Dominica

Dominica's economic situation deteriorated with the dramatic decline in competitiveness and profitability of the banana industry aggravated by the effects of a catastrophic hurricane in 1998 the effects of September 11th and its depressing impact on tourism. Economic growth slowed down considerably and fiscal imbalances rose, exacerbating the already weakened fiscal position of the country. The IPRSP and then the PRSP were developed as part of the Economic Stabilization Programme which the country has undertaken for the last three years and allowed Dominica access to the Poverty Reduction and Growth Facility of the IMF.

The Government of Dominica, conscious of the impact of the protracted economic slowdown on the poorest segments of society (increase in unemployment and rise in poverty levels, particularly among the rural population) has taken the position that poverty can best be addressed through implementation of a comprehensive program designed to foster economic growth and private sector employment.  Moreover, the strategy will address the fiscal problem with the objective of eliminating fiscal imbalances and debt overhang. Government also seeks to implement structural reforms designed to address the country's lack of external competitiveness.  [link to page 15 (Objectives)  of Interim Poverty Reduction Strategy Paper Dominica, November 2003].

The PRSP will encompass achieving the MDGs within their framework. In Dominica the PRSP  is modeled on the consultative process of the Integrated Development Plan (IDP), designed to define and establish a participatory process for integrated development planning involving the private sector and wider civil society plan, as well as on  the CPS which aims at giving a voice to the poor. Both the IDP and the CPA encourage stakeholder participation at all levels.  

Given its economic precariousness, the challenge to Dominica is to formulate a suitable Poverty Reduction Strategy (PRS) that can inform domestic and economic growth concurrently.