Economic Affairs

Throughout the 1980s the fiscal situation in Antigua and Barbuda exhibited severe weaknesses . Although fiscal measures, mainly for increasing revenue were introduced, demand management measures were not successfully implemented. Thus, inspite of the high average growth rate achieved during the period, fiscal imbalances prevailed.

CARICOM economies are both small and underdeveloped. To separate out the effects of underdevelopment is difficult because institutional dimensions--history and politics, theories and ideologies, social stratification, agriculture and industry, population developments, health and education and so on--which are working parts of economic systems--are not replicable.

It is possible, however, to overcome the effects of underdevelopment by very high rates of capital accumulation (both human and physical) as Singapore has done, Luxembourg with a population of about 400,000 has a per capita income of about U.S. $37,000 which is higher than that of the U.S.A. while Singapore, with about 3 million people has a per capita income of around U.S. $20,000.

OECS Development Charter October, 2002

The OECS economy has maintained an average annual economic growth of approximately 5% in the period 1980 - 1988. This rate far exceeds the performance of most developing countries including the more developed CARICOM countries such as Barbados, Guyana, Jamaica, Trinidad and Tobago. There are two key reasons for this impressive performance. Firstly, there has been a significant shift in concentration of the factors of production from lower productivity or comparative disadvantageous activities, mainly in agriculture, to higher productivity activities such as: tourism, manufacturing, construction and transportation services. Secondly, gross investment as a percentage of GDP was very high (32% to 35%) with the private sector being the engine of growth. The private sector accounted for over 70% of domestic investment with most of the other 30% by the public sector concentrated in economic support projects such as factory buildings, roads and electricity. The private sector investment concentrated in low local value added, labor intensive manufacturing, small hospitality facilities and production support services.

This paper will attempt to analyse the levels of linkages between tourism and the agriculture and manufacturing sectors with the latter also including agro-processing and handicraft. The quantitative data available, enables a
preliminary investigation only. Information gleaned from secondary sources and from other work done within the Economic Affairs Secretariat (EAS) however, allows for some fairly firm conclusions to be drawn and
recommendations to be offered.

Most developing countries in the 1980s exhibited manifestations of four major external shocks suffered in the 1970s. The oil shock in 1973 severely increased petroleum prices and initiated a domino effect in the international economy. For developing countries the consequences were drastic declines in export commodity prices; increasing world interest rates and an abrupt contraction of international capital flows. These external shocks combined with inappropriate economic policies and mismanagement of resources, caused the balance of payments to deteriorate rapidly and inflation to soar. Because the problems experienced by developing countries were not amenable to demand management or short-term stabilization policies, the international donor community was prompted to find a viable solution to the adverse economic conditions.

Content

1)
Political, Legal & Socio-Cultural Context

2) International Business Environment In The OECS

3) Why Invest In The OECS?

4) Targeted Areas For Investment

This report was prepared under contract with the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC). Data used in preparation of this report was obtained from a variety of sources. However, critical data on the number of licences granted to foreigners to acquire land in Tobago prior to 1990 under the Aliens Land Holding Act Chapter 58:02 were not made available for the report despite various attempts by the Consultant and UNECLAC to obtain the information.

Identification of opportunities to generate partnerships and synergies between countries or key stakeholders in the region, which aim to integrate the SDGs.

This report was prepared under contract with the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC). Data used in preparation of this report was obtained from a variety of sources. However, critical data on the number of licences granted to foreigners to acquire land in Tobago prior to 1990 under the Aliens Land Holding Act Chapter 58:02 were not made available for the report despite various attempts by the Consultant and UNECLAC to obtain the information.

Reccomendations & Proceedings of Meeting on Protecting Eastern Caribbean Economies From The Dangers Of Criminal Proceeds, Grenada, July 2000.

On January 14, 1991, the four Windward Islands of Dominica, Grenada, St. Lucia. and St. Vincent and the Grenadines launched an initiative to create a political Union among themselves when they established the Regional Constituent Assembly of the Windward Islands on political union. The Assembly, or RCA as it came to be called, brought together forty-four persons drawn from political parties, the private sector, the churches, women, youth, trade unions and farmers organisations from the four islands of Dominica, Grenada, St. Lucia, and St. Vincent and the Grenadines. The mandate of the Assembly was" (a) "to consider and advise onthe question ofWindward Islands political union with specific reference to the economic and social viability of the union, economic costs of a union and the external relations and administrative implications of the union;" (b) to consider and advise on the possible forms of union, that is, whether the proposed union should be a state which is federal, unitary, or some other form; (c) to consider and advise on the structure of government and elements of a constitution which would be most appropriate to the union, including the administrative and electoral mechanisms."