fp Turks and Caicos

Since it took over governance of the Turks and Caicos Islands in 2009, the interim administration has received repeated criticism, being blamed for not doing enough to attract inward investment and projects that could potentially stimulate the local economy.

This week government published a Green Paper on Economic Development which focused primarily on asking the question, “What is the TCI prepared to do to attract just that kind of investment?”

The paper, drafted by the Strategic Planning and Policy Unit team in the Ministry of Finance, is intended to kick off an important public consultation on the future economic development strategy for the TCI, the government said in a June 25 press statement.

“The Green Paper recognises that the TCI has real potential for economic growth,” said His Excellency the Gov. Ric Todd. “It also recognises too that in order to achieve and maximise this growth the way that things have traditionally been done here may need to change; these issues require public debate.”

The paper first recognized the positives of the TCI — English speaking; stable, safe and friendly; uses the U.S. dollar; has a growing economy; has many top class businesses; and is a relatively short flight away from the North and South American markets. It points out that all these have lead to a tourism heavy local economy, which was hit hard by the world economic crisis which began in 2009.

The Green Paper discusses options for a new Development Strategy for the coming four years. It intends to update earlier plans, making adjustments for the national and global recession and focus on further reform to be considered for adoption by the next locally elected government.

The economic strategy is intended to provide the framework for future budget formulation and is also required by the country’s international creditors and donors as a means by which government can demonstrate that it is preparing a rational approach to managing economic development.

Governor Todd says while the economy is in much better shape now that it was when the interim administration took over in 2009, he recognises that not everyone on the islands may not feel or be benefitting from these improvements.

“That is why it is important to begin a thoughtful stock take of what economic policy direction the people of the Islands want to take in the future,” he said. “The question is, while we are doing significantly better now, what are the things that are holding the economy back?”

Too much bureaucracy in the TCI hindering business development is one possible suggestion made in the Green Paper. “Do we require so many regulations, restrictions, permits and licences?” is just one of more than a dozen questions posed by the authors.

Finding a balancing act between encouragement and protection of employment rights and opportunities for Turks and Caicos Islanders with the probable opportunity cost to be paid in terms of overall growth of the economy is a major question which requires thoughtful consideration, according to the seven-page document.

The Green Paper also makes the case for government improving its collection and use of national statistics such as population, census, household income and expenditure statistics.

The Green Paper was reviewed by the Advisory Council on June 22 and is now being made available to the public for general review and consultation.

The interim administration says it plans to meet with businesses groups, such as the Chamber of Commerce, as well as both political parties.

Views collected during these meetings will help reform the Provisional Strategy, expected to be submitted to the Consultative Forum on July 10. The Provisional Strategy will then be further revised and resubmitted to the Advisory Council at its meeting on July 18.

Click here to read the Green Paper on economic development