Achieving levels of competitiveness - a major challenge facing Caribbean says P.M.

Achieving levels of competitiveness that will ensure the Caribbean's survival in the new and emerging global economy is one of the biggest challenges facing the region.

This is what St. Kitts and Nevis Prime Minister and Minister of Finance, Dr. the Hon. Denzil L. Douglas told participants at the launching and first meeting of the Eastern Caribbean Central Bank (ECCB) Private Sector Consultative Group, set up to bring a perspective to the formulation of monetary and other policies that affect the financial sector of the Eastern Caribbean Currency Union (ECCU).

"This is not a task for governments only. It is primarily a task for our enterprises. Governments are largely facilitators in the productive process, while private enterprises are producers," said Prime Minister Douglas, adding that private enterprises must produce quality goods and services capable of meeting the most rigorous international standards and of penetrating global markets to earn foreign exchange and provide employment and income for Caribbean people.

Dr. Douglas noted that enterprises are succumbing to the pressure of trade liberalisation and global competition.

He said banana production has declined and sugar stands bobbing and weaving on a precipice and the winds of trade liberalisation, fluctuating exchange prices, natural disasters, provide new challenges each day.

The St. Kitts and Nevis leader pointed out that the new competitive enterprises that have been targeted to replace old enterprises have not progressed with the anticipated speed.

"Financial services have been adversely affected by all sorts of international pressure, including blacklisting and 'bad mouthing.' Tourism continues to suffer from natural disasters, international terrorism and war, as well as the emergence of new competitive exotic products," says Prime Minister Douglas.

He said it is becoming evident to policy makers in the telecommunications and informatics industry that "you simply cannot legislate away a powerful monopoly (and) the legal framework is only the beginning of a struggle to tame a massive giant."

Prime Minister Douglas was however of the view that globalisation does provide some opportunities for small states, particularly in the area of internet and computer technology which provides easier access to foreign markets.

He said local businesses are no longer constrained by market size, as capital mobility provides easier access to funds, especially when this is bolstered by efforts to develop various

Dr. Douglas said various forms of consultative mechanisms including the tripartite mechanism and various forms for consultation with private sector entities and non-governmental organisations, especially is respect of budgetary and fiscal matter, have been established at the national level.

He said the new initiative by the Monetary Council of the Eastern Caribbean Central Bank is intended to extend this consultative process in the area of monetary policy and financial sector development at the regional level.

Leeward Times, 11th July 2003