass rate improved by 25%.
- Improved cost recovery programme in secondary and tertiary education:
  - Revise secondary and tertiary education fees.
  - Recommendations approved; Recommendations implemented (repeated).
- Promote sports and fitness in schools and communities:
  - i) Improve and expand sports and fitness facilities in schools or regions.
  - ii) Construct national sports stadium in Roseau.
  - Phased targets: Develop concept; Start construction; Construction in progress; Facility completed; Facility in full use; Facilities fully operational.
- Increased access of the poor to secondary education:
  - i) Strengthen and expand Education Trust Fund and other support programme.
  - ii) Work with the Christian Children Fund (CCF).
  - Milestones: Meetings conducted; Funding negotiated; Partnership established; Budget doubled; Information exchange/Sharing; Joint project established; 100% increase in beneficiaries; Joint project fully implemented.
- Achieve greater match between the education system and the labor market:
  - i) Review technical education at secondary level and remove stigma.
  - ii) Maintain student guidance counseling programme.
  - Milestones: Meetings conducted; Programme implemented; Counseling in all Sec. schools; Programme ongoing; Done in all Sec. schools.
- Improved school curricula and literacy:
  - i) Implement BERP2.
  - ii) Build strong parent involvement in education through PTA etc.
  - Progressive functionality: Ongoing; 25% functioning; 40% functioning; Completed 75% functioning; Universal Sec. Ed. Achieved; All functioning.
- Promotion of skills training:
  - Provide support to Operation Youth Quake, OYQ, youth skills training programme, adult education.
  - Conduct meetings; Develop proposal; 25% increase in grants and contributions; Contribution maintained; 25% increase in grant/contributions.

### Community Development and Social Protection
- Improvement in welfare programme:
  - Expand and better target welfare programme.
  - Recommendations adopted; Implementation of recommendations (repeated).
- Improvement in local community governance:
  - i) Initiate, work with and build the capacity of Community Based Organizations (CBO’s).
  - ii) Build partnership with local communities through local level structures for participation in national development, policy formulation and planning.
  - District planning sessions held (repeated across periods).
- Expansion of systems of cooperation and community cooperatives:
  - i) Community education, mobilization and organization programme.
  - Targets launched: 15 programmes launched; 40 programmes launched; 60 programmes launched; 90 programmes launched.

### Carib Community Development
- Pursue integrated development for the Carib people:
  - i) Implement the recommendations of the Carib Integrated Development Plan.
  - ii) Implement the Integrated Community Development Programme for the Carib Territory.
  - Implementation/completion milestones: 20% implemented / 20% complete; 40% implemented / 50% complete; 60% implemented / 75% complete; 80% implemented / 100% complete.
- Improvement in Carib peoples’ access to financial services:
  - Explore possibility of a guarantee fund for Carib people.
  - Milestones: Study conducted; Recom. implemented; Facility in place.
- Promotion and operation of Carib Model Village:
  - Ensure efficient and effective operation of model Carib Village.
  - Full operation milestones and tourism targets: 30% tourist increase; 50% increase; 100% increase.
- Developing Carib traditional herbal medicine:
  - Research, documentation and protection of Carib medicinal herbs.
  - Milestones: Funding negotiated; Research conducted; Documentation done.

### Fishing Communities and Fisheries Integration
- Increased fishermen’s catch:
  - Organize training programmes for fishermen.
  - Introduce adaptive and sustainable technology.
  - Improve marketing and distribution of fish.
  - Improve fisheries infrastructure - landing sites etc.
  - Milestones: Meetings conducted; Working group in place; 1 established; Cabinet approval rec.; 2 established; System in place; 3 established; Systems operating effectively; 5 operating.
- Integration of fisheries with other sectors:
  - Introduce co-management arrangement with fisheries, marine tourism and Community Development.
  - Launch Integrated Community Fisheries Programme in selected communities.
  - Milestones: Meetings conducted; Funding negotiated; Programmes implemented.
  - Targets: 50% increase catch; 100% increase in catch.

### Ross University Medical School
- Enhancement of contribution to Dominica’s development:
  - i) Establish a concordat with DeVry Inc.
  - ii) Link Ross University to Portsmouth Hospital and medical services.
  - iii) Link Ross University with tertiary education.
  - iv) Review annual fee structure.
  - Milestones: Working group est.; Concordat negotiated; Proposal prepared; Proposal implemented; Greater contribution achieved.

