GDP per capita in the Comoros remained stagnant in the 1980s and contracted by 1 percent in the 1990s. This is mainly due to two factors -- the high population growth rate (2.7 percent) and the low rate of economic growth (around 1 percent). GNP per capita was estimated to be about US$584 in 1992; however, after the January 1994 devaluation, this figure was revised to US$510 per capita for 1994. Social indicators are a little more favorable than those of other developing countries in the same income group. Fifty percent of the adult population is illiterate, and infant mortality is estimated at 90 per thousand. Life expectancy is estimated to be 56 years.
Although the Comoros is a poor country, extreme manifestations of poverty such as famine or homelessness are rare. The great majority of people have access to adequate food, clothing, shelter, and, to some extent, water. Data from the 1991 census support the premise that poverty is not widespread and not very severe. A household consumption survey is currently being undertaken, and preliminary results should be available in 1996
Poverty Profile Due to limited data, it has not possible to draw a conclusive poverty line. However, the 1991 census provided some useful information in identifying population groups that could be living in poverty. Comorians live in tightly knotted rural villages and small towns. The traditional social safety net works well within a village but not across villages. Villages tend to protect their poorest members. This is due to the fact that communities are moral and give money to their poorest members, but transfers are not made between villages. Thus, the overall level of poverty can differ sharply from one village to another.
Grande Comore (223,000 inhabitants) is the richest island with income coming from the civil service, the formal and informal sectors, agriculture, and a high level of transfers from migrant residents in France. Anjouan (188,000 inhabitants) is the poorest island, where land is becoming increasingly scarce due to high population density and high fertility rates. Remittances from abroad are limited. About 20 percent of households are landless sharecroppers or squatters -- these are likely to form the bulk of the truly needy in the Comoros. Education rates are noticeably lower in Anjouan than on the other two islands. Local surveys have shown high malnutrition rates among children. Environmental problems are particularly severe with the erosion of watershed. Moheli (24,000 inhabitants) has a low population density and has become the target of significant migration from other islands. Its remaining natural forest is quickly being depleted. Infrastructure is much less developed than elsewhere in the country
Limited employment opportunities due to slow economic growth contribute to a large extent to poverty in the Comoros. The relatively high wages (in foreign currency terms) and low productivity levels have also contributed to increased poverty as the Comoros is not competitive in international markets. These high wages have constrained the growth of formal sector enterprises, with the number of formal sector employees growing by about 4 percent a year. This figure is above the population growth rate but not nearly enough to absorb a growing number of school dropouts.
Incentive and Regulatory Framework Growth is to be export led, with increases in per capita income and a more equitable income distribution. During the current reform program, growth will be led by agriculture (for domestic and export markets) and tourism. These sectors were favored by the 1994 devaluation. The Comoros' long-term strategy is to increase growth by increasing productivity in agriculture and developing the small-scale and informal sector, while expanding into new areas such as tourism, export processing, and financial and other business services. This growth strategy would generate employment at all levels of the economy, and, as productivity expands, it should cause real incomes to rise. Growth in agriculture, including productivity growth, would benefit the small-scale farmers who constitute the bulk of the poor and near poor.
Agriculture accounts for about 40 percent of GDP, and, aside from a few large plantation owners it takes place on a small scale. The agricultural economy is heavily monetized. This has allowed small-scale farmers to benefit from the recent devaluation directly but at the same time has made them vulnerable to price changes for imported items such as rice. The major environmental problems of the Comoros are closely linked to poverty.
The falling productivity of agricultural land is due to the high population growth rate and slow acceptance of improved agricultural technologies, which itself is related to the low education level of most of the adult population. The National Environmental Action Plan was adopted and is expected to have a positive effect on poverty and the environment by improving land tenure.
Public Expenditures Public expenditure programs for health and education have been prepared for 1995-97. A "safety net" was put in place to safeguard social expenditures in health and education in real per-capita terms while at the same time efforts are being made to increase the efficiency of social sector spending. For example, in order to reduce bureaucratic bottlenecks within the Ministry of Health, bank accounts were opened for each health facility to ensure that agreed quarterly budgetary transfers were put directly into the individual health facilities' bank accounts. This was done in parallel with the implementation of health sector reforms enabling each health facility to function in an autonomous manner in its financial as well as managerial aspects, thereby putting in place cost recovery mechanisms. However, to date, actual transfers have yet to be made to the heath facilities' individual bank accounts.
Social Safety Net A strong traditional safety net consisting of the extended family, supported in part by transfers from abroad (estimated at US$118 per capita per annum between 1989-93), plays an important role in the Comorian society.
In order to build on the tradition of dynamic tightly knit communities, the Comorian government put in place a Community Development Support Fund (Fonds d'Appui au Développement Communautaire), which has successfully implemented community- based projects on the three islands.
Given the matrilineal inheritance and responsibility structure, women are not thought to be an especially vulnerable group.
Poverty Strategy The poverty reduction strategy emphasizes overall economic growth with equity, promotion of job creation activities, improved services to the poor, especially primary education and health care, and a family planning program. It also requires that resources be distributed better over the various facilities on the three islands. Social services will be improved by rationalizing the personnel structure of the Ministries of Health and Education in favor of more qualified staff. For example, a new organizational structure was put in place in the Ministry of Health and staff are in the process of being re-deployed in accordance with the new program. In addition, the government will have to show a stronger commitment to family planning activities. Finally, the government should build on the country's comparative advantage of tightly knit villages and dynamic villages and support self-managed community-based initiatives.
Statistical System Statistics in the Comoros are of poor quality and are collected at irregular intervals due to a lack of funding. A comprehensive household consumption and expenditure survey is planned in 1996. This will give a better idea of where pockets of poverty may exist and provide a framework for monitoring the poverty situation, including the impact that economic reforms are having on the living standards of the poor.
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