THE FAO/CARICOM/CARIFORUM FOOD SECURITY PROJECT FOOD SECURITY ASSESSMENT AND TRAINING

Transcription

1 P R O M O T I N G CARICOM/CARIFORUM F O O D S E C U R I T Y (PROJ E C T GTFS/ RLA/141/ITA) (FAO Tr ust Fund f or Food Security and Food Safety Governme nt of Italy Contributi on) THE FAO/CARICOM/CARIFORUM FOOD SECURITY PROJECT FOOD SECURITY ASSESSMENT AND TRAINING OVERVIEW VULNERABILITY AND FOOD NUTRITION SECURITY IN THE CARIBBEAN AUGUST 2007

2 OVERVIEW VULNERABILITY AND FOOD AND NUTRITION SECURITY IN THE CARIBBEAN THE CARIBBEAN FOOD AND NUTRITION INSTITUTE In collaboration with THE FOOD AND AGRICULTURE ORGANIZATION Funded by THE ITALIAN COOPERATION, GOVERNMENT OF ITALY August, 2007

3 TABLE OF CONTENTS List of Tables... ii List of Figures... iii List of Boxes... iv Acknowledgements...v Executive Summary...1 I. Introduction and Background...6 I.1 Geography and Demography...6 I.2 Economic Situation...9 Page II. Situation Analysis of Food Security in the CARIFORUM Region...15 II.1 Food Availability...16 II.2 Accessibility...21 II.3 Consumption/Utilization...30 III. Factors Impacting on Vulnerability...36 III.1 Economic Factors...37 III.2 Social Factors...41 III.3 Environmental Factors...43 IV. Regional Frameworks & Policies to Reduce Vulnerabilities...48 IV.1 Regional Frameworks...48 IV.2 Policies Impacting on Vulnerabilities...56 V. Conclusions...65 References...69 Appendices...75 Appendix 1: CARIFORUM Food Availability...76 i

4 List of Tables Table I.1: Selected Economic Indicators CARIFORUM Countries...8 Table I.2: Structure of Economies CARICOM Countries...10 Table I.3: CARIFORUM: Rural, Agricultural and Economically...11 Active Population in Agriculture, 2006 Table I.4: CARIFORUM Annual Real Growth Rates of Gross Domestic Product...12 Table I.5: CARIFORUM Ratio of Gross External Debt to Exports of Goods...14 and Services Table II.1: CARIFORUM Food Availability (Calories/Grams)...17 Selected Periods Table II.2: CARIFORUM Food Imports (US$ 000)...19 Table II.3: CARIFORUM Food Deprivation/Undernourishment...23 Table II.4: Population Living Below the Poverty Line...26 Table II.5: Undernutrition (Weight for Age) in Selected CARIFORUM Countries...31 (<5 Year Olds) Table II.6: Micronutrient Deficiency (Anaemia) in Selected Selected...32 CARIFORUM Region Countries Table II.7: Main Causes of Death in the Caribbean, 1980, Table III.1: Food Imports as a Ratio of Total Exports...37 Table III.2: CARIFORUM Import Concentration and Diversification...39 Table III.3: CARIFORUM Export Concentration and Diversification...39 Table III.4: CARIFORUM Top Five Agricultural Commodity Exports (%)...40 Table III.5: CARIFORUM Countries According to Commonwealth...41 Vulnerability Index Table III.6: Top 20 Natural Disasters in the Caribbean by Magnitude of...44 Total Losses Page ii

5 List of Figures Page Figure I.1: CARIFORUM Total, Rural and Urban Population, Selected Years...8 Figure I.2: Caribbean Real GDP Growth, (2000 prices)...12 Figure I.3: CARIFORUM Relative Ranking on Macroeconomic Performance...13 Figure II.1: CARIFORUM Food Trade Balance, Figure II.2: Figure II.3 Percentage of Minimum Wage Required to Purchase a Well Balanced Low-Cost Diet in 2997 and 2004 Selected Countries World Regions: Gini Coefficient, (Concentration...27 of Per Capita Income, by deciles) Figure II.4: Prevalence of Obesity (Body Mass Index >30) by Age Group...34 (Selected Countries) iii

6 List of Boxes Box 1: Social Safety Net Programs in the Region...25 Box 2: Food Aid to Haiti...28 Box 2: Food Consumption Patterns in Guyana and Barbados...34 Box 3: CARIFORUM Environmental Issues...45 iv

7 Acknowledgements This report was prepared in support of the food security assessment work conducted by the FAO Caribbean Regional Food Security Programme and in particular the project Improving Food Security in CARICOM/CARIFORUM countries (GTFS/RLA/141/ITA). The project started in late 2004 and is being implemented by FAO in collaboration with the Caribbean Community (CARICOM/CARIFORUM) Secretariat with the financial support of the Government of Italy. The Report was completed with assistance from the staff of the Caribbean Food and Nutrition Institute (CFNI) with critical contributions from other persons to whom we wish to express our gratitude and appreciation, including Christian Romer Løvendal and Kristian Jakobsen (Food and Agriculture Organization) and Charles Carmichael, consultant (FAO/Regional Planning Management Unit (RPMU), for extensive comments and suggestions on various drafts of this report. v