### HIV/AIDS
- Confronting the AIDS/HIV epidemic:
  - Implement HIV/AIDS strategic plan (NHSP).
  - Implementation milestones: 10% impl.; 30% impl.; 50% impl.; 75% impl.; 100% impl.

### Appendix 2 — Government and NGO-Administered Social Programmes
- Government Administered and Supported Programmes:
  - Dominica Social Security (DSS) -- the Social Insurance Programme established in 1970 as the National Provident fund and transformed into Dominica Social Security in 1976.
  - The Dominica Social Investment Fund (DSIF) –- This Fund should have become operational since May 2004 but for the considerable lay in concluding arrangements previously agreed with the European Union. The DSIF targets the following vulnerable groups: groups adversely affected by macro-economic adjustment; the Carib community; children at risk; youth at risk; and older persons.
  - Public Assistance -- Administered by the Ministry of Community Development, Gender Affairs and Information. Provides income support to the poor. Eligibility is subject to a means test, a home visit and an annual review; however, criteria for eligibility are not documented.
  - Legal aid Clinic -- Established in April 28, 2003, with assistance from CIDA.
  - School Feeding Programme -- Administered by the Ministry of Education, Sports and Youth Affairs. Founded in 1991 under the World Food Programme (WFP).
  - Education Trust Fund -- administered by a Board of Trustees appointed by the Ministry of Education. Provides assistance to secondary school and some tertiary students for transportation, uniforms, books and external examination fees.
  - Basic Needs Trust Fund -- Established in 1979, this CDB-funded programme has been making an important contribution to meeting the basic needs of the population and to community empowerment in the rural communities.
  - Textbook Scheme -- Programme established in 1996, to assist primary and secondary school students who are unable to purchase the required textbooks.
  - School for the Hearing Impaired -- Provides special education for persons with disabilities.
  - Home for the Aged -- There are three (3) homes for the aged that provide daily care for the elderly not able to receive care at home or in the local community.
- Programmes Administered by NGOs (selected entries):
  - Dominica Association of Disabled Persons (DADP) -- Empowerment of the mentally and physically challenged. Founded in 1983.
  - The Social Center -- Founded in 1950. Pioneered the preschool education programme and the Adolescent Skills Training Programme.
  - The Dominica Council of Women (DNCW) -- Established with funds from Canada IICA; serves as an umbrella organization of women’s groups; provides skills training and a family hot line.
  - Dominica Council for Ageing; REACH; Operation Youth Quake (OYQ); Christian Children Fund (CCF); Alpha Centre (AC); Small Project Assistance Team (SPAT); National Development Foundation of Dominica (NDFD); Dominica’s Hucksters Association; Society of St. Vincent de Paul.
  - Note: Items marked with * denote programmes receiving direct funding support as well as in kind or duty free concessions from the GOCD.

### Appendix 3 — Medium-Term Strategic Reform Agenda (March 2006; FY periods)
- Policy Area: Investment climate
  - Diagnostic of current situation based on investment roadmaps.
  - Prioritize actions.
  - Specific actions for reform of DEXIA, NDC and AID-Bank.
  - Define and start implementation of regulations affecting entry and exit of businesses.
  - Develop investment promotion strategy based on investment roadmap.
- Regulatory framework (Energy sector)
  - Enactment of electricity supply Act and related legislation.
  - Establishment of regulatory commission.
  - Assess large scale energy options.
  - Enactment of alternative energy Act.
  - Consolidate national regulatory framework and transition to regional regulatory regime.
- Regulatory framework (Agricultural exports)
  - Support the establishment and application of standards to enhance agricultural exports.
- Public sector reform
  - Customs reform.
  - Land market regulation.
  - Improve functioning of magistracy to strengthen the commercial justice system.
  - Public sector streamlining (to be elaborated).
- Budgetary and fiscal management
  - Prepare an Action Plan for the improvement of the procurement framework.
  - New FAA submitted to Parliament.
  - Continue strengthening Financial Management.
  - Regional Procurement initiatives.
  - Begin implementation of procurement Action Plan; Continue implementation of procurement Action Plan.
- Labor market reforms
  - Review labor market laws and regulation.
- Social protection reform
  - Cabinet approval of Growth and Social Protection Strategy.
  - Improve targeting of social assistance programs.

