Belize's Poverty Paradox: Unraveling The Income Inequality Mystery

Belize is a small country in Central America, with a population of over 360,000 people. Despite being considered an upper-middle-income country, Belize has a high poverty rate. In fact, 41-43% of its population lives at or below the poverty line, with 16% facing extreme poverty. The indigenous Maya population is particularly vulnerable, with a poverty rate of 68%. Belize's economy relies heavily on tourism, agriculture, and exports, and while these sectors have faced challenges, the country is working towards reducing poverty and inequality with the help of international donors.

Income disparity

Belize has the third-highest per capita income in Central America, with a per capita income of $4,906, leading the World Bank to consider it an upper-middle-income country. However, this figure masks a huge income disparity between rich and poor. While the average monthly salary is BZ$2,500 to BZ$3,000 for skilled workers, the minimum wage is BZ$3.30 per hour, or BZ$594 per month.

Belize's economy is primarily based on tourism, agriculture, and services, with each sector contributing differently to wage levels. Jobs in the tourism industry, such as hotel management and tour operations, tend to offer higher wages due to their significant contribution to the GDP and the competition for experienced workers. In contrast, agricultural jobs, which predominate in rural areas, often pay less. Urban areas, especially Belize City and other major towns, typically offer higher salaries due to a greater concentration of businesses and a higher cost of living.

Education and skills also play a crucial role in determining income levels in Belize. Higher educational attainment and specialised skills that are in high demand generally lead to better-paying opportunities. Professionals with specialised skills or higher academic qualifications can often command salaries above the national average.

Another factor influencing income disparity in Belize is foreign investment. The presence of foreign-owned companies or direct investments can shape the salary landscape, as they may offer wages that differ from locally-owned businesses, either due to different business models or attempts to attract international talent.

Belize also faces a gender wage gap, with women earning less than men for similar roles across various sectors. This gap persists despite advancements in women's education and increased workplace participation rates. Societal and cultural biases, as well as discriminatory practices during hiring, promotion, and pay-setting processes, contribute to this disparity.

Poor infrastructure

Belize's infrastructure is poor and extremely limited. The country has only four major paved roadways, and generally, other paved roads are privately owned and maintained. While the highways are in fairly good condition, roads in Belize are rough outside of urban areas, and it is a good idea to have the option of four-wheel drive.

Belize's road network was improved in the 1980s, but not enough to support significant growth in travel, tourism, and manufacturing. Some roads, including major sections of highway, are vulnerable to damage or closure during the rainy season. However, the government has been working to improve the road network. In 1998, a US$14.7 million renovation of the Southern Highway began, and another US$8.5 million was allocated for the construction of a bypass road and two bridges in northern Belize. The OPEC Fund for International Development (OFID) has also helped finance the rehabilitation of two sections of the Southern Highway, which serves remote agricultural areas and connects southern parts of Belize to the rest of the country and Guatemala.

Internet access in Belize has historically been poor and expensive, but it has improved in recent years, and many users are now opting for wireless services. While the internet is passable in Belize City, it remains poor in the rest of the country.

Belize's infrastructure challenges also extend to its ports and airports. The country has ten ports of entry, with the largest being Belize City. Nine major shipping lines run cargo services in and out of this port. The Philip Goldson International Airport, located nine miles from Belize City, handles the majority of the country's commercial air traffic. However, it is only served by three international carriers, and direct flights are limited to a few destinations in the US and El Salvador.

Lack of access to healthcare

Belize has a relatively well-established medical care delivery system, with both public and private healthcare options available. However, the quality of medical care in Belize does not meet the standards of North America or the European Union. This is due in part to the country's small population and economic situation, with more than half of its residents living in poverty. As a result, there is a lack of access to healthcare for many Belizeans, particularly those in rural areas.

The government operates hospitals or polyclinics in every major city, town, and other major population centers and villages. However, the country lacks a level-one trauma center, and medical evacuation coverage is recommended for foreign nationals. The majority of the country's 24/7 hospitals are located in Belize City, with additional hospitals in San Ignacio, Corozal, Dangriga, and Punta Gorda offering 24-hour care. Outside of these urban areas, access to healthcare becomes more limited. There are currently no hospitals on the cayes or in Placencia or Hopkins, and many rural areas lack access to public clinics.

