saint lucia

Country: Saint Lucia 

Capital City: Castries 

Area: 238 square miles

Population: 182,790 (World Bank)

Life Expectancy: 75 years 

Currency: Eastern Caribbean Dollar (ECD)

Major Language: English

Astrazeneca 1st Dose Vaccinations: 37,107

Astrazeneca 2nd Dose Vaccinations: 32,726

Pfizer-BioNTech 1st Dose Vaccinations: 15,830

Pfizer-BioNTech 2nd Dose Vaccinations : 11,513

Total Vaccines to date: 97,176

Estimated % of population vaccinated: 26.6%

Number of Confirmed Cases of COVID-19: 12,851

Number of COVID-19 Deaths: 271

Number of Critical Cases : 7

Castries, SEPTEMBER 13, 2022 (MIC) -

At its inception eighteen months ago, the Media Institute of the Caribbean (MIC) COVID-19 Monitoring Hub set out to investigate the initial cost of the COVID-19 pandemic for Caribbean governments as they braced to negotiate and survive the global health sector crisis, economic contraction and social dislocation portended by the pandemic. In the ensuing months, the Hub sought to track the management of the response across the region, with a focus on expenditures and status of COVID-19 loans and grants, pandemic-induced pressures on citizens and governments, and how the pandemic was influencing countries development priorities.

SAINT LUCIA’S 3-PRONGED TRIAGE RESPONSE

As a Member State of the OECS Economic Union and CARICOM, Saint Lucia’s approach to  implementing the initial COVID-19 response replicated a regional collaborative strategy set by regional heads. 

The three-pronged triage strategy launched with a Public Health programme in March 2020. Its focus was on expanding healthcare capacity, strengthening first response capabilities, establishing quarantine and isolation facilities, boosting the Personal Protective Equipment (PPE) stockpile, acquiring ventilators and instituting social movement controls. These initiatives were primarily financed  with a US$5.5 million World Bank/ International Development Association (IDA) loan reallocated from a pre-existing loan (US$68 million Disaster Vulnerability Risk Project World, 2014) and US$5 million, reallocated from a US$20 million loan secured in 2018  for a Health Strengthening Support Programme. US$16.97 million was borrowed from the European Investment Bank (EIB) in the last quarter of 2020 and also went towards interventions including Saint Lucia’s 2019 Novel Coronavirus Preparedness and Response Plan.  

The Government of Saint Lucia (GOSL) subsequently rolled out the social response component -dubbed the Social Stabilisation Programme. Income support ranging from EC$500 -$1,500 (US$185-US$555) monthly was made available through the National Insurance Corporation (NIC) to contributors (11,800), and through Central Government to 5,000 non-NIC contributors at EC$ 500 (US$185) monthly for three months. 

The third phase, an Economic Recovery and Resilience Plan (ERRP), focused on delivering credit and liquidity support to Saint Lucian businesses, and widening the coverage of government’s Public Assistance Programme (PAP), with monthly produce boxes and stipends to poor and vulnerable households between May and August 2020. Emergency financing (USD$29.2 million)  from the International Monetary Fund enabled the implementation of elements of both the social and the economic recovery response, and helped cover balance of payment obligations stemming from the outbreak of the COVID-19 pandemic. Additional financing of ERRP response interventions came from loans secured from the Caribbean Development Bank (CDB, US$30 Million, September 2020) and World Bank/IDA (US$30 Million, January 2021). The CDB subsequently approved a US $10.8 million loan to support mitigation of the macroeconomic fallout and adverse social effects of the COVID-19 pandemic. 

Saint Lucia’s Ambassador to the Organisation of East Caribbean States (OECS) and CARICOM, H.E. Elma-Gene Isaac sat with MIC on the subject of the pandemic, the response and lessons learned. Noting that the pandemic tested all areas of countries’ vulnerability, Ambassador Isaac reported that the immediate country response depended on both access to additional credit and grants from friendly governments.

Speaking in an interview last October, President of the Caribbean Development Bank (CDB) Dr Gene Leon says that CDB’s COVID-19 financing facilities to borrowing members had to consider their survival prospects under the weight of pandemic-induced economic contraction piled on top of pre-existing high debt to GDP ratios.

ECONOMIC TRENDS IN THE RECOVERY CURVE

From the dire outlook in 2020, 2021 was characterized by a number of indicators which suggested the steady rebounding of the economy: the reopening of borders, double-digit growth rate resulting from increased external demand for goods and services and a 19.7 percent increase in construction activity buttressed by public projects and new private sector investments in the hospitality and manufacturing sector. Despite global supply chain bottlenecks, demand for alcoholic beverages in the export market raised manufacturing output by 37.5 percent to a record high value of US$203 million. Agriculture registered an increase in real GDP of 5.1 percent. These, but especially developments in the travel and hospitality sector catalyzed economic activity, returning approximately of 70.5 percent of the active labour force to full-time work. In 2021, tourism attracted 54.7 percent increase in bed-nights at a value of US$1.6 million. 

Higher local ownership in the financial services sector, Mr. St. Catherine explained, can potentially open up more access to finance for investment for local entrepreneurs, thereby increasing homegrown investment in the economic recovery. However, the impact of global supply chain disruptions on inflation further contributes to rising import costs which can impede profitability for existing and new enterprises.

COUNTING THE COST OF THE 3RS: Rescue, Recovery and Repositioning 

Twenty-nine months into the pandemic Saint Lucia’s COVID-19 debt stands at US$119 million. 

Prior to the pandemic, borrowing to build resilience to climate change and resultant imperatives to enhance growth prospects were already inflating the country’s debt to concerning levels. However, Saint Lucia had managed to keep public debt below the regional average and within its 2011 to 2020 average of 6.0 percent. This changed in 2020, with new loans to implement the country’s rescue, recovery and repositioning programme.

COVID-19 borrowing dominated 2020 but in 2021 concessional budgetary support and loan-financed projects for road improvement projects as well as the ongoing St. Jude Hospital Reconstruction Project accounted for a US$126 million increase in the public debt stock. While capital projects put people back to work and stimulated welcome economic activity, Mr. St. Catherine notes that commensurate revenue injection lightens the burden of debt servicing on government.

CDB President Dr Gene Leon describes the fiscal position of many borrowing members as tenuous.

According to the Saint Lucia Economic and Social Review 2021, Saint Lucia’s public debt now stands at 90.6% of a GDP of EC$4.13 billion (US$1.5 billion). With the capping off of moratoria on external loans at March 2021, Saint Lucia’s total debt service payments rose by 7.2 percent to US$105 million which accounts for 28.9% of current revenue.  At this time, one third of the outstanding debt of central government is owed to multi-lateral and bi-lateral creditors. Local banks (40.8 percent) and the National Insurance Corporation (16 percent) hold the balance. 

GOSL’s estimated expenditure to steady the economy boat and steer it into growth streams in the fiscal year 2022- 2023 is in the region of EC$1.84 billion (US$680 million). On the revenue side, projections – inclusive of grants, is in the range of EC$1.327 billion (US$481 million).

While noting that higher interest rates will be a likely consequence of the impact of war in Ukraine on the global economic environment, Saint Lucia’s Prime Minister Hon. Phillip J Pierre is hopeful that his government can meet debt servicing obligations within approved estimates for this fiscal year.

The Prime Minister articulated a three-pronged plan to manage debt sustainability. First, the Saint Lucia Medium Term Debt Management Strategy (MTDS) will “lengthen the maturity profile, reduce rollover risk, and reduce the cost of borrowing by seeking lower interest rates.” Second, a newly enacted Public Debt Management Bill will consolidate all laws pertaining to debt and address ambiguities and inconsistencies in existing pieces of legislation. The third initiative involves reforms to the Public Finance Act and Procurement legislation for practical for use across Government from the level of ministries to departments and agencies.

These reforms take their cue from the World Bank and International Monetary Fund (IMF)  play books for rebuilding from the pandemic. 

VULNERABILITIES AND STRENGTHS 

High Level of Indebted and IFI’s Approach

The issue of debt – in particular financing terms and conditions from International Financial Institutions (IFIs) is a millstone around the necks of Small Island Developing States (SIDS). Ambassador Elma-Gene Isaac says the characterization of vulnerability by Gross National Income is problematic for SIDS, as it exacerbates the vulnerabilities of OECS countries and further constrains them in finding a foothold on the tenuous terrain of the changing climate and vulnerability to multiple hazards.

In the region, as in most parts of the world, Ambassador Isaac cited the extreme inadequacy of health systems to cope with the pressures of pandemic. 

Health System

On the 2021 Global Health Security Index, Saint Lucia ranked higher than the global average in the areas of Rapid Response (SLU 40.1%, GA 37.6%,), International Compliance (SLU 56.1%, GA 47.8%) and Risk. The latter assesses risk related to political climate and security, socio-economic resilience, adequacy of infrastructure and environmental risks and vulnerabilities specific to public health. At a score of 62.7% Saint Lucia passes the global average by almost 8 percent. The country’s overall score of 34.7 percent places it at 100 out of 195 countries.

However, in critical areas such as Prevention of infectious diseases (SLU 14%, GA 28.4), Health System Management (SLU 14.4, GA 31.5 %) and Detection and Reporting (SLU 20.6%, 32.3%), the country is behind. The country registered severe capacity constraints in Detection and Reporting, notably in real-time surveillance and reporting, case-based investigation, laboratory systems strength, quality and supply chains. In the area of Health Systems Management, Saint Lucia averaged one percentile point below the global average (55.2%) for Access to Health Care, however severe capacity deficits show up in Infection Control Practices, Supply Chain for Health System and Health Care Workers, Medical Countermeasures and Personnel Deployment (0%). See Saint Lucia’s full report here.

According to the 2021 GHI report, all countries remain dangerously unprepared for future epidemic and pandemic threats, including threats potentially more devastating than COVID-19. 

Still, according to Minister of Health Hon. Moses Jn Baptiste, the pandemic precipitated moderate investments in health infrastructure, surveillance, testing, prevention and control measures, processes and training - all of which translate into, value-added for Saint Lucia’s Health Management System. 

till Minister of Health Hon. Moses Jn Baptiste, the pandemic precipitated moderate investments in infrastructure, surveillance, testing and training which constitutes value-added for Saint Lucia’s Health Management System.

Across the international medical science community, the consensus is that the world is experiencing a “Pandemic Era” due to population dynamics vis a vis economic, infrastructure, and healthcare inequalities, contact with and consumption of animals, the potential of climate change to spread of infectious diseases, and increasing antimicrobial resistance.  

Food Insecurity 

Heavy reliance on imported food, and a total dependence on imported pharmaceuticals have been cited by Ambassador Isaac as two other areas of “critical” vulnerability for Saint Lucia and the region.

Regional Cooperation Mechanisms

In the COVID-19 learning curve, while the pandemic magnified health systems, liquidity and other vulnerabilities, Ambassador Isaac said that it also proved the logic of regionalism and the capability of regional institutions to support Member States and increase their capacity to respond to events that threaten their survival.

Access to financing was critical for countries’ strategic response and Ambassador Isaac went on to describe the posture of regional banks as “highly responsive”, in that regional lending partners provided financing options tailored to the priorities of each phase of the response.

