Five years of disaster in St Lucia: How Allen Chastanet's term made country a weaker economy

St Lucia experienced a socio-economic downfall in five years under the leadership of former Prime Minister Allen Chastanet. The economy faced an unprecedented fate; the crime rate increased with the highest number of homicides in history, and per capita income drastically falling due to the failed handling of the COVID-19 pandemic. When Allen Chastanet assumed office as the Prime Minister of St Lucia, the unemployment rate started to increase. In 2019 the unemployment rate was 17.13%, with an average increase of 1.54%. As per statistics, the average annual income of an individual in St Lucia was USD 10,000; however, with the lack of leadership, it reduced to USD 8,790 in 2020, making lives difficult for the general public amid a global pandemic and economic crisis. The United Workers Party-led government not only failed at handling the COVID-19 from spreading, but it also failed in providing stimulus packages and financial support to its citizens directly impacted by the pandemic. As per the data by World Bank, St Lucian Gross Domestic Product (GDP) fell by 20 percent in 2020, and the country underwent a sharp increase in public debt to 87% of the GDP.

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"Real GDP contracted by an estimated 20.4 percent in 2020, the deepest decline since 1980. Almost 45 percent of the population working pre-pandemic had stopped working in May 2020, mostly due to COVID-19 related business closures," the World Bank added in its review report on COVID-19 pandemic in St Lucia

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The World Bank report on St Lucia added that the poor and vulnerable groups were disproportionately impacted by the crisis, compounded by potential threats from exposure to extreme climate-related events, exacerbated by climate change. [caption id="attachment_41273" align="alignnone" width="1524"] World Bank figures on St Lucia[/caption]

The World Bank also released a list of suggestions for the government which then PM Allen Chastanet failed to follow.

While as per the World Bank, the rate of unemployment in St Lucia in the year 2015 had decreased, with an improving income-generating ability of households.

Under the Allen Chastanet government, Saint Lucia faced unique development challenges, including the vulnerabilities of a less diversified economy and high exposure to extreme climate-related events.

The World Bank report on St Lucia added that the poverty decreased between 2006 and 2016 (the latest available data).

The COVID-19 pandemic brought great challenges to public health and caused significant socio-economic damage. Tourism in Saint Lucia fell sharply in 2020, following the almost complete halt of international travel and causing a severe economic contraction. The pandemic disproportionately affected the poor and vulnerable, who have limited access to basic goods and services, posing threats to food security.

"The uncertainty and severity of the pandemic magnified the existing high risks related to disasters and external shocks. Weakness in institutional capacity and risks to debt sustainability also constrain the government's ability to cope with these risks," the World Bank report further added.

The report added how females were mostly impacted by the unemployment caused by the closure of businesses among pandemic, however the government failed to facilitate any support and made lives difficult.

The situation not only created an economic depression, but it also impacted the mental health of people. Many faced challenges because of unemployment and couldn't afford basic lifestyle. Instead of taking actual actions, the government sat and watched St Lucia shedding into pieces. shedding into pieces.