The Imperative of Sovereignty-A dated idea

Introduction

In discussing the concept of sovereignty and the economic imperatives facing small island states, within a Caribbean context, it is important to look not only at those small islands within the region which are still overseas dependencies of the metropolitan powers, but also to examine in a dispassionate way at those other Caribbean islands which have gotten independency since the decade of the 1960s. If seen from this wider and more encompassing perspective, then one would come to the view that, economic tasks facing the Caribbean small island states are essentially the same regardless of their political status in respect to sovereignty. The abstract speaks of the imperative of policy makers to do better at guiding these islands in executing those policies that can drive Caribbean economies from the backwaters of global economic development. This paper takes the views that the term backwater needs to be understood from more relative and sustainable stand point. Generational Demands and Expectations-The Case of Jamaica Jamaica having gained political independence in 1962, has over the decades made tremendous strides in the areas terms of raising the standard f living of the average Jamaican, in the areas of housing, education, health care, in the reduction of infant mortality, in increasing life expectance and in other such areas while building a democratic political culture and supporting institutions. Jamaica compared with its Central American counterparts has created, despite, the challenges posed by its terrain and its vulnerability to natural disasters such as hurricanes, flood rains, earthquakes and etc, an economic and communication infrastructure which is on par with many developed countries. Jamaicas social and infrastructural progress must be understood within the framework of a globalised world, a world in which Jamaicans are active participants, through migration and a very high level of exposure to the international media, most notable the BBC and more recently cable/satellite television, which have brought the world into the living room of the average Jamaican. The impact of this intense level of exposure to the international media and its large Diaspora living and working in the industrialized world, has created expectations across generations of a standard of living and or quality of life similar or not much less than that which is enjoyed in the metropolis. Access to fast food establishments, to

the internet, to affordable higher education, to paved roads, to running water and affordable energy are but manifestations of these demands. While post independence governments have been able to satisfy in the main, these quality of life expectations, it has been forced to do so by borrowing. Over the decades, rather than increasing, Jamaicas per capita income has been declining, with the country facing the migration of low skill manufacturing jobs to those countries where the average cost of labour is much lower and whose workers enjoy less protection from the government and the respective trade union movements. One is also forced to acknowledge the movement of some segments of the manufacturing sector to countries such as Costa Rica, Honduras and Trinidad and Tobago where the cost of energy is much lower, here one thinks of the production of articles such as shoe polish, car tyres, cigarettes, glues, to name but a few. The movements of jobs and opportunities have also resulted in the constant hemorrhaging of skilled labour and the highly trained. While political independence for Jamaica has brought with it a raising of the quality of life and standard of living of the average Jamaica, it has also by default created a political elite which has shown itself over the recent decades to be either unwilling or unable to take the type of socio-economic measures, which would have seen Jamaica moving from being a subsidized economy to one more able to provide for itself the resources needed to satisfy the demands of its people and to more actively participate in international trade. While, Jamaica remains a net importer of food, significant areas of farmable land lay idle and in many cases are used for the development of housing and urban amenities; the continued use of aging generating facilities have resulted in high cost of electricity, constraining the growth potential of all sectors of the economy, especially small business; over reliance on the Sun, Sand and Sea tourism market mix, has resulted in the retardation of the further development of the tourism industry and has kept the industry as one with relatively narrow linkages with the wider economy. The tables below shows Jamaicas comparative performance with other countries within the region, as it relates to growth in per capita GDP between the period 1990 and 2010.
Country/year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Cuba -3.8 -11.3 -12.2 -15.4 0.2 0.2 7.4 2.4 -0.2 5.7 5.6 2.9 Haiti -1 -0.1 -7.2 -7.2 -13.6 7.8 2.2 0.8 0.3 0.9 -0.9 -2.7 Dominican Republic -7.3 -1 8.4 5.2 0.4 3.6 5.3 6.2 5.3 5 4 0.2 Jamaica 5.7 0.2 0.9 1.1 0 1.5 -0.8 -1.9 -2.2 0 -0.2 0.5 Trinidad & Tobago -1 -0.1 -7.2 -7.2 -13.6 7.8 2.2 0.8 0.3 0.9 -0.9 -2.7

2002 2003 2004 2005 2006 2007 2008 2009 2010

1.2 3.6 5.6 11.1 12 7.2 4.1 1.4 2.1

-1.8 -1.2 -5 0.2 0.6 1.7 -0.8 1.2 -6.6

4.2 -1.8 -0.2 7.7 9.1 6.9 3.8 2.1 6.3

0.1 2.7 0.7 0.4 2.2 0.9 -1 -3.4 -1

-1.8 -1.2 -5 0.2 0.6 1.7 -0.8 1.2 -6.6

% in per Capita GDP 1990-2010 As can be seen from the table an chart above, Jamaica in recent years, has been a most sluggish of performer, when it comes to raising standards of living through increases in its per capita gross domestic product, which means that either in order to meet the demands of the populace for an acceptable standard of living, the country has to rely heavily on external aid, borrowing etc. When compared with the economic performance the other small island states of the region, as is shown in the table below, one cannot avoid coming to the conclusion that Jamaica during the period reviewed suffered from either poor economic leadership or from a complete absence of economic leadership. Hence any consideration of the choice between sovereignty or non-sovereignty, must start with a critical examination of the quality of the pool from which political and economic leadership will be drawn.