REVISIONING THE FUTURE – LESSONS LEARNED

While their size contributes to their vulnerability to environmental and external shocks, it may have proved an advantage for the OECS SIDS in aspects of the Response in the early stages of the pandemic. This is evidenced by the rapidity with which they mobilised  border closures, management of lockdowns and social distancing measures to contain the spread of the virus. According to UNESCO, on the basis of numbers of infected Covid-19 cases per capita, Caribbean SIDS have fared much better as compared to other larger countries. However, with the weight of their economic fortunes weighing heavily on one or two sectors - but primarily on tourism, the socio-economic outcomes have been significant. In terms of tourism, the pandemic highlighted the extent to which the sector is dependent on the economic fortunes of their source markets. For Member States where agriculture contributed meaningfully to GDP, the removal or preferential treatment in the 2000s precipitated significant declines in that sector. However, “While this crisis is calling into question the existing development paradigms, it paves the way for new currents of thought and for rethinking the future of SIDS in a sustainable way”. 

Director General of the OECS, Dr. Didacus Jules is of that view.

At the level of the Eastern Caribbean Economic Union, the OECS Commission is championing an integrated economic development paradigm for the sub-region. 

These lessons reinforce the critical need for OECS and CARICOM countries to move quickly to address health system vulnerability and food insecurity, broaden their diplomatic horizons, lobby for IFI reforms for softer financing terms, protect and build on the evident strengths of regional cooperation mechanisms and shift their Green and Blue Economy agendas from ideas, academic discussions and wish-lists into tangible investments in historically under-developed arenas like regional transport. 

Strengthen Health Systems 

Health Systems strengthening has implications for a broad spectrum of response, prevention, detecting and reporting and systems management resources and capabilities, some of which are areas under review by regional health authorities.

“Our health systems must be strengthened, there is no getting away from that,” Ambassador Issac said. “So what is the capacity and adequacy of the facilities we have? How are we providing access, universality of access because you will see that it is the most vulnerable who end up also being the worst affected in situations of crisis. What about health insurance availability and again, universally acceptable health insurance? So as we have to, as a region look at, the OECS is just about half a million people so what can we do as a grouping to ensure that we have health insurance for all of our people at affordable rate? And then the production capability, the production capacity in terms of pharmaceuticals and medical equipment.” 

 Innovate for Food Insecurity

Within the wider region, the recommendations from the fourth CARICOM/World Food Programme COVID-19 Food Security and Livelihoods Impact Survey in April 2020 highlighted areas of priority focus for the regional strategy to make the region meet its food needs.

CARICOM Member States have set themselves a target of 2025 to effect a 25% reduction in the food import bill.

At the level of the Eastern Caribbean Economic Union, a seven-pronged agricultural “revolution” is a core pillar of the economic-reset strategy referenced above by the OECS Director General. This “revolution” has been more fully described in MIC’s May 2022 Saint Lucia report.

Expand The Cooperation Horizon

Ambassador Isaac says another critical move for the region is the expansion of international relationships – in particular South/South Co-operation as a means of exploiting good-fit development synergies and expanding the arena of lending partners available to OECS and CARICOM countries.

“We must look more to the south, what can we do to expand South/South cooperation?” Ambassador Isaac  asked. “I indicted that with Africa, we looked at the Africa Medical Supplies Platform but we are also looking at expanding diplomatic relations. So the government of Kenya provided CARICOM with facilities for a diplomatic mission and we have a couple of countries like Barbados, where has already taken up residence there, already appointed its ambassador to Kenya and we are looking also at Ghana and ultimately whether we can in fact establish in the African Union. So we are moving into Africa and Africa similarly is appointing its representatives to CARICOM countries.” 

On September 7 2021 at the height of the pandemic, a historic inaugural virtual CARICOM-Africa Summit was held in Kenya during which the two regions agreed to pursue avenues to strengthen collaboration and unity and to foster increased trade, investment and people-to-people engagement between the two regions.

On the first anniversary of the summit (September 1-2, 2022) at their second trade meeting, the two regions give effect to that agenda with the formalization of two partnership agreements, ten Memoranda of Understanding (MOU) and three finance facilities. The OECS Member States of Saint Lucia, Antigua and Barbuda, Dominica, Suriname, St. Kitts and Nevis and Saint Vincent and the Grenadines are among the seven Caribbean countries that have signed a Partnership Agreement with the Africa Import/ Export Bank to promote and finance South-South trade and investment between the regions. 

IFI Reforms

With respect to the issue of access to development financing, Ambassador Isaac says that unless International Finance Institutions recognize SIDs as “special needs” nations due to their compelling developmental challenges, the stranglehold of servicing debt will hinder, rather than enable the rate of real growth. Thus, she said, the lobby for change is critical.

The experience of St. Vincent and The Grenadines in 2021 highlights the unique challenges faced by SIDS navigating their resilience agenda within a multi-hazard environment. 

“When we were dealing with the pandemic, St. Vincent and the Grenadines had the eruption of the volcano and then we were entering into the hurricane season,” Ambassador Isaac said. “These three things were happening at once. This is muti hazard. That is the reality we face and when you take with that, the questions of debt and access to funding, then you realise, as a region, we cannot ever rest on our laurels, we cannot ever believe that all is well. When you think that you have development partners that will come to your defense or who will support you at a critical time and you realise that you are alone as a region, then you have no choice but to have your own operation bootstraps and lift yourself out of your difficulty. So we have to be creative, we have to be assertive. We have to stand up to the international financial institutions”.  

A Well-Oiled Regional Integration Machinery

Referencing the effective leadership of regional bodies in a coordinated response in the region, the Ambassador says what is now vital is ensuring that a regional integration system is functioning effectively, as it is vital for managing the recovery and for the survival of the region.

Establish Intra-Regional Transport

While the regional integration movement has been able to build enduring institutions, the age old problem of movement remains a major weakness. The ability to connect these countries, Ambassador Isaac says, will determine the true success of regional integration.  

Intra-regional travel is also critical to the OECS vision and ambitions to develop a blue economy.  The marine space in the sub-region is 85%larger than its land space, with a resource base that promises opportunities for clean energy, food security, poverty reduction and economic growth. For countries with very limited land-based resources, the marine space represents a new frontier for investments and innovations that can signal economic independence for the tiny economies of the sub-region. Ambassador Isaac says the time has come for bold moves, imagination and innovation.

According to the Ambassador, without transportation systems between neighbouring countries that are separated by ocean, the blue economy, and the dreams of food security (for regional economies without an agricultural base) will remain a “pie in the sky”.

For decades before what is now touted as the “Pandemic Era”, Saint Lucia and her regional neighbours were grappling to balance socio-economic development with the challenges that come with their susceptibility to natural disasters and hazards which have the potential to decimate the sectors that sustain their economies and support the livelihoods and wellbeing of their citizens. In that respect, the COVID-19 pandemic did not create the challenges they face as they envision their future. Against the grey shadow of potential crises that climate change portends for SIDS (public health, food insecurity, declining exports etc), the global pandemic made more urgent the need to overcome insularities that have historically plagued their efforts to stand as a single bloc of nations, and consolidate around their inherent strengths.

Castries, May 31, 2022 (MIC) -

A comparative review: 2020-2021

The COVID-19 Pandemic plunged Saint Lucia into the sharpest decline in the Eastern Caribbean Monetary Union (ECCU) and ranked 6th for economic decline globally. Coming out of a contraction of 24.4% in 2020, a 12.2% growth increase in real GDP in 2021 is a hopeful sign for the recovery for the economy. That growth was primarily driven by the steady rebound of tourism, the resumption of construction activity, and their spill-over effects on other pandemic impacted sectors like transport, retail and wholesale trade, and agriculture. 

After the resumption of the sector in March 2021, the country’s cruise schedule returned to optimum at the start of the 2021 winter season, maintaining this trend throughout the first quarter of 2022.

Tourism stay-over arrivals climbed out of the dramatic 2020 drop of 69.1%, to increase by 52.4% for 2021/22. These trends were still holding at the end of the first quarter of 2022. 

Construction activity - mainly from public sector projects, accounted for an estimated 20% of Real GDP. In agriculture, livestock production and fisheries increased by 21.2% and 8.9% respectively. Despite a decline in crop production due to Hurricane Elsa and decline in banana exports due to constraints in access to the United Kingdom (UK) market, overall, real value added of agriculture to GDP increased by approximately 5.1% in 2021. 

Slower recovery rates in manufacturing, retail and wholesale trade were attributed to pandemic related global supply chain challenges. Real value-added in manufacturing increased from a 0.4% contraction in 2020 to a growth of approximately 4.3 percent.

Overall unemployment in 2021 stood at 21.9% (from 24.9%, in 2020). Youth unemployment is at an estimated 37% representing a little over 15,000 youth. 

The impact of global supply chain disruptions and the rising price of oil continue to reflect in the price of imports, and consequently increases in the cost of basic food items such as rice (15%), flour (31%), brown sugar (28%) and white sugar (75%). Inflation is as such, a major concern for the government in terms of a cushioning mechanism for citizens – especially the economically vulnerable. 

Debt situation 

During his presentation of the Estimates of Expenditure for 2022-2023, Prime Minister Phillip J. Pierre placed Saint Lucia’s public debt situation at 90.6% of GDP of EC$4.13 billion (US$1.53 billion), inclusive of central government debt, government guaranteed debt, and public sector debt. COVID 19-related borrowing totaled EC$323 million (US$119 million). At July 2021, EC$301 million (US$111 million) had been drawn down, leaving an available balance of EC$19 million (US$7.3 million). 

Economic Outlook 

In a period of drastic global economic downturn, rising inflation and the far reaching war in Ukraine, Prime Minister Pierre anticipates an EC $5.47 billion (US$2.07 billion) increase in Gross Domestic Product (GDP) for Saint Lucia’s economy. The Caribbean Development Bank’s (CDB) projections of a 9.1% GDP growth rate across 19 Borrowing Member Countries, and the World Bank’s projections of a 9.6% economic growth rate for Saint Lucia appear to validate Saint Lucia’s targets. 

THE REACH FOR RECOVERY

At EC$1.84 billion (US$680 million), Saint Lucia’s 2022-23 budget is the largest to date but according to Prime Minister Pierre, necessary to bolster the country’s aspirations to build back for real climate and economic resilience. To this Prime Minister Pierre made it clear in his budget address that the Government of Saint Lucia’s (GOSL) recovery strategies focus on managing a list of major challenges confronting the country that include “achieving sustainable high levels of economic growth that support economic transformation and poverty reduction, securing fiscal and debt sustainability, building resilience and adaptation to climate change, reducing high levels of unemployment, especially among the youth, enhancing citizen security and creating a culture of good governance and intolerance towards corruption”. 

Richard Peterkin, Partner at Grant Thornton Windward Islands says the ambitions and projections outlined in GOSL’s Policy Statement seem to sound a number of right notes.  

Among the recommendations of the International Monetary Fund (IMF), there is the need for mechanisms to fight ‘economic long-COVID, navigate monetary tightening and shift focus to fiscal sustainability”. The IMF recommends equitable access for countries to a comprehensive COVID-19 toolkit with vaccines, tests, and treatments, as well as “disease surveillance, and health systems that reach the “last mile” into every community”. An allocation of EC$33.87 million (US$12.5 million) is on GOSL’s books to fund pandemic mitigation and control measures in this fiscal year. 

Balancing Debt, Revenue and Expenditure 

According to the IMF, an estimated 60 percent of low-income countries are in or at high risk of debt distress and “will need more domestic revenue mobilization, more grants and concessional financing, and more help to deal with debt immediately”. Six months into his first term in office, the Prime Minister stated that “ a herculean task” involving  policy coherence, efficient implementation, resource mobilization, elimination of corruption, transparency, and accountability is necessary to bring  the country’s financial situation to manageable levels and “achieve better economic outcomes” for the economy.

