BASSETERRE, St. Kitts - THE true size of the St. Kitts and Nevis economy is difficult to measure definitively. A good frame of reference is to measure a nation based on GDP or GDI (gross domestic income). The core economic drivers would be tourism, hospitality, light manufacturing and direct foreign investment through our economic citizenship programme.
There exists a direct correlation between these economic drivers to our quality of life, level of opportunity, crime rate and national advancement on the world stage.
The amount of money you can earn and spend every month will increase or decrease based on our government’s economic policy and planning. The struggle to derive income for individuals and families will ease or increase based on our government’s ability to deliver a vibrant and growing economy.
Success will be measured when a balance of short-term achievements happen concurrent to mid and long-term economic reform, which must include nation branding and economic positioning.
While exact statistics are forthcoming, we can use approximations to highlight an important reality. If tourism represents approximately 6% of our nations income, then spikes in crime or a major shift in our tourist region, such as Cuba opening to Americans, would result in you and I feeling the pain. Full stop.
If our economic citizenship programme accounts for 24 percent (+/-) of our nation’s income, when the EU places St. Kitts and Nevis on a blacklist, this negatively impacts our nation and direct foreign investment. A shift in confidence within the UK, or any super power, could bring our CBI programme to a sudden end.
When USA and EU banking regulations and their demands for banking transparency continue to escalate (such as FATCA), this diminishes the benefits of our offshore financial products and services; and we feel the pain.
Even a 1% drop in tourism, CBI, or financial services is a ripple felt by you and I.
In short, every core economic driver within our economy is today vulnerable and facing serious threats to our freedom and lifestyle.
It’s vital that we understand the delicate position that our small economy plays within a much larger global marketplace. Casual decisions made by world super-powers have the potential to cripple our small nation. Even if our government makes bold decisions regarding our economy this year, it can take years for these policies to evolve and begin driving national income (bearing fruit).
While infrastructure projects are vital, our national brand and the health of our economic drivers must remain a focus and priority.
In the scriptures we learn that “where there is no vision, the people perish”. Societies and nations are rising and falling every day.
This brings to the fore a topic of national discussion related to our nation’s brand and our nation’s value within the global economy, and how we can best protect and position St. Kitts and Nevis. After-all, our progress and/or decline is informed by these important national discussions.
We can all agree that nothing lasts forever. The sugar industry flourished, created jobs, and came to an end. All national brand positions have a finite shelf life, including Tourism and Economic Citizenship. Forward planning is crucial to our welfare. For decades the Caribbean has represented a central value to the world - sun, beaches and vacation. Up until today, we have cast our invitation - come visit us and enjoy our sun. And, come own some of our nation.
But is this sustainable?
The world has evolved and changed, and our alignment to current and future global demand is imperative. The time for this discussion and alignment is now, not later. While our government officials attend to the fires of today, they must not ignore the need for long-term planning and positioning. Many of the world’s leading economists are sounding the warning — and the parable of the 10 virgins, and five who had no oil in their lamps surely applies.
Today, we must look for ways to stand out among nations and differentiate ourselves from our regional neighbours. This includes looking forward in a disciplined and deliberate manner. The greatest economic successes in history have come to those nations that had the foresight and resolve to band together around a sound nation building plan or framework.
This is a collaborative process between government and its people.
Sometimes this happens after war. National reconstruction after war rebuilt nations such as Japan, Korea and Germany. But common to every success are bold decisions and resolve from government and its people. Change isn’t easy. Growth isn’t easy. It takes vision and national resolve.
This means asking something from you. We cannot progress when as citizens we fight and polarise our resolve. As long as our government has a strong plan or Nation Building Framework to stand behind, we owe it to our economic health to work together in strength.
This is a serious question you should answer for yourself. Stop everything you are doing right now…pause for a moment. Now give this some thought. “Can you take a 10% cut in pay? How about a 40% cut?” Failure to unite and strengthen our economy and brand carries this very risk. Can’t happen? Just look in our own region for proof of this threat. Puerto Rico’s economy is hanging by a thread. An earthquake has brought pain to Haiti. When one island rises another is falling.
Dr. W. Edwards Deming and Peter Drucker are consultants known for their remarkable success in Japan after atomic bombings of Hiroshima and Nagasaki. As consultants, Deming and Drucker brought academic and private sector experience and perspective to the Japanese government and industrial complex using methods of manufacturing and quality assurance. Japan can thank Deming and Drucker today for their role and influence in securing a strong national brand and economy, in spite of some serious threats and challenges.
After war, reconstruction is obvious; but what about pro-active “Nation Building”?
We can lead the Caribbean. We can lead with the strongest economy, the most forward, modern and progressive economy. We can plan for this achievable success — or fail to plan, fail to prioritise.
The world has changed since our Federation adopted our offshore financial and economic citizenship products. This author believes that government today, more than any time in our history, must adopt where applicable private sector (corporate governance) best practices to achieve our national aims and goals. Reduced bureaucracy and developing a culture of innovation and entrepreneurship...government has a moral imperative to this end. As the sugar industry spiralled downward, government had the foresight to engineer a new national brand strategy. Failure to adapt would have been catastrophic for you and I.
Today, in the year 2015, and at the beginning of our Government of National Unity, we stand at yet another critical hour.
The process of defining a national brand is actually simple in both theory and practice. There are a few considerations we can pattern after and emulate. This is simply a process of adjusting and defining our outward brand value and positions to a worldwide marketplace, and then begin tuning our domestic workforce to support these positions. It’s a process of leveraging technology and incorporating innovation within government. It’s about aligning our skills (human capital) to a demand within a global economy.
Successfully done, our economy becomes a magnet for direct foreign investment, manufacturing and services, and tourism.
We must require our government to respond decisively, free itself of bloat and unnecessary bureaucracy that can choke out progress. We must require that they become open to move judiciously and surely toward its aims.
Central to this? A focus on creating new jobs, development of small and medium enterprise, and policy that stimulates and rewards entrepreneurship.
Our government cannot accomplish this if we remain petty, fighting over trivial issues. The only issue that can improve your life today is to strengthen our nation. You matter. Indecision is paralysis. Two people unified is progress. Two people fighting is stagnation.
The take away from this 10-part editorial is AWARENESS. Awareness of threat to our nation and acceptance that government, private industry and the public must come together around common vision. Stay tuned for Part Two of our 10-part Nation Building Framework series. Next week: Part 2 of 10 Building a Stronger Federation. Part #2: Good Governance)
We encourage comments below. Lend your voice to this national discussion.
