Dear Editor,
St. Maarten must urgently set in motion a process to establish a Sovereign Fund for the country. Its purpose will be to gird and buttress the country’s autonomy and lay the foundation for an eventual future independence should the people so choose.
We call on the newly installed government to begin the process to establish such a Sovereign Fund by establishing a task force to research the issue. Additionally, all political parties taking part in the upcoming elections should include this objective in their political programs.
Known also as a Sovereign Wealth Fund, these entities are essentially investment funds established by national legislation and function much the same as a pension fund as “depositories” of wealth for the country. Their national profile could be on a level equal to that of a central bank. They must operate fully independent of the political establishment and have a professional management and external supervision. It can even be considered to give such an institution a place in the constitution to emphasize its important role of promoting the future wellbeing of the nation.
The recent experiences the country has had to endure since the passing of hurricanes Irma and Maria, exposing its dependency on The Netherlands for financial assistance and having its autonomy questioned, must serve as a wakeup call that autonomy is not just a status on paper, a benevolence given in response to the choice of the people, but autonomy must be secured by proper foundations that can withstand any such attempts at its undermining.
This recent antagonism between St. Maarten and the Netherlands relating to reconstruction funds, that led to a political crisis in the island and resulting in the breakup of the governing coalition, and the forced removal of Prime Minister William Marlin, tells us that something is gravely wrong, incomplete, or unsound, with the autonomy the island has been granted. Country St. Maarten was basically put to shame, unable to defend its autonomy in the face of Dutch pressure and having to succumb to The Hague’s demands for the sake of reconstruction dollars; with some even questioning the island’s ability to continue in this status. Failing compliance the government risked an uprising by the depleted and disheveled masses. It is clear the current status has left a back door open for others to infiltrate the local constitutional state.
In the world we live in today, money rules, and if one truly wants to be autonomous and later perhaps independent, it is imperative that a proper financial basis is created. This is a long-term project but the work must start now. Since the Second World War newly independent countries in our region and elsewhere have been relegated to the control of many international organizations who all are supposedly working to improve the lives of people in these regions. We must agree much has been accomplished, yet the social, economic problems seem to only get worse; not just in number but in their intensity in the way they impact lives.
For this reason our region needs to take greater control in finding solutions that really solve our problems. To do this we need not invent the wheel but rather use the instruments the wealthier countries, businesses, and individuals, are using to create wealth. This is the only solution, wealth creation on a long-term basis. And, there is no reason to delay this. Failing this we are condemning ourselves to be beggars for the rest of our lives and this is what we will bequeath to future generations. It is time to stand up and turn the tide.
Join other small countries in the world such as Singapore and Hong Kong that have sovereign funds that underpin their (financial) independence and autonomy respectively.
Of course, right now the focus in St. Maarten is on recovery and rebuilding after the hurricanes, but at the same time it is necessary to start planning for the future. A sovereign fund is a long-term project that could take as much as fifty years to reach a level where it can supply the country’s needs. With that in place the country could simply access its own resources rather than being bullied or blackmailed in a way that disrespects St. Maarten and its people. This is only possible now because there is no alternative in place.
What goes for St. Maarten also applies for the other islands of the Dutch Caribbean; those that already have an autonomous status like Aruba and Curaçao, and those aspiring to such like Bonaire and St. Eustatius. The process must start now without delay to establish such a fund.
We also look forward to the wider Caribbean moving in this direction in order to extricate itself from the position of dependency that does not serve to free ourselves from foreign domination. These islands must become more assertive in establishing their own terms of reference for their future rather than having it dictated by outside governments and multilateral institutions.
The country of Norway currently owns the largest known sovereign fund with over one trillion dollars in assets. This, of course, is funded primarily by the income from the large oil and gas reserves exploited in that country. Many, if not most, sovereign funds are funded by income from various mineral mining activities across the globe, but some are funded from other sources including taxation or other type of revenue.
The funding and the specific purpose of fund resources and how and when these are distributed, is a matter of national decision-making. In Norway, for example, the fund actually takes the function of a pension fund with the purpose of providing income to the citizens long after the oil and gas resources run out.
Other funds in other countries have the purpose of funding education, health care, or other activities.
We encourage the St. Maarten government as well as the entire Caribbean region to seriously take steps to move in this direction. We cannot condemn ourselves and future generations of our peoples to continue living a “life of total subjection” as the songwriter puts it. Caribbean people must arise and become owners and masters of their own universe; but it takes positive action and that must start now.
Homeland Statia is a political movement on the island of St. Eustatius. We support the goal of autonomy for all our islands in line with the United Nations edict of “full measure of self-government.” we encourage our people to hold fast to these ideals and actively work toward them.
On behalf of Homeland Statia,
Glenn Schmidt, President
