Positioning Dominica’s Agriculture for Sustained Economic and Social Development

Dr. Dunstan Campbell

UWI Windward Outreach Lecturer


Introduction

Dominica’s economy is essentially driven by agriculture. The sector plays a significant role in the overall development of the economy. "Its significance to the economic well being is clearly reflected in national policy objectives which identify agriculture as a major vehicle towards the attainment of sustainable growth, economic diversification, reduction in unemployment levels, the restoration of macro-economic balance and stability and external credibility and competitiveness" (IICA, 1997). This situation is largely due to the performance of the banana industry. However, over the last decade, the industry recorded a constant decline in terms of production, value, number of farmers and acreage. Several factors have contributed to this decline; the most important among these is the instability that resulted from liberalization and globalization. In recent times, policy makers in Dominica and else where in the sub region are advocating a shift away from agriculture to other sectors of the economy, among these are tourism and off-shore banking. The need for diversifying the economy is recognized, however, diversification at the neglect of agriculture can cause tremendous negative consequences for the Dominican economy. This paper therefore deals with the rationale for protecting agriculture and rural livelihood and proposes solutions for addressing the situation that faces the agricultural sector

The Declining Situation

Although agriculture remains the leading contributor to Gross Domestic Product (GDP), the relative strength of it contribution in the 1990’s is much lower than in the 1980’s (IICA, 1997). This decline is largely due to the performance of the banana industry. Table 1 shows that between 1988–1999 the banana industry of Dominica recorded a 63 percent decline in production and a 62 percent decline in export value. There was also a corresponding decline in the number of farmers and acreage under bananas. Many farmers have abandoned their fields, especially those dependent on labour. Rural employment has fallen and there is evidence of declining livelihood among rural households as a result of falling financial resources that engenders a reduction to access of goods and services they previously enjoyed. At the national level, Dominica has now moved from a position of net exporter of agri-food products to net importer (see Table 2), and it is very likely that this situation will continue because of the openness of the economy and the changing food habits of the population.

Table 1: Dominica’s Export Production and Value (1988 – 1999)

Year

Exported Production (Tonnes)

Value (EC$000)

1988

74,200

101,985

1989

50,900

67,280

1990

57,900

81,947

1991

55,300

84,215

1992

59,200

82,200

1993

55,500

65,120

1994

43,047

53,370

1995

33,366

45,150

1996

39,926

44,600

1997

34,900

42,200

1998

28,642

37,600

1999

27,776

38,900

Source: Dominica Banana Marketing Corporation, 2000

 

Table 2: Dominica Agricultural Trade (EC$M)

Agricultural Trade

1991

1992

1993

1994

1995

Agri-imports

76.6

76.6

68.9

72.7

82.8

Agri-exports

96.5

96.5

84.8

70.0

60.9

Agri – Trade Balance

19.9

19.9

15.9

-2.7

-21.9

Source: CSO, Dominica

The Inherent Problem

The decline in agriculture is engendering many problems within the agricultural sector. Firstly, lands that were once productive have now become abandoned. With the growing demand for land for housing and industrial development there is rapid alienation of lands to these new sectors. If this situation is to continue it will mean therefore that agriculture will forever lose it potential to rebound, since land is the basis for agricultural production. Secondly, the people who were farming for several years, if not generations, would most likely move out of the agricultural sector bringing to an end treasured knowledge bases. Thirdly, because of the unattractiveness of agriculture many young people are not encouraged to go into agriculture, thus paving the way for further decline of the sector. Finally, there is the problem of measuring the impact of the agricultural sector. Presently, agricultural sector impact is measured by data obtained from transactions in the formal economy — where buying and selling is measured and or recorded. However, the agricultural sector does much more than that. It provides the local population with food, a significant part of which is not measured by the formal economy; it maintains rural settlements and adds to the general maintenance of the countryside, an asset for other sectors – tourism. Thus, if the present system of measuring impact or importance were to continue, then it is quite likely that agriculture would not be given the importance it deserves and would soon become fossilized.

In addition to the above, there is also an apparent problem in the organization and management of the delivery services in the agricultural community. Presently there are two organized extension services — the Ministry of Agriculture and the Dominica Banana Marketing Corporation (DBMC); both organizations service the same clientele. Although, DBMC specifically targets bananas, and the Ministry extension service targets the other crops and livestock, one finds that in most cases both officers visit the same farmer for different matters relating to the overall management of his/her operations. For instance, extension officers of the Ministry do work with banana farmers on issues relating to general farm management. There is therefore need to rationalize these services. In addition, the Departments and Units within the Ministry do not always synchronize their activities. It is not uncommon to find the extension services focusing on one commodity and the other units within the Ministry focusing on something else.

Some Options

The alienation of lands is a development issue that all countries, developed and developing, must address. In small island states, this issue is even more critical because of their size and inability to access and use technologies that will dramatically increase productivity — Dominica is no exception. In this regard, a Land Bank concept should be embraced to address the issue of alienation. Land Bank attempts to ‘restructure the institutional framework of land ownership and use’ (Davis 1983) and can be used as a strategy for planned development. This strategy should include five components:

  • Method of possession
  • Land use strategy
  • Management strategy
  • Mechanism for tenure security
  • Development strategy

Method of Possession

In countries where Land Bank operates, United States, Western Europe and Israel for instance, the State possessed large tracts of land. Where such situation exists, it is relative easy to start a Bank. In the case of Dominica, the State no longer possesses large tracts of land. Most of the estates that once belonged to the State are now divested. Remaining lands under the jurisdiction of the State should be placed in the Bank. Lands that are zoned as agricultural lands and are not in use should be acquired and the owners duly compensated or a lease arrangement should be negotiated. Land issues can bring out strong emotions; as such, when dealing with this issue one should opt for the path of least resistance. Nonetheless, the Bank should be given the authority of first choice for all available agricultural lands put up for sale.