One IMF recommendation for economic recovery is “inclusive consolidation”, the premise of which is to maintain sustainability in public finances to preserve credibility and rebuild fiscal space, while spending on social programs, protecting public investment and tax reforms including personal income tax. GOSL’s debt management strategy borrows from this model as they propose to reduce dependence on short term high-interest borrowing in favour of long term financing with lower interest rates, ultimately, lengthening the maturity profile, reducing rollover risk and the cost of borrowing. According to Prime Minister Pierre, 80% of GOSL’s current financing needs are programmed from concessionary loans, as opposed to shorter term higher-cost bonds and treasury bills financing. The enactment of the Public Debt Management Bill is seen as a safeguard to give effect to efforts to return to prudential levels of borrowing, “and bring a high level of transparency and accountability.” 

An unprecedented level of personal income tax relief, wage increase for public servants, considerable widening of social protection, and increased subsidization of fuel, cooking gas, expanded MSME financing, and basic food items are some of the mechanisms proposed to cushion impacts for citizens. The government of Saint Lucia proposes to balance this cost to government with revenue derived from an overhaul of the tax system, more reliance on indirect tax, increased tax compliance and broadening of the tax base. Currently there is EC$1.2 billion (US$444 million) in unpaid taxes, interest and penalty charges on Inland Revenue’s books.

During the last financial year, underspending in the implementation of some climate adaptation and mitigation projects, resulted in a shortfall in projections (EC$121.26M) (US$44.8 million) for grants from friendly donors and development partners. The actual revenue from grants was EC$66.28 million (US$24.5 million). Speaking with MIC, Prime Minister Pierre explained that capacity constraints affect small countries’ efficiency in meeting the rigorous requirements that come with grants and loans. He said more often than not, this is why funds remain undrawn.

Projections for revenue and grants for 2022-2023 is in the range of EC$1.327 billion (US$481 million). According to Richard Peterkin, these projects are not unrealistic.

One of the biggest sources of financing is the Republic of China (Taiwan) which has made a commitment of US$250 million in grant assistance and concessionary loans for the next three to five years. Mr. Peterkin says this will be beneficial for GOSL’s fiscal management situation, as it indicates that there are aspects of government expenditure for which there is financing in place. On the revenue side, while these projections are ambitious, “it’s going to be subject to the completion of certain projects to be able to drawdown and it does assume that the trajectory growth of tourism and construction is going to allow for the income to government from tax revenue that has been achieved in the past,” Peterkin concluded.  

KEY SECTOR HIGHLIGHTS  

Infrastructure

Infrastructure is pivotal in GOSL’s Medium Term Development Strategy. The Infrastructure 2030 plan is pegged to attain GOSL’s Sustainable Development Goals (SDGs) targets. It aims to increase productivity and living standards through the development and upgrading of roads, air and seaports, water supply, sanitation, energy generation, and telecommunications. The purse to fund this thrust is EC$561.06 million (US$207 million) of which 68.7% constitutes Capital Expenditure with the lion share allocated for Infrastructural (30%) and Economic Development (22.06%). Other allocations under Capital Expenditure are in respect of Health (8.08%), Agriculture (5.95%) and Education (5.25%). 

A much touted focus under Economic Development is the Youth Economy. It is backed by its own ministerial portfolio and has an allocation of EC$10 million (US$3.7 million). The aim is to create space for prospective youth entrepreneurs in the economic system through support services and business opportunities in a range of sectors including sports, agriculture/agro-processing and the orange, blue and green economies. The Republic of China (Taiwan) is the source of 50% - EC$5.42 million (US$1.8 million) - of the EC$10 million (US$3.7 million) allocated to this initiative. 

Initiatives to enhance economic prospects in tourism are expected to flow from private sector investment and two public sector driven projects. A US$30 million upgrade of two Sandals resorts as well as commitments for construction of two other new resorts at a combined cost of US$67 million will increase room capacity by 261 and generate jobs.  An ongoing World Bank-funded project OECS Regional Tourism Competitiveness Project (ORTCP) will be focussing on improving selected tourism sites and capacity-building to support the recovery effort. EC$18.77 million (US$6.9 million) is provided in the Estimates for 2022/23 under the ORTCP. 

With support funding from the CARICOM Development Fund, Community Tourism is being fast-tracked as a sector diversification strategy to generate economic opportunity outside of the hotel accommodation sector. The end game is make room in the value chain for communities, MSMEs, and cultural producers. Minister for Tourism, Hon. Ernest Hilaire explains this in his Government Information Service report.  

 A Tourism Levy is in place to seed tourism related development.

Agriculture

The government of Saint Lucia’s plans for agriculture is to expand output aimed at strengthening food and nutrition security, create employment and increase export earnings. The expansion is proposed to include the continuation of the Seven Crop diversification programme, reestablish marketing presence for bananas and other crops in the UK market and explore a regional export market for bananas. In recent years, investments in the Apiary sector supported by nongovernmental organizations like the GEF Small Grants Programme have been showing positive outcomes. Plans are to push towards exports. Cocoa and sea moss are also fast growing as export commodities. The Prime Minister placed the increase of sea moss exports between 2018 and 2021 at “more than 11,000 percent”. With respect to cocoa, EC$1.4 million (US$ 520,000) is allocated for continued investment in the sector in the 2022-23 financial year. 

REGIONAL ACTION, LOCAL IMPACT

 As a member of CARICOM and the Organisation of East Caribbean States (OECS), Saint Lucia’s efforts can be bolstered by joint policy approaches being championed at the regional level to mitigate the threat of food and nutrition insecurity. 

 Speaking with MIC, OECS Director General Dr Didacus Jules disclosed a seven pronged economy-reset strategy for the OECS sub-region. It proposes an integrated economic development paradigm with an agricultural revolution as a core pillar. 

Dr Jules asserts that the pace of recovery in the OECS depends on whether Member States perceive  the pandemic for the game-changer it can be. From his vantage, Heads of State are energised and embracing of a new paradigm.

Looking Inward, Forging Ahead

The Saint Lucia government is navigating a path between two fires – a lingering global pandemic and a war in Europe with no foreseeable end. The war in Ukraine has strengthened the push by OECD countries to delegitimize Citizenship by Investment Programmes (CIP), which have been a veritable Foreign Direct Invesment (FDI) cash cow for the small economies of the OECS. Receipts from GOSL’s CIP in 2021 /2022 was EC$102.8 million (US$38 million), up by EC$30 million (US$11 million), the previous year, and projected for further increase this financial year. The CIP’s uncertain future has caused a deeper look inward. A Diaspora Investment Programme (DIP) is proposed to attract and enable investment from citizens at home and in the Diaspora, to allow them to be “fully engaged in the development process and the creation of opportunity and wealth”, Prime Minister Pierre has disclosed. 

Allocations are also in the budget to resume exploration for green energy sources.  World Bank financing to the tune of US$21.9 million has been secured for a 4 year (2022-2026) geothermal exploration project, to assess the viability of an estimated 30 Megawatt (MW) geothermal power plant. Financing for this second phase is by way of two grants from the Clean Technology Fund (EC$2.47 million) (US$910,000) and the Foreign Commonwealth Development Office (EC$5.96 million /US$2.2 million), and two loans from the International Development Agency (EC$2.67 million/ US$990,000) and the Canadian Clean Energy and Forest Climate Change Facility Fund (EC$1.39 million/ US$510,000). If successful, this could mean further relief for Saint Lucian consumers and potentially strengthen Saint Lucia’s competitiveness as a low-cost energy country.

Castries, February 23, 2022 (MIC) -

Health Sector Priorities, Pre-pandemic 

Until the COVID-19 Pandemic struck, the government’s priority focus for Saint Lucia’s health services sector included the completion of the construction of St. Jude Hospital - which was completely destroyed by fire in September 2009 - and on getting the long completed new Owen King EU (OKEU) Hospital fully fit-for-purpose. 

On the epidemiological front, GoSL had been actively pursuing strategies to manage the high incidence of non-communicable diseases (NCDs) and resultant pressure on state resources. The prioritization of health service delivery reform and the citizen health was made more urgent by the threat of climate change. Over the past decade Saint Lucia, along with her Caribbean neighbours, has been in climate resilience-building mode. Health sector resilience focuses on minimizing the potential of climate impacts that devastate health service infrastructure, derail the capacity of the health system to maintain general and critical services to acceptable standards, trigger climate induced vector borne diseases, and create food and nutrition insecurity which contribute to NCDs. 

At the policy level, the implementation of Universal Health Care (UHC) had been touted as both a manifesto promise and a government priority by successive administrations until today. A US$20 million loan was secured from the International Development Association (IDA) in September 2018 to roll out a high priority project to strengthen the country’s public health care system “and advance progress towards achieving universal health coverage.” The funding signaled the implementation of the Heath System Strengthening Project (HSSP), which would help GoSL to introduce new health services, provide financial incentives to improve service delivery, fully upgrade health infrastructure, and the scale up preparedness and response for public health emergencies.

Ministry of Health Permanent (MOH) Secretary Jenny Daniel told MIC that HSSP implementation has been delayed in its due in part to the ongoing pandemic.  MOH and the World Bank are currently restructuring to progress project implementation in this year. “The Performance Based Financing component of the HSSP has made significant progress and will be officially launched in April 2022.  This component seeks to improve, support and provide the requisite incentives for the delivery of quality health services within primary health care facilities,” she added.

In speaking with Chairman of the COVID 19 Management Centre, Mr. Cletus Springer, and the President of the Saint Lucia Medical and Dental Association (SLMDA) Consultant Nephrologist Dr. Merle Clarke, the Media Institute of the Caribbean (MIC) confirmed that while that the pandemic forced the redirection of funds from these priorities, this has not been without moderate post pandemic value added to health service delivery.  

Funding the initial Response

With public health emergencies accommodated under the HSSP loan, GoSL’s initial pandemic response was funded by a reallocation of  US$5 million from HSSP and US$5.5 million from an active World Bank loan (US$68 million, 2014 -2023) financing  GoSL’s Disaster Vulnerability Project loan, under the Contingency Emergency Response Components (CERC) Mechanism. This initial reallocation funded the reconversion and retrofitting of the previously main Victoria Hospital to operate as  a dedicated COVID-19 respiratory hospital for isolation and treatment, and the operationalization of the new Owen King EU Hospital. 

These projects fitted into pre-pandemic plans to expand healthcare capacity and infrastructure. The reallocation also financed the purchase of Personal Protective Equipment (PPE) and supplies for frontline personnel, strengthening of first response and capacity at the National Emergency Management Organisation (NEMO); subsidizing the cost of locals in State quarantine; strengthening port health facilities and processes; augmenting the availability of doctors and nurses with 110 personnel from Cuba including travel, accommodation and salaries; and a steady oxygen supply at the Respiratory hospital.  

Early infrastructural works included construction of an Isolation Facility at OKEU Hospital and at the southern hospital, electrical works at Gros Islet Polyclinic Clinic, purchase and installation of water tanks and rainwater harvesting systems to increase storage capacity at various health centres and ahead of the 2020 hurricane season. 

Funding for non-infrastructure projects were repurposed with permission of lending agencies and included US$3 million towards an Education Assistance Programme that provided support for back to school expenses to impacted households, the distribution of agricultural produce packages to 1,000 plus vulnerable households island wide on a weekly basis, an electricity assistance program  providing subsidies to over 3,000 households towards their electricity bills and the purchase of laptops for students from poor/low income households.

