Report No. 2629-SEY Seychelles: An Introductory Economic Memorandum November 1, 1979 East Africa Region Country Programs II FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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Report No. 2629-SEY
Seychelles: An IntroductoryEconomic Memorandum
November 1, 1979
East Africa RegionCountry Programs II
FOR OFFICIAL USE ONLY
Document of the World Bank
This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS AND UNITS
Currency Unit: The Seychelles Rupee (SR)
Exchange Rates: 1978 US$1.00 = SR 6.952(Annual average) 1977 US$1.00 = SR 7.643
1976 US$1.00 = SR 7.419
Fiscal Year: January 1 - December 31
Standards: Metric
TABLE OF CONTENTS
Page No.
MAP
COUNTRY DATA
SUMMARY AND CONCLUSIONS .......................................... i-ii
I. BACKGROUND .. 1...............................................
II. THE RESOURCES ........ ....................... 3
A. Human Resources ...... ....................................* 3
B. Physical Resources ..................................... 7C. Financial Resources .................................... 9
III. THE DEVELOPMENT STRATEGY ................................... 12
A. Development Planning ............... .. .................. 12B. Objectives and Policies .............. .. ................ 14C. Prospects ........ ............... ....................... 16
This report is based on a number of published documents, and on the findingsof a mission comprising Mr. Robert Maubouche and Mrs. Naimeh Hadjitarkhanithat visited the Seychelles in June 1979.
This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
SEYCHELLES
INDIAN OCEAN MAHE ISLANDMain roads (metalled)
N-rh P0,;: Main roads (unmetalled)
F2 -- C' Minor rouds
.ACHABEE -- -- Tracks00 ----------- ~~~~~~Rivers
Coral
.,3. Sand or mod
eoo- Elevation contours (meters)
t \ > > >> ~~~~~~~~~~Tea plantations
National park boundaries
- - Administrative boundaries
W,~ ~ t 9 \A W-dt> =J' . '
N-rth Wreul Boy j i StnAne /re,,d0.11090 ~~~STE ANNE #~ 5
BEA 59 d7eor MRNEool@C
) V < y @' 2 - 'AR Kj Tt2c'R
55~~~~~~~~~~~~~~0
PORT LAUNA''. C MARINE NATIONAL PAR~K
Crerecoenoa T
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~TRA / OT A,srs
S-oth 6-asI
roe, ssp h., been ,pre-d by sIr
thrt rapemt Ce cebo, i s .e assCOed The denrsiosr -sd and h.eboandnese slows o oes red dIhdso irempe, prnleporl 05 Os. INDIAN OCEANWorld B.0* ce ffiote-, cIplodpnsens 00500 le tttlbeCao 05 / 20 J / ,
soy -ors o any efldorSnre-_lror accepsee 05 ebf ch boonderice
ESTIMATED POPULATION BELOW ABSOLUTEPOVERTY INCOME LEVEL (PERCENT)
URBAN .. .. .. 34.5 20. 5RURAL .. .. .. 48.7 35.3
Not availableNot applicable.
NOTES
/a The adjusted group averages for each indicator are populdtion-weighted geometric means, excludlig theextreme values of the indicator and the most populated country in each group. Coverage of countriesamong the indicators depends on availability of data and is not uniform.
/h Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961, "or 1970, between 1969and 1971; and for lost Recent Estimate, between 1974 and 1977.
'c Africa Souith of Sahara; Id lntermediate '1iddle Income (S551-1135 per capita, 1976): Ie UDe-Middle Income (51136-2500 per capica, 1976); /f 1976-78 base period; ig 196I; /h .978;/i 1967.
May, 1979
DIRPIIITIONS OP SOCIAL INDSICATORS Pane 3
Note.: Although the date ar draw frt sourc. generlly judged the noet euthoritatlv end reliable, it should also ha outd thet they nay to heinerti-nalycemparble ocaca of the 1..k of eted-rdised defInItion and concpts used by differet ocun. tri. In collecting the data. The data ar, o-nrheo1..use fol to de..erthb order of agnitedo, indIcate ire-ds, and caateie -etin naj- diff-r..te. hnre...Inoo.otrie..
The ed.tsed ao..un e--rge for oath indtcator ar popoletioe-weigbted geoatl ". - , eucloding the eotr- vetoes of tIcs lodfte-ord0 h. moot populatdcoutry in eah grop. Sue to tech of data, group evar-ge of all indIctors- for CaPital Surplus Oil EuPorger cod of todiretors of Acca.s to o ter and -uretodlspo.el, Hi..uiing locte dietibutton end Povety for other -octry grope se popsletin-weightnd ge.-enri aeee cithout et..to of the. e..ren -e ore. endthe noet populated oc-trv. Sin.e the -.vroun nf cuetn one the indiostore depende on vileblltrn of data end Es not -itf.-s. caution -ua ha ecroteedIn relation -verece of -n icdioetor to ennther Tha- aveage are eary ...eful ea aprot,itat-n of neree.ted" values when ocor-ina the values ofoniodio-t- at a time anoo the cutrvt eud refernc- ros
LAND ARIA ch-o...od sq. iou) Muses no enorta dianeni learc..ot of eOeoletiocI - total. urhac andTotal - Voca tuf- ac -ae c-PeIcing land -re and inland eaten rural -NItb- of people (total, -rhn, end rura) served by ...el t.die-Agriculi-ul - NMoat recntsetiat of egriolturl area uaed teporarly pee .. ee. par-o-gee of theIt ..e peotiv- popuietione. ocE-re disposal
orpernere.ly for crps, p -trs aket etd kitohen gerdon or to nay ioclude the colcinad diepte..oleb orh -oth-o-s tre .i,ttflie felIce. basso~~~h -toer endoe rewae hyot-r-hu system or the -5 of pit
peuie-e-de talle InstilIti"m..CNP FER CAPITA (ITS) - CNP Pet caPita Ietae t corect -ek-t prt-t, r ltia_ ea aheelole - Population divided hy ovebh of precicteg phvei-
ca lculted by eans c-oerioc nehd en-old Rank Atlee (1975-77 heels); claa qualified fran e aedtco1 nohuol at cn--ritry leve.1960. 1970, end 1977 date. Peculatio car nureing persa - PopulatIon divided by ucea f rvitg
ENERG COOOPTION PER CAPITA - Actua oonauPtlo of -onenr1la eeRgY (-nI ponpltio ne oetlbd"-ctl ra,edrt)-pplto ttlcod Itsgite erlu,err e ydr- ula edgohe urban,-adrua) dIvIded by theit, respectIve ember of b,epitet badeetritlik tore f vleovle a elt;16,lI avaIlableInRbl ed prvt W geo-e1 end ep-tteloe hop,ite andre
cod 17h daa. ha Ilietionvectos. Aspi..e areestpi letrn1e60rcaen97vetad(ed b
POPGLAT0R RAtD VIAL STATISTICS at J. d1"dt.hinuertiv ph-tle. EarPitsl. vt r-oIdlv rh-- rpaIl cAac df lyTota corieroc. id-var vilioco)-AR of July I; 1960. lAIR,ad veaaecrIoue.Rrlbeitl.huor nld elhadoit
1971 dote. cal ~~~~~~~~~~~~t!, ter our P.rnateory uvaffed by a phytIco (hoc. h. e ..d...t at-foht rrul clt Icereocof cove)) - Aa ic of Arbe- c total .popultion nat ue lole.ec)oil fe h in-p t_tn onndottoc sod
dllffr-- doftvlli-oo cohc rssny effect 0 ouperbility of date poiealmtdanofvdvltcilltlnonovgtv.tttlut- 1960, lAIR and1915dre Achienicee p- hosoitel bed - Total cubet of adiecio- too Ole-hart-..otuletlot .. roctiooe fran boeploal divded by the cache of bed-.