### Appendix 4 — Investor Roadmap Process Recommendations
- Employing:
  1. Update labour related legislation;
  2. Improve transparency of work permit process;
  3. Lengthen work permit timeframes;
  4. Streamline and speed up work permit application process; and
  5. Review operation of regime of professional licensing.
- Reporting:
  1. Improve incentives policy;
  2. Create a more automatic incentives allocation process;
  3. Redefine NDC’s role as an Investment Promotion Agency – NDC needs to focus on promoting, targeting and facilitating investment.
  4. Improve information accessibility about company registration procedures;
  5. Improve coordination among company registration agencies; and
  6. Implement new intellectual property rights regulations as soon as possible.
- Locating:
  1. Improve the purchase / lease process for land acquisition;
  2. Develop a land information database, and in particular establish priorities for the phased implementation of a land cadastral system;
  3. Prepare a national physical development plan; and
  4. Improve the capacity of the Physical Planning Division to manage land use policy in Dominica.
- Operating:
  1. Consider the creation of a single Independent Revenue Authority;
  2. Reduce length of the tax assessment process;
  3. Reduce the time it takes for goods to be cleared by Customs;
  4. Develop a system of risk management to reduce the number of inspections;
  5. Provide customs broker and imported training and develop disincentives for repeated errors;
  6. Improve administration of the master list system;
  8. Assist the process of establish domestic accounting standards based on international best practices; and
  9. Evaluate framework and application of bankruptcy law.

### Appendix 5 — Indicative Financial Implications of Priority Poverty Reduction Actions
- Maintain immunisation programme and distribution of primary health care facilities.
  - Existing programmes. Cost: Not applicable.
- Investigate feasibility of health charges with protection for the poor.
  - None unless done by outsider.
  - Cost estimate: US$16,000 (if done by outsider) (2 months at US$8,000 per month).
- Secure participation in OECS Drug Procurement Programme.
  - Would produce net savings. Cost: Not applicable.
- Maintain government pro-poor education assistance programmes.
  - Existing programmes. Current annual costs of TBS, ETF, and SFP are $180,000, $45,000, and $50,000 (for administration only) respectively but these may be inadequate to maintain these programmes and provide negligible scope for their expansion.
- Review distribution of primary schools.
  - None – would be done internally. Likely to result in savings. Cost: None.
- Establish committee on educational assistance programmes.
  - None. Cost: None.
- Prioritise maintenance of water supply and road networks.
  - From existing budgets. Cost: None.
- Establish committee on assistance programmes for vulnerable groups.
  - None. Cost: None.
- HIV/AIDS/ Teenage Pregnancy Awareness Programme.
  - Would need preparation, printing of materials and staff time. Cost: Not assessed.
- Introduce curricula improvements and extend TVET.
  - Some re-training of teaching staff may be required as well as equipment. Cost: Not assessed.
- Introduce courses in life skills education.
  - None unless overseas staff re-training required. Cost: Not assessed but unlikely to be significant.
- Review operation of welfare system.
  - Initial review would cost little but outside expertise would be required to draft new legislation and annual costs of raising PA and increasing eligibility could exceed $10 million annually.
- Initiate research into adolescent and young adult males.
  - Say 50 case studies/ focus groups @ $50 each +$2,500 for analysis and reporting. Cost estimate: $5,000 (over and above staff –time).
- Prepare funding proposal for a facility for young offenders.
  - None for study and proposal but eventual cost would be significant. Cost: Not assessed.
- Improve operation of child maintenance system.
  - None unless additional staff can be hired. Should eventually be self-financing and reduce pressure on PA. Cost: None.
- Reform magistracy operations.
  - None unless additional staff can be hired. Cost: None (no additional staff assumed).
- Establish task force to review legal framework for families and children.
  - None unless outside expertise required for legal drafting. Cost estimate: US$24,000 (if outsider hired) (3 months at $8,000 per month).
- Examine housing land delivery.
  - None for study. Eventual costs would depend on preferred approach and degree of subsidy. Cost: None.

*Source: _cr06289 - Introduction*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06289.pdf_