Counting The Cost 

Beyond government’s initial health sector response, the purse to manage the economic crisis and social impacts of the pandemic has been considerable with a number of grants and loans from multi-lateral agencies on the books. At the dawn of the pandemic, GOSL secured a US$10.8 million loan from the Caribbean Development Bank (CDB) in February 2020 to begin to address economic recovery. 

Saint Lucia’s share of an IMF disbursement of US$65.6 million to three OECS countries was US$29.2 million. Approved as a loan under the Rapid Credit Facility (RCF) mechanism in May 2020, the purpose of the loan was to help cover balance of payment needs stemming from the pandemic, as well as to upgrade public health facilities and provide social assistance to the vulnerable and adversely affected sectors.

Saint Lucia was one of the six OECS Member States beneficiaries of a US$50 million loan agreement between the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB) to help reduce mortality and morbidity from COVID-19, ensure minimum levels of quality of life and health for vulnerable people in the OECS, and provide support for Micro, Small and Medium-Sized Enterprises (MSMEs)”.

The estimated budget for Saint Lucia’s Economic Recovery and Resilience Plan (ERRP) is US$214.35 million. To date financing has come from a World Bank /IDA interest-free Loan of US$30 million and a CDB loan of US$30 million dollars. In late 2020, European Investment Bank (EIB) approved a US$16.97 million loan for the further strengthening of the emergency response, and to finance government’s 2019-Novel Coronavirus Preparedness and Response Plan. 

MIC is continuing efforts to ascertain the status of implementation of these projects to further update this report.

Saint Lucia’s tranche of a US$94 million World Bank loan funded project to build the Digital Economy in the Eastern Caribbean is US$20 million. The project, which aims to increase access to digital services, technologies, and skills by governments, businesses, and individuals, is timely for countries during the COVID-19 recovery phase, “to help build resilience, create jobs and boost future growth.”

MIC is at present seeking to establish the cost of the Health sector response to the Pandemic to date.  

Crises in the Crisis – impact on the frontlines

According to Dr. Clarke, the 2nd, 3rd and 4th wave of the pandemic each came with their own type of crisis at both the respiratory Hospital and the main OKEU hospital and ranged from a language barrier to manpower shortages. During the Pandemic, demand for nurses from larger countries pulled a number of trained personnel to greener pastures. 

The period of the fourth wave - July 26 to November 30 2021 - Saint Lucia’s longest to date, was the most trying for both health care delivery system and personnel. According to Dr. Clarke, the months of September and October 2021 were particularly severe. 

Standard criteria guiding triage and eligibility for ICU, as well as periodic exhaustion of stock of medication used in the COVID 19 protocol characterized the more severe waves of the pandemic.

Forcing a shift in focus and resources away from primary care and the treatment of NCDs - all areas of high comorbidity linked to COVID-19 deaths, the pandemic presented a double crisis for Chronic Care. 

The temporary closure of these Wellness Centres was so that more resources could be focused on COVID-19-related activities such as testing, vaccination and hospital care.  

In April 2020, the Pan American Health Organisation (PAHO) reported that NCDs clients at their demonstration sites decreased by approximately one third compared to previous months, and continued to drop at clinics over the subsequent months. To maintain momentum in the face of pandemic-induced constraints and disruptions to health service delivery, PAHO and the Ministry scaled up the NCDs programme island wide and trained health care workers to promote and build clients’ capacity in “self-management strategies with focus on the national expansion of the Healthy-Living Counselling module which addresses the risk factors for NCDs.” 

Status of vaccine stock

The CMC Chairman says that Saint Lucia has not had to pay for the vaccines received from COVAX or from any other source. Vaccines were donated by India and the United States. Concerned about the timely delivery and availability of vaccines from the COVAX facility, in April 2021, the Government of Saint Lucia joined with the Governments of Barbados and Bahamas to initiate a bulk purchase of Astra Zeneca vaccines with Saint Lucia’s contribution being EC$7.3 million (US$2.7 million) for 100,000 vials. The effort failed because of complications experienced in the procurement and supply chain. 

Mr. Springer gave assurance that while presently, there is a temporary shortage of Astra Zeneca vaccines, the supply of available vaccines far exceeds demand. “At no time has the demand for vaccines exceeded supply. Attention is being given to sourcing drugs that can reduce the need for hospitalization and stays in hospitals”, he concluded. With approximately 29.9% of the population vaccinated,  vaccination is lagging below desired levels (70%) for herd immunity. 

Infections recorded to date are at 20022,545, with 357 deaths. Saint Lucia recorded its first pediatric COVID-19 death on February 14th. 

The legacy and the outlook

On the question of legacy from the COVID response, CMC Chairman Cletus Springer says that attention will continue to be given to strengthening port health reception facilities; completing the conversion of Victoria Hospital into a full-fledge respiratory hospital; instituting National Health Insurance; strengthening epidemiological surveillance capacity; and strengthening laboratory capacities to conduct more tests, including the ability to undertake genome sequencing. 

Given the island’s ‘pandemic debt’ situation, Mr. Springer perceives an outlook of “ challenge and uncertainty for the short-term development of sector. While the Government has prioritized increased spending on healthcare, much will depend on its ability to raise the money through local revenue and through grants and loans. Should the future course of the pandemic call for the continuation of confinement and the re-introduction of travel restrictions in our source markets, then the Government’s ability to use raise local revenue will be severely compromised,” he observed. Mr. Springer is the former Director of the Department of Sustainable Development of the Organization of American States.

Castries, December 15, 2021 (MIC) -

At mid-November Saint Lucia emerged out of its fourth and deadliest wave of the COVID-19 pandemic with a diminishing daily average of new infections at around ten.

At the time of writing this report, the island has recorded 13,044 positive cases, of which 1,153 were children in the 0-14 age group. According to the Ministry of Health, of Saint Lucia’s 282 COVID-19 related deaths, none have been children. So far 47,268 residents out of a population of 180,000 are fully vaccinated, however 54,804 have taken their first doses.    

Child Infection 

Epidemiological trends in Saint Lucia have been generally unremarkable given the national incidence of infection and fatalities in and out of spikes. Among school-aged children the distribution of positive cases had been fairly consistent at between 11 -12%. Disaggregated, child infection originates mainly among primary (8-12) at around 3% and secondary (12-17) schoolers at around 4.5%. 

Until the latest wave, infection among children 17 and under had remained relatively low as compared with other age groups. The Epidemiology Unit of the Ministry of Health (MOH) recorded a marked increase in the fourth wave with the largest proportion emanating from Secondary school children. The Epidemiological report for the week ending December 5th noted that “the 0-14 age group, which normally accounts for 9% of cases, is now 21% for this period, indicating that more children are presenting with a positive diagnosis”. The office of the Chief Medical Officer is hopeful that numbers will level out and there will be a decrease in the child infection rate based on trends outside of spike periods.

Learning in the Pandemic 

Like their counterparts worldwide Saint Lucian children of school age have lost a substantial amount of in-person learning time from March 2020 to September 2021.

Teachers, students and parents alike are hopeful that the return to the classroom at the start of the 2021 school year signals a gradual return to the old normal. Still, only schools with lower student populations have a four-day school week. There are more schools still on rotation where half of each class attends in person on alternate days to best manage social distancing. As one day is reserved for sanitization, that translates into alternate two and three-day weeks in physical class for most children. A parent of 11-year-old twins at a primary in the island’s north laments that “It’s still tough for them. On their home days there are no online instruction because the Teacher is taking the other half of their class face to face. They are given work to do on their own. And obviously, all school-based extra-curricular programmes are closed.”  She is grateful that her twins have the tools for virtual learning and a mom who can work from home where she can supervise them.

An August 2020 UNDP report notes that the needs of children differ according to age group so that distance learning measures are not tailored to all. Early Childhood, Kindergarten and Primary level children need closer supervision, which is not always available at home. “Moreover, these strategies do not serve all students equally, as they depend on access to unevenly distributed resources for studying at home, such as Internet connectivity, electronic devices, space and parental support. In light of this, and with the prolonged closure of schools, it is feared that the gaps in educational continuity and achievement will widen even further.”

IT Manager Joshua Verneau with the Ministry of Education (MOE) says much as been accomplished to help mitigate the scale of learning loss that UNDP fears is inescapable. By January 2021 Google classroom had been installed at all public schools, teachers had been trained in the application of virtual learning modalities, and the MOE had distributed 5000 devices to secondary school studets, 1000 devices in primary schools and 5000 Mifi devices were given to children without connectivity. Still, educators fear that with a school population of 25,162, across 78 primary (14,235) and 21 (10,927) secondary schools, there variables outside of the control of Ministry and school relating to economics and the home environment.

No Child Left Behind?

The educators estimate that roughly 80% of children in public schools now have learning devices, thanks in great part to the corporate and philanthropic sector. However, there is concern about the learning chasm is wider for children in the special needs and early childhood learning groups.

Catherine Sealys, President Raise Your Voice Saint Lucia sees first-hand the extent to which children fall behind where home supervision is not balanced with the intervention of trained teachers. “For example kindergarten children in year two were home most of the year, so they are now in Infant School and are doing work they would normally do in preschool”, she said. Through the Early Childhood Learning system, most children are socializing by age three. “Prolonged absence from this environment, has created many challenges for this very important part of children's development” she said, adding that while these current issues are not restricted to demographics or age, socio-economics heighten the disparities of the pandemics impacts of children from poor families. 

From Kimisha Mathurin’s vantage at Babonneau Secondary, many children are negotiating the learning crisis while grappling with issues like hunger and COVID 19-induced stress.

In recent years the Government of Saint Lucia had expanded its School Feeding Programme to cover schools from infant to secondary school level. The programme makes hot nutritious meals available at school, and provides practical learning in agricultural science through the operation of school gardens. The Programme contributes to the United Nations (UN) – Sustainable Development Goals (SDGs) to help eradicate poverty and malnutrition. For many children in less affluent school regions, the School Feeding Programme guaranteed at least one square meal every day. Principals Mongroo and Kajana James say that the school environment provides more than academics and peer interaction.  

In the midst of the crisis, fortunately, there are children in school who can still see a silver lining.

Children and Mental Health

The prolonged shutdown of the physical classroom might also account for the dearth of data recorded by the Ministry of Health (MOH) with respect to the impact of the pandemic on the mental health of Saint Lucian children. According to the MOH’s Consultant Psychiatrist Dr. Naomie Jn. Baptiste, schools are mandated by law to report incidents or observations which might mean a child is facing a crisis of any kind. “I have no doubt that there have been cases directly linked to the pressures of the pandemic, but the mechanism in place to filter this information to the Ministry has been inactive for over a year.” 

Where Does it Hurt? 

With a society mired in the conundrum of school closure, confinement, economic recession, associated isolations and home disruptions, Pediatrician Dr. Jacqueline Bird is seeing the evidence in her private practice.  “[I am concerned about the effects on children of] exposure to COVID-19 related illness and death, resulting shared grief and uncertainty, the overwhelming and often frightening media coverage of the deaths and other negative impacts of the pandemic, uncertainty about school and their future.” 

Dr. Jacqueline Bird has observed “an explosion in referrals” relating to mental health, developmental and physical challenges spanning the gamut from non-verbal or speech-delayed toddlers, under-developed reasoning and communication skills, anxiety and depression, and obesity. Also related, is the negative spin-off of mask wearing which robs developing infant brains of the needed non-verbal communication stimuli from the facial expressions of others. A consequence of movement restriction for children has been unhealthy weight gain triggered by physical inactivity and poor dietary choices due to unavailability of healthy food options.  There is also a direct correlation between poor attention spans and “the pandemic-related over-dependence on screens and other devices for school work, recreation and socialization,” she further explained.  

