Social Impact Issue Brief

I did this research on the Unemployment of Sugar Estate Workers in Guyana for a BYU class called Social Impact: Do Good Better, offered by the Ballard Center for Social Impact. I thought you might be interested in what I learned about this fascinating social problem. I’d love to answer any questions you have!

Summary

The closure of many sugar estates in 2017 has had a profound impact on the livelihoods of thousands of estate workers in Guyana. These workers, who were once the backbone of the sugar industry, have been left without a steady source of income, and many have been unable to find alternative employment. As a result, they have been forced to rely on their savings, which are quickly dwindling, or turn to precarious and low-paying jobs in other industries.

The impact of this situation is not limited to the workers themselves. The closure of the sugar estates has had a ripple effect on the communities surrounding them, which largely sit below the poverty line. The loss of income has led to an increase in domestic violence and alcoholism among the residents of these communities, exacerbating the already dire social and economic conditions they face[1]. The closure of the sugar estates has also created a generational poverty trap for many families. Children of former estate workers are now growing up in households with limited access to education, healthcare, and other basic services. This lack of resources will likely limit their opportunities in life, perpetuating the cycle of poverty that has already affected their parents and grandparents. The response to this crisis from both the government and private sector has been largely insufficient. Temporary measures, such as one-time payments to affected workers, have provided some relief but have not addressed the underlying issues of unemployment and poverty[2]. More long-term solutions are needed to ensure that former estate workers and their families have access to sustainable sources of income and social support.

One potential solution is to explore alternative uses for the sugar industry[3]. Discussions are ongoing to identify new industries that could be developed in the areas formerly occupied by sugar estates, providing new job opportunities and economic growth. However, these efforts must be paired with comprehensive social programs that address the broader needs of the affected communities[4].

Key Terms

Unemployment-?refers to the state of a person who is actively seeking for employment but is unable to find work.[5]?This is the reality of many unskilled sugar estate works in Guyana circa 2017.

Poverty-?According to the World Bank, poverty is defined as "the inability to achieve a minimum level of well-being as measured by the standard of living, including income, consumption, and access to basic services such as education, healthcare, and sanitation."[6]?Poverty exists as a monolith with respect to the issue of unemployment of estate workers in Guyana, as it is a contributing factor as well as a negative consequence of their unemployment.

Generational poverty- This type of poverty can be particularly challenging to overcome due to its entrenched nature and its impact on a person's physical, emotional, and mental well-being.?Generational poverty is a term used to describe a state of persistent poverty that extends across multiple generations within a family[7]. According to a report by the International Labor Organization (ILO), many of the sugar workers who have lost their jobs in Guyana come from families that have worked in the industry for generations, and their livelihoods are deeply connected to the sugar estates.

Brain Drain- is the?emigration?of highly trained or intelligent people from a particular country. With the shutting down of many of the sugar estate communities in Guyana, skilled persons left the country in search of job opportunities where their skilled are awarded value. This phenomenon also occurs on a local level[8].

Literacy-?Literacy refers to the ability to read and write with comprehension and proficiency. It encompasses not only the technical skills of reading and writing, but also the broader cognitive and social skills that are developed through reading and writing.[9]

Family Planning-?Family?planning is the process of determining the number, timing, and spacing of children using various methods such as birth control, fertility management, and other family planning methods. It aims to enable individuals and couples to achieve their desired family size and improve their health, well-being, and quality of life.[10]

Domestic violence-?Domestic violence refers to a pattern of abusive behaviors committed by one partner against another in an intimate relationship such as marriage, cohabitation, or dating. It encompasses a wide range of behaviors such as physical, emotional, sexual, and psychological abuse and can have severe and long-lasting impacts on the health, well-being, and safety of the victim.[11]

Estate Worker-?These are the individuals on a sugar estate that perform a variety of tasks including planting, cultivation, harvesting, and processing sugarcane. These workers are typically low-skilled laborers who earn low wages and often face challenging working conditions.