Land Use Strategy

Land use within the Land Bank should be based on a national land use policy. This policy should attempt to zone all lands; that is, lands for agriculture, tourism development, industrial development, housing, recreation, and preservation of biodiversity. It is within these established zones that a land use strategy for the Land Bank should be developed. This strategy should clearly define the types of crops to produce and livestock to be reared and what technology should be used to produce them. Incentive and support mechanisms should be put in place to assist these farmers to comply with the demands. The Ministry of Agriculture therefore has an opportunity to focus on specific commodities for specified markets. Production technology should be consistent with the overall goals of sustainability. Preservation of Dominica’s image as the Nature Island of the Caribbean should not be compromised.

Management Strategy

An Authority that will have the legislative power to act should manage the Land Bank. Consensus should be sought from all stakeholders before establishing the Authority. A Consensus Conference is recommended as a means of gaining the cross sectional acceptance of the idea and developing the legislative framework for the operation of the Bank. Most importantly the Bank should be independent of political control.

Mechanism for Tenure Security

One the biggest problem that land reform has to address is the issue of security of tenure. The Land Bank concept addresses this issue from the point of view of access to land. In the Caribbean, speculation of lands is a growing concern because of the demands made on lands for other development purposes. To date, land reform processes in Dominica use the sale of lands as a means to have access. This is a questionable strategy for sustainable development because of the lack of an effective legislative framework to safeguard the use of the lands. It is not uncommon to find that farmers buy lands under land reform programmes intended for specific development and in a very short space of time put those lands for sale for different purposes. In other cases, farmers effectively use the lands to achieve specific objectives; for instance, the education of their children, and having achieved their objective, abandon the lands, which then enter the land market for alternative use. Land Banks should therefore give access to lands through a lease mechanism. This lease should be mortgageable and transferable. The use of the lands should be made clear by covenants, which should be guided by a land use strategy.

Development Strategy

The Bank should possess the power to buy and sell lands. The strategy of buying and selling should be directed towards meeting specified goals. For instance, if the production of a crop requires certain acreage for efficient production and in that particular area the existing farms are too small, then the Bank should buy and sell available lands to make inefficient farms efficient. This strategy can also be used to address fragmentation. In rural France the programme of ‘remembrement’ is geared towards that objective. Also, a programme of incentive and support system should be put in place to encourage farmers in the Bank to participate willingly in the production of targeted commodities.

The Land Bank concept by itself will not produce its desired results if the agricultural delivery services in Dominica are not reorganized. Just like the farms, there is too much fragmentation in the agricultural delivery services in Dominica. The Ministry of Agriculture and DBMC must get together to rationalize their services. To do this, the organizations responsible for the delivery of services and stakeholders must come together to decide on priorities and to develop programmes and mechanisms for delivery of such programmes. The University of the West Indies, Outreach Programme has developed approaches that can address such problem. One such approach is Joint Focused Programming. Briefly, Joint Focused Programming proposes the bringing together of all stakeholders to focus on commodities for which there is potential to impact — on export and food security — and mechanisms for developing and implementing those programmes. Most importantly, Joint Focused Programming attempts to address the issue of ‘peacockism’ within and among organization servicing agriculture.

Using the Land Bank and Joint Focused Programming, Dominica can position itself to take advantage of commodities for targeted markets. Dominica’s size does not allow it to control markets for the commodities for which it has potential to produce. Dominica’s strength should therefore lie in its ability to seize market opportunities as they become available. Indeed, moving in and out of markets should be a clear strategy. The Land Bank with its institutional arrangements can provide the critical mass to make this shifting strategy successful. Sustainability of Dominica’s agriculture can be built around this premise. For instance, if hot pepper is selected as a targeted commodity the Ministry through the Bank can identify lands and farmers to put in place a production, marketing and incentive system to allow the commodity to take off. Once the commodity has taken off then other farmers who are not in the Bank would be attracted to the programme because of its success. If hot pepper fails, then the institutional mechanisms of the Land Bank should facilitate the change over to another commodity without causing too much negative effect on the farmers and rural households.

Conclusion

Dominica’s economic development is at crossroads. The Banana Industry that once provided the foundation for economic development is now threatened. Planners are looking for other means to stimulate the economy. It is extremely important that in this search for new initiatives planners should recognize the significance of agriculture not only as foreign exchange earner but also as a stimulant for other economic activities. The Government of Dominica must therefore look toward innovative ways of addressing the present situation so that Dominica’s agriculture can position itself on a path for sustained growth and development. Some of these measures are presented in this paper. The Land Bank and institutional reorganization of the organizations providing support to the sector are certainly options that can ensure ready access and support mechanisms, both of which are critical in restoring the confidence that agriculture once had. If these are embraced, then Dominica can be well positioned to achieve sustained economic and social development.

References

Campbell D.A. Land Reform for Sustainable Agricultural Development in the Caribbean. Presented at the 27th Annual Meeting of the Caribbean Food Crop Society, Dominica, July 1991.

Geisler C. and Popper F. Land Reform, American Style; Rowman & Allanheld, 1993

IICA, Agriculture in Dominica – Sector Profile, 1997


URL http://www.uwichill.edu.bb/bnccde/dominica/conference/papers/CampbellD.html

© Dunstan Campbell, 2001. HTML prepared using 1st Page 2000, revised February 15th, 2001.

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