THE QUEST TO BUILD A MODERN, COMPETITIVE,  MANY-SIDED, POST-COLONIAL ECONOMY PART 2

THE QUEST TO BUILD A MODERN, COMPETITIVE,  MANY-SIDED, POST-COLONIAL ECONOMY WHICH IS AT ONCE NATIONAL, REGIONAL AND GLOBAL

 BY

 RALPH E. GONSALVES

PRIME MINISTER OF ST. VINCENT AND THE GRENADINES

CHALLENGES TO THE STRATEGIC ECONOMIC QUEST

By 2008, an array of challenges emerged to the strategic economic quest, namely: The virtual complete dismantling of the market preferences for bananas in the United Kingdom; the worst global economic depression for 80 years which severely battered these island economies; and the sharp rise in oil prices on the world market in July 2008 to US $148 per barrel, up from under US $30 in 2001.

In the midst of all this, the regional financial giant CL Financial of Trinidad and Tobago fell apart and in its wake the insurance behemoths, CLICO and BAICO, collapsed occasioning liabilities in St. Vincent and the Grenadines (and the countries of the Eastern Caribbean Currency Union – ECCU) of 17 percent of GDP; the ravages of climate change impacted the Caribbean, causing in St. Vincent and the Grenadines damage and loss of some EC $700 million or about 17 percent of GDP; the weakening of indigenous banks in the ECCU (capital inadequacy, liquidity problems, non-performing loans, problematic risk and credit management) took its toll; and external political and economic instability had adverse knock-on effects on our economy and those of the region.

The aggregate of these fundament external challenges occasioned deleterious effects on the fiscal and debt situation of central governments in the ECCU at precisely the time when they needed to build economic and social resilience, and to reform their economies.  In the case of St. Vincent and the Grenadines, the government had to build a jet airport on Canouan and an international airport on St. Vincent, expend millions of dollars on the Education Revolution and the social sector, spend huge sums of money on re-orienting the economy, (expend monies on a reclassification exercise in the public service to assist in delivering better public management and administration.

We have managed this economic crisis better than most; the records show it. We insisted then, and still do now, that austerity is for St. Vincent and the Grenadines a wrong and dangerous idea.  Our fiscal policy has been grounded on prudence and enterprise.

Despite the awesome challenges, St. Vincent and the Grenadines was able between 2008 and 2010 to contain economic contraction to 5 percent of GDP; by 2015, economic output had returned to pre-2008 levels.

 Since 2011, St. Vincent and the Grenadines has experienced annually low-to-modest economic growth as it transitions to self-sustaining development grounded in an increasingly service-oriented economy though with a diversified commodity production in agriculture, animal husbandry, manufacturing, and fisheries.  At the same time, the country has executed major capital projects (including the Argyle International Airport); strengthened markedly the social sector, including education, health, poverty reduction, and social security; and maintained and enhanced law, order, and good governance.

 Through an admixture of prudence, enterprise, and debt relief, the fiscal situation has been stable and the public sector, debt level manageable at 72 percent of GDP.

CONSTRUCTING THE PILLARS OF THE STRATEGY

On the ground, by 2018, we witness the pillars of the strategic economic quest being constructed for now and the future:

1. The practical elaboration, consolidation, and expansion of the many-sided Education Revolution;

2. The completion and operation of the jet airport and the international airport;

3. The active pursuance of renewable energy (geothermal, solar, hydro);

4. The expansion of the tourism sector (hotel construction and/or expansion at Canouan, Union Island, Mayreau, PSV, Bequia, Mustique, Buccament, Peters’ Hope, Mt. Wynne, and other areas on St. Vincent); also, developments in cruise and yacht tourism;

5. Further developments in agriculture especially bananas, cocoa, coffee, coconuts, ground provisions, fruit and vegetables; and livestock improvement;

6. Fisheries development: Infrastructure and management developments at Kingstown, Owia, and Bequia Fisheries Centres; the proposed multi-million dollar Rainforest Seafoods Packaging plant at Calliaqua; and the proposed purchase of three trawlers through the state-owned inputs Warehouse Company;

7. Medical Training: Four off-shore medical schools in St. Vincent and Grenadines with over 1,200 students, and expanding;

8. The proposed Medical Cannabis industry;

9. The imminent build-out of a job-focussed Call Centre;

10. The practical elaboration of transformative capital projects by the government:

• The imminent opening of two Polyclinics (Mespo and Buccament) and the Modern Medical Complex) Georgetown, following the refurbishment of MCMH and the build-out of the huge collaboration with the World Pediatric Project; the Stubbs Polyclinic, and the rebuilt Mental Health Centre;

• The on-going real plans for the City at Arnos Vale, including the anchor project of the Acute referral Hospital;

• The actual, on-going plans for the Modern Port towards the Western end of Kingstown;

• A multi-million dollar road repair and reconstruction programme;

• A reforestation programme; and

• The expansion of the Housing Development programme.

11. Building cultural industries;

12. The strengthening of citizen security, including beefing up the Police Force and Coast Guard;

13. The enhancing of the managerial and public administrative systems in the state administration; and

14. Building a more efficacious regional and foreign policy aligned to our economic interests.

Meanwhile, there is a series of ongoing targeted socio-economic interventions to improve people’s lives, living, and production.

SUMMATION

It is realized that in the construction of modern, competitive, many-sided post-colonial economy, there will inevitably be unevenness in the combined development of the economy.

Ongoing correctives would thus be made to the strategic implementation of the process and the details therein, as the circumstances admit.  Always, the people’s interest will be paramount as is emphasized in our government’s people-centred version.

 This strategic economic quest is being built at the same time as cross-cutting developments are occurring in the spheres of political democracy and transparency, social equity and pronounced poverty reduction, and in the further enhancement of the bases and manifestations of our Caribbean civilisation, and its Vincentian component.

Undoubtedly, my government has on offer a compelling developmental narrative for the present and the future, building sensibly and practically on its monumental achievements, thus far!

The simple truth is that there is no other credible alternative path elaborated or available but that which is articulated, in theory and practice, by the ULP.  Our case is thus re-stated for our people’s continued support.

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