Wednesday, July 5, 2006

Between the impact of previous and inevitable future hurricanes, the negative issue of the seven-year rollover and its affect on recruiting and securing talent, and the rising cost of living here, the Cayman Islands future economic success is considerably less assured than it has been in the past.

As the world's fifth largest financial centre and a very successful offshore jurisdiction our economy is likely to plod along regardless of those negative issues.

However, we must beware of losing overseas investment and underachieving in the future, if a solid plan is not put in place to secure this country's economic success.

With a number of promising developments underway here and others in the planning stages, such as the Camana Bay by the Dart Group, the new Mandarin Oriental resort in East End and the eventual development of the 300 acres purchased by Stanley Thomas, the future is not exactly bleak.

However, it is important that this Government begins to consider how the country will maintain its economic success in the future and to start making certain that encouragement is in place that will ensure the economy doesn't just limp along in the decades to come.

Right now, we are already witnessing the impact that ill-thought out policies like the seven-year rollover can have especially when combined with a very high increase in the cost of living as a result of Hurricane Ivan.

The latest unpredicted set back is the Mealybug outbreak which although is unlikely to bring the country's economy to its knees, money and resources will have to be found to fight it, which inevitably will have to come from somewhere else.

There will always be natural and even man made matters that Governments cannot control like environmental disasters, which means there is even more necessity for successive Administrations to plan effectively with regard to things they can control.

Governments can make an environment more friendly towards and attractive to overseas investors.

Political Administrations can change policy to make attracting, recruiting and above all retaining skilled people easier.

It can invest in its education system to improve the quality of the indigenous workforce and create a climate that allows businesses to flourish and welcomes foreign investment.

Governments cannot control everything, but they can foster the right climate for international business. Their role is to encourage and facilitate economic development in all its guises.

As a particularly unique economy owing to our dependence on a highly qualified professional expatriate workforce, which in turn fosters a need for a large number of support workers within the service sector, immigration is a fundamental part of government here.

As we have noted on occasions too numerous to count, the current Government's insistence on maintaining the seven-year rollover is a very, very bad example of an Administration not considering our long term economic future.

Because of short term xenophobic fervour no doubt stirred up by the now infamous 3000 Caymanian Status grants awarded in 2003 the Government is failing to acknowledge that the seven-year rollover policy will have a very negative impact on the country's future economic development.

Taking a short-term position to pander to short-term emotional views at the ballot box is a perfect example of how poor governance can undermine economic development.

Unusually, compared to other countries, as so few people who actually live and work here have a hand in the democratic process, Government's can be swayed in to making political decisions that may pander to the sentiment of the few who have the right to vote, but have a detrimental affect on so many others and above all the entire country as a whole.

With the minority ruling the majority, it requires sensible planning by each successive Government to ensure that Cayman's economic future is not undermined by policies that are more emotional and political than they are sensible.

As the Caribbean region becomes increasingly more competitive the people of Cayman, regardless of their status, all the people deserve a Government that plans ahead and secures a future for everyone here.

Back...