Document of the
Government of St Vincent and the Grenadines
West Indies
PREPARED BY
CENTRAL PLANNING DIVISION
MINISTRY OF FINANCE, PLANNING & DEVELOPMENT
TABLE OF CONTENTS
COUNTRY DATA: ST. VINCENT AND THE GRENADINES ........................... i
GLOSSARY OF ABBREVIATIONS AND ACRONYMS ...................................... II
I.
INTRODUCTION ....................................................................................... 1
1.1 SUMMARY OF GOVERNMENT'S DEVELOPMENT AGENDA ...................... 2
1.2 MEDIUM TERM PROSPECTS ............................................................................. 4
II.
CURRENT ECONOMIC SITUATION ........................................................ 7
1.1 OVERVIEW 2000 - 2001........................................................................................ 7
III.
1.
2.
3.
4.
5.
6.
7.
IV.
MEDIUM-TERM MACROECONOMIC POLICY STRATEGY AND
INSTITUTIONAL ISSUES ......................................................................... 9
Monetary and Financial Policy ................................................................................ 9
Fiscal Policy .......................................................................................................... 11
Debt and Debt Management .................................................................................. 12
Civil Service Productivity ..................................................................................... 13
Good Governance .................................................................................................. 13
Disaster Mitigation and Management .................................................................... 15
Statistical Production and Dissemination and use for monitoring development
progress .................................................................................................................. 16
STRATEGIES FOR ENHANCING SECTORAL SOURCES OF GROWTH
................................................................................................................. 17
1. Tourism .................................................................................................................. 17
2. Telecommunications and Information Communication Technology .................... 19
3. Agriculture ............................................................................................................. 20
3.1
Banana....................................................................................................... 21
3.2
Non-Banana Agriculture ........................................................................... 22
3.2.1 Root Crops, Fruits and Vegetables ............................................................ 23
3.2.1.1 Arrowroot .............................................................................................. 24
3.3
Forestry ..................................................................................................... 24
3.4
Land use and Land Reform ....................................................................... 25
3.5
Fisheries ................................................................................................... 26
3.6
Livestock ................................................................................................... 27
4. Manufacturing ....................................................................................................... 28
4.1
Small and Medium Enterprises Sector ...................................................... 28
5. Offshore Financial Services................................................................................... 29
V.
CROSS-CUTTING ISSUES ..................................................................... 31
Private Sector Development .................................................................................. 31
1.1.
Supporting Infrastructure .......................................................................... 31
1.2
Labour Market Issues ................................................................................ 33
2. Trade Policy ........................................................................................................... 34
3. Education ............................................................................................................... 35
3.1
Youth and Sports....................................................................................... 37
4.1
HIV/AIDS ............................................................................................ 40
5. Housing/Shelter ..................................................................................................... 41
6. Culture ................................................................................................................... 42
7. The Environment ................................................................................................... 43
8. Contribution of the Diaspora ................................................................................. 45
9. Security of Population and Travellers ................................................................... 46
1.
VI.
1.
2.
PROGRAM SUMMARY AND BUDGETARY IMPLICATIONS ................ 47
Public Sector Investment Programme (PSIP) ........................................................ 47
Medium Term Economic Prospects ...................................................................... 50
ANNEXES
POLICY MATRIX ............................................................................................... 53
PUBLIC SECTOR INVESTMENT PROGRAMME ........................................... 79
ST VINCENT AND THE GRENADINES PERCENTAGE CONTRIBUTION
OF GROSS DOMESTIC PRODUCT BY ECONOMIC ACTIVITY AT
FACTOR COST IN CONSTANT (1990) PRICES .............................................. 85
SUMMARY OF GOVERNMENT FISCAL OPERATIONS (EC$ MILLION) 1997-2001 ............................................................................................................. 86
CHANGES IN THE CPI BY MAIN GROUPS 1997-2001 ............................... 87
EXTERNAL PUBLIC DEBT OPERATIONS (EC$ MILLION) 1997-2001 ...... 88
BALANCE OF PAYMENTS: ANALYTICAL SUMMARY (EC$ MILLION) 1997-2001 ............................................................................................................. 89
ST VINCENT AND THE GRENADINES MONETARY SURVEY (EC$
MILLION) 1997-2001 .......................................................................................... 90
COUNTRY DATA: ST. VINCENT AND THE GRENADINES
1997
111.7
5972
1998
111.8
6466
1999
112.0
6699
2000
111.9
6813
2001p
N/A
N/A
793.4
856.6
891.7
905.3
940.3
771.3
243.8
396.2
618.2
797.7
306.2
452.1
672.3
767.4
308.4
473.5
657.5
725.1
247.1
480.6
547.4
746.5
277.8
484.6
568.6
67.4
2.2
52.5
38.0
84.5
16.3
142.5
16.2
104.7
119.3
11.9
40.0
78.3
2.3
49.5
41.1
101.9
17.3
150.0
15.6
117.6
127.3
12.9
40.3
78.7
2.1
46.7
43.8
97.2
18.0
155.6
17.0
127.7
133.5
13.9
43.0
82.4
1.7
46.0
50.1
85.9
18.4
155.1
18.1
138.4
140.9
14.8
49.3
82.3
1.9
45.2
55.2
92.3
18.8
149.3
17.5
145.1
150.0
15.5
51.7
GDP at Current Factor Cost
666.6
724.2
750.4
GDP at Constant 1990 Prices
548.4
579.9
600.8
Annual Rate of Growth in GDP (%)
3.1
5.8
3.6
LABOUR FORCE AND EMPLOYMENT
Labour Force (`000)
43.5
43.6
N.A
Unemployment Rate (%)
N.A
N.A
N.A
MONEY AND PRICES ($ mn)
Consumer Prices (average % change)
0.5
2.1
1.0
Money Supply (M1: end of period)
444.6
516.1
182.7
Commercial Banks’ Loans & Advances:
542.7
576.7
638.3
Government and Statutory Bodies
75.5
74.2
77.2
Private
467.2
502.5
561.1
Estimated Tourism Expenditure (EC$mn)
186.7
194.6
206.5
CENTRAL GOVERNMENT FINANCES ($ mn)
Recurrent Revenue
228.9
241.5
256.5
Recurrent Expenditure
196.7
204.8
225.2
Recurrent Account Surplus/(Deficit)
32.1
36.7
31.3
Capital Revenue
2.5
20.7
17.5
Capital Expenditure
69.4
103.3
63.6
Overall Surplus/(Deficit)
-34.8
-45.9
-14.8
Financing (Domestic Sources)
31.8
32.7
-143.4
Financing (External Sources)
3.0
13.2
158.2
BALANCE OF PAYMENTS (EC$ mn)
Merchandise Exports (f.o.b)
124.4
134.1
133.4
Merchandise Imports (f.o.b )
409.0
456.6
477.2
Trade Balance
-284.6
-322.5
-343.8
Net Balance on Services Account
62.3
76.0
160.1
Transfers (net)
29.1
29.6
41.7
Current Account Balance
-227.1
-254.4
-195.3
Capital Inflows (net)
15.9
36.0
21.1
Official
12.9
32.6
17.6
Private
3.0
3.4
3.5
Change in Reserves ( ) = increase
-2.9
-20.3
10.4
EXTERNAL PUBLIC DEBT (EC$ mn)
Disbursed Debt Outstanding
240.1
272.6
432.30
Debt Service Payments
25.4
25.7
33.3
Amortisation
17.1
16.8
15.8
Interest Payments
7.8
8.7
15.2
Debt Service/GDP
3.9
3.2
3.8
AVERAGE EXCHANGE RATE
Dollar(s) per US Dollar
2.70
2.70
2.70
Sources: Ministry of Finance, Planning and Development and Eastern Caribbean Central Bank
762.9
612.9
2.0
784.6
614.3
0.23
N.A
N.A
N.A
N.A
0.2
212.3
682.8
78.5
604.3
203.4
0.9
219.2
711.7
81.4
630.3
211.6
260.5
240.4
20.2
11.1
35.1
-3.9
-4.0
7.9
267.4
254.6
12.8
6.9
35.0
-15.3
-16.5
31.8
136.6
384.2
-247.6
179.3
50.7
-70.0
32.6
29.1
3.5
-34.3
126.8
399.1
-272.3
187.0
52.8
-89.6
21.5
17.9
3.6
0.0
432.3
28.3
16.0
12.3
6.2
458.6
31.9
17.3
14.6
6.6
MID YEAR POPULATION (`000)
PER CAPITA GDP (current prices)
GROSS DOMESTIC PRODUCT (GDP)
GDP at Current Market Prices (EC$mn)
Demand components:
Consumption Expenditure
Gross Domestic Investment
Exports of Goods & NFS
Imports of Goods & NFS
Gross Domestic Savings Ratio (%)
SECTORAL DISTRIBUTION OF CURRENT GDP
Agriculture
Mining and Quarrying
Manufacturing
Utilities
Construction
Real Estate & Housing
Transport and Communication
Hotels and Restaurants
Wholesale and Retail Trade
Government Services
Other Services
Less Imputed Service Charge
i
2.70
2.70
P-Preliminary
Glossary of Abbreviations and Acronyms
Dollars are Eastern Caribbean dollars (EC$) unless otherwise stated
EC$1.00=US$0.37; US$1.00=EC$2.70
CARICOM
CDC
CFATF
CPCP
CPI
CSME
CWSA
DEVCO
EC
ECCB
EU
FATF
FTAA
GDP
GEF
GESCO
GOSVG
HIV/AIDS
ICT
IPMS
NCB
NDF
NESDC
NHMC
NTRC
OAS
OECD
OECS
PMDS
PSIP
RGSM
RNM
SEDU
STD
SME
SVG
SVGBA
Caribbean Community
Carnival Development Committee
Caribbean Financial Action Task Force
Campden Park Container Corporation
Consumer Price Index
Caribbean Single Market & Economy
Central Water and Sewerage Authority
Development Corporation
Eastern Caribbean
Eastern Caribbean Central Bank
European Union
Financial Action Task Force
Free Trade Area of the Americas
Gross Domestic Product
Global Environmental Facility
General Equipment & Service Corporation
Government Of St. Vincent and the Grenadines
Human Immuno Virus/ Acquired Immune Deficiency Syndrome
Information Communication Technology
Integrated Project Management System
National Commercial Bank
National Development Foundation
National Economic and Social Development Council
National Hazard Mitigation Council
National Telecommunication Regulatory Commission
Organisation of American States
Organisation for Economic Cooperation and Development
Organisation of Eastern Caribbean States
Performance Management and Development System
Public Sector Investment Programme
Regional Government Securities Market
Regional Negotiating Machinery
Small Enterprise Development Unit
Sexually Transmitted Disease
Small and Medium Enterprises
St. Vincent and the Grenadines
St. Vincent Banana Growers Association
ii
SVGHTA
TCE
TVETS
USA
VINLEC
WTO
YES
VAT
St. Vincent and the Grenadines Hotel & Tourism Association
Tripartite Committee On the Economy
Technical Vocational and Educational Training System
United States of America
St. Vincent Electricity Services Corporation
World Trade Organisation
Youth Empowerment Service
Value Added Tax
iii
I.
INTRODUCTION
1.1 St. Vincent and the Grenadines is an archipelago in the Eastern Caribbean,
lying 100 miles to the west of Barbados. The country is comprised of a main
island St. Vincent stretching some 40 miles to the south, and a chain of 34
islands and cays, the Grenadines. The main islands in this chain are Bequia,
Mustique, Canouan, Mayreau, Union Island, Palm Island and Petit St. Vincent.
The population is estimated at 111,000, 90 percent of whom are of African
descent, while the remaining 10 percent are a mix of descendants of East
Indians, Europeans and indigenous peoples.
1.2 St. Vincent and the Grenadines attained political independence from Great
Britain on October 27, 1979 and inherited a Westminster Parliamentary
Democracy system of government. It holds membership in a number of regional
and international organizations and is a founding member of the Organisation of
Eastern Caribbean States (OECS)1. Member countries of the OECS share a
common currency, the EC dollar.
1.3 The macroeconomic policy framework of the Government of St. Vincent and the
Grenadines is founded on the principles of good governance, fiscal responsibility
and accountability. Its long-term goal is to ensure that the economy returns to
robust growth, and it is further designed to provide some measure of economic
stability.
1
The member states of the OECS are Anguilla, Antigua and Barbuda, Dominica, Grenada, Monsterrat St Lucia,
St Kitts and Nevis & St Vincent and the Grenadines.
1
1.4 Given the country’s vulnerability to both external economic shocks and natural
disasters, the Government of St. Vincent and the Grenadines pursues a strategy
of economic diversification. This is intended to lessen the dependence on
agriculture, traditionally the mainstay of the economy. Given its significance,
tourism has been accorded priority in the new thrust. Financial services and
information technology have also been targeted as new growth areas.
Government has also emphasised sustainable human development through
appropriate education and training and some attention would also be given to
public sector reform as another critical element in the drive towards economic
diversification.
1.5 In recognising that economic growth does not necessarily translate into
improvement in the general welfare of if citizens, Government will focus on
poverty reduction measures in the medium term.
1.6 The purpose of this Medium Term Economic Strategy Paper (MTESP) is to set
out Government’s broad policies and approaches to achieve sustainable
economic growth. The MTESP reviews the recent economic performance,
details the policy objectives, the medium term development agenda and macro
projections, as well as the financing requirements to promote sustainable
economic development in an increasingly competitive international economic
environment.
1.1
SUMMARY OF GOVERNMENT'S DEVELOPMENT AGENDA
1.1.1 The MTESP provides specific objectives, goals and targets that are realistic.
The policy objectives, the programmes and projects represent the priorities of
the Government of St. Vincent and the Grenadines.
2
The relatively short
period of the plan provides an opportunity to assess the direction that a longer
Term Development Plan can take, and to make policy shifts from the previous
MTESP.
1.1.2 The overall objective of the Government of St. Vincent and the Grenadines is
to attain high levels of sustainable growth and development, while at the
same time reducing the levels of poverty and raising social consciousness
and increasing the levels of employment.
1.1.3 To achieve this objective, the Government will in the medium term, implement
a more focused economic diversification programme, put measures in place
to increase the level of exports and place new emphasis on social
development which will enable the population to maximize the opportunities
for improved education and health.
1.1.4 Government will seek to accomplish these objectives through the following
policy instruments:
 Prudent fiscal management of public sector resources.
 Mobilising domestic resources for development.
 Improved and more focused legal and regulatory framework to facilitate
investment.
 Focus on pro-poor policies, particularly equity in access to the factors of
production, land, capital, labour and knowledge.
 Pursue sustainable debt management strategies.
3
 Improvement in the delivery of public sector services.
 More focused and deliberate policy for an improved implementation of
programmes supporting economic growth and development.
 Improvement to the social and economic infrastructure.
 Implement the recommendations of the poverty reduction strategy
 Strengthening the country’s capacity for disaster management.
1.2
MEDIUM TERM PROSPECTS
1.2.1 Over the medium term, the growth prospects of St. Vincent and the
Grenadines will depend on:
 A renewed focus on agricultural production through:
1. Successful implementation of a comprehensive agricultural diversification
programme.
2. Restructuring of the banana industry to be more competitive.
3. Improvement in the production, marketing and export of root crops and
vegetables.
4. The revival of arrowroot production and export.
4
 Economic diversification through:
1. Expanding and diversifying the tourism product.
2. Providing increased opportunities for investment, and in particular to
encourage Vincentians in the Diaspora to invest in St. Vincent and the
Grenadines.
3. Revamping the offshore financial sector to make it more viable, effective
and efficient.
4. Increasing manufacturing output, with special emphasis on small
business.
5. Improvement in the efficiency of the implementation of the Public Sector
Investment Programme.
6. Promoting private sector investment.
1.1.2 The Government of St. Vincent and the Grenadines will implement measures
aimed at reviving the agriculture sector. Accordingly, new emphasis will be
placed on improving productivity and output. In this regard, execution of the
agricultural diversification programme will commence, and attention placed on
the increased production of root crops and vegetables to meet demands for
exports. In addition, an arrowroot rehabilitation programme will
be
implemented during the medium term.
1.1.3 In the Tourism Industry the main emphasis in the period will be to market St.
Vincent and the Grenadines as a safe destination and increase the number of
visitors from the North American and Caribbean markets, while at the same
time, stabilizing visitors from Europe.
Government will also continue its
efforts to maximise the earnings in the sector.
5
1.2.3 The potential for growth in the sector will be enhanced by:
 Improvement in access by the creation of hubs.
 Intensification of marketing and promotional activities.
 Ongoing development and upgrading of tourist attractions and
recreational sites on mainland St. Vincent.
 Creating linkages between tourism and culture and other sectors
including agriculture.
 Attracting major investment on the mainland.
 Rationalisation of the cruise service charge to bring the fee structure
in line with other OECS member states.
1.2.4 Government will continue to emphasise the development of the Financial and
Other Services sector.
the sector.
In this regard legislation would be enacted to reform
Further, the proposed development of Money and Capital
markets, the establishment of the New Development Bank (NDB) and the
fiscal incentives framework, will provide the stimuli for further development.
1.2.5 Implementation of the PSIP will be improved primarily through the design and
execution of projects in keeping with the priority needs of the country. More
specifically, projects will be considered for execution only if sufficient
preparatory work is completed that will ensure delivery of a sustainable and
where possible, self-liquidating project or programme.
