ECONOMIC MANAGEMENT POLICY
Modern day economic management in the context of the British Virgin
Islands is about identifying problems or opportunities and setting broad
directions and strategies in response. Government’s role is
non-interventionist unless overriding social, environmental or political
considerations arise. The BVI is very open to international trade and
investment. In this connection government wants to ensure that BVI firms
do not have to rely on government support to become internationally
competitive.
Contents
Introduction
Benefits
Mandates
Principles
Objectives
Policy Recommendations
1. Consultation,
Deliberation and Participation
2. Regulatory Frameworks
3. Institutional
Capacity Strengthening
4. Education and
Awareness of Stakeholders
5. Financial
Resources for Economic Management
6. For a for
Consultation on Management Issues
7. International Economic
Relations
Application
Introduction
The principles and recommendations contained in the British Virgin
Islands national strategy for economic development (that is humanistic,
sustainable and people oriented) (HSP) are intended to lead to the
formulation of policies that will encourage the private sector, the
non-government organizations group and the not-for-profit sectors to
join with government in building a 21st century economy with sound
environmental, social and population management. By building an economy
integrated with social, environmental, physical and population affairs,
we will be assisting our people to realize their hopes and aspirations.
For the purposes of the HSP policy, the private sector, the all
governmental organizations sector and non-profit all form the rest of
the economy except the public sector. The term economic development is
used in the broad sense and it includes more than the traditional
economic growth which focuses on gross domestic product. Economic
development includes the reduction of vulnerability to external shocks,
the ability of our people to produce more of what they consume and to
adapt better to changing global circumstances. Economic development
means providing more choice, empowerment of our people to recognize and
take on these choices and to have more influence on what is to happen to
their lives. Economic development means the opening of dialogue,
opportunities and resources for people choices about their future.
In our context, economic development is a series of processes that
include all stakeholders, including businesses, workers, organizations,
the poor, the vulnerable and the marginalized.
This policy framework document is intended to encourage and facilitate
the full development of all the stakeholders and it is about how can
assist people to develop themselves. It will present principles,
objectives and broad policy for achieving HSP development.
It accepted the economic development issues are complex and difficult to
contain over the long term. But it is our conviction that an integrated
approach builds on public participation is the best way to facilitate
our people realizing their hopes and aspirations. In this connection the
policy recommendations are consistent with the principles of
participative democracy and sustainable development.
BENEFITS
It is recognized world-wide that the HSP oriented development arrived at
through public consultation and participation results in economic
development that is sustainable. HSP oriented economic development
introduces the ideas, wishes and aspirations of the recipients in the
planning and development processes. It brings a broader range of ideas
to the economic development process. Additionally, participation and
consultation help as they introduce and reduce conflict consensus during
various stages of the economic development process. The full involvement
of the people in economic policy development increases the likelihood of
the creation of improved and lasting development. HSP oriented economic
development built on public participation provides opportunities for
increased co-operation and coordination between government and civil
society, building trust between the stakeholders and the creation of
collaborative relationships. Economic development impacts everyone and
everyone want to participate or be consulted as they have their own
ideas about development. But our aim in economic development is to meet
the hopes and aspirations of our people.
MANDATES
Governments have always contended that their political mandates sought
and received through the democratic process were sufficient to give
constitutional legality to their pursuit of good governance. Through
bilateral agreements and other international arrangements the BVI
Government has used their constitutional responsibility for good
governance to develop and implement economic management to meet
overarching development goals. A number of commitments pertaining to the
macroeconomic stabilization policies and policies related to interplay
of macro and microeconomics have been put in place over the years. The
commitments upon which these management policies are based are the
following.
- The BVI Tourist Board Act and the framework of Financial Services
legislation embody the principle that the BVIG is prepared to
manage, regulate and promote directly key industries that are
responsible for sustaining full employment, prices and macroeconomic
output.
- The Investment Incentive Regime (IIR) legislative framework
including Pioneer Status, Hotel Aid and Encouragement of Industries
legislation providing incentive to investors with a view toward job
creation, output and prices stability.
- The Constitution provisions giving the stats taxing and spending
authority to create and maintaining government intervention in the
country.
- The Financial Institutions and the Finance Legislative framework
allows the Central Government to develop and manage programmes of
expenditure and investment for the purposes of delivering services
and ensuring their continued provision.
These measures and legislative arrangements are the basis of the
intervention of the GBVI into the market to undertake, regulate,
supervise or promote economic activity in a leadership role as the key
to our continued good fortune.
PRINCIPLES
From the mandates and measures employed above, the following principles
are identified in GBVI economic management of the territory.
- Intervention: The political and legal mandates
provided for intervention in the market to regulate, promote or
provide economic activity where the private sector is absent,
unwilling or unavailable.
- Responsibility: The state has a responsibility to
ensure certain macroeconomic conditions such as price stability,
sustainable output and continued employment in the interest of all
stakeholders.
- Consultation/Participation: Fundamental to the
democratic process is the full participation of the governed in
decision marking that will affect them. Consultation and
participation in the policy, strategy and programme development
process is key to getting the buy-in of all stakeholders.
- Leadership: In many international areas small
developing countries business sectors have little influence over
global commerce/business. Developing countries business firms play
no role in setting the rules and designing the playing fields;
therefore, many developing countries governments are forced to lead
the development of global businesses in their countries.
- Inclusiveness: Full participation by those affected
by development issues is essential to achieve development solutions
that are equitable, lasting, and therefore sustainable. Special
efforts and measures must be made to include the most vulnerable
including women, youth, non-belongers and other traditionally
marginalized groups, including disadvantaged racial and ethnic
minorities, as well as to fully engage the non-profit sector.
