Joint IDB-World Bank Report Highlights Pathways to Reducing Poverty in Suriname

PARAMARIBO, Suriname - The 2022 Suriname Poverty and Equity Assessment, conducted by the Inter-American Development Bank (IDB) and the World Bank, reveals a national poverty rate of 17.5% based on the World Bank's upper-middle-income threshold of $6.85 per day (2017 PPP). The report, presented today at Anton de Kom University in Paramaribo, also highlights that around 1.1% of Surinamese live in extreme poverty, subsisting on less than $2.15 daily.

The assessment comes at a crucial time as Suriname is gradually emerging from a severe economic crisis. After implementing stringent reforms, the country's economy is showing signs of recovery. To build on this progress, the Poverty and Equity Assessment provides insights to help Suriname distribute the benefits of recovery more equitably, ensuring that support reaches those most in need.

The assessment identifies several key factors contributing to poverty in Suriname. Among the primary issues are deficiencies in skills and education, leading to a shortage of qualified workers. Another factor is inadequate social assistance coverage, especially for poor households with children. Despite extensive coverage of a child allowance program, the financial transfers to families are modest. As a result, families with children experience a significantly higher poverty rate compared to those without children-approximately 22% versus 8%. This disparity, along with child poverty, can lead to limited access to education, healthcare, and other essential opportunities, hindering children's future development.

The study also revealed that Suriname is not capitalizing on the higher educational achievements of women, who have a low participation in the labor force. Women substantially outperform men in school, with a tertiary education completion rate of about 15 percent compared to only about 6 percent for men. However, this strong educational performance does not translate into favorable labor market outcomes.

The report finds that historical inequities are still driving patterns of poverty and inequality. More than one in four Surinamese in the interior of the country lives below the upper-middle-income line, compared to about one in six at the national level.

"By understanding the underlying issues, we can better address them and create sustainable solutions," emphasized Adriana La Valley, IDB Country Representative in Suriname.

"The poverty assessment describes the most pressing priorities to address poverty in Suriname and can contribute to policy decision-making to help Surinamese most in need," said Diletta Doretti, World Bank Resident Representative for Suriname.

As Suriname explores new strategies to rekindle growth in a post-pandemic world, the report suggests key policy recommendations:

• Enhancing social assistance programs to address poverty and inequality
• Maintaining macro-economic and fiscal stability and enhancing accountability
• Preparing for effective management of oil revenues to ensure sustainable growth
• Prioritizing education and skills development
• Improving labor market outcomes for women
• Put a special focus on the interior of the country and historically marginalized groups

"I am pleased with the pathways to reducing poverty highlighted in the Poverty and Equity Assessment. We will use this information to make informed decisions that enhance the well-being of our citizens and create a more equitable society," said Stanley Raghoebarsing, Minister of Finance and Planning, Government of the Republic of Suriname.

This report is a result of collaboration between the IDB, the World Bank and key Surinamese counterparts, including the Poverty Committee and the academic community at the Anton de Kom University.

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