8 EXECUTIVE SUMMARY This Report provides a general overview of the current status of food and nutrition security in the CARIFORUM Member States (CARICOM 1 countries and Dominican Republic). It identifies general trends and differentials across countries, and assesses factors that contribute to the vulnerability of the Region 2 to food insecurity. The Report also reviews policies that are synergistic, neutral and/or contradictory to the imperatives of maintaining food and nutrition security in the Region. The discussion in this Report on food and nutrition security is mindful of the development challenges that CARIFORUM countries face in terms of their small size, vulnerability to natural disasters and a challenging new economic environment characterized by, inter alia, international competitiveness, loss of preferential markets for traditional agriculture and a rules-based approach to agriculture policy. Moreover, although poverty rates have declined over the years, they remain high for several countries, including Haiti, Guyana, the Dominican Republic and some of the Organization of Eastern Caribbean States (OECS) countries. Income distribution in the region is highly unequal, with some countries among the most unequal in the world. These challenges are further complicated by high international debts in many countries, which divert resources away from government investments, especially social programs, and place severe pressures on the fiscal side of government policy. One of the main challenges of doing a regional report relates to country specificity. Notwithstanding many areas of uniformity, the region comprises a very diverse set of economies that does not permit easy generalizations. In these cases, every effort was made to articulate the specifics where possible. The report draws heavily from, but also adds to the body of extensive research available on the region. The emphasis on nutrition and on the access dimension of food security that this report takes is a timely contribution to the past and current regional position on this topic which reflects 1 CARICOM countries include: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, Montserrat, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. 2 For purposes of this Report, Region refers to CARIFORUM countries unless otherwise specified.

9 a penchant for the supply side, sometimes unmindful of the links between food, health, agriculture and other sectors of the economy. As the report shows, this has had deleterious effects on the health and nutrition status of the region s population, with the prevalence of nutrition-related chronic diseases which are now the main public health problem in the region. Beyond this and drawing from various strands of the literature, the report presents a holistic and integrated view of the critical factors that combine to influence food and nutrition security in the region. CARIFORUM countries are recognized as Small Island Developing States (SIDS) by the United Nations. Their special characteristics make these countries particularly vulnerable to food insecurity. Factors and conditions impacting on vulnerability relate to economic, social and environmental. Economic vulnerability includes, inter alia, a high degree of openness of the economies, indicated by the high proportion of total trade (imports plus exports) in GDP, volatility of income and high concentration of few commodities (i.e., limited diversification) ratios in exports and imports. Social vulnerability in CARIFORUM countries takes expression in several forms, including the brain drain, educational performance and health services that have not kept pace with the requirements of a changing region and issues related to crime, unemployment and HIV/AIDS. CARIFORUM countries are also prone to natural hazards that are frequent and which inflict loses in terms of deaths and significant damages to property and income generating assets. The engine of growth in CARIFORUM countries has shifted over the years from agriculture to services. However, agriculture is still an important sector in these economies as a source of food, export earnings and livelihoods for relatively large proportions of the regional population living and in rural areas. However, the region is no longer being insulated from the changes occasioned by globalization and trade liberalization. Preferential trading arrangements are being replaced by open competition and rules-based trading arrangements. In addition, more stringent enforcement of regulations in trade related areas, such as, intellectual property rights and food standards, place significantly more demands on the weak institutional and resource capacity the entire CARIFORUM region. 2

10 This report poses food security as an integral part of a process of nutrition and health development which embodies several major components food availability, household access, nutritional adequacy (consumption/biological utilization and care practices) and the stability of the three components. Regionally total food caloric availability (calories/caput/day) has been increasing since the 1960s, and is in excess of Recommended Population Goals (RPG). The supply of fruits and vegetables, though increasing sharply over successive decades, consistently fell below RPG throughout the review period, with only a few countries in excess of RPG. Fats and sweeteners availability is above RPG and this is a concern in the region given increasing prevalence of overweight and obesity. Food imports constitute an important source of food availability. The region s food import bill was US$1.553 billion in 1995 and US$2.409 billion in 2004, an increase of 55.1 percent in four years. With the exception of Belize and Guyana, the region is a net importer of food. In terms of accessibility, several core indicators were analyzed. These include hunger, minimum wage, unemployment, poverty and income inequality, social safety nets and food aid. Hunger or food deprivation or undernourishment increased in Dominica and the Dominican Republic and remained fairly uniform for Barbados over the years Although food deprivation decreased for all other countries, the total number of persons is relatively high million persons were undernourished in , in and in Estimates of a low cost nutritionally balanced basket of foods in relation to the minimum wage suggested increased accessibility to food in countries for which data were analyzed. However, unemployment, poverty and income inequality in the region could counter to this general finding. Official unemployment among thirteen of CARIFORUM countries between 2000 and 2005 ranged from 8 to 23% and Gini coefficients indicated relatively high levels of income inequality in the region, some among the highest in the world. Traditionally, but especially during the period of structural adjustments in the region, social safety nets have been an important public policy mechanism to assist poor and vulnerable groups. Important lessons from social safety net programs include: (i) Need to minimize administrative costs and leakages of benefits of programs; (ii) Conditional transfers appear to have greater outcome effects compared to unconditional transfers; (iii) Need for effective 3

