Statement by Prime Minister Hon. Tillman Thomas At the launch of the Grenada Investment Generation Strategy Grenada Grand Beach Resort April 26th, 2012: I am pleased to accept the Grenada Investment Generation Strategy on behalf of the Government and people of Grenada. For the last four years my administration has been engaged in a strategic approach to transforming the Grenadian economy as a means of providing a superior and sustainable quality of life for all of our citizens. The objective is to create a society that gives each citizen of Grenada a stake in our country. It recognises the fundamental strengths of our people – a strong sense of community; a deeply held faith in a benevolent creator who has showered us with blessings; a creative people with potential to be facilitated and unleashed. For us in this Government, economic policy is a means to an end and not an end in itself. Therefore any economic policy, any strategy, needs to be founded on the principles of fairness and concern for Grenadian people. As a government, everything we do much come back to this very basic tenet. Our efforts at transforming the economy and making the impact we want on the wider society is taking place in a very challenging national and international economic context. By 8 July 2008, we were seeing the weaknesses that were emerging in the national economy, marked by inadequate focus on informed and innovative intervention within the context of a long-term, strategic and sustainable framework. As we all well know, by the fourth quarter of that year, after we had been in office less than six months the international economy started to experience the greatest contraction since the Great Depression. At the beginning of 2010 it was estimated that the US economy, the engine of the global economy, had shrunk in the last quart of 2009 by 3 per cent. That was seen as a catastrophic hit. That figure was later revised to more than 9% I have rehearsed this economic history to set the context of our policies. Context is important and we ignore it at our peril. We have had to ride on parallel tracks over the last four years. On the one hand we needed to provide the people of Grenada with immediate relief in the face of the contracting economy. It was important to cushion the impact of the international contraction on the average citizen and prevent a more precipitous decline in the economy. On the other hand, we had to make sure that we were putting in place a framework and the strategies that would reduce our vulnerabilities. In the international system as it now operates, while it is possible for us to receive assistance of various kinds from friendly countries and international agencies, it is clear that the only sustainable course of action for us is to make sure that we are in control of as much of our destiny as possible. Over the last four years, this new pattern of economic governance that we are fostering began to take hold and demonstrate benefits for Grenada. Our programme of improved economic governance is designed to create conditions in Grenada which will make the country more conducive to the high levels of productivity and international competitiveness. Our stated objective is to move the country from an over-reliance on two sectors to a more diversified foundation. After careful study we have identified the five sectors that we believe have the greatest potential to transform the economy. At the same time, we have been addressing the fundamentals of the business operating environment in the country. Our objective in this regard is the reduction of the transaction and hassle costs of doing business in Grenada. Our programme of action included: The Investment Promotion Act in 2009. This omnibus legislation brings together several diverse pieces of investment-related legislation and is in keeping with international good practice for attracting investment. Streamlining and improving the process of trade through the introduction of the latest version of the Automated System Customs Data or ASYCUDA World. This will reduce the transaction cost of both exporting and importing and will have an impact not only on the cost of production in the country, but will also impact on the cost of goods and services to consumers. Upgrading the processes at the Grenada Bureau of Standards. This will go a long way toward increasing the marketability of goods produced in Grenada as we become more compliant with technical standards for trade and make the certification of that compliance more transparent and user friendly. Revising the process of establishment and registration of businesses. Upgrading the information technology capacity at the Inland Revenue Division . With the assistance of the European Union we have started to review the regime for incentives and concessions. We expect that we would have a more transparent framework to give greater confidence to both domestic and international investors in our country. We have recognised that sustainable economic development is not a function of just the Government, but requires strong partnerships. Indeed, one of the early innovations of this Government was the establishment of the Office of Private Sector Development, which drew on the best talent in the private sector. The establishment of this Office represents our commitment to public-private dialogue and partnership and has borne fruit. As you may all be aware, when the government’s transformational strategy was announced in the 2011 budget statement, and the five transformational sectors were articulated, a decision was also taken to establish a working committee for each of the sectors to address the specific sectorial requirements for productivity and competitiveness. This work is continuing. It is in this overall context that I happily accept the Grenada Investment Generation Strategy. I want to express my thanks and appreciation to all the persons who have worked on this framework, especially those whose contribution was based on their sense of dedication to our country. Ladies and Gentlemen, this is the first time in our country’s history that we have taken a robust and rigorous strategic approach to investment generation. As I receive this strategy on behalf of the Government and people of Grenada, I want to make clear a number of things. First, this is only the beginning of the process. The preparation of the strategy only gives us a road map that we must follow. I therefore charge the Grenada Industrial Development Corporation and all the other agencies that form part of the national investment generation system to ensure that this strategy does not become a collector of dust on some shelf in an office. Let us use it as a tool to inform the way we would operationalise our activities toward a common goal. I recognise that there are some serious challenges involved. I know, for example, that some of the agencies involved in the investment generation process have important regulatory and even national security responsibilities that cannot be compromised. In good governance we do not only do the easy things, we do the necessary things. My expectation, therefore, is that the talented public servants in these agencies will recognise the importance of weighing all factors and find within their mandates, the best way to balance the competing demands made of them and their agencies. When Cabinet received the presentation of the investment generation strategy, one of its features that immediately appealed to me and gave me a great deal of satisfaction was the focus on domestic investment. This certainly is a central aspect of the strategy and one that I will take an especially personal interest in. We recognised that given the size of the national capital market, such as it exists, we cannot rely solely on domestic investment to drive the economy. At the same time, however, we are also clear that Grenadians must have a stake in the growth of the productive capacity of our country. This is for a number of obvious and compelling reasons. First, and most obvious, it is the right and just thing to do. Second, it is clear that investments by citizens of Grenada would most likely be more committed to Grenada. They would be less enthralled by concessions and incentives and would have a lesser motivation to relocate when incentives and concessions are exhausted. My charge to the GIDC and the rest of the investment generation system is that domestic investors must be treated and facilitated as least as well as foreign investors. Special care must be given to ensure that domestic investors are empowered, particularly in those sectors and niches which can draw on the creative, tacit knowledge, cultural capital and other attributes and assets that come from being Grenadian. Ladies and Gentlemen, Grenada is a small country. We operate in a big world with immense challenges. We are a resilient people. We have been through much, but the indomitable Grenadian spirit always perseveres, always strives, always thrives. I am pleased that we have this strategic framework to overlay and inform our actions as far as investment generation is concerned. I look forward to the benefit of common focus as we work, under God, to build a better Grenada. I thank you.