Ladies and Gentlemen, the current Global economic crisis is real. The combination of a food crisis with rice and wheat prices rising dramatically, a fuel crisis with prices rising to over US$ 147 per barrel in July 2008, a slowdown in the world economic growth and now an international financial crisis have contributed to a major economic downturn in the world. Almost everyone has now acknowledged that their economies are in a recession. Even China a country that has been experiencing double digit growth rates is now scaled down to a projected growth rate between 7 and 8 percent. In fact, there is a growing consensus that some of the world’s major economies will experience negative growth during this year. Further, a recovery is not anticipated until the year 2010. We in the Caribbean are not immune to these developments. Almost every Caribbean country is now recording lower tourist arrivals, lower tourist expenditures, lower private investment, and in many cases job losses. Many major investment projects and ambitious plans have been halted in Jamaica, Bahamas, St Lucia, Anguilla and here in Grenada. Many of these projects have been planned around the sale of second or third homes for the affluent. The construction of these projects in many cases was to be financed by pre-sales. Given the credit crunch and the collapse of the housing market, this market has disappeared. The anticipated tighter credit conditions and slower growth will negatively impact government’s revenue and ultimately our ability to meet our policy goals. These include improved health services, better education and safety nets for the vulnerable. These external dictates are impacting when Grenada as a country, has found itself in a highly leveraged position, with a declining productive sector and a structure where ninety cents on every dollar goes to operational expenses and debt. Given this scenario, the challenge is what can we and what should we do as a country? How are we going to respond to what is described as the worst downturn since the great depression of the 1940’s? Ladies and gentlemen, given our history of resilience, our fortitude and strength, I am firmly of the view that together we can rise to the challenge. My Government through our policy agenda has consistently articulated the need for all stakeholders to dialogue and to seek consensus on the way forward for our country. We are happy that you have responded affirmatively. I have listened to the refrain from both the private sector and the labour movement. The time for collective action is now. To delay any further will be to our detriment and the future of our country. We must collaborate and agree on collective measures and sacrifices to deal with our present situation. This is the embodiment of what we articulated as the good governance agenda. The we view as an important prerequisite for meaningful participative development. It is in this context that this forum assumes great significance. While our agenda is specific, I wish to underscore the relevance and importance of this multipartite consultative forum and to draw to your attention some of the key objectives of the Multipartite Consultative Committee. These include: · To engage in dialogue on all major matters of National development especially when the states assets are involved, with a view to arriving at consensus; * To be a dynamic forum for governance putting forward recommendations to Cabinet for consideration; * To facilitate inclusion, participation, good governance, transparency, accountability and facilitate consensus building; * To be an advisory Committee on policy, representing the views of the people on how policy decisions will affect them, such policies should be based on justice, fairness and integrity Ladies and gentlemen, I suggest that these objectives, if achieved will give true meaning to our concept of governance and in so doing deepen and strengthen our democratic process. This occasion presents a unique opportunity to demonstrate our commitment towards building a prosperous Grenada for all. I urge you to maximize this opportunity to bring greater synergies to our collective efforts in the interest of building Grenada. I thank you and look forward to meaningful discussions. From: Office of the Prime Minister INSIDE GRENADA NEWS