Caribbean Local Economic Development Project

Caribbean Local Economic Development Project

21st March 2016

By: Laurah John (Consultant) &

Carla Chiquot (Project Assistant)

List of Acronyms

CARILEDCaribbean Local Economic Development Project

EEFEconomic and Employment Forum

FCMFederation of Canadian Municipalities

GEFGlobal Environmental Facility

LAEPLocal Area Economic Profile

LCCULaborie Cooperative Credit Union

LDFLaborie Development Foundation

LEDLocal Economic Development

MSMEsMicro, Small, Medium-sized Enterprises

SDPLStrategic Development Plan for Laborie

SGPSmall Grants Programme

UNDPUnited Nations Development Programme

Table of Contents

1. INTRODUCTION4

1.1 CAILED4

1.2 Local Economic Development (LED)4

1.3 Local Area Economic Profile (LAEP)6

2. THE DISTICT OF LABORIE6

2.1 Geography and Population6

2.2 Public Assets8

2.3 Socio-Demographic Indicators9

3. ECONOMIC PROFILE11

3.1 MSMEs Sector11

3.2 Fisheries Sector14

3.3 Agriculture Sector16

3.4 Arts & Culture Sector18

3.5 Tourism Sector19

4. SWOT ANALYSIS21

5. ENABLING ENVIRONMENT27

REFERENCES29

1.INTRODUCTION

1.1 CARILED

The Caribbean Local Economic Development (CARILED) programme is implemented by the Federation for Canadian Municipalities (FCM) in collaboration with the Commonwealth Local Government Forum, the Caribbean Association of Local Government Authorities, the Caribbean Forum of Local Government Ministers and the Ministries responsible for Local Government in participating countries. The ultimate goal of the programme is to contribute to increased sustainable local economic growth benefiting men and women in the Caribbean region through:i.) the growth of the micro, small and medium size enterprises (MSME) sub-sector; and ii.) the strengthening of local governments’ capacities to facilitate local economic development. More specifically, the purpose of the programme is to introduce and demonstrate to the Caribbean a new approach to local economic development (LED) that is not driven by central government but rather has local government agencies, local businesses, local stakeholders and community groups at its center.

An important element of the programme’s approach towards enhancing local capacity is support to communities such as Laborie, which meet the stated criteria, to develop a LED Strategic Plan (LSP).In this regard, CARILED has agreed to partner with the Laborie Development Foundation in the conduct of a LED Strategic Plan for the district of Laborie.

1.2 Local Economic Development(LED)

Local Economic Development is a process by which public sector, business and civil society work collectively to create better conditions for economic growth and employment generation. Its purpose is to build up the economic capacity of a local area to improve its economic future and the quality of life for all.

LED operates on the following key principles:

• To promote equitable and sustainable economic growth;
• To engage in a multi-stakeholder partnership, for example, government, business, non-governmental organizations and communities;
• To acknowledge the Private Sector as the engine of employment and growth,and thus its “enabler” role in setting the right environment for the local economy to grow; and
• To promote transparent and accountable governance throughout the political and economic structures in the community.

Furthermore, there are generally five stages in the process of planning for local economic development as denoted below. It should be noted that this process is iterative; the continuous review and assessment of the Strategic Plan is done to determine whether adjustments or new shifts need to be made given updated information and a changing environment.

i)Stage 1:Organizing the LED Team - This period is aboutgetting commitment, consensus and building trust,identifying the stakeholders, forming a core team, determining organizational capacity, and planning the strategic planning process;

ii)Stage 2:Developing a Local Area Economic Profile - This stage entails the gathering and analysis of information that provides useful perspectives for understanding the local economyand facilitates economic planning;

iii)Stage 3:Developing the LED Strategic Plan -This stage is a consultative process where the LED Core Team engages broader stakeholders to formulate the LED Strategic Plan. It is important that a variety of stakeholders are targeted to balance economic development with environmental and social priorities. The Strategy should contain a common vision, goals and objectives as well as specific programs and projects aimed at achieving the priority objectives;

iv)Stage 4: Implement the LED Strategy - Stage 4 is when the Project Action Plans guide the carrying out of programmes and projects identified in the LED Strategic Plan;

v)Stage 5: Review the LED Strategy - This stage involves monitoring and evaluation activities, reviewing and enhancing by the LED Core Team and key stakeholders. This is important to quantify outcomes, justify expenditures, determine needed enhancements and develop good practices.