6
In this regard, a
diagnostic study for an Integrated Project Management System (IPMS) will be
implemented.
capacity
The IPMS seeks to enhance technical and administrative
within
the
public
sector
in
the
identification,
preparation,
implementation and evaluation of projects in the PSIP.
II.
CURRENT ECONOMIC SITUATION
1.1
OVERVIEW 2000 - 2001
1.1.1 The economy of St Vincent and the Grenadines experienced modest but
positive real growth over the review period. Growth in real GDP declined from
3.6 percent in 1999 to 2.0 percent in 2000. Preliminary data indicated a real
growth rate of 0.2 percent in 2001. The downturn in the economy over the last
year was mainly due to a decline in the Agriculture and Tourism sectors and
to a slow down in the combined services2 sectors.
1.1.2 The traditional mainstay of the economy agriculture, led by bananas,
exhibited mixed fortunes, growing by 6.6 percent in 2000 and then declining
by 7.2 percent in 2001. This was largely on account of falling prices and
unfavourable weather conditions which affected output and earnings.
1.1.3 The Hotels and Restaurants sector, used as a proxy for the tourism sector,
experienced a 3.0 percent decline in 2001, following two (2) years of
significant growth. Nevertheless, the sector's contributions to GDP remained
stable at around 2.4 percent in the review period.
1.1.4 Manufacturing, the other productive sector, continued to perform poorly,
registering its 5th consecutive year of decline. This was mainly due to inability
to compete with regional and extra regional sources. Meanwhile, the
construction sector rebounded in 2001 to exhibit real growth of 7.1 percent.
2
Communications, Transport, Wholesale & Retail Trade, Banks and Insurance, Real Estate and Housing.
7
Private sector investment in residential construction provided the impetus for
the recovery.
1.1.5 Growth in the Combined Services sector continued to perform creditably
within the context of the economy. The sector grew modestly by 2 percent
over the period.
TABLE 1
SELECTED ECONOMIC INDICATORS 1997 – 2001
1997
1998
1999
2000
2001(P)
793.1
856.6
891.7
905.3
940.3
Real GDP Growth Rate (%)
3.1
5.8
3.6
2.0
0.2
Inflation (CPI)
0.8
3.3
(1.8)
1.4
(0.7)
Banana Export Earnings (EC$M)
38.9
56.5
55.4
49.5
36.9
Gross Tourism Earnings (EC$M)
186.7
197.7
206.5
203.4
211.6
Central Government Current Savings
4.0
4.2
3.5
2.2
1.4
Public Sector Current Savings
8.4
8.5
8.2
5.3
6.1
Balance of Merchandise Trade
(42.9)
(44.9)
(45.8)
(33.4)
(40.7)
Current Account Balance
(28.6)
(29.7)
(21.9)
(7.8)
(9.5)
29.9
31.5
48.5
47.8
48.8
Debt Service
3.9
3.2
3.7
3.2
3.3
PSIP
8.8
12.1
7.1
3.9
3.7
Nominal GDP (EC$M) (Market Prices)
IN PERCENT OF GDP
External Disbursed Outstanding Debt
SOURCE: Statistical Office, Ministry of Finance & Planning
8
(P) - Preliminary
1.1.6 Central Government continued its policy of prudent fiscal management in the
review period. This resulted in recurrent surplus of 2.2 and 1.4 percent in
2000 and 2001 respectively. Meanwhile consolidated public sector savings
stood at 5.3 and 6.1 percent in 2000 and 2001 respectively.
1.1.7 The public sector external disbursed and outstanding debt moved from
EC$432.1 million (47.7 percent of GDP) to EC$454.3 million (48.8 percent of
GDP) in 2000 and 2001. This was mainly for investments in education,
energy and other basic infrastructural programmes.
1.1.8 In 2000 the deficit on the External Current Account improved markedly to
stand at 7.8 percent of GDP compared with 21.9 percent in 1999. This was
due to a significant decrease in merchandise imports and the surplus position
in the services account. Projections for 2001 are that the Current Account
worsened to stand at 9.5 percent of GDP, primarily as a result of a significant
increase in imports to the private sector. On the Capital and Financial
account, a decline was recorded in net inflows in 2000 (7.8 percent of GDP
compared with 19.1 percent in 1999) and projections for 2001 are that this
account will further decline. This is primarily due to the decline in the financial
account. Notwithstanding the aforementioned, the overall balance improved
from EC$8.7 million (1 percent of GDP) to EC$32.6 million (3.6 percent of
GDP) in 2000.
1.1.9 Inflation measured using the consumer Price Index averaged 0.2 and 0.9 in
2000 and 2001 respectively. These relatively low rates can be attributed to
lower prices for some major food items in the "Food and Beverages " and
electricity in the " Fuel and Light" sub indices.
III.
MEDIUM-TERM MACROECONOMIC POLICY STRATEGY AND
INSTITUTIONAL ISSUES
1.
MONETARY AND FINANCIAL POLICY
9
1.1
Monetary policy which is mainly conducted by the Eastern Caribbean Central
Bank (ECCB) will focus on maintaining price and exchange rate stability in St
Vincent and the Grenadines and other member countries of the Organisation
of the Eastern Caribbean States (OECS).
1.2
Government will continue to emphasize the development of Money and
Capital Markets, in order to facilitate economic growth, employment creation
and poverty reduction.
1.3
The objectives being:
 To increase domestic savings.
 Ensuring the availability of long-term financial resources for investment.
 Broadening the base of ownership of real and financial assets.
 Improvement in operational effectiveness of financial institutions.
 Ensuring that adequate amount of credit is available to the productive
sectors at a competitive cost.
 To complement developments in the real sector.
1.4
Money and Capital Markets development will be facilitated by developing and
implementing policies and programmes and enactment of necessary
legislation including:
 Enactment of a new Insurance Act to improve the regulatory framework for
the Insurance sub-sector.
 Strengthening of the framework for monitoring and supervision of nonbank financial institutions.
 Develop and enact legislation for the establishment of the Eastern
Caribbean Unit Trust and the Eastern Caribbean Enterprise Development
Fund, in conjunction with the ECCB.
 Implement a reorganisation of the National Commercial Bank to divest the
Commercial Bank of its non-banking activities and to enhance the Bank’s
integrity and soundness.
10
2.
FISCAL POLICY
2.1
Public Sector Savings have declined in recent years, from approximately 8.2
percent of GDP per annum in the 1997 to 1998 period to 5.8 percent of GDP
per annum in the 2000 to 2001 period. The decline has been caused by an
increase in current expenditure which moved from 34.7 percent of GDP in
1997 to 1998 to 39.2 percent of GDP in 2000 to 2001. The growth in current
revenue has been subdued and the current revenue to GDP ratio has
remained at around 43 percent to GDP over the last five (5) years.
2.2
Over the medium term, Government's fiscal policy will focus on maintaining
fiscal discipline within the public sector and generating the required level of
savings to support the Public Sector Investment Programme (PSIP).
Government will also use fiscal policy to help stimulate the productive sectors,
mainly through tax incentives.
2.3
In keeping with its objective concerning domestic savings and investment, the
Government aims to restore the level of public sector savings to 8 percent of
GDP. This will come mainly through a contraction of spending in real terms
and improved revenue collection by the strengthening of tax administration
and the widening of the tax base.
2.4
Government recognises that the regional move towards liberalisation, the
formation of the Caribbean Single Market and Economy (CSME) and Free
Trade Area of the Americas (FTAA) will result in reduced public finances,
hence efforts will be made to widen the tax base and simplify the tax system
to improve tax compliance through introduction of a new system of property
taxes, introduction of a Value Added Tax (VAT) or VAT type tax and further
reductions in income tax rates. Government will also continue to review its
charges for services provided to the public in order to make them more
reflective of cost.
2.5
Government will continue to place emphasis on the rationalisation of current
expenditure. To this end, capital and current expenditure will focus on
poverty reduction, employment creation and upgrading the country's social
and economic infrastructure. Government will over the medium term
strengthen financial controls and improve efficiency of public enterprises by:
11
 Implementing a system for monitoring the operations of public enterprises.
 Improving the compilation and analysis of statistics.
 Introducing an up-to-date Finance (Administrative) Act and accompanying
regulations.
 Rationalising the operations and structure of the St. Vincent Banana
Growers Association, the Marketing Corporation, the Arrowroot
Association, GESCO, and other public enterprises.
3.
DEBT AND DEBT MANAGEMENT
3.1
While investment is a critical component of the development process,
Government is cognizant that a comprehensive debt management
programme is essential to achieving sustainable economic growth and
development.
3.2
At the end of 2001, Public Sector External Debt was estimated at $458.68
million (48.9 percent of GDP).
Consequently debt service payments
(including payment on the domestic debt) by the Central Government, now
accounts for over 18 percent of current revenue.
3.3
Over the medium term Government aims to keep the External Debt ratio to
within 50 percent of GDP and the overall debt to within 70 percent of GDP.
3.4
Government has been successful in negotiating debt forgiveness which has
helped the fiscal situation and provided more flexibility in financing the Public
Sector Investment Programme. In the medium term Government will
vigorously and expeditiously pursue debt relief measures on the Ottley Hall
debt (EC$156 million).
3.5
Management of the external debt will focus on the need to increase the levels
of domestic savings to provide counterpart financing for the PSIP, thereby
reducing debt service obligations to manageable levels. Government will also
ensure that debt is used to finance only those projects which are feasible in
terms of their contribution to economic and social development and poverty
reduction.
12
4. CIVIL SERVICE PRODUCTIVITY
4.1
Currently, the public service of St. Vincent and the Grenadines consists of
eleven (11) ministries and three (3) Autonomous Departments, with
approximately five thousand employees. An efficient and effective public
service is critical to achieve the development goals of the country. In light of
this, a new system has been developed to improve and manage the
performance of employees, to strengthen the human capacity and to reward
employees’ output and efforts related to performance targets. This system
referred to as the Performance Management and Development System
(PMDS), will replace the ‘Confidential Reporting System’.
4.2
The Public Sector Reform Management Unit is proceeding with the
implementation of the PMDS with a nine months trial test which commenced
on March 1st, 2002. Following an evaluation, adjustments were made prior to
full implementation on 1st February, 2003.
4.3
During this period the unit will collaborate with the Training Division on the
following:
 Monitoring the implementation of the PMDS.
 Training.
 Evaluating reports related to the PMDS.
The PMDS is expected to impact positively on the efficiency, productivity and
effectiveness of the Public Service.
5.
GOOD GOVERNANCE
5.1
The Government is deeply committed to international “Best Practices” of good
governance in a country with a sound liberal democratic constitutional
apparatus.
Good governance addresses among other things, the
maintenance and enhancement of constitutionally enshrined fundamental
13
rights and freedom; the active participation of the population, and democratic
control over the institutions of governance; the maintenance and
strengthening of the independence and quality of the judiciary; initiating an
on-going war against official corruption and the promotion of a politicallyhygienic system of government; making government more accountable and
efficient; the empowerment of the people generally and the building of a
genuine partnership between the government and civil society; and the
shouldering of Government’s international obligations in the many-sided war
against terrorism, international crimes, drug trafficking and money-laundering.
5.2
Within recent times a series of “good governance” initiatives have been taken
with resounding success. These include:
 Holding frequent meetings of parliament and improved workings of that
legislative body.
 Broadcasting of meetings of parliament live on radio and television.
 Ensuring that the tendering process for government contracts is fully
transparent and without political interference.
 Establishing a functioning National Economic and Social Development
Council (NESDC) comprising all major interest groups, political parties,
and state officials to address broadly all the critical issues affecting the
macro-economy and society.
 Establishing a functioning Tripartite Committee on the Economy (TCE)
comprising of equal representation from the private sector, trade union
movement and the government, to examine and prescribe for the issues of
employment, investment, productivity, wages/salaries, and prices.
 Signing the Organisation of American States (OAS) Convention on Official
Corruption.
 Drafting legislation to address “the integrity” of Parliamentarians and
senior public officials.
 Putting practical accountability measures in place within the state
administration to eliminate corruption and waste.
14
 Legislation on many matters touching upon the fight against terrorism,
including the financing of terrorism.
 Co-operating fully with funding Government’s and international agencies
on a raft of measures relating to governance.
 Ratifying the Cotonou Agreement in Parliament.
 Passing parliamentary motions in the process for constitutional reform and
the re-institution of local government.
 Strengthening, with other OECS countries, the judiciary.
5.3
Over the medium term, Government will accelerate and deepen its good
governance efforts in every single aspect. This is linked inextricably to its
economic strategy and its foreign policy. Good governance, in accordance
with best practices internationally, is at the heart of Government’s overall
public policy.
6.
DISASTER MITIGATION AND MANAGEMENT
6.1
Disaster preparedness and management will be an important consideration in
development planning over the medium to long term. St Vincent and the
Grenadines’ geography exposes it to both natural and man-made
catastrophic risks. The multi-island state, situated in the hurricane belt has
one of the largest active volcanoes in the region and lies within close
proximity to the world’s busiest shipping lane.
6.2
Over the medium term Government will strengthen the national capacity to
respond to, as well as mitigate against disasters, with the implementation of
the Disaster Management Project”. This project comprises two major
components:
 Institutional Strengthening.
 Physical Mitigation.
6.3
These components will incorporate the following activities:
15
 Creation of the National Hazard Mitigation Council (NHMC).
 Establishment of the Office of Disaster Preparedness and the Emergency
Operations Centre.
 Procurement of equipment and supplies for the Office of Disaster
Preparedness.
 Capacity building and training and awareness programmes.
 Flood protection works in three priority areas, viz: Buccament/Hope
Valley, Colonarie, Langley Park.
 Coastal protection.
 Retrofitting of five health centers.
 Retrofitting of twenty emergency shelters.
 Establishment of a country-wide early warning and emergency
communications system.
 Financing an Integrated Coastal Zone Management Study.
 Financing a study for the Kingstown Watershed Management and Storm
Drainage Improvement Project.
7.
STATISTICAL PRODUCTION AND DISSEMINATION AND USE FOR
MONITORING DEVELOPMENT PROGRESS
7.1
New and varied approaches to national development have placed greater
responsibilities and demands on the Statistical Office. To meet these
challenges and provide timely and reliable statistical data, the department will
take necessary measures during the medium term to strengthen its
institutional capacity via training and recruitment of professional staff. In
addition, existing equipment will be upgraded to cope with the increased
volume of work.
16
IV.
STRATEGIES FOR ENHANCING SECTORAL SOURCES OF
GROWTH
1.
TOURISM
1.1
The stated policy of Government is to fully exploit the potential of tourism
while maintaining the country’s environmental integrity. Benefits to be derived
from participating in the sector include employment (within the industry itself
and from the other sectors with which it has linkages, eg. agriculture) and
improvement in social conditions.
1.2
The sector has taken on greater importance in recent times especially with
the threats facing the agriculture sector and in particular, the country's main
agricultural money earner, bananas. The tourism sector is critical to the
advance of the necessary and desirable strategic objective of economic
diversification. The emerging prominence of the service sectors in St Vincent
and the Grenadines and particularly the growing influence of tourism
constitutes a major local feature of changes in the international economic
environment. The tourism sector is considered the nucleus around which
services are developed and serves to point to the new strategic direction and
the new sources of growth for the economy in the early years of the 21 st
century.
1.3
In 2001, tourist arrivals declined marginally by 0.8 percent totalling 254.1
thousand compared with 256 thousand in 2000. This decline was primarily
due to the slow down in the global economy and the September 11, 2001
terrorist attacks in the United States of America.
1.4
During the medium term, the tourism industry is expected to continue
providing opportunities for economic growth and expansion in the areas of
employment creation, foreign exchange generation, enhanced rural
opportunities, increased tax revenues, sectoral linkages and infrastructure
investment. Government’s policy objectives for the Tourism Sector include the
following:
17
 The development of tourism as a major industry that generates quality
employment.
 Increasing overall visitor expenditure through product diversification
and niche marketing.
 The encouragement of vertical, horizontal and lateral linkages among
tourism, agriculture and other industries and services to ensure that
economic benefits are more widespread.
1.5
The strategies for enhancing growth in this sector over the medium term are
as follows:
1.
Development and implementation of an intense tourism
awareness education and training programme
Enhancing the human capacity and fostering an appreciation for the
meaning of “hospitality”.
2. Preparation and implementation of a comprehensive programme
to effectively market the destination
The growing complexity and competitiveness of markets, the need to
achieve market share growth and the requirement to maximize the use of
scarce marketing resources, all point to a more focused and innovative
public/private sector (collaborative) approach to the issue of marketing.
The marketing strategy will therefore address the following:
 Prioritization of markets.
 Segmentation of the product and thus a clearer identification of
appropriate market niches.
 Sharper focus on competitiveness.
 Improved communication and distribution within the market.
 Greater emphasis on research, data collection and analysis.
3. Development of the tourism product and enhancing
18
communication and access
Effective marketing of the destination will be contingent on the quality of
the product and its sustainability. This strategy will address the following:
 Road infrastructure.
 Development of sites and attractions.
 Airport development and air access.
 Telecommunication.
 Community based initiatives.
 Minimum tourism standards.
 Incentives framework.
4. Strengthening the institutional and regulatory framework
This strategy will among other things address the following:
 The role of a Government Ministry vis-à-vis a Statutory Authority
responsible for tourism.
 The development of a National Parks, Rivers and Beaches
Authority.
 Legislation to provide for minimum standards, licensing and other
regulatory mechanisms in the industry.
 Review of the fiscal incentives framework.
2.
