Belize is an upper-middle-income country with a GDP per capita of $4,806.50. However, it has a high rate of poverty, with 41.3% of its population living at or below the poverty line. Belize's economy is small and primarily based on agriculture, tourism, and services. While tourism is the biggest driver of the economy, agriculture is the main source of income and employment for Belizeans. The country's high public debt, income disparity, and vulnerability to environmental disasters like hurricanes pose significant challenges to economic stability and poverty reduction.
What You'll Learn
Belize's income disparity
Belize has the third-highest per capita income in Central America, with a per capita income of US$4,906 in 2016. However, this figure masks a huge income disparity between rich and poor. While tourism and agriculture are the main sources of income and employment, with tourism being the fastest-growing source of income, the country's economy is small and susceptible to energy price shocks due to its dependence on energy imports.
Belize's government has sought to preserve the country's natural beauty and resources while encouraging tourism and immigration. The government's expansionary monetary and fiscal policies, initiated in September 1998, led to GDP growth averaging nearly 4% from 1999 to 2007. However, GDP growth has averaged only 2.1% from 2007 to 2016, with 2.5% growth estimated for 2017.
High unemployment, a growing trade deficit, and a heavy foreign debt burden are major concerns for Belize. The country faces continued pressure from rising sovereign debt and a growing trade imbalance. Despite its economic challenges, the Belizean government has made it a key objective to reduce poverty and inequality with the help of international donors.
The issue of income disparity in Belize is particularly evident when examining the poverty rates within the country. Belize has a high rate of poverty, with 42% of the general population affected. This rate increases for children, with up to 50% of Belizean children under the age of 15 classified as poor, and 58% of youth under 18 considered multi-dimensionally poor. UNICEF estimates that 6 out of 10 children in Belize lack at least one of their basic needs, such as adequate nutrition, clean drinking water, proper sanitation, adequate housing, and access to education and information.
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Children at risk
Belize has a high rate of poverty, with 42% of the general population affected. However, this figure rises to 50% for Belizean children under the age of 15, and 58% of Belize's youth under 18 are classified as multi-dimensionally poor. UNICEF and ECLAC estimate that 6 out of 10 children in Belize lack at least one of their basic needs, including adequate nutrition, clean drinking water, proper sanitation, adequate housing, and access to education and information.
Belize has ratified the United Nations Convention on the Rights of the Child, and various other protocols covering a wide range of human rights issues, including the sale of children, and children in armed conflict. Despite this, Belize still faces serious problems, including secondary education, child marriage, child labour, and child involvement in organised crime and gangs.
Secondary Education
While primary school enrolment is high, with an estimated 94.5% of children between 5 and 14 attending full-time, the same cannot be said for secondary education. There is no requirement for students to enrol in secondary school, and net enrolment is just 68% as of 2020. The rising costs of education are a contributing factor, with secondary education not being free, and 60% of students receiving a small subsidy of $150 per year for expenses. There are also concerns about the quality of education, with a lack of qualified teachers, basic resources, and poor facilities.
Child Marriage
Child marriage is one of the priority issues for children's rights in Belize. 20% of girls and 10% of boys aged between 15 and 19 are married, and 29% of women aged 20-29 were married or cohabiting before the age of 18. This is the second-highest level of child marriage in the Caribbean region, and evidence shows that children forced into early marriages are more likely to be out of education, as well as suffer domestic violence and sexual disease. Belize has acknowledged this problem and launched a five-year plan to end child marriage, ahead of the 2030 target set out in the UN Sustainable Development Goals.
Child Labour
Belize does not meet international standards on child labour, with the Labour Act 2000 setting the legal threshold for child labour at 12 years old. 1.6% of children aged 5-14 are in full-time work, with a further 1.2% combining work and education. Of those in work, 64.9% are employed in services, 24.6% in agriculture, and 10.5% in construction. However, these statistics do not account for children employed by gangs, or those being exploited through child prostitution and trafficking.
Gangs
Belize, and in particular Belize City, struggles with high rates of child involvement in gangs. 20% of children in Belize City report current or prior involvement with gangs, with a further 10% at high risk of involvement due to close contact with gang members. This has drastic consequences for children's rights, with 100% of the sample group reporting losing at least one friend or relative to gang violence, and a very high rate of school dropouts, with 76% reporting that they had dropped out of school. The average age of induction into gangs is 14.5 years old, with the majority reporting involvement between the ages of 13 and 16.
