Nevis, West Indies. ?A Non-Tourist-Trap? Blog About Nevis.

ECLAC Headquarters - Santiago, Chile

Basseterre,St.Kitts - Nevis
People’s Action Movement
February 25th 2010

The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has released a report which vindicates the warnings given by the People’s Action Movement . As the global economic crisis ravaged the entire world the electorate in St. Kitts and Nevis were continually told by government officials that our economy had grown and we had been spared the worst of the crisis.

“For months leading up to the elections we were constantly bombarded with news items and releases as well as statements from the government press secretariat basically stating that  we had dodged a bullet, that we had another surplus, that unlike anywhere else our economy had grown,” said People’s Action Movement MP Hon. Eugene Hamilton. “This report, which comes from an impartial and respected regional and international organization, has clearly shown that our government have been grossly misleading us when we are told by them time and time again that our country is doing well and has weathered the global economic crisis storm ,” Hamilton continued  

MP Hamilton further said, “This story coming from this Labour government made no sense to anyone with even a little common sense as residents had to contend with an increasing cost of living while services continued to worsen,”

Local experts have been expressing concern that the government had been giving an inaccurate and misleading  view of the economic state of the Federation.

Prime Minister Douglas in his New Years address was quoted as saying, “we have overcome crisis after crisis and have kept our country on a path of growth and development.”

The ECLAC report has contradicted the statements of Prime Minister Douglas as a negative -8.0% growth was recorded for St.Kitts-Nevis in 2009 which is second to last in CARICOM.

Only Antigua and Barbuda, with a negative growth of -8.5% had a worse economic performance in 2009 than St. Kitts and Nevis. If this is closely examined a startling picture emerges. Antigua suffered a major bank collapse last year as well as the loss of a number of  cruise lines and this among a plethora of other factors, led to their inability to pay salaries in some months. St. Kitts did not suffer such systemic shocks, at least not that the public has been informed, but still Antigua managed to end up only marginally worse off than St. Kitts.

The state of the catastrophic National Debt is public knowledge but this cannot be the only cause of the shockingly poor performance of the economic policies of Dr. Douglas. Just like the collapse of the Bank of Antigua caught everyone by surprise but had to show signs of severe weakness it stands to reason that there is already evidence of similar strain on our own institutions. The Labour government has borrowed significant sums from Social Security and there is also a significant overdraft at National Bank and in a crude campaign bribe paid the first double salary in a decade last December. Now we must wonder where that money came from.

The façade is slipping and the emptiness that this government has been camouflaging as economic growth is being exposed. This puts the unprecedented delay of the budget in a new and worrying light.

The United Nations Economic Commission for Latin America and the Caribbean (UNECLAC or ECLAC) was established in 1948 (then as the UN Economic Commission for Latin America, or UNECLA) to encourage economic cooperation among its member states. In 1984, a resolution was passed to include the countries of the Caribbean in the name. It is one of five regional commissions under the administrative direction of United Nations headquarters. The ECLAC has 44 member States and eight non-independent territories in the Caribbean, and reports to the UN Economic and Social Council (ECOSOC). As well as countries in Latin America and the Caribbean, it includes Canada, France, Germany, the Netherlands, Portugal, Spain, Italy, the United Kingdom, the United States, Japan and South Korea.

Related posts:

1. Caribbean Economic Growth To Slow In 2008
2. Nevis records strong growth in tourism in 2005
3. Nevis Still Ranked #51 In UN Human Development Report
4. St. Kitts - Nevis Expects Growth In Manufacturing Sector
5. Good Economic Growth In St. Kitts and Nevis

Minister Harris Speaking About The Economy

Basseterre, St. Kitts - Nevis
January 20, 2009

A report, issued by the Fiscal Division of the Ministry of Finance concerning the outcomes of the Government’s financial programme, has indicated that, “For the period January to November 2009, fiscal surpluses were recorded for the Recurrent Account, Overall and Primary Balances. These surpluses performed above what was expected for the period and surpassed the results of the previous year’s period.”

Further, the report went on to state that “A Recurrent Account surplus of $10.3 m was achieved for the period January to November 2009, as Recurrent Revenue of $395.7m exceeded Recurrent Expenditure of $385.4 m. This surplus surpassed the expected amount by $4.3 m or 71.2 % and the corresponding period in 2008 by $23.5 m or 177.8%.”

Dated January 2010, the report also spoke to the positive result of the Overall Balance for the first eleven months of 2009, which “amounted to $42.9 m, exceeding expectations by $18.3 m or 74.5% and the previous year’s surplus of $7.0 m by $35.9 m or 509.1%.” 

In reference to the outcome of the Primary Balance, the report indicated that “The Primary Balance, which totalled $140.6 m, also reflected improved performances for the period. A positive variance of $0.8 m or 0.5% was exhibited when compared to the projected figure of $139.8 m. In addition, the Primary Balance Surplus grew by $32.9 m or 30.6% when compared to the corresponding period of 2008, when a surplus of $107.7 m was recorded.”