TELECOMMUNICATIONS
TECHNOLOGY
AND
2.1
During the last period 2000 - 2002 St Vincent and the Grenadines moved
towards the liberalisation of the telecommunications sector with the
enactment of the necessary legislation.
19
INFORMATION
COMMUNICATION
2.2
Government attaches high priority to the information technology sector in
order to further its economic diversification efforts. Apart from providing
employment, growth in information communication technology is also
expected to benefit sectors such as education, health and commerce. It is
anticipated that a liberalized telecommunication sector will encourage the
entrance of new service providers, leading to a fall in price and increased
investment in the sector.
2.3
Information Communication Technology (ICT) will form a critical component of
the thrust towards
economic diversification.
Technological advances
including the convergence of telecoms, information technology and
broadcasting technologies and the burgeoning of e-commerce, have opened
up new opportunities for developing countries like St Vincent and the
Grenadines.
2.4
Government recognizes that this sector has enormous growth potential and
will create the enabling environment to stimulate growth of this sector. Policy
objectives during the medium term will therefore focus on sector reforms,
increase in technology related skills and reduced costs of telecom services.
Within this period, Government will focus on telecommunications liberalization
through collaboration with its OECS counterparts, to remove vestiges of
monopoly control. In addition, the regulatory framework and incentives
legislation will be revised and strengthened to encourage new entrants into
the St Vincent and the Grenadines market.
2.5
During the medium term to further enhance development of the telecom
sector, emphasis will be on training of all commissioners on the National
Telecom Regulatory Commission (NTRC). In addition staff and other
personnel will receive training in Information Communication Technology
(ICT).
2.6
A National Institute of Technology will commence operations. This institute
will act as a co-ordinating agency for all Information Technology Centres. In
excess of 2500 persons will be trained and a significant number certified.
3.
AGRICULTURE
3.1
The agricultural sector remains a major contributor to GDP and a significant
source of income and employment generation. Government is cognizant that
the sector will continue to play a vital role in the socio-economic well being of
20
the St. Vincent and the Grenadines. During 2001 this sector declined largely
on account of poor performance in the banana industry.
3.2
Government’s major focus for agricultural development over the medium term
will be to further strengthen the agricultural diversification thrust around
bananas. To achieve this, the Government will pursue a number of objectives
critical to enabling the sector to become more competitive and to increase
output, productivity and efficiency in the sector. In addition, the new thrust will
be to ensure the optimal and sustainable use of the country’s arable land,
forestry and marine resources.
3.3
The diversification initiatives over the medium term will address issues
relating to four areas. These are:
 Infrastructural development.
 Incentives for farmers and other private sector entities.
 Institutional development and strengthening.
 Development of informational support systems.
 Implement an arrowroot rehabilitation program
3.4
The execution of this strategy, to further deepen the diversification process,
will involve the targeting of some key sub-sectors and the development of
programmes/ initiatives to address the sector specific issues and problems.
3.1
Banana
3.1.1 Developments in the banana industry continue to dominate the agricultural
sector. Value added by this sub-sector declined by 7.2 percent in 2001,
primarily as a result of fall off in production due to the severe drought
experienced in that year.
3.1.2 Following the fall off in production in 1999, output rebounded to increase to
43,763 tonnes in 2000. Notwithstanding this increase in production, earnings
fell to 36.9 percent in 2001.
21
Table 2
BANANA EXPORT EARNINGS
Export (tonnes)
Export Earnings($m)
Export Earnings Change(%)
1996
1997
1998
1999
2000
2001p
48,850
32,850
40,820
40,210
43,763
33,887
55.4
38.9
56.5
55.1
49.5
36.9
(16.2)
(29.8)
45.2
(2.5)
(10.2)
(25.5)
Source: Ministry of Finance & Planning
P - Preliminary
3.1.3 The strategy which has evolved over the years is to revitalize and sustain
production and market high quality fruit. From 2006 preferential access for
Windward Islands’ bananas to the United Kingdom Market will be
discontinued. Given the increasing competitive environment, the creation of a
more dynamic and efficient organization has become imperative if the subsector is to survive.
3.1.4 Over the medium term Government plans to pursue the following specific
initiatives:
 Expansion of the Banana Tissue Culture laboratory at Rabacca.
 Finalize restructuring of the St. Vincent Banana Growers
Association(SVBGA) to ensure all activities of the Association and
farmers are conducted based on commercial principles.

Modernise the industry’s technology, institutions and organization.
 Implement a feeder roads rehabilitation programme.
3.2
Non-Banana Agriculture
3.2.1 Despite the many initiatives over the years to diversify the agricultural sector
and in particular develop this sub-sector, success at best has been marginal.
22
3.2.2 Notwithstanding the shocks which have impacted the sub-sector negatively
over the last three years, Government is redoubling its efforts to ensure that
this sub-sector becomes a vibrant and major contributor to the overall growth
of the agricultural sector.
3.2.1 Root Crops, Fruits and Vegetables
3.2.1.1As part of its diversification thrust, emphasis is placed on the development of
this sub-sector.
3.2.1.2Over the medium term a number of specific programmes aimed at increasing
production and improving farmers income will be implemented. These
include;
 Establishment of an Agricultural Diversification Fund to promote
non –banana agriculture.
 Upgrading of rural marketing depots.
 Creating a mechanism to facilitate easier access to credit.
 Implementing a new Arrowroot programme.
 Assisting in the establishment of a Cassava Processing Plant.
 Upgrading of propagation stations to supply top quality
seedlings and plants at low cost to farmers.
 Procurement of appropriate fertilizers, pesticides and other
inputs through the state agency.
 Further strengthening the St Vincent Marketing Corporation to
ensure it can effectively execute its marketing and exporting
mandate.
23
3.2.1.1
Arrowroot
3.2.1.1.1
The Arrowroot Industry is a totally indigenous agro industrial enterprise
that undertakes the cultivation and processing of rhizomes to produce
a starch.
3.2.1.1.2
Recognising the potential for expanding the industry the Government
received technical assistance from the Caribbean Development Bank
(CDB) for a feasibility study.
Recommendation for increasing
productivity process and marketing of arrowroot are contained in the
Strategic Action Plan. The main components of this plan will be
implemented in a comprehensive arrowroot programe. The main
objective of this programme is to enhance the diversification of the
agriculture sector by increasing output and productivity.
3.2.1.1.3
The programme seeks to ensure the sustainability of the arrowroot
industry to effectively compete in the international markets. It
involves the construction of a new factory and the procurement of
suitable equipment, expansion of acreage under arrowroot production
and quality.
3.3
3.3.1
Forestry
The Government recognises that forestry has its role to play in the
overall agricultural diversification process.
The protection and
management of the forest resource is essential to the preservation of
the environment as a basis for sustainable development. Support will
be provided for the private sector in order to increase the industrial use
of forest products, fuel, timber craft materials, peat moss, flowers and
fruits. Over the medium-term the critical issues that the forestry
programmes will address are:
 Deforestation caused by illegal cultivation in reserve areas
and squatting.
 Increasing unauthorized exploitation of forest resources.
 Use of the forest resource to facilitate tourism development.
 Destruction of the natural habitat of wild life.
24
3.3.2
To address these issues Government will:
 Continue the Integrated
Conservation programme
Forestry
Development
and
 Reforest 10 acres of land in Majorca.
 Increase the level of forestry protection and enforcement
through legislation and public education.
 Establish permanent forest boundaries from Fancy to
Windsor Forest.
 Rehabilitate the upper Diamond watershed.
 Continue training programme for all staff in areas of forestry
parks, wildlife, agro-forestry and watershed management.
3.4
Land use and Land Reform
3.4.1 Government’s medium term strategy is to make arable land available to
landless farmers and introduce appropriate land management policy.
Government will:
 Continue the mapping of agricultural lands to determine land
use.
 Develop local area land use maps to regularize and manage
the available lands.
 Revamp the present system of administration/registration of
title to land, to make it less bureaucratic and more conducive
to the poor.
3.4.2
In addition to these sector specific initiatives, there are other critical
components of the overall diversification thrust. These include:
 Upgrading and constructing farm roads throughout the
country.
25
 Capacity building at statutory, community and farmers levels
to effectively implement the diversification programme.
 Strengthening the Production and Marketing Information
Support System e.g. monitoring export performance and
conducting research into niche markets.
 Strengthening legislation to address an array of issues
affecting the industry. e.g. stray dogs, praedial larceny and
quality standards for fresh and processed produce.
 Farmers training in the development of business plans and
management.
3.5
Fisheries
3.5.1 The development of on-shore infrastructure is an important activity in the
stimulation of growth in the sub-sector. It is mainly a rural based activity and
is an important vehicle in the fight against rural unemployment and poverty.
To this end, Government has secured financial assistance in the
establishment of fishing centers to ensure proper storage and distribution of
fish. These facilities, however, require upgrading to meet European Union
(EU) standards for export of fish and fishery products.
3.5.2 Given the current status regarding the export of fish and fish products to the
EU, efforts are currently underway to facilitate the resumption of trade.
These efforts include:
 Fencing of Fisheries Centres throughout the state.
 Installation of “Clean Rooms”.
 The construction of live lobster pools.
 Installation of safety and sanitary equipment at fisheries centres.
 Establishment of laboratory facilities and training of laboratory
technicians, fish inspectors and fish processing personnel.
26
 Establishment of desalination plants in Bequia and Union Island.
Government will also continue to facilitate the training of fisher folk and
the provision of appropriate equipment, boats and gear over the
medium term.
3.6
Livestock
3.6.1 Government regards this sector as possessing great potential for achieving
some broader national objectives such as food security, reducing rural
unemployment/ poverty and the food import bill. It is an area that can easily
facilitate local investors and stimulate small enterprise development.
3.6.2 Over the years the emphasis has been placed on the development of pig and
small ruminant production. The establishment and operation of a piggery at
the Rabbaca was a major accomplishment of this thrust.
3.6.3 In the medium term emphasis will be on developing the poultry sub-sector to
fully exploit it’s potential for egg and meat production. Other initiatives aimed
at improving production in the sub-sector include:
 Expansion of the livestock programme to improve the stock.
 Introduction of new cattle breeds through artificial insemination.
 Facilitating small farmer production through credit, extension
and other support services.
27
4.
MANUFACTURING
4.1
Government’s policy with respect to manufacturing and industrial
development is to create an enabling environment in order to maximise
output, increase the level of export and create employment. Government will
continue to encourage the promotion and development of small
manufacturing and agro based enterprises and facilitate the development of
entrepreneurial skills. Accordingly, the following will be undertaken to effect
growth and development of the sector over the medium term:
 Revise the fiscal incentives programme to create a more
attractive environment for investment. (Work has already
commenced in this area with lower tax rates offered for
exporting of manufacturing commodities).
 Pursue a policy of reducing the cost of investment.
 Establish an Industrial Development Policy.
 Support the Development Corporation (DEVCO) in the
finalisation of the Investment Code/Guide and other investment
promotional materials, events/activities.
 Continue the expansion and development of the Small and
Meduim Enterprises (SME's) sub-sector and to provide technical
support to the private sector.
 Collaborate with the private sector through the Chamber of
Commerce in developing and implementing training
programmes.
4.1
Small and Medium Enterprises Sector
4.1.1 During 2000-2002, a number of initiatives was undertaken which laid the
ground work for the growth of the sector. These included:
28
 The establishment of Small Enterprise Development Unit (SEDU),
which provides technical assistance, training and education to the
sector.
 Establishment of the Development Bank.
 The provision of funds, to National Development Foundation, to
address the credit needs for the sub-sector.
4.1.2 Over the medium term, emphasis will be on:
 Expansion of credit programme for small business development
through agencies including the National Development Foundation
and National Commercial Bank.
 Provision of technical support to small and medium enterprises by
SEDU.
 Development of additional standards for manufacturing.
 Provision of technical assistance to assist in product development.
 Intensification of the “buy local” campaign.
5.
OFFSHORE FINANCIAL SERVICES
5.1
The prevailing international environment has impacted significantly on the
operations of the offshore finance sector. The fallout from the September 11,
2001, terrorist attacks in the United States of America, has intensified the
problems and challenges faced by the sector.
5.2
Already, the “blacklisting” of the jurisdiction by the Financial Action Task
Force (FATF) meant that resources and manpower had to be diverted to
addressing those concerns, while at the same time, that “blacklisting” proved
to be an obstacle and hindrance for persons seeking legitimate business
opportunities. The aforementioned stunted the growth of the sector.
29
5.3 In response, there has been the commitment to a number of things:
 Administrative Reform
- which involves a different supervisory
approach, including the separation of promotion from regulation.
 Capacity Building - this involved the recruiting of personnel as well as
the training of staff.
 Legislative Reform - whereby the entire package of offshore legislation
is being reviewed and amended, including a lessening of the secrecy
provisions.
 Product Selection - it has become necessary to de-emphasize certain
sub-sectors and be more focused on others.
5.4
St Vincent and the Grenadines is committed to the transparency principle
and the sharing of information with the Organisation for Economic
Cooperation and Development (OECD). The country is also committed to
the independent Financial Sector Assessment Programme of the
International Monetary Fund and the World Bank. In addition, there is to
be the mutual evaluation exercise of the sector by the Caribbean Financial
Action Task Force (CFATF) in Novembr 2002.
5.5
On site supervision visits in collaboration with the Eastern Caribbean
Central Bank, of offshore banks are soon to commence.
5.6
There are to be educational seminars organized by the National AntiMoney Laundering Committee, which was set up pursuant to the
Proceeds of Crime and Money Laundering (Prevention) Act, No. 39 of
2001, in collaboration with the Offshore Finance Authority.
The jurisdiction will be emphasizing a sound regulatory and supervisory
mechanism, accompanied by an efficient and client-friendly secretariat.
30
V.
CROSS-CUTTING ISSUES
1.
PRIVATE SECTOR DEVELOPMENT
1.1.
Supporting Infrastructure
1.1.1 In the medium term, Government will continue to improve and upgrade the
supporting infrastructure in an effort to facilitate the development process.
Road Network
1.1.2 Within recent times the road network in the country has deteriorated mainly
as a result of inadequate maintenance and increased traffic. Investment in
this sector is critical to the development process over the medium term.
Projects to enhance the road infrastructure will include the Rehabilitation of
the Windward Highway and the Feeder Roads Programme. A traffic study will
also be conducted aimed at improving the traffic flow in and around
Kingstown.
Airports
1.1.3 Government recognizes that several sectors will benefit from improved air
access. Notwithstanding cost constraints which preclude the construction of
an international airport in the medium term, focus will be placed on upgrading
the E.T Joshua Airport at an estimated cost of EC$45 million. Major
components of this project include expansion of the apron, construction of a
new terminal building and installation of safety equipment to comply with the
requirements of the Federal International Civil Aviation Organisation. It is
envisaged that these renovations will improve safety and provide better and
more efficient passenger handling facilities as well as enhance the aesthetic
appeal of the airport. These improvements are expected to impact favourably
on the tourism sector. In addition, the issue of air access will be improved
through establishment of hubs in St. Lucia and Barbados.
31
Seaports
1.1.4 Efficiently functioning seaports are critical to facilitate the diversification of the
economic base. With the absence of an international airport and given that
the country is highly dependent on trade, efficient seaports are important to
complement air access facilities.
1.1.5 During the last medium term, seaport development centred on the
reconstruction of the Ferry and Cruise Ship Berth, which was extensively
damaged following the passage of Hurricane Lenny. During 2002, seaport
development will focus on the merger of the SVG Port Authority and the
Campden Park Container Corporation (CPCP). The merger is expected to
enhance operational efficiency and competiveness of the Port. The
operational facilities of the Port are also expected to increase through the
development and implementation of strategies for the development of the Port
as a transshipment facility and also as a storage or free zone area.
Water & Sewerage
1.1.6 Government is committed to ensuring that every community in St. Vincent
and the Grenadines has access to potable water. The EC$8.3 million
Dalaway Water Project will be commissioned during the medium term. This
project will provide on its completion an improved quality of water. In order to
continue to provide quality services and to meet the growing demand for this
vital commodity, the Central Water And Sewerage Authority (CWSA) will
embark on some major initiatives in the medium term. These include the
Windward and South-East Coast Water Supply Project and the Loss
Reduction Programme for public buildings. The Windward Water Supply
Project, estimated to cost EC$23 million, will significantly improve the water
supply from Georgetown to Belvedere. In addition, Government will also
conduct studies on water supply in the St Vincent and the Grenadines to
adequately forecast the water needs of the country.
The issue of solid waste disposal will continue to be addressed during the
medium term. Now that the entire mainland is serviced with a household
garbage collection and disposal system, focus will shift to solid waste disposal
in the Grenadines. To this end, landfills will also be constructed in Bequia,
Canouan, Union Island and Wallilabou on mainland St Vincent.
32
Electricity
1.1.7 Growth in this sector has averaged 5.7 percent per annum over the last five
years and demand is expected to increase by 4.4 percent on average over
the medium term.
Government is committed to ensuring that every
household has access to electricity. The process of rural electrification will
continue over the medium term. In addition, the electrification of Mayreau is
projected to be completed by the end of 2002.
1.1.8 Over the medium term, Government in collaboration with VINLEC will be
exploring more efficient ways of meeting the demand for electricity at reduced
cost. In this regard, Government signed the Caracas Energy Agreement with
the Government of Venezuela. This agreement allows St Vincent and the
Grenadines to purchase refined fuels from Venezuela at concessionary rates.
