UnderstandingPovertyInTrinidad&Tobago PDF

Understanding Poverty in Trinidad and Tobago:
A Review of the Literature
By
Innette Cambridge Ph.D.
Co-ordinator
Social Policy Programme
Department of Behavioural Sciences
Faculty of Social Sciences
University of the West Indies
St. Augustine
Trinidad and Tobago
Juliana S. Foster M.Sc.

Researcher
Social Policy Programme
Department of Behavioural Sciences
Faculty of Social Sciences
University of the West Indies
St. Augustine
Trinidad and Tobago
And
Kim Mallalieu Ph.D.
Head
Department of Electrical and Computer Engineering
Faculty of Engineering
The University of the West Indies
St. Augustine
Trinidad and Tobago
1
Table of Contents
EXECUTIVE SUMMARY ................................................................................................ 4

1. INTRODUCTION .......................................................................................................... 5
1.1. Aims and Purpose of Paper ................................................................................. 6
1.2. Acronyms ............................................................................................................ 7
2. CONCEPTUALIZING POVERTY AND ITS RELEVANCE TO THE CARIBBEAN
CONTEXT .......................................................................................................................... 9
2.1. Types of Poverty ................................................................................................. 9
2.2. Causes of Poverty ............................................................................................. 11
2.3. Characteristics of Poverty in the Caribbean ...................................................... 12
2.4. Gender and Poverty........................................................................................... 13
2.5. Rural / Urban Poor ............................................................................................ 13
2.6. Employed poor .................................................................................................. 13
2.7. C. Y. Thomas’s typology of the Poor in the Caribbean .................................... 13
3. HISTORICAL BACKGROUND: POVERTY IN TRINIDAD AND TOBAGO ........ 16
3.1. Capturing Poverty in Trinidad and Tobago ...................................................... 18
3.2. Poverty in the Caricom Context........................................................................ 20
4. ESTIMATES OF POVERTY IN TRINIDAD AND TOBAGO .................................. 24
4.1. Household Budgetary Survey (HBS) ................................................................ 24
4.2. Poverty and Inequality in Trinidad and Tobago ............................................... 25
4.3. Poverty Profiles ................................................................................................. 26
4.4. Inequality and Ethnicity in Trinidad and Tobago ............................................. 30
4.5. Socio-economic Factors and Poverty................................................................ 34
5. MEASUREMENT OF POVERTY............................................................................... 38
5.1. Indicators........................................................................................................... 38
6. PROXIES OF POVERTY MEASUREMENT - INDICATORS USED TO MEASURE
POVERTY IN TRINIDAD AND TOBAGO ................................................................... 42
6.1. Constructing Poverty Measures for T&T Surveys............................................ 43
7. SOCIO-CULTURAL COMPONENTS OF POVERTY .............................................. 49
7.1. Social Capital .................................................................................................... 50
2
7.2. Cultural capital .................................................................................................. 51
7.3. Psychological Capital........................................................................................ 51
7.4. Political Power .................................................................................................. 52
8. SOCIAL CONDITIONS IN POOR COMMUNITIES................................................. 53
8.1. Health ................................................................................................................ 53
8.2. Housing ............................................................................................................. 53
8.3. Education and Training ..................................................................................... 54
8.4. Information ....................................................................................................... 54
8.5. Migration........................................................................................................... 54
8.6. Challenges ......................................................................................................... 55
8.7. Coping and Resiliency in Poor Communities ................................................... 55
8.8. Self Perceptions of the Poor .............................................................................. 56
9. THE WAY FORWARD ............................................................................................... 59
9.1. The New Economy ........................................................................................... 59
9.2. Poverty and Vision 20/20.................................................................................. 62
10. CONCLUSION ........................................................................................................... 64
11. REFERENCES ........................................................................................................... 66
APPENDIX 1. OUTLINE OF SOCIAL SUPPORT SERVICES PROVIDED IN
TRINIDAD AND TOBAGO ............................................................................................ 72
APPENDIX 2. MAPS OF TRINIDAD AND TOBAGO SHOWING COUNTIES AND
PARISHES ........................................................................................................................ 76
3
EXECUTIVE SUMMARY
This background paper on poverty was requested by the Diálogo Regional Sobre la
Sociedad de la Información (The Regional Dialogue on the Information Society) - DIRSI
in order to inform some of their planned studies in Trinidad and Tobago. It provides
documentation on poverty and what is required in order to understand the social problem
of poverty. Key sources of literature on poverty that relate to Trinidad and Tobago are
identified for the reader.
Concepts of poverty are defined for the reader and a historical picture of poverty in
Trinidad and Tobago is provided via references to international and local poverty
assessments and studies. Methods used for measuring poverty including the use of
proxies for identifying poor communities defined. The socio-cultural components of
poverty are briefly outlined and the study closes with comments on the social safety net
and recent developments for reducing poverty in keeping with the government’s policy of
Vision 2020.
This guide contains many references and direct quotations. This style, though not a
conventional one, has been deliberately used so that the reader can easily access the
source document and select references as may be necessary. In this way the working
paper can achieve its original goal of assisting the uninitiated to the study of poverty to
navigate the existing maze of literature on poverty and the Caribbean from a social
science perspective.
4
1. INTRODUCTION
The Republic of Trinidad and Tobago lies in the southern Caribbean. It consists of two
islands, Trinidad and Tobago. Trinidad, the larger island is multiethnic and well known
for its cultural diversity and natural resources. Tobago, the smaller island is culturally
more homogeneous in nature and annually attracts tourists to its picturesque beaches. The
total land area is 5128 sq. km. The capital city is Port-of-Spain. The climate is tropical
with a rainy season from June to December.
The country became independent from Britain in 1962 and became a republic with a
president as the head of state in 1976. It is governed by a bicameral parliamentary system
consisting of the Senate and the House of Representatives. Tobago has internal self-
government via the unicameral Tobago House of Assembly. Previously Trinidad was
administered via eight counties and Tobago via six parishes (See appendix 2). Currently
local government is administered via nine regional corporations, 2 city corporations, 3
borough corporations and the ward of Tobago. The regional corporations are
Couva/Tabaquite/Talparo, Diego Martin, Mayaro/Rio Claro, Penal/Debe, Princes own,
Sangre Grande, San Juan /Laventille, Siparia, Tunapuna/Piarco. The city corporations are
Port-of-Spain and San Fernando and the borough corporations are Arima, Chaguanas and
Point Fortin. Both counties and regional corporations are referred to in poverty studies in
Trinidad and Tobago.
This English speaking country is characterized by an oil-based economy and lately

natural gas. With a population of 1.3 million and a per capita income of US$ 14.790 in
2006, this country is regarded by the United Nations as a high income developing
country. Among the many challenges of development faced by this nation is the problem
of poverty which affects 16,7% of the population’s households. While this figure is the
lowest experienced in recent times, it is worth noting that the history of increased poverty
in times of economic downturn has made poverty in Trinidad and Tobago a phenomenon
in need of continuous assessment.
5
Graph 1. Map of Trinidad and Tobago.
1.1. Aims and Purpose of Paper

This paper identifies and reviews examples of various poverty studies conducted in the
country to date. It is designed to assist the novice to poverty studies such as
undergraduate level social scientists and researchers outside of the social sciences
navigate the maze of literature on poverty for the Caribbean and for Trinidad and Tobago
in particular. Naturally an effort of this nature would not be exhaustive and there would
remain some references that have not been mentioned or acknowledged in detail. This
reflects the limitations of a study of this nature. We have addressed the main areas of
concern which contribute to understanding poverty within the context. Given these
constraints the paper attempts the following:
 To provide a context for studies on poverty in Trinidad and Tobago via a review
of literature and documentation on poverty.
 To illustrate a picture of poverty in Trinidad and Tobago.
6
This paper provides background information on poverty as a concept and estimates of
poverty in Trinidad and Tobago and the Caribbean (to a lesser extent). Included are
definitions of poverty, explanations on how poverty is measured, as well as poverty as a
social issue on the agenda of national, regional and international organizations. As much
as is possible the paper facilitates an understanding of the concept in its local socio
economic setting and in the historical and contemporary context. Discussion of the
poverty data gives insight into the different causes of poverty as well as the various
groups affected by poverty. Poverty in the Caribbean is presented here using data from
different countries and various poverty assessments.
Additionally, major events that may impact on poverty are also discussed. These include
Vision 2020 of the Government of Trinidad and Tobago and the social service provisions
available in Trinidad and Tobago. The paper has more direct quotations than would
usually be found in articles, however, their inclusion and retention was a conscious
choice as this article primarily serves as background reading to assist the reader in
sourcing further information on the topics outlined therein. It helps to support more
empirically evidenced based research and interventions with low income populations in
Trinidad and Tobago.
1.2. Acronyms
CARICOM: Caribbean Community and Common Market
CBOs: Community Based Organisations
CDB: Caribbean Development Bank
CPA: Country Poverty Assessment
CSME: Caribbean Single Market and Economy
HBS: Household Budgetary Survey
IFIs: International Financial Institutions
IMF: International Monetary Fund
MOSD: Ministry of Social Development
MDGs: Millennium Development Goals
NDS: National Development Strategy
7
NGOs: Non-governmental Organisations
OECS: Organization of Eastern Caribbean States
PRSP: Poverty Reduction Strategy Paper
SAP: Structural Adjustment Programme
SIDS: Small Island Developing States
SLC: Survey of Living Conditions
UND: United Nations Development Programme
WB: World Bank
8
2. CONCEPTUALIZING POVERTY AND ITS RELEVANCE TO THE
CARIBBEAN CONTEXT
The Caribbean shares with Latin America a historical colonial legacy of a socially
stratified society. Much of the poverty experienced in this region is rooted in the social
system where ancestors of today’s poor were African slaves (16th-19th centuries) or East
Indian indentured servants (19th-20th centuries). Trinidad and Tobago has some
characteristics of poverty with the rest of the region but is unique by its heavy
dependence on the production and export of petroleum since the early part of the 20th
century and gas in more recent times.
Poverty may be regarded as both a sociological concept, as well as a social issue affecting
the lives of millions. In this regard, poverty is therefore of concern to the international
community, though appearing to be mainly a national issue. The problem of poverty also
attracts many players; all contributing to designing measures to eliminate, alleviate or
eradicate it all together. In this section we examine definitions for types of poverty,
characteristics of poverty in the Caribbean, categories of the poor and causes of poverty.
2.1. Types of Poverty

It has become apparent that in order to study poverty, one must first be clear on the
definition of the concept since it has proven to be multi dimensional and multi faceted.
Definitions of poverty assist in categorising and classifying findings, and therefore
allowing for adequate analyses of causes. Definitions used are as follows:
Absolute poverty: This conceptualisation of poverty focuses on the attainment of socially

acceptable levels of food and non food items. It occurs in the absence of the attainment of
the “…nutritional requirements below which the bodily health can be threatened”. The
non-food component measures some “…minimum provision deemed to be socially
acceptable”1.
1
Kairi 2007, p.161.
9
Chronic Poverty: “…this type of poverty is distinguished by its extended duration; five
years or more. It refers to “…people who remain poor for much of their life course, and
who may pass on their poverty to subsequent generations”2 (intergenerational
transmission of poverty).
Extreme Poverty: Exists when poverty is prolonged “…and when it severely

compromises people’s chances of regaining their rights and reassuring their
responsibilities in the foreseeable future”3.
Indigence: Cases where a household or individual’s resources or group’s available

resources were insufficient to ensure access to the means to consume enough to maintain
bodily health4.
Relative poverty: “The estimation of poverty on the basis of comparison with what some
other group or individual possesses”5. It is also used as an indicator of exclusion of
normal activities of the average citizen in a country.
Capabilities and entitlements: “…poverty is deprivation in terms of a range of

capabilities in addition to income- education, health, human and civil rights…”
Vulnerability: The poor are “…likely to experience highly stressful declines” in “their
level of income, consumption or capabilities”. Vulnerability “can be seen as the risk that
a household will be suddenly (but perhaps also gradually) reach a position with which it
is unable to cope, leading to catastrophe (hunger, starvation, family breakdown,
destruction or death)6.
2
Hulme.
3
Hulme.
4
Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías,
2006:65.
5
Kairi 2007:168.
6
David Hulme, Forthcoming – World Development Report (2003).
10
These definitions for conceptualizing poverty are not unique to Trinidad and Tobago nor
even to the Caribbean. Many can be found in internationally recognized literature by
social scientists as Peter Townsend and Amartya Sen. Their selection here is important to
recognize the common basis for much analysis on poverty irrespective of the
geographical context.
2.2. Causes of Poverty

For the Caribbean, Eleanor Wint and Yves Renard1 note significant progress in all areas
of social development, however, in recent times poverty has taken new forms and
dimensions. Significant developments include:
 Growth in urban poverty.

