Economic Transformation Strategy

CHAPTER 1 / INTRODUCTION Tackling poverty Absolute poverty levels in Seychelles are low, but inequality between rich and poor is significant. A segment of the population is therefore at risk of falling behind. The current social protection system, although it reduces poverty, is not positioned to counter growing pressures on equity and social cohesion. Spending on social transfers is already at comparatively high levels, and is heavily concentrated on older persons through the universal old age pension. The Seychelles also has a generous, broad-based transfer programme which has helped eliminate some of the worst external manifestations of poverty. By international norms, Seychelles has eradicated absolute poverty (individuals living on an income of under $1.90 per day). However, the last household budget survey conducted in 2013 highlighted a poverty rate of 39.3%, based on the national poverty line. Following this, the government is also committed to erad- icating poverty in all its dimensions, and not focusing solely on income as a poverty measure. In 2013, the distribution of wealth was highly unequal and the Gini Coefficient of inequality was estimated to be a high 0.47 compared with Mauritius at 0.39. Poverty is low by international standards but inequality is substantial 70 Inequality: latest Gini coefficient estimate 65 60 SYC 55 50 45 40 35 MUS 30 25 20 0 20 40 60 80 100 Poverty: latest estimated rate at international PPP$3.10/day Source: Seychelles Systematic Country Diagnostic, World Bank Group 27

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