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AN ALTERNATIVE TO THE 5% PAYCUT

By in Print

The need to deal with the fiscal deficit has forced the Government of St. Lucia to consider the unpalatable dose of a five percent pay cut for public servants. The economists are still not sure that such moves by the largest employer in small island economies actually do work. I also have my doubts. I read with interest, an article in BBC News Magazine which reported that a famous academic paper often used to make a case for austerity cuts contained major errors. In January 2010 Professor Carmen Reinhart and former chief economist at the IMF, Ken Rogoff presented a research paper entitled – Growth in a Time of Debt. The paper provided academic support to their conclusion that when the size of a country’s debt rises above 90% then economic growth slows dramatically. The article then introduces Thomas Herndon, a young graduate student at the University of Massachusetts, who took as his...

DEBT TRAP OR PONZI SCHEME – THE OECS ECONOMIES

By in Print

I listening with interest to an very irate Customs Officer expressing his disgust that he will be losing five percent of his hard earned income to finance Carnival revelry. He stated that Carnival is a business and he could not come to terms with the Government making a case for the removal of the subsidy on sugar and then giving duty free concessions and $ 1.1 million dollars to Carnival. He posited – Why should I contribute to these Band owners plunder? There is undoubtedly a need for a pre-frontal discourse on the debt situation of St. Lucia, and the conversation has to honest and factual. During the Small States Biennial Conference of the Commonwealth Secretariat held at Malborough House in July 2010, Ms Samantha Attridge presented a paper entitled ” Dealing with the Looming Debt Crisis of Commonwealth Small Vulnerable Economies”, It is an excellent analysis of...

THE NORTH COAST ROAD – A MYTH?

By in Print

The North Coast Road has been spoken of over the last ten years as an alternative route to the Barre D’Isle. Yet the conversation has never been supported by any sound economic or engineering basis for its pursuance. Are the merits of this road a myth? Over the last 25 years I have been involved in the development of infrastructure in St. Lucia in the capacity of Chief Engineer on the side of the Employer, as a Contractor for local firms, however never been blessed to be part of the chosen few to do consultancy work for the Ministry. My involvement in the development of the Millennium Highway was a valuable lesson in understanding the interface of infrastructure and economic development. In 1992, there was a thrust by Sir John to link Castries with Cul deSac, Sir John rightfully believed that the Morne Road was an obstacle to the development of Castries and that there was need to link...

ECONOMIC CITIZENSHIP – AN ALTERNATIVE DEVELOPMENT POLICY FOR ST LUCIA?

By in Print

The Governments of the Caribbean have a proclivity to adopt policies from large and more industrialized countries and attempt to implement these policies often with startling failure. There are distinct differences in the economy of a small island state and I continue to preach that there is need for our regional learning institutions to embrace their responsibility to become functional within our societies by engaging in relevant research. The Citizenship by Investment Programme has become the latest move to improve the fiscal position of OECS states. Let me say from the onset that there should be a common OECS position on this policy. You cannot have one country asking for $ 1.0 million and another asking for $ 300,000 XCD when you are in a common Economic space. In fact I would suggest that 10% of all Citizenship by Investment income in these OECS states should go to the OECS...

ON ST LUCIA (1)

By in Print, Quotes

The volunteerism has become a hallmark of the culture of St. Lucia. Unfortunately, while I have seen the wonderful work of the volunteers, I have also unmasked the “vultures’’ dressed as doves, with the sole intent on engaging in a feeding frenzy.

— After Tomas - What Next? (2010)