VINLEC will invest approximately EC$55 million over the next five years to
construct a power generating and storage facility at Lowmans Bay and to
replace existing inefficient generators at Cane Hall.
1.2
Labour Market Issues
1.2.1 The impact of globalization has forced a number of companies to resort to
restructuring programmes, which led to the redundancy of a number of
workers in the private sector.
1.2.2 During the last period, the following initiatives were implemented:
 Strengthening the regulatory framework by reviewing existing
labour laws and enacting new laws. Three new councils were set
up to examine the terms and conditions of workers in Security
Firms, Hotels and Offices of Professionals. It is expected that the
new regulations will take effect during the first half of 2002.
 Strengthening the Labour Market Information System leading to the
development of an automated Labour Market Information System.
33
1.2.3 In the medium term the following issues will be addressed:
 The issue of productivity and remuneration.
 Comprehensive upgrade of all labour legislation.
2.
TRADE POLICY
2.1
The policy agenda of St. Vincent and the Grenadines over the next three (3)
years will take full cognizance of developments at the multi-lateral,
hemispheric and regional levels that will constitute critical considerations in
our Trading Arrangements.
2.2
During the medium term a National Trade Policy Document will be developed
which will guide inter alia:
 External economic relations and external trade strategies.
 National capacity building necessary for integration into the global
economy.
 The provision of the necessary legal and administrative framework.
 The restructuring and critical direction of the Department of
Commerce and Trade to improve the organizational functionality at
the Public Sector Level.
2.3
Greater emphasis will be placed on developing the national productive sector
through collaborative efforts with the Ministry of Telecommunications,
Technology, Science and Industry, the Bureau of Standards and other
Governmental, Quasi-Governmental and other development agencies to
ensure our trade capability and capacity are harnessed to seize and exploit all
local and external markets.
34
2.4
Additionally, the Government will continue to facilitate the promotion of our
goods and services through:
 Local Trade Fairs.
 Trade and investment Missions abroad.
 The development of services sector.
2.5
St. Vincent and the Grenadines Trade Policy agenda over this planned period
will depend largely on our ability to maximize the use of scarce resources in
the most efficient ways, thus improving our ability to produce and trade
internationally at a competitive level.
3.
EDUCATION
3.1
Government recognises that education is central to the success of its
development programmes. In the medium term high priority will be given to
achieve the goal of providing every citizen with quality education. The policy
of the Government is' to ensure that every citizen receives quality education
and be equipped with life long skills to respond effectively to national
development needs'.
3.2
The issues to be addressed over the period are:
 Access
 Quality
 Relevance
 Institutional strengthening
 Provision of basic skills.
3.3
The period 2000-2002 saw the completion of another replacement school,
substantial upgrading, renovation and repairs to all Government owned
learning institutions, increased financial support to the Early Childhood
Sector, the computerisation of 15 schools and the introduction and expansion
35
of the book loan scheme from Grade 7 through 12. These measures
improved the foundation for the delivery of education to a greater percentage
of the population.
3.4
During the medium term 2002 - 2004, access to Early Childhood education
will be increased to approximately 40 percent. At the early childhood level, a
National Council will be established early in 2002. This Council will work
together with the Ministry of Education in establishing the mechanisms
necessary for co-ordinating the delivery of a nation-wide early childhood
development programme that meets the required minimum standards.
3.5
Given the declining population in some primary schools, efforts will be made
to establish pre-school classes in three (3) primary institutions where there is
sufficient space.
3.6
With regards to secondary education, Government aims to increase access to
85 percent by 2010. In the medium term preparatory work will commence on
constructing additional facilities in the North Windward area.
3.7
The reform of the Technical Vocational and Educational Training System
currently underway will be completed during the period and will provide
upgraded relevant skills for national development, both at the Technical
College as well as through the Multi purpose centres throughout the State.
This will ensure that rural out of school youth and adults are provided with
increased learning opportunities.
3.8
Over the period increased testing, monitoring and the establishment of base
line achievement levels will contribute to the improvement of the quality of
education at the primary level. In addition, Government will implement the
policy which address issues of achievement levels, monitoring, management
and delivery, with regard to Government assisted schools.
3.9 Over the medium term, Government will:
 Complete construction of one replacement and expand three (3)
primary units.
 Introduce foreign languages in 75 percent of all primary schools.
 Complete computerisation of all learning institutions.
36
 Review the Text Book scheme.
 Expand the vocational training programme at the school for
children with special needs.
 Expand the adult education programme to three (3) areas.
 Commence preparatory work in construction of secondary
school facilities in the North Windward area.
 Undertake preliminary work for a national library and construct
library facilities at one primary school.
 Advance the merger of the Community College.

Construction of a Learning Resource Centre and additional
class rooms at the Community College.
 Continue the identification of priority areas and the provision of
financial assistance for tertiary training.
 Commence construction of a modern library facilities and lecture
theatre.
3.1
Youth and Sports
3.1.1 Government’s policy is to ensure the complete integration of youth and sports
in the national development process. Ages between fifteen to thirty, accounts
for approximately one-third of the population and have tremendous potential
for making a positive contribution.
Government in demonstrating its
commitment to the development of the youth, is pursuing a number of
initiatives aimed at addressing the issues affecting young people. These
programmes are intended to prepare them to confront current and emerging
challenges they are likely to encounter. These include:
37
 Programmes aimed at strengthening youth groups.
 The establishment of a Youth Foundation and the adoption of a
National Youth Policy.
 The restructuring of the Youth Department.
 The Youth Empowerment Service (YES), which provides
training and employment for out-of -school youth.
3.1.2
Over the medium term, Government intends to implement a package
of polices aimed at improving the quality of life of the nation’s youth
and ensure their complete integration into the national development
process. These initiatives include:
 Establishment of a National Skills Training Programme geared
specifically for the youth.
 Continuing the outreach programmes targeting specific youth with
limited or no academic skills and training them in areas such as
dancing, languages, craft and sports.
 Upgrading the Handicraft Division of the Ministry of Social
Development to enable it to offer a more comprehensive
programme.
 Collaborating more closely and assisting non-Governmental
organisations which have a track record of developing programmes
designed to improve the entrepreneurial skills of young people.
3.1.3 In the areas of sports and arts Government will embark on the following
initiatives aimed at enhancing the creativity of the citizenry:
 Integrate sports and arts into the school curriculum.
 Provide technical assistance for the sporting associations and
federations.
 Upgrade the physical facilities for sports.
 Commence construction of a National Stadium.
38
4.
HEALTH AND HUMAN SERVICES
4.1
Government’s policy with respect to health is to promote the health and
general well being of the population. This is to be achieved through the
Primary Health Care approach and the Upgrading and Extension of
Secondary Services. During the medium term the emphasis will be on
intensifying public awareness and responding to the life style diseases, which
have become the major contributors to the morbidity and mortality patterns
within the state.
4.2
During the medium term priority will be given to the fight against HIV/AIDS,
through the implementation of the strategic plan designed to increase
awareness among the populace. In addition, emphasis will be placed on
lifestyle diseases such as Diabetes and Hypertension, and drug abuse. This
will be achieved through institutional strengthening of the Ministry of Health as
a regulatory and monitoring body and continued decentralization of the
delivery of health services.
4.3
The issues that will be addressed in the medium term are:
 Improved access to the delivery and quality of primary health.
 Improving the delivery and quality of health care services.
 Attaining and maintaining positive health indicators.
4.4
In the medium term the following will be undertaken:
 Implementation of the Strategic Plan for HIV/AIDS.
 Construction of five rural District Health Centres.
 Redevelopment of the Lewis Punnett Home.
 Extension and Improvement of Services offered at Milton Cato
Memorial Hospital through the completion of the current phase of
activities.
39
 Improvement of the management information system to include
coverage of Hepatitis B and influenza under the immunization
programme in the zero to five age group.
4.1
HIV/AIDS
4.1.1 Government is very committed in its resolve to combat HIV/AIDS and to
offer support to the persons living with HIV/AIDS. To this end Government
has established a cross sectional taskforce, implemented a programme
and budgeted resources within the Ministry of Health and the Environment
to deal with this problem. A national strategic plan based on a unified
multi-sectoral approach was launched in December 2001. The strategies
outlined in the plan are to;
 Strengthen
inter-sectoral
management,
structures and institutional capacity.
organizational
 Design and implement care, support and treatment programmes
for people living with HIV/AIDS and their families.
 Develop and implement HIV/STD prevention and control
programmes with priority given to youth and high risk/vulnerable
groups.
 Conduct research and training programmes.
 Upgrading surveillance systems.
 Implementing advocacy programmes.
4.1.2 In keeping with the above strategies the Government of St Vincent and the
Grenadines will:
 Institute an organized national counselling programme for people
living with HIV/AIDS and their contacts.
40
 Offer grants to non-governmental organizations and community
based programmes, whose emphasis is on AIDS prevention and
support for people living with HIV/AIDS.
 Formulate policies to address stigma and discrimination in the
workplace.
 Provide welfare assistance for needy people living with HIV/AIDS
and their off-spring/orphans.
 Strengthen and support systems for the provision of home care.
 Source funding for provision of antiretroviral drugs.
 Conduct intensive educational programmes aimed at prevention.
 Strengthen laboratory services to offer diagnostic and monitoring
services.
4.1.3 The goals of these strategies are to:
 Reduce the incidence of HIV/AIDS.
 Improve the quality of life of people and families affected by
HIV/AIDS and mitigate the impact of HIV on communities.
5.
HOUSING/SHELTER
5.1
The policy is to facilitate the development of the housing stock. To facilitate
this goal, the under-mentioned will be addressed in the medium term:
 Construction of approximately one thousand (1,000) low-income
houses over five years.
 Continue the one hundred percent (100%) mortgage financing at
the National Commercial Bank (NCB) for public officers on
favourable terms.
41
 Restore and monitor the Buildings Materials Programme to enable
repairs and renovations to houses [in the low-income areas] and in
particular indigent persons.
 The institutional strengthening of the Department of Housing.
 Restructure and strengthen the Housing and Land Development
Corporation (HLDC).
 Enact the Building Code.
 Land title issue: turning dead capital into live capital for housing
particularly among the poor.
 Regularise ownership of land in current squatter settlements.
6.
CULTURE
6.1
In the last period the sector accomplished the following:
 Establishment of a National Cultural Foundation
responsibility for the organization of artistic activities.
with
the
 Commence the refurbishment of Peace Memorial Hall to promote
the development of culture and the performing arts.
 Implementation of the Garifuna Heritage Project.
 Training in drama and dance.
 Introduction of Art Exhibition during Nine Mornings festival.
 The implementation of the
Information” project.
“Retrieval and Storage of Cultural
 Inauguration of Heritage Month, which hosted a series of activities
that focused on aspects of the history of the Vincentian culture,
including the declaration of the first national hero.
42
6.2
Notwithstanding the gains, the crosscutting issues remain:
 Lack of adequate finance.
 Effective public participation.
 Lack of documentation.
 Intellectual property rights.
 Public awareness.
6.3
During the medium term, emphasis will be on the following areas:
 Training of artistes, artisans and managers of artistes.
 Creation of more space to host cultural activities.
 Legislation for Carnival Development Committee (CDC) to become
a statutory body.
 Production of literature on Vincentian heritage.
 Expansion of National Drama Festival to include a regional
component.
 The continued development of the Nine Morning Festival.
 Creating a national sound archive.
7.
THE ENVIRONMENT
7.1
St. Vincent and the Grenadines has a limited resource base that is highly
vulnerable to natural and man-made hazards. Development pressures have
resulted in significant deterioration of the quality of the natural resources. The
major economic sectors, Tourism and Agriculture, cannot exist without
rational use and management of the natural environment. Also, failure to
maintain high levels of environmental quality in this fragile island eco-systems
setting, affect the health and general quality of life of the population.
43
7.2
Government recognizes the importance and the interdependence of the
economy and the ecology. It is cognizant of the fact that the country’s
prospects for social and economic growth and development depend on the
ability to ensure environmental integrity. Hence, the policy with respect to the
environment is one that seeks to protect, conserve, enhance or restore the
natural resources of the country through effective utilization and
management, thereby ensuring sustainable development.
7.3
During the period 2000-2002, there were a few key milestones for the
advancement of the environment. These were:
 Establishment of proper solid waste management on St. Vincent.
 The complete removal of leaded gasoline from the Vincentian market.
 Signed on to a multilateral environmental agreement to phase CFCs
and other ozone depleting substances.
 Signed on to the United Nations’ Framework Convention on Climate
and the submission of a national report to the conference of parties.
 Submitted a Draft Strategy Plan to the Global Environment Facility
(GEF) funding.
 Conducted a sand mining survey.

Held several consultations on the Forestry Development Plan.
 Enacted the Marine Park Legislation.
7.4
Notwithstanding the aforementioned achievements, there are several crosscutting issues that are critical to environmental protection and development
within the country. These are:
 Loss of agriculture lands to housing and squatting.
 Deforestation due to illegal agriculture.
 Mis-management of small ships generated waste.
44
 Tremendous stress on reefs in the Tobago Cays due to poor
management.
 Lack of proper regulation for sand mining.
 Poor management of the aggregate site at Rabacca.
 Lack of public awareness of the importance of the environment to
survival.
7.5
However, over the medium term, the Government will give further support and
commitment to the protection of the environment. Emphasis will be given to
the following:
 Strengthening of environmental legislation and enforcement.
 Promoting national environmental educational programmes.
 Revamping the National Environmental Advisory Board.
 Updating the National Environmental Action Plan in collaboration
with the OECS.
 Finalising the Forestry Development Plan.
 Implementing a solid waste programme in the Grenadines.
7.6
The central challenge for the Government this period with respect to the
environment is one that ensures there exists levels of environmental quality
that would maximise opportunity for economic and social development for
present and future generations, without compromising the integrity and
sustainability of biological diversity, environmental and cultural assets.
8.
CONTRIBUTION OF THE DIASPORA
8.1
Government has articulated its position that Vincentians in the Diaspora will
not be treated differently from those who reside at home in that they will be
allowed to participate in all matters relating to the development of St. Vincent
45
and the Grenadines. As part of this initiative, Government through the
National Insurance Scheme (NIS) has made the necessary changes to the
existing Voluntary Contributors and Persons Overseas legislation towards
realising this goal. Since 1997 the National Insurance Scheme introduced the
Voluntary Contribution legislation along with Voluntary Contributors and
Persons Overseas legislation which made provisions for self-employed
persons to participate in the Fund along with persons who had previously
made contributions of a specified amount and are now residing outside of St.
Vincent and the Grenadines respectively. Recognising the short comings and
also as part of its policy of inclusiveness, the necessary changes to the
legislation will be effected to widen the area of coverage to include all
Vincentians in the Diaspora who qualify to contribute regardless of whether
they had worked in St. Vincent and the Grenadines before.
8.2
The proposed date for implementation of the amendments is 1st July, 2002.
Before this comes into law the necessary administrative arrangements will be
finalised by which the Overseas Missions will be responsible for the
dissemination of the information and for collecting, if necessary, the
contributions on behalf of the National Insurance Scheme (NIS).
8.3
In terms of the Grenadines the NIS will conduct an assessment of the
coverage in terms of the number of employers and employees and the level
of contribution of qualifying persons.This is to ensure that maximum service
is afforded the citizens in the Grenadines. To ensure its success, strategic
alliances will be fostered with relevant Government agencies, private sector
and civil society to facilitate the process.
9.
SECURITY OF POPULATION AND TRAVELLERS
9.1
The security of all persons is important since this is pivotal to social and
economic development.
To guarantee a peaceful, safe and secure
environment Government will embark upon:
1. Improvement to the working and living-in conditions of police
officers.
46
2. Improve the relationship between the police and the general public,
by establishing neighbourhood watches in communities.
3. The establishment and deployment of tourist police at strategic
tourism sites. These police are to be trained specially for this
purpose.
4. The installation of scanners at airports and seaports.
VI.
PROGRAM SUMMARY AND BUDGETARY IMPLICATIONS
1.
PUBLIC SECTOR INVESTMENT PROGRAMME (PSIP)
1.1
Government recognizes the need to ensure adequate provision of social and
economic infrastructure, to not only complement private sector led
development, but to attain and sustain long term development objectives.
The PSIP implementation rate during the past five years has been low. In
2000, the implementation rate stood at 25 percent and increased marginally
to 26.4 percent in 2001.
12
Over the medium term, the PSIP will be restructured to not only achieve
greater efficiency in implementation, but to be more in line with St. Vincent
and the Grenadines' economic and social development goals - higher levels
of growth, employment creation and poverty reduction.
1.3
The thrust during 2002 – 2004 will be on the provision of adequate socioeconomic infrastructure and poverty eradication programmes. During the 3year period, EC$426.6 million will be allocated for social programmes.
EC$184.7 million will be generated from domestic sources and the balance of
EC$241.9 million will be financed from external sources.
1.4
Investment in education represents 10.9 percent of total PSIP expenditure
and is geared towards transforming SVG to take advantage of the myriad of
opportunities that are developing globally. Major projects to enhance this
sector will include Computerization of Schools, Post Secondary Facility II and
47
III, construction of a Modern Public Library and the construction/renovation of
schools.
