POLICY BRIEFCHILD POVERTY AND DISPARITIES IN VANUATU

August 2012

INTRODUCTION

Vanuatu has a young population that is growing rapidly, at an average rate of 2.3% per year. Almost half of all ni-Vanuatu are children. Thus, children’s well-being is central to any assessment of social development and progress.

This policy brief summarises key findings and recommendations of Vanuatu’s Study on Child Poverty and Disparities.1 The study uses UNICEF’s Global Multidimensional Child Poverty Approach practiced in more than 50 countries worldwide. It draws on data from Vanuatu’s 2006 Household Income and Expenditure Survey and 2007 Multiple Indicator Cluster Survey as well as extensive consultations with officials from the Government of Vanuatu, non-governmental organisations and community groups.

Vanuatu ranks 125th out of 187 countries on the 2011 UN Human Development Index. Its population is largely rural and most households rely on subsistence production for their livelihoods. Increasing urbanisation and monetisation of the society are, however, gradually weakening traditional support systems, and widening development gaps between urban and rural areas.

The country is highly vulnerable to natural disasters as well as external economic shocks. There is a significant level of under-employment and, in urban areas, unemployment. The economy is projected to grow by 3.0% in 2012 and 4.5% in 2013, mostly driven by increased construction, agricultural production, and recovery in tourism.2

Vanuatu ratified the UN Convention on the Rights of the Child in 1993 and enacted the Family Protection Legislation in 2008. The current action of the Government is guided by the Priorities and Action Agenda (PAA) 2006-2015, which introduced a long term national vision – “an educated, healthy and wealthy Vanuatu”.

POVERTY AND CHILDREN

Children experience all forms of poverty more acutely than adults because of their vulnerability due to age and dependency, and because lost opportunities in childhood often have detrimental effects which are largely irrevers-ible. Falling into poverty in childhood can last a lifetime – rarely does a child get a second chance at an education or a healthy start in life. As such, child poverty threatens not only the individual child, but perpetuates a cycle of poverty across generations, which in turn undermines the growth and development of the nation.

Traditional measures of poverty are based on income or consumption levels. While important, for children such measures are far from sufficient. Understanding child poverty requires a multi-dimensional approach; analysing to what extent children are deprived of basic goods and services in critical areas as education, health, nutrition, water, sanitation, shelter, information.

Almost one in five children live below the poverty line Nationally, some 15,000 children (17% of the total child population) live below Vanuatu’s own Basic Needs Poverty Line (based on the cost of a minimally nutritious diet plus essential non-food items). Moreover, 31% of the child population experiences ‘moderate’ deprivation in at least one of the non-income dimensions of poverty. In particular, children most frequently experience limited access to health services (65%), information (55%), shelter (44%) and sanitation (38%). Lower but still significant numbers of children experience limited access to adequate nutrition (26%), education (23%), and water (16%).

‘Severe’ deprivation (no access at all) is a real challenge too. One in five children (20%) are severely deprived in at least one non-income dimension of poverty. Severe deprivation is between 3% for sanitation and 5% for education to 17% for health. Severe information deprivation (51%) was most prevalent among Vanuatu children at the time of the study, but this appears to be changing since the telecommunications reforms of 2007.

Key Points

• Nearly half of all ni-Vanuatu are children. Their well-being is central to the well-being of the nation. Investing in its children is the best investment Vanuatu can make.

• Children experience all forms of poverty more acutely than adults because of their vulnerability due to age and dependency, and because lost opportunities in childhood often cannot be regained later in life.

• One in five children (17%) live below the national Basic Needs Poverty line. Moreover, one in three children (31%) experience at least one deprivation in the non-income dimensions of poverty, such as health and nutrition, shelter and sanitation.

• Child poverty is generally higher in rural areas, particularly in remote Torba and Tafea. At the same time, urban children and their families face specific challenges too, such as increased food prices and the high cost of housing.

