Identifier
Created
Classification
Origin
09PORTOFSPAIN261
2009-06-18 19:01:00
UNCLASSIFIED
Embassy Port Of Spain
Cable title:
TRINIDAD AND TOBAGO'S SOCIAL SAFETY NET
how-toVZCZCXRO2465 RR RUEHGR DE RUEHSP #0261 1691901 ZNR UUUUU ZZH R 181901Z JUN 09 FM AMEMBASSY PORT OF SPAIN TO RUEHC/SECSTATE WASHDC 9899 RUCNCOM/EC CARICOM COLLECTIVE
UNCLAS PORT OF SPAIN 000261
SIPDIS
E.O. 12958: N/A
TAGS: ECON SCUL SOCI TD
SUBJECT: TRINIDAD AND TOBAGO'S SOCIAL SAFETY NET
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY
UNCLAS PORT OF SPAIN 000261
SIPDIS
E.O. 12958: N/A
TAGS: ECON SCUL SOCI TD
SUBJECT: TRINIDAD AND TOBAGO'S SOCIAL SAFETY NET
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY
1. (SBU) SUMMARY: Trinidad's social safety net for adults able to
work consists of two major work programs and a variety of training
programs. While successful in alleviating extreme poverty, they have
not lifted individuals permanently out of poverty nor made them self
sufficient. The economic downturn may reduce GOTT's ability to pay
for these programs. END SUMMARY
Work Programs Don't Impart Skills
--------------
2. (SBU) The Unemployment Relief Program (URP) and the
Community-based Environmental Protection and Enhancement Programme
(CEPEP) employ over 20,000 workers with limited skills and
qualifications. The typical employee is single, female, 42 years
old, with primary level education, and the head of a four person
household. Employees work in the mornings cleaning streets,
sidewalks, public parks, and beaches of debris and dead animals,
trimming weeds and clearing gutters. The CPEP and URP workforce is
64% Afro-Trinidadian, 13% Indo-Trinidadian, and 23% bi-racial.
Currently, minimum wage in T&T is TT $9.00 per hour (US $1.50).
Typically, employees work four hours and are paid between TT $9.00
and TT $10.00 per hour for an eight hour day.
3. (SBU) CEPEP and URP do not offer participants an opportunity to
learn skills that will allow them to earn a living wage.
Consequently, 49% of CEPEP and URP workers have been with the
program for over four years, 30% do not believe they could find
alternate employment, and 73% claim program wages are their sole
source of income. In a 2008 CEPEP Impact Report, GOTT claimed a net
economic gain of TT$446 million based on the program's contribution
to national welfare and the positive impact of training and
"meaningful work" for those normally excluded from the formal
economy. While URP offers specialized training programs such as the
Women's Program and the Multi-Sector Skills Training Program (MuST);
these "earn to learn" programs are widely seen as attractive
alternatives to road cleanup and not as avenues to career
development.
Never-ending Training
--------------
3. (SBU) GOTT funds several training programs to help Trinbagonians
secure or create employment. The Youth Training and Employment
Partnership Program (YTEPP) and the Youth Business in Trinidad and
Tobago (YBTT) develop future entrepreneurs through classes and
mentoring. Graduates of the programs are given a small business loan
and continuous mentoring. However, many graduates continue to seek
additional training with other government funded programs instead of
starting a business. Business sector contacts complain there is
little coordination between programs and little practical assistance
for program participants to become entrepreneurs.
Politics and Money
--------------
4. (SBU) There is a strongly voiced general sentiment that CEPEP,
URP, and training programs are strategies for the Peoples National
Movement (PNM) to retain control of government by securing votes
from the poor. Citizens complain that employees work only half of
the day and are simply collecting checks. Business owners claim
that the programs are affecting the available work force by lowering
demand for private sector employment.
Social Programs May Be Unsustainable
--------------
5. (SBU) GOTT spent TT$1.2 billion on the CPEP program between 2002
and 2007. In 2007, GOTT spent TT $273.4 million on CEPEP. GOTT
expects to spend 13% of the national budget on social services and
pensions in 2009. Due to the economic downturn, GOTT was forced to
reduce government spending by TT$5.3 billion in 2009. Additionally,
private companies are laying off employees due to decreased
revenues. In February 2009 over 2,000 jobs were reportedly lost in
the construction sector alone. Although Prime Minister Manning has
publicly stated that social programs are not in danger, GOTT may be
forced deeper into deficit spending to sustain their funding if the
economy goes into recession by the third quarter of 2009, as some
local economists continue to predict.
