Indications of a possible downgrading by Moody’s Investor Services (see related story) obviously can’t be considered good news. Slow economic growth is mentioned as one of the probable reasons.
But lack of stability in the political
field also may have played a role, with no less than three different governments during the first four-year term of Parliament since country status was obtained on 10-10-10 and two already in the second term that started just 18 months ago. A constitutional crisis occurred twice between the executive and legislative branches and early elections were called but subsequently postponed by about eight months.
All these shifts in power facilitated by so-called ship-jumping elected representatives haven’t exactly created an image of continuity in the management of the people’s affairs. Two vote-buying cases and all the other controversies involving politicians and high-ranking officials probably weren’t very helpful either.
On top – or perhaps partly because – of that, persistent challenges regarding public finances had led to no budget being ratified for 2015, while the 2014 version ended up with a considerable shortfall, as did those of the preceding two years.
Of course, it looks like the latter has now changed with the adoption of Finance Minister Richard Gibson’s “shotgun budget” of 2016 that is likely to receive the required approval of the Committee for Financial Supervision CFT. To be clear, restoring order to the country’s financial household, including its outstanding debts, is crucial to regain both local and international investor confidence.
Also important is that those called on to lead the community do so in a responsible, sensible and fair manner, always with the best general interest in mind. Electoral reforms making it less easy to make and break coalitions are currently being worked on, but there is no certainty these will be implemented before citizens go back to the polls on September 26.
The bottom line is that St. Maarten can ill afford another six years of similar upheaval if it wants to prevent slipping further down the credit-worthiness slope, especially should the CFT and related loan-financing agreement with the Netherlands cease to exist. The world is watching and Philipsburg had better get serious.