• While Vanuatu’s policy environment is generally conducive, more public programmes for children are needed to complement investments in health and education. Government should consider child-focused social protection interventions to ensure access and affordability of basic goods and services and to increase the resilience of children and their families.

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Poverty varies widely across regionsChild poverty rates are in general much higher in rural than urban areas. Children in the remote provinces of Torba and Tafea in particular face some of the most significant disadvantages in Vanuatu, and these challenges appear to be due to their distance from the capital and to the reliance on informal labour and home production in these areas. Whichever poverty measure is used, a high share of poor children (25-45%) live in Tafea as this province has both high poverty rates and a significantly higher share of the population than Torba.

At the same time, households in Port Vila are confronted with the higher cost of living in the capital and the greater reliance on cash incomes and the formal labour market. When the non-food expenditures are adjusted for regional costs, one in three children in Port Vila live below the Sub-national Basic Needs Poverty Line, compared to only 6% using the national standard. The share of poor children living in Port Vila is under 10%, but using the sub-national poverty line more than 30% of poor children live in Port Vila. In addition, Port Vila has significant problems with child nutrition and immunization.

Other factors that have an important bearing on whether children live in poverty include household size (with larger households more likely to experience poverty) and education (the more educated the head of a household, the less likely it is to be poor). The presence of young adults (15-24 years) in the household also increases the risk of poverty.

THE PILLARS OF CHILD WELL-BEING

Child mortality has declined, but a considerable burden of disease remainsThere has been significant progress in reducing infant and under-five mortality rates in the last two decades. These improvements have been attributed to the success of public health programs, especially those targeted at maternal and child health. The total fertility rate is declining but remains relatively high with an average of four births per women.

RegionTotal child population

Number below poverty line 1

% belowpoverty line 1

Number belowpoverty line 2

% belowpoverty line 2

Torba 4,420 1,747 39.5 1,068 24.2 Sanma (rural) 11,673 1,470 12.6 544 4.7 Penama 15,059 2,573 17.1 917 6.1 Malampa 13,081 1,445 11.0 465 3.6 Shefa (rural) 12,067 2,725 22.6 1,870 15.5 Tafea 15,786 4,099 26.0 2,784 17.6 Luganville (urban) 4,408 216 4.9 501 11.4 Port Vila (urban) 11,492 678 5.9 3,765 32.8 Vanuatu 87,986 14,953 17.0 11,914 13.5

Poverty line 1: National Basic Needs Poverty Line

Poverty line 2: Sub-national Basic Needs Poverty Lines*

National progress masks disparities between urban and rural areas, with an under-five mortality rate of less than 20 deaths per 1,000 live births in urban Shefa, and 35 deaths per 1,000 in rural Tafea. More than 80% of under-five deaths occur in the first year. Considerable disparities also exist for immunisation, with full immunisation coverage ranging from 82 to 37% in different provinces.

Vanuatu is experiencing a ‘double burden’ of diseasewith communicable and non-communicable diseases having significant health impacts. The incidence of non-communicable diseases, including diabetes and hypertension, is increasing and related to lifestyle risk factors such as use of tobacco, alcohol, physical inactivity and diet over-nutrition. The burden of malaria, however, has been significantly reduced as a result of intense efforts and high coverage of treated nets. Tuberculosis remains a challenge, especially in urban areas.3 The number of positive cases of HIV is low, but may be increasing because of risk factors (such as high incidence of sexually transmitted diseases and teenage pregnancy rates combined with low levels of awareness).

One in five children suffer from chronic malnutritionNutritional indicators, especially for children under five, have not improved substantially over the past decade. Surveys conducted in 2007 found that, nationally, 16% of young children were underweight, 20% were stunted and 7% were wasted. Malnutrition was higher among boys than girls and closely correlated with mother’s education. Rates of wasting and of overweight were higher in urban areas than rural areas. These levels of malnutrition are related to inappropriate infant and young child feeding practices (leading to both under- and over-nutrition), diarrhoeal diseases, vector-borne diseases and micronutrient deficiencies such as zinc, iodine, folate and vitamin A.