6. (SBU) COMMENT: While T&T's social programs prevent some
Trinidadians from living in extreme poverty, they are also creating
a dependent population. Post will continue to report on the
effectiveness and sustainability of T&T's social safety net. END
COMMENT.
KUSNITZ
SIPDIS
E.O. 12958: N/A
TAGS: ECON SCUL SOCI TD
SUBJECT: TRINIDAD AND TOBAGO'S SOCIAL SAFETY NET
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY
1. (SBU) SUMMARY: Trinidad's social safety net for adults able to
work consists of two major work programs and a variety of training
programs. While successful in alleviating extreme poverty, they have
not lifted individuals permanently out of poverty nor made them self
sufficient. The economic downturn may reduce GOTT's ability to pay
for these programs. END SUMMARY
Work Programs Don't Impart Skills
--------------
2. (SBU) The Unemployment Relief Program (URP) and the
Community-based Environmental Protection and Enhancement Programme
(CEPEP) employ over 20,000 workers with limited skills and
qualifications. The typical employee is single, female, 42 years
old, with primary level education, and the head of a four person
household. Employees work in the mornings cleaning streets,
sidewalks, public parks, and beaches of debris and dead animals,
trimming weeds and clearing gutters. The CPEP and URP workforce is
64% Afro-Trinidadian, 13% Indo-Trinidadian, and 23% bi-racial.
Currently, minimum wage in T&T is TT $9.00 per hour (US $1.50).
Typically, employees work four hours and are paid between TT $9.00
and TT $10.00 per hour for an eight hour day.
3. (SBU) CEPEP and URP do not offer participants an opportunity to
learn skills that will allow them to earn a living wage.
Consequently, 49% of CEPEP and URP workers have been with the
program for over four years, 30% do not believe they could find
alternate employment, and 73% claim program wages are their sole
source of income. In a 2008 CEPEP Impact Report, GOTT claimed a net
economic gain of TT$446 million based on the program's contribution
to national welfare and the positive impact of training and
"meaningful work" for those normally excluded from the formal
economy. While URP offers specialized training programs such as the
Women's Program and the Multi-Sector Skills Training Program (MuST);
these "earn to learn" programs are widely seen as attractive
alternatives to road cleanup and not as avenues to career
development.
Never-ending Training
--------------
3. (SBU) GOTT funds several training programs to help Trinbagonians
secure or create employment. The Youth Training and Employment
Partnership Program (YTEPP) and the Youth Business in Trinidad and
Tobago (YBTT) develop future entrepreneurs through classes and
mentoring. Graduates of the programs are given a small business loan
and continuous mentoring. However, many graduates continue to seek
additional training with other government funded programs instead of
starting a business. Business sector contacts complain there is
little coordination between programs and little practical assistance
for program participants to become entrepreneurs.
Politics and Money
--------------
4. (SBU) There is a strongly voiced general sentiment that CEPEP,
URP, and training programs are strategies for the Peoples National
Movement (PNM) to retain control of government by securing votes
from the poor. Citizens complain that employees work only half of
the day and are simply collecting checks. Business owners claim
that the programs are affecting the available work force by lowering
demand for private sector employment.
Social Programs May Be Unsustainable
--------------
5. (SBU) GOTT spent TT$1.2 billion on the CPEP program between 2002
and 2007. In 2007, GOTT spent TT $273.4 million on CEPEP. GOTT
expects to spend 13% of the national budget on social services and
pensions in 2009. Due to the economic downturn, GOTT was forced to
reduce government spending by TT$5.3 billion in 2009. Additionally,
private companies are laying off employees due to decreased
revenues. In February 2009 over 2,000 jobs were reportedly lost in
the construction sector alone. Although Prime Minister Manning has
publicly stated that social programs are not in danger, GOTT may be
forced deeper into deficit spending to sustain their funding if the
economy goes into recession by the third quarter of 2009, as some
local economists continue to predict.
6. (SBU) COMMENT: While T&T's social programs prevent some
Trinidadians from living in extreme poverty, they are also creating
a dependent population. Post will continue to report on the
effectiveness and sustainability of T&T's social safety net. END
COMMENT.
KUSNITZ