Dear Editor,
Now that the dust has settled after the unveiling of the colourful Caribbean Guilder (Cg) in a gala-like presentation, it’s time to face reality. Let’s set aside the fact that the Central Bank of Curaçao and Sint Maarten (CBCS) has been promising the Cg since 2008, yet we’re still using the currency of the Netherlands Antilles which ceased to exist in 2010.
Let’s also ignore, for a moment, the many controversies surrounding the CBCS, such as the leak of personal information about a prospective minister, or its inadequate oversight, which led to the debacles of Girobank and Ennia—burdens that will fall on our shoulders and those of future generations. Not to mention the numerous court cases, with more still pending. And if that weren’t enough, the CBCS Supervisory Board is pushing for a 130% increase in the maximum salary for its Board of Directors.
That’s already a lot to digest, but there’s more. The new, shiny bills represent a monetary union between Curaçao and St. Maarten, a union that is nothing short of dysfunctional. The federal Netherlands Antilles was dissolved because its five territories wanted to pursue their own policies. Yet somehow, we decided to form a monetary union, to coordinate or harmonize macroeconomic, fiscal, and monetary policies. As State Secretary of Finance, I vehemently opposed this decision back in 2008, as it was imposed by The Hague without any economic study. No one listened, but some did call for my expulsion.
Despite entering this monetary union, unlike successful examples such as the European Monetary Union or the West African Monetary Union, we have no permanent mechanisms or supranational institutions to coordinate the necessary policies or work towards convergence criteria that would ensure success. Instead, we chose to defy logic and ignore empirical data.
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Today, both St. Maarten and Curaçao have their own economic policies, tax codes, and budget management systems. Over time, the two countries—once part of the same entity—have drifted apart, each following its own path. That would be perfectly fine if they weren’t in a monetary union. But relevant policies remain uncoordinated and specific to each country, which defeats the entire purpose of such a union.
The former Minister of Finance thoughtlessly stated in 2015 that coordination was “not a priority.” Now he’s Executive Director CBCS. St. Maarten, which risks enduring the stark consequences of the aforementioned Ennia fiasco, contemplates leaving the union. My advice? Leave now, “or perish slow”, as Gypsy sang in Sinking Ship. This monetary union is destined to vanish into oblivion, just as many before it.
Alex Rosaria