1.3 Local Area Economic Profile (LAEP)

This document represents Stage 2 of the LED process in the planning for local economic development in the district of Laborie, which is a vital input for the formulation of the LED Strategic Plan in Stage 3.Understanding the total economy (both informal and formal) is an important step and requires communities to assess local assets and determine what resources are available to move forward.

The aim of the local economic assessment/profile is to identify Laborie’s strengths and weaknesses including its human resource capacity, local government's 'friendliness' to all types of business activities from informal to corporate, and the opportunities and threats facing the local economy.

A broad range of methods were used to collect the required data for the local economic assessment. These include:

• Desk review of pertinent documents;
• Quantitative and qualitative information;
• Statistical data analysis (national and local);
• Questionnaires and surveys (local business enabling environment and business attitude surveys); and
• Structured/unstructured interviews (face-to-face, group discussions).

A Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis was then used to analyze the data gathered, determine the opinions and perceptions of the community, identify and project future trends and issues for LED strategy development, and define appropriate policy responses that build LED opportunities. The results of the SWOT analysis are most helpful in defining the focus of the LED Strategic Plan. That is, the issues identified will inform the crafting of the vision, goals, objectives and design of programs and projects that will maximize the strengths, address the weaknesses, take advantage of the opportunities and mitigate threats.

2.THE DISTRICT OF LABORIE

2.1 Geography and Population

The district of Laborie is located on the south-westcorner of Saint Lucia, ten (10) kilometres from the Hewanorra International Airport to the south-east, a thirty (30) minute drive to the town of Soufriere to the north-west, and fifty (50) kilometres from the capital city of Castries to the North,(Laborie Development Foundation official website, 2016). This district is a combination of rural (Banse/La Haut) and urban (Laborie Village) landscapes, with undulating hills and valleys near the interior, descending towards the coast/beach front, (see Map 1 below).

The district of Laborie consists of the following communities: Laborie town and village,

MacDomel, La Haut/Olibo, Piaye, Banse, La Grace, Londonerry/La Perle, Darban/Giraud, Saltibus, and Balca/Park Estate, (Central Statistics Office official website: p.28, 2010)

Map 1: District of Laborie

According to the 2010 Saint Lucia Population and Housing Census – Preliminary Report, the population of Laborie is an estimated six thousand seven hundred and one (6,701) with three thousand three hundred and forty-six (3,346) males and three thousand three hundred and fifty-five (3,355) females, (Central Statistics Office: p.2,5, 2010 ). Between 1991 and 2010, Laborie has experienced a steady decrease in the populationat a rate of -9.0 percent, (Central Statistics Office official website: p. 6, 2010).

Table 1: Laborie - Population Decline 1991 to 2010

Year / Population / Percentage Change (%)
1991 / 7,491 / 1.7 (’91 – ’00)
8.9 (’01 – ’10)
2001 / 7,363
2010 / 6,701

The decreasing population of the district may be attributed to multiple factors such as: 1) the migration of residents to other districts in search of employment and other opportunities; and 2) better management of family planning such as the increased availability and use of contraceptives.

2.2 Public Assets

The village of Laborie is nestled between the Morne Leblanc and La Croix roads, extending inwards to Banse and the surrounding areas. The community is equipped with basic social infrastructure including:

• A Police Station located on Father Brochard Street;
• The Laborie Post Office located on High Street;
• The Market Square also on High Street;
• The Velon John Administrative Building, which houses: 1) A Public Library; and 2) The Laborie-Augier Constituency Council Office (local government);
• Three (3) Primary Schools: Laborie R.C. Girls Primary School; Laborie Boys’ Primary School; and the Banse/La Grace Combined School;
• Once (1) Secondary School: Piaye Secondary School;
• One (1) Health and Wellness Centre located on La Croix Road, which serves as the primary healthcare institution and where specific doctors visit and provide care to elderly and disabled patients;
• The Rudy John Recreational Beach Park; and
• One jetty in Laborie Bay.

