BASSETERRE, St. Kitts - THE development of local private sector entities is seen as the way forward for St. Kitts and other OECS countries to expand and see significant growth in their economies.
According to the Governor of the Eastern Caribbean Central Bank, Sir K. Dwight Venner, the key area for member states to see a rebound in their economies is for them to have an affluent private Sector.
He however noted that currently member states need to move away from being two-thirds informal and focus their attention to the service sector.
“A dynamic and innovative private sector is absolutely vital to our development. The current situation is that the structure of the private sector does not lend itself to performing a major role in the development process. Based on census and survey data, the private sector is currently two-thirds informal and one-third formal and concentrates its activities primarily in the wholesale, retail, real estate, construction, and services sectors. These sectors are referred to as the non-tradable activities as opposed to the export-oriented or tradeable ones. This ratio needs to be reversed so that a new private sector can emerge, which can contribute significantly to economic growth and development.”
In giving the Financial Report for the 2013 fiscal year, Governor Venner noted several areas upon which islands should focus their attention to further enhance their private sectors, which he opined would strengthen these industries.
“For this process to be carried out, a deliberate effort to develop the private sector should commence with the full involvement of the most enterprising elements of that sector. The process must concentrate on the development of firms, industries and markets. One needs, once again, to stress the factor of critical mass. Each industry, generally speaking, has to reach a critical minimum size to be competitive and to provide the linkages which would contribute to its success.”
He noted that “there must be a systematic programme for the development of a viable and innovative private sector in our countries. Without this, most of our important business enterprises in the traditional sectors will be sold off to regional or foreign interests; others will cease operations as the founders pass from the scene; and the current age of internet buying will finish off the rest”.
Making reference to the agriculture sector in the Windward Islands, Governor Venner called for an organised private sector which, he opined, could have representation on all fronts.
“This organisational system and structure should facilitate the development of industry sectors through better representation for interfacing with governments and other important institutions nationally, regionally and internationally, research activities to facilitate effective advocacy, product improvement and marketing and the provision of technical assistance to the sector as a whole.”
He emphasised that these private sector entities must look beyond the current institutions for assistance.
“The private sector representative bodies must themselves also look to the region and the international community for willing partners. These partnerships are crucial for the transfer of technology, investment opportunities from joint ventures, and the absorption of business and management practices.”
