A story in today’s paper from Willemstad illustrates how efforts by government to reduce cost can sometimes backfire. It seems so many employees made use of Curaçao’s early retirement scheme that there is now a shortage of personnel.
This had obviously never been the intention and one might ask why it was allowed to happen. Such an austerity measure generally works if a number of specific obsolete functions and positions are identified and the offer is limited to those.
But that is not the manner in which the civil service tends to operate. To get political support and backing from the public sector unions, the programme must basically be available to everyone because there may be no unequal treatment.
However, the latter appears to have defeated its very purpose. When lack of manpower puts adequate service provision under pressure as a result, there is something wrong with the picture.
Curaçao plans to solve the arisen issue partly through digitalisation. With all due respect, that should have been done beforehand to prevent the current dilemma.
Another case of counterproductive action was when – at the time of the former Netherlands Antilles – they increased the excise levy on gasoline in St. Maarten to the extent that motorists went across the open border to fill their vehicle’s tank on the French side of the island and related tax revenues actually dropped.
It’s good to keep these examples in mind when preparing the so-called “country package” of reforms. Don’t cut your nose to spite your face or throw the proverbial baby out with the bathwater.
