Christina Scott
There has been lively debate in Anguilla following the UK Department for International Development (DFID)’s announcement that over the next five years it will fund US$75m on development programmes in five Caribbean countries: Antigua and Barbuda; Dominica; Grenada; St Lucia; and St Vincent and the Grenadines.
I’ve been asked how these countries were selected, why Anguilla was not included, and if it is true that Anguilla would be more likely to receive development aid from the UK and other countries if it were independent. So I wanted to explain the announcement, and how it sits alongside the UK’s commitment to support the economic growth and jobs agenda in Anguilla.
First, some background. The United Nations has agreed an ambitious target of developed countries spending 0.7% of their ‘gross national income’ (GNI – essentially a measure of the country’s income) on international development to help the world’s poorest people. This year, the UK became the first G7 country to meet that target. We are proud of this achievement. It underlines the UK’s commitment to promote stability and sustainable development, and to end extreme poverty and aid dependency through growth and jobs.
All countries benefitting from the recent announcement are eligible for what is known as ‘Overseas Development Assistance’ (ODA). Eligibility is decided by the independent Organisation for Economic Cooperation and Development (OECD) in Paris. Their assessment is based on official statistics gathered from the World Bank, the International Monetary Fund and the UN, which in turn comes from statistical data provided by each country (including Anguilla).
To quality for development aid, countries need to have a per capita gross national income of less than US$12,275. The OECD classifies Anguilla as a ‘high income’ country. In 2012, Anguilla’s GNI was US$19,894 per person. In the five years before 2012, it averaged US$22,778 – roughly three times that in the majority of the countries about which the recent announcement was made.
This OECD classification explains why St Helena and Montserrat, both UK Overseas Territories that fall below the US$12,275 threshold, are receiving DFID aid funding. It also explains why St Kitts and Nevis, Bermuda, and the British Virgin Islands – all above the OECD’s threshold – are not in receipt of aid. In other words, whether a country is independent or not has no bearing on aid eligibility. An independent Anguilla would therefore not automatically be eligible for UK aid programmes, or indeed the aid programmes of other OECD countries.
I am very aware, despite the fact that Anguilla is classified as a high income nation by these global measures, that there are many who are struggling to make ends meet. For too many it is a challenge to feed and clothe children, and to pay for everyday essentials such as electricity.
This income inequality is a challenge faced by many developed countries, including the UK. So while there are positive signs the Anguillian economy is picking up, this sadly doesn’t immediately translate into a better financial position for everyone. So we have to continue to do everything possible to create jobs, improve the efficiency of public services, equip our young people with the right skills and education, and ensure we build the best platform for prosperity.
But it is also true many other countries in the region are not as comparatively well off as Anguilla. It is a genuine testament to the resilience and strength of the people of Anguilla, and the island’s progress in the last four decades, that since 2003 Anguilla’s wealth has exceeded and remained well above the threshold for ODA, even throughout the economic downturn.
As I have said before, the UK Government is as ambitious for Anguilla as it is for the UK. That is why, despite its ‘high income’ classification, Anguilla continues to receive support from the UK. For example, this year I have been working with Ministers to spend a UK infrastructure grant of EC$12 million, which is already repairing schools and providing essential equipment for the police and fire services.
The UK also supports capacity building in the public services, paying for a number of training events and secondments. We have supported the Community College by granting EC$500k to establish a Vocational Training Centre. Environmental projects in Anguilla have benefitted from direct funding. And each year my office directly funds a substantial number of smaller projects for the voluntary and private sectors. Further, as the Chief Minister heard from UK Ministers last week, DfID will continue to provide technical assistance to Anguilla.
The UK is also a substantial contributor to the Caribbean Development Bank. This has loaned Anguilla significant sums for infrastructure projects, including a new venue for the Anguilla Community College. Finally, Anguilla has also benefitted from considerable support from the European Union through its development fund for overseas countries and territories, because of its association with the UK (Euro11.7 m in 2008-13).
As the Minister for the Overseas Territories, James Duddridge MP, made clear when he met the Chief Minister in London last week, the UK is proud of the relationship with Anguilla. It is ambitious for Anguilla’s economic stability and growth, and wants to see it flourish. It is also proud that it seeks to assist some of Anguilla’s less well off neighbours to grow their economies and create jobs.
Development aid is not just something countries do out of a sense of pity or obligation. The genuine economic rationale is that by raising living standards of those less well off than ourselves – wherever they are in the world – there is long term benefit for everyone.
This approach is why the UK is keen to assist the lower income Eastern Caribbean move closer to what Anguilla has already achieved economically. It is also why I will continue to work with Ministers, the public service, the private sector and civil society to grow Anguilla’s economy.
The goal is a prosperous Anguilla in a prosperous Caribbean. I am confident it is a goal behind which all of us can unite.