11 targeting; and finally (iv) Ultimately, governments need to create the structural underpinnings of the economy especially employment opportunities that will eliminate the need for many social safety net programs. Undernutrition exists in the region but not as severe as in other parts of the world. For most countries in the region for which trend data are available the rates of undernourished children under five years old have been decreasing over the past decade. Anaemia among children is the most common micronutrient deficiency in the region. Relatedly, nutrition related noncommunicable diseases (NCD s) diabetes, high blood pressure, stroke, heart diseases, and some forms of cancers are the major public health problems and account for most deaths in the region. A main risk factor in these diseases is obesity, which is prevalent in the region. The highest proportion of obesity is among adults 35 years and older. However, lower age groups also show obesity rates that range between 8-20 percent. Surveillance data on children and adolescents also show that children overweight and obese account for up to 15% of this group in various countries. The information presented in this Report leads to the conclusion that food security in the region is compromised not by lack of food availability, but by inadequate access to foods and dietary patterns that adversely impact on nutritional status. The food, health and nutritional concerns which have been raised in this paper were brought into sharp focus by data regarding the nutritional deficiencies, diet imbalances and the general deteriorating health status of large proportions of people in the region, especially people who are in vulnerable situations. Most CARIFORUM countries are pursuing stringent monetary and fiscal policies out of their own volition with the expectation to reactive growth. A ranking of selected CARIFORUM countries according to their overall macroeconomic performance shows that the top performers were Trinidad and Tobago, the Bahamas, and the Dominican Republic with another five countries recording fairly acceptable scores. While the achievement of macroeconomic stability is a laudable goal, one troubling development in the CARIFORUM countries is their relatively high public debt. This has adverse consequences for fiscal policies and especially social programs that are needed in the context of high unemployment and poverty 4

12 Several regional frameworks have been advanced that have potentials to respond to these changes as well as other areas of threat to food security. These include the Regional Food Plan, the Regional Transformation Program in Agriculture, the Regional Negotiating Machinery, the CARICOM/FAO Regional Special Program for Food Security (SPFS), the Jagdeo Initiative and the Caribbean Cooperation in Health (CCH) Initiatives. Several of these programs are agricultural-related and have been designed to increase regional food security, strengthen agriculture s own development, and enhance the sector s capacity to contribute to national and regional development but with various successes. Finally, the Report suggests some key programming and policy options to address the food and nutrition problems in the region. The suggested actions should not be seen as quick-fix solutions but as comprehensive and long-term in nature and involving the participation of all stakeholders, including the private sector and civil society and partnerships among regional and international agencies. 5

13 CHAPTER I INTRODUCTION & BACKGROUND This Chapter presents background information on the geography, population, and socioeconomic conditions of CARIFORUM countries as a context for the analysis of the food security status in the region. The countries are quite diverse in terms of population size, ethnic composition, social and economic development, income per capita, and languages. However, they also share important common features: with the exception of Haiti and Dominican Republic, they are recently independent states, primarily small island economies, largely integrated into the world economy (owing to high degree of trade openness, high level of migration), and vulnerable to natural disasters. They also display low population growth rates (at around one-third a percent), high unemployment rates, serious youth problems, and high HIV/AIDS incidence. Following this introductory chapter, Chapter II provides a situational analysis of food security in the region, focusing on the main components of food security, that is, availability, accessibility, utilization and stability. Chapter III elaborates on the conditions and factors that impact on the vulnerability in the region. These are organized according to economic, social and environmental factors. Chapter IV discusses the regional responses and policies to address the vulnerabilities identified. The final chapter, Chapter V, draws some key conclusions which are informed by the issues discussed in the previous chapters. I.1 Geography and Demographic Background Geography The CARIFORUM region occupies a total area of 510,713 km 2 and comprises three mainland territories (Guyana, Suriname and Belize) and thirteen island states in the Caribbean Sea (Table I.1). Guyana and Suriname together account for 74 percent of the total land area, followed by Dominican Republic (10 percent), Haiti (five percent) and The Bahamas (three percent). The countries are predominantly small open economies, heavily dependent on a narrow range of activities for export earnings and employment generation (agriculture, tourism and mining), and are susceptible to external shocks (natural disasters and impacts from changes in the world 6