% in per Capita GDP

year/ Country 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Antigua y Barbuda 2. 5 0. 5 0.5 3. 2 3. 4 7.0 5. 2 2. 0 1. 6 1. 4 1.1 4.3 0. 4 5. 3 3. 6 4. 9 12 .2 8. 4 1.1 3.1 ;6.0 5.6 1.5 1. 6 2. 5 2. 8 3. 8 3. 5 6. 1 2. 5 1. 3 1. 4 2.5 0.7 2. 1 0. 9 0. 1 2.8 3. 7 3. 9 7. 3 0 .8 3 .4 2 .0 3 .6 4 .3 3 .4 0 .0 1 .9 2. 6 0 .3 2 .0 1 .0 3 .6 5 .7 1 .3 0 .1 Bahamas 6.4 2.2 2.7 1.9 4.3 3.4 2.8 2.5 4.6 0.6 0.6 1.7 - 1.9 7.7 3.3 - 0.5 4.4 7.5 7.7 Barbadoe s 6.3 - 1.4 0.0 - 2.3 2.3 2.1 4.0 5.4 3.7 6.3 16.4 - 2.1 3.7 9.6 - 1.0 12.4 - 3.9 5.9 0.1 Dominic a 3.1 2.3 3.1 2.9 3.0 22.1 4.3 7.4 - 1.3 3.6 2.1 3.0 1.9 - 3.5 2.2 9.9 2.6 2.8 2.6 Grenad a 6.7 0.5 6.9 1.8 - 2.9 8.9 1.4 2.9 5.2 4.4 1.8 1.7 6.3 7.6 3.2 2.5 7.7 3.4 1.4 St.Kitts y Nevis 2.9 - 1.4 5.9 - 0.3 1.2 0.3 1.7 2.7 5.0 1.0 - 1.5 6.3 - 0.9 3.6 6.2 - 3.2 6.5 0.0 4.2

2009 2010

12 .9 8.9

6.5 0.5

4. 1 0 .2

- 0.7 0.9

- 6.6 0.0

- 8.7 - 2.4

- 2.2 - 2.8

- 1.7 2.0

The terms backwater of global development from a Jamaican perspective is both relative and contextual. Relative firstly, because Jamaica is a country with very limited natural resources and no yet exploitable sources of cheap energy. Taken from this perspective, it would not be reasonable to expect that Jamaica would be able, given its resources and the intense competition for land, to compete with any given Central American country in the production and exportation of low cost bananas, equally, the level of labour protection and standard of living demanded by the average Jamaican means that it would not be able to effectively compete with countries such as Bangladesh, Indonesia and others in the cost of producing textiles, foot wear etc. While Jamaica remains an active exporter of bauxite, any major expansion of that industry would have very adverse impact on the natural environment. One should note, that even if cheaper sources of inputs are found for the generation of electricity, Jamaica would not be as competitive in the production of those products which are energy demanding in comparison with countries such as Columbia, Venezuela or Trinidad and Tobago. While there is significant room for improvement in the tourism industry, Jamaica is a brand leader in the all inclusive segment of that market, and is a market leader in

quite a number of sub-branches. The expansion of the tourism industry must also be seen from a cultural and environmental perspective. Here one must take into consideration, the fact that the uncontained and uncontrolled expansion of the tourism industry would pose a real threat to the continued existence of many Jamaican cultural institutions, Church services and plays which are now intended to satisfy needs could would face the risks of being packaged for tourist consumption. Equally the already fragile environment, would be qualitatively undermined by an uncontrolled expansion of the tourism industry. One also notes that Jamaica is an exporter, and in fact a leading exporter of cultural services and entertainment. Hence the term backwater must be placed within a given context. The term backwater however could be reasonably be applied to the economic and political leadership that governed the country in recent decades; a type of leadership which is atypical to the Caribbean Region with exception of Haiti and the former Burnhams administration in Guyana, albeit that in the case of Jamaica, that leadership was democratically elected; a fact which once again raises the issue of the quality of the pool from which leadership political and economic leadership is drawn. There is also a need to realize the high level of naivety reflected in the problem statement. The statement assumes that the existence of a global village also assumes the freedom of trade between the lesser developed nations and the more developed nations, as against the freedom of trade between the more developed nations and the lesser developed nations. The case of Antigua against the United States in the World Trade Organization in regards to internet gambling, shows that even when and where small island states are able to identify and occupy viable economic niches, obstacles can and are brought to the fore by the more developed nations to thwart the efforts of small island states. Specifically as it relates to Jamaica, one has to recognize that even with the best efforts of the government of Jamaica and the Jamaican private sector, policy actions taken by the more developed countries, and the United States, in particular along with the commercial interests of large multi-national corporations serve at times to undermine these efforts; the case of the Jamaican free zone garment industry is a case in point. The Jamaican government did all that it could under the Caribbean Basin Initiative to host and sustain a viable garment industry, however, the actions taken by the parent companies in the United States undermined all that effort; a second case in point has to deal with the production and exportation of chicken o the United States, here regardless how cheaply or how healthy the Jamaican chicken might be, it is virtually impossible to export a single chicken leg to the United States. The economic policies of any country, large or small, has to take cultural factors into consideration, if not for the simple reason that culture determines how resources are used or not used, who use those resources and for what purposes. In spite of its small size, Jamaica contains a very rich cultural mix of people, some more willing