1.5
The issue of poverty eradication will also receive considerable attention
during this period. Government is committed to improving the living
conditions for the poor and needy, to ensure that every citizen enjoys a basic
standard of living. Development of people is viewed as the pillar for the
attainment of long-term development objectives. Poverty alleviation
programmes, of which the Poverty Alleviation Fund is a key instrument of
intervention, is included in the PSIP, along with other programmes aimed at
improving amenities and efficiency of delivery of social services. Young
persons and vulnerable groups will continue to be targeted as the
Government of St Vincent and the Grenadines addresses the development of
its people to confront the challenges of the 21st century.
1.6
The physical infrastructure for sports will be enhanced by the construction of
a National Stadium at an estimated cost of EC$15 million. The facilities of the
stadium are expected to encourage the youth to develop their sporting
potential, and to utilize their energies in more creative endeavours. The
stadium is also expected to lay the foundation for a sports industry.
1.7
Other major social programmes that are included in the PSIP include
refurbishment and repairs to 8 community centres and the Housing
Development Project (EC$20 million). The housing development project will
be executed over a five-year period. Under this project 1,000 low-income
houses will be constructed.
1.8
Over the medium term, GOSVG will revitalize the agriculture sector through a
number of strategies including revitalization of the arrowroot industry,
development of a comprehensive national plan for crop diversification and
restructuring of the banana industry. Major projects included in the PSIP to
accomplish these objectives include the Tissue Culture Programme, the
Feeder Roads Project and the National Irrigation Project. Under the National
Irrigation Project, 450 acres of farmland in Tourama and 22 acres in Grand
Sable will be irrigated.
1.9
In the area of tourism, significant investment will be channelled towards
developing the infrastructural support base for the tourism industry. The major
project to complement this sector will be the E.T. Joshua Rehabilitation.
1.10
The area of health will continue to receive attention as GOSVG improves the
delivery and quality of health care to all citizens of the state. Improved
48
access and quality to this vital social service is also critical if poverty
eradication is to be realized. In the medium term, clinics will be constructed at
South Rivers, Evesham and Richland Park. Emphasis will also be placed on
institutional strengthening and improved management systems in this sector,
to adequately respond to the challenges of the new millennium.
1.11
National security is a critical factor for the general well-being and economic
development of the SVG. National security will therefore play a more
predominant role during the medium term as GOSVG seeks to maintain the
peace and tranquillity that SVG currently enjoys. Government is committed to
improving the quality of life of its citizens and the attractiveness of the country
to local and foreign investors, despite the menace posed by criminal activities,
including illegal drug trafficking and money laundering.
1.12
Government will therefore be instituting the necessary mechanisms to fight
crime in SVG. In 2002 a White Collar Crime Unit will be established. Other
major initiatives will include completion of the Coastguard Sub-Bases in the
Grenadines and construction of Police Stations at Biabou, Questelles and
Union Island. Renovations to the Calliaqua and Owia Police Stations will also
be carried out during this period. Funds have also been earmarked for the
construction of a modern correctional facility at Boisden.
49
TABLE 3 :
PUBLIC SECTOR INVESTMENT PROGRAMME (PSIP)
FINANCING STRUCTURE (EC$'000)
2002
2003
2004
TOTAL
TOTAL
148,430 169,147
109,055 426,632
DOMESTIC
75,096
65,710
43,880
184,686
Revenue
37,543
25,460
16,367
79,370
Loans
37,553
40,250
27,513
105,316
FOREIGN
73,334
103,437
65,175
241,946
Grants
33,583
46,159
35,650
115,392
Loans
22,080
20,349
19,295
61,724
Financing
Gap
17,671
36,929
10,230
64,830
Source: Ministry of Finance and Planning
2.
MEDIUM TERM ECONOMIC PROSPECTS
2.1
The growth prospects are dependent on development in the productive
sectors - agriculture, manufacturing, tourism and to a lesser extent on
activities in construction. Notwithstanding the national efforts to facilitate
growth in the economy and recognising the linkages which exist with the
global economic system, these national development efforts can only take
place within the presence of an enabling international economic environment.
50
2.2
This is especially as the socio-economic outlook will continue to be tied to the
performance of the productive sectors. The agriculture sector hampered by
falling commodity prices and trade liberalisation will have to undergo
restructuring if it is to remain competitive, while the tourism sector will have to
become more business like in its approach to increase visitor arrivals and the
earning capacity of the sector.
2.3
Notwithstanding the uncertain outlook which confronts the country, the
economy of St. Vincent and the Grenadines is expected to exhibit real growth
of 2 to 3 percent in the medium term. This will be largely on account of
performance in the Agriculture, Tourism, Construction, Other Services and
other sectors. The performance of the economy will depend to a large extent
on:
 The revitalisation of the agriculture sector with emphasis on
restructuring of the banana industry and the substantial completion
of the agricultural diversification efforts.
 Attainment of consolidated public sector savings of between 6-8
percent of GDP.
 Increased earnings in the tourism and offshore financial sectors.
 Maintaining public debt and debt servicing requirements to within
manageable limits.
 Improvement in the implementation rate of the Public Sector
Investment Programme (PSIP).
2.4
The 6 to 8 percent savings is projected to be consolidated public sector fiscal
operations. This savings will be occasioned by:
 Increasing the tax collected by widening the tax base.
 Exercising prudent fiscal management by Central Government and
state enterprises.
 Limiting the growth of expenditure to at least be in line with the
growth of revenue.
51
 Continued reduction of the discretionary exemptions on import duty
and consumption tax.
2.5
The savings generated on the recurrent account will be used in conjunction
with funds from other sources to finance the PSIP. The PSIP is the
instrument by which Government will create the necessary environment for
private sector-led development. For 2002, expenditure on the PSIP is
projected to be EC$148.4 million declining to EC$109.1 million in 2004. This
will largely be on account of significant investments in Transport and Social
Services sectors.
52
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
ANNEX I
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(1) SOCIAL SECTORS
Increase efficiency in the
delivery of social services in
order to improve the general
well being of the population.
(a) Human Resource
Development
 To improve the quality and delivery of  Construction of the Learning Resource Centre 2002 – 2004
at the Community College.
education at all levels.
 Commence construction of the New Public 2004
Library.
Develop human resources to
respond effectively to national
development needs.
 Restructure the management and resourcing 2003 – 2004
of special education.
 To make the education system more  Review and upgrade Primary and Secondary
Schools Curricula in collaboration with 2002 – 2003
relevant to national development needs.
CARICOM & OECS.
 Introduce foreign languages in 75 % of all 2002 – 2004
primary schools.
 Establish the mechanism for private sector 2003 - 2004
involvement in technical/vocational training.
53
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
 To improve and maintain
access at all levels of the
education system.
TIMING
 Construction of Primary School at Peruvian 2002 – 2004
Vale.
 Commencement construction of the Edinboro 2004
Primary School.
 Extension of Owia, Biabou, and Calliaqua 2002 – 2004
primary schools.
 Facilitate the establishment of preschools with
particular emphasis on Dickson, New 2002 – 2004
Prospect and Lowmans Wd primary schools.
 Increase the access to pre-schools to at least 2002 – 2004
40%.
 Continued provision of financial assistance 2002 – 2004
for tertiary training.
 Commence construction of a secondary 2003 – 2004
school in North Windward.
 Extend provision to School for Children with 2003
Special Needs to receive vocational training.
 Expand technical-vocational training.
 Commence reconstruction
Secondary School.
54
2002 – 2003
of Barrouallie 2002 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
 Merger of Technical College, Teachers
College, School of Nursing with the A-Level
College to form the Community College.
2004
 Implementation of regulation for preschools.
2002 – 2004
 Equip all educational institutions with
2002 – 2004
computers and appropriately trained staff.
 Review and Reform the Text Book Loan 2003
Scheme.
 Begin construction of a science laboratory at 2003 – 2004
the Bequia Community High School.
 Integrate Information and Communication
Technology, to enhance management, 2002 – 2004
teaching and learning.
 Automate library system for post secondary 2003 – 2004
facilities.
 Upgrade programmes at the Integrated
Community College and Multi-Purpose 2003 – 2004
Centres.
 To develop an adequately trained work  Develop a national training plan.
force.
55
2002 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
 To improve the level of literacy.
TIMING
 Expand adult education programmes and 2002-2004
improve delivery.
 Collaborate with the social partners in the 2002 – 2004
expansion of early childhood and adult
education.
 Implement a national literacy programme.
2003 - 2004
(b) Poverty Eradication
To eradicate poverty.
 To develop capacity to facilitate poverty  Strengthen social planning capacity in the 2003 – 2004
Central Planning Division.
eradication initiatives.
 Strengthen institutional capacity of
Ministry of Social Development.
the 2002 – 2004
 Implement the programmes of the Social 2002 – 2004
Policy Framework for Poverty Reduction.
 To improve social safety nets for  Expand poverty reduction initiatives
selected communities.
vulnerable groups.
56
in 2002 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
 To empower communities to identify ,  Consult with communities to identify in come 2002 – 2003
generating projects and requisite skills traing
prepare
and
implement
revenue
needs.
generating projects.
 Identify training resources and conduct skills 2002 – 2003
training programmes.
 Provide financing for selected projects, 2002 – 2003
implement and monitor progress.
 Prepare a National
Strategy Paper.
 To encourage
participation in
development.
Poverty
Reduction 2002
greater community  Support farmers displaced by the Banana 2002 – 2004
Restructuring Programme.
promoting national
 Refurbish and repair 8 resurce centres.
2002 – 2004
 Establish resource centres in Gomea, Dickson 2002 - 2004
and Vermont community centres.
 Establish management committees in 18 2002 - 2004
resource centres.
57
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(c) Health
Promote health and general well  To upgrade the quality of health care  Construct Clinics in South Rivers, Evesham 2002 – 2004
being of the population.
and Richland Park.
facilities.
 To improve the delivery of health care.
 Maintain 100% immunization coverage of the 2002 – 2004
0 - 5 age group.
 Continue programme of Primary Health Care.
2002 – 2004
 Intensify public education on Drug Abuse, 2002 – 2004
with special emphasis on the school age
group.
 Implement the strategic plan for the 2002 – 2004
prevention of HIV/AIDS and other STD’s.
 Construct a detoxification unit at the Milton 2002 – 2004
Cato Memorial Hospital.
 To decentralize the delivery of health
services.
 Continue to decentralize the delivery of health
services through improving the Health 2002 – 2004
Information System, and Quality Assurance
in all clinics and rural hospitals.
 Upgrade and equip rural health centres and 2002 - 2004
clinics.
58
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(2) FISCAL POLICY
Prudent management of the
public finance in order to
rebuild public sector savings
to help finance a larger PSIP
(a) Public Finances
 To improve the legislative framework for  Advocate for the passage of the Finance 2002
(Administration) and Audit Bills.
financial management in the public
sector.
 To achieve consolidated public sector  Streamline the operations of the Government 2002 – 2004
Printery, and the Post Office.
savings of 6-8% of GDP.
 Implementation of measures in response to 2002 – 2004
September 11th, 2001 events.
reduction
of
discretionary 2002 – 2004
 To finance at least 40% of PSIP from  Continue
exemptions
on
import
duty
and
consumption
domestic resources.
tax.
 Maintain public debt and debt servicing  Maintain the external debt ratio to within 50%
of GDP and the domestic debt ratio to 20% of 2002 - 2004
to manageable limits.
GDP.
59
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
 To strengthen financial controls and  Develop a system to monitor the operations of 2002
public enterprises on a regular basis.
improve efficiency of the operations of
public enterprises.
 To enhance the efficiency of the financial
management procedures of the Central
Government.
 Continue to review and update charges and 2002 – 2004
fees for Government service.
 Restructure the operations of the BGA,
Marketing Corporation and Arrowroot to 2002 – 2004
make them more financially self-sufficient.
(b) Tax Reform
Widen tax base and simplify the  Improve tax compliance.
tax system.
 To remove
disincentives
productivity.
 Institute new system for property tax.
2002 – 2004
 Further reduce Income Tax rates.
2002 – 2004
distortions that create  Introduce a VAT or a VAT related tax.
to
investment
and
 Continue to improve tax administration.
60
2002 – 2004
2002 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(3) FINANCIAL POLICY
The
Modernisation
and
 To update the legal and regulatory  Introduction of a modern Insurance Act and 2002
development of the Financial
Regulations.
framework for all financial institutions.
Sector.
 Participate in the Regional Government 2002 – 2004
Securities Market (RGSM).
 To promote the continued development of  Improve regulatory framework for non-bank 2002 – 2004
credit institutions.
money and capital markets in conjunction
with the ECCB and other OECS
Governments.
 Enact legislation for the establishment of the
(i) Eastern Caribbean Unit Trust
2002
(ii)
Eastern
Caribbean
Enterprise
Development
Fund.
 To promote the integrity and soundness of
the financial system.
61
 Restructure the National Commercial 2002 - 2004
Bank to divest non-banking services.
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(5) TRADE POLICY
Enhance the country’s
competitiveness in order to
generate increased earnings.
 To
respond
effectively
to
the  Collaborate within the OECS, CARICOM & 2002 – 2004
RNM framework to implement the joint
requirements of international and regional
negotiating strategy towards the FTAA, WTO
trading arrangements.
and COTONOU.
 To integrate and participate effectively  Provide technical assistance to prepare local 2002 – 2004
industries for the CARICOM Single Market
into the CARICOM Single Economy.
and Economy.
 Strengthening of institutional capacity of the 2002 – 2004
Trade Department to address trade and
development issues.
 Collaborate with the private sector in 2002 – 2004
mounting trade and investment missions
abroad.
 To
improve
access
to
and  Provide assistance to manufacturers and agro- 2002 – 2004
processors to attend trade exhibitions.
competitiveness in foreign markets.
 Placement of a Trade and Investment officer 2002 - 2004
in some overseas mission.
 Expand the operations of the Standards 2002 - 2004
Bureau to be more relevant to the needs of the
producers.
62
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(6) SECTORAL POLICY
(I) AGRICULTURE
Facilitate
agricultural
diver-  To increase productivity, efficiency and  Implementation of the Windward Islands 2002 – 2004
sification in order to broaden the
Action Plan
competitiveness.
economic base.
 Certified Farmer Programme
 Irrigation and drainage programme
 High yielding planting material
 Construct a pulverizing plant.
2002 – 2004
 Continue the income tax exemption regime 2002 – 2004
for farmers.
 Construct Palletisation Centres at La Croix.
2002 - 2004
 Expansion of banana tissue culture laboratory 2002 – 2004
at Rabacca.
 Development of feeder roads
2002 – 2004
 Facilitation of small farmer production
through credit, extension and other support 2002 – 2004
services.
 Promotion of non-banana agriculture through 2002 - 2004
the Agricultural Diversification Fund.
63
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
 Modernization of the St. Vincent Marketing 2002 – 2004
Corporation.
 Conduct an inter-censal survey.
2004
 Commence operations of a poultry breeding 2003-2004
unit and hatchery at Peter's Hope.
 To ensure food security.
 Improve genetic stock for cattle.
2003-2004
 Continue the programme of fiscal incentives 2002-2004
for activities in non-traditional agriculture.
 To enhance the foreign exchange earning  Upgrade all fishing centers.
capacity of the sector.
 To promote the sustainable use of
forestry and marine resources.
2002-2004
 Continue the implementation of the Forestry 2002 – 2004
Development and Conservation Plan.
 Increase surveillance of in- shore fishing.
2002 – 2004
 Implement a system for the licensing and 2002 - 2004
registration of fishing vessels.
64
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
(b) Land Use and Land Reform
OBJECTIVES
ACTION PLANS
 To provide security of tenure.
 Develop and implement programmes to 2002 – 2004
measure soil loss in agricultural districts.
Promote the sustainable use of the
land resources.
 To ensure optimum
available land.
TIMING
utilization
of
 Continue the mapping of agricultural lands
through the Geographic Information System 2002 – 2004
to determine land use.
 Development
of
forestry
plantation 2002 - 2004
management and inventory system.
(II) MANUFACTURING
Maximize output for export
and
create
self-employment
opportunities.
 To promote and develop small
manufacturing and agro-based
enterprises.
 Intensify the “buylocal” campaign.
 Develop
additional
manufacturing.
standards
2002 - 2004
for 2002 - 2004
 Provision of credit for small businesses 2002 – 2004
through NDF, NCB and the Development
Bank.
 To facilitate the development of
entrepreneurial skills.
 Strengthening the capability of local agencies 2000 – 2002
to facilitate small business development.
 To promote efficiency and
competitiveness within the sector.
 Provision of technical support to the small 2002-2004
and medium sized entrepreneurs by the Small
Enterprise Development Unit.
 Provision of technical assistance to assist in 2002 - 2004
product development.
65
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(III) TOURISM
Promote
the
sustainable  To attract investment in high quality plant  Revision of the Hotels Aid Act to include 2003
development of the tourism sector
incentives to other tourism services.
and facilities.
to provide the stimulus for
economic diversification and
 Initiate contacts and commence negotiations
sustained growth.
with investors on major tourism development 2002-2003
projects.
 Facilitate the introduction of
standards in the tourism industry.
 To increase visitor arrivals and earnings.
minimum 2002 – 2003
 Establishment of a hubs in Barbados and St 2002 – 2004
Lucia.
 Accelerate joint promotional efforts in the
region with the SVGHTA, particularly for 2002 – 2004
special events, eg. Carnival, Nine Mornings
etc.
 Restructure the cruise ship head tax.
2002 – 2004
 Commence preparatory work on the selected 2003 - 2004
option for jet port facilities in the country.
66
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
2002 – 2004
 To develop a supporting public attitude to  Celebration of the annual tourism month
tourism.
