Consultative Committee established to deal with financial crisis

ST. GEORGE’S, Grenada-PRIME MINISTER Hon. Tillman Thomas stated this week that the Multipartite Consultative Committee spurned from the recent National Consultation on the Economy will be critical in protecting the country from economic turmoil in the coming year.

Thomas said that the people of Grenada must be aware of the very “real” global economic crisis that is barreling down upon the Caribbean in quick order.

“The combination of a food crisis with rice and wheat prices rising dramatically, a fuel crisis with prices rising to over US$ 147 per barrel in July 2008, a slowdown in the world economic growth and now an international financial crisis have contributed to a major economic downturn in the world.

“We in the Caribbean are not immune to these developments. Almost every Caribbean country is now recording lower tourist arrivals, lower tourist expenditures, lower private investment, and in many cases job losses,” he said.

In Grenada’s specific case, Thomas said that “tighter credit conditions and slower growth will negatively impact government’s revenue and ultimately our ability to meet our policy goals”.

Among the goals he predicted would be most affected are health, educational  and “safety nets for the vulnerable”.

In addition to the PM’s warnings, it was announced recently that on the World Bank’s 181 country list of nation’s best to do business with in the world, Grenada slipped to 84^th in 2008 versus 73^rd in 2007 and 63^rd in 2006.

To combat these frightening economic indicators, Thomas said Grenada must take “collective action” via the Multipartite Consultative Committee.

The Committee would “engage in dialogue on all major matters of National development”, “[put] forward recommendations to Cabinet for consideration”, “facilitate inclusion, participation, good governance, transparency, accountability and facilitate consensus building” and “be an advisory Committee on policy”.

Thomas said that if the relevant stakeholders could reach a consensus on the important decisions ahead of them, they would be able to successfully navigate the global financial crisis and obtain their common goal of “building a prosperous Grenada for all”.