and able to commercially exploit the resources available and others less willing and able to do so. This has nothing to do with the presence or absence of drive and ambitions, but rather the economic and social goals of the given segment of the population. One must note here, that there is a significant segment of the population which seeks the simple comforts of life, the bottom three of the Maslowian hierarchy of needs and with that they are satisfied, they have no interests in acquiring significant quantities of wealth or material possession; there are vendors and workers who are satisfied with a simple house and a source of income, and that is all they want. This feature is not uniquely Jamaican, there are significant pockets of Englishmen who have no other interest but just living, equally as in the case of Central Europe, there are the Romas, to use an extreme example, who given the best furnished house, will sell the contents and light wood fires within the structure to keep themselves warm-individuals without a need for wealth. In this regards economic policies aimed at pushing the economy forward and to ensure that generational needs are met, are policies aimed at strengthening and empowering that segment of the population which is profit seeking, here one is defacto speaking of increasing the carrying capacity of the entrepreneurial classes. Perhaps here what is needed is an estimate or a measure of the size of the entrepreneurial classes, be they office workers, factory owners, vendors or hair dressers and the identification of who they are and where they are.

Barbados and the Bahamas From the strict economic standpoint of being able to meet the generational needs of its citizens both of these countries appear to be doing very well. Here the concept of backwater has again to be re-examined. The major reason for the very strong economic performance of the Bahamas, is its proximity to the United States of America, thus while a person living in Saudi Arabia might have no commercial interest or ties in the Bahamas, while a manufacturer in China might have problems finding the Bahamas on the world map, the Bahamas is not a backwater country nor is its economy in the backwaters of the global economy, it is next door, at an unblockadable distance from the worlds largest market. Thus to quote directly from the Pan American Health Organization:- The per capita gross domestic product (GDP) in the Bahamas is one of the highest in the Americas. The exchange rate with the United States dollar (US$) has remained constant at 1:1 since 1972. In 2009, the per capita GDP was US$ 20,311.80 ( 2 ). The two largest sectors of the GDP are tourism (50%) and financial services (15%). Between 2004 and 2008 the country experienced a steady increase in average household income, from US$ 39,626 to US$ 43,459 (PAHO 2012). One however must note that there are significant cultural and social costs to the Bahamas achieving its enviable status, firstly among them is the fact that the Bahamian cultural identity as a country and as a people is endangered and is being

rapidly replaced by one created to meet the needs of its vital tourism industry, secondly, the crime and security issues facing the Bahamian people cannot be efficiently addressed because of the need to suppress actual crime figures and or need to make crime disappear in order to create the impression of a safe tourist friendly, note-not Bahamian friendly environment and thirdly, most native Bahamians are not able to afford to have access to the best that their country has to offer and indeed the country is the cheapest lace to live for the average Bahamian. One here must take into account the significant racial divide in property management, business management property ownership and business ownership, which is one of the most polarized in the English speaking Caribbean. Here according to the Pan American Health Organization:- While income has increased, the distribution of wealth has remained disparate, with a Gini coefficient, calculated by the Department of Statistics of the Bahamas, of 44% in 2009. The 2001 Bahamas Survey of Living Conditions indicated a poverty rate of 9.3% that year. Also in 2001, 5.1% of households were below the annual poverty line of US$ 2,863 per person. Between 2006 and 2008, the national unemployment rate rose only slightly, from 7.6% in 2006, to 7.9% in 2007, and to 8.7% in 2008. The global economic crisis helped push the unemployment rate to 14.2% in 2009, however. Although unemployment is almost equal in men and women, its distribution varies among other population groups in the Bahamas. In 2009, the highest rates of unemployment (32%) were experienced by adults under 25 years of age. In 2009, 64% of the employed labor force worked in the private sector, compared to 62% in 2001. In 2009, 12% of the employed workforce was nonBahamian. The Pan American Health Organization further states that:- Documented Haitian immigrants represented 7.3% of the population of the Bahamas in 2000, according to the Department of Statistics. Nonetheless, it is a widely held belief that Haitians (documented and undocumented) may account for as much as 20% of the Bahamian population. Haitian nationals reside primarily on the islands of New Providence, Grand Bahama, Abaco, and Eleuthera. In 2009, Haitian nationals experienced an unemployment rate of 28.6% compared with 14.2% nationwide. Thus, while the Bahamas as a country is better able to take care of its current and near future economic generational needs, better than most countries in the Caribbean, its comes at a significant cultural cost to the average Bahamian. One notes here also that per capita income is not an indicator of income distribution across demographic segments of the population. This as it is for the Bahamas so it is for Barbados. Perhaps the most successful of the independent non-oil rich countries of the English speaking Caribbean is Barbados, social peace has been bought by tuition free access to education and the creation of a cultural identity based on the image of being the Little England. Thanks to the relatively high level of education of the population and its equally high level of social organization, the country has been better able to chart its path in the world economy, a path on which the Little England image serves it well.