 Continue the programme of public awareness 2002 – 2004
seminars and training workshops for industry
personnel.
 To create and develop a diversified
tourism product based on sound
environmental and social conditions.
 Review and update the National Tourism 2002 – 2003
Policy, inclusive of the Cruise/Marine
Tourism Policy.
 Establishment of a marine tourism task force.
2002
 Preparation and implementation of a master 2002 – 2004
plan for the development of all tourism sites.
 Development of a master plan for the 2003 – 2004
revitalisation of Kingstown.
 Enact the National Parks Authority Law and 2002 – 2004
operationalise the Authority.
 Continue the development of special events 2002 – 2004
such as the Blues Festival.
 To forge linkages between tourism and  Intensify the “buylocal” campaign
other sectors.
67
2002 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(IV) OTHER SERVICES
Development of the services
sector
with
emphasis
on
informatics and international
financial services.
(a) International Financial
Services.
 Complete review of the management and 2002
operations of the Offshore Finance Sector.
 To create a transparent, credible efficient
Stabilisation and enhancement of
and competitive offshore industry.
the offshore financial services.
 Institutional strengthening of the Offshore 2002-2004
Finance Authority.
 Strengthen regulatory framework for offshore 2002-2004
financial services.
 Reform legislation in line with international 2002-2003
standards and best practices.
 Undertake an impact assessment of the 2002 – 2003
Offshore Finance Sector.
 To assist in the economic diversification  Continue promotion of the Offshore Finance 2002-2004
sector in overseas markets.
thrust.
68
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
(b) Information Technology
OBJECTIVES
ACTION PLANS
TIMING
 To achieve full liberalisation of the
telecommunications sector.
 Provision of fiscal incentives for the Services
Sector.
 To further develop the regulatory
framework for the telecommunication
sector.
 Collaborate with other OECS member states 2002
to liberalise the telecommunication sector.
 To facilitate investment in a liberalised
telecommunication sector.
 Develop human resources pool in the  Establishment
Technology.
sector
of
National
Institute
of 2002 – 2003
(7) CONSTRUCTION
Development
of
the  To improve building standards in the  Approve and implement a National Building 2002 - 2004
Codes and Guidelines.
construction sector.
Construction Sector with the
emphasis on Standards and
 Strengthen the Physical Planning Department 2002
Training.
to administer the codes and guidelines.
 To promote
employment.
economic
activity and  Conduct training at all levels of the 2003-2004
construction sector in codes and best
practices.
69
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(8) YOUTH AND SPORTS
Complete integration of youth  To promote the general welfare of youths
and sports in the national
development process.
 Ratification of the National Youth Policy.
2002 – 2004
 Review the Youth Empowerment Service to 2002 – 2004
secure sustainability.
 To ensure the complete integration of
youth into the National Development  Construction of an additional pavillion at the 2002 - 2004
Arnos Vale Playing Field.
Programmes.
 To provide a framework for the  Continue the programme of construction and
lighting of hard courts in rural communities.
integration of sports into national
development.
 Introduce physical education in the 2003
curriculum for all educational institutions.
 Commence work on a National Stadium.
70
2003 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(9) PUBLIC ADMINISTRATION
Strengthening administrative
capacity to implement policies
and programmes more
efficiently.
 To be more efficient in the delivery of  Implement the Performance Evaluation
System for public officers and link this to 2003 – 2004
public service.
salary increases.
 Complete replication of SIGFIS in other line 2002 - 2003
ministries.
 Improvement in the compilation and analysis 2002 - 2004
of statistics.
 To enhance policy formulation.
 Conduct a reclassification exercise for the 2002 - 2003
public service.
 Introduce the new Finance Administration 2002 – 2004
Act and Regulations.
 Implement the New Civil Service Orders and 2002
Public Service Commissions Regulations.
 Strengthen the budgetary process
introducing a tri-annual budget.
by
 To implement programmes in support of  Conduct a diagnostic study for the 2002
implementation of an Integrated Project
economic growth and development.
Management System.
 To eliminate official corruption in the  Introduce the new Audit Act.
public service.
71
2002
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(10) ENVIRONMENT
Protect conserve, enhance  To manage and utilize natural resources  Implementation of the National Physical
Development Plan.
in a way that reduces degradation and
and restore the natural
promotes
preservation.
resources of the country
 Update the National Environment Action 2003
through effective utilization
Plan.
and management, ensuring
sustainable development.
 Preparation of Guidelines and Standards for 2002 – 2003
Environmental Impact Studies.
 Provision of a Solid Waste Disposal Facility 2002 – 2004
for the Grenadines.
 Establishment
of Beaches and Parks
Commission legislation to establish national 2002
parks and protected areas.
 Provision of regulations for the various Acts, 2002 – 2004
which relate to environmental management.
 Develop and sustain public awareness and 2002 - 2004
education programmes on the environment.
72
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
(11)
OBJECTIVES
ACTION PLANS
TIMING
PHYSICAL
INFRASTRUCTURE
AND UTILITIES
 To provide support infrastructure for  Improvement to the E.T. Joshua Airport.
economic development.
to
2002 – 2004
Develop infrastructure
facilitate private sector-led
economic activities and to
enhance air and seaport facilities in  Rationalize the merger of the Kingstown Port 2002 - 2004
ensure adequate service to the  To
and the Campden Park Container Port.
order to improve access to St Vincent and
public.
the Grenadines and to facilitate exports.
 To improve quality and access to social  Undertake investments in power generation 2003 – 2004
capacity in St Vincent and the Grenadines.
services.
 Establishment
Commission.
of
a
Public
Utilities 2004
 Improve water supply on the eastern side of 2002 – 2004
St Vincent.
 Conduct Studies of Water Supply in the 2003-2004
Grenadines
 Conduct a Water Resource Study in St. 2004
Vincent.
73
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
 To improve the road network.
TIMING
 Expand the road/highway rehabilitation and 2002 – 2004
maintenance programme.
 Complete design and begin construction of 2002 – 2004
the trans-island road.
 Upgrade and construct
throughout the country.
feeder
roads 2002 - 2004
 Rehabilitation of the Windward Highway I.
 To improve traffic flow into, around and  Conduct a traffic study of Kingstown.
out of Kingstown including parking in the
city.
 Implement
the
Upper
Bay
Improvement Project.
 Improve conditions of public transport.
74
2002-2004
2002
Street 2003 - 2004
 Conduct a study into additional location for a 2003
bus terminal in Kingstown.
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(12) PUBLIC SECTOR
INVESTMENT
PROGRAMME
Develop
a
Public
Sector  To provide the stimulus for private sector  Strengthen implementation capacity in 2002 – 2004
Investment Programme, which
relevant agencies and ministries.
investment and overall economic
is consistent with the country’s
development.
economic and social development
 Establish a computerised system for project 2002 – 2004
goals.
cycle management.
 Link project identification and selection 2002 – 2004
process to PSIP.
 Review of the project monitoring and 2002 - 2004
evaluation procedures.
(13) DISASTER MITIGATION
AND MANAGEMENT
 To mitigate the effects of natural and  Creation of the National Hazard Mitigation 2002
Council (NHMC)
man-made disasters.
 Strengthening river defenses.
 Conduct training
programmes
75
and
public
2002 – 2004
awareness 2002 - 2004
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
 To enhance the management capacity of  Conduct study on a Kingstown watershed and 2002 – 2003
drainage.
Governmental agencies and nonGovernmental organisations to respond to
disasters
 Retrofitting of 5 health centres.
2002 – 2003
 Retrofitting of 20 emergency shelters
 Conduct an integrated
Management Study.
coastal
2002 – 2003
zone 2002 - 2003
 Institutional strengthening of Ministry of 2002 – 2004
Transport Work and Housing.
 Revision of the National Disaster Plan.
2002 – 2004
 Emergency procedures for the Office of 2002 - 2003
Disaster Preparedness early warning agencies.
76
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(14) HOUSING
Facilitate the development of  To assist low and middle income earners  To continue to provide concessionary 2002 - 2004
mortgage financing for low and middlein obtaining housing.
the housing stock.
income earners.
 Construct low income houses under the 2004
housing policy in: Mt. Wynne/Peter's Hope,
Green Hill, Petit Bordel, Tourama, Reeves
Level, Diamond, Orange Hill & Fancy.
 Institutional Strengthening of the Housing and 2002-2004
Land Development Corporation.
 Provision of incentives to the private sector 2002-2004
for housing development.
 To regularize existing squatter settlement.  To facilitate ownership of lands in current 2002-2004
squatter settlements.
 To regulate and control development of  To provide sites and services in existing 2002 - 2004
squatter settlement.
unauthorized housing settlement.
77
MEDIUM TERM ECONOMIC STRATEGY PAPER 2002 – 2004
POLICY MATRIX
POLICY AREAS AND ISSUES
OBJECTIVES
ACTION PLANS
TIMING
(15) CULTURE
Preserve the cultural heritage  To promote and preserve the nation’s  Operationalise
Foundation.
cultural heritage.
and to harness its economic
potential.
the
National
Cultural 2002-2004
 Incorporation of the Carnival Development 2002
Committee into a legal entity.
 Implementation of a
Retrieval programme.
Garifuna Heritage 2002-2004
 Continue the development and promotion of 2002 – 2004
all national festivals: Carnival, Nine
Mornings, drama, dance and folk festivals.
 To facilitate the integration of culture into  Commence construction of a lecture theatre at 2003 – 2004
the National Public Library.
economic development.
 To develop the entertainment industry  Acquisition of properties for the construction 2003 – 2004
of the Centre for the Creative Arts and the
and organize performing artistes into a
National Museum.
vibrant economic sector.
 Preparation and implementation of a training/ 2002 - 2004
unemployment programme for artistes of
national prominence.
78
ST. VINCENT AND THE GRENADINES PUBLIC SECTOR INVESTMENT PROGRAMME
2002 – 2004
FIGURES IN EC$’000
PUBLIC SECTOR INVESTMENT PROGRAMME
SECTOR
FUNDS
FUNDS
SOURCE
TYPE
TOTAL PSIP
ENERGY
Administration
Bequia Generation Plant
Building & Construction
Generation Expansion - Lowmans Bay, Cane Hall
Information System & SCADA System
Mayreau Power System
Plant Upgrade-Union Island, Cane Hall
Rural Electrification & Street Lighting
Transmission & Distribution
EXTERNAL
Grants Loans
33,583
AGRICULTURE
Agricultural Diversification Project(FAO)
Agricultural Diversification Project(EU)
Banana Palletisation Centres
Construction Of District Offices
Construction of Headquarters - Ministry of
Agriculture
Construction Of Officers' Quarters
Floriculture Development
Forestry Development Project II
Germplasm Development and Conservation
Georgetown Vegetable Market
Land Reform Programme III - Mt. Wynne/Peter's
Hope
Livestock Development
National Irrigation Project
Rehabilitation of Forestry Building
Rehabilitation of Arrowroot Industry
Soil\Water Conservation Project
Upgrade Fisheries Centre
Upgrading New Kingstown Fish Market
ESTIMATED EXPENDITURE
2002
ESTIMATED EXPENDITURE
2003
LOCAL
Rev. Loans TOTAL
39,751 37,543 37,553
EXTERNAL
Grants
Loans
148,430
46,159
LOCAL
Rev. Loans
57,278 25,460 40,250
EESTIMATED EXPENDITURE
2004
TOTAL
EXTERNAL
Grants Loans
LOCAL
Rev. Loans
169,147 35,650 29,525 16,367
TOTAL
27,513
109,055
5,885
0
5,057
0
10,942
8,200
0 4,053
1,000
13,253
7,200
0
1,425
1,000
9,625
0
0
0
0
0
0
0
275
0 1,000
0
0
0
0
0
0
3,500
2,000
275
1,000
0
3,500
0
0
0
0
0
0
0
0
0
0
0
0
835
0
0
0
0
0
0
3,500
0
0
835
730
250
0
0
0
0
0
0
1,000
0
0
0
730
250
1,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,000
0
0
0
0
0
1,000
0
0
0
0
43
0
0
0
50
0 1,705
0
0
0
0
0
0
0
0
0
0
0
0
0
43
2,000
50
2,405
0
0
0
0
1,000
0
2,700
0
0
0
0
0
0
0
0
0
0
40
0
0
550
0
0
0
0
0
0
0
0
0
40
1,000
0
3,250
0
0
0
5,400
0
0
400
0
0
0
0
0
5,000
42,530
605
1,000
1,935
27,614
561
0
1,950
500
8,365
0
0
0
0
0
0
0
0
0
0
4,000
0
0
0
4,000
0
0
0
0
0
6,835
605
0
940
300
90
0
200
500
4,200
0
0
0
0
0
0
0
0
0
0
10,835
605
0
940
4,300
90
0
200
500
4,200
Agric
Agric
Agric
Agric.