 New forms of rural poverty.
 Impact of HIV/AIDS, particularly on the 20-34 age group.
 Rapid ageing of the population.
 Poverty associated with new forms of international migration for example
political and economic refugees and deportees.
 Sudden and unpredictable effect of natural hazards7.
Apart from the historical causes, the following factors contribute to the persistence and
spread of poverty in the Caribbean, as well as increased vulnerability in the region 8.
These are as follows:
 Growing economic disparities within countries and communities.

 The reduced capacity of the state.
 Changes in personal consumption patterns.
 The emergence of new health issues, especially the HIV/AIDS epidemic.
 Increased vulnerability of social institutions such as church and family.
7
In Trinidad there are relatively few hurricanes, however Tobago has been devastated by these natural
disasters. Trinidad experiences severe foding in the rainy season.
8
Wint and Renard, (in Melville and Wint, 2007).
11
 The growing importance of personal and community security and safety issues.
 The long term impact of the oil crisis from the 1980’s.
 The impact of structural adjustment from the 1980’s.
Henry et al. report that “the causes of poverty in Trinidad and Tobago extend beyond
access to adequate income. In certain districts, shortage of such public goods as potable
water, transportation, and youth access to training and education diminish opportunities
and quality of life”9. “In other environments, informal but effective extra legal groups
influence access, creating a subculture that undermines commitment to values consistent
with the peaceful development of society”10.
2.3. Characteristics of Poverty in the Caribbean

Caribbean countries, because of their plantation, colonial history and small island nature
have some visible patterns of poverty. In 1996, the following characteristics of poverty in
the region were noted. Approximately 25% of the total Caribbean population was poor.
Income distribution was skewed. The poor included the elderly, children, the disabled,
small-scale farmers, unskilled workers, indigenous populations, and in some countries,
female- headed households and the underemployed or unemployed, many of whom are
school leavers who have few skills with which to enter the labor market (WB 1996: vii-
viii).
Common characteristics among the poor are:
 Large family size.

 Low levels of education.
 Overcrowded housing.
 Limited access to water and adequate sanitization facilities (WB 1996).
9
Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:
89.
10
Henry, St. Catherine, Brown, Rajack, Tallery and Thomas in Liliana Rojas-Suárez and Carlos Elías,
2006: 89.
12
2.4. Gender and Poverty
Data from studies across the region also showed that women are largely represented
among the poor. Causes of this manifestation include inequality in land and property
ownership, labour market discrimination, and fertility issues such as teenage pregnancy.
On the other hand it is noteworthy to observe that men are also well represented among
the poor, in particular young males. Males in the Caribbean tend to stand out since they
appear quite vulnerable being affected by under representation in school achievement,
lack of male role models and high rates of unemployment. (WB 1996: vii-viii).
2.5. Rural / Urban Poor

The World Bank report stated that most of the poor in the region live in rural areas.
However, it also noted that “…with the rising rates of urbanization and high vulnerability
of the urban poor to economic and social problems, urban poverty has become a major
concern” (WB 1996).
2.6. Employed poor

The majority of the employed poor work in the informal sector. In rural areas, these are
usually small-scale farmers and agricultural labourers. The employed poor also include
employees in urban areas (WB 1996). The latter group is also called the working poor,
which is further described below by Thomas.
2.7. C. Y. Thomas’s typology of the Poor in the Caribbean

Poverty in the Caribbean varies on a country basis. However, a study of the phenomena
reveals that similarities have evolved giving rise to definite categories of poor. C. Y.
Thomas represents these categories in a typology of poverty. He argues that each
category “has its own dynamics which requires its distinct mode of intervention”11. The
categories are as follows:
11
C. Y. Thomas 1995 in Girvan 1997:37.
13
Hard core or Systemic Poor: Include “…those who are born poor and remain poor over
their lifetime, mainly because of the manner of their insertion into the system of
production and asset ownership”12. This group reflects the historically underdeveloped
characteristics of Caribbean societies.
Newly Poor or Structurally Adjusted Poor: “…refers to persons who while not being
born poor, have become poor largely because of the various stabilization and adjustment
programmes in operation”13. Examples of persons falling in this category include public
servants, teachers, and members of the security services. Before the SAPs, “these groups
formed the traditional middle class of the region and had more or less secure, guaranteed
employment from the colonial and immediate postcolonial states”14.
Transient Poor: “members in this group may vary in number, form and content, from
year to year and season to season, reflecting in general the ups and downs of the economy
and the definite seasonality of production and sales which still persist especially in
agriculture and tourism”15.
Additional Categories include the indigenous populations of the region who live in
poverty. In Guyana for example, “the Amerindian population constitutes a definite social
category, since as many as 87 per cent of the Amerindian population were found to be
below the poverty line in the 1992 survey”16.
Employed Poor: “…those persons in rural areas and towns who live in households where
at least one person is working, but the wage obtained is below the household’s
subsistence requirements”17. It is therefore apparent that poverty and unemployment don’t
always go hand in hand as is commonly assumed.
12
13
14
15
16
17
14
Socioeconomic conditions: “…drop in real values of social insurance and social
assistance and changes in family structures have contributed to declining living
conditions”18. The economic situation in each country directly impacts the living
conditions of the population. The could be caused by changes in the international
economy e.g. the decline in the price of bananas or oil and gas.
Another typology of the poor has been identified by Cambridge (1997). The three broad
categories of the poor identified in this study are the traditional poor, the poverty line
poor and the new poor. The traditional poor correspond to the systemic poor of Thomas
and include persons such as ex-prisoners and adolescent girls who enter child bearing and
raising in an unsupported environment. The definition of the New Poor also correspond
to Thomas’s typology in referring to the groups of persons who were use to a satisfactory
level of living prior to economic downturn of the 1980’s and the reductions in state
expenditure by reducing the civil service expenditure. The poverty line poor consists of
those households whose income would place the; below the poverty line, however basic
needs of the household would be met. These households frequently did not have pipe
borne water or electricity; nevertheless there would be fresh water from tanks or home
made rain water systems, and kerosene lamps. Residents in these households did not
perceive themselves to be poor and there was an abundance of food that could be shared
with visitors and neighbours.
These definitions of the concepts and types or poverty serve as the basis for more in
depth understanding of poverty within the Caribbean context. While these typologies
reflect uncertainties in the region’s economic development associated with structural
adjustment; they are likely to persist in the current era. Conditions such as the “increases
in competition stemming from global economic changes in trade and capital markets, the
erosion of preferential market access, the vulnerability of the tourist industry and
competition from other destinations, decline in official capital flows from bilateral
sources all present a particularly difficult challenge for the Caribbean”19.
18
Judy L. Baker, 1996:vii, WB.
19
Judy L. Baker, 1996:vii, WB.
15
3. HISTORICAL BACKGROUND: POVERTY IN TRINIDAD AND TOBAGO
The nature of poverty in Trinidad and Tobago has been captured and illustrated through
various country studies on poverty over the years. Studies revealed that Trinidad is a
middle income Caribbean country with relatively high levels of poverty. The economy
has been characterized by its heavy dependence on the production and export of
petroleum and gas since the early 1960s.
Stagnation and or reversals in the country’s social development levels have largely
correlated with declining economic performance. “As international oil prices declined
during the 1980s, the economy experienced sharp contraction with an average annual
decline of 4,5 percent between 1982-1989”20. This crisis was associated with:
 A drop in per capita GNP from US $6.600 per annum (1982) to US $3.160
(1989).
 A sharp rise in unemployment.
 A gradual decline in the quality of services.
 A steady flow of emigration to North America21.
The crisis was also manifested in poverty trends. Data indicates an increase in the levels
of poverty during this period.
 The 1975 study revealed the earliest estimates of poverty. At the time of this
study, 25% of the population was classified as poor. This measure did not include
housing22.
 Estimates from the 1981 and 1988 study put forward an increase in absolute
poverty from 3,5 percent to 14,8 percent of households23.
20
Judy L. Baker / World Bank 1995:1.
21
22
Ralph Henry and Juliet Melville, 1989, “Poverty Revisited”.
23
Teekens, R. (1990) “Poverty data from two Family Budget Surveys in Trinidad and Tobago, 1989.
Analysis was based on ‘household expenditure’ Judy L Baker / World Bank 1995:1.
16
 Poverty in the 1980s was characteristic of a new phenomenon: the ‘New Poor’.
The traditional poor then which included the elderly, persons with disabilities, and
female-headed households, were joined by those who became unemployed during
the mid-eighties24.
 The distribution of income widened slightly during this period with the Gini
coefficient increasing from .45 in 1981 to .47 in 198825.
 Using the PPP, this measure showed that during 1990 to 2001, “approximately
12,4 percent of the population earned less than US$1 per day and 39 percent
earned less than US $2 per day”26.
Over the years, poverty in Trinidad and Tobago has therefore fluctuated. The Poverty
Head Count 1989 (Henry et al), 18.5%; World Bank 1995, 21%; IDB, 24%27. The 1989
study focused on households using HBS data, while the World Bank reported on
individuals and was based on the SLC which depends on recall of expenditure. The IDB
study was also based on a HBS”28.
These studies were facilitated by the availability of HBS data since Trinidad undertakes
at least every ten years, a Household Budgetary Survey, which is preparatory for
updating the cost of living index. The data generated from an HBS is “easily adapted for
the purposes of poverty assessment and monitoring living conditions”29.
With the economy doing better in the new millennium, Trinidad and Tobago has
registered decreases in poverty. A Survey of Living conditions estimating the indigence
line at TT$ 8,35 per day or TT$ 255 per month, for an adult in 2005 and the poverty line
was at TT$ 665 per month, in 2005. Using these demarcations, it was found that 16,5
percent of the population’s households were poor in 2005, compared to 24 percent in
24
25
Gini coefficient increases as the distribution becomes more skewed. Henry R. Melville, J, 1989, and
Teekens 1989 in Judy L. Baker / World Bank 1995:1.
26
Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:17.
27
Kairi 2005, (Source- Figure 1.1: Poverty Levels 1988 to 2004).
28
Kairi 2005:6.
29
Kairi 2005:6.
17
1997/98. Additionally, 1,2 percent of the population was deemed indigent, compared to
8,3 percent in 1997/98. The poverty gap was estimated at 4,63 and the severity index at
1,9630.
Social Development indicators for Trinidad and Tobago are more or less positive. Life
expectancy at birth in 2004 stood at 69,8 (UNDP, 2006, 284). The Human Development
Index for the country has been looking more and more favourable with time.
Table 1. HDI Trends for Trinidad and Tobago.

1975 0,751
1980 0,783
1985 0,790
1990 0,793
1995 0,791
2000 0,801
2004 0,809
Source: BRD UNDP 2006 p. 289.
3.1. Capturing Poverty in Trinidad and Tobago

Over the past 30 or more years, poverty in Trinidad and Tobago has been assessed and
analyzed through data gathered from various country surveys. The three major studies of
poverty conducted are the Household Budgetary Surveys (HBS) (1975, 1981/2, 1988 and
1997/98) and the Survey of Living Conditions (SLC) of 1992. The most recent data has
been presented from the 2005 Survey of Living Conditions.
3.1.1. Household Budgetary Survey (HBS)

Household Budgetary Surveys were conducted in 1975, 1981/82 and 1988 by the Central
Statistical Office. Data from these surveys has been used mainly for comparative
purposes and not dealt with in depth, in this paper.
30
Kairi 2005:156.
18
3.1.2. Survey of Living Conditions (SLC) 1992
The 1992 SLC measured living standards among the population. It incorporated
information from approximately 1.450 households (6.200 individuals). The survey
included data on “household consumption, employment, income, expenditure, education
and health”31.
The 1992 SLC concluded that:
“Nationally, 21 percent of the population, or roughly 265.000 people fall below the TT$
2.420 poverty line. Eleven percent of the population would be classified as extremely
poor, with consumption levels below the minimum amount required to purchase the
nutritionally balanced low-cost food basket. The shortfall in per capita expenditures from
the poverty line (poverty gap) is around 7 percent, and the severity of poverty as
measured by the P2 measure is 3,7 percent” (WB 1996: 4).
3.1.3. 1997/1998 HBS

Data from this study found 24% of the population to be living in poverty. The indigence
level was found to be 8,3 percent32.
3.1.4. 2005 Survey of Living Conditions

This survey found that 16.7 percent of the population’s households was poor and 1,2
percent was indigent.
Table 2. Level of Poverty, Indigence and Vulnerability Lines.