GUYSUCO- is?an acronym for the Guyana Sugar Corporation Inc., which is a nationalized company responsible for the production and marketing of Guyanese sugar. Established in 1975, GUYSUCO has employed thousands of workers and has generated significant revenue while market prices were favorable.?

Market Failures-?These are situations in which the market mechanism does not allocate resources efficiently, producing fewer ideal outcomes for society. While these can arise from a multitude of reasons, in Guyana they have occurred as a result from; price volatility, monopolistic practices, subsidies and tariffs; among others.[12]

Context

Q:?Where is Guyana?

A: Guyana[13]?is located on the Northwest shoulder of South America. Established by the Dutch and then British, the country finds its industry deeply planted in the colonial crops of rice and sugar—the nutrients found its coastal pegasse soil[14], coupled with the equatorial sunshine, makes for perfect conditions for these crops to thrive. Colonial powers, seeing immense potential, imported foreign labor; many of whom (at least those given a choice) saw this new land as an opportunity to increase their economic situation.

Q:?How many sugar workers are the primary earners for their families?

A: According to a recent study conducted by the International Labour Organization, approximately two-thirds of all Guyanese sugar workers are the primary earners for their families[15]. As such, alterations in the industry, e.g., increases in wage, play a substantial role in affecting the well-being and financial stability of these workers and their families.

Q:?What is the average size of estate-worker families?

A: the average size of a sugar estate-worker family in Guyana is approximately 5.5 members.?This means that the average family is made up of a parent or two and three to four children. Because of the large family size, the financial burden of providing for these families can be significant[16].?

Q:?Are there alternative sources for employment in sugar estate communities?

A: Most of the sugar workers were employed in a single sector and lack the skills or resources to transition to other industries. The Guyana Sugar Corporation has established an initiative known as the Resilient Communities Alternative Livelihood Program, aimed at empowering former sugar workers by providing them with training in new and diverse skills; however, many of these workers are unable to read and lack a basic education that would ease the transition process.

Q:?What is the relationship between unemployment in these communities and the cases of domestic violence?

A: Unemployment in sugar estate communities is linked to an increase in the prevalence of domestic violence in Guyana[17]?When a family's financial security is threatened, it can lead to increased stress, which can create an environment of tension and frustration, which is associated with a higher risk of perpetrating domestic violence[18].

Q:?When did sugar estate workers become unemployed?

A: Sugar estate workers in Guyana became unemployed in November 2017, when the sugar estates - East Demerara, Rose Hall and Skeldon - were shut down[19]. This left thousands of sugar workers without a source of livelihood, leading to an increase in poverty and unemployment in the region[20].

Contributing Factors

#1 – Market Failures in the Sugar industry

The international sugar industry is plagued by a number of market failures, particularly with regards to the Guyana sugar industry. Market failures?refer to situations in which the market does not allocate resources efficiently or effectively, leading to outcomes that are suboptimal for society as a whole[21]. Some of the key market failures include price volatility, monopolistic practices, environmental degradation, lack of access to markets, and subsidies and tariffs.

Price volatility is a major issue in the sugar industry due to the highly volatile sugar prices and are subject to fluctuations in supply and demand, which creates uncertainty for producers and consumers alike. This volatility can make it difficult for producers to plan for the future, and can lead to reduced investment in the sector, which in turn can exacerbate price swings. This is further exacerbated by the dominance of a few large companies, Monopolistic Practices, in the sugar industry, which can engage in anti-competitive practices such as price fixing and market manipulation[22]. These practices result in higher prices for consumers, reduced profits for smaller producers, and decreased investment in the sector.?

Another major issue is environmental degradation. The production of sugar often has negative environmental impacts, such as deforestation, soil erosion, and water pollution. However, these costs are not reflected in the market price of sugar, which leads to overproduction and inefficient use of resources[23]. The lack of access to markets also affects this industry, particularly in developing nations such as Guyana. Small-scale sugar producers in these nations often face barriers to accessing international markets, such as high trade barriers, logistical hurdles, and lack of investment in infrastructure[24]. This can limit their ability to compete with larger, more established producers and can result in lower prices for their products. Finally, subsidies and tariffs sanctioned by governments in developing nations, including Guyana, can distort the market and undermine the competitiveness of sugar producers in other countries. This occurs when they provide subsidies and protectionist measures to their domestic sugar industries.?

