Profiling Economic Vulnerability and Economic Resilience in Small States – The case of St. Lucia!
June 27, 2008
EDWARD HARRIS AT LARGE!
Profiling Economic Vulnerability and Economic Resilience in Small States – The case of St. Lucia!
I take this opportunity to share with my readers the text of a presentation I made to the participants of a workshop recently.
Text: It is indeed a privilege and a pleasure to be in the company of such a distinguished gathering seeking to find solutions to the challenges that face small and vulnerable States.
I am very pleased to note the work of the Commonwealth Secretariat around the Commonwealth and particularly in our region. This is the second conference I am attending in the past month sponsored by the Commonwealth Secretariat. The first being SME Workshop held on May 27 & 28, 2008. which provided participants with the opportunity to discuss solutions to challenges facing SMEs in the Caribbean.
I wish to commend at the very outset, the Coordinators of this conference for setting out clearly the objectives and general direction of this Conference.
I am humbled by the task given me here this morning to deliver one of two keynote speeches on “Different Aspects of Economic Development in St. Luciaâ€. It will be very easy for me to direct you to the Government’s Website at www.stlucia.gov.lc and suggest that you review the link on Economic & Social Review.
THE PRODUCTIVE SECTORS:
Up to the late 90s, the Banana Industry was the economic mainstay of our island. We awakened to a new reality at the dawn of the first decade of the 21st Century – the challenges of the WTO and a signal from the European Union that preferential treatment of the Windward Islands Bananas will soon be a thing of the past and Open Access would be introduced. We were challenged to heed the call which was echoed for several years to diversify Agriculture and also to diversify our economy.
TOURISM:
We saw less reliance being placed on Agriculture and greater emphasis being placed on Tourism and Manufacturing by our Government. Services became the new Buzz Word. Fortunately for St. Lucia diversification into Tourism came easily. Investors were rushing to the new frontier. The government of the day spared no time in adjusting its Fiscal Incentives Regime to reflect the seriousness of the times. Everything was done to encourage investors, and they came and are still coming. It is significant to note that our local Entrepreneurs were not left behind in the tourism development of our nation. They took advantage of the concessions that were offered and Cricket World Cup 2007 did fuel the expansion of small hotels and guest houses.
The Tourism product has been expanded and this process continues. Our Restaurants, Entertainment Centres, Recreation Facilities, Rain Forest Tours, Water Sports, etc are among the best offerings in the region. Rural communities are getting involved in special events such as St. Lucia Jazz, our annual premier tourism entertainment event. The introduction of Casino Gaming is yet to become reality.
St. Lucia – Simply Beautiful! It is referred to as the Helen of the West Indies. Its rich cultural heritage coupled with our rich natural vegetation continue to lure investors and tourists to our island. We have weathered the storm and kept our course hence the reason our economy has shown some degree of resilience. In business we hear the term LOCATION, LOCATION, LOCATION!!!! St. Lucia is ideally located. So we have the location. What is needed now is PROMOTION, PROMOTION, PROMOTION!!!!
St. Lucia has a World Heritage Site – The Pitons and has been recommended by Oprah Winfrey as one of the top five places to visit in the world. Given such high accolade and recognition, we should be encouraged to push ahead and once again realize the kind of growth as was evidenced in 2006/2007 period. In going forward, we must create a greater sense of pride in our people for our national assets. At all ports of entry and around the island, towering posters of the Pitons should be mounted. A visit to the Pitons should be the one activity of every tourist visiting St. Lucia.
The Tourism sector has a serious challenge on its hands to ensure airlifts into St. Lucia. With a growing stock of rooms and declining air service, urgent attention is needed to attract airlines even in these difficult economic times when routes are being rationalized.
MANUFACTURING:
Our manufacturing sector though it experienced contraction in the 90s, has been expanding in recent years. This is as a direct result of Government’s assistance to the sector supported by local, regional and international agencies offering technical support. The Technical Officers in the Ministry of Trade, Industry, Commerce & Consumer Affairs and the Office of Private Sector Relations, OPSR through a programme of assistance from the European Union have been of immense help to manufacturers. At the regional level, Caribbean Export based in Barbados, OECS – Export Development Unit in Dominica and several international Agencies contributed to the development of this sector.
Our manufacturers have availed themselves to international standards of certification to enable them to compete effectively in the global market place. Today, St. Lucia boasts of having World Class Manufacturers with ISO 9000 and other Industry Certification. The sector is supported by a strong Association. The St. Lucia Manufacturers Association which is in its 7th year and it has made a difference in getting Government to enter into a partnership with manufacturers to ensure the expansion of the sector. The BUY LOCAL CAMPAIGN is one such area of collaboration. Government has moved to ensure that local manufacturers’ products be purchased by all its agencies.
MICRO, SMALL & MEDIUM ENTERPRISES SECTOR (MSME):
It is generally accepted that this sector consists of 85% of all the businesses in the private sector.
TECHNICAL & PROFESSIONAL SERVICES:
There is a great demand for services in this category at the local level. However, in recent times, the export of services has been pursued with much success.