as-aolg Ilfr -tro--oy at birth nraigoIcutyspe teir bAeeodonneo ru ildhlu b hr IigqatrIovvvo level, nd (uncle Itte topeleyt tabit oltgor 175 Pean avd thei tclo Lee. . ...oedero uIdder nay -0 may co he Ivolodd Ic Ith
71.0 yarcoeteon for focctl Ity race a iou bate I Inoele esa coming dccl toe hounebold for oval In vIva I porpunee~~~~~~~~~~~~~~~~~~~~~~" y. h.iv -1,. .vv ... acodl t von leve end past family pleo.t. ptr - - ivrouobec oftonreo net roo -cv .uban. e-d tore - vrevhrc-a-c..Etch t...cry I. the ac-ig-rd on of the.e A v-bt-etu- of person per r- ina'l, rhat, o_d toreI onupe conv..c..na duelIgo
ofnrc l a-d (c-ttllc otuode tot projectio -poroe. eP.c.iva.. Ihol ing c -ludO vonP.--pv t ecu-core sod u-onpytd ptars
Sculoa o crv-o u- It Str loner dpopoalo , hr oioruh cnet C l-- t-Icid-II ocu fdelce ottubn ua -g.o
cc:ccrrcincvt .ThiA in -chi-vdonyfrretliY vae-o,ubet, avd rura duel)1gn -op-oti-rly~
to f oooPluvc_ It_if e..l. c The Stetiot-y P.opultIo EDUCATIONAtieos oioa-d on hn belie of vhe pro) totd chr..cttr-isclo of hbe Adios vd ..roI"e' re -ice
1poevlalc in theyea 10.00 t-dohe tore of deIlo- of te-ilftyrcs pIn- nhoot --vrl atad femle -Gru boo1, outs cud toseoft
car 700 conry Porlcolo IsRahrd - Tbh .eer obey Statiov-y Popole- tof-g '!populaion-. -Inely inolodve chbldt-u agod h-Il1 r h:,tio vIce ha- bIt ra bshd. odjot ved for ditfferol I-gob of pricaty od-vatioc: itot ... l tInn cI sh
P-Iclai-v d-ioto onioersa od-oso- Ac...tIIonr.YuIoeRd lOt p-rcer ci-c nn popilcArPer so. km,. -Mid -on- poyvlctt- Per tquc- kitoneter (too bh-retcro o...aboe be offti le oob-1 age.of cooti IArs seoda shool - octt.od ad tect1l - Conp-td 00 ehv .svodroovo
Pot vo. o.o 1ivosailod - Cup-vd as cho-e for agriculturl land do eurno rc oryuso pp-o-d IcioryIsc- tc" yoi
..co vt Ave I-u tutu (p-coet ) - ChilIdru (0-14 yee..ol , -,tkiot-oge Ic 7yaeo r urcpndnuctn r eoafyeou115-hG yer) dv telicrd lbs Year sod ove) ot P--orgacc of vId- Occoo noleoIece ftcnay oattn n lu otco
ct-ecpvpvloti-v f-c 1950-hO, 196070,ar 190-77. PopIl--hre rtc- -ii rina -Yo d teol d.crdeoy-TooI1 -cdrt-aecllec ItPorlenon reth unnfotoevl uran-on Igroth ent o vrec primary end t-cod-y l_tti dlvtdd by tuoe-, of crochet ivceor
clot' reo 0--dhvucl- ovllIAr. birohe Pr ch-o-ad of Adult li ...recy rein (p-c-,tl - Lil-er-edu1co cable to red e-d -roela'sdtrrypclAci- 1960. 1Yc sod 1977 doa.P. a perv...toge of tota odulo pupole-tt aged lb ..... Iodovr
Crust tectodvuctit rtae A-Average cober of deogh,.rertIo-naoul brat Hseoorar e th--od .p.u1atl-t - P-euco- core -coprrocrtiv ercure rnrooc te u rodif heropr mos reectag- sa tc boo tHernItgho pure-u; etc Icde- et1,: cve., he-se sod oIl. I.o.r
npuolivi frtli-tIeoc: tely to-yee -crRnuding tv 1960, cubIcle..1970. a-d 1975. Radio rec vot ou couad Poolaion1) - 011lolyp- of reon-ott for radio
ancnsrn-uc-nncr ... Incuel I ob-tedo )- cn....l somber of brsoarvgeee yblic Per thouced o ouoir oldnc ies acceycot-Io bIthcnrld-ot-r _odar eupion of nations fantly reciver Iccocor-inc and to y-er Ah-c red1 orattotof rdiIec ecpIle.oiso proRr_ oftoo- dare tot rev-t fret may to ho c-stpoblk sinc tout 0-0crtoe
Family pl-aoio-ueuu pIn oec of caried P-nn) - .prrtgr of abolished li--oiog.tarried cove vf child-he erlcg age.(1.5-44 yearn) obo uee birob-conor-l 1.ro rocutonr (ner,t o-o.ed poculatli-) - 00Tro har for .rod-vect oge-erd-ic-e 10 all rArrio oe i necce age group, ulcprIotodp it o -udueun i.:et--d Tf rote-cotta
1100 AND NOV00RIT ICN Ne. cae circlta fot .. usd cpo.clTVoo - Shoete oro circo I-Inde- of fboO or-duot oa act 1969-7) - Ill) - ldenof perv -pIts riofdet genra inct-outoese Psa.t d,rflcd us a. prdIca pobll-
I rdtoto Il food "ItmdtIII. Ptoduoitsc ldet oe n colodvtdyhailo to re_rditg mece_1 ls. I sco drdtfeeds-dvodo-a-u-d.tyesr boeie. Gomdltlesvo-t prinsrygoode hed.ily If itspper .... eofI. rl...toe7 cleg. o.SRa__ loatod of ngr sIv are edbeadvneourecs Cnv oolccoec ou ye 0t1 ceo r-aedortecahtf'e.R. -Iff- ad -oear cclded). Aggr_gr pooot ofechcutr Iod duoc~Rth o ver. I-lod tog adoit lout vdrte-orlvouc.loIe
onhee n eioa -outs- Prdr price ocigh-s usi-sterv -olt Re-uel f ote f cercee r'f resAi--mte) - Conputed fras
-vrgy eqoloelor of out food npleeviblincutyptaIa LAOPRCEpot do0 .Aceilabl copplis oonpris dcesesiol iprodu.rlor P hooce et Tta a o9r force lobouoandc - Ev-noioslly arIve p--ov, icroding stod
_xp..... sod oh-g- Ic crock. Set I cppliesec t1ude ecteI feed, coeds, foce -d u...lcIyd hoc es_lodiog ho-eesto-, nod-nc t. nilqt... Itte- u-d to food trocecelng. sod I.se.s In dtitlbti t-oR. A- cosnvaoccorreae00tnarebie
qoireococ ure e tiesved b to bated on phy tlog.i-a tends for ..o. Femle rror F-Iel labor fore-t peoetgec IOtl th fre.aI AtMoc cod bealob ccid.sriooutrcol troperaur, body Acricoltor p. R.t.. vi - Labor force lo feoniog, fo-resr. bolngad fIshing-eghos, ago ald se d"ticlulte: of popoI.isto, and allolt~g 10 po- .. percetage of t..rsI labor foc.-
ont for soe at hcueebol d I, eIl. Induc iro lop--e I- Lehor forte to ifoog . -ar--rooIo, sn fc orgcdPI P ,Percrha Xl of crosn -ntn cot day) - Pro-icnoecofP pernoritilty -t-s sod gon e p-..entage of ic,.I labor forv.
catl vt suppl of 0usd pot day. Sec sIpply of food Is dr ficed c ovtleinrt orel oa,ml,sdfml atop nOabve gqvir--nc for all --utrirs oc...bliebed by USDA procld fO ciiyrtsaeunptda oa,nt,ed f-Isl lob- force an
a .i-Iosu -lonoc of if g-am of tod1 protein pnr day and 7grone pe"Ice flca,nl n eae ouaco l a gee reepec lvly;of aIma I aIed pulee pr-tol, of ublob tA g-an ehoold be nia protein. 106 0, 1970 aud 1975 data. Tb.a. ar 11.0n parric iporo ar.t ferTb- es -ad-rd. ar love oh.. thos of 75 grov ofOll rl a-d ag-e cutr ftepplrs,cdlo lmtreod. vr fso mate
71 grams of Avical prorelo cc cc overge for the ovoid prorosed byaeEo etou I rcs
Pb, C.iv rh Third Acrid foo Survey. IdconovP-~..py ffod E I. deeendeeroi - Roots of popucoIani o-der 15 -od 65 cod ovr der cotccd ti 'Ioo rm IIoa ovd nIs p- d rretsupl.f oo tho labor f-o cv ato grou-p of 15-64 osr..dohied (o avial ten plnp-i gracedpn da...1d hp. h- NC DSRBTChId face g-i t.rtapi1to rare, et th otd- di~ -i guns Igcrb e co- ICSG lytIT
o - vae tu -i yar tot d oblidro- [It. this- aegop;frus rclaeof tri-et tn--u (cooh tv O.hAnbsd ktcdl r-ci-d ho rich-t,deveoplovoot~its dae dolodcoo lIf tabos.p.r... t, Wi-et 70 yr-vt- . p--rs 20 por,-t sod rporoo 40 Petrt
aALALTH of bosOeboldtLIfe 00. ... Isoy ec bloobllll IVar A- Rc. coveR fyear of life ronaot-
logso htrh 1960. 90 o 1 9 77ar.POVERTY TAOGET GROUPSYIsfo- uio .. toytruts fret1 oha-unod - A..' I. d-athe of i feels uodot p5vmao belr ..nc jcn In-e1 11 c anl obosd rurai
ste yar o ago er ooseso IRon_irn Absltpoer Inov _ _vo Ic that Icuv leve bImuIch0til
othe of pol I.Totl sn.. o or rurl)h Ihreeuhrsos o fodb
-cs,ototd -oo loch at tbo ofro pro...o-d h..rebolec, pyI s. oroI rob I - p-rttitonleyIi n oc-hldo oaoptrs teiAOd tavltarcoc lIt: cc pccnyoogcc of tbrthrcty-o .e ! Populloo.pooallvnoo_O vvcon th iollodrvd--s :: t
It t otacorr .5poo Itouca i stccoyon los td t, tre hey.vlot.slc o o higher c,f: lov is -:h.t - 0c200 voer Io I,hv:o vat he oovndoced as Ibettg sithtcr-a...ohlr -d...,~:':.--___
of toc ont I: lot) seen ostva bt sreen ,ood loplcho ...ucc t or.tc::cc I he ,v,,chud dotoI c ocrd
crofoday i,, fothing she fsnilv'v --roed L-ct) nd',cic,o.
SUMMARY AND CONCLUSIONS
The Seychelles is a middle income country, with about 62,000 inhabi-tants; its sea and land territory based on about one hundred islands stretchesover an area almost as large as the island of Madagascar. Mahe and the twonearby islands, Praslin and La Digue, a total of about 200 square kilometers,account for about 98 percent of the total population and 45 percent of theland area. In spite of Seychelles' proximity to the equator, the climate ismoderated by the oceanic environment. The present Government came to power onJune 5, 1977 on the basis of a socialist platform. The Republic of Seychellesapplied for membership in the International Bank for Reconstruction andDevelopment in May 1979.