Consequently, these market failures have contributed to the decline of the sugar industry in Guyana—leading to reduced investment, lower production, and decreased employment in the sector.?

#2 – Lack of Education

The sugar estate workers in Guyana are predominantly low-skilled, unskilled, and lack formal education. Education is an important tool for empowering individuals and communities and is a key factor in breaking the cycle of poverty. Many of these workers are unable to read and write, making government or private intervention increasingly difficult. The illiterate population in Guyana is estimated to be around 14.36%[25], approximately 120,000 people. These low levels of literacy impede the entry for estate workers to acquire the necessary skills and knowledge to find employment in other sectors.

Further, one of the ways that lack of education contributes to poverty among sugar estate workers in Guyana is by limiting their employment opportunities and earning potential. Sugar estate workers with low levels of education are often limited to manual labor jobs with low wages, which can make it difficult for them to provide for their families and improve their standard of living[26]. A lack of education can also limit the ability of sugar estate workers to access other sources of income, such as small businesses or alternative employment opportunities[27].

In addition to limiting the ability of workers to find alternative employment, a lack of education also contributes to low productivity and wage stagnation in the sugar industry[28]. Workers with limited education and training are often paid lower wages and are less likely to be promoted or receive additional training opportunities. This can lead to a vicious cycle[29], where low wages and limited job opportunities further discourage workers from pursuing education and training, perpetuating the cycle of poverty and unemployment.

Education can also provide individuals with the knowledge and skills needed to participate in and influence decision-making processes that affect their lives and communities. This includes advocating for better working conditions, access to healthcare and other basic services, and economic opportunities.?

?#3 –Low Demand for Unskilled Workers

One of the primary reasons for low demand for unskilled workers in Guyana's sugar industry is the decline of the sugar sector itself[30]. The sugar industry has been facing challenges in recent years, such as declining prices, increased competition, and changing consumer preferences. These challenges have led to reduced demand for sugar, which in turn has led to reductions in production and employment in the sector[31].

The low demand for unskilled workers is largely due to the increasing automation and mechanization of the sugar industry, which has reduced the need for manual labor in many areas of the production process. The introduction of new technology and production methods has resulted in many workers becoming redundant and losing their jobs. In addition to the impact of automation, the sugar industry in Guyana has also been facing increased competition from other countries, particularly in the Caribbean region, which has resulted in declining prices for sugar on the global market. This, in turn, has reduced the profitability of sugar production in Guyana, leading to a reduction in investment and a decrease in the number of jobs available in the sector.

Another factor contributing to unemployment among sugar estate workers is the limited opportunities for upward mobility within the industry. Many sugar estate workers are unskilled, with limited education and job skills, which makes it difficult for them to transition to other types of employment[32]. This lack of mobility contributes to poverty by trapping workers in low-wage jobs with limited prospects for advancement. Furthermore, sugar estate workers often face challenging working conditions, such as long hours, hazardous working environments, and inadequate health and safety protections. These conditions can have a negative impact on workers' health and well-being, leading to increased health problems and reduced quality of life.

To address the unemployment experienced by sugar estate workers in Guyana, it will be necessary to take a comprehensive approach that includes measures to support the growth and competitiveness of the sugar sector, as well as programs to improve education, job training, and economic opportunities for workers[33]. This could include initiatives to promote sustainable and efficient production practices, investment in infrastructure and technology, and measures to address discrimination and promote equality in the workplace.

Negative Consequences

#1 – Continuance of Generational poverty?

