Country Sint Maarten has to be innovative where it concerns its development strategies. Creative and thinking outside of the box is a must in moving the country forward in 2014 and beyond. The country no longer receives development aid from the Netherlands and therefore we have to rely on looking at ways and means to financing our own national development. Funds from other sources are still there like the European Union (Development Fund) and its recent approval to finance Dutch Quarter district improvements.
The Board of Financial Supervision CFT recently said that the country’s reserves have decreased significantly, and with the 2014 national budget approved in January, Government can start working on improving its liquidity position, but also increasing the reserve position. In the first half of 2012 the country’s reserves were reportedly around Naf.65-70 million and by mid-June 2013, the country’s reserves had dangerously dwindled down to a reportedly approximateNaf.17 million.
The reserves of a country must be used wisely that will benefit the people of the country in the long-term, and in the event of a national crisis, and the latter one is not able to forecast. A Government must at all times have funds at its disposal to deal with an emergency.
Every effort should be made in the coming five years to build a "Sint Maarten Sovereign Growth Fund." Our pension and health funds have been able to invest part of the funds they collect, but we must move a step further with the creation of another fund which would be a plus for the long-term sustainable development of country Sint Maarten and its people.
Norway, a North European country with an estimated population of 4.7 million has the world’s largest sovereign wealth fund, estimated to be worth US$1 trillion by 2020 and US$3.3 trillion by 2030. The fund was established in 1990. Norway borders Sweden, Finland and Russia. The country is slightly larger than the United States of America (over 300 million people) state New Mexico (one of the 50 states that make up the USA).
Norway has invested its income from its oil and gas reserves wisely. Norway’s Sovereign Wealth Fund holds on average one per cent of the world’s equity market shares and owns more than two per cent of all listed companies making it the largest stock owner in Europe.
In order to learn from country’s who have been very successful in building up growth and wealth funds resulting in the improvement in the quality of life for their people, country Sint Maarten should explore the possibilities and Norway would be a good start. Diplomatic efforts from the Sint Maarten House in The Hague by the Cabinet of the Minister Plenipotentiary should be made to the Norwegian Embassy in the form of exploratory talks.
Norway could also be invited to explore possible investments in the country as well, so besides seeking technical advice on building a "Sint Maarten Sovereign Growth Fund," let’s also consider investment opportunities.
There is so much to be done which also includes moving our richest assets, our human resources upward; taking the segment of our population out of poverty and further improving the quality of life; continuous improvements in education, health care, care of our seniors and young people, are in my opinion the cornerstones of every society.
Health, education and people are the three pillars of country Sint Maarten’s 21st century development. By having a healthy population, you are able to be more productive; in order to be more productive and develop the areas of our economy that would ensure further growth, high level employment opportunities and better salaries for our people, you need an educated work force – lifelong learning; and people are at the centre of country Sint Maarten’s 21st century growth strategy.
As a country we have to synchronize, consolidate and plan wisely to capture the opportunities. We have the institutions of a country; let’s use them wisely to the peoples and country’s advantage. Much has been achieved, and there is still so much more to come.
Going forward, the country has to re-think in order to continue to move upward where it concerns strategies of growth for the people. The creation of a Sint Maarten Sovereign Growth Fund for the people would be further ensuring our country’s national sustainable development.
Roddy Heyliger