A Stimulant for Economic Growth

Since his inauguration as the Minister of Economic Affairs, Steven Martina has already immersed himself in a myriad of ongoing projects and initiatives to stimulate the economy. Indeed it seems that the baton has been passed to very capable hands, and the Minister has hit the ground running.
TEXT BY HELEN GRIFFITH

Mind you, Steven Martina is already a veteran in the local business community and a well-respected leader in his own right. So it comes as no surprise that he would assume his position as Minister of Economic Affairs already having a pulse on the status of the economy and what the criteria would be for economic growth.

Mr. Martina admits that the economy has been stagnant in recent years and that the unemployment rate, after rising between 2015 and 2016, stayed more or less at the same level at the end of the first Quarter (Q1) of 2017, (however youth unemployment (15-24 years of age) did rise between 2016 and 2017).

He also attributes the downturn in the economy due to the recent global financial crisis, which has not only affected our tourism industry, but also limited the amount of capital available for investments on the island. Indeed foreign and local investors are more hesitant to take risks with economic uncertainty at every turn. Mr. Martina also highlights the fact that due to the current political situation in Venezuela, the island can no longer enjoy the significant benefits of Venezuelan tourists spending here on the island as they did in the 1960’s. On the contrary, the recent influx of Venezuelans appears to be more of a strain on our economy.

“There are times in the history of a country when the opportunity for a major initiative could become a significant trigger to economic development.”

He also identifies another factor that hampers our economic growth, whereby the development in regulations in the international financial sector has positioned Curaçao as a less attractive destination for international financial services. This, put together with the image of political instability, suggested by the fact that the government has changed 5 times in the last 7 years, makes foreign investors hesitant to explore opportunities in Curaçao without the reassurance of governance that demonstrates cohesiveness and continuity.

But the mere acknowledgement of these factors is significant. It shows an awareness of the issues that need to be addressed, and a willingness to take on each specific challenge. He acknowledges that we are not in an ideal situation at present, but he does see many opportunities on the horizon that could potentially turn the economy around. Mr. Martina elaborates on a quote by Charles R. Swindoll as he says, “ ‘We are all faced with a series of great opportunities brilliantly disguised as impossible situations.’ It takes the leader in us to see the difference, and I’m motivated and energized to make a difference.”

Without ignoring the many smaller current and future initiatives that will serve to assist in a turnaround in the economy, Mr. Martina also wants to focus on the bigger opportunities for growth. He notes, “There are times in the history of a country when the opportunity for a major initiative could become a significant trigger to economic development.” Specifically, he refers to the modernization of the national refinery with a 3 billion dollar investment from the Guangdong Zhenrong Company in early 2019. He sees this as a major catalyst for economic recovery, but looks even further into the future as he investigates the feasibility of the Chinese company committing to constructing an entirely new refinery and LNG center in years to come. This translates into an enormous investment potential with further opportunities for economic stimulation from other companies as well. But the important point is that these agreements need to be negotiated now, in the coming months, when we find ourselves at a pivotal moment for change with the signing- over of the refinery.

Mr. Martina also refers to the Tourism Master Plan already in place, and intends to continue implementing its structures. He highlights the importance of improving our tourism product by addressing key issues such as crime; the general cleanup of our island, and in particular our beaches; educating the public on the importance of being friendly hosts to our visitors; expanding the promotion of our local events worldwide; and further increasing our hotel room capacity.

When addressing the initiative to stimulate capital markets, he cautions that in order to attract foreign investors, we need to be compliant with new regulations and in some cases reinvent our markets. With stable, well-respected financial institutions, and a stable government, he is confident that we can re-create the image of a well-respected market for foreign investment that we held some years back.

He also acknowledges the need to eliminate red tape in an effort to further attract investors. He sees the solution to this problem by fully automating and digitalizing all procedures, which will achieve complete transparency, not only within each branch of the government, but also inter-departmentally. It is crucial that all ministries are in alignment so that they can cohesively move forward while simultaneously reducing the opportunity for individual exploitation. With all of these promising initiatives and projects, Mr. Martina is all too aware of the need to ensure that the potential stimulation to the economy trickles down to the smaller business owners, entrepreneurs and investors. In order to more evenly distribute the wealth within the population, he recognizes the need to introduce specific programs that will further facilitate economic development within this sector. The disparity of wealth has stoked the flames of divisiveness amongst the people, which, as seen in recent times, stands to affect the country’s political stability. This comes full circle, as any semblance of instability could dissuade foreign investors. Therefore, creating a certain level of political stability has, in essence, become an economic initiative. With the intention of creating consistency and coherence, Mr. Martina hopes to promote a fundamental intellectual change throughout the population as he explains, “We need to cultivate a positive mindset amongst the people of Curaçao by promoting a positive, constructive ‘yiu di Korsou’ – a ‘yiu Korsou nobo’.” He further explains, “This is a new type of person that has a positive, constructive mindset, who knows that the only way to progress is through hard work.” This is also a person whose underlying motive is personal progress as part of a greater picture that enables further civic development for the entire country, and doesn’t just stop short at personal progress alone. Mr. Martina views this as a crucial component in the effort to reduce the social deficit. Not withstanding the responsibility that the government holds in implementing measures to ensure the recovery of the social system, Martina acknowledges the need to increase available funds to improve the people’s health, education and poverty levels. He sums up his intentions for his term in office, quite beautifully by saying, “Be consistent… be selfless… govern with continuity… so that we can walk in front and lead by example.”