Until the early 1970's, Seychelles' development prospects werelimited; economic exchanges were minimal and a few agricultural commoditieswere exported to finance imports of rice. Today, when compared with countriesat similar income levels, Seychelles fares relatively well: the populationgrowth rate is about 2.1 percent per year; the domestic product grew byabout 20 percent in the last three years and has provided employment oppor-tunities to most of its native population; universal education has beenvirtually attained; the health and nutritional status of the population isparticularly good; and there are no slums, half of the houses being in goodcondition, furnished with tap water, and on Mahe are connected to the elec-tricity network.
Seychelles in recent years has become a service economy. Tourismhas become the major industry since the opening of the international airportin 1971. Agriculture accounts for less than 10 percent of the domesticproduct and is relatively stagnant. Manufacturing is limited to about 50small-scale establishments employing about 5 percent of the labor force.
Until recently, the country has been heavily dependent on externalassistance, mainly from the United Kingdom, not only for financing developmentbut also for part of government recurrent expenditures. Over the last fewyears, domestic expenditure has increased, and the expansion in money supplyhas added inflationary pressures to the effect of international prices.Merchandise imports (US$51.4 million in 1978) considerably exceed domesticexports (US$3.5 million in 1978) and reflect the growth of tourism receiptsand the rise in development expenditure. The major exports are copra andcinnamon bark, with, since 1976, frozern fish making a substantial contributionto external earnings.
Seychelles is very dependent upon tourism and foreign capital;and the country's own resources would not be sufficient to maintain economicactivity and development. Net private capital inflows averaged about US$9million a year since 1975. In 1977, net official capital inflows were aboutUS$6.4 million, mainly from the United Kingdom, France, Australia, OPEC andEEC. Since then, a shift has taken place in the financing of capital projectsfrom grants to concessionary loans. At the end of 1978, the external publicdebt was about US$4 million.
The present Government launched its first five-year rolling develop-ment plan in 1978. This was followed in July 1979 by a more ambitious five-year program (1979-83). An investment program of SR 1090 million (equivalentto about US$160 million) in 1979 prices is envisaged for the plan period(1979-83), with emphasis on education, agriculture, housing and social ser-vices. The main objectives of the Government are: improvement in socialconditions, increased economic self-reliance and satisfaction of basic needs.
At this early stage, it would be premature for the World Bank toventure any assessment of the development outlook for the Seychelles. Never-theless, a few preliminary impressions can be presented: (i) the managementcapability of Seychelles' administration is impressive; (ii) the developmentstrategy of Seychelles is well-designed on the whole, and clear prioritieshave been set with a view to support long-term development; and (iii) theGovernment is, however, likely to be confronted with financial constraintsin the near future. An investment program in line with the Government'sdevelopment strategy will require an increase in domestic efforts, as wellas substantial levels of external capital aid, including some assistance onconventional terms.
1. BACKGROUND
1. This report is the first prepared by the World Bank staff on the
Seychelles' economy. The country became independent on June 29, 1976 after
a colonial history of more than two centuries. Although the Republic of
Seychelles joined the International Monetary Fund in June 1977, it did not
apply for membership of the International Bank for Reconstruction and Develop-
ment until May 1979. Thus, for about two years, the Government deemed it
premature to request World Bank assistance for its economic development.
Indeed, one can easily understand this decision. It is a middle income country,
and with about 62,000 inhabitants, Seychelles would be, in terms of population,
the smallest member of the World Bank. The size of its economy is relatively
limited and the financial flows, whether of the government budget, the balance
of payments or capital aid, are of a magnitude that would not indicate much
scope for World Bank Group borrowing. However, the present Government believes
that World Bank expertise in economic development can help design overall and
sectoral strategies and that Bank lending may be used from time to time, to
finance projects that would be particularly large by Seychelles' standards.
2. As an introduction to Seychelles' economy this report draws heavily
on a number of government documents of high quality. It also benefits from
the exposes and analyses made by a few IMF missions and other reports prepared
by bilateral and multilateral agencies. Seychelles is well-known as an Indian
Ocean tourist paradise; the description that follows intends to show, against
a broader background, that the country faces numerous problems common to
developing countries, that beyond a beautiful scenery and pleasant climate,
the needs of the population for an improved standard of living are quite
pressing; that the Government is designing a strategy to meet these needs;
and that external assistance will be needed to help the country diversify its
economy and realize its development potential.
3. The sea and land territory of Seychelles based on about 100 islands
stretches over a very large area; the island furthest away, Aldabra, is
about 1,000 km from the main island, Mahe, and as far from it as Mahe is from
Madagascar. In fact, the main group of 32 granitic islands is fairly compact,
with no island more than 50 km from Mahe. These islands are of rugged, rocky
format, typically having a narrow coastal strip and a central range of hills,
rising as high as 905 meters on Mahe. There are several other groups of
islands, of a coralline type, which sprawl over a much wider area of the
ocean, and often rise only a few feet above sea level. Despite this dis-
persion, the'population is highly concentrated. Mahe is inhabited by 88
percent of the country's population and accounts for one third of the total
land area of 440 square km. Two nearby islands, Praslin and La Digue have 10
percent of the total population. Most of the remaining one hundred islands
that comprise the Republic are, thus, very sparsely populated since, taken
together, their population is no more than one thousand people. In spite of
Seychelles' proximity to the equator, the climate is moderated by the oceanic
environment. The shade temperature varies relatively little during the year
with an average maximum temperature in Mahe of about 300C. Rainfall varies
considerably from island to island; it averages 2,300 mm per annum on Mahe butis much lower on the western coralline islands and is only 500 mm per annum onAldabra.
4. Seychelles was uninhabited until settlement by the French in 1770.Economic activity consisted of catching tortoises, felling trees, and prac-ticing some agriculture. The islands were ceded to Britain in 1814, andwere administered from Mauritius, until they became a separate Crown Colonyin 1904. The original population of settlers and servants was substantiallyaugmented, during the 19th Century, by the arrival of freed slaves. Therewas also a slow increase in the number of settlers, principally of Frenchorigin from Mauritius, but also Indians and Chinese. This has given Seychellesa well-integrated multi-racial society. The present Government, the secondsince 1976, came to power on June 5, 1977, in a strong socialist reaction topost-Independence policies. Although Seychelles remained under British rulefor 162 years, its culture has a strong French influence; the predominantlanguage is Creole which, besides French, borrows from English, Arabic andAfrican languages. The official languages now are English, French and Creole.
5. The Seychelles' economy has traditionally depended mainly on copraand cinnamon for exports, while the local production of fruit and vegetableswas supplemented by fish and imported rice for domestic consumption. Sincethe opening of the international airport in 1971, tourism has developed asa major industry. At the same time, infrastructure has been considerablyimproved, primarily on the main island of Mahe, but also, to a lesser extent,on the neighboring islands of Praslin and La Digue. The outlook for long-term development of the Seychelles has consequently changed. The completionof the airport was followed by intense activity in the construction oftourism facilities, including hotels, and the improvement of the harbour inthe capital city of Victoria, on Mahe island. In contrast with this relativeboom in investment and production in 1972, economic activity stagnated in thefollowing two years: public investment stood at a lower level and privateinvestment declined sharply with the completion of some major hotels. It isonly since 1974 that the sustained growth of tourism -- visitor's entries peryear tripling to 65,000 between 1974 and 1978 -- has played a dominant rolein the economy. It is tentatively estimated that per capita GNP 1/ was aboutUS$1,000 in 1978, after an annual average growth rate of about 4 percentsince 1970.
6. The main components of Seychelles' domestic product are: (i) tourismthat brings into the country more than seven times the foreign exchange earn-ings of domestic exports of merchandise or the equivalent of 35 percent ofnational income; (ii) construction, which has fluctuated from a high 20 per-cent of GDP in 1972 to a low 9 percent in 1975, on the eve of Independence;(iii) government services, 2/ which, after a strong surge following Indepen-dence, has grown by about 10 percent annually; and (iv) agriculture, including
1/ Calculated according to the methodology of the World Bank Atlas, 1978.
2/ The rudimentary national accounts that are available are considered bySeychelles' Statistics Division as "extremely tentative and containinga large element of guess work". Wages and salaries of the centralgovernment would currently account for about 20 percent of GDP.
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fishing and forestry, whose share in the expanding domestic product declinedfrom 20 percent in 1972 to about 10 percent in 1977. The multiplier effectsof these developments on transportation, trade and other services are substan-tial but difficult to quantify. Seychelles has thus become a service economybased on the use of only one part of the country's natural and human resources,and very dependent on external factors. This set of problems is well-understood by the Government.
II. THE RESOURCES
7. Until the early 1970's, Seychelles' development prospects wereextremely limited, and the population had, through the decades, adapted tothe country's constraints. Most of the enterprising Seychellois soughtwork opportunities abroad that would lead to greater achievements and higherstatus, while the rest of the population was accustomed to living on rela-tively self-sufficient family plots. Economic exchanges were minimal, bothwithin the country and with Europe. A few agricultural commodities wereexported to finance some imports, mainly rice. However, it would be wrong toconclude that the population was satisfied with such a traditional, archaicstyle of life and society; rather there were no other possibilities, remoteand isolated, as the islands were, from the rest of the world.
