Letter: Economy, power, politics and war - Part Two
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| Published on Tuesday, November 24, 2009 |
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Dear Sir:
As the people of the tri-island state of Grenada, Carriacou and Petite Martinique grapple with the daily pressures of life as a result of the world's difficult economic situation and state of the national economy the Tillman Thomas-led NDC administration is making every effort to provide the people with a decent standard of living.
The challenges faced by the government is enormous and it will take prudent management, commitment ,dedication and strong leadership by all concern especially the Hon Prime Minister Tillman Thomas and the Minister of Finance Hon Nazim Burke to arrest the situation.
There are numerous factors apart from the world's economic recession that is responsible for our economic situation. A synopsis of these factors include:
1. A national debt of 1.8 billion dollars. For a small country like Grenada this is an extremely high figure. The national debt is as result of thirteen years of massive spending by the previous government.
2. Minimal investment in the productive sector: For thirteen years the economy of Grenada could have been consider a cosmetic economy. Despite the massive spending very little monies were invested in the productive sector. I was rather shocked to hear the leader of the opposition boasting of his previous government's investment in the productive sector. Manufacturing, agriculture and agro - industries were virtually neglected. Instead of investments in the productive sector of the economy the NNP administration engaged in programs geared at making the population dependent on government. It is the obligation of Government to assist the poor and vulnerable, however when 37% of a country's population is poor and indigent then it's a major problem and a burden on the island's economy.
3. Wastage of Public Funds on Political White Elephant Projects: One hundred and fifty-nine (159) million dollars were wasted on the first national stadium. Twelve (12) million on two desalination plants in Carriacou and another three (3) million on the vendors market. Millions spent on building materials primarily for party supporters. To date many poor families can't afford to build a house and the plywood are just left to the mercy of the elements to rot.
4. Millions spent on court cases: Millions of dollars were spent in the courts in London and New York to defend Ministers of government. Millions spent in legal fees defending for the Dipcon case.
5. Collapse of the offshore banking sector and other financial institutions including Cap Bank and SGL. The scandal involving FIGB where millions of investors monies were swindled resulted in Grenada been blacklisted and the subsequent collapse of the lucrative offshore banking sector. To make a bad situation worst Grenada witness the collapse of the unregulated local bank Cap Bank and the trading scheme SGL. Millions of investors dollars were lost. Recently there is the problem with British American Insurance / Clico.
6. Failure of Government to attract Foreign Direct Investment. The investment by reputable foreign companies is critical for the growth and development of the country. Increase direct foreign investment results in greater employment opportunities for our people. and increase revenue due to taxes paid to government. Government must ensure that the business environment is conducive to attract credible foreign investors ensuring that the country get the necessary returns on the investments. It is crucial that the new administration work with potential investors both local and foreign to look at the possibility of developing sustainable business aim at improving the national economy and creating employment opportunities for our young people.
7. Failure of Government to invest in the Productive Sectors of the Economy: Apart from these factors there are many other including the many shady deals and concessions given to crooks and con men with drained our treasury.Most of these deals were not in the best long term interest of the country but was primarily for political expediency. Our economic problems were further compounded by the wreck less spending in the weeks and months leading up to the July 8th general elections.
World Economic Recession:
Having to deal with an already sluggish economy inherited from the previous administration, the new Tillman Thomas NDC administration have to deal with the world's worst economic recession in many decades. The collapse of the world leading financial institutions and the economic recession that the major world powers experienced have had a severe effect on our economy.
There is an old saying that when America sneezes the rest of the world catches a cold. Grenada didn't just caught a cold, but has been suffering from tuberculosis for many, many years. I can recall a notable Grenadian business warning of our dire economic situation years before the world's economic recession. He was at the time advocating for a much fairer tax regime.
The current world economic recession is affecting the Grenadian economy in the following ways:
a. Drastic reduction in the amount of remittances coming from the diaspora. This monies are very critical to our national economy.
b. Decline in Tourism Industry : The tourism industry has been the main contributor to our national economy. As the recession take its toll on the develop countries namely America and Europe the amount of visitors to our country decrease.
c. Decline in Foreign Investment and Foreign Trade: Many foreign investments that were on the front burner has been put on hold due to the fact that the investors can't attract funding for their project. As a result of the decline in foreign trade the revenues generated at the ports have dropped drastically increasing the challenges faced by the economy.
d. Slowing of the Construction Industry: This industry provides thousands of job opportunities for our young male population. As a result of the worldwide economic recession the construction boom slowed resulting in layoff of many construction workers in the private sector. Apart from that most of the capital projects in the 2009-10 budget had to be put on hold because of the lack of funds.
e. Reduction in Consumer spending: As funds dry up the and the cost of living rises, the spending power of consumers declined. The circulation on monies within the economic slowed.
These and many other economic indicators continue to negatively affect the Grenadian economy. Government will have to continue to fine creative ways to keep the economy afloat.
As the economic recession cease and things begin to return to normal the new NDC administration will have to ensure that the productive sectors of the economy reach their true potential. Government will have to make every effort to reduce the unemployment rate and alleviate poverty especially among the rural community.
The opposition parties, NGO's, civil society and the private sector all has a responsibility to the people to ensure that they ride out the recession. This is not the time to play politics with every trivial thing that happen in the country. Grenada, Carriacou and Petite Martinique is still one of the most blessed country in the world. Apart from the occasional crime and violence the country is extremely stable and peaceful.
The time for the politics will come but now is the time for belt tightening, analysis and creative planning. The country has just gone through an election cycle and therefore as a people we must unite and work together for the benefit of all. We should realise by know that when the people fail the country will fail. The gap between rich and poor continues to widen and it all because of the politics. Our less fortunate citizens must be made to understand that their economic situation will only change for the better by obtaining a decent education, hard work and dedication. The exploitation of poor people must come to an end. With a population of just about 100,000 people there is know reason why there should be 37,000 of our citizens poor and indigent.
The opposition shouldn't just criticise for criticism sake , but it's criticism must be constructive and engaging. At the same time the Government should reach out to the opposition on issues of national importance. The people must be kept in the loop always. Government is about people and as such the voice of the people must be heard. Notice I didn't say the detractors.
The private sector must be commended for the sacrifices that they are making by absorbing some loses and keeping their staff employed. Employees must in turn reciprocate and increase their productivity level. The trade unions must also be commended for exercising patience for increase salaries for their members in these difficult economic times.
It is in time of these that some uncaring politicians use their energies to gain political mileage on the administration in office forgetting that they to have a responsibility to the suffering citizens. Politics again. It is for this and other reasons that politics is seen in some circles as a game , and that politics is corrupt. While politics may be a game the lives of our people is know game. The well being of every citizen is of paramount importance.We have gone through rough times before and emerged stronger. This period is no exception. Grenada , Carriacou and Petite Martinique will prevail.
Foxy Stewart | | | | Reads : 755 | | | |
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