14 economy). Natural resources are found in some of the countries. Jamaica has extensive deposits of bauxite and gypsum, Suriname and Guyana have bauxite/alumina industries, and Trinidad and Tobago has petroleum, pitch and natural gas. Small, non-commercial deposits of manganese, lead, copper, and zinc are found in most of the islands. CARICOM countries also have sovereign and jurisdictional rights over most of the Food and Agriculture (FAO) Fishing Area No. 31, viz., The Caribbean Sea and the central Atlantic region pertinent to CARICOM, which encompasses an area of 14.5 million Km 2 (Dundas and Mitchell, 2004). This area is endowed with fisheries and other marine life and possesses favorable strata for oil, gas and other mineral resources. Given this range of the region s resource endowment, the view has been expressed that no other regional economic entity of comparable size to CARIFORUM can boast the array of resources such as bauxite/alumina, petroleum, natural gas, gold, diamond, agriculture, forestry and marine resources, tourism and other services infrastructure, including efficient offshore financial services, and the human resources of the region which are comparatively well developed (Benn, 2007). Demography In 2004, the estimated total population of the region was 23.8 million, 88% of which lives in four countries (Haiti, Dominican Republic, Jamaica and Trinidad and Tobago (Table I.1). Figure I.1 shows that the aggregate CARIFORUM urban population has increased continuously since the 1960s and has overtaken rural population levels around The rate of increase in the urban population since the early 1980s has exceeded that in earlier periods. While in the aggregate the urban population in CARIFORUM countries is above that of the rural population, there are nine countries in which the rural population exceeds that of the urban. These countries are Antigua and Barbuda, Belize, Dominican Republic, Grenada, Guyana, Haiti, Montserrat, and St. Kitts/Nevis. In Jamaica, the urban population is only slightly above that of the rural. 7

15 Table I.1: Selected Economic Indicators CARIFORUM Countries. States Larger Island States Dominica Republic Haiti Jamaica Trinidad/Tobago Smaller Island States Antigua/Barbuda Bahamas Barbados Dominica Grenada Montserrat St. Kitts & Nevis St. Lucia St. Vincent/Grenadines Mainland States Belize Guyana Suriname Population ( 1000) (2004) 8,800 8,400 2,600 1, Area (km 2 ) (2004) 48,730 27,750 10,900 5, , , , ,000 GDP (current Prices) (US$M) (2004) * * 4815* * * Aver. Annual Real GDP Growth (%) ( ) n.a Per Capita GNI (Atlas) (US$) (2004) 2, ,300 9,070 10,130 15,000 8,670 3,670 3,770 3,400 7,750 4,410 3,400 3, ,230 Aver. Annual Per Capita GNI Growth (%) ( ) Total 23, , , Source: World Bank. September Median income. 2 The Caribbean. * 2005 data from CIA World Fact Sheet: September n.a Figure I.1: CARIFORUM Total, Rural and Urban Population, Selected Years ('000) Rural Urban Total Source: FAOSTAT. (2007). 8

16 Recent population studies indicate that the region is in a demographic transition because of the low dependency ratio (i.e., the low ratio of the number of children and older adults as a proportion of the number of working persons) in the population (UN, 2005a). This situation is variously described as a demographic dividend, demographic bonus, or demographic window of opportunity, because the population is optimally placed to benefit from economically productive investments given the high concentration of economically active age groups in the population. However, while there is still time for the region to take advantage of this bonus, the rapid fertility reduction in the region means that this transition period is expected to end faster than similar transitions experienced by countries in Europe and North America (UN, 2005a). I.2 Economic Situation Structure of the Economies. Table I.2 shows the sectoral composition of Gross Domestic Product (GDP) in CARIFORUM countries. The engine of growth in CARIFORUM countries has shifted over the years from agriculture to services. The services sector includes wholesale and retail trade; hotels and restaurants; transport and communication; financial intermediation; real estate, renting and business services; community, social and personal services; and general government services. With the exception of Guyana, services contribute in excess of 50% to CARIFORUM GDP, reflecting the continued importance of tourism and related activities and government services. The countries most dependent on tourism include Antigua and Barbuda, Barbados, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines. Industry is the second major contributor to GDP. This sector includes manufacturing (food products and beverages; textiles, clothing and footwear; other manufacturing), electricity and water supply, mining and construction. Levels of industrialization vary across the countries. The relative contribution of the industrial sector to GDP shows increasing trends for some countries (Antigua and Barbuda, Dominica, Dominican Republic, Grenada, and Trinidad and Tobago), 9

