Hurricane season has arrived in the Caribbean, but another type of storm is brewing which threatens the region’s economic potential. To successfully navigate around this, it is incumbent on my Caribbean leaders to adapt and implement bold solutions to secure our futures including those of diaspora living in major hubs including those in Florida.
The aftermath of the global pandemic, war in Europe and the Middle East and economic uncertainty brought about by changes in U.S. foreign policy, have combined to create the greatest test for the Caribbean in recent history.
COVID-19 was a wake-up call. It reinforced the significance of tourism to our regional economies — in some cases responsible for almost 90% of total GDP.
As the pandemic waned and visitors gradually returned, wars thousands of miles away in Europe and the Middle East threatened to upend our recovery efforts.
For a small island economy like Nevis, we rely on importing much of our produce. War in oil-rich lands increases fuel prices and transport costs which in turn dramatically increases living costs for Nevisians.
Global tariff and trade shocks and wider economic uncertainty threaten to reduce visitor numbers and citizenship-by-investment (CBI) revenue, threatening our principal revenue sources.
Although such revenue may recover, we cannot be certain and so must look to shift the dial through our own innovative solutions.
This combination of factors has seen experts from the IMF and World Bank respectively express alarm, calling on regional leaders to recalibrate economic strategies and introduce bold growth solutions.
One of my great responsibilities as Premier of Nevis is to grow the island’s economy and seek to insulate our people from exogenous economic shocks. Ultimately, I endeavor to transform our 36-square-mile island into one of the world’s best places to live, work and raise families.
I believe this turbulent period is actually a major opportunity and that we must heed the advice of economic experts and explore new innovative growth pathways, diversifying our economies.
If successful, we will for the first time in many years be in control of our own destiny.
In recent years, Nevis has sought to attract significant foreign investment in a range of sectors including renewable energy. We are blessed with significant geothermal potential and are working hard with global partners to unlock this and make our federation energy self-sufficient and a world leader.
Now, however, we must go further.
In August, St. Kitts and Nevis passed the Special Sustainability Zones (SSZ) Authorization Act, a landmark piece of legislation and the first of its kind globally. In the coming months, I anticipate major progress to be made as we embark on our exciting future.
We have always been a pioneering nation as evidenced with our introduction of the first CBI scheme in 1984 which has since become the regional norm. This law is the latest in our efforts to address fundamental challenges in our own unique way, placing our citizens’ interests above all else.
The SSZ Act will enable the creation of sustainable zones in defined geographic areas, much like existing special economic zones, only developers must abide by strict environmental regulations. This includes the generation of a majority of energy by renewable means with no detrimental impact on the local environment.
This is a marked change from the region’s current reliance on diesel generators and demonstrates our ability to leverage technological innovation to advance our economies.
Already we have seen significant interest, with one proposed zone in Nevis forecast to generate thousands of lasting jobs, USD $100m in annual revenue, billions of dollars of wider investment into our economy and major opportunities for Nevisian and international businesses including those in the US.
Revenue will prove essential for current infrastructure projects including the enhancement of school and hospital facilities and our airport which could soon serve major North American destinations including those in Florida and New York directly, further enhancing economic productivity. It will also help the island’s environment, by countering coastal erosion and protecting ancient monuments.
I believe, if successful, this Nevisian model can be exported throughout our region. Reliance on overseas aid can be reduced, resilience to external shocks can be enhanced and ultimately our futures can be secured.
The Caribbean finds itself on the precipice. We must ensure our future is in our own hands and that we adapt our economies for the benefits of our own people. It is only through new plans for growth and strategic partnerships that we can deal with our current challenges.
Caribbean resilience is nothing new. I believe that with the right approach, the region will stand tall against the current challenges we face.
In my own country and island, we have our plan which we are sure others will follow. Now is the time to lead from the front and be bold to not just survive, but to thrive.
Mark Brantley is the Premier of the Caribbean island of Nevis.