According to the Pan American Health Organization:- In the 2010 Human Development Report, Barbados was ranked 42nd out of 169 countries and classified as having a very high level of human development. It is the only country in the Englishspeaking Caribbean to have received that designation. The country's economy is highly dependent on tourism. The economy experienced continuous growth for six consecutive years from 2002 to 2007, but declined by 0.2% in 2008. In 2009, there was further weakening of the economy with a 4.7% decline in real gross domestic product (GDP) There was slight growth of 0.2% in 2010. Here while Barbados is a politically independent country with full sovereignty, its image is that of dependence on being like or similar to another people somewhere else in the world, roughly in the same manner as some of the small islands of the Indian Ocean identify themselves with the countries of the West Indies rather than their African neighbors. This extra regional identification of self, also impacts the distribution of access to the means of production, housing and cultural amenities along very racial lines; it is in this respect, while the country has made remarkable strides as a result of good economic leadership and the creative engagement of its human resources-in the distribution of social wealth and access to the means of production across racial lines, Barbados is not in any way different from its sister Caribbean islands. It is an open secret that the educated Black middle class Barbadian, finds Jamaica, despite its many challenges, a much more open and accommodating society for entrepreneurship and other such activities.

Competitiveness Increasing the levels of competitiveness is a most urgent task facing all of the Caribbean small island states, in order to better enable them to meet the

current and future needs of the population. Increased competitiveness within the Caribbean context as shown by Barbados is a function of the level of education of the population, the level of mastery of science and technology and the democratization of access to the means of production, in addition to access to utilities at a competitive cost. The level of education and mastery of science and technology determines not only where or how a person may be employed but also influences innovation and entrepreneurial activities, allowing for the release of the creative potential of the people and better allow the country to chart a sustainable path in the global economy. The democratization of access to the means of production, via business friendly monetary policies of the central bank, stable exchange rates and a responsive financial market widens the pool of profit seekers and entrepreneurs in the economy, increases and deepens competition within the economy, expands the circular flow of goods and services in the economy, reduces unemployment and increases the carrying capacity of the given economy.

A very important point to make here, is the fact, that educational standards across the English speaking Caribbean is roughly the same, equally as it is with basic quality of life indicators; thus apart from having an educated labour force, the role of economic and political leadership at all levels of the Caribbean society is a most essential ingredient in guiding the given country and society towards economic and social prosperity. The difference in economic performance between the Barbadian and Jamaican economies during the period 1990 to 2010, here in fact Jamaica started out with some very clear economic advantages, such as having one of the worlds largest natural harbours, mineral deposits such as bauxite, lime stone, gypsum, a much more varied natural environment and the absence of the sharp racial divide which obvious elsewhere; yet at the end of the period Barbados out performed Jamaica in all critical areas, thanks to a higher quality of social and economic leadership. Curacao And The Question Of Sovereignty
In addressing the issue of sovereignty for Curacoa and Sint Maartin, it would be valuable to start with three extracts to put the issue within perspective, for the simple reason that sovereignty in essence is the taking responsibility to find solutions to and to solve with ones own resources the social, economical and

political challenges facing ones society without relying on external interventions and or assistance. In 2010, Curacao had 142,180 inhabitants (71.9% of the total population) and Sint Maarten had 37,429 inhabitants (18.9%), representing 90.8% of the former territorys total population. The corresponding figures for the other islands were as follows: Bonaire, 13,389 inhabitants (6.8%); Sint Eustatius, 2,886 (1.5%); and Saba, 1,737 (0.9%). Most of the population was urban (93.2%). The islands had dynamic annual demographic changes, with net migration outpacing the natural increase (see Table 2). The population included a wide range of ethnic groups and nationalities: most were mixed race Afro-Caribbean (85%) and the remainder of Caucasian, Amerindian, and Asian ancestry. In 2010, there were 2,032 live births and 1,246 deaths. That same year, the total fertility rate was 2.0 live births per woman and the estimated life expectancy at birth was 76.9 years (74.5 years for males and 79.3 for females). The crude total mortality rate was 6.3 deaths per 1,000 population; infant mortality was 8 deaths per 1,000 live births. In 2008, per capita gross domestic product (GDP) was US$ 19,512, with tourism and services accounting for 84% of GDP. Tourism and related activities were the islands largest source of employment. Industrial activities accounted for 15% of GDP, primarily oil refining, petroleum transshipment facilities, and light manufacturing. Agriculture only represented 1% of GDP. Between 2006 and 2010, the economy of the Netherlands Antilles continued to prosper, despite the impact of the 20082009 global financial crisis. However, Curacao and Sint Maarten face economic challenges as new autonomous territories, especially Sint Maarten, whose small economy depends on tourism for a whopping 82% of GDP. Following the agreement for separation, Curacao and Sint Maarten worked out a series of arrangements to prepare and implement their new political administrations. This process included administrative mechanisms to establish new ministries of health and a progressive strengthening of the capacity of the new health authorities to run the health sector. In 20062010, the Netherlands Antilles continued to make progress in the health sphere, despite the international financial crisis of 20082009. The territorys relative high level of economic development, significant coverage and benefits of the social security system, a developed health care network, and close relationships with the Netherlands (most inhabitants of the territory were citizens of the Netherlands) helped buffer the impact of the economic downturn. In 2008, 37% of households earned less than US$ 560 per month. The proportion reached 45% among the elderly, with approximately 50% among women but only around 25% of men.1 Most