8. With the sudden integration of Seychelles into the internationaleconomy over the last few years, a "revolution of rising expectations" hastaken place. Today, the economy is an extremely open one, with total importsalmost equal to the domestic product. The population has been exposed tomore opportunities to change its consumption pattern and economic status;it has come to demand greater satisfaction of newly perceived needs, and hasbecome more mobile and flexible in its search for work. The opening to theworld has been relatively brutal. The Government now faces the challenge ofmaintaining the momentum of change and of meeting these expectations.
A. Human Resources
9. The Seychelles is fortunate to have, relatively speaking, fewerhuman and social problems than most other developing countries. Even whencompared with countries at similar income levels, Seychelles fares relativelywell: (i) the population growth rate is about 2.1 percent per year and anumber of islands are sparsely inhabited; (ii) recent economic development hasprovided enough employment opportunities; (iii) universal education has beenvirtually reached; (iv) the health and nutritional status of the populationis particularly good; and (v) there are no slums, half of the houses are ingood condition, have tap water, and on Mahe are connected to the electricitynetwork.
10. Income distribution may, however, be a problem. As usual, infor-mation is scanty. The median income of a recent sample survey 1/ was SR 1,000per month (or about US$2,000 per year) in 1978, for an average household sizeof 4.7. The lowest quartile of the sample had a per capita annual income ofless than US$200, probably not very far from absolute poverty, whereas 15percent of surveyed households had more than US$6,000 annually. After allow-ing for the difficulties in evaluating high incomes, and taking into accountmore casual impressions, there is little doubt that the distribution of wealthand income in Seychelles is skewed.
Population
11. Demographic trends 2/ in Seychelles have been particularly sensitiveto changes in economic conditions. Immigration was the main factor thatbrought population from 591 persons in 1789 to 25,000 persons in 1921. Untilthe 1950's, the population only increased by slightly more than 1 percentannually. The birth rate then rose sharply from around 31 per thousand toabout 41 in the early 1960's, owing mainly to a sharp reduction in femalesterility. As the death rate also fell gradually, the natural increase inpopulation reached about 3 percent annually in the 1960's. Between 1968 and1977, however, total fertility declined dramatically from a high rate of 6.2to 4.1; the crude birth rate also declined to 27.7 in 1976 when the deathrate was as low as 7.9 as a result of improved standards of living, medicalfacilities and communications.
12. The population is currently increasing at about 2.1 percent peryear. Its future evolution will depend on a number of factors: (i) a recentincrease in fertility among very young women; (ii) the emigration of womento the Middle East and Europe--the 1977 census report noted a deficiencyof females in the 15-35 age group; and (iii) the impact of family planning. 3/The latter recorded an early success with the operations of the InternationalPlanned Parenthood Federation (IPPF) since 1965, and this despite sustained,adverse pressure from the Catholic Church. With 40 percent of the populationaged less than 15, the age dependency ratio 4/ was 85 in 1976. Arrivals anddeparture of long-term migrants balanced at about 1,300 per year in the1970's. About 4 percent of the population (1,933 persons in 1977) is non-Seychellois.
1/ Working papers, 1979, of the Household Expenditure Survey carried out in1978.
2/ The three most recent censuses took place in 1960, 1971 and 1977, and thesystem of birth and death registration is considered virtually complete.
3/ Out of 7,224 women who had adopted some family planning method between1966 and 1977, 37 percent were still continuing in 1978.
4/ The ratio of the population under 15 and over 65 years of age to theworking population, ages 15-65.
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Employment
13. Unemployment has stood since 1971 at about 8 to 10 percent of the
economically active population 1/ and is not a major problem. The economically
active population increased from 19,080 to 25,393 or about 5 percent per annum
between the period of the census in 1971 and the one in 1977. Half of the
increase in employment was generated by tourist industries that now employ
over 3,000 persons as compared to less than 500 in 1971. To some extent also,
fluctuations in economic activity, particularly in construction, have been
absorbed by changes in the number of self employed and more casual occupations.
Wage earners accounted for about 85 percent of the 23,339 people employed in
August 1977. Although the Government was by far the largest single employer
(5,387 persons), employment in the private-sector (mainly construction and
agriculture, besides tourism) represented 72 percent of salaried employment.
Females account for about one third of the working population but about
half of the unemployed. More skilled manpower is particularly needed in
trades and craft where 44 percent of the workers have only primary or no
education, and at higher levels of administration and commerce where there
is some shortage of university graduates.
14. With respect to wage and salary increases, Government is the prime
mover. First, rises in government salaries took place in June 1976 (5-10
percent), January 1977 (10-33 percent) and January 1979 (average of 10 per-
cent) and were followed with some delay by private employers. Second, the
minimum wage for workers in the private sector is fixed by the Government.
Third, average monthly earnings in the private sector are about one third
below those in the public sector. Finally, the Government recently announced
that future wage increases negotiated between employers and the National
Workers Union (considered as sole representative of employee interests)
will be subject to its approval. Average monthly earnings in paid employ-
ment-rose by 80 percent between end of 1974 and end of 1977, more or less
in line with inflation (see para. 35 on prices).
Education
15. The education system appears successful in meeting its objectives
at the primary level but is having difficulties in supplying the needed
skilled manpower at the secondary level. The number of qualified teachers
varies from 69 percent in primary schools to 80 percent at the secondary
grammar level; in technical vocational schools it is 35 percent only. The
current system consists of six years of basic primary education taught in
English; the junior secondary level comprises two, three or five years of
technical and professional training, while the secondary level proper is a
five-year grammar program which leads to a two-year pre-university preparation
period followed by higher education studies abroad. In 1977, 95 percent of
the children aged 6-12 were attending primary school; 98 percent of them would
normally reach grade six and about 30 percent would reach secondary level. In
the same year there were about 3,000 pupils in the junior secondary program,
and 900 pupils in the secondary grammar program. In 1977, all schools were
nationalized and placed under the responsibility of the Ministry of Education.
1/ Population aged 15 to 65 working or seeking work.
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Health
16. The population's general health condition is remarkably good, itapproaches industrialized countries' standards 1/ with an infant mortalityrate of 26.2 and a death rate of 7.4 in 1978. 2/ Life expectancy at birthis 63 years for males and 70 years for females. 3/ This is in part due tothe favorable climate and good economic conditions. More than 55 percentof the deaths registered in 1978 were of people aged over 64 years, and heartdisease was the main single cause of all deaths. The nutritional statusis satisfactory, thanks to a balanced diet of rice, lentils, fish and fruit.Basic health services are provided through a national hospital and 8 clinicsin Mahe, two small hospitals in Praslin and one in La Digue. In additionthere are a number of health centers throughout the country. Altogetherthere are 319 hospital beds, or one bed for every 194 people. The availabilityof physicians and nurses was 17 percent of that in industrialized countries in1975, and only slighly better than the average in middle income countries.However, physical facilities for health care are more accessible than profes-sional services.
Housing
17. While the 1977 census considered that 80 percent of the houses werein "good or fair condition", there is the need to improve housing conditionsfor the poor. Almost all houses are built in stone or wood and galvanizedsheet, but about 10 percent of housing units are occupied by more than onehousehold. The National Development Plan estimates that 800 new individualhouses should be built, and about 1,300 houses should be extended to reduceovercrowding. The elimination of the "backlog" in housing demand would beeliminated by the construction of 370 new houses a year over the 1978-82period.
18. In order to assist families to obtain adequate housing, the Govern-ment has set up three institutions: (i) the Housing Loan Fund which approved362 applications from June 1977 to November 1978 for loans (15 years, 7 per-cent interest rate) to families who wanted to purchase or build their ownhouses; (ii) the Improvement Loan and Grant Schemes to help families toequip their houses with basic amenities; and (iii) the Home Ownership Schemewhich lends up to 100 percent of building costs to lower income families.Some foreign assistance has already been committed in support of these pro-grams by the European Development Fund, the European Development Bank and theFederal Republic of Germany. Domestic financing for the program is providedby the social security scheme.
1/ The World Bank, World Economic Indicators, 1979.
2/ Ministry of Labor, Health and Welfare, Annual Report, 1978.
3/ Based on 1971-75 data.
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B. Physical Resources
19. Crop agriculture 1/ accounts for less than 10 percent of the domes-
tic product. It comprises (i) plantation farming of the country's main export
crops, copra and cinnamon, and (ii) market gardening of fruit and vegetables
for local consumption. Including the 25 large plantations, there are only
4,000 persons or 17 percent of the working population, engaged in crop
agriculture. Less than 3 percent of all households derive their main income
from land cultivation. Agricultural output has in fact stagnated, and even
when tourism expanded and purchasing power increased, the response of the
agricultural sector was sluggish.
20. The constraints to agricultural development are numerous. First,
there is a shortage of arable land. Of the 22,100 hectares of total arable
land, it has been estimated that about 900 hectares are available for farming
on Mahe and a few hundred hectares on the other islands; the remaining 21,200
hectares are under tree crops and shrubs. If, as expected, future housing
developments take place on the lowlands, cultivation will be limited to the
slopes and will involve terracing and transportation difficulties permitting
little mechanization. Second, the soils have a low natural fertility and
their cultivation requires organic and mineral fertilizer. Manure which is
currently used by farmers is limited in supply because cattle are relatively
scarce; mineral fertilizers have to be imported. Finally, although droughts
do not last more than a few weeks, supplementary irrigation is necessary. A
dense network of water pipes covers Mahe and brings water to most lands, the
total supply of water is limited since irrigation has to compete with home
consumption.
21. At the same time, Seychelles' climate allows a continuous growth
of vegetation. A wide range of vegetables (e.g. tomatoes, pepper, cucumbers,
mangoes, citrus) could be grown on a larger scale. Most of the population is
rural and Victoria, the capital, is the only city. The FAO report states that
agriculture has never been a basic activity; "... one cannot talk of an agri-
cultural vocation of the population" and concludes that "it will be necessary
to promote a rural development policy encompassing all the technical, economic
and social sectors."
