Socio-Economic Environment in the Rural Areas of the Caribbean Presentation to ACP-EU Meeting Brussels July 4, 2007 Al Binger Caribbean Community Climate Change Centre

The Agricultural Sector in the Caribbean

Agricultural Contribution Less than 10 per cent of their GDP from the agriculture sector but similar to most SIDS, approximately 31 per cent of employment. Agriculture GDP, in fiscal 2005, fell slightly to US$803 million (from US$807.7 the previous year). Agriculture, in general, and sugar in particular, is important in the economies in the region. Based on the proportion of the population in agriculture, Haiti is the most agrarian with 62 per cent. The least agrarian populations are found in Barbados (4 per cent) and Trinidad and Tobago (9 per cent). Countries with intermediate agricultural populations are Cuba (16 per cent), Dominican Republic (17 per cent), Jamaica (20 per cent) and St. Kitts and Nevis (24 per cent). The contribution of the agricultural sector to GDP is largest in Haiti (29 per cent), the Dominican Republic (11 per cent), roughly 6 per cent (in Barbados, Cuba, and Jamaica), and only 1 per cent in Trinidad and Tobago

Less than 10 per cent of their GDP from the agriculture sector but similar to most SIDS, approximately 31 per cent of employment. Agriculture GDP, in fiscal 2005, fell slightly to US$803 million (from US$807.7 the previous year). Agriculture, in general, and sugar in particular, is important in the economies in the region. Based on the proportion of the population in agriculture, Haiti is the most agrarian with 62 per cent.

The least agrarian populations are found in Barbados (4 per cent) and Trinidad and Tobago (9 per cent). Countries with intermediate agricultural populations are Cuba (16 per cent), Dominican Republic (17 per cent), Jamaica (20 per cent) and St. Kitts and Nevis (24 per cent). The contribution of the agricultural sector to GDP is largest in Haiti (29 per cent), the Dominican Republic (11 per cent), roughly 6 per cent (in Barbados, Cuba, and Jamaica), and only 1 per cent in Trinidad and Tobago

Current Situation - 1 Declining quality of life in the majority of cases - especially for agricultural households reflected in: - declining ability for households to educate children, afford heath care - large numbers of rural communities are still without potable water - very poor road infrastructure – resulting in expense transportation cost

Declining quality of life in the majority of cases - especially for agricultural households reflected in:

- declining ability for households to educate children, afford heath care

- large numbers of rural communities are still without potable water

- very poor road infrastructure – resulting in expense transportation cost

Current Situation - 2 - increasing environmental degradation - especially soil erosion and loss of Biodiversity - High levels of un- under-employment - increased in criminal activity - poor attitude of the Youths - increasing pregnancy of among young female

- increasing environmental degradation - especially soil erosion and loss of Biodiversity

- High levels of un- under-employment

- increased in criminal activity

- poor attitude of the Youths

- increasing pregnancy of among young female

Causes for Decline -1 Globalization -- loss of preferential markets for traditional commodities and failure to develop timely replacements Increasing Costs of Inputs relative to agricultural products – energy, chemicals Lack of Leadership Decline in international assistance --more than 5) percent reduction in ODA to SIDS in the decade of the 1990’s

Globalization -- loss of preferential markets for traditional commodities and failure to develop timely replacements

Increasing Costs of Inputs relative to agricultural products – energy, chemicals

Lack of Leadership

Decline in international assistance --more than 5) percent reduction in ODA to SIDS in the decade of the 1990’s

Sugar prices versus Oil prices 1960 – 2005 Source : Secrétariat de la CNUCED

Causes for Decline - 2 National Government support to Agriculture Agricultural Subsidies of the OECD countries Changing weather systems ..a result of increased climate variability Economies of Scale which result in the majority of countries being high cost producers Declining Commodity Prices and international terms of trade

National Government support to Agriculture

Agricultural Subsidies of the OECD countries

Changing weather systems ..a result of increased climate variability

Economies of Scale which result in the majority of countries being high cost producers

Declining Commodity Prices and international terms of trade

Causes for Decline - 3

The End Result This has resulted in a decline in growth from 1.3 percent in the period 1970 through 1980 to negative O.1 during the period 1990 to 2002 The situation would be a lot worse if not for remittances – which in the case of some countries is far and away the largest source of funds.

This has resulted in a decline in growth from 1.3 percent in the period 1970 through 1980 to negative O.1 during the period 1990 to 2002

The situation would be a lot worse if not for remittances – which in the case of some countries is far and away the largest source of funds.

Reversing The Current Situation -1 New paradigm for rural development that give priority to value added rather than commodities – diversification of the rural economy. Making the WTO rules support rather than hinder rural development in SIDS – cannot have the same rule for big as small economies Ending agricultural subsidies that resulting in dumping over production of OECD farmers on the world market Vastly improved system of Governance for SIDS – accountable, reducing corruption and political hand outs

New paradigm for rural development that give priority to value added rather than commodities – diversification of the rural economy.

Making the WTO rules support rather than hinder rural development in SIDS – cannot have the same rule for big as small economies

Ending agricultural subsidies that resulting in dumping over production of OECD farmers on the world market

Vastly improved system of Governance for SIDS – accountable, reducing corruption and political hand outs

Reversing the Current Situation - 2 Increased support for education – changes in the HDR policy of some OECD countries Effective mechanisms for technology transfers Regional rather than individual policies to guide rural development - identifying regional markets –e.g. energy Increased effectiveness of ODA – less flying of the flag, and more listening .. true partnerships Collective action to address climate change

Increased support for education – changes in the HDR policy of some OECD countries

Effective mechanisms for technology transfers

Regional rather than individual policies to guide rural development - identifying regional markets –e.g. energy

Increased effectiveness of ODA – less flying of the flag, and more listening .. true partnerships

Collective action to address climate change

SIDS Rural Development Issues Population Issues Energy Issue Environment Issue Food Issue Water Issue 21st Century

Thank You

Thank You