households with higher levels of education received more than US$ 2,793. In 2009, the unemployment rate was 9.7% in Curacao; 12.2% in Sint Maarten; 6.3% in Bonaire; 6.2% in Saba; and 8.3% in Sint Eustatius. Unemployment was higher among women (11.3%) than men (7.9%) in Curacao and was 24.7% among the islands youth. Approximately 14% of households had monthly incomes of US$ 280 (adjusted for household size), ranging from 5% in Saba to 16% in Curacao. Some 32% of households reported that their income was insufficient to cover all necessary expenses. The highest income inequality and lowest median household income were found on Curacao, where income for the most affluent 20% of households was 14 times higher than that of the poorest 20%. The social security system guarantees each family at least a minimum of resources to meet its basic needs, through a variety of government services. The territorys social security institutions have a number of different premiums and benefit payout amounts, as well as types of beneficiaries, including the elderly, widows, orphans, and persons working in the private sector. ( Source:-Health in the Americas, 2012 Edition: Country Volume N
Pan American Health Organization, 2012)

560 criminal cases registered in 2011 SATURDAY, 12 JANUARY 2013 00:30

PHILIPSBURG--According to the first annual report of St. Maarten's Office of First Instance, 560 criminal cases were registered in 2011. It was its first report of cases handled by the local Police Force without the assistance of the Netherlands Antilles Police Force. Of the 560 cases, 411 were solved, leaving a backlog of 149. The number of cases shows a considerable decline in criminal offences from 2010, when 728 criminal cases were registered, 2009 (857) and 2008 (890). There also was a decline in the number of cases brought to court, excluding traffic offences. In 2011, only 215 cases were brought to court, compared to 243 in 2010 and 275 in 2009. The report also stated a sharp decline in the number of drug offences. However, an increase has been noted in the number of firearm cases, proving that illegal possession of firearms is very high. This finding goes hand-in-hand with the number of criminal cases that involved use of a firearm. The year 2011 also saw significant changes in personnel, including new prosecutors and the investigation of two high profile cases, "Regatta" and "Vesuvius," during which many persons were assaulted and/or killed with firearms.

In many respects, the problems facing both Curacao and Sint Maartin are not dissimilar to those facing the Bahamas, a very fragile economy, extreme dependence on tourism, a thriving duty free sector, a large immigrant population, legal and illegal. In addition, there is the similarity in the social distribution of income and access to the means of production by race, legal status and by nationality. However unlike the Bahamas, both Curacao and St. Martin are able to rely on the support of the Netherlands in resolving some of the most acute socio-demographic challenges they face, the problems of an aging population, in absorbing surplus population in the form of labour exports, in resolving issues of serious crime. There is also the issue of providing budgetary and balance of payment support through the taking on of the debts of both countries. Examples of this type of support are given in extracts below:-

Role of the Netherlands

Within the Kingdom, the Netherlands has an obligation to promote the wellbeing of its former colonies, as laid down by the United Nations. That means that the Netherlands is responsible for the wellbeing of all the subjects of the Kingdom. Greater wellbeing is the

result of good governance, a healthy economy, and properly functioning law enforcement and education systems. The Netherlands is also responsible for the courts and for combatting crime and drugs trafficking within the Kingdom, for example by maintaining a well-trained and organised police force and an efficient and effective public prosecutions service. Although Aruba, Curaao and St Maarten are now independent countries, these responsibilities go beyond the capacity of the islands. They lack an adequate number of properly trained employees and suitable material and equipment to undertake such tasks on their own.

The Netherlands role in the new constitutional order

By supporting the new constitutional order, the Netherlands:

supports Curaao and St Maarten in their wish to become autonomous countries within the Kingdom; can ensures good governance that is free of corruption; can help improve the wellbeing of the inhabitants of Bonaire, St Eustatius and Saba; is assuming a large share of the government debt of the Caribbean Netherlands, totalling EUR 1.7 billion; will supervise, on a provisional basis, the budgetary policy and public finances of Curaao and St Maarten; will continue to cooperate with local administrators to fight crime and drugs trafficking between Aruba, Curaao, St Maarten, and Bonaire, St Eustatius and Saba.

Collaboration
The Kingdom of the Netherlands is responsible for the protection of human rights, legal certainty, and good governance in all its constituent countries. The Netherlands therefore supports the judiciary in the Caribbean region of the Kingdom and is helping to maintain the regional coast guard and the RST [Recherche Samenwerkingsteam], a team of criminal investigators from the Netherlands, the former Netherlands Antilles, and Aruba.

Justice system Coast Guard RST Partnership programmes Funds Financial support for St Maarten

Justice system
On average, the Netherlands has 22 judges and ten public prosecutors working in the Caribbean region of the Kingdom. These officials assist and advise the Public Prosecutions Service and the Common Court of Justice. By collaborating in this way, the Netherlands aims to improve the quality of the justice system in the Caribbean region.