22. Livestock is diversified but there are insufficient cattle. The
Seychelles imported meat and dairy products for SR 14 million in 1977, or
close to 5 percent of merchandise imports. In that year there were 2,266 head
of cattle, of which only 839 were cows, most of them on family lands. The
country is self-sufficient in pork, poultry and eggs which are produced on
small holdings and in modern factory-farms.
1/ See FAO, Les Seychelles, Rapport de la mission de programmation,
d'identification, et de formulation de prolets de developpement rural,
Rome, 1979.
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23. Fish accounts for about 70 percent of the supply of animal proteinto the population, substituting for the shortage of beef. About 6,000 tonsof fish are caught annually in the shallow waters of the continental shelf.This traditional fishing is done by about 800 fishermen of which half are selfemployed. In fact the stocks of fish are so large that the development of afishing industry would be justified.
24. Tourism has become a major industry in the Seychelles. The coun-try's spectacular mountains and oceanic scenery, the agreeable climate andrelatively healthy tropical environment have become known by more and morevisitors over the past few years. In 1971, there were only about 3,000tourists; by 1978, there were more tourist entries than the number of residentpopulation. During the years 1973-1978, the number of tourists increased atan average rate of 27 percent per year, slackening somewhat towards the end ofthe period. The average length of stay also fell from a peak level of 11.5days in 1976 to 9.6 days in 1978. In recent years about two thirds of thetourists came from European countries -- France and the United Kingdom beingthe major ones. This was partly due to frequent air service and partly tothe availability of special fares and tour packages. Between 1971 and 1978,the capacity of hotels and guesthouses increased from 165 beds to 2,170 beds-- an annual rate of growth of about 45 percent. Value added by hotels andrestaurants accounted for about 9 percent of Gross Domestic Product (GDP)in 1977.
25. In view of the importance of tourism in the Seychelles' economy theGovernment recently took a more active role in the sector by (i) increasingtaxation, (ii) reserving all new hotels with less than 60 beds for Seychelloisownership, (iii) putting greater emphasis on advertising and promotion, (iv)improving training facilities and helping local handicraft industries, and(v) fixing the increase in accommodation at 400 beds per year to meet theexpected annual increase in tourists of 10 percent while remaining withinthe capacity of the construction industry.
26. Manufacturing is limited to about 50 small-scale establishmentscontributing about 5 percent to the domestic product. Most of these arelocated on an industrial estate on Mahe and comprise a brewery, a cigarettefactory and a plastics factory. Other activities are mainly family businessesin local handicrafts, tailoring, furniture making, boat-building and softdrink bottling. Altogether, they employed about 1,300 people in 1977, orabout 5 percent of the labor force. Guano, used as fertilizer, has beenone of the main traditional exports the importance of which has varied withworld market prices. In 1977 guano accounted for 5.4 percent of the value ofdomestic exports and its value was SR1,319,000. Wage levels and labor avail-ability for this mining operation are similarly determined by world marketprices. It is extracted from the island of Assumption, but there are largedeposits on many of the other small islands.
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27. Water resources are being expanded by the completion of the La
Gogue dam which will provide storage and treatment for about 200 million
gallons, or enough to meet expected demand for the next seven years on Mahe.
A small program of ground water development is being pursued. The distri-
bution network on Mahe is relatively dense, but there is need to extend the
treated water system to some areas. Of the other islands, only Praslin has
an extended distribution system. The only main sewerage service is on the
reclamation area in Victoria, where less than 20 users provide sewerage to
treatment works capable of serving a population of 8,000. A public electricity
system exists only on Mahe. The main power station in Victoria has five
generators, with a total installed capacity of about 10 MW, and a gross
production that was 37 million KWh in 1977. Demand for electricity has
doubled since 1973 and is expected to rise by about 13 percent per annum over
the next five years; in addition to new generating capacity, meeting this
demand will require an extension of transmission lines.
28. The infrastructural base of Mahe is relatively well-developed.
There are about 140 km of surfaced road and another 35 km of all-weather roads
on the island. The international airport has been improved since its con-
struction in 1971 but is now insufficient to accommodate the increasing number
of wide-bodied aircraft and the large influx of tourists. Approximately half
the traffic at the airport consists of passengers terminating their journey
in Seychelles, one quarter transit passengers and the remainder inter-island
traffic. There is a landing strip on Praslin suitable for light aircraft.
Telecommunication facilities are highly developed, and the national telephone
system extends to a few islands.
29. The harbor in Victoria was improved in 1975 by an extension of the
deep-water quay and the enlargement of cargo handling and storage space. It
handled about 70,000 tons of general cargo and 45,000 tons of bulk cement and
oil in 1979 and received 324 ships. The present scale of port operations
makes calling at Seychelles of only marginal interest to the major shipping
lines, but its central position in the Indian Ocean could make Victoria a
more important transshipment point. Ferry services between Mahe and Praslin
and La Digue are provided by the private sector.
C. Financial Resources
30. Over the years immediately before and after Independence, the
Seychelles benefited from a number of favorable circumstances. The growth of
tourism and grant assistance from the United Kingdom brought in large amounts
of money at a time when the Government was not yet geared to carry out an
expanded program of development expenditure. Liberal economic policies
encouraged foreign private capital, though they often resulted in speculation.
A number of national and international agencies also offered their assistance
to the newly-independent country.
31. By 1978, there were some signs of a dampening of this euphoria,and the Seychelles may soon have to manage with resources that may be scarcecompared to its ambitious development program. Until now, its financial
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management has been conservative enough to accumulate some reserves, and wiseenough to lay the base for a better mobilization of domestic resources. Thefuture will thus depend upon the Government's ability to keep its current andcapital expenditure under control and within the limits of available finance.
Government Finance
32. The financial position of the Government has been favorable, butmay become more difficult in 1979. Receipts from taxes have been maintainedat about 75 percent of current expenditure; the considerable buoyancy ofimport duties and income tax proceeds, after major tax reforms, has matchedthe rise in current expenditure that followed Independence. The currentbudget moved from a traditionally deficit position to a large surplus in 1976and 1977, owing mainly to current grants from the United Kingdom and rentalpayments from the United States tracking station on Mahe. After a smallersurplus in 1978, the current account is likely to be in deficit in 1979 whencurrent expenditures are budgeted to rise by 54 percent compared with an annualaverage increase of 33 percent over the two previous years.
33. Capital expenditure more than doubled in 1978, and its share intotal expenditure reached one third as compared to 20 percent in 1977. Until1978, total capital expenditure, including net lending to various nationalfunds and public enterprises, was more than met by external capital assis-tance, allowing the Government to build-up its Euro-dollar deposits. Thesharp increase in expenditure in 1978 was accompanied by a shift from grantsto concessionary foreign loans and some increase in the external and domesticdebt. Greater financial stringency may thus develop in 1979 and could rapidlybecome a matter of concern if the pressures that began in 1978 are not kept incheck in future years.
Money and Banking
34. Whereas the commercial banking system is well-, if not over-developed it was only in December 1978 that a Monetary Authority was estab-lished. It will enable the Government to supervise the banking.system andmanage, in a flexible way, the monetary development of the economy. In addi-tion to seven commercial banks, mainly branches of established foreign banks,there are the Seychelles Government Savings Bank which receives savingsdeposits from the public through post offices, and the Development Bankof Seychelles in which a few national and European aid institutions have,together with the Government, an equity capital participation.
35. Monetary developments have been dominated over the last few yearsby (i) a sustained growth in time deposits, mainly from the National ProvidentFund (replaced as of March 1, 1979 by the Social Security Fund); quasi-moneyhas remained higher than currency and demand deposits; (ii) improvements inthe foreign asset position; and (iii) the importance of credit to the privatesector which by the end of 1978 accounted for 91 percent of total domesticcredit. Total money supply, including quasi-money, doubled over the lastthree years. Meanwhile, GDP in real terms probably increased by about 20 per-cent. Reinforcing the effects of international inflation, to which Seychelles
is particularly sensitive, monetary expansion has substantially fuelled
domestic inflation. The Victoria consumer price index rose by only 40 percent
in the 1975-78 period, but it is likely that a more appropriate index would
probably have exhibited a considerably larger increase. A new monthly retail
price index will be published beginning in June 1979 on the basis of the 1978
Household Expenditure survey.
Balance of Payments 1/
36. The external payments situation can be summarily characterized as
follows: (i) there is an enormous difference between domestic merchandise
exports (SR 24 million in 1978) and merchandise imports (SR 357 million in
1978); (ii) gross earnings from tourism (SR 208 million in 1978) are very sub-
stantial; (iii) the current account deficit fluctuated between 20 and 30 per-
cent of GDP in the last few years; and (iv) external reserves have steadily
increased due to inflows of private and public capital; at the end of 1978
they amounted to SR 116 million (or US$17.7 million), or about four months'
1978 imports. However, the country is very dependent upon tourism and for-
eign capital; any decline in either of these would obviously reduce imports,
but the country's own resources (exports and reserves) would not be sufficient
to maintain economic activity and development.