Vanuatu’s growing dependence on imported foods and staples such as rice and wheat, combined with increased global food prices, contributes to food insecurity. Urban children, particularly those in peri-urban areas are at heightened risk due to the unavailability of land for home gardening.

Table 1: Children living below the National and Sub-national Basic Needs Poverty Lines

* The subnational poverty lines adjust the non-food expenditures for the regional cost of living.

2

65

26

23

55

16

38

44

17

10

5

51

8

3

14

0 20 40 60 80

Health

Food

Education

Information

Water

Sanitation

Shelter

Percentage

Severe (no access) Moderate (limited access)

The introduction of free primary education is expected to reduce education deprivation Approximately three-quarters of primary-school-age children are enrolled in school; only 63% reach grade 5, and less than 3% of children who enrol in primary school make it through to year 13. The literacy rate is also relatively low, estimated at 74% nationwide and 69% in rural areas. In addition, only a low proportion of young children (approx. 44%) attend Early Childhood Education, which dramatically enhances school readiness. There are serious concerns about the quality of education, including qualification of teachers.

The introduction of ‘fee free’ primary education across all government-assisted schools in 2010 by means of a school grants programme has been a huge step forward in ensuring equitable access. In addition, the on-going programme for school upgrade and construction is increasing access in rural areas.

Child protection systems need further strengtheningSurveys conducted in 2007 found that only 26% of children under five were registered. The government has been conducting mass birth registration campaigns since 2009. At the current pace, it is expected that approximately 75% of all children under 5 from almost all locations in Vanuatu will be registered by 2012. Children are at a significant risk of physical, emotional and/or sexual abuse and neglect. Some 78% of parents/caregivers responding in a 2008 survey admitted to physically hurt children in the household and approximately 36% of education informants admitted that teachers practice corporal punishment.4 Significant numbers of children in Vanuatu live away from their parents in order to pursue studies or find work – exposing them to high protection risks. The estimated annual cost of child abuse and lost economic potential runs up to Vt425.4 million or 0.5-0.75% of Vanuatu’s GDP.5

Nationwide, 7% of children marry before the age of 15, and 24% before the age of 18. Early marriage or child marriage can lead to early pregnancy and deterioration of health, while depriving girls of opportunities for education, skill development and self-reliance.

State provision of social protection is very limitedTraditional and informal forms of social protection, such as wantok, remain relatively strong but are not always able to cope with the range of challenges Vanuatu faces. They leave gaps in protecting people against economic volatility and natural disasters, and access to them can be unequal. Moreover, increasing modernisation, urbanisation and land disputes are contributing to a gradual weakening of traditional support systems.

Formal social protection by the state is weak and reaches only a fraction of the population. Vanuatu’s Social Protection Index – a measure of the adequacy of formal social protection systems – is relatively low compared with other Pacific islands.6 The country does not have social transfer programmes and the Social Welfare Division (based within the Ministry of Justice and Social Welfare) is still in its early stages of development. Coverage of the two superannuation programs – the National Provident Fund and the Workers compensation system – is mostly limited to those in formal employmentin urban areas, estimated at about 20% of the working-age population. Up to one in three adults working for pay or profit in Port Vila are considered to be living in poverty – the result of relatively low wages and widespread non-compliance with the minimum wage legislation.

POLICY RECOMMENDATIONS

• Ensuring no child is deprived of his or her right to education: A significant proportion of children, especially in rural areas, never attends school or drops out before completing primary education. Lack of basic education is a key driver of poverty in the country. Access to secondary schooling is even more severely restricted. Vanuatu should maintain the momentum generated by the recently introduced policy of ‘fee free’ primary education and work towards improving the quality of education through in-service training of teachers; finalising the national curriculum reform; enhancing management and oversight; and improving the flow of information and transparency in the education sector. Capacity for service delivery to children with disabilities should be further enhanced.