Generational poverty is a cycle of poverty that is passed down from one generation to the next. In Guyana, unemployed sugar plantation workers and their families are experiencing this unfortunate cycle[34]. Due to the recent closure of several sugar estates, thousands of workers have lost their jobs and are struggling to make ends meet[35]. Without a stable source of income, these workers and their families are at risk of falling into poverty. This issue is particularly concerning because it not only affects the current generation of workers but also has the potential to impact future generations. Children growing up in poverty are more likely to experience poor health, lower academic achievement, and limited opportunities. This perpetuates the cycle of poverty, making it difficult for families to escape[36].

A study by the Guyana Sugar Corporation (GuySuCo) notes that many sugar workers have limited education, with only 30 percent having completed secondary education. The study also notes that many sugar workers lack the necessary skills to transition into other sectors of the economy. This highlights the need for interventions that focus on improving access to education and training for sugar workers and their families. The impact of generational poverty extends beyond economic hardship and can also have negative social and health consequences[37]. Children from families affected by generational poverty are more likely to experience poor health outcomes, such as malnutrition and higher rates of chronic disease, as well as higher rates of mental health problems. These negative health outcomes can perpetuate the cycle of poverty by limiting opportunities for education and employment[38].

The government of Guyana must take action to address this issue. This could involve providing financial assistance to affected families, creating job opportunities in other industries, or investing in education and training programs. It is crucial that something is done to break the cycle of generational poverty and ensure a better future for unemployed Guyanese sugar plantation workers and their families. One potential solution is for the government to invest in the sugar industry and work to reopen closed sugar estates. This would provide job opportunities for those who lost their jobs due to the closures and potentially prevent the cycle of poverty from continuing. Additionally, the government could partner with organizations to provide education and training programs that would equip workers with the skills needed to find employment in other industries[39].?

However, the government should also prioritize providing immediate relief to families impacted by the closures. Financial assistance could be provided in the form of unemployment benefits, food assistance programs, and subsidies for housing and utilities. These measures would help to alleviate the immediate financial burden on affected families and prevent them from falling deeper into poverty[40]. The government should involve the affected workers and their families in the decision-making process. This can be done by creating a forum where they can share their concerns and suggestions[41]. By listening to their voices and working together, the government can ensure that their efforts are effective and sustainable. It is crucial that the government takes a proactive approach to addressing this issue and prioritizes the well-being of its citizens.

#2 – Domestic Violence and Alcoholism

Unemployment[42]?is a significant risk factor for domestic violence. When people are unemployed, they may experience feelings of powerlessness, hopelessness, and stress, which can lead to aggression and violence towards family members. For unemployed sugar plantation workers in Guyana, the loss of financial stability and social status due to job loss can lead to increased stress and frustration in their personal lives, often resulting in domestic violence.?Domestic violence and alcoholism have become increasingly prevalent issues for unemployed workers in the Guyanese sugar plantation industry. According to recent news reports, many workers who have been laid off due to the closure of sugar estates have turned to alcohol as a means of coping with their financial and emotional stress. As a result, incidents of domestic violence have surged in the surrounding communities[43].

One article from the?Stabroek News?[44]reported on a case in which a sugar worker, who had been laid off from his job, came home drunk and physically assaulted his wife. The victim reported that her husband had been drinking heavily since being laid off and had become increasingly violent towards her and their children. Another article from the?Guyana Chronicle[45]?recounted the story of a family whose father had lost his job at a sugar estate and had turned to alcohol to cope with his depression. The man's drinking worsened over time, and he eventually began physically abusing his wife and children. The family struggled to find help, as they were living in a remote area with limited access to support services. These stories are not unique, as similar incidents have been reported throughout Guyana in recent years. The closure of sugar estates has had a devastating impact on many workers and their families, leading to increased poverty, unemployment, and social problems[46]. Without adequate support and resources, the negative consequences of unemployment, such as alcoholism and domestic violence, will continue to affect vulnerable communities.

It is imperative that the government and other stakeholders take action to address these issues, by providing support services for those affected by unemployment, increasing access to mental health resources, and promoting awareness about the dangers of alcohol abuse. Only through collective efforts can we hope to mitigate the negative consequences of unemployment and promote the well-being of all Guyanese citizens[47]. The effects of unemployment on individuals and their families can be far-reaching and devastating[48]. While these issues may seem isolated, they are part of a larger problem of poverty and lack of resources.

