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 Secretariat, so that is a degree of balancing in the process.
I would wish to submit a complementary proposal based on the concept of a Tacit- Knowledge economy. In an article entitled The Tacit Knowledge Economy, Richard Hausman stated the following:
‘’ The bottom line is that urbanization, schooling, and Internet access are woefully insufficient to transmit effectively the tacit knowledge required to be productive. That is why today’s emerging markets are so much less productive than rich countries were in 1960, even though the latter were less urban, had higher birth rates and less formal schooling, and used much older technologies.
The policy implications are clear. Knowhow resides in brains, and emerging and developing countries should focus on attracting them, instead of erecting barriers to skilled immigration. They should tap into their diasporas, attract foreign direct investment in new areas, and acquire foreign firms if possible. Knowledge moves when people do’- Richard Hausman – The Tacit – Knowledge Economy.
The Author of the article made the point that the USA would not have been able to build the first atomic bomb in just 4 years had Hitler not encouraged so many key scientists to leave Europe. The OECS should thus structure their Citizenship by Investment to one which encourages the movement of tacit knowledge. Tacit knowledge is acquired mostly through learning by doing. This is how musicians barbers, seamstresses, doctors, scientists, computer technicians etc learn.
We have an education system that is geared towards the creation of regurgitators of information; there is no development of tacit knowledge. Three thousand school children will leave school next month and most have only mastered the wonders of Facebook with their new computers given by the Government. Can you imagine if they had been taught to develop an app and they are released into the marketplace with that skill suited for export? You cannot create a sustainable economy by Facebook aficionados.
Your Citizenship by Investment policy has to be linked to your productive sectors. It should be focused on stimulating the economy and not just a source of direct income to support a country’s budget. For example an investor in a condo –hotel costing over $ 500,000 USD should be given permanent residence then citizenship. This investment increases your hotel stock, impacts upon your construction sector, and there is the continued maintenance which creates additional activity. Those who have special skills – Tacit knowledge, should be also included in the Programme.
We need to create an environment to attract the best minds from our diaspora and beyond. The specific activity we should target is medicine. We have spent close to $ 500 million XCD in the last 10 years in the development of health facilities in the island. We have a new National Hospital, a new St Jude’s Hospital and a new National Wellness Centre as well as Victoria Hospital.
We have at least four medical schools on the island. We need to harness this resource by attracting the best medical minds to set up a practice in St. Lucia. Let St. Lucia be known to have world class surgeons, cardiologists and dermatologists.
In summary I support a policy of economic citizenship that is linked to the economy, I do not support a policy where there is a one off payment of a sum to the Government to support its budget and be spent in social programmes. I also believe there should be a path to citizenship which starts with immediate permanent residency and a movement to citizenship within two years. I also believe we must move to a tacit knowledge economy by attracting the best brains to our island.