Laborie is also served by auxiliary institutions such as the Vieux-Fort Fire Station and the St. Jude’s Hospital in Vieux-Fort. Residents may also access the National Skills Development Centrelocated on the St. Jude’s Highway in Vieux-Fort. Similarly, the National Enrichment and Learning Programme (NELP) provides training in plumbing, electrical installment, cake making and decorating, and pastry making for residents through their evening training programmes at the Laborie Girl’s Primary School and Banse/ La Grace Combined School.

Furthermore, while there are no internet cafés or 24 hour public Wi-Fi spots in the community, approximately 23% of households have an internet connection,(Central Statistics Office official website: p.53, 2010 ). However, a more accurate indicator of internet access may be to determine the proportion of persons within the community with data plans on their mobile phones.

2.3 Socio-Demographic Indicators

1. Education

According to the2010 Saint Lucia Population and Housing Census – Preliminary Report, the majority of Laborians (44.9%) have a primary school level of education, suggesting a low level of literacy and numeracy skills among the population. Furthermore, a total of 8.5% of the population have attained some level of post-secondary education with the highest proportion of 5.9% in non-tertiary certifications,(Central Statistics Office: p.66, 2010).Given the positive correlation between educational attainment and employment and wages, these statistics give cause for concern in terms of the decreased spending power of individuals, the quality of life of residents, opportunities for sustainable livelihoods, and the development and prosperity of the community at large.

1. Employment

Reinforcing the above concerns, unemployment and underemployment are critical challenges for Laborie. Approximately twenty-four percent (24%) of males and thirty-one percent (31%) of females are unemployed, (Central Statistics Office official website: p.75, 2010). While the unemployment of males aligns with the national average, that of females is noticeably higher. Anecdotal data suggests this may be correlated to the significant number of single, female headed households within the community.

Anecdotal evidence also suggests that underemployment in on the increase, possibly contributing to the outflow of residents as persons become disenchanted with the lack of work opportunities.

In order to combat the issues of unemployment and underemployment within the community, an Economic and Employment Forum (EEF) was established in February 2015. During its short existence, this Forum was instrumental in the development of the Festèn Labowi- a monthly fish festival. Although this event only occurs once a month, it provides employment for approximately fifty persons.That is, of the fifteen (15) vendors contracted to sell at this event, each is required to employ three (3) persons. In addition, the forum hires persons to assist in executing the event such as an, electrician, sound/stage manager etc. The financial impact of this event will be discussed in section 3.4 – Arts & Culture.

Furthermore, the Forum is looking to introduce an Agricultural Project that will employ persons to farm short-and long-term crops, as well as introduce others to the farming of fresh water fish such as Tilapia to generate revenue. Lastly, they are conceptualizing an IT project to train persons so that they may be equipped to set up a small business upon completion of the training. Suffice it to say, the EEF has been very active since its inception in creating new and innovative avenues to generate employment opportunities for residents.

Moreover, Wilrock Ltd. quarry and the Laborie Cooperative Credit Union Ltd. currently provide the most employment opportunities in the community hiring ninety (90) and thirty-six (36) persons respectively. Otherwise, residents find work outside of Laborie, that is, in the capital city of Castries or other work-vested areas.

One key challenge for persons, particularly women with children, in the search for employment is the limited support services.Overall, programmes aimed at assisting vulnerable groups have been unsustainable due to the lack of capacity for long-term funding as experienced with groups like the Red Cross and the Lion’s Club.

1. Crime

Laborie is generally considered a safe community. According to anecdotal reports there have been no reports of crimeswithin the last three (3) months (November 2015 – January 2016). However, it must be noted that this fails to take into account the reality that some cases are not reported to the Laborie Police Station. Traditionally, criminal acts committed in Laborie included the sale of cigarettes and alcohol to minors.

The low level of criminal activity may also be attributed to the presence of uniformed and non-uniformed police officers who patrol the community, with increased presence during mass crowd events. Althoughno official neighborhood watch exists, residents are vigilant and will report any suspicious activity.