• Strengthening legislation, awareness and funding for child protection: Ni-Vanuatu children are at a significant risk of physical, emotional and/or sexual abuse and neglect in their homes, schools and communities. The passing of the Family Protection Act (2008) was an important milestone, but implementation of the Act has been stalled largely due to limited funding. Moreover, Vanuatu’s laws do not comply with a number of important provisions of the UN Convention on the Rights of the Child (CRC), the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), and

Figure 1: Percentage of children experiencing moderate and severe deprivation

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the Convention on the Rights of Persons with Disabilities (CRPD). The Government of Vanuatu should maintain a strong commitment to increasing institutional capacity for the protection of children, enhancing awareness of children’s rights and improving coordination and linkages with communities’ protective structures.

• Developing an integrated and child-sensitive social protection strategy: Close to one in five children and their families live below the national poverty line, while many more face significant economic and social barriers that prevent access to services. Vanuatu does not have any social assistance programmes (either in cash or in kind), while coverage of the two superannuation programmes is essentially limited to urban formal workers. Yet, evidence from a large and growing number of countries worldwide demonstrates that formal social protection plays a vital role in strengthening the resilience of children, families and communities, achieving greater equity, and supporting national human and economic development. Moreover, recent micro-simulation analyses for Vanuatu show that new interventions, such as a child benefit, can be fiscally affordable.7 The Government of Vanuatu is therefore encouraged to investigate options for introducing social assistance programmes in a way that is administratively, financially and politically feasible; and to articulate an integrated and child-sensitive social protection strategy.

• Meeting the challenges of an urban future: Approximately three-quarters of the population live in rural areas outside the two main urban centres; however, the degree of urbanisation is high, with considerable movement from rural to urban areas, especially to Port Vila. Its peri-urban areas have acquired densely populated squatter settlements lacking basic services, creating a new urban poverty. A range of social problems are emerging among young urbanites, with high rates of unemployment contributing to substance abuse, property-related crime, prostitution and teenage pregnancy. Moreover, the high costs of housing in urban areas may limit household spending on food and other essential items. Public institutions have little experience of responding to these new challenges. Solutions should be identified and implemented – while maintaining a sharp focus on the particular needs of children in urban planning, infrastructure development and service delivery.

• Strengthening child-centred data collection, analysis and dissemination: While Vanuatu conducts regular censuses and national household surveys, the country’s monitoring and evaluation systems suffer from a number of important weaknesses. Dissemination of disaggregated data on the situation of children is limited. There is a need to build capacity for more-in-depth analysis of existing micro datasets, as well as including additional questions on children in future survey instruments. Administrative systems such as Vanuatu’s Health Information System and Education Management Information System need to be strengthened to improve the quality of information and usefulness for decision-making. The Sentinel Site Surveillance Monitoring system – established in 2009 to track the social impact of the global economic crisis and food and fuel price increases8

– should be further institutionalised and used to inform policy aimed at reducing vulnerability and exposure to risk.

Endnotes

1 UNICEF & Government of the Republic of Vanuatu (2012). Vanuatu Child Poverty and Disparities Report.

2 Asian Development Bank (2012). Pacific Economic Monitor, July 2012.

3 Government of the Republic of Vanuatu (2010). Millennium Development Goals 2010 Report for Vanuatu.

4 UNICEF (2009). Baseline Report for creating a future free from violence, abuse and exploitation of girls and boys in Vanuatu.

5 UNICEF (2009). Lifting the financial burden of child abuse: A Vanuatu case study.

6 Asian Development Bank (2006). Social Protection Index for Committed Poverty Reduction.

7 Samson, M. (2012). Micro-simulation analysis of social protection interventions in Vanuatu. Canberra: AusAID.

8 UNICEF & Government of the Republic of Vanuatu (2011). Sentinel Site Monitoring – Monitoring Resilience in Vanuatu.

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