Of Isolation, Under-supervision and Exploitation 

Both Dr. Jacqueline Bird and Catherine Sealys have seen first-hand the potential for the exploitation of minors in the ferment of home confinement, loss of livelihoods and threats to incomes. According to Dr. Bird, these domestic conditions afford heightened risk of exposure to violence ad well as the limited availability of usual community and state protections from abuse perpetrators. Information from the Public Relations Unit of the Royal Saint Lucia Police Force (RSLPF) noted increased cases of domestic violence during the pandemic, coming primarily from homes where there were unemployed parents, and those grappling with alcoholism during periods of social restrictions.  

Catherine Sealys reports that her organisation has interacted with a number of victims of teenage pregnancies which occurred during COVID-19 restrictions, “where, upon further examination it would appear that these girls were taken advantage of sexually. In some cases, the abused remained confined with their abusers.” 

The Vulnerable Persons Unit of the Royal Saint Lucia Police Force (RSLPF) is reported to have logged an increase in reports of sexual assault in the risk category from 12–16 specifically with respect to females in homes. According to the Head of Unit Sargeant Sisely Baptiste, one of the contributing factors in this trend is low or no supervision of children confined to the home during prolonged school closure. While data received from the RSLPF’s Central Statistical Unit show a marked increase in reports and arrests related to sexual abuse of minor aged females between 2020 and 2020, it is noted that figures for 2019, which predates the pandemic, were notably higher those for the last two years. 

Corporal Ann Joseph, Press Relations Officer of RSLPF confirms an increase in cases of physical domestic violence which impact children’s emotional and psychological health.  Reports of “young females who run away from home to engage in (not for pay) sexual activity has been more frequent. Investigation into the cause lead police to conclude that the closure of school, and lack of supervision “provide cover for underage females to go off without notice as there is little likelihood that they would be discovered. Along with a surge in gang-related activities, RSLPF has observed that the pandemic has heightened the vulnerability of adolescent male students, seeking the peer interaction out on the block which school typically provides. “The pandemic has presented ideal conditions for recruitment of youth as gang members.”, Cpl Joseph disclosed. 

Principal Kajana James echoed the UNDP report’s concern that without immediate intervention, the impact of the pandemic on the physical, cognitive and emotional development of children and adolescents can “jeopardize a generation’s full development”. 

Castries, October 30, 2021 (MIC) -

Food, in the time of COVID

Kimra Martial, a young Saint Lucian mother of three, is the face of the Government of Saint Lucia’s (GOSL) Public Assistance Programme (PAP).  In a video premiered by the Joint Programme in Universal Adaptive Social Protection on August 18th, 2020, Kimra talks of the severe disruption on her life and her livelihood by the COVID-19 Pandemic. She is grateful for the PAP, which, even though it has predated Covid-19, has continued to function, expanding by 1000 households to assist those hardest-hit by the pandemic. 

Under PAP, eligible households receive monthly produce boxes and stipends for the purchase of basic necessities in GOSL’s basket of price- controlled foods.  Under GoSL’s National Feeding Programme, a short-term complementary programme, the state operated Saint Lucia Marketing Board packaged 11,804 food boxes, for delivery to 1,000 households between May and August, 2020.

A World Bank COVID-19 Socio-Economic Impact survey in Saint Lucia conducted May 2020 reported over a 70 percent decrease in household income for people working in tourism, wholesale, restaurants and hotels. According to the World Bank , approximately 30 percent of respondents had on occasion run out of food. Until October 2021, Raise Your Voice Saint Lucia, an advocacy group against domestic violence was still operating food drives to help feed food-insecure female headed households. 

Food insecurity is also a concern for rural communities where livelihoods are supported by cottage industry and the rural economy. Honey and egg producers, fishers and farmers rely heavily on community patronage and reliable domestic markets such as supermarkets, restaurants and hotels. Massy Stores Supermarket and CPJ Fresh Market provided a regular market for Albertha John, a farmer from the rural West Coast community of Roseau who plants crops like cabbage, lettuce, eggplant and cucumbers. Within the last year, her income has been slashed by more than half because in this new normal of prolonged curfews, Massy Stores and CPJ take smaller consignments since they operate less hours. Disruptions in trade worldwide drive the price of agricultural inputs, which in turn eats into her now reduced profits. As a mother of school-aged children, even though John grows some of what her family eats, she has not been immune to the scarcity of imported everyday food items. “Farmers cannot grow everything we need”. She said. “Sometimes, the supermarket only allows two packets of peas per shopper. I say that just now people will not be able to eat.” 

Global Supply Chain, Accessibility and Affordability  

Massy Stores (SLU) Ltd is the island’s largest supermarket chain. Sariah Best-Joseph, Divisional Head of Marketing and Corporate Communications is apologetic about the marked decreases in food and brand options on Massy’s shelves as well as the “almost weekly price increases on everyday food items.” The Central Statistics Office confirms an upward trend in prices on the majority of the goods that comprise the country’s food basket. Between 2020 and 2021 price increases were noted on chicken backs, drumsticks, whole legs, Irish potatoes, garlic, carrots, lentils, red beans, pink beans, tomato ketchup and cheese. 

Best-Joseph says the pandemic brought about supply challenges and supplier price increases across the board, with the cost of goods, freight and shipping now five to six times higher than pre-Covid-19 prices. Every wave of the virus in supplier markets had a domino effect on logistics, operations, labour force constraints and cost at all levels of the supply chain, she explained, adding that “while we have been very prudent (since May 2020) in passing on some of the price increases, the situation has escalated in the last few months to the extent where we can no longer do so”.  A respite is not in sight for consumers in the foreseeable future, as “Some of our suppliers have advised that they do not see prices coming down before mid to later 2022,” she said. 



A tale of two cities?

In between Covid-19 spikes when restrictions on movement are lifted, farmer markets present a picture of bustling trade. On the surface this seems to challenge concerns about food insecurity. Fresh fruit, vegetables and produce in season are plentiful. 

At the St. Lucia Marketing Board, tree crops, root crops, fruits and vegetables seem always to be at optimal capacity. The facility provides a market to 400 farmers from rural communities in the island’s south. It is also a wholesale depot for roadside fruit vendors and restaurants, and guarantees walk in shoppers a cheaper price (than supermarkets). But, with only two retail outlets in the island’s north serving a population of 180,000, its accessibility is in question. 

In January 2021, with a food import bill of US$4.5 million, and against the backdrop of rising food prices, rationing and GoSLs National Feeding Programme, the Minister of Agriculture on seat Hon. Ezechiel Joseph was emphatic in this HTS Evening News report that Saint Lucia is not at risk of food insecurity. He posited that the issue is one of affordability, and not availability:  

Minister of Agriculture, the Hon. Ezechiel Joseph on food security in Saint Lucia. 

However, Steve Maximay, an Agricultural Consultant with extensive experience in the Eastern Caribbean explains that availability does not equate with affordability for the average consumer.  

The Poverty Index and Nutrition Insecurity

In Saint Lucia Non-Communicable Diseases (NCDs) are the chief cause of death. According to the World Health Organisation (WHO), balanced nutrition is a critical to good health, promotes stronger immune systems, longevity and reduces the risk of NCDs diseases. Diets high in sugars, trans fat and simple carbohydrates can trigger NCDs like high blood pressure, high cholesterol, diabetes, obesity, heart disease, stroke and some cancers.  

Lisa Hunt, Chief Nutritionist in the Ministry of Health says that both affordability and availability are central to the issue of food and nutrition security. With more Saint Lucians falling into the category of vulnerable and poor, more are at risk for malnutrition, under nutrition and obesity.  “Covid-19 has made it challenging for more people to be able to eat healthy. When people have little or no spending power, they resort to the cheapest source of food which are unhealthy and place them at risk for NCD’s. During the pandemic we saw how milk, peas and crackers were being rationed. When we talk about food insecurity this is what it is, the inability to have adequate food and nutrition for the people of a country.” 

Maximay explains that while Saint Lucia’s hefty food import bill addresses the issue of availability, it does not guarantee nutritional security, which means something different to ‘food security’.

The World Bank projects that based on the level of income and job losses, poverty is expected to remain high (24.5 percent) in 2021, and decline to a projected 19.3 percent in 2023.

Going it together 

 Thaddeus Constantin, Chief Agricultural Enterprise Officer in the Ministry of Agriculture says based on historical trends and active government programmes like the seven-crop project if tackled strategically, Saint Lucia has the capacity to strengthen food security at home, and assist OECS and CARICOM economies that do not have an agricultural base. The island he says is looking to CARICOM to help strengthen intra-regional trade because it is the single biggest constraint is expanding Saint Lucia’s regional export market.  

The Regional Integration mechanism has been in effect at both a Caribbean (CARICOM) and the Eastern Caribbean (OECS) level to strengthen intra-regional trade and jointly tackle social and economic development from a position of combined strength. Saint Lucia and five other OECS countries make up the Eastern Caribbean Economic Union (ECESU), within the wider OECS grouping. They have a joint policy approach for the development of key sectors such as Agriculture (production), Education and Health. Within the food security debate, the key outputs related to these sectors relate to local production, dietary behavior change and nutritional security.

 With the widening gap of poverty which puts national populations at risk of food and nutrition insecurity, OECS Economic Affairs Director Jacqueline Emmanuel says the pandemic is an opportunity to improve trade facilitation within the OECS, and ultimately reduce the reliance on imports. “It begs a renewed focus and effort on improving the regional transportation solutions e.g. the OECS fast Ferry, and for increased demand and production response for nutrition”. 

 One part of OECS Commission’s immediate pandemic action plan is the provision of support to Member States to promote food production at the household level through the production and distribution of planting materials. An OECS Food Security Committee has been established which is helping Member States to prepare national food security plans that will ultimately integrate into an OECS food Security plan. These initiatives could create a pathway to strengthen national and regional inter-agency coordination, thus realizing an imperative cited by Chief Nutritionist Lisa Hunt - “the creation of a food system that is stable and sustainable where all stakeholders along the food chain are working cohesively to produce and provide safe and nutritious food for our people.”

Castries, July 28, 2021 (MIC) -

As of July 28, five thousand, 5,529 residents have contracted the Corona virus in Saint Lucia. Of that number 5,343 have recovered, while 88 people have died from COVID-19 related conditions. 

The country continues to see a downward trend in the rate of infection in recent months, with five new infections reported on average daily. Currently there are ninety-three active cases of which two are critical. 

See Saint Lucia’s COVID-19 Dashboard here. 

Find up-to-the-minute comparative data for Saint Lucia here.

The Elections Factor

In a surprise announcement at the beginning of July, former Prime Minister Allen Chastanet, publicized July 26 as the date for the country’s much anticipated general elections. This announcement was accompanied by the temporary relaxation of protocols, giving political parties the opportunity to mobilize and energize their bases. The outcome has been a steady stream of mass crowd super-spreader events, which sparked concerns from the medical community that current numbers will spike in the coming weeks.  COVID-19 symptoms generally present after a two-week incubation period.  

Since the commencement of Saint Lucia’s National Immunization Programme in May 2021, at least 55,939 doses of the COVID-19 vaccine AstraZeneca have been administered. Reuters estimates that based on this number 15.3% of the population has been vaccinated with 32,001 having first dose coverage while 24,009 are now fully covered.

