FDI Recognized As Poverty Eradication Tool

from Jones Bahamas

By QUINCY PARKER
The policy of creating an atmosphere for foreign direct investment – as done by successive Bahamian governments – has been recognized by the heads of Commonwealth countries as a tool for economic growth and poverty eradication.

The policy of creating an atmosphere for foreign direct investment – as done by successive Bahamian governments – has been recognized by the heads of Commonwealth countries as a tool for economic growth and poverty eradication.

In a communiqué issued following the Commonwealth Heads of Government Meeting (CHOGM) in Kampala, Uganda, the heads also stressed the importance of creating an atmosphere that encourages domestic investment as well.

"They recognized that improvements in the business environment and overall regulatory framework which reduce investor costs are crucial to promoting private investment," the communiqué said.

"They also called for an increased focus on developing domestic financial markets and providing opportunities for domestic investors. Heads of Government encouraged the use of home country incentives to promote investment in least developed countries (LCDs), small states and other developing countries."

The communiqué said heads recognized that improving access to financial services for the poor and vulnerable is "an essential element in the fight against poverty and called for continued efforts to integrate them into the formal financial system."

The heads spoke of the importance of "micro-finance" and "micro-credit" in providing access to capital and inclusive financial services for people living in poverty.

Another matter of importance for the heads was the continued facilitation by the Commonwealth Secretariat of dialogue between the Organization for Economic Cooperation and Development (OECD) and Commonwealth countries on the issue of "a global level playing field and transparency and information exchange in tax matters."

The heads called for constructive engagement on the outstanding issues.

The CHOGM communiqué also documented the heads’ concern at the recent increase in frequency and intensity of natural disasters and their often devastating social, economic and environmental impact, particularly on Small Island Developing States.

The heads encouraged small states to continue to implement "outward-oriented development strategies" to help them overcome their vulnerabilities.

"Heads of Government further welcomed the newly formed Small States Network for Economic Development, set up under the auspices of the government of Malta and the World Bank, and expressed the hope that the network would be an effective tool in fostering sustainable economic development in Small States," the document said.

Small states were urged to build their economic resilience by making appropriate interventions in four areas: macro-economic strategy; micro-economic market efficiency; good governance, and social cohesion.

The heads recognized that an important element in development strategies for small states is the operation of the labour market, and urged small states to implement measures on both the demand and supply sides of the labour market to address youth unemployment and the migration of the highly skilled.

Poverty Named As Youth Risk Factor

from The Bahama Journal

By Tameka Lundy

Poverty continues to be one of the crucial factors that affects Bahamian youth making them vulnerable to risks that threaten their human capital development and increasing their chances of becoming poor adults, a newly released report has found.

The Situation Of Youth In The Bahamas, compiled by researcher Dr. Lorraine Blank at the Inter American Development Bank [IDB], was designed to update and integrate existing background information regarding the socio-economic situations affecting the youngest citizens of the country.

Poverty, low levels of academic achievement and poor labour market outcomes were classified among the interrelated factors that interfere with optimal youth development.

One in five persons between the ages of 15 and 24 is poor and over 7,200 youth are living in poverty, according to the latest statistics available. The report conceded that the burden of poverty is a difficult one for young people.

"Students from poor households are also at a disadvantage," it said. "Poor children do not do as well in primary school as their wealthier counterparts and are two times more likely to have repeated a primary school grade than the non-poor - 22 percent among the poor as compared to 11 percent for the non-poor."

It was also said that poor children drop out of school earlier than their wealthier counterparts.

In 2002, researchers determined that 9.3 percent of the population was living below the poverty line. Persons up to age 14 accounted for 50 percent of them.

Dr. Blank’s report contended that The Bahamas has made significant strides in the provision of primary education and universal enrollment, however there is evidence of school attrition among poor children by the time they are in late primary school. The gradual erosion of school enrollment by children who are not poor, according to the report, begins in the upper secondary school.

Among poor children enrolled in school there is also the issue of educational outcomes which are often disappointing. Based on Department of Statistics data thirty five percent of students who sat the Bahamas Junior Certification exam in 2003 scored below average in Mathematics. Thirty eight percent scored below average in English Language.

"Performance on the General Certificate of Secondary Education [BGCSE] which students sit at the end of grade 12 is also worrying," the report said indicating that in 2003, 59 percent of students scored below average in Mathematics and 74 percent scored below average in Language Arts.