Coast Guard
The Coast Guard in the Caribbean region of the Kingdom consists of a partnership between the Netherlands, Aruba, St Maarten and Curaao. The Coast Guards duties are:

investigation and patrol: combatting drugs trafficking, patrolling the borders, customs surveillance at sea, monitoring compliance with environmental and fishing legislation, and supervising safe shipping.

services: round-the-clock operation of the Rescue and Coordination Centre (RCC), handling marine distress, emergency and safety radio communications, conducting search and rescue missions (SAR), and assisting in the execution of marine disaster plans.

Partnership programmes
The Netherlands provides development aid to the former Netherlands Antilles through various partnership programmes. The programmes support development efforts in government, education, and law enforcement as well as social and economic progress. Each of the islands also has an NGO partnership programme. The NGOs concerned are active in human rights, the fight against poverty, and other social issues.

Funds
Three funds have been established to finance the partnership programmes:

The Netherlands Antilles Development Foundation (in Dutch) manages development aid for government programmes in the former Netherlands Antilles founded to support development efforts in government, education, and law enforcement as well as social and economic progress. The Netherlands will continue to contribute to these programmes until the end of 2012. The Antillean Co-Financing Organisation (in Dutch, AFMO) manages Dutch development aid for NGOs in the Caribbean region of the Kingdom. The Netherlands will contribute an annual amount to this fund until the end of 2012. The AMFO monitors how development aid is spent; its priority is to provide young people with better prospects for the future. Until recently, the Netherlands also provided development aid through the FDA [Fondo Desaroyo Aruba]. The aid was discontinued in 2010. The programmes supported through the fund have continued.

Financial aid for St Maarten

St Maarten must establish an entirely new government organisation and urgently requires experienced personnel to work in the police force, the prison system and the immigration service. The Netherlands is assisting St Maarten by providing aid to help recruit personnel from outside the island. The aid will be continued until 1 November 2013, in accordance with the cooperation agreement (in Dutch) concluded between the Netherlands and St Maarten on 4 April 2011.

FDA
It was agreed in 1999 that the Netherlands would gradually reduce the level of development aid paid to Aruba. The two countries further agreed that Aruba would become financially independent after a ten-year period. Until 2010, both countries deposited money into the Aruba Development Fund or FDA (Fondo Desaroyo Aruba). The Netherlands deposited almost EUR 100 million in the fund, and Aruba paid the comparable sum of AFL 180 million (1 euro = 2.3085 Aruban guilders). The final deposit was made in instalments. The Dutch deposit decreased every year, while the Aruban deposit increased annually. The FDA pays for projects meant to improve government, education, law enforcement and government finances on Aruba. Various long-range programmes have been set up for this purpose. The two countries have only concluded framework agreements on the long-range programmes at political level. The FDAs board takes decisions on projects being carried out under the programmes, at the request of the Aruban government. The Netherlands is therefore not involved in the project details.

The Netherlands has ceased making payments into the FDA. In June 2010, the Netherlands and Aruba agreed that the money in the fund may be spent on a new long-range programme. Until 2014, Aruba will continue depositing funds in order to ensure that the original projects are implemented.

(Caribbean Parts of the Kingdom, produced by the Government of the Netherlands)

EU relations with Overseas Countries and Territories (OCTs)

The OCTs are 25 countries and territories - mainly small islands outside mainland Europe, having constitutional ties with one of the following Member States: Denmark, France, the Netherlands and the United Kingdom. Although their nationals are in principle EU citizens, these territories are not part of the EU and not directly subject to EU law. They have a special "associate" status, designed to help their economic and social development. Which are the OCTs?

Anguilla (UK) Aruba (NL) Bermuda (UK)* Bonaire (NL) British Antarctic Territory (UK)** British Indian Ocean Territory (UK)** British Virgin Islands (UK) Cayman Islands (UK) Curao (NL)*** Falkland Islands (UK) French Polynesia (FR) French Southern and Antarctic Territories (FR)** Greenland (DK) Mayotte (FR) Montserrat (UK) New Caledonia and Dependencies (FR) Pitcairn (UK) Saba (NL)*** Sint Eustatius (NL)*** Sint Maarten (NL)*** South Georgia and South Sandwich Islands (UK)** Saint Helena, Ascension Island, Tristan da Cunha (UK) St. Pierre and Miquelon (FR) Turks and Caicos Islands (UK) Wallis and Futuna Islands (FR)

(*)Bermuda has never applied the association regime. (**) OCTs, without a permanent local population. (***)Curao, Sint Maarten, Bonaire, Saba and Sint Eustatius were formerly the Netherlands Antilles. As from 1 January 2012, the French Outermost region, Saint Barthelemy (St. Barth), will, following a decision of the European Council, change its status from Outermost Region to OCT, bringing the total number of OCTs to 26.

Some specifics of the OCTs

There are significant differences between the OCTs themselves in terms of the degree of autonomy vis--vis the Member States to which they are linked, but also in the economic and social field and as regards their geographical

characteristics and climate. However, they do share common characteristics: none of them is a sovereign country, they are all parliamentary democracies, they are all islands, the size of their populations is very small and their ecological richness is extraordinary compared to continental Europe. They are all relatively vulnerable to external shocks and are in general dependent on a narrow economic base that mostly revolves around services. The OCTs are facing many challenges such as: remoteness, vulnerability to economic shocks and climate change, difficulties to build and maintain infrastructure, or sustainable energy supply.

