EDITORIAL :Belize City, Monday 24th April 2023

By: Omar Silva, NP Editor in Chief

The global cost-of-living crisis has brought to the forefront the need for targeted social assistance to vulnerable households in Belize. While the International Monetary Fund (IMF), the World Bank, and the Economic Commission for Latin America and the Caribbean (ECLAC) have advised governments to implement policies that directly assist families in need, the Belizean government's recent decision to amend the Supplies Control Act has been criticized for not doing enough to help struggling families.

To combat the effects of the cost-of-living crisis, the government of Belize needs to expand social safety net programs and subsidies to provide immediate relief to Belizean families and MSMEs in the productive sector. This could take the form of targeted cash transfer programs that prioritize households with children, the elderly, and people with disabilities who are particularly vulnerable to the effects of rising prices. Additionally, expanding existing social protection programs such as food assistance, housing subsidies, and health care services could provide support to those most in need.

Addressing the root causes of the cost-of-living crisis is also essential. This could involve pursuing fiscal reforms to improve tax collection and revenues and structural reforms to increase productivity and competitiveness. By promoting economic growth and reducing inflation, the government can help alleviate the burden of the cost-of-living crisis on the most vulnerable households in Belize.

However, in a situation where the entire population is affected by the cost-of-living crisis, it can be challenging for the government to accurately identify the poorest of the poor. To address this challenge, the government can use various methods and tools to identify households that are most in need of support. One approach is to use a targeting mechanism based on socio-economic criteria, such as income level, education level, household size, and demographic characteristics. The government can collect this information through surveys, census data, or other means of data collection.

Proxy means testing is another approach that involves using a set of observable indicators that are correlated with income or poverty status to identify households in need of support. For example, the government could use a combination of household assets, access to services, and demographic characteristics to determine which households are most in need of assistance. Additionally, the government could use community-based targeting approaches, which involve working with local community leaders and organizations to identify households in need of support.

In conclusion, targeted assistance can help alleviate the burden of the cost-of-living crisis on the most vulnerable households in Belize. By providing direct support to those in need and addressing the underlying causes of the crisis, the government can help improve the well-being of its citizens and promote inclusive economic growth. It is crucial for the government to consider multiple approaches and continually assess and refine targeting mechanisms to ensure that support is reaching those who need it the most.