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Development, Global Poverty

Seychelles Poverty

Seychelles Poverty
The Republic of Seychelles (pronounced say-shells) is a small island nation located in the Western Indian Ocean. The country consists of a whopping 115 tropical islands, although only 10 are inhabited. Most of the populated dwell on the largest island, Mahé, located 1,800 km east of the African coast.

With a population of 86,000 and an upper-middle-income socioeconomic status, the country gains most of its capital through fisheries and tourism.

Unpredictable weather patterns due to climate change have adversely affected the country’s ability to sustain small-scale farms and farming productivity. Given the tropical nature of the islands, agricultural land is scarce, resulting in the need to outsource for most of Seychelles’ basic commodities.

Being so heavily reliant on imports for basic goods and services, Seychelles is particularly vulnerable to global financial crashes and increases in food and fuel prices. Having to pay high freight and insurance fees to receive these goods from far-away Asia, it isn’t hard to see why Seychelles is one of the poorest island nations.

High shipping fees are not only a result of distance traveled but also the danger ships encounter along the way. Seychelles is at heightened risk for piracy in the Indian Ocean, resulting in the loss of many fisheries and popular tourism sectors.

20% of the population is estimated to be living in poverty, with 7% living in extreme poverty. With a highly unequal distribution of income, consumer patterns show that the poor devote a much larger percentage of their wealth to basic needs like food than wealthier citizens.

The government has made relatively excellent strides in improving basic health and educational needs. Infant mortality is under 5% per 20,000 births and child malnutrition rates at 6%. The primary educational enrollment is at 107%.

Seychelles’ poverty reduction strategy is described as follows:

“Sustained labor-intensive growth would help to reduce poverty to less than 8 percent and propel the country to higher social and economic development levels, provided that economic and social programs are re-oriented. The government has already accepted the need to increase the role of the private sector in the economy and to make basic policy changes that would free up the economy. The growth strategy could be built on the following elements: (i) reducing the role of the state, which presently dominates all productive sectors; (ii) increasing competitiveness in terms of labor cost and labor quality and (iii) developing human resources, particularly marketable skills. Government regulations on economic activity should focus on preserving public safety and the country’s pristine natural environment. The government should increase investment in productivity-enhancing areas such as infrastructure and human resources development.”

There is still work to be done, though, in the beautiful land of Seychelles. Over the past 20 years, employment has dropped for people in rural parts of the country due to the conversion of farmlands into other uses.

Recognizing this, the government is promoting farming and the raising of livestock as a national pastime and considering it the most important part of its economic development strategy.

– Kali Faulwetter

Sources: World Bank, Rural Poverty Portal, iFad, Every Culture
Photo: Banff Centre

June 22, 2013
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