The Role of the Public Service in Facilitating Economic Growth & Development
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1 The Role of the Public Service in Facilitating Economic Growth & Development Lessons from Antigua and Barbuda Ambassador Joan H. Underwood 1
2 Outline of Presentation Introduction to Antigua and Barbuda Review of Investment Promotion Initiatives o Cricket World Cup Projects Act, 2005 o Small Business Development Act, 2007 o Investment Authority Act, 2006 o Construct Antigua and Barbuda Initiative (CABI) Discussion of Implementation Challenges and Lessons Learnt The Way Forward Closing Thoughts Ambassador Joan H. Underwood 2
3 Antigua & Barbuda Capital City St. John s Population 89,000 Area sq. km/108 sq. mi Main Economic Earners Tourism & Agriculture Currency Eastern Caribbean Dollar (US$1: EC$2.7) Language English Government Structure Constitutional monarchy with a bicameral parliamentary system of government Independence 1 st November, 1981 Ambassador Joan H. Underwood 3
4 People First Philosophy Significance of the 2004 General Elections First change of government since 1976 Governance Integrity in Public Life Legislation Collaboration Engagement of Civil Society (e.g. NESC) Shift in the role of government facilitator of economic activity Ambassador Joan H. Underwood 4
5 Transition to a Development Oriented Market Economy Investment in human capital Strengthening of political systems, government mechanisms and legal systems Effective use of not only central governments, but also non-governmental organizations (NGOs) and the private sector The establishment of open and competitive and dynamic economy structures to mobilize individual initiative and dynamic private enterprise Ambassador Joan H. Underwood 5
6 Cricket World Cup 2007 New stadiums to be constructed in 8 Caribbean countries; estimated 100K cricket fans expected CWC Project Act, 2005 construction, reconstruction, renovation or extension of a hotel, guest house, villa resort, condominium or upscale residential complex, restaurants, night clubs and catering services Post CWC Feasibility Study Ambassador Joan H. Underwood 6
7 CWC Incentives # Rooms 50: 15 year corporate income tax holiday and 50% relief on land transfer taxes # Rooms > 50: 25 year corporate income tax holiday and 100% relief on land transfer taxes Tax credit for financial institutions based on the level of investment: o X EC$1 Million 1% o $1 Million < X EC$5 Million 2% o EC$5 Million < X EC$10 Million 3% o X > EC$10 Million 4% Ambassador Joan H. Underwood 7
8 Ambassador Joan H. Underwood 8
9 Ambassador Joan H. Underwood 9
10 Small Business Development Act Business 25 employees Capital investment $3 Million Annual sales $2 Million Majority owned by citizens of A&B Published schedule of concessions At least 25% of Government procurement reserved for businesses registered under the Act Loan guarantees and technical assistance Ambassador Joan H. Underwood 10
11 ABIA Act, 2006 Targets larger investors Created the Antigua & Barbuda Investment Authority a one-stop shop for investors Published a schedule of benefits eliminating subjectivity and political graft Tax exemptions can be as high as 75% with concessions being valid for up to 20 years Ambassador Joan H. Underwood 11
12 Over 170 applicants have applied for CABI so far. A total of 110 applicants have been approved. 35 hardware stores and aggregates, 9 financial institutions, 4 insurance companies and a number of contractors are already onboard Architects and attorneys also involved CABI Ambassador Joan H. Underwood 12
13 Challenges Encountered CWC Shortage of construction material Unexpected failure of some popular teams to qualify for finals General Lack of experience and managerial capacity Securing sustained financing Global financial crisis and its adverse impact on tourism Ambassador Joan H. Underwood 13
14 Additional Gov t Support MOU with APUA and WIOC Business startup guide Loan guarantee scheme Technical Assistance and free marketing and publicity Know Your Business series Removal of restrictions on the use of CWC properties Ambassador Joan H. Underwood 14
15 The Way Forward Business Incubator Goal: establish 25 small business in first months Focus: arts and crafts, agro processing, clothing/fashion and packaging Both a process and an environment to support fledgling companies Integrated package of office, admin and management services Production equipment Ambassador Joan H. Underwood 15
16 The Way Forward World Bank Financed TEP & TP Temporary Employment Programme: provide income support to less experienced, unemployed through a temporary job plus a life-skills training module implemented in collaboration with NGOs and CBOs Training Programme: retraining and competence certification to more experienced unemployed Ambassador Joan H. Underwood 16
17 The Way Forward General Interventions Encourage entrepreneurs to form cooperatives to pool resources, spread risk and secure access to capital Labour demand survey identify skills required by the private sector and which can be supplied by unemployed persons Promote the creation and sharing of knowledge Support job creating behaviour not just job seeking behaviour Ambassador Joan H. Underwood 17
18 The Way Forward Public Service Leadership Development Participation in the CIDA-funded Caribbean Leadership Project (CLP) Emphasize the role of the public service in facilitating economic growth and development Increase the level of consultation and collaboration both across ministries and between the public and private sectors and civil society Ambassador Joan H. Underwood 18
19 Closing Thoughts To get the economy going, emphasis must be on strategic positioning of the public sector to drive the process. If you have a lousy public sector then you end up with a lousy private sector, even if it is a step a head. By moving the public service to a higher level, the economy automatically moves to a higher level characterized by HIGH ECONOMIC GROWTH, POVERTY REDUCTION AND IMPROVED HUMAN DEVELOPMENT. [Blessings Chinsinga PhD] Ambassador Joan H. Underwood 19
20 Closing Thought If your actions inspire others to dream more, learn more, do more and become more, you are a leader. [John Quincy Adams] Ambassador Joan H. Underwood 20
21 Ambassador Joan H. Underwood 21
22 Ambassador Joan H. Underwood 22
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