“Herd Immunity”

Saint Lucia is aiming for vaccine coverage of 70% of the population to achieve “herd immunity”.  With a population of approximately 180,000, 70% is approximately 126,000 people. Based on weekly figures obtained from the Ministry of Health and Wellness, Reuters estimated that using the daily average of vaccine doses administered for the week ending July 23, that Health Authorities can reach an additional 10% of the population in 209 more days. These trends suggest that the country has some distance to go to achieve “herd immunity”. 

Saint Lucia is a member of the COVAX facility, which is co-led by Coalition of Epidemic Preparedness Innovations (CEPI), the GAVI (Global Alliance for Vaccines and Immunization) Alliance and World Health Organisation (WHO); along with other partners such as UNICEF.  Through COVAX, each participating country is assured an allocation of vaccines sufficient to immunize at least 20% of its population. Saint Lucia has received two tranches (50,400 doses) of its allocation of 74,000 doses. The country is still awaiting the third tranche.

Saint Lucia’s ability to reach herd immunity could be further stymied by a number of other factors. One such factor involves supply issues related to global support as well as India’s COVID-19 situation, which has impacted vaccine supply. India is a major producer and exporter of pharmaceutical drugs to the US, Europe, Africa and other parts of the world. On the date of penning this report (July 28) India reported   43,654 new cases and 640 deaths in the space of 24 hours and a total death toll of 4.2 million. Currently struggling to manage a second wave, India imposed a vaccine export freeze to conserve national stocks for domestic use. The resultant impact of the export freeze is major vaccine supply chain disruption.

The limited choice of vaccines within the alliance poses another challenge. AstraZeneca is the only available option through GAVI, however, that brand has been beleaguered by global bad press which has undermined the confidence of the Saint Lucian population in the vaccine.

In the early stage of the vaccine roll-out, Saint Lucia also received donations of AstraZeneca vaccines from friendly governments such as the Republic of India (25,000), and nearer neighbours Barbados (5,000) and St. Vincent and the Grenadines (5,000).

According to the director of the National Immunization Programme Nurse Techla Jn Baptiste, there is opportunity to procure additional vaccines through the PAHO Revolving Fund, which is also the recognized procurement agent for COVAX. “There have also been other offers of donations through external agencies such as CARPHA, and other friendly governments”, Jn Baptiste said.

The Government of Saint Lucia (GoSL) has been active in pursuing vaccine supply outside of the GAVI Alliance.  In an interview with Director of the Bureau of Health Education Natasha Lloyd-Felix, the Media Institute of the Caribbean (MIC) has learnt that negotiations are at an advanced stage with potential new sources. An official announcement is said to be imminent with respect to the vaccine brands that will be available, pending WHO approval. One such option is likely to be the Cuban vaccine.

Saint Lucia relies on WHO approval/prequalification of vaccines for use of vaccines in the population. Any vaccine introduced would have gone through that rigorous regulatory process, and granted approval by that regulatory authority. 

Saint Lucia, like all other countries in the world also utilizes the Emergency Use protocol for vaccine supply in a pandemic situation. 

Vaccine Hesitancy 

Vaccine hesitancy continues to be major factor impacting vaccine uptake. Jn Baptiste says this may be attributed to the unavailability of other options of COVID-19 vaccines in the programme, the proliferation of conspiracy theories and, in particular, concerns surrounding safety and efficacy of the vaccine, particularly with AstraZeneca. 

Speaking with personnel from the Bureau of Health Education (BHE), indications are that what seemed a very positive response at the beginning of the Immunization drive, soon changed to an uphill task “when AstraZeneca began facing problem with the blood clotting issue”. 

Despite Saint Lucia’s high literacy rate (90%), pockets of the population have strong convictions about the efficacy of natural remedies over manufactured drugs. With access to information and exposure to international news registering similar concerns about the rush to market of COVID-19 vaccines, these misgivings are being constantly reinforced. There is worry about side effects, impact on virility and reproductive health. 

Dr Stephen King, an Anatomical Pathologist and CEO of the private company Laboratory Services, posits that KAP (Knowledge, Attitudes, Perceptions) factors also have to do with fear of vaccines in general. Elements such as conspiracy theories fueled by misinformation, distrust of authorities, weak risk management communication and weak alliances with stakeholders, all contribute to this fear. He believes that besides a deep-seated distrust of “big pharma”, “distrust has been amplified by partisan politics, mixed messages from authorities, historical distrust of global powers (Eurocentric and US centric), which is evidenced by the population’s less hesitant response to Cuban vaccines versus the others”. This response, he observed, is not based on facts or science but strictly on emotion. 

The BHE has invested heavily in public information and awareness campaigns “and other targeted interventions focused on addressing the hesitancy.” By Dr King’s assessment, these campaigns have primarily focused on promoting fear of COVID-19 as deadly and dangerous, “but the communication apparatus has been weak in countering the misinformation. The GoSL had a strategy of claiming credit for success and apportioning blame for failure to the general population, this was a poor communication and mobilization strategy”.

A former Chief Medical Officer himself, Dr King believes that GoSL has not embraced all stakeholders in an all-out war on the virus. The outcome has been “a weak public sector response with lip service to private sector and civil society/community engagement. GoSL’s approach has been a centralized “command and control” model articulated by a draconian COVID-19 Act and manifested by the GOSL policy and strategy”, Dr King added.

In October 2020, the Allen Chastanet government was taken to task  by the Opposition and Independents, the Upper House, as well as by CSO groups like the Saint Lucia Medical and Dental Association and St. Lucia Bar Association, for trying to rush the COVID-19 Prevention and Control Bill through without adequate consultation and input. The Bill reposed exceptional powers in the Police, the Minister of Tourism and the Minister of Health. It was felt that certain clauses in the Bill infringed on the citizens’ civil liberties. "The Prime Minister would eventually exploit what appeared to be a sit-out protest in the Upper House to appoint temporary senators to replace protesting Independents so as to pass the controversial Bill."

In speaking with MIC, BHE Director Natasha Lloyd-Felix substantiated the claim that the politicization of issues related to COVID-19 management contributed to public ambivalence. “Speaking to people on the ground I think there was distress based on the fact that people saw a muddling, some greyness between Public Health and the political approach to managing COVID”, she indicated. 

Health Authorities report that the COVID-19 vaccine programme is being monitored and evaluated to identify any gaps and areas that need to be strengthened.   

Vaccination - Choice or Mandatory?

COVID-19 vaccines remain voluntary in Saint Lucia.  There is no policy or proposal for mandatory vaccination.  However, employers and other organisations may decide, as per their protocols, to make the vaccines mandatory for individuals to secure employment or remain on staff. Vaccination is a requirement to enter school but it is not mandatory, an application can be made for exemption with cause through the Ministry of Education.  

Mandatory vaccination, many believe, fuels the resistance and discontent. Dr King laments that the government has not truly promoted the alternative - incentivized vaccination, which can include increased freedom for vaccinated people, direct cash or kind incentives.

Vaccination rollout – Successes and challenges

Saint Lucia’s vaccination rollout is now in its sixth month, with frequent assessment and evaluation of the campaign strategy to ensure uptake of the vaccine, especially by medium to high-risk groups in the population. The campaign transitioned from a phased approach to opening to the general population with the inclusion of mobile/pop-up vaccination sites and other targeted interventions such as hotels and locations within the commercial sector. There has also been an inclusion of public-private partnerships with, for example, pharmacies and private medical facilities.   

Vaccines are made available at routine static vaccination sites every week island wide, as well as at mobile sites within communities and high traffic locations.  The elderly, people with mobility challenges and people living with chronic non-communicable conditions are being vaccinated within their homes to ensure individuals at high-risk for severe COVID-19 infection are reached and provided with the protection offered by the vaccine. 

Dr King opined that notwithstanding the fairly smooth roll-out, by opting for “a pop-up decentralized” approach, GoSL failed to capitalize on its strong decentralized structures “to ensure community mobilisation, convenient access, and house to house capacity”.

Lloyd-Felix identified another major challenge impacting roll-out. That is, the info-demic which hit the world while all countries were grappling with how to manage the pandemic. There was a lot for the population to absorb, both from the worldwide web and from national health authorities. 

Coupled with this is the factor of pushing adult vaccination within what is a primarily childhood vaccination culture.  “The fact that we are now giving vaccines to adults definitely posed a challenge because adults have autonomy and have the opportunity to opt out”, Lloyd-Felix explained.

Castries, MAY 29, 2021 (MIC) -

May 17th 2021 marked four months since the roll out of Saint Lucia’s national immunization programme, during which time 27,709 residents out of a population of approximately 183,000 have taken their first dose of the Oxford AstraZeneca COVID-19 vaccine. At May 29th , 18,277 have returned for their second dose.  The current vaccine stock stands at approximately 86,000 doses. 

To date, Saint Lucia has recorded 5,035 infected persons, and 77 COVID-19 related deaths.  Active cases stand at 183, with one critical case. Reuters COVID-19 Tracker places the current new average infection rate  at 12 daily. Reuters estimates that based on the number of vaccines administered to date,  approximately 12.6% of the country’s population have had their shots.   

See Saint Lucia’s COVID-19 Dashboard here.

Find up-to-the-minute comparative data for Saint Lucia here. 

FINANCING COVID-19 RESPONSE AND RECOVERY

Loans and grants from various multi-lateral and bilateral agencies have been the primary financing mechanisms by the Government of Saint Lucia (GoSL) to service the country’s debt and fiscal situation, manage the health sector response, and channel short-term support to businesses and vulnerable communities.

The International Monetary Fund (IMF) 

In a press release dated April 28, 2020, the International Monetary Fund (IMF) announced its approval of Saint Lucia’s request for emergency financing via a disbursement under the Rapid Credit Facility (RCF) in the amount of a US$29.2 million dollar loan.  Disbursements were also approved for Dominica (US$14 million) and Grenada (US$22.4 million). Mr. Tao Zhang, Deputy Managing Director and acting Chair of the IMF Board disclosed that this line of credit will help these countries cover balance of payment needs stemming from the outbreak of the COVID-19 pandemic, and help  “create the fiscal space for essential health-related expenditures and income support to ease the impact of COVID-19 on the population”.  Read GoSL’s Letter of Intent here. 

World Bank/ International Development Association (IDA) 

GoSL unveiled its Economic Recovery and Resilience Plan (ERRP) on July 14, 2020. The Plan consists of six pillars, covering 32 priority actions, aimed at stemming “the economic contraction and [to] curtail the impact of the pandemic, while pursuing GOSL's medium to long-term development goals”. The ERRP’s implementation budget is EC$579.3 million (US $214.35 million). One of financing sources of the ERRP is a World Bank /IDA interest-free Loan of US $30 million with a 40- year repayment and 10-year grace period. Access the ERRP here.

WATCH: Prime Minister launches the ERRP Website.

The World Bank also announced the approval of US$30 million loan to finance Saint Lucia’s COVID-19 Response, Recovery, and Resilience Development Policy Programme in January 2021. This International Development Association (IDA) financing is interest-free with a maturity of 40 years and a 10-year grace period. During the House Sitting of February 23rd, Prime Minister Allen Chastanet indicated that the loan “would finance COVID-19 economic recovery, health sector response, relief to vulnerable households and businesses, and to build cross sectoral resilience through the strengthening of public sector governments and provide the impetus for private sector participation in the overall economic recovery.” 