Level of Poverty and vulnerability lines TT $
Indigence Line (Annual in local currency) 3.060
Poverty Line (Annual in local currency) 7.980
Vulnerability line (Annual in local currency) 9.975
33
Source: Kairi 2005
31
32
Kairi 2005:xvi.
33
Kairi 2005:xvii, Table 1: Level of Poverty, Indigence and Vulnerability Lines.
19
These sources note fluctuations in the poverty levels for the period during which there
have been regular assessments. The figures of the new millennium are some of the lowest
for recent years.
3.2. Poverty in the Caricom34 Context

Trinidad and Tobago is not alone in dealing with the problem of poverty. A look at the
main social indicators of the various countries of the region, reveal wide variations
pointing to the fact that “acute problems of social development are manifest in all” 35.
Table 5 below provides insight into poverty in the Caribbean. In 1997, Girvan used the
example of Barbados and Trinidad and Tobago, to point to the existing trend of high
indices of human development in both countries alongside “relatively high rates of open
unemployment at 20 and 22 percent respectively”36.
Using the case of Jamaica and Guyana where unemployment rates were lower (15 and 12
percent) than in Barbados and Trinidad, the emerging trend is that “a growing proportion
of the employed labour force is classifiable as ‘working poor’”37.
3.2.1. Barbados
Barbados is a high income developing country. With a Human Development Index of
0,892. In 2005, it ranked 31 among 177 countries as the number one developing country
in the world (UNDP 2007)38. It has achieved relatively high levels of social development
and registers some of the lowest poverty levels in the Caribbean 39. Poverty in Barbados
stood at 8,7% of total households and approximately 13,9% of the total population
according to the Barbados Inter American Development Bank Study40.
34
CARICOM is a group of mainly English speaking counries who form part of an economic community.
35
Norman Girvan 1997:2.
36
Norman Girvan 1997:2.
37
38
Human Development Report Office.
39
Liliana Rojas-Suárez and Carlos Elías, 2006:68.
40
Barbados Ministry of Social Transformation, 2003.
20
3.2.2. Jamaica
Irrespective of the set backs to social development brought on by the SAPs implemented
during the 1980s, Jamaica has recorded reductions in national poverty levels. This
reduction coincides with the implementation of the National Poverty Eradication
Programme (NPEP). To date Jamaica has implemented a series of programmes aimed at
eradicating poverty.
The Poverty Situation in Jamaica at a Glance:
 “Since the launch of the National Poverty Eradication Programme (NPEP), the
incidence of poverty has declined by 10,6 percentage points moving from 27,5%
in 1995, to 16,9% in 2004”41.
 “According to the Economic and Social Survey of Jamaica (ESSJ) 2004, there
was a slight decrease in the incidence of individual poverty island-wide of 2,23%
since the 2003 ESSJ, when the rate was 19,1%”42.
3.2.3. Guyana
This Caribbean country (along with Haiti) has been declared by the IMF/WB as a Highly
Indebted Poor Country (HIPC). Taking into consideration its indebtedness along with its
social development problems; namely poverty, Guyana has prepared a Poverty Reduction
Strategy Paper (PRSP). Both the strategy paper and the National Development Strategy
(NDS) set the country on the path for tackling its problems of poverty. It should be noted
that in 2007 Guyana’s principal donor, The Inter-American Development Bank
“cancelled Guyana’s nearly $ 470 million debt equivalent to nearly 41% of GDP”43.
3.2.4. OECS
The OECS44 states consist of St. Lucia, Grenada, St. Vincent and the Grenadines,
Antigua, St. Kitts and Nevis, Dominica and Montserrat. The Virgin Islands and Anguilla
41
NPEP.
42
NPEP.
43
CIA. The World Factbook. Guyana.
44
OECS. The Organization of Eastern Caribbean States. See Lewis (2002).
21
are associate members. Within CARICOM OECS States “are a distinctive group with
special shared peculiarities of an economic and social nature and the history of
cooperation through common institutions”45. These Small Island Developing States
(SIDS) face unique challenges to the attainment of their development. They have
therefore committed to a ‘Development Charter’ with a specified human development
agenda. The rationale is that the well-being of OECS people is seen as ‘central focus of
the development process46.
One of the minimum targets identified by the OECS Development Charter is that of
‘reducing the levels of poverty’. The Charter states that “poverty in our states can only be
eliminated by enhancing access by the poor to resources they require”47. The following
two tables show that the percentage of the poor in the OECS can range from 12% in
Antigua to 33% in Dominica. In Grenada 32% of the population and in St. Kitts 30% of
the population fell below the poverty line.
Table 3. Poverty Indicators for selected Caribbean countries.

Poverty Indicators
Year CPA % below % below Poverty Foster-Greer-
Country Conducted Poverty Indigence Gap Thorbecke
Line Line (FGT) P2
(Severity)
Anguilla° 2002 23,0 2,0 6,9 3,2
Barbadosp 1997 13,9 - n.a n.a
Belize+ 2002 33,5 10,8 11,2 6,1
British
Virgin 2002 22,0 < 0,5 4,1 1,7
Islands°
Dominica° 2002 39,0 15,0 10,2 4,8
Grenada° 1999 32,1 12,9 15,3 9,9
Guyanapp 1999 35,0 19,0 12,4 n.a
Haiti* 1997 65,0 56,0 n.a n.a
Jamaica** 2002 19,7 n.a n.a n.a
St. Kitts and
- - - - -
Nevis
St. Kitts° 2000 30,5 11,0 2,5 0,9
Nevis° 2000 32,0 17,0 2,8 1,0
45
OECS Development Charter, 2002:2.
46
47
22
Saint Lucia° 1996 25,1 7,1 8,6 4,4
St. Vincent
and the 1996 37,5 25,7 12,6 6,9
Grenadines°
Suriname++ 2000 63,1 20,0 n.a n.a
Trinidad and
1997 24,0 8,3 n.a n.a
Tobagoppp
Turks and
Caicos 1999 25,9 3,2 5,7 2,6
Islands°
° CPAs commissioned by CDB; p Barbados, CPA, Inter-American Development Bank
(IADB); + SLC, Government of Belize; pp Guyana Living Conditions Survey, United
Nations Development Programme (UNDP); * Haiti commissioned by UNDP; ** Jamaica
SLC Government of Jamaica;
++
Suriname, Government of Suriname Statistics Office; ppp Trinidad and Tobago
Household Budgetary Survey. Source: CDB, Poverty Reduction Strategy Paper
(Barbados, 2005)48.
Table 4. Welfare measures in the Caribbean.

Head count Human Integrated Basic Needs
Index Development Poverty Index Index (very
Country
(percentage Index >0,40 needy, <0.50)
poor)
Antigua and
12 0,796 0,223 0,892
Barbuda
Bahamas 5 0,854 - -
Barbados 8 0,894 0,057 0,926
Belize 35 0,666 0,501 0,677
Dominica 33 0,749 0,501 0,782
Dominican
21 0,638 0,380 0,699
Republic
Grenada 20 0,707 0,192 0,862
Guyana 43 0,580 0,591 0,773
Haiti 65 0,357 0,755 0,439
Jamaica 34 0,749 0,688 0,831
St. Kitts &
15 0,730 0,282 0,800
Nevis
St. Lucia 25 0,709 0,355 0,773
St. Vincent and
17 0,732 0,396 0,776
the Grenadines
Suriname 47 0,677 0,356 0,818
Trinidad and
21 0,855 0,239 0,831
Tobago
Caribbean 27 0,710 0,394 0,777
48
Table 2.1: Poverty Indicators for Selected Caribbean Countries, Eleanor Wint, chapter 2, The Poor in the
Caribbean: Some Facts, Figures and Postulates (in Melville and Wint, 2007:7).
23
Average
Latin American
Countries 25 0,757 0,403 0,731
Average
Developing 0,600
0,467
Country - 0,541 (median)
(median)
Average
Source: Table 1.2. Welfare measures in the Caribbean49. - Not Available. Only those estimates
with an asterisk were calculated using a similar methodology
As seen in Table 3 above, poverty levels throughout the Caribbean and OECS are a cause
for concern. More recent studies for some countries show, in some cases, reductions, and
in others increases in poverty. St. Lucia has recently conducted a SLC which puts poverty
levels in 2005/06 at 28,8% of the population and 21,4 % of households50. The EU
estimates the poverty level in Antigua to be at around 12%51.
3.2.5. CSME and MDGs

It is anticipated that with full commitment to the Millennium Development Goals
(MDGs) and the successful implementation of the Caribbean Single Market and
Economy (CSME), the region will experience continued reductions in poverty levels as
seen in Jamaica. However the threat from global economic restructuring poverty is likely
to increase as in St. Lucia under the adverse effects of loss of preferential markets for
bananas.
4. ESTIMATES OF POVERTY IN TRINIDAD AND TOBAGO

Estimating the level of poverty is an ongoing exercise. Kairi (2005), The Household
Budgetary Survey (HBS), The Ministry of Social Development (1996) are the key
sources for these measures.
4.1. Household Budgetary Survey (HBS)

HBS data for 1997/98 revealed high levels of poverty as well as the existence and
persistence of “pockets of acute poverty and indigence” in certain eastern, far south, and
49
World Bank, 1996: 3-4.
50
Kairi 2006.
51
Antigua and Barbuda Country Strategy Paper, 2002.
24
southwestern regions of the country52. HBS data also established that, in 1997-98, nearly
25 percent of Trinidad and Tobago’s population was poor. Expenditure levels suggest
that more than 8 percent was indigent53.
The 1997-98 (HBS)54 used indigence and poverty lines of TT$ 228,30 and TT$ 376,54 a
month per adult respectively55. Indigence was estimated at 6,0 percent for households.
Based on comparisons made between the 1981 HBS and the 1988 HBS, Teekens (1990)
estimated that absolute poverty had increased from 3,5 percent of households in 1981 to
14,8 percent in 198856.
Table 5. Poverty Indicators for Trinidad and Tobago.

Poverty Indicators
Year CPA % below % below Poverty Foster-
Conducted Poverty Indigence Gap Greer-
Country
Line Line Thorbecke
(FGT) P2
(Severity)
Trinidad and
1997 24,0 8,3 n.a n.a
Tobagoppp
p
Source: ° Country Poverty Assessment (CPAs) commissioned by CDB; Barbados, CPA, Inter-
American Development Bank (IADB); + ppp Trinidad and Tobago Household Budgetary Survey.
Source: CDB, Poverty Reduction Strategy Paper (Barbados, 2005)57
4.2. Poverty and Inequality in Trinidad and Tobago

Measures for inequality include the Poverty gap, the Foster-Greer-Thorbecke index
(FGT2) and the Gini coefficient. The Poverty Gap index refers to “a per capita measure
of the shortfall in the welfare of the poor from the poverty line”58. This measure is often
used to estimate the need for transfers to lower income households. The Gini coefficient
52
Henry, St. Catherine, Brown, Rajack-Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías,
2006:65.
53
2006:65.
54
See Table 1 below.
55
2006:69-70.
56
World Bank, 1995.
57
Table 2.1: Poverty Indicators for Selected Caribbean Countries, Eleanor Wint, Ch 2. The Poor in the
Caribbean: Some Facts, Figures and Postulates, (in Melville and Wint, 2007:7).
58
Source: Variable Definitions-University of Columbia.
25
is a measure of inequality of income distribution or wealth distribution. Its values range
from 0 to 1. “A Gini index score of 0 implies perfect equality, whereas a score of 1
implies perfect inequality (i.e. all resources belong to one household)”59. The Foster-
Greer-Thorbecke index measures the severity of poverty for each area. The higher the
figure the more severe the poverty of the area. Over the period 1971-1998 the Gini
coefficient fell from a high of 0,51 (1971-72) to 0,39 (1997-98)60. Table 6 below shows
data on inequality in Trinidad and Tobago.
Table 6. Poverty Gap and the FGT2 Index by County, 1997-1998.