Agric
FAO\Local
EU\Stabex
EU\Stabex
Local
Local
Grants\Rev
Grants
Grants
Revenue
Revenue
635
500
0
0
0
0
0
0
0
0
3,000
0
0
150
165
0
0
0
0
0
3,635
500
0
150
165
0
3,500
2,000
0
0
Agric
Agric
Agric
Agric
Agric
Agric
Local
Local
Local
Local
Local
Local
Revenue
Revenue
Rev\Other
Revenue
Revenue
Revenue
0
0
0
0
0
0
0
0
0
0
0
0
0
0
280
100
60
100
0
0
0
0
0
0
0
0
280
100
60
100
0
0
0
0
0
0
Agric
Agric
Agric
Agric
Agric
Agric
Agric
Local
EU/Stabex
Local
Stabex\local
Local
EU
Japan\Local
Revenue
Grants
Revenue
Grants\Rev
Revenue
Stabex
Grants\Rev
0
2,000
0
2,000
0
750
0
0
0
0
0
0
0
0
60
0
50
450
642
0
0
0
0
0
0
0
0
0
60
2,000
50
2,450
642
750
0
0
2,000
0
700
0
0
0
Energy
Energy
Energy
Energy
Energy
Energy
Energy
Energy
Vinlec
Vinlec
Vinlec
Unidentified
Vinlec
Vinlec
Vinlec
Local
Vinlec
Internal
Internal
Internal\loans
Internal\Loans
Internal\Loans
Internal\Loans
Internal
Revenue
Internal
0 22,362
0
705
0
50
0 2,378
0 3,290
0 4,379
0 1,855
0 3,100
0
500
0 6,105
4,625
0
0
2,650
0
0
450
0
0
1,525
26,987
705
50
5,028
3,290
4,379
2,305
3,100
500
7,630
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
79
0
0
0
0
0
0
26,914
0
0
0
26,914
0
0
0
0
0
10,216
605
1,000
1,535
700
561
0
1,950
500
3,365
ST. VINCENT AND THE GRENADINES PUBLIC SECTOR INVESTMENT PROGRAMME
2002 – 2004
FIGURES IN EC$’000
SECTOR
FUNDS
SOURCE
FUNDS
TYPE
TRANSPORT AND
COMMUNICATIONS
Airport Development-E.T Joshua
Capacity Building Project
Emergency Road Rehabilitation Project
Feeder Roads Project
Ferry and Cruise Ship Berth
Grenadines Multi-Project III
JFM Airport Lighting
Labour
Intensive
Road
Maintenance
Programme(Phase2)
Marine Distress& Safety System
Murray's Road Rehabilitation - Phases II & III
OECS Telecommunications Reform Project
Reconstruction of Roads and Bridges - Storm Damage
Rehabilitation of Union Island Airport
Rehabilitation Of Bridges
Rehabilitation Of Windward Highway-Phase I
Rehabilitation Of Windward Highway- Phase II
Resurfacing and Reh'tion of Highways/Suburban Roads
Roseau/Cane Garden Intersection
Traffic Improvement Study-Kingstown
Trans Island Road Project
Upper Bay Street Road Improvement Project
Upgrading of Roads-Villages
Transcom KFAED\Local
Transcom
Local
Transcom EU/Stabex
Transcom Local\Stabex
Transcom
Other
Transcom CDB\local
Transcom
Local
Transcom Local\Stabex
Loans
Revenue
Grants
Rev\Stabex
Loans
Loan
Bonds
Rev\Grant
0
0
29
1,000
0
0
0
3,000
380
0
0
0
7,000
3,000
0
0
0
70
0
0
0
0
200
0
0
0
0 1,000
0
500
420
0
450
0
29
1,200
7,000
4,000
500
3,420
0
0
29
1,000
0
0
0
1,000
5,000
0
0
0
0
700
0
0
0 6,000
200
0
0
0
500
0
0
0
0 1,000
0
0
580
0
11,000
200
29
1,500
0
1,700
0
1,580
Transcom
Local
Transcom
Other
Transcom
Local
Transcom
Local
Transcom
Local
Transcom
Other
Transcom Local\EU SFA
Transcom
Local\EU
Transcom
Local
Transcom
Local
Transcom
Local
Transcom
ROC
Transcom
Other
Transcom
Local
Bonds
Loans
Loans
Revenue
Revenue
Loans
Rev\Grants
Rev\Grants
Loans
Revenue
Bonds
Grants\loan
Loans
Bonds
0
0
0
0
0
0
1,000
0
0
0
0
750
0
0
0
2,850
241
0
0
700
0
0
0
0
0
0
0
0
0
240
0
0
0
400
400
0
0
0
0
0
250
0
0
0
0 1,000
10
0
0
50
0
0
0
0
0
200
240
2,850
641
400
0
700
1,250
0
1,000
10
50
750
0
200
0
0
0
0
0
0
12,000
750
0
0
0
1,200
0
0
0
150
0
0
0
425
0
0
0
0
0
0
0
0
0
0
0
0
0
205
0
0
0
250
0
0
500
0
0
0
0 1,000
0
0
0
0
0
0
0
0
0
200
8,860
3,829 1,021 7,765
21,475
7,600
650
0
0
0
0
0
4,200
0
0
0
2,000
0
100
500
1,500
10
0
0
400
0
150
0
0
3,829
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,667
700
6
0
60
4,577
1,000
0
400
2,180
75
100
700
1,800
610
700
0
400
100
150
250
1,000
0
0
0
0
0
2,000
0
0
0
2,000
0
0
500
2,200
500
0
0
400
0
0
0
0
0
0
0
350
0
0
0
0
0
0
0
0
0
0
0
0
300
0
0
0
0
0
EDUCATION
Basic Education Project
Bequia Community High School-Science Lab
Book Loan Scheme
Barrouallie Secondary School
Branch Library Support
Computerization of Schools
Construction of Peruvian Vale Primary School
Construction of Port Elizabeth Primary School
Construction Edinboro Primary School
Education Improvement Programme
Fencing of Educational Institutions
Labour Intensive Emergency School Repair Porject
Modern Public Library
Post-Secondary Facility II
Post-Secondary Facility III
Purchase of Furniture and Equipment-(2002-2004)
Sandy Bay Secondary School
Tertiary Training Project
Troumaca Primary/ All-Age School
UNESCO Assistance
Union Island Secondary
Upgrading of School Premises-Owia, Biabou, Stubbs
ESTIMATED EXPENDITURE
ESTIMATED EXPENDITURE
EESTIMATED EXPENDITURE
2002
2003
2004
EXTERNAL
LOCAL
EXTERNAL
LOCAL
EXTERNAL
LOCAL
Grants Loans Rev. Loans TOTAL Grants
Loans Rev. Loans TOTAL Grants Loans Rev. Loans
TOTAL
5,779 14,171 1,280 3,460
24,690
15,979
6,275 1,780 8,655
32,689 11,950 7,600 2,430
6,550
28,530
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Educ
Local\CDB
Loans
Local
Bonds
Local
Revenue
Unidentified
Loans
Local
Revenue
Local\ROC
Loans\Grants
Local
Loans
Local
Revenue
Local
Loans
EU/Stabex
Rev\Grants
Local
Revenue
EU
Grants
Local
Loans
Local\Grants Loans\Grants
Local\EU/NIP Loans\Grants
Local
Revenue
Unidentified
Loans
EU/NIP
Grants
Local
Loans
UNESCO
Grant
Local
Loans
Local
Loans
0 2,838
0
700
6
0
0
0
60
0
0
377
0 1,000
0
0
0
400
180
0
75
0
0
0
0
200
0
300
0
600
700
0
0
0
0
0
0
100
0
0
0
250
0 1,000
80
0
0
0
1,000
0
0
0
0
6,600
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
5,100
0
0
0
0
0
0
0
11,700
0
0
1,500
0
0
0
0
0
0
150
0
205
0
0
0
250
0
425
0
12,500
600
750 10,000
1,000
0
0
0
0
0
1,200
350
0
0
200
0
0
0
0
0
0
0
0
0
0
0
0
0
0 300
0
0
0
0
0
0
0
0
1,000
0
0 1,630
0
0
0
0
0
0
250
0
0
0
1,000
0
0
0
0
200
0
0
0
0
250
0
900
10,000
1,000
0
0
1,350
1,630
200
980 5,880
15,110
4,200
1,500
800
3,450
9,950
0
0
0
980
0
0
0
0
100
0
0
700
0 1,100
0
0
0 1,000
180
0
0
0
0
0
0
500
0
0
0
600
700
0
0
0
0
0
0
0
0
0
0 1,000
0
0
0
980
0
350
100
2,700
1,100
0
1,000
2,180
0
0
1,000
2,200
1,100
700
300
400
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
200
4,000
0
0
0
0
0
0
0
0
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
0
0
100
0
0
0
0
0
0
0
0
0
0
700
0
0
0
0
0
0
0
0
0
0
0
0
100
0
1,000
0
0
0
0
300
300
0
0
0
0
0
1,750
0
0
0
0
1,000
100
0
100
0
1,000
0
0
0
0
500
4,300
700
500
0
0
0
1,750
0
ST. VINCENT AND THE GRENADINES PUBLIC SECTOR INVESTMENT PROGRAMME
2002 – 2004
FIGURES IN EC$’000
SECTOR
FUNDS
SOURCE
FUNDS
TYPE
Construction of Clinics-South Rivers,Richland Park
Health Centre-Orange Hill\Overland
HIV/AIDS Management programme
Hospital Information System
Improvement to Primary Health Care- Greggs, Biabou
Health
Health
Health
Health
Health
Loans
Revenue
Revenue
Loans
Rev\Grants
Kingstown Hospital Redevelopment - Phase III
Kingstown Hospital Redevelopment - Phase 4
Lewis Punnet Home Development Project
National Health Insurance Project
PAHO/WHO Project
Purchase of Hospital And Dental Equipment
Purchase Medical Oxygen Generator
Purchase Furniture & Equipment
Upgrading - Mental Health Centre
Health
Health
Health
Health
Health
Health
Health
Health
Health
Unidentified
Local
Local
Local
Local\EUStabex
Local
Unidentified
Local
Local
PAHO/WHO
Local
Local
Local
Local
HEALTH
Loans
Loans
Loans
Revenue
Grants
Loans
Loans
Revenue
Revenue
ADMINISTRATION
Financial Management Improvement Project
Furniture and Equipment For Various Gov't Department
Furniture and Equipment- Missions\Overseas Consulates
Government Offices And Quarters - Canouan
Government Offices And Quarters - Union Island
Institutional Strengthening of Gov't Dept.
Improvement to Offices-Ministry Telecommunication
Integrated Project Mgt System-PSIP
Land Purchase
National Honours
Programme Management And Co-ordination Unit- EDF
Purchase of Building- NY Consulate
Purchase And Installation Of Equipment - Gov't Printery
Purchase of Vehicles-Various Gov't Dept.(2002-2004)
Purchase of Fire & Rescue Vehicle
Reclassification of the Public Service
Reconstruction of Customs & Excise Department
Refurbishment of Building-London
Refurbishment of Office-Inland Revenue
Refurbishment of Government House(MCW)
Rehabilitation Of Ministerial Building
Relocation of Governement Printery
Restructuring of Police Force
Renovation of Building -Clinics & Police Stations
Renovation of Revenue Office - Georgetown
Upgrading District Post Office-Biabou, Layou, Prospect
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Admin
Local
Local
Local
Local
Local
Local
Local
Local\CDB
Local
Local
EU
Other
Local
Local
Other
Local
Other
Other
Other
Other
Other
Local
Local
EU\Local
Local
Local
Loans
Revenue
Revenue
Revenue
Loans
Revenue
Revenue
Rev\Grants
Bonds
Loans
Grants
Loans
Loans
Loans
Loans
Loans
Loans
Loans
Bonds
Loans
Loans
Loans
Revenue
Grants\Rev
Revenue
Revenue
ESTIMATED EXPENDITURE
ESTIMATED EXPENDITURE
EESTIMATED EXPENDITURE
2002
2003
2004
EXTERNAL
LOCAL
EXTERNAL
LOCAL
EXTERNAL
LOCAL
Grants Loans Rev. Loans TOTAL Grants
Loans Rev. Loans TOTAL Grants Loans Rev. Loans TOTAL
2,000
275 1,195 1,937
5,407
600
400 1,500 2,550
5,050
500 2,850 550
1,450
5,350
0
0
0
0
1,900
0
0
0
0
0
0
0
0
0
100
0
0
0
0
0
0
0
0
0
0
275
0
0
0
10
400
0
100
0
0
0
150
0
0
10
400
150
2,000
0
0
0
0
500
100
0
0
0
0
0
400
500
0
200
0
0
0
100
0
100
400
500
100
700
0
0
0
0
500
850
0
0
0
0
0
0
500
0
0
0
0
0
100
0
850
0
500
100
500
0 1,200
0
0
175
0
10
0
0
0
0
587
0
0
400
0
100
0
1,200
0
175
10
100
587
275
400
100
0
0
0
0
100
0
0
0
0
0
300
0
0
0
0
0
0
0
0 1,000
0
0
200 1,000
0
0
0
0
0
450
0
0
200
0
0
0
1,000
300
1,200
0
100
450
0
200
0
0
0
0
0
0
0
0
0
0
0
2,000
0
0
0
0
0
0
0
0
0
50
0
0
0
0
0
0
0
0
1,350
0
0
0
0
0
0
0
2,000
1,400
0
0
0
0
0
0
2,130
3,545 1,950 6,835
14,460
3,530
4,500 2,245 5,700
15,975
1,900
675 1,700
4,025
8,300
0
0
0
0
0
0
0
230
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
900
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
700
0
525
200
0
120
2,000
0
0
0
0
0
400
550
50
550
10
100
100
280
5,000
175
1,000
0
200
450
700
500
525
200
100
120
2,000
300
100
1,045
5
0
0
0
0
0
0
0
0
180
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
2,350
0
0
0
0
0
0
0
0
0
0
0
0
0
1,600
0
0
0
0
0
0
0
1,000
1,900
0
0
0
0
0
600
550
100
650
250
100
0
180
2,000
100
1,000
1,600
200
550
0
0
1,900
0
0
1,000
1,900
0
100
2,610
485
100
0
0
0
0
0
0
0
0
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
900
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
430
100
0
0
145
0
0
0
0
0
0
750
0
0
0
2,000
0
0
0
100
500
0
0
575
0
0
0
0
0
0
0
0
100
800
550
100
0
750
250
0
0
2,000
0
1,000
0
100
500
0
0
575
0
0
430
100
0
0
1,045
0
100
0
400
550
0
50
0
550
0
0
10
100
0
100
0
50
0
0 5,000
0
175
0
0
0
0
0
200
0
450
0
0
0
500
0
0
0
0
0
100
0
0
0
0
300
0
100
0
145
0
5
0
0
0
81
0
600
550
0
100
0
650
0
0
250
100
0
0
0
0
0
0 2,000
0
100
0
0
0
0
0
200
0
550
0
0
0
0
0 1,900
0
0
0
0
0
0
0
0
0
0
100
0
260
0
485
0
0
100
800
550
100
0
0
250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
ST. VINCENT AND THE GRENADINES PUBLIC SECTOR INVESTMENT PROGRAMME
2002 – 2004
FIGURES IN EC$’000
SECTOR
FUNDS
SOURCE
FUNDS
TYPE
Local
Local
ROC
Local
France
CWSA
EU/Stabex
Taiwan\Roc
ROC
Local
EU/Stabex
Local
Local\CDB
Local\CDB
Local\CDB
Local
GEF
IDA/IBRD
CDB
EU\Stabex
Local
Local
Local\IBRD
France\Local
CWSA
Revenue
Revenue
Grants
Revenue
Loans
Internal
Grants
Grants
Grants
Revenue
Grants
Revenue
Rev\Grants
Loan\Grants
Local\Grants
Revenue
Grants
Loans
Loans
Grants
Loans
Revenue
Rev\Loans
Loans\Rev
Internal
COMMUNITY SERVICE
Community Based Projects Initiative
Comm/Serv
Community Development 2002-2004
Comm/Serv
Construction Of Community Centres
Comm/Serv
Crisis Center
Comm/Serv
Dalaway Water Treatment Project
Comm/Serv
Grenadines Water Supply Project
Comm/Serv
Marion House Support Programme
Comm/Serv
Multi-Purpose Center-South Rivers
Comm/Serv
Multi-Purpose Center-Colonarie
Comm/Serv
National Performing Arts Center
Comm/Serv
Reconstruction of Marion House
Comm/Serv
Reservoir Improvement-Union island
Comm/Serv
Rural Development-Community Infrastructure(BNTF-4)
Comm/Serv
Rural Development - Community Infrastructure(BNTF-4) Comm/Serv
Rural Development - Community Infrastructure(BNTF-5) Comm/Serv
Solid Waste Management Improvement Project
Comm/Serv
Solid Waste Management Improvement Project
Comm/Serv
Solid Waste Management Improvement Project
Comm/Serv
Solid Waste Management Improvement Project
Comm/Serv
Solid Waste Management Project-Grenadines
Comm/Serv
Special Development Projects 2002-2004
Comm/Serv
Special Works & Services 2002-2004
Comm/Serv
SVG Emerg. Recovery & Disaster Mgt. Project
Comm/Serv
Windward Water Supply Project
Comm/Serv
Water Resource Study
Comm/Serv
ESTIAMTED EXPENDITURE
ESTIMATED EXPENDITURE
ESTIMATED EXPENDITURE
2002
2003
2004
EXTERNAL
LOCAL
EXTERNAL
LOCAL
EXTERNAL
LOCAL
Grants Loans Rev. Loans TOTAL Grants
Loans Rev. Loans TOTAL Grants Loans Rev. Loans TOTAL
3,794 13,322 2,681 2,454
22,251
4,900 13,649 2,549 1,900
22,998 4,800 5,550 807
1,900
13,057
0
0
10
0
0
0
500
390
500
0
103
0
158
723
1,400
0
10
0
0
0
0
0
0
0
0
0
132
0
0
200
0
0
0
0
0
0
0
1,000
0
0
50
0
0
0
0
0
0
0
0
0
0
0
0
10
0
0
0
0
0
150
0
0
58
0
0
0
504
0
400
0
0
150
0
0
0
0
500
0
0
3,000
0
0
0
0
0
0
0
550
0
200
0
7,772 1,371
0
1,000
0 1,400
0
10
0
82
132
200
10
0
1,000
50
500
390
500
10
103
150
216
1,227
1,800
150
10
500
3,000
0
550
200
9,143
2,400
10
0
0
0
0
0
0
500
100
0
0
0
0
0
0
2,000
0
0
0
0
2,300
0
0
0
0
0
0
100
0
0
160
0
0
0
0
0
300
0
0
0
0
200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
0
0
0
2,200
0
0
0
0
0
0
0
500
0
200
0
7,249 1,279
0
4,000
0 1,400
0
10
0
100
160
0
300
0
200
500
100
0
0
0
0
0
0
2,500
0
0
0
2,200
2,300
500
200
8,528
5,400
10
0
0
0
0
0
0
500
0
0
0
0
0
0
0
2,000
0
0
0
0
2,300
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
550
5,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
200
97
0
10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
500
0
0
1,400
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
2,500
0
0
0
0
2,300
500
200
647
6,400
10
ST. VINCENT AND THE GRENADINES PUBLIC SECTOR INVESTMENT PROGRAMME
2002 – 2004
FIGURES IN EC$’000
SECTOR
FUNDS
SOURCE
FUNDS
TYPE
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Local
Local
Other
Local
Local
Local
Local
Libya
Local
Local
Local
Other
Other
Local
Local
Lottery\Other
Local
Local
Local
Local
Local
Other
Other
Other
Loans
Revenue
Bonds
Loans
Bonds
Revenue
Loans
Loans
Grants\Loans
Loans
Loans
Revenue
Loans
Loans
Bonds
Bonds
Grants
Revenue
Revenue
Revenue
Loans
Loans
Loans
Loans
Loans
OTHER
Coastguard Sub-Bases - Grenadines
Coastguard Base Enhancement
Construction Police Station-Canouan
Construction of Police Stations-Biabou,Questelles,Union Is.
Correctional Facility
Children & Families Legislative Reform
Express Mail Service
Improvements Prime Minister's Residence
National Stadium
Population & Housing Census - 2001
Purchase Of Coast Guard Equipment 2002-2004
Purchase of Equipment - Prisons
Purchase of Equipment-Lands & Surveys
Purchase Of Fire Appliance-2002-2004
Purchase of Equipment- Airport
Recobbling of Streets
Renovation of Peace Memorial Hall
Renovation of Coastguard Jetty
Renovation of Police Stations-Calliaqua & Owia
Restoration of Garifuna Culture
Security System Postal Service
Supply of Post Boxes
Upgrading of Arnos Vale Playing Field
Upgrading of La Soufriere Monitoring System
Upgrading of Community Playing Fields
ESTIAMTED EXPENDITURE
ESTIMATED EXPENDITURE
ESTIMATED EXPENDITURE
2002
2003
2004
EXTERNAL
LOCAL
EXTERNAL
LOCAL
EXTERNAL
LOCAL
Grants Loans Rev. Loans TOTAL Grants
Loans Rev. Loans TOTAL Grants Loans Rev. Loans
TOTAL
900 2,914
657 3,887
8,358
500
2,890
657 6,225
10,272 1,000 7,350
0
6,198
14,548
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
400
0
0
0
0
0
0
0
0
450
0
0
750
0
0
0
0
500
0
0
0
25
225
533
0
0
0
0
0
0
0
0
140
291
83
0
0
90
0
0
371
0
0
0 2,000
25
0
0
174
0
500
0
0
0
200
0
200
108
0
0
0
0
0
0
60
0
132
0
0
50
0
350
0
34
0
0
150
0
100
0
0
0
0
0
0
450
90
371
750
2,000
25
174
500
1,000
200
200
108
25
225
593
132
400
50
350
34
150
100
0
140
291
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,000
0
0
0
0
1,000
0
0
0
25
275
0
0
0
0
0
0
0
0
0
290
300
0
0
0
0
0 1,400
0
0
0 4,000
0
0
0
0
0
500
0
0
0
0
0
200
157
0
0
0
0
0
0
0
0
0
0
0
0
0
500
0
0
0
0
0
0
125
0
0
0
0
0
0
0
0
1,400
1,000
4,000
0
0
500
1,500
0
200
157
25
275
0
0
0
0
500
0
0
125
0
290
300
0
0
0
0
0
0
0
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
750
0
0
0
0
6,000
0
0
0
0
300
0
0
0
0
0
0
0
0
0
0
300
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28
0
6,000
0
0
0
0
0
170
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28
750
6,000
0
0
0
7,000
0
170
0
0
300
0
0
0
0
0
0
0
0
0
0
300
ST. VINCENT AND THE GRENADINES PUBLIC SECTOR INVESTMENT PROGRAMME
2002 – 2004
FIGURES IN EC$’000
SECTOR
FUNDS
SOURCE
FUNDS
TYPE
OTHER ECONOMIC
Capital Subscription (CDB)
Capitalization of New Development Bank
Canouan Development Project
Central Market Area Development
Craft market Development
Equity Investment-LIAT
Human Resource Development - Informatics Sector
Housing Development
Information Technology Services
Incentive Legislation Non-Tourism Sector
Poverty Alleviation Fund
Production of Physical Development Plans
River Defences
Social Recovery Program
Small and Micro Business Development Project
Small Enterprise Development Unit
Telecom Skills Development
Trade Information Resource Centre
UNDP Technical Assistance Project
Value Added Tax Study-Phase 1
Youth Employment Services
TOURISM
Botanical Gardens Improvement Project
Buccament Valley Development Project
Heritage Tourism Project
Mt. Wynne Beach Improvement Project
Nature Tourism Planning And Development Project
Tourism Development Project
ESTIAMTED EXPENDITURE
2002
EXTERNAL
LOCAL
Grants Loans Rev. Loans TOTAL
3,885
750 1,155 6,590
O/Econ.