These outstanding results were also revealed at a huge Labour Party Election Campaign Rally at Warner Park on Saturday, 16th January 2010, by Dr the Hon Timothy Harris – Minister of Finance and Parliamentary Representative for the Electoral District of St. Christopher 7 for the past 16 years.

Dr. Harris highlighted and praised these excellent, significant and impressive performances in the fiscal operations of the Government, as being attributable, in large measure, to the competence and astuteness of the Labour Party Administration, which has clearly demonstrated that it has capable hands in serious times.

Related posts:

1. St. Kitts - Nevis Delivers Outstanding Fiscal Performance
2. 1st Quarter Economic Performance Good For St. Kitts - Nevis
3. St. Kitts - Nevis records EC $19.1 Million Surplus In 2007
4. St. Kitts - Nevis Projects An Fiscal Surplus Of EC$39 Million
5. IMF Advocates Strong Fiscal & Debt Management Policies

“We have delivered,” says PM Douglas

Basseterre, St. Kitts - Nevis
January 20, 2010 (CUOPM)

Prime Minister Hon. Dr. Denzil L. Douglas said Tuesday that the issue is one that the opposition seems to think it can gain political mileage.

 “It is important for me to state that St. Kitts and Nevis has never missed any payments on the national debt under Labour.  This is very important.  Many countries owe less, but are repeatedly unable to service their debt,” said Dr. Douglas, who added that the debt to GDP ratio is steadily moving down, and that, too, is the result of sound economic management.

“Most importantly, however, it is important for us to remember that the national debt is not some inexplicable liability that has no commensurate assets associated with it,” said the Prime Minister.

He said that St. Kitts and Nevis has one of the most advanced profiles in the area of infrastructure development in the region – the health centers and hospitals; the educational facilities; the road and highways and bridges; the infrastructural expansions that we need both to attract dramatically expanded airlift, as well as to accommodate a rapidly expanding tourism sector.  It is also important to remember that one needs a modern and advanced infrastructural network in order to attract investment of any kind – tourism or non-tourism – investments that create jobs and expanded opportunities for local entrepreneurs.

“It is precisely because of this infrastructural development, therefore, in other words, that we have been able so successful at attracting capital,” said the Prime Minister.

He said it is because of this infrastructural development that the private sector in St. Kitts and Nevis has been able to repeatedly outperform regional neighbours on such metrics as exports to the US and cruise expenditures.

“Neither hospitals, roads, nor any other infrastructural advances can be acquired simply by wishing for them.  They must be planned for.  They must be carefully negotiated.  And then, they must be paid for,” said the St. Kitts and Nevis leader.

Dr. Douglas stated that all other things being equal, the family that owns a house is carrying a far greater debt load than the family that does not.

“It also true, however, that that family also has collateral with which to acquire more capital.  It has an appreciating asset that makes intergenerational economic security possible.  It has, in a nutshell, more options, more opportunities, more security.  Similarly, the debt that this nation has acquired has expanded our options, as well.  It has provided more opportunities for our people – and will continue to do so for generations to come.  And it has resulted in the type of national assets that undergird our nation’s long-term security,” said Prime Minister Douglas.

“I was born into a poor family, Webber.  Through hard work, I was able to secure a solid education, and that in turn enabled me to chart a secure future.  This is what my cabinet and I want for every young person in this country.  And this is not mere platitudes.  Every politician in every corner of the globe says this.  But the facts speak for themselves where this Labour Government is concerned.  My Government has produced more scholarships, and more loans, for more students - rich and poor, rural and urban, Labour, PAM, and everyone else -  than any other government in the history of this nation.  We have sought foreign investors to establish the type of large scale projects that cannot be capitalized locally, so that bright and energetic entrepreneurs and professionals would be able to partake in these massive projects, therefore propelling themselves, their families, and our nation forward.  We have opened up and expanded the media so that all can debate, and discuss, and project, and protest – and praise, as well – to their hearts content,” said the Labour Party leader.

He said his St. Kitts-Nevis Labour Party is committed to “constructive change, positive change, meaningful change. And the facts will show that we have delivered.”

Dr. Douglas said the St. Kitts-Nevis Labour Party is honoured to have been elected by the people of St. Kitts and Nevis to chart this nation’s way forward. 

“We have come a great distance, but we are not yet done.  I therefore ask that the voters grant us the honor of continuing the outstanding work that is currently underway.  And I ask, in a spirit of humility and gratitude, that they do this by voting Labour on January 25, 2010,” he concluded in his opening statement.

Related posts:

1. Fixing Labour’s Crushing National Debt
2. St. Kitts - Nevis’ Public Debt On The Decline
3. Government Contributing To Rapidly Growing National Debt
4. St. Kitts - Nevis To Re-finance Short Term Debt
5. St. Kitts - Nevis National Economic Meeting 2008