CONSTRUCTION SECTOR: The many construction sites are evidence of progress and hope for the economy. Building on the momentum since 2005, the construction sector continues to show signs of further expansion. Real estate upscale developments are springing up around us almost daily. This is testimony to the fact that St. Lucia is still an attractive destination for direct foreign investment.
CHALLENGES:
Challenges will always present themselves and if we are weak hearted, we will be diverted from our path to progress and prosperity. The statistics have revealed that from a growth rate of 4.9 percent in 2006, preliminary estimates indicate that real economic growth decelerated to 0.5 percent in 2007. However, tourism and construction came to the rescue. While we were savouring the successes of the years 2006 & 2007, we were suddenly interrupted by the rise in Oil Prices. From the moment the price reached US$97.00 per barrel, the good times were over Countries throughout the region and the rest of the world are facing the effects of the phenomenal rise in fuel prices. The increases have admittedly caused its fair share of troubles for St. Lucia. The deteriorating external environment will continue to impact on the pace of activity in the domestic economy. High and rising world oil and commodity prices, particularly food prices, present some economic challenges and uncertainty. However, it is reasonable to suggest that this too shall pass.
THE WAY FORWARD:
As we seek to find sustainable solutions to our impending economic crisis it is time to take bold initiatives that are consistent with the direction of the world economy. There has been a lot of talk about knowledge based economy, the strides of countries like Singapore and other Asian countries are constantly being alluded to. Apart from the visits made by our leaders to those countries, what have they taken away from them? While I continue to hear about Singapore, Ireland has come off the radar. But there are many excellent examples that we are yet to take note of. What are we waiting for?
It is disheartening to me that in the OECS, none of the States has taken the lead to establish a platform of Innovation & Technology with the establishment of a Ministry or a Secretariat which will become the driver for utilizing the creative skills of our young people and provide opportunity for diversifying the businesses/investments of Entrepreneurs. Our best chances to expand our economy are in the areas of Innovation, Technology, Research & Development, Real Estate, Technical & Professional Services and Financial Services.
Based on the economic trends that are currently evolving in St. Lucia, massive and immediate action will have to be taken to replace rhetoric with action. We should take cognizance of the challenges imposed by the current processes of globalization and the resulting marginalization of Small Island Developing States. The vulnerability of St. Lucia’s economy must be taken into consideration and it is against this background that it is desirable that the Government provides strong leadership that embraces Good Governance, Transparency and Accountability with a strong bias towards providing an enabling environment for businesses.
Let us show the investors of the world that St. Lucia is serious and ready to attract Investors to our shores, and that we are prepared to meet the challenges head on that are imposed upon us and not just be content with playing the blame game.
CONCLUSION:
As the old saying goes “The race is not only for the swift but for those who endure to the end. How we tackle our opportunities now will determine the pace of the recovery of the economy. We have to be proactive and not reactivate as we tend to be. The turbulence in the banana industry is truly a wake up call. A contingency (back up) plan should always be in place. We must never be overly dependent upon any single industry. Let us move away from heavy dependency in one area and concentrate on diversifying our economic base.
We are indeed a fortunate nation in many aspects. We are in a better position than most of our sister islands. Investors from all around the world are desperate for a piece of the action. Giving up is not an option. The good performance of the economy will have many benefits and we should all be excited about the prospects.
We have survived where others have crumbled. We have shown courage when others were afraid, we have opened our doors when others were closed, we have shown our strengths and we should not fail to capitalize on them. We have found niches in the past, we can do so again.
The CSR National Workshop was a resounding success and the task now at hand is for those who received the training to pass it on to businesspersons in their communities. Workshops are already being discussed for Soufriere and Vieux Fort. Local Trainers are Yvonne Agard, Martin Satney and Edward Harris. A National Steering Committee was established. The following persons volunteered: Cornie Marius, Shaun Cypal, Elizabeth Rose, Bernez Khodra, Hannah Forde, and Cheryl Skeete. The three Trainers will also serve on the committee.
Hereunder is my selected quote for the week.
MOST SUCCESSFUL PEOPLE ARE DREAMERS
Your dreams are your visions of where you’ll be after the battle,
your prize at the end of your journey to success. Your goals are the steps you take to finally attain your prize.
Unless you’re willing to work hard and establish some discipline in your life, all of your dreams will be pipe dreams,
little mental fantasy trips that will never materialize.
Make concrete steps toward fulfilling your ultimate dream,
and start with solid objectives called goals,
Your dreams are where you want to go,
your goals are how you get there.
The first indispensable step
to getting the things you want out of life is this:
decide what you want.
Don’t be afraid to think big and dare to be great.
Dreamers are not content with mediocrity.
They never dream of going half way.
People with goals succeed because they know where they’re going.
Copyright 2008 www.yourdailymotivation.com
“Keep the Faith, God is in Charge, Dream Big and Expect Miracles everyday! May God bless us all.
Edward Harris
Biblicist, Freelance Journalist, Author, Business & PR Consultant, Realtor, Sales & Marketing Specialist, Networker, Private Sector Advocate, Motivational Speaker
Email: eaharrisdestiny@gmail.com
Websites: http://www.Edwardharris.ws http://www.stluciasimplybeautiful.com http://www.stluciarealtors.com http://EdwardHarris.myvisalus.com