17 Table I.2: Structure of Economies CARIFORUM Countries Countries Antigua/ Barbuda Agriculture Industry Services Belize Agriculture Industry Services Barbados 2 Agriculture Industry Services Dominica Agriculture Industry Services Dominican Republic Agriculture Industry Services Grenada Agriculture Industry Services Guyana Agriculture Industry Services Countries % of GDP % of GDP Haiti Agriculture na na na Industry na na na Services na na na Jamaica Agriculture Industry Services St. Kitts/Nevis Agriculture Industry Services St. Lucia Agriculture Industry Services St. Vincent/Grenadines Agriculture Industry Services Suriname 2 Agriculture Industry Services Trinidad/Tobago Agriculture Industry Services Source: World Bank. September, 2006; IMF or latest available data. 2 Data for Suriname are for the years 2000, , respectively; for Barbados, data are for 1999, 2000, , respectively; estimated data for Haiti (2004), see less change for Barbados, St. Kitts/Nevis and St. Lucia, and decreasing trends for Belize, Guyana, Jamaica and Suriname (Table I.2). Since the 1950s, light manufacturing, mining, and processing of foods and other commodities have been used to bolster employment. Although these sectors have been important contributors to the economies of individual states, only in four cases does the relative contribution of industry exceed 25 percent of GDP (Table 1.2). On average, agriculture makes up about 10 percent of value added in CARIFORUM countries, down from 13 percent in With the exception of Belize and Guyana, this reflects the relative importance given to services and industry and the decline in traditional products such as 10

18 bananas and sugar. Some of the smaller states, including St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Dominica to a lesser degree, have reduced their dependence on agriculture the most. However, agriculture remains an important economic sector in Belize, Dominica, Dominican Republic, Haiti and Guyana where it accounts for more than 15 percent of GDP. Moreover, agriculture is still an important source of livelihood, accounting on average for about 20 percent of the economically active population in agriculture (Table I.3). Table I.3: CARIFORUM: Rural, Agricultural and Economically Active Population in Agriculture, Countries Rural Population (%) Agricultural Population (%) Economically Active Population in Agriculture (%) Antigua & Barbuda Bahamas Barbados Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica St. Kitts & Nevis St. Lucia St. Vincent/Grenadines Suriname Trinidad & Tobago Source: FAO (2006). While there has been a relative shift in the structure of CARIFORUM economies towards services, significant proportions of the populations still reside in the rural sector and agriculture is still a main contributor to employment and value added in at least 12 of the 15 countries. CARIFORUM Growth Performance CARIFORUM countries achieved relatively strong real growth rates in GDP over the years (Table I.4). The weighted real growth rate in the Caribbean declined progressively in the late 1990s to a low of 1.9 % in 2001, then moved on an upward trend reaching an estimated 6.8% in 2006 (Figure I.2). Trinidad and Tobago and Antigua and Barbuda recorded the highest growth rates in 2006, the former continuing a decade-long boom driven by its energy production and the 11

19 latter reflecting strong demand for tourism and related services and investments in construction related to the Cricket World Cup. Haiti, Guyana and Jamaica showed some growth improvement in 2006 compared to However, the region s diversity, both in resource endowment and Table I.4: CARIFORUM Annual Real Growth Rates of Gross Domestic Product Simple Antigua & Barbuda Bahamas Barbados Belize Dominica Dominica Repub Grenada Guyana Haiti Jamaica St. Kitts/Nevis St. Lucia St. Vincent/Grenadines Suriname Trinidad & Tobago Caribbean Source: ECLAC (2006). Prices are in 2000 dollars. a Preliminary figures. Country a Average Figure I.2: Caribbean Real GDP Growth, (2000 prices) Growth Rate 5 % Trend Line Source: Data from ECLAC (2006). 12

20 evolution of economic activity, renders it difficult to compare growth achievements. Thus, a four per cent growth rate in the Bahamas is considered unparalleled according to the Prime Minister (ECLAC, 2006); in Barbados it represents a slight reduction from the previous two years; in St Vincent and the Grenadines it is only just above average, whereas Jamaica s estimated 2.5 per cent growth in 2006 reflects the best performance in 15 years and motivated the announcement that the economy is out of the doldrums ; the same performance in Belize is disappointing against several years of very high growth (ECLAC, 2006). Most countries are pursuing these stringent monetary and fiscal policies out of their own volition with the expectation to reactive growth (World Bank, 2005b). A recent World Bank (2005) study ranked selected CARIFORUM countries according to their overall macroeconomic performance 1 over the period as shown in Figure I.3. The top performers are Trinidad and Tobago, the Bahamas, and the Dominican Republic (before the recent crisis). The three weakest performers are St. Kitts/Nevis, Jamaica and Dominica. Figure I.3: CARIFORUM Relative Ranking on Macroeconomic Performance Ranking Trinidad- Tobago Bahamas Suriname Dom. Republic Barbados St. Vincent- Grenadines Belize Antigua- Barbuda St. Lucia Guyana Grenada Jamaica Dominica St. Kitts- Nevis Source: World Bank (2005b). 1 The index of macroeconomic performance combines the following variables: economic growth, total public debt, fiscal balance, inflation. Countries are ranked from 1 to 15 in each category, with the best performers receiving the highest score. The score are then aggregated for each country and then normalized so that the scores for all countries fall between 1 and

