THE RECENT announcement of the impending closure of CIBC FirstCaribbean Bank operations in Anguilla is another sad installation in a river of bad news that is drowning economic life in the territory. While for the bank it is an understandable business decision, it is indeed another symptom of the ongoing national economic malaise.
With is many consecutive quarters of economic failure, Anguilla is midst of a recession of sorts, though the powers that be have failed to characterize it as such. But by its own reporting, the government stated during the budget debate this year that earnings will be down; investment in the tourism sector anaemic; and the economy will face another year of negative growth.
Additionally, this government faces a fiscal crisis, heightened by projected revenue losses, as outlined in the budget presented earlier this year; and with an expanding public debt burden. This, unfortunately is the new normal. In this current construct, hope has been devalued and an unprecedented number of young people are desperately seeking opportunities elsewhere.
Under the watch of this administration, the sun is setting and economic gloom is enveloping the land as is evident by the closure of the bank. There is no other way to put it – but the bank’s closure is a big blow to the economy, and particular to the scores of workers and their families. It further reminds us all of the overall state of the economy and the failure of the government to initiate sustainable policies that will inspire growth.
The government’s only Hail Mary is the residency program, which at this stage has more questions attached to it than answers; and if it is not managed and executed properly it could lead to alienation and marginalization of our native people.
Sustainable economic growth will have to be fueled through the resuscitation of the tourism industry, the bolstering of the services sector, including the financial services sector; smart investments in technology and encouraging local entrepreneurship
As I said in my budget presentation earlier this year, this country is in need of an ambitious “marshal plan” for the tourism sector; and the making available of grants and small loans so that small hoteliers, in particular, will get back on their feet. The growth potential of that sector is real, and will positively impact all aspects of national life.
There is something that also has to be said about the banking sector in Anguilla – that goes beyond the CIBC issue. We have been reliably informed that the Eastern Caribbean Central Bank is less than pleased with some of the states of affairs in the sector here. We suspect this government lacks the skill, or perhaps more accurately the will, to govern and monitor the sector to ensure that it is not brought to the brink of collapse. We have been further informed by sources in the banking sector that one local bank has failed in its reporting duties, that are mandated by law and required under the Eastern Caribbean monetary system.
Overall, our economic downturn is a big worry, impacting real people who are facing shrinking opportunities. Families are hurting from the present day realities and the uncertainty of the future. We can now add workers at CIBC FirstCaribbean to this growing list. It is therefore against this background, and in this context, that we call on the government to convene an urgent national economic development summit of all local stakeholders, to discuss ways to help stimulate the economy, since it is clear that this government lacks the vision to do it on its own.
Anguilla is in desperate need of a new dawn and a new direction. We must end this vicious cycle of entrusting the future of our country and our children to career politicians who only care about self-preservation. This self-preservation is achieved when we allow them to divide us based on family and party affiliation. I make a clarion call today for unity and for our citizens to become active participants in the decisions that affect their lives.
I will continue to share this vision for One Anguilla, a nation which is built on love, unity, and active citizenship.