World Bank CERC Reallocation

In the second quarter of 2020, GoSL sought the agreement of the World Bank/ IDA to activate a reallocation of loan funds via the Contingency Emergency Response Component (CERC) mechanism to finance interventions to expand healthcare capacity and infrastructure, source Personal Protective Equipment (PPE) and supplies, strengthen first response and strengthen capacity at the National Emergency Management Organisation (NEMO). A total of US$10.5 million was reallocated, under two pre-existing loans: US$5 million from the US$20 million Health Strengthening Support Programme (HSSP) and US$5.5 million from the Disaster Vulnerability Risk Project ( DVRP).

Caribbean Development Bank (CDB)

In February 2020, GoSL secured a US$10.8 million loan from the CDB to finance mitigation of the macroeconomic fallout and adverse social effects of the COVID-19 pandemic Economic Recovery. 

Click to view CDB’s Economic Review 2020 here. 

In a June 26, 2020 the bank announced approval of a grant of approximately US$8 million with a counterpart contribution of US$9 million by GoSL to upgrade 40 kilometres of primary roads in Saint Lucia. The grant is categorized on CDB’s website under the heading COVID-19 Pandemic Response. The grant was supported by another grant to CDB of almost £28 million (US$35 million) from the Government of the United Kingdom through the CDB-administered United Kingdom Caribbean Infrastructure Fund. 

On September 25th 2020, CDB announced approval of a subsequent CDB loan of US$30 million dollars to the GoSL to finance interventions for economic recovery and resilience. The CDB President Dr. Wm Warren Smith was quoted as saying that the loan help Saint Lucia “to counter the COVID-19 crisis and restore economic activity, paying due regard to enhancing social and economic protection of citizens.” 

Saint Lucia is identified as one of the OECS Member States to benefit under a US$50 million dollar Inter-American Development Bank (IDB) loan to CDB to “strengthen response leadership at the country level, improve services delivery capacity, support initiatives to break the chain of transmission, improve case detection and management”. This was disclosed in an IDB press release issued on November 26, 2020.  Under this line of credit, loans to OECS Member States would prioritize interventions related to tourism, retail, service, logistics, agriculture, and fishery sectors. CDB’s corresponding press release specified support for Micro, Small and Medium-Sized Enterprises (MSMEs).   

See more in this CDB video clip here.

European Investment Bank

In the last quarter of 2020, GOSL borrowed US$16.97 million from the European Investment Bank (EIB).  The bank published notification of the loan on December 4th, in which it disclosed that  the purpose for the loan was for “financing of certain interventions aimed at strengthening the emergency response against the COVID-19 crisis, as well as financing of pandemic preparedness medium-term interventions included in the GOSL "2019-Novel Coronavirus Preparedness and Response Plan”. 

National Insurance Corporation (NIC)

The financing of GoSL’s Income Support Initiative was facilitated through an NIC grant of US$24,606,389 million. This was disclosed by Prime Minister Allen Chastanet in his 2021-2022 Budget (pp.14 – 20) presentation. Under this initiative 11,800 NIC contributors who lost their income due to COVID-19 applied for and received financial relief, while another 5,000 non-contributors were approved for EC$500 cheques for a three-month period. 

Health related emergency response expenditures – source of funds currently unknown 

A presentation to the Chamber of Commerce prepared by the Ministry of Finance revealed that Health Authorities negotiated the use of seven (7) small hotels to serve as state quarantine facilities. Rental and staffing costs incurred at October 2020, stood at EC$ 6,658,927.39 (US$2,463,942.31) of which EC$5,035,448.05 (US$1,863,221) had been paid.

This same report also showed that the Ministry of Health looked to Cuba for technical support to bolster the complement of local medical personnel. The combined costs of salaries, allowances, hotel accommodation and security for the Cuban brigade of 110 was EC $16,150,048.61 (US$5,975,85.52). 

Grants and Donations

In a highly televised Prime Minister’s telethon in April 2020, the Saint Lucia Private Sector, residents and Diaspora communities rose to the call to assist the country in meeting its obligations to frontline line workers. The event raised EC 2.5 million (US $925,000) towards the procurement of PPE.  

UNICEF contributed US$12,765 towards a Ministry of Equity, Social Justice, Local Government and Empowerment project In December 2020, specifically to provide social support to children in foster care and children with disabilities and their families during the COVID-19 pandemic. 

The SDG Fund Joint Programme in Social Protection in the Eastern Caribbean

 provided a US$4.5 million grant to OECS governments to strengthen social protection systems. The Saint Lucia allocation (undisclosed) also went to augment the financing of this social assistance programme to help them manage COVID-19 hardships and vulnerability to hazards like hurricanes. 

The World Food Programme provided a grant of US$500,000 and The India-UN Development Fund also gave a grant of US$229,610.74. These were the primary funding sources for two of GoSL’s social assistance programmes. According to a presentation to the Chamber of Commerce in October 2020, prepared by the Ministry of Finance, one programme was a 6-month (November 2020 -April 2021) project to expand public assistance by 1,000 households and the other was 3- 6-month Electricity Assistance Programme to over 5000 poor and vulnerable households. The EAP carried an estimated cost of XCD $4.5 million (US$ 12,161,475), to be borne by central government.

In the same presentation to the Chamber of Commerce in October 2020, it was revealed that the GoSL also allocated EC$3 million (US$1,110,062)  to a Special Education Assistance Programme which was channelled through the St. Lucia Social Development FUND (SSDF) to support students from unemployed families due to COVID. 

 The Ministry of Equity and Social Justice was also the beneficiary agency of a grant (undisclosed amount) from UN Women to provide direct support to unemployed, low-skilled single mothers with infants specifically through skills training, basic literacy courses and to secure day care for their infants.

 UN Women also donated PPE to be channelled to non-governmental organisations which provide services and shelter for gender-based violence (GBV) clients. 

 Under the Enabling, Gender Responsive Disaster Recovery, Climate and Environmental Resilience (EnGenDER) Project in the Caribbean, The Government of Canada through the United Nations Development Programme (UNDP) for Barbados and the Eastern Caribbean donated PPE for directing to communities island wide through a number of ministries and NEMO.

Global Partnership for Education (GPE): Saint Lucia is one of four Member State beneficiaries named under a grant of US$3 million from the GPE to the OECS Commission towards a project to harmonize education policy response among Member States, for the transition to distributed learning and student wellbeing. 

A PAHO Donor Appeal in support of Jamaica and OECS countries secured US$3.8 million from the United Kingdom Department for International Development (DFID).  PAHO made the disclosure in a press release on 22 May 2020. The grant was intended to help the countries to access critical medical equipment and other urgent supplies for the immediate health response. To date GoSL’s list of PAHO donations includes  six ventilators, 200,000 medical masks and N95 respirators, oxygen concentrators, laboratory supplies and other hospital accessories, and training for human resource personnel.

United Kingdom:  Between September and December 2020, the UK government dispatched US$30,000 worth of Hurricane Shelter Material to the NEMO, and a consignment of PPE to the Ministry of Health (MOH). 

India-UN Partnership Fund, UNOSSC and UNDP Barbados and the Eastern Caribbean donated two ventilators 

Government of France: 10,000 surgical masks, 50 hospital beds with a promise of 40 more by year-end, 10 cardiac monitors, and 2 ventilators. 

Government of Canada/ UNDP: A consignment of PPE 

Taiwan: Multiple donations from Taiwan to date account for aggregate contribution to Saint Lucia as 454,000 surgical face masks, 10,000 N95 masks, 4,000 isolation suits, 2,000 protective suits, 2 PCR machines with 3,500 rapid test kits, 20,000 tablets of hydroxychloroquine, 450 portable handheld thermometers, 6 body temperature imagers and 3 forehead thermometers.

VACCINE DONATIONS 

Saint Lucia received donations of the Oxford AstraZenaca vaccine from The Government of India (25,000 doses), Barbados (5,000), St. Vincent and the Grenadines (5,000) and WHO/PAHO (54,000 of the74,000 pledged) under the COVAX facility.

Observations 

A new Covid-19 Relief Bond offered by Saint Lucia’s Citizen by Investment Programme (CIP) and the current tourism marketing effort campaign, appear to be avenues to secure an urgent injection of revenue into the economy in the immediate short-term. CIP CEO Nestor Alfred’s assertion in a press release issued March 3rd 2021, that the bond creates a “win-win” for investors and Saint Lucians because its investment structure allows “investors to support a developing economy and sovereign state in a time of need” is telling. The new bond is pitched as a special limited non-interest-bearing government bond option which starts at discounted price point of US$ 250,000 with a waiver on processing fees.

 The complete shutdown of the island’s tourism industry has meant the loss of 90% of annual foreign exchange earnings. GoSL is aggressive in its efforts to jumpstart the sector as evidenced by three developments between mid-year 2020 and April 2021: Establishment of COVID-19 compliant certification for the sector, reopening of cruise calls and the return of major airlines. To date thirty-three formal accommodation properties are certified and have resumed operations, while key sub-sectors are getting back to business.

 In March Royal Caribbean Cruises announced its impending return, with Saint Lucia named as a port-of-call on a mid-July itinerary for Celebrity Millennium’s maiden voyage after a year on dry dock.

On November 2020, Carib Journal reported news of the return of international carriers (United Airlines, JetBlue, Air Canada) with connections from major travel hubs out of major source markets. Since that time, more airlines have signalled their imminent return. In a press release published on February 23, The Saint Lucia Tourism Authority expressed its intention to maintain ongoing efforts to increase airlift into Saint Lucia.

 Especially noteworthy, is that Saint Lucia is in an election year, elections being constitutionally due in July. In light of this, a flurry of road infrastructural works over the last eight months and the special powers GoSL has conveyed on itself with respect to procurement, are raising questions from the opposition in the House and Independents in the Senate. They question the motive behind government’s spending in light of the impact of the pandemic on people, livelihoods and business.

 Saint Lucia is reported by the Eastern Caribbean Central Bank (ECCB) as registering the worst decline among all six independent countries in the Eastern Caribbean Currency Union (ECCU). In light of this scenario, the success of Covid-19 Relief Bond and the summer tourist season would constitute a flicker of hope for whoever inherits the current debt situation, especially if they do not trigger another wave of infection.

Castries, April 2, 2021 (MIC) -

From March 2020  - when Saint Lucia recorded its  first case of Covid-19 - to February 2021, 37 deaths were recorded. In the month of March 2021 alone, 20 people have died from Covid-19 related complications. Up to the end of February 2021, over 3,779 cases of the virus were recorded, with the highest daily average rate of infection reported on February 12. The average daily rate of new COVID-19 infection is 10. To date, an  increase of over 530 confirmed cases have been brought the tally to over 4,300.

 Since declaring the country’s first a state of emergency on March 23, 2020 the Prime Minister noted that the increased measures have made an impact with the lowering of infections. One year hence, on March 24, the Royal Caribbean Cruise line announced that Saint Lucia has been added to their summer itinerary as a port of call. Other islands also on that voyage include Barbados and St. Marteen. In 2020, several reports were published on the culpability of the cruise ship industry in bringing the pandemic to certain Caribbean islands. However, the summer itinerary remains unchanged.

Vaccinations

 Over 22,500 vaccinations have been implemented. These came from donations from the government of India, St. Vincent and the Grenadines and Barbados. India gave 25,000 vaccines with St. Vincent and Barbados giving 5,000 each to ease the wait for the arrival of 74,700 pledged vaccines from the COVAX facility. According to the  National Immunization Manager Techla Jn Baptiste, the government of St. Lucia also donated 5,000 of those vaccines to Grenada who has also been waiting for the arrival of vaccines from COVAX. On April 7, 24,000 doses of the Oxford AstraZeneca vaccine arrived at the Hewanorra International Airport. According to reports, local health officials intend on utilising the batch for over 20,000 Saint Lucians receiving their second jab of the vaccine.