County Poverty Gap FGT2 Index
St. Andrew/David 11,3 6,1
Nariva/Mayaro 11,0 5,7
Victoria 8,1 4,3
St. Patrick 7,8 3,9
St. George 4,5 2,4
Port of Spain 3,6 2,1
San Fernando 2,5 1,5
Caroni 2,4 1,4
Tobago 2,5 1,1
Trinidad and
5,3
Tobago
FGT 2 – Foster- Greer- Thorbecke Index by County
Source: Household Budgetary Survey61
Unemployment decreased from 12 percent at the beginning of the decade to 8 percent in

2005 and 6,3 percent in 2007. The Gini coefficient “remained at 0.39 just as it was in
1998”. This suggests that “…there might not have been much closing of the gap between
the poor and the non-poor”62.
4.3. Poverty Profiles

Poverty profiles explore the broad parameters of poverty as related to geographic
distribution, gender, age, education and ethnicity.
59
Source: Variable Definitions - University of Columbia.
60
Figure 2.1, Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos
Elías, 2006:69.
61
Table 2-5 Poverty Gap and the FGT 2 Index by County 1997-1998 in Liliana Rojas-Suárez and Carlos
Elías, 2006:73.
62
Kairi 2005:156.
26
4.3.1. Geographic Distribution
Table 7 and Table 8 below provide insight into the distribution of the poor throughout
Trinidad and Tobago, as revealed by various studies. By comparison, the 1992 SLC data
revealed that the highest incidence of poverty was found in San Juan / Laventille,
Tunapuna / Piarco, Princess Town, Diego Martin, Chaguanas Borough, and Siparia,
ranging from significant highs of 7,7% to 12,7% respectively.
Table 7. Geographic Dimensions of Poverty (1997-98 HBS Data).

Percentage of
County Trinidad and
Tobago Poor
Tobago 4%
Port of Spain 7%
San Fernando 11%
St. Patrick 13%
Caroni 3%
Nariva/Mayaro 24%
Victoria 15%
St. Andrew/
14%
St. David
Source: Barbados Stay over Visitor Survey
2003 and 2004 Quarterly Publications63.
Table 8. Summary distributions of Poverty by Local Government Area (1992 SLC Data).
Local % of Poverty
Government Country Rate (%)
Area Poor
Port of Spain 4,5 31,6
San Fernando 6,0 35,6
Arima Borough 2,3 36,4
Chaguanas
7,9 27,3
Borough
Point Fortin
4,9 36,0
Borough
Diego Martin 8,2 8,3
San Juan/
12,7 37,4
Laventille
63
Figure 2-4 Distribution of indigent Population by county: Liliana Rojas-Suárez and Carlos Elías, (2006:
71).
27
Tunapuna/
9,7 30,4
Piarco
Couva/Tabaqui
7,3 30,0
te/Talparo
Rio Claro/
4,9 56,3
Mayaro
Sangre Grande 6,4 49,3
Princess Town 9,0 48,0
Penal/Debe 5,8 35,6
Siparia 7,7 40,0
Tobago 2,8 24,7
Source: Ministry of Social Development, 1996:
45. Table 10: Summary Distributions of Poverty
by Local Government Area.
4.3.2. History and Demographics

Examining the 1992 SLC and the 2005 SLC reveal that patterns of poverty persist along
lines of geography with minor changes over the years.
Striking dimensions of poverty revealed in the 1992 SLC are as follows:
a) The highest incidence of poverty was among large sized households.

b) The highest incidence of poverty was found within the San Juan/Laventille
(12,7%) and Tunapuna/ Piarco (9,7%) regions. The Sangre Grande area registered
significant proportions of the poor64. “The more densely populated County of St.
George, therefore, contained the largest share of the country’s poor: 28,9%”65.
c) Concentrations of poverty were found in the more densely populated area
adjacent to the Cities and Boroughs. These areas were also characteristic of large
scale squatting settlements, a situation being addressed by squatter regularization
programmes in those areas which are on lands owned by the state66.
d) In the final analysis distribution of the poor amounting to 35,9% of all
households67.
64
Ministry of Social Development, 1996: 23.
65
Ministry of Social Development, 1996: 23-24.
66
67
28
4.3.3. Rural/Urban Poverty
The 1992 SLC informs us that poverty levels were higher in rural areas than in urban
areas. The figures were 15,6% and 20,3% respectively. Poverty in rural areas however,
maintained a different character to urban areas68.
The poorest households are those found in Rio Claro/ Mayaro, Sangre Grande, Princess
Town, Point Fortin and Siparia, where the poor constitute more than 40% of the
households. The Rio Claro/ Mayaro area appeared to have the highest proportion of poor
households, constituting 56,5%69.
4.3.4. 2005 SLC- Geographic distribution of Poverty and Indigence by region.

Over time, though poverty may have decreased, the geographic distribution remains
highly unequal. The 2005 SLC reveals that “…the north-east and south-west of the island
of Trinidad and Tobago were the two poorest areas…”. “The Mayaro area that had been
the poorest for decades, no longer carried the dubious distinction, although its residents
had not become well off”70.
Poverty levels remain significant in Siparia (15,1%); Princess Town (11,2%); San
Juan/Laventille (11,0%); Tunapuna/Piarco (10,1%). These regions together accounted for
“47,4 percent of the total poor population”71. In the final analysis Sangre Grande had the
largest proportion of poor persons (poverty within Regional Corporations), per 100 in the
population; “39,1 percent of the population in the Regional Corporation of Sangre
Grande were deemed to be poor”72.
Table 9. Geographic Distribution of Poverty by Regional Corporation.

Regional As % of As % of Total Total Regional Disparity
Corporation population non poor Sample Sample Corpora Ratio
poor population population Population tion As
of Regional % of
68
Ministry of Social Development, 1996:ix.
69
MOSD, 1996:61.
70
Kairi 2005:xix.
71
Kairi 2005:xix.
72
Kairi 2005:xix.
29
Corporation Sample
Port of Spain 5,1 4,6 18,0 718 4,7 1,1
Mayaro/
5,1 2,8 26,6 492 3,2 1,6
Rio Claro
Sangre
9,6 3,0 39,1 627 4,1 2,3
Grande
Princess
11,2 5,3 30,0 954 6,3 1,8
Town
Penal/Debe 3,7 5,4 12,0 784 5,2 0,7
Siparia 15,1 7,9 27,7 1.391 9,1 1,7
City of San
2,8 4,5 11,2 641 4,2 0,7
Fernando
Borough of
0,8 3,3 4,5 436 2,9 0,3
Arima
Borough of
2,6 5,4 8,9 748 4,9 0,5
Chaguanas
Borough of
2,2 1,4 24,6 230 1,5 1,5
Point Fortin
Diego Martin 7,9 9,1 14,9 1.349 8,9 0,9
San Juan/
11,0 12,9 14,7 1.915 12,6 0,9
Laventille
Tunapuna/
10,1 17,3 10,5 2445 16,1 0,6
Piarco
Couva/
Tabaquite/ 7,4 12,7 10,5 1795 11,8 0,6
Talparo
Tobago 5,2 4,4 19,0 694 4,6 1,1
Total (%) 100 100,0 16,7 - 100,0 -
Total (N) 2.546 12.672 - 15.218 - -
Source: Table 4.1 Geographic Distribution of Poverty by Regional Corporation. Kairi 200573.
4.4. Inequality and Ethnicity in Trinidad and Tobago
The 1992 SLC showed that poverty levels were “significant only for the dominant ethnic
groups of East Indian and African origin”74. Data has revealed differences in poverty
levels and inequality among the various ethnic groups of Trinidad and Tobago,
particularly those of East Indian origin. The Gini ratios for household heads by ethnicity
were as follows: “African 0,40; Indian 0,36; Mixed 0,41 and Other 0,39”75.
73
Kairi 2005:34.
74
Ministry of Social Development, 1996:ix.
75
Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suarez and Carlos Elias,
2006:69.
30
Table 10. Ethnicity of Household Heads by Quintile* (percent).
Quintile
(per capita African Indian Mixed Other All in T&T
consumption)
I 15,6 13,9 17,0 6,5 15,0
IV 18,7 16,8 18,1 6,5 17,7
III 19,4 18,8 14,6 6,5 18,3
IV 21,5 24,1 18,4 12,9 21,9
V 24,9 26,5 31,9 67,7 27,1
* Column distribution
Source: Trinidad and Tobago: Poverty Reduction and Social Development
(Kairi consultants, Ltd. 2004)76
It is argued that “underlying the change in Gini coefficient is “poverty reduction among
Indians and development of an economic base outside of agriculture, which could be
attributed more to the mobilization of intra-group social capital for advancement, than to
any inexorable factors associated with the Kuznets hypotheses”77.
“Household poverty data for 1997-1998 did not immediately reveal any statistically
significant difference in poverty levels between the two groups, except that the African
poor were largely urban and the Indian poor were largely rural; however, close
examination revealed that a gap between the two ethnic groups may have emerged”78.
“For example, by analyzing the distribution of household heads by ethnicity across

quintiles, one sees that Africans were better represented than Indians in the lowest
quintile; they were far less represented in the highest quintile than were Indians and other
ethnic groups”79.
76
Table 2-6, Ethnicity of Households Head by Quintile, Henry, St. Catherine, Brown, Rajack- Talley and
Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:73.
77
Kuznets Hypothes postulates that “inequality levels reaches a plateau and then starts to decline as a
function of increase in average incomes” (Henry, St. Catherine, Brown, Rajack- Talley and Thomas in
Liliana Rojas-Suárez and Carlos Elías, 2006:69).
78
Henry, St. Catherine, Brown, Rajack- Talley and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:
73.
79
Ibid.
31
Table 11. Distribution of Household Member by Ethnicity and Per Capita Consumption
Quintiles.
Per Capita Consumption Quintiles (%)
Ethnicity
Poorest II III IV Richest Total
African 39,8 38 37,7 33,9 335 36,5
Indian 29,8 33,8 36,1 39,8 37,3 35,4
Chinese - 0 0,1 0,3 0,7 0,2
Syrian/
- - - 0 0,2 0
Lebanese
Caucasian 0 - 0 0,1 1,6 0,4
Mixed 30,4 28 25,9 25,2 26,3 27,1
Other
- 0 0 - 0,2 0
Ethnic
Not Stated 0 0,2 0,1 0,6 0,3 0,3
Total 100 100 100 100 100 100
Source: Table 5.7A: Distribution of Household Member by Ethnicity And Per
Capita Consumption Quintiles (Kairi 2005:49).
4.4.1. Gender
It was reported that in Trinidad and Tobago, the percentage of poor females was only
marginally higher than poor males, that it was not statistically significant. “Female
household heads were more likely to be poor than male household heads”80. However
female headed households were increasingly emerging among the poor.
Table 12. Employment Status by Gender across Quintiles, (Percent) 1997-1998.

Status Quintile (per-capita consumption)
I II III IV V
Male Employed 16,3 17,3 19,8 22,1 24,5
Unemployed 36,2 26,8 20,9 11,4 4,7
Female Employed 11,9 16,6 17,5 24,3 29,7
Unemployed 32,8 23,7 24,9 14,5 4,1
Both Employed 14,6 17,0 19,0 22,9 26,5
Sexes Unemployed 34,5 25,3 22,8 12,9 4,4
Source: Household Budgetary Survey81.
80
2006:70.
81
Table 2-10. Employment status by Gender Across Quintiles, Henry, St. Catherine, Brown, Rajack-Talley
and Thomas in Liliana Rojas-Suárez and Carlos Elías, 2006:75.
32
Table 13. Distribution of Household Members According to Sex and Socio-Economic
Status.
Socio Economic Status
Sex
Indigent Poor Vulnerable Non Poor Total
Male 49,7 50,4 50,2 49,1 49,4
Female 49,5 49,5 49,8 50,6 50,3
Not Stated 0,8 0,1 - 0,3 0,2
Total (%) 100 100 100 100 100
Total (N) 180 2.366 1.652 11.020 15.218
Source: Table 5.4 A: Distribution of Household Members According to Sex and
Socio-Economic Status, Kairi 2005: 45
4.4.2. Vulnerable Groups (Children, Elderly and Youth): Children in Poverty

“A much higher percentage of poor children was found in Tobago than in Trinidad.
Because larger households generally had a higher percentage of children, a significantly
higher percentage of poor were children; this finding also extended to indigence” 82.
Youth an children under 19 years old were consistently over represented among the
indigent poor and vulnerable in proportion to their percentage in the society. On the other
hand the elderly 65 years and over were marginally overrepresented among the non-poor.
Table 14. Poverty by Five Year Age Groups.

