Strengthening Saint Lucia’s Safety Net to respond to Future Shocks

According to the Saint Lucia’s 2016 Survey of Living Conditions and Households Budget, annual Social Safety Net (SSN) spending average at 1.3 percent of GDP. Despite this spending, Saint Lucia’s Poverty Head Count (Poverty Rates) for three consecutive Country Poverty Assessment periods averaged at 26.3 percent. A number of deficiencies including administration, financial, infrastructural, and lack of technological application have hindered SSN system in Saint Lucia. A Granger Causality employing quarterly data from 2008 to 2019 supported that SSN spending concluded that SSN does not granger cause GDP however GDP granger cause SSN spending up to a 2 year period. Global country cases are highlighted to demonstrate how technology through the use of card based, mobile technology and biometric platforms have reduced cost and enhance operational efficiencies of SSN systems. Streamlining the SSN system and adopting global best practice can potentially enhance in Saint Lucia SSN systems.

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