37. Copra and cinnamon bark accounted for 75 percent of domestic exports
in the 1974-78 period. Exports of frozen fish have rapidly increased, and in
the last two years brought more foreign exchange than cinnamon. Exports of
guano are stagnating at about 5 percent of merchandise exports. Copra is
almost all exported to Pakistan, which paid prices much above the world market
level to secure copra of Seychelles' high quality. Since 1974, the value of
re-exports, mainly sales of petroleum products, has been nearly twice the
value of local exports. Total earnings from merchandise exports more than
doubled between 1974 and 1978, owing mainly to price increases. At the same
time imports increased faster, reflecting the growth of tourism, and the rise
in government development expenditure. lmports of manufactures, machinery
and transport equipment accounted for about 40 percent of 1977 merchandise
imports.
38. Net private capital inflows 2/ have been substantial since 1975,
amounting to about US$9 million a year on the average. There are no restric-
tions on payments for imports, invisibles, inward or outward capital. With
a slowdown in private investment opportunities (tourism, real estate), and
an increase in speculative movements, the private capital account may be less
favorable in 1979; and disbursements of foreign aid may then exceed private
capital inflows for the first time in the 1970's.
1/ Tentative estimates have been prepared by the IMF for the 1974-78 period.
2/ Including errors and omissions.
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External Assistance
39. "Net official capital inflows increased by 14 percent a year be-tween 1974 and 1977; in 1978, however, they fell by about 5 percent, as UnitedKingdom capital grants declined by 23 percent." 1/ Net disbursements in 1977have been estimated at about US$6.4 million, mainly from the United Kingdom(loan aid of about US$2.2 million), France (grant aid of US$1.8 million fortuna fisheries), Australia, OPEC and EEC. In 1978 a shift took place infinancing of capital projects from grants to concessionary loans.
40. External aid commitments have been substantial since Independence:(i) the United Kingdom provided "special financial assistance" in the form ofgrants in aid in 1976 and 1977, plus grant financing of general projects andthe La Gogue dam; (ii) the United Kingdom also agreed in 1977 to finance anumber of development projects on an interest free loan basis up to an amountequivalent to E 10 million; (iii) France, through the Caisse Centrale decooperation economique (CCCE) committed loans of more than US$5 millionequivalent; (iv) China provided a loan equivalent to US$3.5 million in 1978;(v) the Federal Republic of Germany signed a loan agreement in May 1979 foran amount equivalent to more than US$2 million; (vi) OPEC lent a total ofUS$0.6 million in 1977 and 1978; and (vii) the ADB and the ADF committedabout US$9 million in 1978. Most of this assistance has been provided onconcessionary terms. The disbursed external public debt at the end of 1976stood at SR 4.9 million, consisting entirely of interest-free loans from theUnited Kingdom. By 1978, this total had reached SR 27.0 million (equivalentto about US$4 million).
III. THE DEVELOPMENT STRATEGY
A. Development Planning
41. The Government has emphasized planning as a management tool forthe economy. Since Independence, the principle of a five-year rollingdevelopment plan has been closely followed. The development plan for 1979-83which was published in June 1979, is the first annual 'rolling forward' of theplan. Against the background of recent economic developments, the Plan statesGovernment's policies with respect to the various sectoral constraints andpossibilities with emphasis on education, agriculture, and social services.It also lists all public sector projects with a commentary and the expectedphasing of their implementation. Thus, the Plan constitutes an operationallywell-conceived framework for government capital expenditure.
1/ IMF, Recent Economic Developments, June 4, 1979, p. 46.
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42. Physical planning is an essential feature of the government manage-
ment apparatus; it supplements the policy and financial tools provided by
the National Development Plan. The 1975 Structure Plan (a complementary
document to the National Development Plan with a heavy emphasis on imple-
mentation) will be revised to state how physical development in Seychelles
is to be guided and promoted as well as controlled over the next decade. The
revised Seychelles Structure Plan would be amplified at the local level by
village development plans, and policies for the conservation of scenery and
wildlife. A Master Plan for greater Victoria should be completed by the end
of this year.
43. The organization and role of planning was recently described by an
IMF report I/ as follows: "Overall coordination and supervision of the plan
is the responsibility of the Department of Economic Development, Planning and
Housing (DEDPH). Feasible projects from different ministries are first sub-
mitted to the Project Planning and Design Unit of the Ministry of Works, for
preparation, design, and costing; they are then appraised and submitted for
financing to a suitable agency by the Economics and Aid Division of DEDPH,
which is responsible for mobilizing the domestic and external resources neces-
sary for implementation of the plan. Finally the projects are cleared with
the Department of Finance and are then submitted to the President (who is
also Minister of Finance) for approval. After approval, the execution and
management of the plan's projects become the responsibility of the ministries
under which they are categorized, although supervision of the actual contract
works within the projects remains with the Project Planning and Design Unit."
44. The Plan's capital expenditure target was for 1978 SR 200 million;
total commitments amounted to SR 300 million. On the basis of preliminary
actuals capital expenditure is expected to be around SR 100 million in 1978.
ThisThas represented a considerable increase in government capital expenditure,
after an average growth rate in capital expenditure of only about 8 percent
annually during the 1973-77 period. The La Gogue dam alone was expected to
absorb more than half of the 1978 capital budget, while extensions to the
electricity network were to receive a further 20 percent. In its report the
IMF stated: "As a reflection of the social priorities of the Plan, direct
expenditure on housing became an important item for the first time in
1978." 1/
45. The magnitude and the composition of the investment program pro-
jected for 1978-82 have been updated in the 1979-83 Plan. The list of proposed
projects has not been, however, drastically revised and can thus be taken as
showing the priorities of the Government and the direction in which it intends
to steer the economy. An investment program of SR 1090 million (equivalent
to about US$160 million) in 1979 prices is envisaged for the period 1979-83.
The most important sectors are fisheries (13 percent), education (10 percent),
and housing (12 percent). Electricity, water and agriculture are allocated
1/ IMF, op. cit., p. 19.
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about 7 percent each. A project for Land Reclamation in Victoria to be imple-mented in 1981-83 accounts for about SR 130 million, encompassing a new road,the extention of the port and the development of the fishing harbor. Plannedexpenditure in tourism was limited to the outer islands (SR 6 million), acraft village (SR 1.4 million), and a National Water Sports Center (SR 2million), as it is expected that the private sector will continue to providemost of the investment for industry, including participation in a Marina/Yacht Harbor Project (SR 5 million).
B. Oblectives and Policies 1/
46. The two main objectives of the Government are: improvement insocial conditions and economic self-reliance. At the same time, the Govern-ment intends to maintain as much economic liberalism as is compatible withits long-term goals. No doubt it will require considerable management andpolitical skills to design policies that will accommodate all these objec-tives. Although, there is a feeling in the Seychelles' private sectors, thata trend has been set towards increasing government intervention, it is muchtoo early to equate the Government's desire to set the stage for future eco-nomic development with the drawbacks of a centrally-planned economy.
Social Policies
47. The satisfaction of basic needs is the primary objective of theGovernment. "Over the next five years and beyond, Seychelles will seriouslyattempt to: (i) remedy the housing problem; (ii) improve the material con-ditions of all Seychellois in terms of higher levels of per capita income,nutrition, education and social development; (iii) achieve a high degree ofself-sufficiency in food production; ... " (p. 24). In this respect, housingreceives particular attention, since, as shown above (para. 17-18) Seychelleshas already attained relatively high standards in education, health, andnutrition.
48. The Government is giving top priority to "self-owned housing" inthe field of social development. In the National Development Plan it isstated: "All the backlog in housing demand will be eliminated during the Planperiod. It would probably not be possible to achieve this aim if we merelyrelied upon the main housing schemes, and therefore an injection of newhousing will be made in the New Village project" (p. 117). This "New Village"comprising about 300 housing units would be constructed in the North-East ofMahe at a cost of SR 24.0 million. Together with the existing schemes, theGovernment would thus promote the construction of about 2350 houses over the1979-83 period for a total cost of SR 133 million at 1979 prices (or 12percent of the government investment program envisaged in the DevelopmentPlan).
1/ Quotations in this section are from the National Development Plan,1979-83.
- 15 -
49. As regards education, the Government has made the following policy
decisions: (i) to establish equal school opportunities by removing school
fees and providing free universal education for nine years; (ii) to amalgamate
all the primary and junior secondary schools establishing an eight-year
primary cycle; (iii) to introduce instruction in Creole during the first three
years and re-introduce the teaching of French; (iv) to establish pre-school
education; (v) to upgrade the teacher-training programs; and (vi) to prepare
a school building program needed to enable the country to upgrade primary
schools by constructing additional classrooms, increase secondary level
capacity by 33% and adapt the secondary programs to the country's economic
needs. The reform would delay the selection of students for the academic or
professional stream without changing the duration of education. Technical
education would terminate after 11 years.
50. An in-depth study of the long-term prospects for employment and
diversification of the economy is being commissioned. A system of work per-
mits for non-Seychellois is being introduced to control employment more effec-
tively, although "it is recognized that there will be, for some time, a need
for the employment of non-Seychellois" (p. 127). With respect to health,
Government has completed a National Health Scheme, which charts the pattern
of health services over the next decade; Government has also placed emphasis
on upgrading services and existing facilities. "Whilst measures directly
concerned with family planning are being adopted, the Government believes
that the two major conditions to effective planning of family size are (i) the
improvement in the level of income and welfare....; and (ii) the provision of
an adequate education.... On the social front the family, and responsible
family planning, must be fostered as the national basis of society" (p. 29).
"The Family Planning Programme ... is seen as the opportunity to choose the
number of children in a family", thus contributing to improving the general
level of welfare (p. 122).
Self-reliance
51. "Attempts will be made over the Plan period to raise the level of
mobilization of domestic savings by fiscal, monetary and related policies ...