Governments and communities need to come together to address the root causes of these issues. This can include providing job training and employment opportunities, as well as mental health resources and support services for those affected by unemployment[49]. Unemployed sugar plantation workers in Guyana often face a lack of support from both their families and the government. Families may not understand the stress and difficulties faced by unemployed individuals, leading to further isolation and feelings of hopelessness. The government's response to unemployment has been inadequate, with a lack of social safety nets and job creation programs.

Education about the dangers of alcohol abuse and domestic violence can also help to promote healthier communities and prevent future incidents from occurring. As individuals, we can also take action to support those affected by unemployment and social problems in our communities[50]. This can include volunteering at local organizations that provide support services, donating to charities that work to address poverty and unemployment, and advocating for policies that promote economic and social justice[51]. Ultimately, it is up to all of us to work towards creating a more just and equitable society, where all individuals have access to the resources they need to thrive. By taking action to support those affected by unemployment and social problems, we can help to build a brighter future for everyone.

#3– Migration

Unemployment may lead to migration of sugar estate workers and their families to urban areas in search of employment. This can result in the fragmentation of communities and loss of cultural traditions and practices, and ways of life may be abandoned or lost when individuals leave their homes and communities[52]. In Guyana, many individuals—through the support of family or loans from friends or banks—will migrate to foreign countries seeking work typically in construction, food service, elderly care, commuting services, etc[53]. In this section, we will discuss the impact of migration on the cultural wealth found in Guyanese sugar estate communities.?

There are several social and cultural consequences that have diluted Guyanese society; the following five are the most impactful. Firstly, there is a huge loss of cultural practices as individuals move away from their communities, they may abandon these practices or be unable to pass them on to their children, resulting in a loss of cultural heritage[54]. as individuals move away from their communities, they may find it challenging to maintain their cultural practices and traditions. In some cases, cultural practices may be too difficult or impractical to maintain in a new environment, or individuals may lack the necessary resources or support to continue them (e.g., ingredients may be hard to come by, places of worship can become scarce).?

Second, Migration can lead to the fragmentation of communities as families are separated and individuals move to different areas in search of employment. This can result in a loss of social cohesion and a sense of community identity[55]. As families are separated due to migration, the social networks that underpin community identity can break down, leading to a sense of isolation and disconnection. This can result in a loss of community identity as individuals are forced to forge new connections and networks in different areas. In addition, as individuals move to different areas in search of employment, the physical distance between community members can also lead to a loss of social cohesion. This can make it challenging for individuals to maintain the same level of social support and interaction that they had in their home communities.

Thirdly, many sugar estate workers and their families have a deep understanding of local ecosystems and natural resources. As they move away from their communities, this knowledge may be lost, leading to a loss of valuable information about local environments and resources[56]. This loss is particularly problematic because this knowledge is often not documented in writing or other forms and is instead transmitted orally from one generation to the next. As a result, the loss of indigenous knowledge can lead to a loss of valuable information about local environments and resources[57], which can have serious consequences for sustainable development and environmental conservation.

Fourth, Migration can result in a reduction in the diversity of cultures and traditions found in affected communities. As individuals move away, the cultural and linguistic diversity of these communities can diminish. This largely results in the assimilation of different cultural or linguistic practices into dominant cultural norms. As individuals move to new environments, they may adopt new ways of life and abandon traditional practices or languages. This can result in the loss of cultural and linguistic diversity in affected communities[58].

Finally, challenges to cultural preservation become increasingly more difficult as communities become smaller and more dispersed, it can be more challenging to maintain cultural practices and traditions. Especially since there are fewer people to learn from, fewer resources to support them, and fewer opportunities to pass them down to the next generation[59].

