The eruption of the Soufriere Hills Volcano disrupted the entire economy of Montserrat. The situation for Montserrat was as desperate as it had ever been in history. In her book, Fire from the Mountain, author Polly Pattullo explained how the economic situation was compounded by the withdrawal of insurance coverage. In May 1997, the insurance companies had imposed “major changes,” in order to reduce their liability (Pattullo 106). Over the next three months, levels of payment dropped to 55% and then to 25%. By August, the insurance companies invalidated all of their insurance policies. The cancellation of the policies is considered to be one of the most distressing events of the volcanic crisis (Pattullo 106).
Prior to the volcanic eruptions, the fertile land of the Soufriere Hills region of Montserrat have provided ample economic security for generations.
Photo from http://www.galenfrysinger.co/_caribbean.htm
The government offered some provisions to those who had to evacuate their homes yet were unable to, for various reasons, leave the island. It distributed food vouchers at the onset of the evacuation period, September 1995, and began issuing cheques in 1997. On the cheque system an adult could collect up to EC$120 (Eastern Caribbean Dollar) a month. Children were allowed EC $60. While this compensation alleviated the widespread financial loss, it did not fully sustain anybody.
On January 17, 2000 Montserrat enacted its current social welfare system. The new plan merged two previous plans, the Volcanic Monetary Assistance Programme and the Public Assistance Scheme. Under this new provision, an assessment panel determines applicant eligibility. Families that qualify receive a maximum of $300 EC for household heads and an additional $200 EC for dependent elderly, adult, or child over the age of 12. Children under 12 receive $100 EC monthly. Families with an income less than the funds provided by the welfare system will receive the difference between their income and the benefit. (The Montserrat Reporter). Better social welfare could be provided in the future if the island population were to increase to somewhere between six and eight thousand inhabitants. A larger population would mean better coverage for those that truly need it.
Economic impact on aging Montserratians (Click on quotes to read more):
- “If you were here in those traumatic days…”
- “I’ve lost, tremendously…”
- “And um, they’re too old to start over…”
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