May 15, 2008 -- The National Assessment of Living Conditions (NALC) in the Cayman Islands was conducted from late in 2006 to the middle of 2007 by Kairi Consultants Limited (Kairi) in collaboration with the National Assessment Team (NAT) of the Cayman Islands. The study was commissioned by the Caribbean Development Bank (CDB) with the support of other development partners.

The objectives of the study were, inter alia:

• To assess the current living conditions affecting the welfare of the people of the Cayman Islands;

• To identify the policies, strategies and programmes that would reduce poverty in the Cayman Islands;

• To assess the effectiveness of existing responses of governmental institutions and nongovernmental institutions in addressing the poverty situation in the country;

• To develop recommendations setting out strategic options for addressing critical issues emerging from the study; and

• To train members of the NAT in the conduct of assessment of living standards.

METHODOLOGY

The study consisted of a Macro-Economic and Social Analysis (MESA); a composite survey comprised of a Survey of Living Conditions (SLC) and Household Budgetary Survey (HBS); a Participatory Poverty Assessment (PPA); and an Institutional Analysis (IA). These four components of the study combined quantitative and qualitative research methods, in ways that complemented each other to provide a comprehensive picture of living conditions in the Cayman Islands.

The combined SLC/HBS was a comprehensive survey which combined a survey of living conditions with a survey of household income and expenditure, and collected information through the administering of questionnaires to a sample of 1,144 households or 3,230 persons, representing 6 percent of the population.

The information sought consisted of four types: Demographic and Other Individual Characteristics, Living Conditions, Expenditure, and Access to Public Services.

The IA involved the collation of primary data from interviews with personnel in some seventy two (72) organisations, and from secondary data available in reports and other relevant documentation, on their operations and performance. Where possible, these data were supplemented by information from community residents, obtained during the PPA.

The fundamental objective was to establish the degree to which organisations are pro poor in their work, and to determine how the system of organisations and institutions in the country collectively services the poor, the vulnerable and the society in general.

The objective of the PPA was not to measure poverty but rather to provide insights on the perceptions, experiences and effects of difficult living conditions on individuals, households, groups, and resource-poor communities. Using a purposive sampling technique with specific criteria, 10 communities were selected.

These included 9 communities in Grand Cayman: 2 in George Town, 2 in West Bay, 1 in Bodden Town, 1 in East Side, and 1 in North Side; and 2 in Cayman Brac. Little Cayman was treated as 1 community: because of the small population, a different research approach was adopted. Here, only field interviews were conducted with specific individuals and households. During the PPA, qualitative data were collected through a range of diverse methods, including field research interviews with household members and community leaders as well as community workshops, focus group discussions, and transect walks. A number of in-depth interviews were also conducted with selected individuals; these form the basis for a the case studies presented in the report.

The findings of the MESA form the context within which the quantitative and qualitative data gathered in the field, can inform understanding of conditions. The country has had a remarkable transformation since the days when, according to a government annual report at the time, the main ‘export’ was seamen whose remittances were the mainstay of the economy.

Over the last 30 years, government administrations have pursued policies aimed at developing the infrastructure, education, health and social services of the Islands, fostering the stability which is an important factor in the continued growth of Cayman’s two main industries, tourism and financial services. Together, these sectors significantly altered the international status of the Cayman Islands, from a peripheral dependent economy in the first half of the 20th century, to being one of the major off-shore financial centres in the world.

The high growth rate has been sustained with imported labour, filling all the positions that Caymanians are not willing to work at, and in higher level positions where there are not enough qualified Caymanians available. The high labour inflows have threatened to overwhelm the Caymanian population. This has triggered policy measures designed to keep numbers to levels just under the number of Caymanians, and to rules that make it difficult for immigrant labour to spend the number of years in the country that can lead to qualification for permanent residence status. High per capita income has made the country one of the richest in the Western Hemisphere, with standards of living for many, that are equivalent to that of a developed country.

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