Five Year Socio Economic Status
Age Group
Indigent Poor Vulnerable Non Poor Total
0-4 14,2 9,1 8,8 6 6,9
5-9 10,3 9 10 5,9 6,9
10-14 13,6 11,5 9,6 7,2 8,2
15-19 15 14,2 10,5 8,4 9,6
20-24 7,9 11,3 10,7 9 9,5
25-29 9,5 7,2 9,2 7,6 7,8
30-34 8,7 6,5 6,9 6,6 6,6
35-39 5 5,8 6,3 6,8 6,6
40-44 4,6 6,7 6,3 7,9 7,5
45-49 5,4 4,9 5,4 7,1 6,6
50-54 1,8 3,9 3,8 6,2 5,5
55-59 1,4 3,3 4,1 5,4 4,9
60-64 - 2,7 2,9 4,3 3,9
82
2006:75.
33
65-69 1,4 1,3 1,6 4 3,3
70-74 0,6 1,2 1,6 2,7 2,3
75-79 0,8 0,7 0,9 1,9 1,6
80-84 - 0,3 0,6 1,4 1,1
85+ - 0,3 0,6 0,9 0,8
Not Stated - - 0,2 0,4 0,3
TOTAL 100 100 100 100 100
Source: Table: Poverty by Five Year Age Groups, Kairi 2005:43.
4.5. Socio-economic Factors and Poverty

Poverty in Trinidad and Tobago and the Caribbean has been linked to changes in the
economy. In the 1980s, Trinidad and Tobago experienced the repercussions of the
collapse of oil prices on the world market. As a result the Trinidad and Tobago economy
suffered reverses. This period led to the introduction of a series of Structural Adjustment
Measures.
4.5.1. Structural Adjustment Programmes (SAPs) in Trinidad and Tobago

In 1988, the Government of Trinidad and Tobago underwent an adjustment programme.
The focus of the IMF/WB SAPs were:
 Improving the fiscal situation by reducing public sector expenditures (including a

reduction in employment).
 Introducing tax reform as value added tax (V.A.T.).
 Restructuring and divesting public enterprises.
 Increasing public utilities tariffs.
 Rescheduling debt repayments.
 Liberalizing exchange and trade controls .
 Improving the incentive framework83.
4.5.2. Impact of SAPs on Welfare
83
34
There have not been in Trinidad and Tobago as extensive numbers of studies on the
impact of SAPs as have taken place for example in Jamaica. It can therefore be difficult
to measure the impact of SAPs on welfare in Trinidad and Tobago. The following
impacts have been identified as being directly related to the SAPs:
 Decline in living standards for some is attributed to policies such as “those

affecting the labour market, value of real wages, and decline in expenditures”84.
 Increase in Poverty: it was estimated that poverty increased from “18,5 percent of
households in 1988 to 22.5 percent in 1992”85.
It was concluded that based socio economic trends (re-increase in poverty, decline in
economic performance nationally), that the high levels of poverty registered “which
represents an extraordinary increase in poverty, has been brought about by the worsening
of the economic circumstances experienced over the past decade”86.
MOSD (1996) argues that one of the effects of adopting economic measures aimed at
stabilizing the economy was the creation of new classes of poor households which have
been called ‘the new poor’. This phenomenon defined by C. Y. Thomas appears to apply
adequately to Trinidad and Tobago.
4.5.3. Link between Poverty and Unemployment

The increase in poverty in Trinidad and Tobago has been closely linked to
unemployment.
 Between 1988 and 1992, unemployment rose from 10 per cent to 20 percent.
 Sectors suffering from job loss primarily among construction, manufacturing and
public sectors.
84
Judy L Baker/ World Bank 1995:2.
85
Henry and Melville, 1989 quoted in Judy L Baker/ World Bank 1995:2.
86
MOSD, 1996:23.
35
 The informal sector, namely community and personal services, wholesale and
retail trade, tourism and to a lesser extent agriculture, all served as avenues to
absorb workers.
 Trinidad saw the emergence of the ‘New Poor’ category that refers to those who
remained unemployed. These individuals were “unable to find gainful
employment to support themselves and their families”87.
Bearing in mind the adverse effects of these socio economic factors on living standards
and poverty levels in the past, it is not surprising that, following steady economic
progress in the late 1990s and the first five years of the new millennium (past 10 years),
Trinidad and Tobago has indeed registered declines in poverty and improvements in
living standards throughout the country. The 2006 study found that poverty has decreased
from 35% of households in 1992 to 16,7% in 2006, a time when unemployment is at an
all time low.
With the dawm of the 21st century there continues to be a reduction in reporting of
poverty levels The 2005 SLC Report notes that “…unemployment fell into single digits,
for the first time in decades, and the poor had work available to them”88. This progress for
the people and Government of Trinidad and Tobago (the decline in poverty and
indigence) is attributable to the “…rapid expansion of the economy in the first half of the
present decade”, among other factors. In the monetization of revenues from gas and oil,
the government contributed to the expansion of employment directly and indirectly, in
particular, through the Construction Sector, and in Government services”89.
The phenomena of the working poor must still be kept in mind as with increased
employment, some of the poor would have merely “…graduated from indigence and
poverty to being the working poor, while others would have risen above the poverty
line”90. The Ministry of Finance (2004) notes however that “Institutional economic and
87
88
Kairi 2005:xvii.
89
Kairi 2005:xvi.
90
Kairi 2005:xvii.
36
social forces also put the country’s households at risk. Trade liberalization increases the
vulnerability of employees in certain sectors, and the country has no developed
mechanisms for handling trade adjustment”91.
91
2006:89.
37
5. MEASUREMENT OF POVERTY
The measurement of poverty is a complex activity involving many actors and

considerable debate. Below we have selected to identify some of the key measurements
used in poverty studies. The list should assist the reader to better understand the terms
found in literature of this social problem.
5.1. Indicators
Indicators are universal statistical measures that are used in the study and measurement of
social conditions. The following indicators allow for determining the degree or extent of
poverty faced by individuals, communities and countries. They are as follows:
 Human Development Index (HDI): “Human Development Index- A composite

index measuring average achievement in three basic dimensions of human
development- a long and healthy life, knowledge and a decent standard of
living”92.
 Human Poverty Index (HP1 2): “for selected high income OECD countries. A
composite index measuring deprivations in the three basic dimensions captures in
the human development index- a long and healthy life, knowledge and a decent
standard of living- and also capturing social exclusion”93.
 Life expectancy at birth: “The number of years a new born infant would live if
prevailing patterns of age-specific mortality rates at the time of birth were to stay
the same throughout the child’s life”94.
92
HDR 2006:407.
93
HDR 2006:407.
94
HDR 2006:407.
38
 Literacy rate, adult: “the percentage of persons ages 15 and older who can, with
understanding, both read and write a short, simple statement related to their
everyday life”95.
 Literacy rate, youth: “The percentage of people ages 15-24 who can, with
understanding, both read and write a short, simple statement related to their
everyday life”96.
 Mortality rate, infant: “The probability of dying between birth and exactly one
year of age, expressed per 1.000 live births”97.
 Mortality rate, under-five: “The probability of dying between birth and exactly
five years of age, expressed per 1,000 live births”98.
 Mortality ratio, maternal: “The annual number of female deaths from pregnancy-
related causes per 100.000 live births”99.
 Purchasing power parity (PPP): “A rate of exchange that accounts for price
differences across countries, allowing international comparisons of real output
and incomes. At the PPP US$ rate, PPP US$ 1 has the same purchasing power in
the domestic economy as $ 1 has in the United States”100.
 Sanitation: Population with sustainable access to improved sanitation facilities-

“The percentage of the population with access to adequate excreta disposal
facilities, such as a connection to a sewer or septic tank system, a pour-flush
latrine, a simple pit latrine or a ventilated improved pit latrine. An excreta
95
HDR 2006:407.
96
HDR 2006:407.
97
HDR 2006:408.
98
HDR 2006:408.
99
HDR 2006:408.
100
HDR 2006:409.
39
disposal system is considered adequate if it is private or shared (but not public)
and if it can effectively prevent human, animal and insect contact with excreta”101.
 Tenure: households with access to secure-refers to “Households that own or are

purchasing their homes, are renting privately or are in social housing or sub
tenancy”102.
 Unemployment: “Refers to all people above a specific age who are not in paid
employment or self-employed, but are available for work and have taken specific
steps to seek paid employment or self-employment”103.
 Unemployment, long-term: “Unemployment lasting 12 months or longer”104.
 Water: population without sustainable access to improved water source-

“Calculated as 100 minus the percentage of the population with sustainable access
to an improved water source. Unimproved sources include vendors, bottled water,
tanker trucks and unprotected wells and springs”105.
 Water: population with sustainable access to “the share of the population with
reasonable access to any of the following types of water supply for drinking;
household connections, public standpipes, boreholes, protected drug wells,
protected springs and rainwater collection. Reasonable access is defined as the
availability of at least 20 litres a person per day from a source within 1 kilometer
of the user’s dwelling”106.
While these are among the most frequently used indicators, used particularly by the
international community when measuring poverty and quality of life across countries,
101
HDR 2006:409.
102
HDR 2006:409.
103
HDR 2006:410.
104
HDR 2006:410.
105
HDR 2006:410.
106
HDR 2006:410.
40
CPAs may not always be in a position to utilize all of them. It is therefore important to
note which indicators or proxies are used for various studies to understand not only what
improvements have occurred but also why data may vary.
41
6. PROXIES OF POVERTY MEASUREMENT - INDICATORS USED TO
MEASURE POVERTY IN TRINIDAD AND TOBAGO
Integrated poverty measure: this measure was employed in the 1992 SLC Survey. All
known variables which correlate to cause poverty constituted elements of the
methodological framework. These were lack of food, clothes, shelter, absence of basic
amenities such as potable water, sanitation facilities, lack of provisions for education,
health, recreation and other social welfare amenities which have been catered for through
the collection of data in the study.
The variables which were specified are:
a) Earned income and expenditure.

b) Access to potable water.
c) Access to sanitary services such as flush toilets and septic tanks.
d) Education.
 Non attendance of minors at school.

