I have heard the Prime Minister of St. Maarten and others in the Council of Ministers mention that St. Maarten should create a multi-pillar economy. This means that the Council of Ministers are interested in adding other industries to the economy of St. Maarten. This is called economic diversification.
For years several persons in The Daily Herald and other forms of local media have advocated for economic diversification. If the St. Maarten Council of Ministers are truly interested in economic diversification the following industries should be researched and implemented once St. Maarten overcomes COVID-19: light manufacturing, business processing outsourcing, insurance-linked securities, re-insurance, agriculture, technology parks/e-commerce parks, off-shore banking, cryptocurrencies, medical cannabis, and special economic zones.
A diversified economy can help the government of St. Maarten increase employment, collect additional taxes, and eliminate dependence on Dutch government financial assistance and save funds to tackle any crisis or natural disasters.
Moving forward, the Council of Ministers will have to move swiftly to reopen the economy and take the required steps to begin diversification of St. Maarten’s economy.
If the Council of Ministers can do this, then St. Maarten can be in a position to boast like the government of the Turks and Caicos that announced two months ago that it has $200 million in liquidity to deal with the economic impact from COVID-19. They do not need to rely on their mother country England for fiscal help for the next five months if they spend their money wisely. This is according to the government of the Turks and Caicos.
The Council of Ministers should also look at the Cayman Islands. This Caribbean nation relies on financial services, tourism, re-insurance, insurance-linked securities and a free zone.
Waste in government of all forms must be eliminated. Should the Council of Ministers continue seeking funds from the Dutch government additional harsh conditions will be applied. I will not be surprised if conditions such as increasing taxes and sending home some civil servants will be a part of future conditions.
St. Maarten should not have been in such a financial position. I hope the Council of Ministers under the leadership of the Parliament of St. Maarten really diversify the economy. I also hope that the government does not fall like so many times before. It’s time for country above self.
Kenneth Cook