At present virtually 100 percent of the capital development program is
financed from foreign sources and even the recurrent budget is supplemented
by aid funds. It is the Government's intention to alter this situation over
the next five years to a point where the recurrent budget is entirely domes-
tically financed and a substantial share of the capital development programme
is financed by the people of Seychelles" (p. 25).
52. Priority is given to agriculture to reduce reliance on food imports
and to promote crops for exports when compatible with the satisfaction of
domestic demand (the latter being, in part, created by tourists and therefore
an indirect source of foreign exchange). A few state farms will be estab-
lished, on an experimental basis. Similarly "the first objective of fisheries
development is to ensure a sustained supply of fish, at reasonable prices, to
the domestic market" (p. 43). Seychelles has established a 200-mile exclusive
economic zone beyond and adjacent to its 12-mile territorial waters. As such
- 16 -
the Republic controls an area of 400,000 square miles in the Indian Ocean.Government policies with respect to the deep-sea fishing industry will bedetermined by the end of the year.
53. "Tourism is, and will continue to be the main sector of the economy"(p. 55). After the rapid expansion in the hotel facilities of the early 1970'sthe Government intends to be more selective in permitting the construction oflarge hotels. It also intends to promote the involvement of Seychellois inthe provision of tourist accommodation in part through financing by theDevelopment Bank, and to concentrate on the improvement of tourist facilitiesother than hotels. It is expected that the number of hotel beds availablewill double to 4,000 by the end of 1982.
54. "There is scope for the development of agro-industries, such as theproduction of oils, soap, furniture, etc. The technology to be employed herewill have to be essentially small-scale and appropriate to the likely sizeof the domestic market in Seychelles" (p. 27). Regional development of theouter islands is also considered as a means to increase production of copra,maize and small livestock.
C. Prospects
55. At this early stage, with the World Bank just beginning its acquaint-ance with the country, it would be premature to venture any assessment of thedevelopment prospects of the Seychelles. At this juncture only a few preli-minary impressions can be presented. First, the management capability ofSeychelles' new administration is impressive. It has super-imposed a devel-opmental approach on a well-established British administrative tradition. Infact, a number of expatriates are in advisory or operational positions, whileSeychellois are in key administrative positions. Considerable efforts arebeing made to acquire new information, design more appropriate policies, andcontrol what have, until recently, been unchecked developments, particularlyin real estate, banking and commerce.
56. Second, the development strategy is well-designed on the whole,and clear priorities have been set with a view to support Seychelles' long-term development. A realistic approach has been taken toward tourism possi-bilities, its important role in the economy, and also its implications. Thenew emphasis given to agriculture is appropriate in order to reduce externaldependence, although the proposed state farms may not be the best possible useof scarce manpower and financial resources. Prospects for manufacturing arerelatively limited, and the creation of an industrial free zone is not cur-rently envisaged. In the long run, there is little doubt that fishing shouldbecome a major industry; it would lead to better employment of Seychelles'most important assets: its people and its sea territory. Finally, it is tobe hoped that the strategic position of the country in the Indian Ocean canjustify greater utilization of its port as a transshipment center.
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57. New financial constraints are likely to emerge in the near future.A delicate balance has to be struck between the need to stimulate privateinitiative, promote savings and attract foreign interests on the one hand,and the need to mobilize financial resources while directing them appro-priately towards long-term social and economic development on the other.An investment program in line with the Government's development strategywill require an increase in domestic efforts, but also substantial levels ofexternal capital aid, including some assistance on conventional terms thatthe country should be able to service if prudent financial policies aremaintained.
STATISTICAL APPENDIX
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STATISTICAL APPENDIX
1. POPULATION AND EMPLOYMENT
1.1 POPULATION BY MAIN ISLANDS AND AGE GROUPS
1..2 POPULATION BY ISLANDS AND SEX, 1977
1.3 POPULATION BY SEX AND AGE GROUP, 1977
1.4 GROWTH OF POPULATION 1960, 1971, AND 1977
1.5 EMPLOYMENT AND LABOUR FORCE, 1973-77
1.6 EMPLOYMENT IN THE MANUFACTURING INDUSTRIES, 1975-78
1.7 FORMAL EMPLOYMENT - AVERAGE MONTHLY EARNINGS BY MAIN ECONOMICACTIVITY, 1974-77
1.8 FORMAL EMPLOYMENT BY MAIN ECONOMIC ACTIVITY, 1973-77
2. NATIONAL ACCOUNTS
2.1 GROSS DOMESTIC PRODUCT, 1972-76
2.2 GROSS DOMESTIC PRODUCT BY INDUSTRIAL SECTOR, 1976-77
3. EXTERNAL TRADE AND BALANCE OF PAYMENTS
3.1 EXTERNAL TRADE SUMMARY, 1973-78
3.2 VALUE OF DOMESTIC EXPORTS, 1973-77
3.3 DESTINATION OF DOMESTIC EXPORTS 1973-77
3.4 DESTINATION OF DOMESTIC EXPORTS BY MAJOR COMMODITIES, 1977
3.5 VALUE OF IMPORTS, 1973-77
3.6 IMPORTS BY MAIN COUNTRIES OF ORIGIN, 1973-77
3.7 EXTERNAL RESERVES, 1974-78
3.8 BALANCE OF PAYMENTS, 1974-78
4. EXTERNAL DEBT
4.1 GOVERNMENT FOREIGN DEBT COMMITMENTS
5. PUBLIC FINANCE
5.1 CENTRAL GOVERNMENT OPERATIONS, 1973-78
5.2 GOVERNMENT REVENUE AND CURRENT GRANTS, 1973-79
5.3 GOVERNMENT EXPENDITURE, 1973-79
5.4 GOVERNMENT CAPITAL EXPENDITURE, 1973-78
5.5 CAPITAL INVESTMENT PROGRAMME, 1978-82
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Page 2 of 2
STATISTICAL APPENDIX
6. MONETARY STATISTICS
6.1 MONETARY SURVEY, 1974-78
6.2 COMMERCIAL BANK LENDING TO THE PRIVATE SECTOR, 1974-78
6.3 INTEREST RATE, 1977-79
7. AGRICULTURE AND LIVESTOCK STATISTICS
7.1 AGRICULTURAL PRODUCTION, 1974-78
7.2 LIVESTOCK AND POULTRY PRODUCTION, 1977
8. OTHER SECTORS
8.1 PRODUCTION OF BEVERAGES AND TOBACCO, 1973-78
8.2 VISITORS BY LENGTH OF STAY, 1973-78
8.3 HOTEL STATISTICS, 1973-78
8.4 ELECTRICITY: CAPACITY AND PRODUCTION, 1973-77
8.5 SALES OF ELECTRICITY BY SECTOR, 1973-77
8.6 VEHICLES: NEW REGISTRATION, 1973-77
8.7 PORT VICTORIA: SHIPS CALLING AND PASSENGERS, 1973-77
8.8 SEA FREIGHT, 1973-77
8.9 AIR TRAFFIC, 1973-77
8.10 TELECOMMUNICATIONS, 1970- 7
8.11 ENROLMENT IN POST-SECONDARY TEACHERS TRAINING BY AGE AND SEX, 1977
8.12 NUMBER OF SCHOOLS, TEACHERS AND PUPILS BY TYPE OF SCHOOL, 1977
8.13 PRIMARY SCHOOL ENROLMENT BY CLASS, AGE, AND SEX, 1977
8.14 SECONDARY SCHOOL ENROLMENT BY FORM, AGE, AND SEX, 1977
8.15 SCHOOL ENROLMENT - PRIMARY AND SECONDARY, 1973-77
8.16 ACCESS TO WATER SUPPLY BY TYPE, 1977
8.17 ELECTRICITY SUPPLY TO HOUSEHOLDERS, 1977
8.18 OCCUPIED HOUSING STOCK, AND BUILDING CONDITION, 1977
8.19 TOILET FACILITIES, 1977
8.20 DEATHS BY MAJOR DISEASE, 1978
8.21 ISLANDS OF SEYCHELLES BY TYPE OF OWNERSHIP
9. PRICES
9.1 VICTORIA RETAIL PRICE INDEX, 1974-79
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Table 1.1: POPULATION BY MAIN ISLANDS AND AGE GROUPS
Percentage Distribution1977 65 and
Census Total Under 15 15 - 64 over
Victoria (23012) (37) (37.9) (55.7) (6.4)
Other Mahe (31560) (51) (41.1) (52.0) (6.3)
Total Mahe 54572 88 39.7 53.9 6.4
Praslin 4343 7 41.7 52.0 6.3
La Digue 1911 3 48.0 45.0 7.0
Silhouette 390 1 37.8 55.8 6.4
Other Islands 682 1 10.0 83.6 6.4
Total 61898 100 39.8 53.8 6.4
Source: 1977 Census Report.
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Table 1.2: POPULATION BY ISLANDS AND SEX, 1977
Islands Male Female Total
Mahe Group 27277 27295 54572
Praslin Group 2169 2174 4343
La Digue Group 955 956 1911
Silhouette 236 154 390
Fregate 34 16 50
North 25 13 38
TOTAL GRANITIC ISLANDS 30696 30608 61304
Aldabra 6 3 9
Alphonse 26 12 38
Assumption 56 4 60
Bird 20 9 29
Coetivy 34 14 48
Cosmoledo 6 2 8
Darros 88 19 107
Denis 62 10 72
Des Roches 22 10 32
Farquhar 45 19 64
Marie Louise 23 - 23
Platte 4 1 5
Poivre 38 10 48
Providence 21 4 25
St Joseph 24 2 26
TOTAL CORALLINE ISLANDS 475 119 594
TOTAL SEYCHELLES 31171 30727 61898
Source: 1977 Census Report.