 Adults who have attended school but who received no qualifications or
certification.
 Access to and extent of use of health services.
e) Housing in terms of:
 Adequacy of provision.
 Type of tenancy.
 Land tenancy.
 Persons per room.
 Extent of overcrowding107.
107
Ministry of Social Development, 1996:21-22.
42
6.1. Constructing Poverty Measures for T&T Surveys
6.1.1. The Poverty Line Measure: Poor households according to the poverty line
method (SLC 1992)
“A poverty line of TT$ 623 per capita monthly has been established in the 1992 SLC,
against which persons falling below this level of income, were deemed to be poor” 108. At
the time of the study, the population of 1,3 million translated into 300.000 households.
According to the Poverty Line Measure, 35,9% of the households were judged to be poor
constituting:
 Individuals and households who had long fallen into a state of poverty –the
historically poor.
 Individuals and households which have more recently become poor as a result of
changed economic circumstances e.g. loss of jobs, reduced wages –the new
poor109.
Poverty Line (1992 SLC): For different sized households the poverty line was derived as
follows:
 2 person households: TT$ 1.108

108
Ministry of Social Development, 1996:22.
109
Ministry of Social Development, 1996:viii.
110
Ministry of Social Development, 1996:viii.
43
It is worth noting that the Poverty Line measurement generally assumes that there exist
pre-determined and well-defined standards of consumption- called ‘poverty lines’. This
line is derived by considering all the component items of a basket of goods which contain
the necessary nutrients of food as well as non-food items which are required for an
acceptable standard of living111.
Poverty assessments and measurements also take into account “all those basic amenities
including, those which promote good health, access to education, shelter, recreation,
employment opportunities and self sustaining incomes, which individuals and households
require in order to enjoy a comfortable life”112. This approach provides a more informed
view of socioeconomic situation of population groups.
The poverty line measure has “…provided a measure of the extent of increase in poverty
levels through time periods as was discerned for the 1981 and 1988 Household
Expenditure data and the SLC of 1992. It has also provided evidence of the emergence of
classes of the ‘new poor’”113.
6.1.2. Absolute Poverty

Such a measure is advantageous for capturing the worst scenario, in terms of incomes
unavailable to households, at levels necessary to provide for their basic needs (MOSD
1996). The poverty line measure is therefore capable of pointing out persons living in
absolute poverty. “The most common approach in defining an absolute poverty line is to
estimate the cost of a basket of goods (food, shelter, clothing, etc.) deemed necessary to
assure that basic consumption needs are met”114.
111
112
113
MOSD, 1996:61.
114
MOSD, 1996:22.
44
This measure advocates that poverty is a condition that exists in a society when a
person(s) or household(s) do not attain a level of material well-being deemed necessary
to constitute a reasonable minimum by the standards of that society115.
“This approach recognizes that poverty lines are inherently subjective judgements made
about what constitutes a socially acceptable minimum standard of living. While it is
undeniable that there exist levels of consumption of various goods (food, clothing and
shelter, etc.) below which survival beyond short periods is threatened, it is less clear
exactly what these levels are for any given individual”116.
The poverty line measure is also challenged by the fact that “…in most societies,
including some of the poorest –the notion of what constitutes “poverty” goes beyond the
attainment of the absolute minimum needed for survival”117. Taking all variables into
account to produce one single measure therefore remains problematic.
6.1.3. Consumption versus income measures of poverty

A second approach to measuring living standards that is used in Trinidad is the study of
household consumption. This, rather than income, is widely accepted as a more
appropriate measure” (WB 1996:3). Take for example the trends revealed from the 1975,
1981/82 and 1988 Household Budgetary Survey conducted by the Central Statistical
Office. In these studies households reported more expenditure over and above their
incomes. In surveys persons usually understate or decline to give their true income.
It is widely accepted that household consumption provides a basis for measuring welfare,
hence the use of consumption measures such as the food basket rather than income (WB
1996:3).
115
MOSD, 1996:22.
116
MOSD,1996: 22.
117
Ibid.
45
When it comes down to measuring poverty in Trinidad and Tobago, there are several
possible poverty lines that can be constructed. For example, a commonly accepted
methodology used for capturing extreme poverty was a measure reflecting the average
price of a minimum low-cost basket for a 2.000 calorie diet collected during the time of
the survey (TT$ 4,90, US$ 1,15 per person per day). For the 1992 SLC, poverty was
defined at TT$ 6,60 (US$ 1,56) per person, per day (or) TT$ 2.420 per person, per year
based on May/June 1992 prices). Accuracy of measurement was ensured by adding an
allowance for basic non-food goods to the extreme poverty line using information on the
consumption patterns of the poor from 1992 the SLC (WB 1996:4).
6.1.4. 2005 Survey of Living Conditions

The data for this study was gathered in 2005 by the CSO. “Estimates of poverty
generated in this report are specific to the (reference) year 2005”118. This study involved
the selection of a random sample of 3.621 households, which added up to about 12.919
persons. This figures, on the basis of population updates, represented one percent of the
population119.
The main poverty estimates derived for this study are based on “an indigence line that
measures, in dollar terms, what would be necessary for an adult to attain the minimum
level of nutrition deemed adequate to maintain good bodily health at the prices available
in the market during the time of the survey (mid year 2005)”120. “The derived poverty line
incorporates the indigence line, and accommodates for other items than food that
individuals and households would need”121.
Table 15. Level of Poverty, Indigence and Vulnerability Lines.

Level of Poverty TT $
and vulnerability
lines
118
Kairi 2005:xv.
119
Kairi 2005:xv.
120
Kairi 2005:xvi.
121
Kairi 2005:xvi.
46
Indigence Line
(Annual in local 3.060
currency)
Poverty Line
currency)
Vulnerability line
currency)
Source: Kairi 2005122.
6.1.5. Limitations of one-time surveys
Time
Since poverty conditions are likely to change over time, whether improving or worsening,
it is necessary therefore to monitor living conditions through periodic surveying123. This
has only been achieved slightly in Trinidad and Tobago since the gaps in terms of years
between surveys are relatively large. For example the poverty level from the 1988 data
was 18,5% (Henry’s estimate). Teekens (only 1988 data) estimated the level to be 14,6%.
The findings of both analysts suggested worsening of the poverty level between 1981 and
1988124.
Subsequent data generated by the SLC was useful in providing a snapshot of poverty.
While future data collection efforts were highly recommended to enable ongoing
monitoring and evaluation of poverty reduction programmes and policies, the next study
was actually conducted in 2006. This one would argue is quite a large gap.
Variables
Both HBS studies employed the poverty line approach which did not allow for analysis of
social factors and their effects on poverty. The SLC, in contrast, “has focused on a wide
122
Kairi 2005:xvii. Table 1: Level of Poverty, Indigence and Vulnerability Lines.
123
124
47
range of poverty assessment variables which have now made a much broader scope of
analysis and measurements possible”125.
Consumption
Take for example the trends revealed from the 1975, 1981/82 and 1988 Household
Budgetary Survey conducted by the Central Statistical Office. These showed recurring
patterns where household expenditure tended to be over and above their incomes. Such
patterns point even more to the adequacy of consumption measures over income
measures of poverty.
One outstanding advantage of the poverty line measure is that it captured the various
levels and intensity of poverty, and pointed to changes in the income and expenditure
patterns of households, a development which can be linked to shifts in employment
patterns, job losses and reductions in incomes and wages accruing to households126.
125
126
MOSD, 1996:61.
48
7. SOCIO-CULTURAL COMPONENTS OF POVERTY
Poverty lines and consumption measurements assist in providing a framework for

measuring physiological deprivation of individuals in the form of income, consumption
and meeting of basic needs. These methods of determining poverty are well developed in
the discipline of economics and are the most commonly used in the current discourse on
poverty and poverty reduction. They do not assess socio-cultural deprivation such as
social exclusion and lack of dignity, self-respect, security, justice and health. The
presence of these attributes in communities and households contribute to building social
capital and facilitating empowerment for sustainable livelihoods. These factors have a
major effect on perceptions of the poor on their situation, yet the more commonly
established methods of assessing poverty frequently exclude socio-cultural conceptions
of poverty.
Bearing in mind the limitations of the Poverty Line measure for assessing poverty “a
more in-depth study of the conditions of households employing socio-economic
measures, becomes desirable, in order to establish the full dimension of the poverty
situation which obtains” (MOSD, 1996:61). Such a measure is necessary to capture
features such as:
 Socio Cultural deprivation.

 Human poverty approach, lack of basic capabilities to live a long healthy life.
 Social exclusion- lack of resources to participate in customary activities.
 Lack of participatory approach- lack of dignity, self respect, security, justice and
health.
Traditional or previously used measures of poverty will have to be adjusted to

incorporate indicators such as longevity, knowledge, mortality and living standard, access
to health, access to water, degree of malnutrition etc. Measuring social exclusion will
take into consideration indicators such as income: precariousness, employment, marital
instability and limited social participation. Use of the Participatory approach will be
49
necessary to measure the assets of the vulnerable, their time use, and access to education
and health.
Other concepts of wealth and capital have become increasingly recognized as being
pivotal to successful social transformation and the economic success of communities.
These non-physical forms of wealth significantly affect the feeling of well-being of a
community or household and the ability to improve their material living conditions.
These include the following:
 Social capital
 Cultural capital
 Psychological capital
These individual, family and household strengths especially when accompanied with land
ownership may hold the key to poverty alleviation in the future. Their effectiveness could
then be assessed via the traditional methods for poverty measurement.
7.1. Social Capital

This concept has been described by many authors including Bourdieu, Putnam and the
World Bank. Bourdieu states that Social capital is “the aggregate of the actual or
potential resources which are linked to possession of a durable network of more or less
institutionalized relationships of mutual acquaintance and recognition” (Bourdieu
1983:249). Putnam notes that ‘Whereas physical capital refers to objects and human
capital refers to the properties of individuals, social capital refers to connections among
individuals –social networks and the norms of reciprocity and trustworthiness that arise
from them. In that sense social capital is closely related to what some have called “civic
virtue”. The difference is that “social capital” calls attention to the fact that civic virtue is
most powerful when embedded in a sense network of reciprocal social relations. A
society of many virtuous but isolated individuals is not necessarily rich in social capital’
(Putnam 2000:19). Recognizing the importance of social capital in development projects,
The World Bank noted that “Social capital refers to the institutions, relationships, and
50
norms that shape the quality and quantity of a society’s social interactions…Social capital
is not just the sum of the institutions which underpin a society – it is the glue that holds
them together’ (The World Bank 1999).
Both cultural capital and psychological capital are in some ways linked to to social
capital. However they both illustrate human resources of the particular individual or
household.
7.2. Cultural capital

This refers to the range of attitudes and competences that provide the individual with the
confidence to negotiate his or her space in the world. Sometimes it is a confidence that
comes through knowledge of ancestral strengths and knowledge of one’s past and
heritage. Other definitions refer to the linguistic and behavioural competences necessary
for educational success, which often leads to further success in the world of work.
Bourdieu (1985) describes cultural capital in the following manner. “Cultural capital can
exist in three forms: in the embodied state, i.e. in the form of long-lasting disposition and
objectified state, in the form of cultural goods (pictures, books, dictionaries, instruments,
machines, etc.) theories or critiques of these theories, problematics, etc. and in the
institutionalized state …because, as will be seen in the case of educational qualifications,
it confers entirely original properties presumed to guarantee”.
7.3. Psychological Capital

This term has evolved with the increased insights into the importance of investing in
human resources in particular within the context of the workplace. Goldsmith et al.
(1998:15) notes that psychological capital encompasses “those personal attributes
expected to influence productivity. Many features of a person’s psychological capital are
reflected in a person’s self-view or sense of self-esteem”. Luthans, Youssef & Avolio
(2007:3) define psychological capital as being characterized by the following:
“1. having confidence (self-efficacy to take on and put in the necessary effort to
succeed at challenging tasks; 2. making a positive attribution (optimism) about
51
succeeding now and in the future; 3. persevering toward goals when necessary,
redirecting paths to goals (hope) in order to succeed; and 4. when beset with
problems and adversity, sustaining and bouncing back and even beyond
(resiliency) to attain success”.
In Trinidad and Tobago the social psychologist, Ramesh Deosaran has best studied the
concept of psychological capital among the poor in the book Psychonomics and Poverty:
Towards government and civil society. Hyman (1971) in discussing the flexibility of
lower class families in Trinidad refers to the ability of individuals to adapt to varying
circumstances. This adaptability is an example of psychological capital.
7.4. Political Power