EU financial support for OCTs

The EU provides financial support for each OCT's development strategy (set out in a 'single programming document'). Total EU funding for all OCTs for 2007-2013 is 286m, through the European Development Fund (EDF)

195 million for special programmes (all OCTs with per-capita GNP lower than that of EU) 40 million for regional cooperation and integration

30 million to finance the European Investment Bank investment facility for OCTs (this is on top of loans worth 30m made from the Bank's own resources). 6 million for technical assistance 15 million for emergency help.

The OCTs can also get funding under European programmes (e.g. research, education and training, innovation and competitiveness, culture and media, etc.). Greenland is not eligible to EDF funds but receives 25 million per year from the General budget of the EU on the basis of the Partnership Agreement between the EU, Denmark and Greenland which also covers the period from 2007-2013. (1)Decision 2001/822/EC of the Council of 27 November 2001 on the association of the overseas countries and territories with the European Community, (OJ L 314/1, 30.11.2001). Decision as amended by Decision 2007/249/EC (OJ L 109/33, 26.04.2007). (2)Decision 2006/526/EC of 17 July 2006 on relations between the European Community on the one hand, and Greenland and the Kingdom of Denmark on the other (OJ L208/8, 2907.2006) (3)Fisheries Partnership Agreement between the European Community on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other hand (OJ L 172/4, 30).

Financial allocations per OCT10th EDF

Territorial Allocations Overseas Country or Territory indicative allocation (in EUR million) 19,81 19,79 16,49 22,92 20,74 8,88 24 Aid/c (EUR per capita) 13,73 12,70 183,91 21,70 547,29 14,71 21,56

New Caledonia French Polynesia Wallis and Futuna Mayotte St Pierre et Miquelon Aruba Former Netherlands Antilles

Former Curaao Netherlands Antilles Sint-Maarten Bonaire Sint-Eustatius Saba Falkland Islands Turks and Caicos Anguilla Montserrat Saint Helena, Ascension Island & Tristan da Cunha Pitcairn Total Regional Allocations Strand Technical Assistance to Association of Overseas Countries and Territories Territorial Strategies for Innovation Caribbean strand Pacific strand Indian Ocean Total Humanitarian, Emergency, Refugee Aid & Additional Support indicative allocation (in EUR million) Investment Facility (EIB) indicative allocation (in EUR million)

Per island

11,25 4,75 3 2 3 4,13 11,85 11,7 15,66 16,63 2,4 195 232,94 59,85 142,98 545,45 520,40 8888,89

indicative allocation (in EUR million) 5 5 15 12 3 40

15

30

What is clear, is that a sovereign country such as the Bahamas do not have that type of cushion for support in addressing the challenges facing its society and economy. No one can deny the technical capacity and skills of those individuals and institutions which are responsible for the day to day running of the economic affairs of Curacao and Sint Maarten, as is demonstrated in the Report From By The President Central Bank, Mr. E.D. Tromp, in the economic recovery of Sint Maarten and the steps being taken to diversify its economic base; several very serious issues remain which questions the abilities of the islands administration to go it alone, especially in dealing with matters relating to serious crime and alleged corruption, most notable in the the Rosenmoller Report and in the fraud case Operashon Bientu , where the accused Robbie dos Santos is the half brother of George Jamaloodin, the former Minister of Finance, to give but two examples. Public officials in small island states, where everybody knows everybody and where there are very close family ties, face significant challenges in separating their public roles from their private roles of being family members, friends and or associates with other individuals in the wider society. In such an environment, is ideal for the development of cronyism, nepotism and at other times clear cut corruption. This is where the issue of leadership quality comes to the fore and where an island such as Barbados stands out, in its ability to nurture and cultivate individual leaders who are both technically competent and socially and morally aware of their role and responsibilities as leaders in the wider society. The islands of Curacao and Sint Maartin are yet to demonstrate that they have the necessary social infrastructure as is required for the identification, nurturing and development of that type of political and social leadership. One must note here, that the number of Churches or other religious institutions, per square mile or per 1000 persons in the population, by its self is not an indicator of the ability of the given society to produce leaders with the required social and moral qualities, here Jamaica as an example stands out. Jamaica has a country is reported to have the most Churches per square mile and the majority of its inhabitants adders to the Christian faith, yet as a society, Jamaica has over decades had problems in producing the type of leadership and leaders required for its further development, this is seen in Transparency Internationals ranking Jamaica at 83/176, while Barbados is ranked at 15/176 in its Corruption Perception Index for the year 2012. So far thanks to the assistance received from the Netherlands, the socio-spatial distance between the source of assistance in public administration and the recipient countries-Curacao and Sint Maarten, these countries are not seen or deemed by the wider community both within the given islands and within the region as a whole as having a problem with public corruption. As is widely known, high levels of public perception of corruption is a deterrent to investment and retards economic and social development. It would be a significant error at a regional level or even at a wider international level, to view the islands of Sint Maarten and Curacao as being in the backwaters of anything, be it in finance, shipping or tourism, nor can it be claimed that the administrators of these islands are not developing and pursuing the types of economic policies which would better enable them to meet future generational needs, in this regards the Pan American Health Organizations assessment and reporting stands firmly on the side of the islands public administrators. This however by no means, as was earlier pointed out in this document, indicate or