1. Other

The district of Laborie has several community organisations that play an important role in enhancing the everyday life of residents and creating a greater sense of belonging. They actively host and participate in various community activities such as: karaoke; fundraising events; sporting events such as “Small Goals” football competition; cultural performances; Bingo; and County and Western dances etc. The listing of organisations is as follows:

Table 2: List of Community Organisations

Type of Organisation / Number / Name of Organisation
Sports Clubs / 6 / Veterans Football Club; Herbalist Football Club; Testanier New Generation; Pascal Joseph Football Club; Alez Football Club; Country Strikers Youth and Sports
Social Clubs / 2 / Laborie’s Mothers and Fathers group; and Club 60
Youth/Cultural Groups / 6 / Laborie Steel Pan; Midnight 45 (a young music band); Les Ti Jean Labowi and Mokoflix (2 stilt walking groups); Twadisyon O'piaye (young folk dance group); and Laborie volunteer chapter.
Church Groups / 3 / Couples for Christ; Legion of Mary; and St. Vincent Du Paul

However, based on interviews conducted, cultural, sporting and leisure activities wereconsidered inadequate, particularly in the rural areas.A need for infrastructure such as lighting for the Laborie playing field as well as improvements and proper maintenance of this and similar assets in communities like Banse were identified. In addition, access to proper training in the production of artistic and cultural productions was identified as identified as a key to harness the full potential of organisations such as Labowi Promotions and the various youth and social clubs.

3. ECONOMIC PROFILE

Laborie’s economy consists predominantly of five sectors: MSMEs, Fisheries, Agriculture, Arts & Culture, and Tourism.

3.1 MSMEs Sector

According to the 2010 Saint Lucia Population and Housing Census – Preliminary Report, Laborie has two hundred and sixty-one (261) business places, (Central Statistics Office official website:p.17). Within the village of Laborie, the commercial landscape consists of approximately one quarter (68) of these businesses, which is constituted as follows:

Table 3:List of Businesses in Laborie

Type of Business / No. of Businesses / Breakdown of Category
1. / Food and/ Beverage / 54 / 20+ rum shops; 8 restaurants; 25 small grocery stores/snackettes; Fresh Eggs (wholesale supply of eggs nationally)
2. / Retail Trade / 7 / 6 Clothing retailers, 1Jn Pierre’s Enterprises (whole sale/ retail of groceries, clothing, hardware, farm feed etc.)
3. / Arts and Crafts / 1 / Anse Kawet Crafters
4. / Mining and Quarry / 1 / Wilrock Ltd.;
5. / Electricity, Gas / 3 / Gas stations;
6. / Trades / 5 / Mechanic services;
7. / Financial Institutions / 3 / Laborie Cooperative Credit Union Ltd.

It should be noted that the focus here is on MSMEs that fall outside of the main economic sectors identified. In this vein, the majority of businesses are micro to medium sized, sole proprietorships and operated by women over the age of thirty-five (35) years old.

One challenge for MSMEs sector is the plethora of snackettes. Although the establishment of this type of enterprise may appear to be an easy win due to the low start-up costs and the relatively low perishability of goods, they create a number of unintended consequences. These include: 1.) reducing the diversity of food options due to the flooding of the market with the same goods; 2.) limiting the choices of residents; 3.) driving the prices of goods down due to the stiff competition and therefore reducing potential earnings; and 4.) creating a high concentration of processed and unhealthy foods for consumption that are linked to increases in non-communicable/lifestyle diseases such as diabetes and hypertension.

Nevertheless, the influx of individuals pursuing self-employment vis-à-vis more traditional forms of employment denotes a trend towardsentrepreneurship. This would be in line with national trends as the high unemployment rate and limited job opportunities have forced persons to seek out create and innovative ways to generate an income.Accordingly, some residents in Laborie have capitalised on gaps in the marketleading to an increase in the provision of services within the informal sector ranging from beauty-care and housekeeping to child care in response to the needs of residents. It should be noted that residents identified some hair salons, massage parlors and barbershops as long established enterprises within the community; however, whether they are registered businesses or part of the informal economy must be further investigated.