By Marie Claire Williams From Caribbean360

MONTEGO BAY, Jamaica,, CMC – A two-day High Level Caribbean Forum began here on Thursday with Jamaica’s Finance Minister Dr. Peter Phillips warning that sustainable growth and development in the Caribbean will not be possible without a coordinated global effort to assist the region.

Phillips told the International Monetary Fund (IMF) sponsored forum that the impact of the 2008 global financial crisis has had a severe impact on Caribbean countries, and the effects were still lingering.

“When coupled with the high debt that many of these countries are experiencing, the impact manifests in low or no economic growth,” he said, pointing to some Caribbean countries that have either entered into programmes with the Washington-based financial institution or are working with the Fund to lessen the impact of the crisis.

However he noted that fiscal consolidation limits the ability of any government to support growth and that while there have been signs of support, particularly in the areas of climate change and gender affairs, much more is needed.

“For example, a regional strategy for energy needs to be placed on the table,” he said, noting “there have been public announcements on increased support for middle income counties, a moniker which inadequately describews the realities we in the Caribbean face.

“While Caribbean nations unequivocally qualify as small island states, the support provided up to now, relative to similar regions, has been largely in rhetoric than performance,” Phillips said, adding that it is now necessary to revisit the foundations of regional endeavours and arrangements.

“It is time we look at the current CARICOM (Caribbean Community) taxation treaties and discuss the Common External Tariff. Regionalism needs to not only induce growth but must be equitable.

“With the limitations all regional governments face, it is important that we continue to encourage the private sector to look at the opportunities that exist, and to invest in the region’s future.

“It will require, in some cases, a new way of doing things; being innovative; exploring new markets, focussing on products that are higher up the value chain, and products that are particularly for export,” The Jamaica finance minister said, telling delegates it is important to continue the dialogue with the international community on refining the support necessary to ensure the Caribbean region escapes the trap of low growth and under-performance.

The IMF Deputy Managing Director, Min Zhu told the conference being held under the theme “Unlocking Economic Growth” that the Forum presents an important platform for collaboration and for advancing solutions to the key challenges facing the region.

He said last year, the conference took a comprehensive approach to the growth challenge and the agenda for this year has been streamlined to cover three specific topics,” to permit us to drill down in greater detail into the issues that have the biggest impact on growth, and where barriers and impediments may be inhibiting growth in the region”.

Zhu said that a wide range of experts had been invited to participate in the two-day event and that the “IMF will be in “listening mode”, and we hope to learn from the region about how to tackle these challenges, and about how the IMF can be of assistance”.

The conference here, which is being attended by finance ministers, central bank governors and other stakeholders within the financial sector, will discuss the energy sector which Zhu said is an important factor in addressing competitiveness in the Caribbean.

“Caribbean countries are extremely dependent on imported oil for the generation of electricity and transportation. Many believe that there is potential for the use of other sources, including sustainable energy alternatives.”

The Forum will also examine the role of private sector investment, the engine of economic growth and employment, and how it is taxed.

“We will focus on developing a more appropriate tax regime for the region, and in particular for investment. At present, the array of tax incentives offered in the Caribbean to attract investment has become wider and increasingly complex.

“This is an issue of great policy significance because, besides eroding the tax base in a way which is expensive for the budget, such incentives can distort investment decisions—all to the detriment of the collective good,” the IMF official said.

Zhu said the IMF has analytical expertise in this area and has collaborated with a number of countries in the region.

But he said the Forum will benefit especially from the perspectives of successful reformers and other partner international organizations as well as investors themselves.

“That said, the key to a successful discussion will be to hear from Caribbean policymakers about what reforms are realistic within the Caribbean context,” he said, adding “I also pose the question of whether there is scope for a collaborative approach to limit costly tax competition, since I believe the region would be in a better position to negotiate successfully with investors if it could speak with one voice”.

Zhu said that the Caribbean Forum has evolved into a genuine dialogue and partnership between the region and development institutions and the third area of focus this year would be the importance of a robust financial system for sustainable economic growth.

“We have seen from crises elsewhere how difficult it is for countries to grow if the banking system is under threat. Hence, maintaining strong banks and safeguarding financial stability are key prerequisites for delivering better Caribbean growth”.

IMAGE: JAMAICA’S FINANCE MINISTER DR. PETER PHILLIPS (FILE PHOTO)

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Peter Phillips’ principle for ‘prosperity’

By Vinette K. Pryce From Caribbean Life

While visiting here on a three-day visit Peter David Phillips, Jamaica’s finance and planning minister became the 10th speaker to keynote the 10th anniversary Caribbean International Network (CIN) Lecture Series and for the significant milestone achievement, the parliamentarian talked about “Jamaica’s Path To Prosperity.”