21 One troubling aspect of macroeconomic performance in the CARIFORUM countries is the relatively high public debt which has adverse consequences for fiscal policies. Table I.5 shows the ratio of gross external debt to exports of goods and services. These ratios are high, and for several countries, the ratio has increased significantly in the recent period. Table I.5: CARIFORUM Ratio of Gross External Debt to Exports of Goods and Services. Countries\Years The Caribbean Antigua/Barbuda Bahamas Barbados Belize Dominica Dom. Republic Grenada Guyana Haiti Jamaica St. Kitts/Nevis St. Lucia St. Vincent/Grenadines Suriname Trinidad/Tobago Source: World Bank (2005b). 14

22 CHAPTER II SITUATION ANALYSIS OF FOOD SECURITY IN THE CARIFORUM REGION This chapter first presents a definition of food security and highlights key issues that must be taken into account in any discourse on food security in the Region. Data are then presented on the key components of food security, namely food availability, accessibility and consumption/utilization. Food and Nutrition Security In this paper, food security transcends the narrow vision of both food sufficiency and the physical availability of food supplies over time and space, to include the socio-economic and nutritional aspects of having adequate economic and physical access to safe and nutritious food supplies (i.e., both food entitlements, that is, prior to dietary intake, and the body s physiological need of food). Food security defines a situation where: all people at all times, have physical, social and economic access to sufficient, safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life. (World Food Summit, 1996). From this perspective, therefore, food security is an integral part of a process of nutrition and health development and embodies several major components food availability, household access, nutritional adequacy (consumption/biological utilization and care practices) and the stability of the three components. This definition of food security is particularly relevant to Caribbean countries that are currently experiencing rapid dietary/nutritional, epidemiological and demographical transitions. The dietary/nutritional transition is observed in the shift from diets based on indigenous staples, local fruits, vegetables, and legumes, to more varied energy-dense diets based on more processed 15

23 foods/beverages, more of animal origin, more added sugar, fats and often more alcohol. With respect to the epidemiological transition, nutrition related chronic non-communicable diseases such as diabetes, high blood pressure, stroke, heart diseases, and cancer have replaced malnutrition and infectious diseases as the major public health problems. Further, the burden of disease, disability, and premature death has shifted from young children to adults in the productive years of their life. Unbalanced diets and a sedentary lifestyle have increased the prevalence of chronic non-communicable diseases, even among the poor. For the past two and a half decades there has been an increase in the prevalence of obesity throughout the region, principally in adults, but also to some extent in adolescents. Associated with obesity is the concomitant increase in nutrition-related chronic diseases. This has been accentuated by the demographic shifts towards urbanization. As people move to urban areas several factors combine to create different patterns of food supply and demand. These include, inter alia, urban occupations, population concentrations, transportation networks, food marketing systems, and consequently, food supplies, diets and body composition change (Ballayram et. al., 2002). II.1 Food Availability This analysis of food availability in CARIFORUM utilizes food balance sheet data of the Food and Agriculture Organization (FAO). These food balance sheets present a comprehensive picture of the trends in a country s overall food supply for a given period. The FAO data are reported at different levels of aggregation and in several forms and units (major food groups, specific foods, imports, exports, domestic uses, macronutrients, total calories, calories/caput/day, grams, etc). For purposes of this analysis, data from three-year averages for each of the five decades over the period are analyzed as representative samples of food supply over this period. In this context, food supply is defined as: domestic production + (imports exports) + changes in stocks. It is important to note that this supply represents the amount of food that is available for potential domestic consumption. The amount of food actually consumed may be lower than shown in the food balance sheet depending on such factors as distribution, plate-wastes, losses in food preparation, etc. In other words, it reflects food security mainly at the aggregate national level. 16

24 Regional Level Data The data indicate the following food availability patterns for the region as a whole (see Table II.1, below and Figures 1-7 Appendix 1): Total food caloric availability (calories/caput/day) has been increasing since the 1960s, and is in excess of Recommended Population Goals (RPG). Carbohydrates, protein, fats and sweeteners have been increasing and are all above RPG. The supply of fruits and vegetables, though increasing sharply over successive decades, consistently fell below RPG throughout the review period. The supply of staples (cereals plus starchy roots) has been increasing, but is lower than the RPG. The bulk of the available fruits and vegetables were produced within the region, while most of the available staples (predominantly cereals) were imported. Finally, except in , most of the available sweeteners were locally produced. Table II.1: CARIFORUM Food Availability (Calories/Grams), Selected Periods. Availability 1 (Calories/caput/day) Food Availability RPG Surplus (+) or Deficit (-) relative to RPG (%) Total Food Calories 2,933 3,071 2,250 36(+) Carbohydrates 1,766 1,825 1,238 47(+) Protein (+) Fats/Oils (+) Fruits/Vegetables (-) Sweeteners (+) Staples (-) 1 Calories/caput/day; 2 Recommended Population Goal; 3 Staples=Cereals + Starchy Roots Source: FAOSTAT. August