O/Econ
O/Econ
O/Econ.
O/Econ
O/Econ
O/Econ.
O/Econ
O/Econ
O/Econ
O/Econ
O/Econ
O/Econ.
O/Econ
O/Econ
O/Econ.
O/Econ
O/Econ
O/Econ.
O/Econ.
O/Econ
Local
Other
Other\CCA
Local
Local
Local
Local\Stabex
Local
Local
Local
Local
Local
Local
EU
EU
Local\Stabex
Local
Local\Stabex
UN
CDB\local
Taiwan\Roc
Loans
Loans
Loans\Grants
Loans
Revenue
Bonds
Rev\Grant
Bonds
Loans
Revenue
Revenue
Revenue
Bonds
Grants
Grants
Rev\Grants
Loans
Rev\Stabex
Grants
Grants\Rev
Grants
0
0
135
0
0
0
400
0
0
0
0
0
0
500
500
450
0
10
10
200
1,680
350
0
750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
945
0
440
0
0
0
0
0 1,800
30
0
0 2,900
165
0
0
750
400
0
50
0
250
0
70
0
0
500
0
0
0
0
10
0
0
200
10
0
100
0
70
0
0
0
185
0
Tourism
Tourism
Tourism
Tourism
Tourism
Local
Other
Other\OAS
Local
Other
EU/Stabex
Revenue
Loans
Loans\Grants
Revenue
Loans
Grants
0
0
100
0
0
250
0
250
320
0
375
0
100
0
0
85
0
0
84
0
0
0
0
0
0
ESTIMATED EXPENDITURE
2003
EXTERNAL
LOCAL
Grants
Loans Rev. Loans TOTAL
ESTIMATED EXPENDITURE
2004
EXTERNAL
LOCAL
Grants Loans Rev. Loans
TOTAL
12,380
3,250
2,000 1,380 2,940
9,570
2,000
0 1,720
2,940
6,660
440
750
135
1,800
30
2,900
565
750
400
50
250
70
500
500
500
460
200
20
110
270
1,680
1,480
0
0
0
0
0
0
800
0
0
0
0
0
0
500
500
450
0
0
0
200
800
1,600
0
0
440
0
0
0
2,000
0
0
0
0
0
0
100
0
0
0
0
0
200
0
0
0 2,000
0
0
0
0
0
0
0 1,000
0
0
0
0
0
0
500
0
0
0
0
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
70
0
0
0
0
0
100
0
440
0
2,000
0
100
0
1,000
2,000
0
0
1,000
0
500
500
500
460
0
0
0
270
800
1,700
0
0
0
0
0
0
1,000
0
0
0
0
0
0
500
500
0
0
0
0
0
0
2,100
0
0
0
0
0
0
0
0
0
70
0
0
0 400
0
0
0
0
0
0
0 1,000
0
0
0
0
0
0
0
0
0 250
0
0
0
0
0
0
0
0
0
0
0 100
440
0
0
0
0
0
0
2,000
0
0
0
0
500
0
0
0
0
0
0
0
0
0
440
0
0
0
70
0
1,400
2,000
0
0
1,000
0
500
500
500
250
0
0
0
0
0
2,200
100
250
420
85
375
250
0
0
100
0
0
1,500
100
0
100
0
0
1,500
0
0
100
0
0
2,000
0
0
0
0
0
0
0
0
0
0
0
0
100
0
100
0
0
2,000
0
0
0
0
0
0
100
0
0
0
0
0
0
0
0
0
0
0
100
0
0
0
0
0
ANNEX III
ST VINCENT AND THE GRENADINES PERCENTAGE CONTRIBUTION OF GROSS
DOMESTIC PRODUCT BY ECONOMIC ACTIVITY AT FACTOR COST IN CONSTANT (1990)
PRICES
1997
1998
1999
2000
2001p
Agriculture
Crops
Bananas
Other Crops
Livestock
Forestry
Fishing
12.1
8.4
2.7
5.7
0.9
0.6
2.2
12.5
8.8
3.3
5.4
0.9
0.6
2.2
11.6
8.2
3.0
5.2
0.9
0.6
1.9
12.0
8.5
3.4
5.0
0.9
0.6
2.1
11.2
7.7
2.8
5.0
0.9
0.6
1.9
Mining & Quarrying
0.3
0.3
0.3
0.3
0.3
Manufacturing
8.2
7.3
6.9
6.2
6.1
Electricity & Water
5.6
5.7
5.9
6.2
6.9
Construction
10.5
11.3
10.4
8.9
9.5
Wholesale & Retail Trade
15.4
16.1
16.7
17.7
18.3
2.5
2.3
2.4
2.5
2.4
14.0
9.7
2.8
1.5
13.6
9.8
2.5
1.3
13.6
9.7
2.6
1.3
13.7
9.7
2.6
1.4
13.6
9.8
2.5
1.3
8.5
9.0
10.3
11.1
9.7
9.15
8.9
9.3
9.7
10.2
Real Estate & Housing
2.8
2.7
2.6
2.6
2.7
Government Services
16.5
16.0
16.0
15.4
15.8
Other Services
1.7
1.6
1.7
1.7
1.8
Less Imputed Service Charge
7.1
7.2
7.7
8.1
8.5
100.0
100.0
100.0
100.0
100.0
SECTORS
Hotels & Restaurants
Transport
Road
Sea
Air
Communications
Banks & Insurance
TOTAL
SOURCE: St Vincent and the Grenadines Statistical Office/ECCB
85
(P) Preliminary
ANNEX IV
SUMMARY OF GOVERNMENT FISCAL OPERATIONS (EC$ MILLION) - 1997-2001
1997
1998
1999
2000
2001p
Recurrent Revenue
Tax Revenue
Taxes on Income & Profits
of which : Individual
Company
Taxes on Property
Taxes on Domestic Goods & Services
of which: Consumption Duties
Hotel Turnover
Taxes on International Trade and Transactions
of which: Import Duties
Consumption Duties
Customs Service Charge
Non-Tax Revenue
228.8
197.2
61.0
27.3
26.8
1.8
28.5
6.6
3.8
98.3
23.6
61.7
9.3
31.5
241.5
212.5
72.9
30.4
38.6
2.0
27.8
6.2
3.8
103.5
22.5
66.4
10.2
29.0
256.5
223.9
70.6
31.2
33.1
2.3
31.2
6.1
4.4
110.7
23.9
69.7
10.8
32.8
260.5
227.6
71.5
32.1
36.1
2.3
40.7
7.1
5.2
102.4
22.5
58.6
15.8
32.9
267.4
239.6
69.9
32.9
33.5
3.5
43.9
6.2
5.4
110.9
25.1
64.5
16.6
27.8
Recurrent Expenditure
Personal Emoluments
Goods and Services
Interest Payments
Transfers and Subsidies
196.7
105.7
47.9
12.4
30.7
204.8
111.7
44.6
13.5
35.1
225.2
118.3
52.5
20.1
34.3
240.4
123.2
53.1
25.6
38.4
254.6
127.6
54.5
24.6
47.8
32.1
2.5
0.4
69.4
36.7
20.7
14.5
103.3
31.3
17.5
12.7
63.6
20.2
11.1
9.7
35.1
12.8
6.9
5.9
35.0
Overall Balance
(34.8)
(45.9)
(14.8)
(3.9)
(15.3)
Financing
Domestic
Commercial Banks
Other
External (Net)
Net Amortisation
Disbursements
Amortisation
Change in Government Foreign Assets
34.8
31.8
1.1
30.7
3
3
15.6
(12.6)
-
45.9
14.8
32.7 (143.4)
(17.7)
8.8
50.4 (152.2)
13.2
158.2
13.2 158.2*
25.6
172.1
(12.4) (13.9)
-
3.9
(4.0)
6.1
(10.1)
7.9
7.9
20.6
(12.7)
15.3
(16.5)
(18.2)
1.7
31.8
31.8
46.7
(14.9)
-
Recurrent Account Balance
Capital Revenue
Grants
Capital Expenditure
SOURCE: Ministry of Financ, Planning and Development
* Government assumed responsibility for the Ottley Hall Project Loan in 1999
86
ANNEX V
CHANGES IN THE CPI BY MAIN GROUPS 1997-2001
WEIGHT
1997
% CHANGE
1998
1999
Food and Beverage
597.9
(0.1)
(1.5)
Tobacco and Alcohol
27.9
(0.2)
Clothing and Footwear
77.2
Housing
Fuel and Light
GROUP
2000
2001
(2.9)
0.7
(0.6)
2.3
0.05
(1.0)
1.3
7.0
6.2
(8.5)
0.2
0.1
62.8
0.01
37.5
0.0
0.01
0.03
62.3
0.6
(1.3)
2.1
5.1
(0.7)
31.9
3.7
(10.1)
(4.0)
4.4
(1.4)
Household Supplies
34.3
4.5
5.3
(4.6)
(1.1)
(0.7)
Transport and Communication
37.2
(2.3)
(0.2)
14.3
0.7
0.9
Other - Medical, Education,
Recreation, Personal and
Miscellaneous
68.5
8.9
4.7
0.03
7.6
(3.4)
ALL ITEMS
1000
0.8
3.3
-1.8
1.4
(0.7)
Furniture,
Furnishings
Domestic Appliances
&
SOURCE: Statistical Office
87
ANNEX VI
EXTERNAL PUBLIC DEBT OPERATIONS (EC$ MILLION) 1997-2001
1997
PUBLIC SECTOR DISBURSED DEBT
OUTSTANDING (end of period)
1. Central Government Debt
2. Publicly Guaranteed Debt
DEBT SERVICE PAYMENT
1. Amortisation
(a) Central Government
(b) Publicly Guaranteed
2. Interest Payments
(a) Central Government
(b) Publicly Guaranteed
2000
2001p
268.2
432.2
431.0
454.3
212.3
24.2
247.0
21.2
412.7
19.5
413.3
17.7
437.9
16.4
25.5
25.7
30.7
28.3
31.9
17.2
16.8
15.9
16.0
17.3
12.2
5.0
13.7
3.1
13.2
2.7
13.2
2.8
14.9
2.4
8.3
8.9
14.8
12.3
14.6
6.2
2.1
7.4
1.5
13.9
0.9
11.4
0.9
13.4
1.2
5.8%
6.9%
The Debt Service Ratio is the ratio of debt service to export goods and services
88
1999
236.5
DEBT SERVICE RATIO*
6.7%
SOURCE: Ministry of Finance, Planning and Development
*
1998
6.2%
6.6%
(P) Preliminary
ANNEX VII
BALANCE OF PAYMENTS: ANALYTICAL SUMMARY (EC$ MILLION) - 1997-2001
1997
1.
1999
227.1
(254.4)
(195.3)
(71.0)
(89.6)
A. GOODS & SERVICES
i. Goods
(a) Merchandise
(b) Stores & Bunkers
ii. Services
(a) Transportation
(b) Travel
(c) Insurance Services
(d) Financial Services
(e) Other Business Services
(f) Government Services
(222.0)
(284.3)
(284.4)
0.1
62.3
(44.3)
166.9
(9.4)
15.5
(58.0)
(8.7)
(247.3)
(323.2)
(322.1)
(1.1)
76.0
(47.0)
177.4
(10.6)
22.8
(56.7)
(10.0)
(184.0)
(344.1)
(343.7)
(0.4)
160.1
(49.7)
181.6
(10.6)
35.0
11.8
(8.1)
(66.9)
(246.2)
(247.6)
1.4
179.3
(38.3)
177.9
(8.0)
40.2
11.9
(4.4)
(84.0)
(271.0)
(272.4)
1.39
187.0
(39.7)
185.3
(9.4)
44.0
12.5
(5.63)
B. INCOME
i. Compensation of Employees
ii. Investment Income
(34.2)
0.2
(34.4)
(36.8)
0.2
(37.0)
(53.0)
0.3
(53.3)
(54.8)
0.4
(55.1)
(58.3)
0.4
(58.6)
29.1
1.7
27.4
29.6
0.7
28.9
41.7
2.5
39.2
50.7
7.5
43.2
52.8
8.6
44.2
242.1
282.8
170.0
71.3
85.0
15.9
15.9
0.0
36.0
36.0
0.0
21.1
21.1
0.00
32.6
32.6
0.0
21.5
21.5
0.0
226.2
249.7
4.6
(28.0)
246.8
240.2
(0.3)
6.9
148.9
151.4
(0.3)
(2.3)
38.7
76.1
3.9
(41.3)
63.6
60.2
(1.5)
4.9
(12.1)
(4.8)
34.1
32.2
4.6
2.9
23.6
8.7
32.6
0.0
0.0
0.0
0.0
(2.88)
0.0
0.0
(3.2)
(20.4)
0.0
0.0
1.7
(10.4)
0.0
0.0
1.6
(34.1)
0.0
0.0
0.0
0.0
CURRENT ACCOUNT
C. CURRENT TRANSFERS
i. General Government
ii. Other Sectors
2.
CAPITAL & FINANCIAL ACCOUNT
A. CAPITAL ACCOUNT
i. Capital Transfers
ii. Acquisition & Disposal of NonProduced Non-Financial Assets
B. FINANCIAL ACCOUNT
i. Direct Investment
ii. Portfolio Investment
iii. Other Investment
NET ERRORS & OMISSIONS
OVERALL BALANCE
FINANCING
Change in SDR Holdings
Change in IMF Position
Change in Government Foreign Assets
Change in Imputed Reserves
SOURCE: Statistical Office & Eastern Caribbean Central Bank
89
2000
2001p
1998
(P) Projected
ANNEX VIII
ST VINCENT AND THE GRENADINES MONETARY SURVEY (EC$ MILLION) 1997-2001
1997
Net Foreign Assets
1998
1999
2000
2001p
131.0
179.5
215.4
280.2
254.0
82.1
93.3
11.1
48.8
(30.8)
42.0
72.8
79.6
87.1
7.5
102.5
112.3
9.8
77.0
0.9
61.6
60.7
76.1
82.8
6.8
112.9
131.1
18.2
102.5
25.3
135.2
109.9
77.2
107.6
30.4
147.1
157.9
10.9
133.2
(56.6)
75.9
132.5
189.8
210.4
20.6
164.1
175.1
11.0
89.9
(22.5)
142.6
165.1
112.3
141.5
29.1
313.6
336.5
365.1
355.3
400.9
361.3
65.0
(137.3)
(13.6)
366.6
47.2
(148.3)
(18.8)
410.9
56.0
(146.0)
(44.7)
475.7
62.2
(140.6)
(37.6)
468.6
44.0
(121.0)
(59.9)
0.0
447.2
0.0
486.4
0.0
545.6
0.4
592.1
0.0
605.5
Other Items (net)
(47.7)
(30.0)
(45.8)
(120.3)
(67.7)
Money Supply (M2)
Currency
Demand Deposits
Savings Deposits
Time Deposits
Foreign Currency Deposits
444.6
33.5
95.8
221.7
85.5
8.1
516.1
36.4
114.3
252.0
101.2
12.1
580.5
57.5
125.2
268.8
112.4
16.6
635.5
52.1
160.1
277.5
137.1
8.6
654.9
51.5
167.7
285.0
143.1
7.6
Central Bank (net)
Imputed Assets
Imputed Liabilities
Commercial Banks (net)
External (net)
Assets
Liabilities
Other ECCB Territories
Assets
Liabilities
Net Domestic Assets
Domestic Credit
Central Government (net)
Other Public Sector (net)
Non-Bank Financial Institutions
(net)
Subsidiaries & Affiliates (net)
Private Sector
SOURCE: Eastern Caribbean Central Bank
90