Tuesday, April 11, 2006

by Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: The Suriname government will put forward new initiatives to increase industrial production, following the signing of a US$4 million loan agreement with the Inter-American Development Bank (IDB).

During his address on Tuesday at the annual meeting of the Governors of the IDB, Finance Minister Humphrey Hildenberg announced there are few manufacturing companies in the country and the Venetiaan administration is taking measure to improve the situation.

At the meeting held in Belo Horizonte, Brazil, the minister signed the US$4 million loan agreement with the IDB to improve Suriname’s technical and institutional capacity to formulate, negotiate and implement trade policy and related agreements.

The IDB loan term is 20 years, with a 42-month grace period and variable interest rates.

The program will strengthen the capacity of the Ministry of Trade and Industry to lead, coordinate, and support the trade policy making process as well as establish effective mechanisms for consulting relevant government agencies and the private sector.

In his address, Hildenberg said that the Bank’s assistance prepares Suriname to face the challenges and execute the policies set out by the government.

Since the country’s small-scale economy is heavily influenced by internal and external developments, the government enacted a stabilization fund to reserve a portion of national income during times when world market prices are favorable.

When market prices decline, the government will use this fund for stabilization purposes, according to the Finance Minister. The Stabilization Fund would also be used for diversification of the industrial sector.

With the IDB’s support, the government also aims to develop more natural resources.

Suriname’s participation in the CARICOM Single Market and in the Single Economy in 2008 is a demonstration that the country is trying to improve its position in the region, stated Hildenberg.

“Suriname could function as a bridge between the Caribbean and South America. Therefore an infrastructure should be in place to facilitate an easier movement of people, goods and services,” he said.

He further argued that investments of the private sector in infrastructure and advanced technology will improve the competitiveness of the region.

The IDB loan to Suriname will also finance the establishment of an effective information and communications system to support the trade policy making process and provide training and technical assistance to enhance the capability of human resources in trade-related public and private sector institutions.

In addition, specific activities in the program will help specialized institutions address sector issues concerning trade in agriculture, sanitary and phytosanitary standards as well as intellectual property. A Bureau of Standards will be established as part of the program.

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