25 Country Level Data Looking at individual country levels for the two more recent time periods (viz., and ) there are both similarities with, and variations from, the patterns of food availability observed for the region as a whole. All CARIFORUM countries have met the RPGs for carbohydrates and sweeteners. With the exception of Haiti, all countries have met the RPG for total food calories and fats. In addition, only the Dominican Republic and Haiti failed to meet the RPG for protein. In the case of fruits and vegetables, only six CARIFORUM countries (The Bahamas, Belize, Dominica, Jamaica, Grenada and St. Lucia) were able to meet the RPG. Moreover, with the exception of Barbados and St. Kitts/Nevis, the greater proportion of fruits and vegetables available are from domestic production. With respect to staples, the following seven countries do not meet RPG: Antigua and Barbuda, Barbados, Dominica, Dominican Republic, Grenada, St. Kitts/Nevis and St. Lucia. With the exception of Guyana, Belize, and Suriname, all the CARIFORUM countries import a larger proportion of their staple supply. Regional Food Imports Food imports are an important source of food availability, especially for countries with limited land resources. Table II.2 shows that the region s food import bill was US$1.553 billion in 1995 and US$2.409 billion in 2004, an increase of 55.1 percent in four years (FAO, 2005b). At the country level, the value of food imports appears to correlate positively with relatively large population size (Jamaica, Dominican Republic, Haiti) and national wealth (Bahamas, Barbados and Trinidad and Tobago). With the exception of the Bahamas, food imports in the other countries followed a stable and slightly upward trend. The Bahamas food imports began to increase significantly in 2004 following a previously declining trend. Two factors appear to drive this increase in food imports in the Bahamas: increase tourist arrivals and the population increase from inflows of refugees from Haiti. The ratio of food imports to total exports for the region averaged 16 percent over the period and has been trending slightly downward. There were some variations to this trend among the countries. For example, Guyana, Dominican Republic, Antigua and Barbuda, and 18

26 Table II.2:CARIFORUM Food Imports (US$ 000, current prices) Countries Antigua/ Barbuda 16,809 24,422 19,539 21,288 23,549 21,697 Bahamas 157, , , , ,769 Barbados 85,609 96, , , , ,115 Belize 34,079 60,465 37,610 38,764 39,391 43,230 Dominica 16,247 23,167 21,223 20,553 21,590 22,288 Dominican Republic 274, , , , , ,459 Grenada 22,443 32,442 26,851 35,411 29,717 24,150 Guyana 52,503 65,437 73,101 74,919 68,341 71,746 Haiti 268, , , , , ,233 Jamaica 259, , , , , ,671 Montserrat na 3,256 3,173 3,279 2,917 2,793 St. Kitts/Nevis 15,111 27,129 24,968 23,907 25,504 30,000 Saint Lucia 49,314 66,474 59,758 56,244 66,607 41,234 St. Vincent/Grenadines 25,847 23,201 25,275 37,502 36,106 41,872 Suriname 50,428 69,569 71,979 61,482 61,158 69,267 Trinidad/ Tobago 225, , , , , ,501 Total 1,552,718 2,059,874 2,124,214 2,209,981 2,158,587 2,409,153 Source: FAOSTAT. July, Suriname had smaller ratios of food imports to total exports than the overall average for the region and the ratios were trending downward. Other countries had higher ratios than the overall average, and trending upwards such as St. Vincent and the Grenadines (124 percent in 2004 up from 55 percent in 2000) (FAO, 2005b). With respect to food trade (expressed as the ratio of the value of agricultural imports to agricultural exports), the region as a whole showed a negative trade balance (i.e., total agricultural imports greater than total agricultural exports), of 41 percent over the period (Figure II.1). There were some variations among countries with respect to this negative food trade balance. First, only two countries (Belize and Guyana) showed positive food trade balance. Second, the gap between food imports and agricultural exports is very high (ranging percent) for four countries (Antigua and Barbuda, Bahamas, Haiti and St. Kitts/Nevis), and high to moderate (ranging percent) for the other countries (FAO, 2005b). 19

27 Figure II.1: CARIFORUM Food Trade Balance, US$ Billion Agri Imports 0.5 Agri Exports Source: FAOSTAT. July, The inter-temporal dimension of food security requires the stability of food availability, accessibility, and consumption/utilization. In terms of food availability, total food calories in the region and in individual countries have been increasing over the years. However, several factors combine to influence the stability of food availability in the region. These include: Seasonality and natural disasters: During the rainy season food production is affected by pest and disease infestations, flooding and glut on the market for vegetables. On the other hand, during the dry season, production is affected by lack of water and increased cost of production due to irrigation use. Hurricanes, major floods and droughts can adversely affect food availability. Moreover, the region does not have a tradition of storing large food stocks. Dependence on food trade: As indicated above, with the exception of Belize and Guyana, CARIFORUM countries are net food importers. Since many of the region s economies depend on agriculture for export earnings, and given the losses of preferential markets, this is a potential for reduced capacity to produce and to earn foreign exchange to finance food imports. Moreover, the region s participation in an increasing global economy exposes them to potentially severe disruption in trade flows, and consequently import earnings and food imports. Terrorist activities (e.g., such as 9/11 ), the avian flu, mad-cow diseases, etc are examples of events triggering such shocks. 20