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Malnutrition and inadequate sanitation
Belize has a high rate of poverty, with 42% of the general population affected. This figure rises to 50% for children under 15 and 58% for youth under 18. UNICEF estimates that 6 out of 10 children in Belize lack at least one of their basic needs, including adequate nutrition, clean drinking water, proper sanitation, adequate housing, and access to education and information.
Belize's social protection system attempts to address these issues, but programme coverage gaps, implementation issues, and funding levels mean that many Belizean children still do not have access to social protection. UNICEF is working with the Belizean government to improve social protection and close the poverty gap.
Malnutrition is a significant issue in Belize, with many children lacking access to adequate nutrition. This can have long-term effects on physical development and learning, and can even impact future earnings. UNICEF's BOOST programme provides monthly cash transfers to families in need, which are often used to pay for food or school supplies.
Inadequate sanitation is also a problem in Belize, particularly in rural areas. While most residents of Belize City and other towns have access to safe and adequate water supplies, only about 80% of rural residents do. Sewage disposal is less adequate, with more than one-third of houses lacking adequate sanitation, according to government figures. In rural areas, households are responsible for disposing of their solid wastes, and many dump their household waste into rivers or the Caribbean Sea.
To address these issues, UNICEF and the Belizean government are working to improve access to social protection and basic needs for children. Efforts include consolidating existing schemes into a universal child benefits system, improving social assistance programs, and promoting innovative solutions to strengthen access to justice and support human rights.
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Unemployment and underemployment
Belize has a high rate of poverty, with 42% of the general population affected. This figure rises to 50% for children under 15 and 58% for youth under 18. The country has the third-highest per capita income in Central America, but this figure masks a huge income disparity between rich and poor.
Tourism and agriculture are the main sources of income and employment in Belize. Tourism is the number one foreign exchange earner, followed by exports of sugar, bananas, citrus fruits, marine products, and crude oil. The growing tourism industry and the commercial oil discovery in 2005 have contributed to significant economic transformation over the last two decades. However, Belize's dependence on energy imports makes it vulnerable to energy price shocks, and high unemployment remains a major concern.
The country's social protection system aims to reduce poverty and inequality with the help of international donors. UNICEF and other organizations are working to address the issue of poverty and provide social protection to vulnerable groups, including children.
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Crime and gang involvement
Belize has one of the highest homicide rates in the world, with gangs being the main source of this violence. The majority of violent crime victims in Belize are Belizeans, but there has been an increase in crimes against tourists and expats. Belize City is a hotspot for gang conflicts and shootings, with 90% of all crimes in the country occurring there.
Belize's location and heavy jungle make it an attractive destination for drug smugglers who use it as a gateway to Mexico. The country is also a transit point for the regional arms trade, with traffickers exploiting weak border controls to move weapons into neighbouring countries.
Belize's police force and justice system are widely regarded as corrupt and inefficient, and low levels of public confidence mean that crimes often go unreported and perpetrators unpunished. The Gang Suppression Unit has been involved in a number of incidents where suspects have been beaten with baseball bats or shot at with rubber bullets.
Belizean gangs are modelled after US street gangs the Bloods and the Crips. Within these broad categories exist groups such as the George Street Bloods and the Brick City Bloods, and the Majestic-Alley Crips and Ghost Town Crips. These gangs are not as sophisticated or well-organised as their Central American counterparts, but they still contribute to a significant degree of violence, including the use of firearms and grenades.
Belize has also seen an increase in human trafficking in recent years, with victims being recruited and exploited both in the country and abroad. The groups that are most at risk include Belizean and foreign females, children, and migrants from Central America, Mexico, and Asia.
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Frequently asked questions
Belize is considered an upper-middle-income country with a GDP per capita of $4,806.50 in 2017 and $4,906 in 2016. However, a 2009 study revealed that 41.3% of the population of Belize lives at or below the poverty line.
Belize has suffered major challenges that have negatively impacted its people, including a high public debt, income inequality, and the effects of environmental disasters like hurricanes.
Belize's government has implemented expansionary monetary and fiscal policies, which led to GDP growth averaging 4% from 1999 to 2007. Additionally, the government has recognized the need to reduce poverty and inequality with the help of international donors. Various organizations, such as UNICEF, are also working to address poverty in Belize through initiatives like the BOOST program, which provides monthly cash transfers to families in need.