The last form of capital that needs to be recognized in an introductory project such as this
is political power. This latter concept determines the distribution of resources. Persons
with access to this form of power usually develop regulations which ensure the inclusion
of themselves and their representative group within those receiving resources. Frequently
described as determining “who gets what, when where and how”, political power
penetrates the heart of the poverty discourse. From some perspectives poverty is not a
problem of economics but one of politics. Efforts to solve poverty via manipulation of
figures and poverty lines are inefficient if the distribution systems at national, community
or international levels are not addressed. From this perspective the improvement of the
conditions of life of the lowest income groups can only be improved by their
empowerment and increased participation in the political decision making affecting their
respective communities.
Other forms of capital, that are increasing recognized but fall outside of the objectives of
this study, include natural capital, information and technology capital and environmental
capital.
52
8. SOCIAL CONDITIONS IN POOR COMMUNITIES
In order to gain an appreciation of social conditions in poor communities it is important
to consider the areas identified below. Details for particular communities can be found at
the website of the Central Statistical Office of Trinidad and Tobago, where the data is
classified according to county enumeration district or town. Details of housing and
contents of housing can also be provided by the census data127. Indicators of well-being
and increased living standards include:
8.1. Health
“For the period 1997 to 2000, the leading cause of death for all ages was heart disease
followed by diabetes mellitus, malignant neoplasm, cerebrovascular disease and
HIV/AIDS”128.
HIV/AIDS continues to be the major cause of death among young adults in Trinidad and
Tobago. In 2002 there were 236 deaths as a result of the disease, comprising 140 men and
93 women. “Available data for the period 1983 to 2002 indicate that the male population
has been more affected by the disease, recording both higher incidences and death
rates”129. “The 30 to 34 age group, represented the largest cumulative figure for AIDS
reported deaths by age and 25 to 39 age groups respectively” 130. “Current forecasts
indicate that the country may loose up to 4 percent of its GDP by 2005 if the trend
continues”131. “By Geographical area, the County of St. George remains the largest
affected area with 189 deaths and 159 HIV cases followed by Tobago which had a
reported 85 cases and 21 deaths”132.
8.2. Housing
Adequacy and quality of housing remain a cause for concern in Trinidad and Tobago.
“Approximately 25.000 squatters currently occupy State Lands in Trinidad and Tobago.
127
http:/cso.gov.tt/
128
129
130
131
132
53
In recognition of the fact that these people are among the poorest of the society and are
therefore unable to provide decent housing for themselves, Government has sought to
regularize 5.400 families at seventeen squatter settlements throughout the country”133.
8.3. Education and Training

“Failure to provide for the training and retraining of workers in the face of economic and
technological change can put a household’s main breadwinner, along with his or her
family, on the breadline”134.
8.4. Information
“Information dissemination has progressed in Trinidad and Tobago with the prevalence
of cellular devices and computer usage associated with the Internet”. “Since 1998 the
usage of these devices has increased from 20 to 1,52 (per 1,00 persons) to 217 and 36,2
respectively 2001”135.
“International competition and the rate of technological obsolescence have contributed to

the decline in the prices of these devices and the subsequent wider usage” 136. “Traditional
channels of communication including telephones, cable networks, radios and newspapers,
remain primary sources of information”137.
8.5. Migration
“…External migration- in response to push factors at home and pull factors abroad
deprives households of parents, with often pernicious results for the children left
behind”138. “The net migration rate is –11,13 migrant(s) / 1.000 population”139. Migration
frequently splits families with children and the elderly being left behind. Emigrants may
133
Ministry of Finance, Government of the Republic of Trinidad and Tobago, 2004:16-17.
134
2006:89.
135
136
137
138
2006:80.
139
CIA, The World Factbook-Trinidad and Tobago.
54
find themselves excluded in the host country although many succeed in improving their
circumstances and send home remittances.
8.6. Challenges
The current social environment in Trinidad and Tobago is affected by many challenges.
Vulnerable communities, including the poor, experience:
 Murders, in particular of young men.

 Kidnappings.
 Crimes of property , theft , larceny.
 Violence in schools.
 Increased ethnic tension.
 Domestic violence (especially abuse of women and children).
 Increased incidence in use of narcotics and in narcotics trade.
 Spread of HIV/AIDS.
 Trade liberalization’s effects on certain sectors of the labour force and
economy140.
Further discussions of these challenges remain outside of the scope of this review of
literature. However these issues have been noted to assist in providing a picture of
poverty in Trinidad and Tobago.
8.7. Coping and Resiliency in Poor Communities

Persons who fall below the poverty line and are classified as poor are not passive in their
situation but develop various strategies to help them to meet their basic needs and cope
with their situation. Melville and Wint (2007:41) mentioned sharing and cooperating as
the most frequently stated strategy by men and women in their study. This is mainly an
individual effort and not that of a community organized approach. Growing food in
backyards was another strategy mentioned and participating in the informal sector.
140
2006:90.
55
Learning to “make do”141. Other persons mentioned stealing, begging and selling drugs as
a way of coping with poverty. Children mentioned remaining hungry at school until the
days that school lunches are provided. Drug use was also mentioned as a way of coping
emotionally with poverty.
Resiliency is a concept which has its roots in clinical psychology. The term refers to the
ability to bounce back from failure, adversity and advance to positive change, progress
and increased responsibility. Researchers have noted that the ability of persons to be
resilient in difficult circumstances usually requires the support of one support person,
who should be involved early in the life of the particular individual (Larsons and
Luthans, 2006).
8.8. Self Perceptions of the Poor

Poverty in Trinidad and Tobago is often represented in official reports that have
quantified the occurrence of the phenomenon. However, qualitative studies are necessary
to gain subjective data on how the poor see themselves and their situation. This approach
to studying poverty has been commented on by Chambers, the World Bank Voices of the
Poor initiative.
Melville and Wint (2007) and Cambridge (2003) share views and perspectives of the
poor of their situation. Cambridge (2003:48) notes that residents in Beetham Gardens
have seen clear improvements in their lives compared to their previous residences.
Residents of the community stated that the stigma of the national community towards
Beetham Gardens negatively affected their sense of community pride, well-being and
personal dignity “that comes from owning a furnished home with easy access to the
advantages of the capital city”. In this study more than half of the residents stated that
even though they were comfortable living in Beetham any progress, especially for
employment, required them to move out of the area.
141
An expression that refers to living within the capabilities of current resources.
56
Melville and Wint (2007:41) state that the poor understand and describe poverty as “a
cycle of physical and emotional deprivation, disadvantages in education and a lack of
motivation or ability to find work”. The authors acknowledge that poverty has an
immense effect on the poor. Some of the emotional issues are shame, frustration,
insecurity and a lack of self worth especially by the long term unemployed. The authors
also note that some communities or a substantial number of participants in their study did
not see their communities on the whole as being poor. The reasons given included the
high rate of home ownership, strong social capital and observable improvements in living
conditions compared to the past.
Other sources include the mass media including both electronic and print media.
Newspapers articles and television programmes periodically cover stories of the poor in
Trinidad and Tobago. The journalistic approach occasionally sensationalizes the poverty
experience. Social science research methodology and ethical principles are frequently not
practiced in these cases. Some of the ethical guidelines that may be ignored are:
 Ensuring the confidentiality of the subject, such as any information which

would lead to the identity of the person.
 Unnecessary invasion into the privacy of the interviewee.
 Lack of protection of the subject from emotional or psychological distress
that the research may inadvertently bring about.
 Disrespect of the poor through the use of slogans, acronyms e.g. BOP
(Bottom of the pyramid population) to describe the population of low
income persons.
Another source of perspectives on poverty is to source information from popular culture.

The calypso tradition of Trinidad and Tobago has a pattern of social and political
commentary. Popular local songs such as “People in the Ghetto” by Pink Panther or
“Poverty is Hell” by The Mighty Shadow give voice to the sentiments of the poor. These
various sources of opinions of the poor and the experience of poverty are obtained from
57
the qualitative interactions of the community with low income communities and serve to
report different perspectives on the realities of the Trinidad and Tobago poor.
58
9. THE WAY FORWARD
Dealing with poverty in Trinidad and Tobago will require a strategic effort on the part of
Government and Civil Society. Key to any strategy to reduce or eliminate poverty is
adequate information or data on poverty; data which captures its multi dimensional
nature. It is important to identify the most disadvantaged in society: whether they are
large households with young children, vulnerable groups e.g. disabled, shut-ins, persons
with HIV; informal sector workers.
Studies should inform development efforts such as agricultural development, rural

development efforts, provision of health and medicine (health reform), social policy and
social service delivery and social protection. Progress will be made if social programmes
for poverty alleviation target health, behaviour change, agriculture, information literacy
and social exclusion. Reducing poverty involves programmes that target not only income-
poverty but other forms by
 Introducing sustainable forms of well being.

 Enhancing social, cultural, financial, physical and environmental capital.
 Facilitating empowerment e.g. mobilization, support for NGOs.
 Promoting sustainable livelihoods (conflict resolution, food security,
environmental legislation, relief).
9.1. The New Economy

The Trinidad and Tobago economic performance is improving. In 2002 it registered a 4,6
percent expansion, an increase when compared to the 2,8 percent expansion of 2001.
Growth for 2003 was projected to be as high as 6,7 percent. This period of growth is
attributed to the start-up of additional liquefied natural gas operations”142. “…Over the
period 2002-2006, our economy grew at a high rate and real GDP of 9,7 percent per
year…” (Budget Statement 2008:5). Per capita income has increased from “US$ 7.100 in
142
Ministry of Finance 2004:13
59
2002 to $US 14.790 in 2006” (Budget Statement 2008:5). “…The non-energy sector
surpassed expectations, increasing an average annual rate of 6 percent over the period”
(Budget Statement 2008:5).
Since the country has a significant link between employment and poverty, it is worth
noting that unemployment has been decreasing. The 2001 unemployment was at 10,8
percent and reduced to 10,4 percent in 2002. “For the third quarter of fiscal 2003
however unemployment registered a marginal increase of 10,19 percent over the 10,12
percent registered in the corresponding period of fiscal 2002”143. “…An average of
approximately 14.400 new jobs were created annually, resulting in a reduction in the
unemployment rate from 11,7 percent in 2001 to 5 percent at the end of 2006, the lowest
in our nation’s history” (Budget Statement 2008:5). “…Official data shows a halving of
the poverty rate from 35 percent in 1990 to 16,7 percent by 2006” (Budget Statement
2008:5).
9.1.1. Social Services

The country’s potential success at reducing and/or eventually eradicating poverty
depends on appropriate social planning to treat existing and emerging vulnerabilities.
This would require a holistic understanding of the developmental needs of the nation and
sensitivity to the interdependence of economic and social planning. In the current
scenario, various interventions are being put in place to ensure social benefits and provide
a social safety net.
“Many existing institutional structures treat areas of vulnerability or pathology that social
forces have created. Most operate with a top-down philosophy or handout mentality. All
must be viewed against the backdrop of the range of factors that contribute to poverty to
create household risk”144. “Extensive social benefits from expenditure on health,
education and housing as well as old age pensions and public assistance have been
143
Ministry of Finance 2004:13.
144
2006:89.
60
provided to the population which stands close to 1,3 million residing in over 300.000
households. Economic decline, stagnation and enforced adjustment measures have
however tended to erode theses benefits”145.
The delivery of social services occurs through a range of state and non-governmental
organisations. “A host of non-governmental organizations (NGOs) and Community
Based Organizations (CBOs) also operate in the country” 146. In Tobago, the Tobago
House of Assembly oversees the delivery of social services and poverty reduction
programmes. State institutions include but are not limited to the following ministries.
Periodically there can be changes of responsibility for specific areas e.g. youth or gender,
however the governmental units mentioned below reflect those responsible for treating
poverty issues”. These are:
 Ministry of Community Development, Culture and Gender affairs.