28 Scarcity of labor and an aging farmer population: People, especially the young, are not attracted to working on farms due to the low returns and wages. With an aging farmer population (estimated average at years) this poses a serious threat to stability of food availability. Praedial Larceny: Throughout the region, this is a serious deterrent to food production. Lack of Capital for Agricultural Activities: Because of the risks and uncertainty associated with agricultural enterprises, most of the financial institutions are not accommodating to this sector. II.2 Accessibility Access is ensured when all households and all individuals within those households have sufficient resources to obtain appropriate foods for a nutritious diet in accordance with their needs and preferences. It is dependent on the level of household resources capital, labour, and knowledge and prices. More important is the ability of households to generate sufficient income, which, together with own production, can be used to meet food needs. At the national level evidence suggests that the nutritional profiles of most CARIFORUM countries, while fairly good, can be improved, since pockets of malnutrition and micronutrient deficiencies exist in several countries. This implies that accessibility and utilization/consumption are critical elements for food security in the region. For purposes of this report, accessibility by households and individuals to food in the region will be gauged by relying on information on the following: Hunger/food deprivation (undernourishment) The proportion of the minimum wage to purchase a minimum cost nutritious basket of food Unemployment, poverty and income inequality Social safety net programs; and Food aid 21

29 The food balance sheet data discussed in section II.1 suggest adequate availability of food energy at the national level, but high levels of poverty and income inequality constrain access for some groups of the population in each country. Moreover, although food balance sheets for the region indicate that food availability is above recommended population goals, this is not a cause for complacency. First, food insecurity can exist side by side with ample availability of food. Second, scholars who have compared actual household and individual food intake data with food balance sheet data, estimate that the latter over-estimate food availability by percent over observed actual consumption levels (Popkin, Horton and Kim, 2001). Third, food balance sheet data do not measure food distribution across geographic regions or even among members of the same households. Finally, trade liberalization, and its attendant reduction of trade barriers, accent on competitiveness, and removal of preferential quotas, all with possible negative impacts on Caribbean agriculture, poses major concerns for policy makers throughout the region. So although national food insecurity has declined (in the sense that food is available at the national level to meet Recommended Population Goals), the threat of its resurgence may still be lurking. Hunger/Food Deprivation/Undernourishment Hunger and poverty represent major challenges in the Caribbean, and have long been recognized as an important policy priority of governments in the region. The problem of hunger, as an extreme form of poverty, is not as severe in the region as in many other parts of the world. The adoption of, and commitment to, the Millennium Development Goals (MDGs) by Caribbean governments has in some cases strengthened governments efforts to address poverty and hunger (Benn, 2005) 1. Studies have been conducted to evaluate the progress made towards meeting the MDG 1 in Caribbean by The general conclusion for the English speaking Caribbean is that the goal of halving poverty and hunger by the year 2015 can be met with the required political will and the adoption of appropriate policies aimed at promoting economic growth and reducing income inequality (UNDP, 2004; Downes, 2006). In the case of the Haiti it is unlikely that the hunger 1 Hunger and poverty are being monitored by MDG 1 Eradicate extreme poverty and hunger. The MDG 1 has two targets, viz., Target 1(Halve between 1990 and 2015 the proportion of people whose income is less than 1 US$ per day), and Target 2 (Halve between 1990 and 2015 the proportion of people who suffer from hunger). 22

30 and poverty targets of the MDG1 will be achieved, whereas for the Dominican Republic it is likely that the poverty, but not the hunger target will be met (UNDP, 2004). However, these studies lament that monitoring the progress of MDG 1 in the region is severely constrained by lack of adequate, reliable and timely data (UNDP 2004; Downes, 2006). The FAO measure of hunger or food deprivation (FAO, 2003), (also referred to as the prevalence of undernourishment), seeks to capture the proportion and number of people whose food access is inadequate in terms of dietary energy requirement norms. Persons with food consumption below the energy requirement norm is considered undernourished ("underfed"). The measure is intended to reflect the role of both aggregate food supplies and household incomes in determining food insecurity. The FAO measure focuses on hunger rather than undernutrition (or malnutrition), which has a broader nutritional connotation. Table II.3 shows the percentages and numbers of persons who were undernourished in three selected periods in CARIFORUM countries. Food deprivation increased in Dominica and the Dominican Republic and remained fairly uniform for Barbados over the three periods. For all other countries, food deprivation decreased, although the total number of persons is relatively high. For example, million persons were undernourished in , in and in Table II.3: CARIFORUM Food Deprivation/Undernourishment Country % (000) % (000) % (000) Bahamas Barbados <2.5 na <2.5 na Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica St. Kitts/Nevis Saint Lucia St. Vincent/Grenadines Suriname Trinidad/Tobago Total (Million) Source: FAOSTAT. (June, 2007); 1 million. 23