Although these symptoms of unemployment in sugar estate communities have deteriorated much of its societal substance, it is important to note that the loss of cultural wealth in Guyanese sugar estate communities is not inevitable[60]. Efforts can be made to preserve and celebrate the cultural heritage of these communities, even as individuals migrate in search of employment. For example, initiatives can be implemented to document and preserve cultural practices and traditions, and programs can be developed to support cultural exchange between individuals in different communities[61]. This requires a sustained effort and commitment from the government and other stakeholders to invest in cultural preservation and celebrate the diversity and richness of Guyanese culture[62].

Best Practices- Practice

Using the Sugar Industry Infrastructure for Ethanol Production

Given the limited but highly specialized skills of the Guyanese sugar estate workers, repurposing the sugar industry for ethanol production in Guyana is seen as one of the few solutions for creating employment for these workers[63]. The transition to ethanol[64]?costs less than modernizing the current infrastructure to meet the global market standards[65]. Ethanol has become a trillion-dollar industry and is used primarily in the oil and gas industry as a dilutant for gasoline making a fuel that is environmentally friendlier and economically sustainable[66]. Guyana, a recent producer of crude oil, could benefit from the production of ethanol from its sugar industry as a symbiotic relationship between sugar and oil could be easily established. A successful transition was observed in Colombia, their ethanol industry experienced a boom from 277,000 gallons of ethanol in 2007 to almost 1 million gallons in 2010[67]. A similar transition was observed in India where over 1.5 billion gallons of ethanol are produced yearly[68].

Impact

It is difficult to estimate the impact this transition will have on Guyanese communities, as it has not been implemented in this area. This issue, while pervading sugar estate communities for quite some time now, has not had enough attention from both the public and private sector. Hence, there is very little data to make any appropriate conclusions as to the measurable outputs such as increase in household income, increase in the graduation rates of children from these households, decrease in the cases of domestic violence, among other potential areas of dire consequence. A comprehensive impact assessment framework that covers various social, economic, and environmental indicators can be developed to measure the impact of the transition to ethanol production on sugar estate workers and the local community. Such an assessment would provide valuable insights into the effectiveness of the transition strategy and identify areas for improvement[69]. However, this hole in impact research allows for a greater impetus for the governing parties and invested groups (Ministry of Agriculture and GUYSUCO) to establish boards and teams to engage in productive discussion[70]. Careful study of the transitions in India, where similar social and cultural dynamics are observed, and Brazil, where similar economic and environmental circumstances are observed, would yield good approximations for impact in Guyana[71].

Gaps

Overcoming the dilemma of unemployed Guyanese sugar estate workers will require long-term investment and commitment from the government and other stakeholders[72]. Implementing these strategies will require collaboration between different sectors of society and a sustained effort over time to achieve meaningful change. The transition will be expensive and there will be significant learning curve for the more skilled estate workers. In addition to current sugar producing practices, introducing ethanol production will require a set of new skills and their associated infrastructure, i.e., refineries, pipelines, chemical plants, waste disposal, etc.[73]?However, for the most part the unemployed estate workers will be provided with essentially the same opportunities they had in functioning estates. That being said, in an effort to learn from the previous genesis of generational poverty from the failure of the sugar industry, it is proposed that complimentary to employment in transitioning estates, workers will have opportunities for increasing their literacy and skill value. A major hurdle will be the high competition in the global market for ethanol, especially ethanol produced from corn in the United States[74], because of tariffs imposed by the U.S government on foreign ethanol, much of its production in Brazil and other South American States has been primarily for local use.?

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Key Takeaways

·??????The unemployment of sugar estate workers in Guyana greatly perpetuates the cycle of poverty in sugar estate communities.

·??????As residents of sugar estate communities leave seeking for other sources of employment, there is vast loss of cultural wealth as well as a communal drain of skills that could be useful for the development of these typically rural areas in Guyana.

·??????The current best practice to transform the current sugar industry into the more sustainable market of ethanol production will impact the sugar producing communities on multiple socio-economic levels but there is a wealth of information that still need to be obtained before a decision can be made to identify this as a viable option for the unemployed GUYSUCO workers.

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