BASSETERRE, St. Kitts – THERE is no exit from crisis-response in sight for the Eastern Caribbean Currency Union (ECCU) as top officials at the Eastern Caribbean Central Bank (ECCB) project a lengthy lag before recovery trickles down to the region.
In international spheres, recent discussions have been focussing on an appropriate time to withdraw stimulus initiatives, but ECCB Governor Sir K. Dwight Venner has stated that the ECCU has “just started” planning in this regard.
“In the Eight Point [Stabilization and Growth] Programme, the period of adjustment is three years to the end of 2012 because while it appears that recovery is coming in the United States, these things hit us with a lag.
“So, what we are going to find is that 2010 is going to be a little difficult for us if things stay as they are, but because of the Eight Point Programme we’re going to be making maximum efforts to react to that,” Venner explained in response to a question during a press briefing at last Friday’s (Mar. 5) meeting of the ECCB Monetary Council.
The Eight Point Stabilisation and Growth Programme was signed by Heads of Government of the ECCU in December 2009 and was circulated to the regional and international community.
According to the ECCB head, he is hopeful that the region can “turn the situation around” over the next three years with the stabilization plan leading the way.
During last week’s meeting, Council made an agreement to expedite the programme’s implementation so as to address the effects of the global financial and economic crisis on the ECCU member countries.
Much emphasis has been placed on fiscal reform, debt management, public sector investment and social safety net programmes in order to encourage healthy economic adjustment in preparation for an upturn. As stated in a communiqué produced following the Monetary Council Meeting, urgent attention would be given to improving the collection and analysis of data as more accurate statistics will assist the region in its crisis-response.
The Eight Point Stabilisation and Growth Programme encourages a coherent and internally consistent strategy, and once firmly rooted in the deliberations of the Executive and Legislature of the ECCU member governments, economic recovery is expected to be actualised as planned.
