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Suriname 3.

0: Long-Term
Development Route of Suriname

Presentation on the occasion of 25th Anniversary Surinaamse Effectenbeurs


Daniël A. Lachman
Presentation Overview

1. Brief on Suriname
2. Considerations for Strategic Choice
3. Long-Term Opportunities
4. First Steps…..Getting there
5. Conclusions
No. of slides: 20

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25th Anniversary Surinaamse Effectenbeurs
1. Brief on Suriname
 Open & Small economy
 Relatively isolated
 Weak institutions
 Poor planning & execution
 Commodities
 Decreasing returning industries

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25th Anniversary Surinaamse Effectenbeurs
1. Brief on Suriname – cont’d

1. Pessimistic: We don’t strike oil and continue


business as usual; heading for disaster
2. Optimistic: We strike oil and continue rent-
seeking: Short term welfare but
unsustainable
3. Realistic: with or without oil strike we
change economic focus: high up-front
costs and long term sustainable welfare:
Suriname 3.0 (Re-inventing SU)
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25th Anniversary Surinaamse Effectenbeurs
2. Considerations for Strategic
Choice
Resource Base
Inside-Out Perspective (Stock of Assets)

Outside-in Perspective
Activity System
(Value Chain)

Product Offering
(Value Proposition)

Markets
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25th Anniversary Surinaamse Effectenbeurs
2. Considerations for Strategic
Choice

 Sustainable competitive advantage


o Inherently present

o Marketable
o Difficult to copy, emulate

China’s large low-cost population, Port of


Rotterdam, Egypt: ancient artifacts
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Effectenbeurs
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25th Anniversary Surinaamse Effectenbeurs
3. Long Term Opportunities:
Tourism
Increasing tourism

Some rain / some sun Search for


Search for Eternal sunshine
excitement,
tranquility adventure and
and peace experience

Decreasing
Thunder Storm tourism Partially cloudy
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25th Anniversary Surinaamse Effectenbeurs
 Sustainable Competitive Advantage
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25th Anniversary Surinaamse Effectenbeurs
9
3. Long Term Opportunities:
Logistics
Orinoco ACCESSIBILITY

Amazon

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25th Anniversary Surinaamse Effectenbeurs
3. Long Term Opportunities:
Logistics

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25th Anniversary Surinaamse Effectenbeurs
 Free Zones
o Water export
o Logistic services
o Ship repair &

Maintenance
o Energy-intensive

industries
o Trade

o Etc.
3. Long Term Opportunities:
Information & Communication
Technology

Tourism Free Zones Logistics

Agri clusters Mining

ICT

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25th Anniversary Surinaamse Effectenbeurs
3. Long Term Opportunities:
Business Clusters

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25th Anniversary Surinaamse Effectenbeurs
4. First Steps….Getting there

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25th Anniversary Surinaamse Effectenbeurs
4. First Steps….Getting there –
cont’d

 NH, BWKW, Mijnbouwwet, Education


 Perfectly geared for existing economic base
(commodities, decreasing returns, etc.)

 Transition: Gov, Edu, Prod. Organization,


Investment attraction, etc.
 Transition Authority with decision rights

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25th Anniversary Surinaamse Effectenbeurs
 Now: balance budget; stop bleeding cash
 Strategy with long-term (10+) commitment
 Alignment with education, foreign policy, etc.

 Zoning plans
 Protect zoning goals!

 Engage in new BMs (for zero upfront costs)


 Incentivize sectors to engage in business
cluster (degree of cooperation)
 Incentivize business clusters towards
benchmarking value chain
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 Cluster mng - prod. instit. - MinFin/HIT
25th Anniversary Surinaamse Effectenbeurs
5. Conclusions
 Policy transition shift will result in
improved Investment climate attracting
domestic and foreign investments
 Role Stock Exchange: pooling capital

 Leading to a more diversified economy

... breeding ground for Surinamese Stock


market for the coming 125 years!!
Congratulations

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