Belize's healthcare system is funded primarily through income tax revenue, which is insufficient to support a large number of public hospitals. As a result, the country has relatively few healthcare facilities and specialized staff and limited equipment. While medical attention is more personal, it is not as advanced as in North America. Most expats and locals who can afford it opt for private hospitals, which offer superior and more comprehensive care.

The Ministry of Health (MoH) is the government agency responsible for overseeing the health sector and is the largest provider of public health services in Belize. The MoH offers affordable care to the majority of Belizeans, with a strong focus on providing quality healthcare through various public programs and institutions. However, due to funding issues, hospitals under the MoH, such as the Karl Heusner Memorial Hospital, have faced challenges with equipment problems, medical supply shortages, and operation management issues.

Belize has made significant changes to its healthcare system over the years, and as a result, has seen improvements in certain areas, such as vaccine-preventable deaths. However, several key areas of national concern remain, including the high prevalence of communicable and non-communicable diseases, health problems related to human behavior and lifestyle, anemia, malnutrition, limited equity in access to healthcare, and an inefficient healthcare delivery system.

The country's socio-economic context contributes to tenacious inequalities within the population, particularly affecting children. According to the 2019 annual report of UNICEF Belize, 49% of Belizean children lived in multidimensional poverty, directly impacting their health status. To address these issues, the Belizean government, in collaboration with UNICEF, has initiated the Country Programme 2017-2021, which aims to implement more coherent interventions in areas such as protecting children from violence and abuses, improving access to quality education, strengthening the social protection system, and reducing multidimensional poverty.

High unemployment

Belize has a high unemployment rate, which is a major concern for the country. In 2022, the unemployment rate in Belize was 8.67%, a decline from 10.16% in 2021. However, the last two years have recorded a significantly higher unemployment rate than the preceding years. This indicates a worrying trend of increasing unemployment in the country.

Unemployment in Belize has significant social and economic implications. Firstly, it contributes to the income disparity between the rich and poor, exacerbating poverty levels. Despite having the third-highest per capita income in Central America, Belize faces high levels of poverty, with 43% of its population living below the national poverty line and 16% facing extreme poverty.

Secondly, unemployment can lead to social issues such as increased crime, drug abuse, and mental health problems. This can create a cycle where unemployment and social issues reinforce each other, making it challenging for individuals to escape poverty and find stable employment.

Moreover, unemployment in Belize is influenced by various economic factors. The country's economy is heavily dependent on agriculture, manufacturing, and tourism, which are susceptible to fluctuations in commodity prices, weather conditions, and external economic shocks. For example, Belize's dependence on energy imports makes the country vulnerable to energy price shocks, impacting its economic growth and employment opportunities.

Additionally, Belize's high debt repayments restrict the government's ability to address unemployment effectively. The country's slow-growing economy and high debts limit the government's budget for social services and investment in human capital, impacting initiatives to reduce unemployment.

To combat high unemployment, Belize needs to diversify its economy, reduce its debt burden, and invest in sectors that create sustainable job opportunities. Addressing unemployment is crucial for reducing poverty, improving social conditions, and promoting long-term economic growth in Belize.

Low educational attainment

Belize's education system is based on the British system, with some influence from the US academic syllabus, primarily through Jesuit missionaries. The system is divided into five sectors: preschool, primary school, secondary school, tertiary (junior colleges/sixth form), and adult and continuing education. While primary education is compulsory and free, there are still costs associated with uniforms, books, and fees, which can be a financial strain on poor families.

The network of secondary schools and vocational training facilities can only accommodate half of the pupils who complete primary education. Secondary schools are not free, and government financial aid is often inadequate for low-income families. As a result, it is estimated that 50% of secondary school students drop out before completing their studies. In some city schools, the dropout rate reaches 70%, caused mainly by a lack of funds, poor discipline, and teenage pregnancy.

Higher education opportunities in Belize are extremely limited and expensive, with only a small percentage of Belizeans receiving any form of post-secondary education. The University College of Belize is the largest institution of higher learning in the country, but few poor young people benefit from it, as the system favours children of richer city dwellers.

The literacy rate in Belize, estimated at 75-90%, is the highest in Latin America. However, studies have shown that up to one-third of primary school students drop out before turning 14, with higher dropout rates in rural areas due to the seasonal demand for agricultural labour. Additionally, many poor parents do not prioritize education, seeing few benefits from secondary or tertiary schooling. As a result, the children of these families are ill-equipped to find employment in an economy where secondary school credentials are considered the minimum requirement.

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