“Jamaica’s success is your success,” he told a mostly diaspora audience at the Schomburg Library.

Dominated by Jamaican ex-patriots concerned with issues on the economy, many were prepared to ask the government representative about everything from the diminishing dollar exchange rate, the process of opening a bank account on the island, and the intricacies surrounding loans from the International Monetary Fund (IMF).

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“Jamaica’s economic situation is not unique,” Phillips responded, “the entire CARICOM is familiar with the process and “more than half have similar situations.”

He said that since 2008 the entire Caribbean has been overwhelmed by the global events caused by recession. Adding that the “Caribbean debt is not so large as to affect global market” because of its middle market state status, Caribbean and the diaspora community is important to the decision making process.”

“The foundations have been truly made. We have a growing political influence.”

On the second anniversary of Hurricane Sandy, Phillips alluded to special concerns the region faced with regards to climate change and the annual uncertainties that prevail from May to November when hurricanes threaten.

He particularly cited the tragic earthquake that killed many in Haiti and how it might have affected that economy.

In his bad news good news report, Phillips explained some of the economics impediments the nation has faced since gaining independence in 1962. He said slow economic growth was a major issue. The fact since 1973 there has been little growth and the public debt has increased 600 percent weighs heavily on the minds of fiscal planners.

With internal resources draining from the $25 billion national reserve (GDP) debts from loans accounts for more than affordable amounts needed to serve the public. The good news he said is that the country is “debting down and trending forward.”

The “Ease in Doing Business Report” by the World Bank recently ranked 189 countries. For 2015 Jamaica registered a major improvement by moving 27 places from the 85th position it held in the 2014 report to now being ranked 58th. Jamaica now has the Caribbean’s highest ranking.

Catherine Holder

Countries within the Caribbean ranked included: The Caribbean region includes the following economies: Antigua and Barbuda, The Bahamas, Barbados, Dominica, the Dominican Republic, Grenada, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago.

“We are encouraged by Jamaica’s new global competitiveness standing which highlights that we are open for business,” Phillips stated. “It is clear evidence that the present positive movement in our competitiveness is associated with our sustained program of comprehensive economic reforms which we started approximately two years ago.”

He accounts the positive change to agriculture, tourism, mining and improvements to bond yields. He added that interest rates were down to three percent with improvements in youth unemployment. Phillips said the exchange rate has stabilized and with a recently obtained $800 million loan, the island managed to negotiate the lowest interest rate ever.

Illiteracy Phillips said now stands at less than 10 percent. Initially three out of 10 individuals were considered illiterate.

According to the legislator, the island now boasts an “enviable primary health care system, world class telephone service, free and fair media, freedom of expression, a competent judiciary, iconic cultural artists” – Usain Bolt, Bob Marley, Shelly Fraser-Pryce, and Victoria Campbell Brown and others.

“You don’t have to be born with a silver spoon in order to benefit from the golden promise,” Phillips said.

Congresswoman Yvette Clarke described the minister’s message as “heartwarming.”

Representing Brooklyn’s 9th CD, Clarke was tasked with welcoming the minister but arrived late and late in the program injected a few contributions she along with colleagues in the Congress made by meeting with IMF officials to secure a loan to the island.

Other speakers included Lowell Hawthorne, CEO of Golden Krust Caribbean Bakery & Grill, Maureen Hayden-Cater, president of First Global and Stephen Hill, CEO of CIN TV.

Previous keynote speakers include: Robert Hill, Prof. Rex Nettleford, former Prime Ministers Edward Seaga, Percival James Patterson and Bruce Golding, Ronald Thwaites, Member of Parliament, Greg Christie, former contractor general, and Lowell Hawthorne and Douglas Orane, businessmen.

During his visit, Phillips toured the New York Stock Exchange, addressed a luncheon organized by the Jamaican American Chamber of Commerce and attended a promotional breakfast hosted by JAMPRO. He was also interviewed on CNBC –TV. IMAGES:

Peter David Phillips, Jamaica’s finance minister speaking at the CINTV lecture series. Photo by Leonard Mckenzie

Jamaica’s Finance Minister Peter David Phillips greets Congresswoman Yvette D. Clarke.

For more on this story go to: http://www.caribbeanlifenews.com/stories/2014/11/2014-10-30-vkp-peter-cl_2014_11.html