assume that there are not significant social and economical challenges facing these two societies, and even with significant help from the Netherlands, there remain strong similarities at the social level between these two islands and the Bahamas. These problems as demonstrated in the Bahamas are not solved simply by the declaration of sovereignty, but rather by targeted social and political intervention and even in this regard Barbados, which can be held up as a type of model is faced with challenges in bridging the racial divide in terms of access to the means of production and entrepreneurial opportunities. For the wider Caribbean, without external assistance and a more Caribbean business friendly attitude by both the European Union and the United States, the task of increasing the level of economic viability and self sufficiency by the small island states of the Caribbean will not be attainable in the near or medium term, given the state of the world economy, energy prices, restrictions on the movement of labour out of the region among other inhibiting factors; even as there is a need for more pressure to be brought to bear on the leadership of these island states, to produce the type of leadership required to guide them through the 21st century to further development and improving the social well being and protection of all their residents, without regards to age, class, race, gender, religion or sexual orientation. End

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Curacao, Wikipedia, http://en.wikipedia.org/wiki/Cura%C3%A7ao, COMMISSION OF THE EUROPEAN COMMUNITIES, COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS, Elements for a new partnership between the EU and the overseas countries and territories (OCTs), Brussels, 6.11.2009 Dutch Caribbean 2012 Tourism Growth Beats Caribbean Average, Willemstad, Curacao Chronicle, 14 February 2013, Curacao Dr. Emsley Tromp, Economic Performance of Curacao and St. Maarten, WILLEMSTAD/PHILIPSBURG, 2011, Ebrima Faal, Currency Demand, the Underground Economy, and Tax Evasion: The Case of Guyana, IMF Working Paper, WP/03/07, Washington D.C., USA, 2003 EU COMMISSION, ACP-EU DEVELOPMENT COOPERATION AFTER 2013, AGENDA ITEM 10, Port Vila VANUATU, 14- 15 June 2012 European Commission, Development and Cooperation-Europeaid, EU relations with Overseas Countries and Territories (OCT), http://ec.europa.eu/europeaid/where/octs_and_greenland/index_en.htm First Citations In Fraud Case Operashon Bientu, Curacao Chronicle, Willemstad, Curacao, 15 March, 2013 Foreign Direct Investment in Latin America and the Caribbean, Economic Commission for Latin America and the Caribbean, Santiago, Chile, 2012 Foreign Direct Investment in Latin America and the Caribbean, Economic Commission for Latin America and the Caribbean, Santiago, Chile,2010 Foreign Direct Investment in Latin America and the Caribbean, Economic Commission for Latin America and the Caribbean, Santiago, Chile, 2008, Government of the Netherlands, The Caribbean Part of the Kingdom, The Netherlands, http://www.government.nl/issues/caribbean-parts-of-the-kingdom/contents

International Monetary Fund Staff Report, Curacao, The International Monetary Fund, Washington D.C., USA, 2011 Miriela G.L. Carolina and Lennie Pau, The Shadow Economy in the Netherland Antilles, Bank van de Nederlandse Antillen, 2007, Netherlands Antilles, Health in the Americas, 2012 Edition: Country Volume N Pan American Health, Organization, 2012

Report Of The President Of The Central Bank, E.D. Tromp, Curacao Chronicle, Willemstad, Curacao, 5 January 2013, RBC Financial (Caribbean) Limited ("RBC Caribbean"), Caribbean Economic Report, 2013 Response of the Kingdom of the Netherlands to the request of the Committee on the Elimination of Discrimination against Women, With Reference To the Netherland Antilles, Netherlands, 2011 Statistics Netherlands, Statistical Yearbook 2011, Statistical Netherlands, Henri Faasdreef 312, Hague, Netherland The Bahamas, Annual Report, The Pan American Health Organization, Washington D.C., USA, 12 March 2013 The British Virgin Islands, Annual Report, The Pan American Health Organization, Washington D.C., USA, 12 March 2013 The Cayman Islands, Annual Report, The Pan American Health Organization, Washington D.C., USA, 12 March 2013 The Daily Herald, PHILIPSBURG, St. Maarten, Netherland Antilles, 12 January 2013, The European Union, Roadmap, Proposal for Council Decision replacing Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European Community ("Overseas Association Decision") Brussels, Belgium, 2012 The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/, UNCTAD Stats, Real GDP growth rates, total and per capita, annual, 1970-2011, Other: MEASURE (Annual average growth rates), UNCTAD E-9042, 1211 Geneva 10, Switzerland United Nations Office on Drugs and Crime, Case Study: Drug Trafficking and The Netherland Antilles, UNODC, 2007 2012 INCSR: Country Reports - Croatia through Haiti, BUREAU OF INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT AFFAIRS, 2012 International Narcotics Control Strategy Report (INCSR), U.S. Department of State, Washington D.C. , United States