Dear Editor,
This article describes in detail a large number of events and strategies for better economic growth and prosperity for country St. Maarten. The situation started with shelters. However, before the aftermath, destruction resulted in cost over 550 million guilders. The fact is hundreds of people lost their roofs, and others their homes.
Now Irma has gone, most of the people are still traumatized, and empty promises are what they get. Questions of importance: What will happen if the Netherlands, World Bank, and IMF withdraw their support for the 550-million-guilder loan? How much money do we have in reserve to support future development? Is this loan a fictitious liability, or not? Why the representatives sign for such liability? Incomprehensible of course!
For many years, the master budget of 435 million guilders was not enough for the rapid development and growth. This amount is too low for a country with a population of over 60,000 inhabitants. We should update the budget by increasing revenues, and reduce operational cost, to get a favourable balance of payments. St. Maarten doesn’t have balance of trade figures. This makes it difficult to obtain excess revenues. It will have to compete with private-sector businesses for additional income.
Currency manipulation: The national guilder is in deep crisis and losing its grip in the financial sector. The country doesn’t have enough reserves to back it and make it strong. A deficit of over 192 million guilders, puts the balance of payments in a negative position.
This resulted in a weak trading currency unit. The guilder is not generally acceptable on the French side. A lot of Caribbean countries do not accept it. In economics terms, it’s a floating currency determined by pegging to the US dollar in the exchange mechanism.
Dollarization is taking a toll in the country. Cost of living is skyrocketing; the economy remains stagnant. Up until now, there’s no official language of instruction, the six-month contract is still in limbo, elderly pension is at an all low, and most people can hardly make ends meet. During elections, most politicians promised to end the situation, but no one ever fulfils their promises.
The Treaty of Concordia: This document must be respected by the colonial powers. A treaty is “law” and should be part of the Constitution on both sides. Free movement is the key factor. This law has to be amended by France and the Netherlands before any decision on border control. In the USA, the Treaty of the Indians gave sovereignty to people of Indian territories, but here, the Treaty of Concordia is in defiance.
Joseph Harvey