 Ministry of Youth and Sport.
 Ministry of Social Development.
 Ministry of Labour and Cooperatives.
 “Many of the programmes operated in Trinidad are found in Tobago. However,
the Special Needs of Tobago’s population have led to the development of needs-
specific programmes”147.
“More than 100 programs fall under the rubric of social services, besides those offered by
the Ministries of Education and Health”148. The institutional environment is therefore
“thick with participants. Yet there are major gaps, attested to in the level of need felt by
some sections of society and the outward visible evidence of social discord”149.
145
Ministry of Social Development, 1996:vii.
146
2006:90.
147
2006:90.
148
2006:90.
149
2006:90.
61
“Change in the governing administration and restructuring of ministerial portfolios make
it difficult to develop a historical series on beneficiaries by programmes, even though it is
possible to establish broad terms in expenditure allocated and public assistance are
among the few beneficiaries for whom there is a readily available series of benefits” 150.
“Expenditure data from NGOs and CBOs are even more problematic. Government
subventions to most and provide some sense of commitment level”151.
9.2. Poverty and Vision 20/20

The government of Trinidad and Tobago has pledged commitment to invest more in
human resources. “The present administration has encapsulated its objectives in the
rallying theme of vision 2020, whereby the country aspires to achieve developed-country
status by the year 20/20”152.
Vision 2020 “…was founded on five developmental pillars; Developing Innovative

People; Nurturing a Caring Society; Enabling Competitive Business; Investing in Sound
Infrastructure and the Environment; and Promoting Effective Government153. This
programme is evidence that the government acknowledges that social protection
structures “must be put in place to protect the most vulnerable citizens against the risks of
economic and social change”154.
Based on its current level of expenditure and resources, it is argued that at this historic
moment, Trinidad and Tobago can “significantly reduce, and even eliminate, extreme
poverty”155. All efforts when the vision and mission of Vision 2020 aim to do just that. At
present the thrust is towards:
150
2006:91.
151
2006:81.
152
153
Budget Statement 2008:4.
154
155
62
 Improving housing.
 Improving social safety nets.
 Improving access to and quality of health care.
 Increasing education and training.
In order to continue the struggle to reduce poverty and hunger the government has
strengthen the social safety net in the following ways. Between 2002 and 2007 the
minimum old age pension was increased from TT$ 800 per month to $ 1.350. The elderly
have also received access to free medical care and drugs, bus passes and housing
assistance (Budget Statement 2008). Irrespective of increases in the minimum wage (now
at $ 9,00 per hour), high food prices continue to affect some households. The
Government of Trinidad and Tobago has therefore introduced a Food Debit Card aimed
at helping needy citizens cope with this phenomenon. Cards value TT$ 300, $ 400 or 500
for relevant vulnerable households of 3, 4 or 5 persons (Budget Statement 2008). Various
training programmes for youth and for the poor to develop entrepreneurial skills and
establish small businesses and self-employment skills also contribute to the struggle to
reduce poverty in the twin island state.
63
10. CONCLUSION
This background on poverty in Trinidad and Tobago serves to assist the novice to the
field of applied social sciences, and in particular, to the study of poverty and low income
communities to understand the nature of poverty within this national context. In keeping
with the development goals of the twenty –first century of which a primary aim is the
reduction and eventual eradication of poverty, this review of literature and highlighting of
key issues for studying low income populations will be useful for assisting in the design
of macro level interventions for different professions and disciplines in the area of
poverty reduction.
The literature surveyed provides helpful insights on key aspects of poverty as a concept ,
causes of poverty and the historical patterns and geographical patterns of poverty and
socio-cultural concepts of poverty in Trinidad and Tobago since the initiation of poverty
assessments over 30 years ago. The key sources used are:
 A publication of the World Bank by Baker, Judy L. Report No.14382-TR.

Trinidad and Tobago. Poverty and Unemployment in an Oil Based Economy.
October 27, 1995. Country Department III.
 National publications produced by the state or by private contractors to the state:

The Household Budgetary Surveys (HBS) 1975, 1981/2, 1988 1997/98; The
Survey of Living Conditions of 1992; Survey of Living Conditions (2005).
 Kairi (2007) Analysis of the Trinidad and Tobago Suvey of Living Conditions,
2005, Kairi Consultants ltd.
 Melville, Juliet and Wint, Eleanor (2007) A New Perspective on Poverty in the
Caribbean: The Strength of a Participatory Approach, Ian Randle Publishers,
Kingston, Miami.
64
The groups of persons most likely to be poor have been identified as: The elderly,
children, the disabled, small scale farmers and unskilled workers, large intergenerational
households and seasonal workers. The highest percentage of the nation’s poor were found
in Nariva/ Mayaro (24%), Victoria (15%) and St. Andrew/St. David (14%). In terms of
household groups 21.4% of female headed households were considered to be poor.
The paper also introduces the reader to some of the discussion concerning the recognition
of different types of capital as an aide to understanding poverty and some of the concepts
that need to be considered in the development of projects and programmes to improve the
conditions of life of the poor especially those in poor communities. The include an
appreciation of the social conditions in these environments, non-physical forms of capital
and political power and its influence on the distribution of resources.
Whereas available studies do provide quantitative data on poverty there remain many
unaddressed issues. One shortcoming is the unavailability of relatively easily accessible
qualitative studies of poverty that give voice to the poor. Cambridge (2003) does include
self perceptions of the poor on their situation, however, her study is limited to one
community, Beetham Gardens, and is a small sample. The second is the absence of
comparable poverty data over a period of time. The Household Budgetary Survey
through six year periodic assessments does provide one of the better sources of
comparatative data over time, nevertheless its data remains descriptive of consumption
patterns. Causal analyses of the past and emerging experiences of poverty by the nation
still remain to be addressed. Lastly even though there are many social programmes aimed
at reducing poverty very little is known of their impact on reducing poverty within the
nation state.
65
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Forthcoming World Development.
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71
APPENDIX 1. OUTLINE OF SOCIAL SUPPORT SERVICES PROVIDED IN TRINIDAD AND TOBAGO
Service Other Ministry of Social Development Ministry of Ministry of Ministry of Public Nongovernmental
Provider programmes Community Health Utilities and the Organisations
Development, Environment
Culture and Gender
Affairs
Description Unemployme The Micro Enterprise Loan (MEL) Minor Repairs Anti Retroviral The Hardship Relief These
of Service nt Relief Facility. Construction Grant Treatment Programme organizations often
Programme Facility (in Programme work in
This is a community empowerment collaboration with the It is executed by the collaboration with
Adult and poverty reduction initiative, National commission Charitable ministry in government
Education which equips Community Based for Self Help) Cardiac Surgery collaboration with the ministries.
Programme organisations (CBOs) to actively Programme Water and Sewerage
engage in promoting sustainable Facility provides Authority (WASA)
Community livelihoods among the poor. building materials to Chronic Disease
Education destitute families and Assistance Plan Aims of Programme-
Skills Aims to provide micro loans and senior citizens whose (C-DAP) i) To provide
Programme support to micro entrepreneurs homes are in dire financial relief on
need of repairs or Medical Aid water rates for
Youth Beneficiaries- recipients of public reconstruction due to Youth Health qualified old age
Training and assistance; subsistence level or damage from fires, Programme160 pensioners, and
Employment minimum wage earners; floods or other recipients of public
Partnership unemployed who live in natural disasters assistance or
Programme impoverished conditions disability grant. ii)
(YTEPP) Also facilitates the enhance the real
Limited Services provided to borrowers: repairs of dilapidated income of
Community based business loan or damaged materials beneficiaries of the
services; Business training for all such as wooden programme
interested persons; After-loan flooring boards,
160
Ministry of Social Development 2005
72
services and business support galvanize sheeting, Beneficiaries-
wooden window and recipients of old age
Objectives- i) contribute to the frames, wooden pension, public
reduction of poverty by facilitating doors, ceilings, assistance or
the creation of sustainable flooring joists, disability grant who
livelihoods; ii) Empower CBOs to rafters, steps and owns one residential
discharge micro credit services; iii) partitions property in Class A2
Support and promote (water supply is
entrepreneurship at the community Beneficiaries receive externally serviced,
level a maximum of $10, i.e. pipes are located
000 in building outside the dwelling);
Operating offices are in Belmont, materials for repair Class A3 (water
Tobago, St. Joseph, Mayaro and work supply is internally
Four Roads Tamana156 serviced, i.e. pipes
Eligibility inside); Class A4
Public Assistance Programme (water supply is
(PAP) (In collaboration with the Criteria – Programme internally serviced
Social Welfare Office) demands that and metered up to
recipients meet i) an 150 cubic meters).
Provides grants to needy citizens income eligibility Class A2 receives a
criteria, ii)recipients $70 rebate per year
Eligibility criteria: persons who are work through a on water bill. Class
unable to earn a living to support community driven / A3 and 4 receive
themselves or dependents because community $100 respectively161.
of illness or injury; unemployed; organization (e.g
unemployable; guardians of needy Kiwanis), iii) tenancy
children or ownership criteria
(dwelling must be
Grant is also paid on behalf of owner occupied), iv)
fatherless children (whether dead, tenancy requirement
156
161
Ministry of Social Development 2005: 27
73
imprisoned, or have deserted them) (property must be
freehold, leased or
Grants are as follows: One person - rented; v)
$470 monthly; Two persons- $710 Regularized squatting
monthly; Three persons- $920 requirement if they
monthly; Four persons or more- are from squatting
$1,090 monthly households159.
Aim of PAP- to provide financial

relief to needy persons and needy
children for meeting basic needs157
Urgent Temporary Assistance

Programme (in collaboration with
Welfare Division)
Programme provides grants to

nationals who are in dire need of
financial assistance for a temporary
period
Aim to provide financial assistance

toward the purchase of necessary
items for persons in dire need and
in crisis situations
Beneficiaries may be victims of

natural disasters who have lost all
of their possessions, or as a result of
death of breadwinner of family,
157
159
74
victims of domestic violence,
persons on welfare in dire need
Guidance and counseling services

are also provided to beneficiaries
May also provide assistance to

parents of special needs children in
the form of transport to school,
school uniforms for the needy
Provides an Emergency Cases Fund

for the purchase of household
articles, clothing, textbooks,
pharmaceuticals, materials for
house repairs, funds for rent, and
for domestic house help
Also provide funeral assistance and

help with accessing medical
equipment
Old Age Pension Programme
Disability Assistance Grant158
158
75
APPENDIX 2. MAPS OF TRINIDAD AND TOBAGO SHOWING COUNTIES
AND PARISHES
76

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Understanding Poverty in Trinidad and Tobago:

A Review of the Literature

Juliana S. Foster M.Sc.

EXECUTIVE SUMMARY ................................................................................................ 4

This English speaking country is characterized by an oil-based economy and lately

1.1. Aims and Purpose of Paper

2.1. Types of Poverty

Absolute poverty: This conceptualisation of poverty focuses on the attainment of socially

Extreme Poverty: Exists when poverty is prolonged “…and when it severely

Indigence: Cases where a household or individual’s resources or group’s available

Capabilities and entitlements: “…poverty is deprivation in terms of a range of

2.2. Causes of Poverty

 Growth in urban poverty.

 Growing economic disparities within countries and communities.

2.3. Characteristics of Poverty in the Caribbean

Common characteristics among the poor are:

 Large family size.

2.5. Rural / Urban Poor

2.6. Employed poor

2.7. C. Y. Thomas’s typology of the Poor in the Caribbean

Table 1. HDI Trends for Trinidad and Tobago.

3.1. Capturing Poverty in Trinidad and Tobago

3.1.1. Household Budgetary Survey (HBS)

The 1992 SLC concluded that:

3.1.3. 1997/1998 HBS

3.1.4. 2005 Survey of Living Conditions

Table 2. Level of Poverty, Indigence and Vulnerability Lines.

3.2. Poverty in the Caricom34 Context

The Poverty Situation in Jamaica at a Glance:

Table 3. Poverty Indicators for selected Caribbean countries.

Table 4. Welfare measures in the Caribbean.

3.2.5. CSME and MDGs

4. ESTIMATES OF POVERTY IN TRINIDAD AND TOBAGO

4.1. Household Budgetary Survey (HBS)

Table 5. Poverty Indicators for Trinidad and Tobago.

4.2. Poverty and Inequality in Trinidad and Tobago

Table 6. Poverty Gap and the FGT2 Index by County, 1997-1998.

Unemployment decreased from 12 percent at the beginning of the decade to 8 percent in

4.3. Poverty Profiles

Table 7. Geographic Dimensions of Poverty (1997-98 HBS Data).

4.3.2. History and Demographics

Striking dimensions of poverty revealed in the 1992 SLC are as follows:

a) The highest incidence of poverty was among large sized households.

4.3.4. 2005 SLC- Geographic distribution of Poverty and Indigence by region.

Table 9. Geographic Distribution of Poverty by Regional Corporation.

4.4. Inequality and Ethnicity in Trinidad and Tobago

“For example, by analyzing the distribution of household heads by ethnicity across

Table 12. Employment Status by Gender across Quintiles, (Percent) 1997-1998.

4.4.2. Vulnerable Groups (Children, Elderly and Youth): Children in Poverty

Table 14. Poverty by Five Year Age Groups.

4.5. Socio-economic Factors and Poverty

4.5.1. Structural Adjustment Programmes (SAPs) in Trinidad and Tobago

 Improving the fiscal situation by reducing public sector expenditures (including a

4.5.2. Impact of SAPs on Welfare

 Decline in living standards for some is attributed to policies such as “those

4.5.3. Link between Poverty and Unemployment

The measurement of poverty is a complex activity involving many actors and

 Human Development Index (HDI): “Human Development Index- A composite