 In terms of the vaccine rollout, the priority of distribution is as follows: Frontline workers, persons who are home bound, people with underlying conditions and then the general public. Pre-registration measures are also being employed to gauge perceptions and attitudes towards the vaccine. Vaccination drives also are being run through organized groups like churches and being done on site. These groups mobilize their members and transport the elderly within their community to the site which they provide. There has also been a vaccination drive through the commercial sector with companies like large hotels but these efforts were temporarily scaled back due to dwindling stock. Health authorities expect to be able scale back up the immunization schedule with the first batch of Saint Lucia’s allocation under COVAX.

The Health System Strengthening Project (HSSP) and the Saint Lucia Disaster Vulnerability Reduction Project (DVRP)

 As the financial burden of covid takes its toll, the government has had to reallocate funding previously given by multilaterals for other development projects, to the Covid-19 response effort. As outlined in the previous report, there are currently two ongoing World Bank funded projects which have had their capital reallocated to Covid-19 related projects. Those are the  Health System Strengthening Project (HSSP) and the Saint Lucia Disaster Vulnerability Reduction Project (DVRP). According to information sourced from the Project Coordinating Unit in the Ministry of Economic Development, Housing, Urban Renewal, Transport and Civil Aviation, from a total of US$20 million dollars loaned from the World Bank in 2018 for the Health System Strengthening Project, US$5 million was reallocated during the pandemic. Also, from a total of US$68 million loaned  from the World Bank in 2014 for the Saint Lucia Disaster Vulnerability Reduction Project, US$ 5.5 million was reassigned. Over US$3 million has been disbursed. The reallocation of funds from both projects was done under the Contingency Emergency Response Components (CERC) mechanism for the Covid-19 response.  

 In addition to these funds, in June 2020, the World Bank Board of Executive Directors approved US$15 million in additional financing for health sector projects in the Eastern Caribbean. According to an article published on the GOSL website, “The financing replenishes funds that were redirected from these projects to support the countries’ immediate emergency response to the COVID-19 pandemic.”

Procurement

 In terms of the procurement processes, under the Disaster Vulnerability Reduction Project, several projects employed direct selection. For the electrical retrofitting of the Gros Islet Polyclinic, direct selection was utilised. According to the World Bank, direct selection is when there is an approach of and negotiation with only one firm. The price must be reasonable and consistent with market rates. To date, US$60,335 out of an allocated amount of US$65,000 has been spent. Since a contract was signed on April 3 2020, electrical works have been completed in all three buildings.

 At the same location, a process of direct selection was also implemented for the installation of rainwater harvesting systems. $US51,272 was allocated for this project which was approved on October 15 2020. At present the works are ongoing at 85% completion. Information on how much of these funds have already been spent is not yet available within the current financing agreement information.

 Direct selection was also used for the installation of a respiratory clinic at the Victoria Hospital. Of the US$100,000,000 allocated to the task, only US$2,177,370 was spent. The work has been completed and a certificate of completion has been issued, with the processing of final payments pending.

 With the Victorian Hospital (VH) now operating strictly as a respiratory centre with isolation facilities, much retrofitting work is ongoing there. US$75,000, which was initially allocated for the construction of an Isolation Facility at the main hospital – the Owen King EU (OKEU) Hospital has been reassigned to “Victoria Hospital variations”, after the project was deferred when it was determined that VH would be fully dedicated to serve this purpose. A further US$6260 was also reallocated to VH hospital from Supervision of electrical works at the Gros-Islet Polyclinic. Through direct contracting, the supervision of works at Victoria Hospital, US$164,422 was spent out of an allocation of US$170,000.

 Individual consultants were engaged for a QA/QC Consultancy to develop a NEMO Information System scope of work with a January to November 2021 timeline. US$28,917 was allocated from the original budget of US$88,170 assigned to the overall NEMO Information System. Of the US$28,917 allocation, the amount spent on the project to date has not yet been recorded within the financing agreement, as the consultancy is active.

 Under an allocation of US$100,000, two contracts were approved for the NEMO Trainings in Mass Casualty Management, Community Emergency Response Teams (CERT) and Damage and Needs Assessment (DANA). The amount of money paid out so far is not yet reported at this time. These projects are half-way into the scheduled implementation timeline - September 2020 to August 2021. Government also registered an expenditure of US 38,118 to purchase a vehicle to boost NEMO’s response capability. This process utilized a Request for Quote (RFQ) process to three local dealerships.  Using the Consultants Qualification Selection procurement procedure (CQS), an individual consultant has also been engaged under phase one of the Deployment of an Environmental Health Information System. An allocation of US$35,075 has been made but at this point, the amount spent is unknown. Negotiations for this contract were held in November 2020 and finalized in early 2021.

Observations

 The delay in the receipt of the COVAX vaccines has created some minor setbacks for islandwide vaccination coverage but the health authorities have really tried to be strategic in how they manage the immunization. Community based civil society organisations such as churches as well as the private sector, are responsive and cooperative and have been facilitating the Ministry of Health in creating the kind of partnership approach to the immunization process where they provide support to the health authorities to be able to access their own constituents to get vaccinated.

 As of March 30 2021, the funds that were reallocated under the DVRP are at approximately 80% exhaustion. The government seems to be on track with the disbursement of funds. In some instances, allocations were underquoted and in other cases actual expenditures were slightly above. There is evidence that after certain works were anticipated, some projects were cancelled because they were not as urgent and funds were diverted to offset shortfalls in other projects that were not adequately budgeted for. 

 With regards to the contractors, there is evidence that in certain areas of procurement, the government is going through the official three quote process using local suppliers on the ground in Saint Lucia. However, it is difficult for one to fully troubleshoot the method of assessment for selection, notwithstanding the fact that procurement process is guided by World Bank vetted procurement procedures. A full assessment of levels of transparency will require a more exhaustive investigation. Generally speaking, procurement procedures seem to fall within categories that were reviewed and approved by the World Bank.

Castries, February 28, 2021 (MIC) -

To date, Saint Lucia has recorded 3,779 cases of the Covid-19 virus. There have been 37 deaths. The first case of Covid-19 was recorded on March 13th from a 63-year-old woman who came from the United Kingdom. On March 23rd 2021, Saint Lucia declared a state of emergency confirming more than three times as many cases of COVID-19 in 2021 than in 2020. On March 29th Saint Lucia imposed a nightly curfew on its 180 000 or so residents.

Like other Caribbean countries, Saint Lucia’s tourism industry has been acutely affected. The overall GDP was projected to contract by 18% in 2020. 

World Bank

The World Bank approved US30 million dollars to aid with financing Saint Lucia’s Covid response. The funds were given to relieve  the negative economic effects and risks from COVID-19 on the most vulnerable parts of the population and to strengthen medium-term resilience and sustainability by: 

(i) protecting lives and livelihoods in response to COVID-19

(ii) ensuring business continuity and financial resilience

(iii) enhancing public sector and public debt management for the post-crisis recovery

This loan will be implemented by the Ministry of Finance and the project is expected to run from December 2020 to December 2021. The financing, which is from the International Development Association (IDA), is interest-free with a maturity of 40 years, including a grace period of 10 years.

Under the Contingency Emergency Response Components (CERC) Mechanism, GOSL was given the latitude to reallocate funds in support of COVID Response under two active World Bank funded projects: The Health System Strengthening Project (HSSP) to the tune of 5 Million out of the approved loan amount of US 20M, and the Disaster Vulnerability Risk to the tune of 5.5 million from an approved loan amount of US68M.  The original purpose of the HSSP was to improve the accessibility, efficiency, and responsiveness of key health services, and provide a response in the event of eligible crises or emergencies.  The financing schedule is September 2018 – October 2023, while the DVRP loan scheduling, initially due for maturation (from November 2014) at December 2019, will expire at December 2021.

The CERC mechanism allows funds to be reallocated rapidly from existing projects and used for emergency response activities. Given that COVID 19 is a health pandemic, it was easier to trigger the reallocation of funds under the Component 4 of the Health System Strengthening Project, which includes conditions for the use of funds, and can be triggered when certain actions, as agreed by the GOSL and the World Bank are met.  

The Ministry of Health and Wellness in Saint Lucia is the implementing agency of the reallocated HSSP funds. Based on published reports from GOSL, the financing for the healthcare system was is intended to “help increase testing capabilities, build isolation units, enhance public information campaigns … support the rehabilitation of Victoria Hospital and other medical facilities and create employment through the associated labor-intensive civil works that will also enhance infrastructure resilience”. The following projects are however earmarked for implementation under the US 5.5M DVRP reallocation: 

(i)  environmental Health Information System for the Ministry of Health

(ii) electrical retrofitting of the Gros Islet Polyclinic

(iii) installation of a respiratory clinic at the old 133-year-old Victoria Hospital

(iv) rainwater harvesting systems installation at the Soufriere hospital

(v) Gros Islet Polyclinic and La Clery Health Centre, sourcing of PPE

(vi) strengthening Nemo specifically with the funding of an information system and the procurement of a vehicle

(vii)procurement of Surveillance Drones relative to support Health related data

(viii) Management and Vector Control Modules.

European Union

As a member state of the Caribbean Public Health Agency (CARPHA), Saint Lucia will share in funding  from a grant from the European Union (EU) valued at about  8 million euro (US$8.6M). The grant is intended to help in the fight against the coronavirus outbreak, strengthen health security, to strengthen regional coordination, surveillance at ports of entry and rapid response teams; the institutional capacity of CARPHA in preparing for, and responding to public health emergencies; strengthen public education programmes on communicable diseases. 

The funds will  assist with the purchase of test kits, masks and other personal protective equipment (PPE), testing reagents, and other materials required for coronavirus testing. It will also help increase the capacity of regional countries to carry out laboratory testing for COVID-19, support epidemiology training, coronavirus quarantine and isolation procedures, as well as contact tracing. In addition, it will finance treatment and vaccines for COVID-19, when they become available. 

PAHO

The United Kingdom agreed to contribute 3 million Pounds (USD $3.8 m) to the Pan American Health Organization (PAHO) to help eight countries of the Caribbean - Antigua and Barbuda, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Lucia, and Saint Vincent and the Grenadines - contain the spread of the novel coronavirus disease (COVID-19) and mitigate its impact. The funds are expected to assist with the access of critical medical equipment and other urgent supplies; reduction of human-to-human transmission, including secondary infections in healthcare settings; to strengthen existing surveillance systems and scaling up laboratory capacity and for public education.

The financial contribution from the UK’s Department for International Development (DFID) is in addition to the USD $9.9m already provided by the UK Government via the World Health Organization (WHO) allocations to support PAHO’s response strategy to COVID-19 in Latin America and the Caribbean as outlined in its Donor Appeal. 

The donation from the UK Government will also contribute to the UN’s Multi-Sectoral Response Plan for the Eastern Caribbean, launched on 30 April 2020 and which aims to support countries in the Eastern Caribbean to scale-up their respective national actions to respond to COVID-19 through a multi-dimensional approach.

To date GOSL has received from PAHO - six ventilators, PPE (200,000 medical masks and N95 respirators), oxygen concentrators, laboratory supplies and other hospital accessories, and has also funded the training of human resource personnel.