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Table 1.3: POPULATION BY SEX AND AGE GROUP, 1977
(Mid-year estimates)
Age Group Males Females Total
0-4 4,114 4,040 8,154
5-9 4,109 3,992 8,101
10-14 4,131 4,211 8,342
15-19 3,861 3,556 7,417
20-24 2,781 2,347 5,128
25-29 2,057 1,633 3,690
30-34 1,554 1,397 2,951
35-39 1,466 1,520 2,986
40-44 1,360 1,366 2,726
45-49 1,286 1,210 2,496
50-54 1,103 1,193 2,296
55-59 913 1,014 1,927
60-64 749 843 1,592
65-69 691 907 1,598
70-74 482 581 1,063
75 and over 468 851 1,319
Total 31,125 30,661 61,786
Source: 1977 Census Report.
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Table 1.4: GROWTH OF POPULATION 1960, 1971 AND 1977
(census figures)
Area 1960 1971 1977
Victoria 11,358 13,736 15,559
Plaisance 1,789 2,582 2,540
Mt Fleuri 957 1,883 2,876
Pier 421 527 404
Hospital 958 1,183 839
Central 3,553 3,375 3,756
Bel Air 1,462 1,689 1,998
St Louis 1,364 1,566 1,942
ZigZag 562 685 708
Conan 292 246 496
Rural Mahe 22,120 31,684 39,013
Victoria Rural 2,034 2,893 3,555
Plaisance 1,371 3,479 4,341
Cascade 1,583 2,037 2,600
Anse aux Pins 2,674 3,819 5,650
Anse Royale 2,373 2,827 3,182
Takamaka 1,388 1,668 2,018
Baie Lazare 1,543 2,123 2,273
Anse Boileau 2,399 3,027 3,420
Grand Anse 863 1,335 1,569
Port Glaud 965 1,088 1,391
Bel Ombre 2,353 3,652 4,569
Glacis 1,217 1,834 2,194
Anse Etoile 1,357 1,902 2,251
TOTAL MAHE 33,478 45,420 54,572
PRASLIN 3,886 4,244 4,343
LA DIGUE 1,842 1,985 1,911
SILHOUETTE 780 417 390
OTHER ISLANDS 1,439 830 682
TOTAL SEYCHELLES 41,425 52,896 61,898
Source: 1977 Census Report.
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Table 1.5: EMPLOYMENT AND LABOUR FORCE, 1973-77
(thousand persons)
1973 1974 1975 1976 1977
Wage earners 13.74 12.97 13.55 14.92 19.11
Government sector (4.94) (4.83) (5.04) (5.27) (5.37)
Estimates for 1976 as given above were considered by Seychelles'Statistics Division as "extremely tentative". They are being revised andthe GDP .series is being updated on the basis of more recent calculationsmade in the Division and given in Table 2.2. It is likely that GDP atmarket prices for 1976 will be on the order of SR 335 million as comparedto the above estimate of SR 300 million and the revised estimate of SR 375million. Accordingly, GDP at current market prices would have been aboutSR 432 million in 1977.
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Table 2.2: GROSS DOMESTIC PRODUCT BY INDUSTRIAL SECTOR, 1976-1977
$R million)
1977 Real
at current at 1976 growth
1976 prices prices %
Agriculture 40.3 -/ 52.0 39.4 - 2
Forestry 1.5 1.8 1.6 7
Fishing 11.9 14.8 13.6 14
Mining & manufacturing 14.8 18.0 16.0 8
Handicrafts 5.4 6.0 5.7 5
Electricity 3.6 5.0 4.1 12
Water 0.5 0.7 0.5 13
Building & construction 35.0 42.8 37.2 6
Distribution & road transport 40.5 48.4 41.2 2
Water transport 14.5 17.6 16.5 11
Air transport 9.8 12.3 11.1 13
Passenger transport 8.9 13.7 10.9 23
Tour operators 1.8 2.4 1.9 5
Communications & storage 8.5 12.1 10.1 18
Hotels & restaurants 32.5 45.1 35.2 8
Banking 12.2 13.0 10.8 - 11
Insurance 1.4 1.6 1.3 - 5
Business services 3.5 3.5 3.7 4
Real estate 5.8 6.0 5.9 2
Ownership of dwellings 29.2 34.3 29.8 2
Producers of Govt. services 52.1 76.2 56.3 8
Private non-profit institutions 0.9 1.2 0.9 1
Domestic servants 7.4 8.7 7.5 2
Recreation services 2.5 3.0 2.6 5
Other services 3.2 3.7 3.3 3
Dummy financial institution - 5.8 - 8.2 - 6.7 -
CDP at factor cost 341.9 435.7 360.4 5.4
Import duties 32.7 47.1 38.6 -
GDP at market prices 374.6 482.8 399.0 6.5
Source: Seychelles' Statistics Division (Provisional estimates made in November 1978)
1/ May be overestimated by as much as SR 14 million.
Source: Monetary Authority and IMF, Recent Economic Developments, June 4, 1979.
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Table 4.1: GOVERNMENT FOREIGN DEBT COMMITMENTS
Amount ofInstitution Making Loan Loan
and date Rupees Purpose of Loan
(million)
British Government 133.333 Various Development Projects -
Agreement 1977
French Government through 31.000 Tuna Fisheries DevelopmentCaisse Centrale deCooperation Economique 1978
French Government through 0.525 State Farm ProjectCaisse Centrale deCooperation Economique 1977
French Government through 4.650 Housing for Staff QuartersCaisse Centrale deCooperation Economique 1978
OPEC 1977 2.340 Various Development Projects
OPEC 1978 2.100 Various Development Projects
African Development Bank 31.865 Seychelles International1978 Airport Improvements
African Development Fund 21.244 Primary Education Development1978
People's Republic of China 24.00 Senior Secondary School1978 Project and Training Purposes
West German Government through 13.6 Low Cost HousingKreditanstalt Fur Wiederaufban Development(Agreement being signed May1979)
U.K. Exchequer Loans 4.966 Various Development Projects1966/67
U.K. Commonwealth Dev. 0.520 Various Development Projects1969
U.K. Commonwealth Dev. 0.043 Various Development Projects
a/ Among others it includes the following major projects: Mahe roads for SR 1.6million, spares and equipment for cutter section dredger for SR 1.1 million,fourth generating set for SR 804 million, mechanization of timber extrationfor SR 1.1 million, Rochon water conversion for SR 2.0 million, electricitydistribution extensions for SR 1.5 million and 33 KV Line for SR 15.3 million.
Source: Accountant General's office.
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Table 5.1: CENTRAL GOVERNMENT OPERATIONS, 1973-78
(SR million)
1/1973 1974 1975 1976 1977 1978
Revenue and current grants (44.5) (53.4) (58.7) (98.3) (140.7) (155.2)
Current expenditure (49.1) (53.4) (64.7) (86.8) (123.9) (152.2)
Current balance -4.6 -- -6.0 11.5 16.8 3.0
Capital expenditure -26.9 -28.1 -29.5 -39.6 -34.8 -82.8
Short-term depositsSR 30,000 to SR 500,000 5.0 5.0 5.0 3/Over SR 500,000 5.5 5.5 5.5
1/ Since December 1978.
2/ Set jointly until March 1979 by Barclays International and StandardBank, acting as the Bankers' Association.
3/ Rates applied independently by Standard Bank as of March 12, 1979:prime rate, 11.0 per cent; fixed deposit accounts - 12 months andover SR 100,000, to be negotiated; short-term deposits SR 30,000to SR 500,000 and over, 7.5 per cent.
Source: IMF, Recent Economic Developments, June 4, 1979.
a!Table 7.1: AGRICULTURAL PRODUCTION, - 1974-78
Unit 1974 1975 1976 1977 1978
Crop production
Copra -/ ton 3,057 2,860 2,748 2,918 2,953
Cinnamon ton 1,448 1,085 1,153 799 610
Tea (green leaf) ton 145 180 181 172
Livestock slaughters at Le Rocher Abattoir
Cattle Number 398 329 352 351 278
Pigs Number 2,635 3,817 3,724 3,996 4,468
a/ No data is available on the production of milk, eggs, fruit and vegetables, etc. nor on total coconuts produced.
b/ Export figures - excluding small quantity used locally in coconut oil production.
Total 11,676 12,664 61.898 5,221 4,168 2,270 17 11,676 3/
I/ Excluding households with 15 or more persons.
2/ Refer to Silhouette Island onty.
3/ In addition to occupied houses. there were 639 private units in 1977. These houses were either empty or used for touristswho did not classify as residents.
Source: 1977 Census Report.
Table 8.19: TOILET FACILITIES, 1977a!
(No. of households)
PitFlush latrine Other Not stated Total
Greater Victoria (2,072) (2,182) (377) (16) (4,647)
Rural Mahe (1,868) (4,376) (252) (16) (6,512)
Mahe, Total 3,940 6,558 629 32 11,159
Praslin 183 768 14 3 968
La Digue 68 333 14 - 415
Silhouette 4 117 1 - 122
Total 4,195 7,776 658 35 12,664
a/ Refers to the households on the four main islands excluding households with more than 14 members.
Source: 1977 Census Report.
Table 8.20: DEATHS BY MAJOR DISEASE, 1978
(Number)
Less than 1-4 5-14 15-24 25-44 45-64 65 and All1 year _ _ over ages