- Proactivity: Economic management that assumes
situations and prepare for them is superior to reactive management
which, only acts when a crisis has happened. Proactive economic
management requires long range thinking followed by strategic
planning and finally operational/implementation planning. A
proactive role by GBVI and the private sector in economic management
is vital to our success in the global economy.
- Partnership: Government is supportive of
institutions for the most part in the economic management of the
private sector. Operations of both entities should be to their
mutual benefit and their relationship must be an open one with full
transparency. This will build a great deal of mutual trust and
confidence.
OBJECTIVES
Through the application of these principles, a mutual beneficial economy
could be achieved for all stakeholders towards the following objectives:
- Effective consultation mechanism to permit government and all
stakeholders to engage in dialogue for the purposes of sharing
experiences and information in the management of the economy.
- A regulatory framework and mechanisms that allow the full
participation of individuals, institutions and organizations in the
economic management process.
- Strengthening institutions and organization responsible for all
areas of economic management including planning, decision support
information, information, finance and development.
- Increased capacity of stakeholders to interpret the full range of
economic management information.
- Financial resources necessary to ensure full implementation of
information, education and communication about economic management.
- Increased economic management capacity across all areas of
government and the private sector through training, education and
higher level of technical expertise.
- Establishment of international, regional and sub-regional
regulations to provide exposure to cutting edge economic management
strategies.
Engagement of the broad economic management objectives in each of the
areas of concentration is likely to result in the strengthening of
national economic management and overall integrated development of the
British Virgin Islands.
POLICY RECOMMENDATIONS
The following areas, underscored in the National Integrated Development
Strategy are to be focused on in developing national economic management
policies. The recommendations under each area contain the principles
identified earlier and are intended to fulfill the objectives described
above. It is believed that these policy recommendation can satisfy the
individual and collective objectives of all the stakeholders of the
British Virgin Islands.
- Consultation,
Deliberation and Participation
Strategy 1: Create strengthen existing formal and formal
engagement mechanisms to allow, permit and encourage dialogue
between decision makers in both the civil and government societies.
Clear and easily accessible consultative and deliberate mechanisms
to empower other stakeholders and government decision makers to
participate in a dialogue about the development of the country are
absolutely essential. In this connection the various cultural,
social and political values of the stakeholders must feature in the
policy impact.
- Regulatory Frameworks
Strategy 2: Establish, expand and institutionalize
regulatory frameworks that will provide the opportunity for full
participation into development decisions by all stakeholders.
In a democracy built on participation of the public in development
decisions making processes laws and regulations guaranteeing access
to economic information, access to the decision process and access
to the justice system are prerequisite and paramount.
- Institutional
Capacity Strengthening
Strategy 3: Ensure that institutions, organizations
and agencies concerned with planning are strengthen to facilitate
meeting the challenges in the development process.
Where necessary, institutions should strengthen and develop
management mechanisms to expand and incorporate participatory
practices and techniques in project design, implementation, and
evaluation. The creation of partnerships between government and
civil society should be encouraged and should include the relevant
stakeholders and community representatives.
- Education
and Awareness of Stakeholders
Strategy 4: Build and strengthen the capacity of
individuals, within government and civil society organizations, to
participate in development decision-making with an increased base of
knowledge on sustainable development issues and public participation
practices.
Formal and informal education and training programs that build the
capacity of all individuals to participate actively in development
decision-making processes are a prerequisite for effective public
involvement in development decision-making. These programs must be
appropriate to the national or local context.
- Financial
Resources for Economic Management
Strategy 5: Procure and expand financial resources to
initiate, fortify, and/or continue participatory practices in
development decision-making.
Financial mechanisms devoted to the implementation of programmes to
strengthen civil society and encourage public participation should
be explored with multilateral development institutions. Funding for
participation can be enhanced by efforts that enable responsible and
accountable stakeholder organizations to conduct fund-raising
activities. Also, some of the financial cost of public participation
can be shared; where feasible, involved parties should assume a
reasonable share of the outlay for public participation activities.
Financial mechanism to allowing sharing and economies of scale are
most critical.
- Economic
Management Capacity Ministries
Strategy 6: Create an economic planning and management
capacity at the ministry and selected departments level affect the
development and implementation of these policies.
National economic capacity across all ministries is a prerequisite
to the co-ordination and development of meaningful integrated
development strategies to meet the challenges ahead. Good economic
management is specialized.
- For a
for Consultation on Management Issues
Strategy 7: Create, strengthen, and support formal and
informal for a in which development activities are discussed and
decided upon.
Strengthen and, where necessary, new channels for discussion on
sustainable development issues that include stakeholders from all
sectors of society are essential for the participation process.
Partnerships between and among government institutions and diverse
sectors of civil society in decision-making are paramount, and
existing opportunities for public consultation and participation
should be taken advantage of and replicated.
- International
Economic Relations
Strategy 8: Create a regime of international economic
relations and the infrastructure necessary to manage the intercourse
of our transactions with the rest of the world.
Trade in international services such as tourism and finance (asset
protection) with the developed markets of Europe and the Americas
represent the pillars of the economy. The advent of globalisation,
e-commerce and information technology requires rapid changes to
policies and strategies.
Application
The implementation of these strategies will require different approaches
depending on the group of stakeholders. Such factors as existing legal
and regulatory structures, the state of civil society, the tradition of
consultation, and the relative strength of government institutions
affect the type of implementation programme that may be adopted. Taking
into account these varying contexts, governments will review, consider
and adopt as appropriate the measures outlined in the Strategies for
Action as we attempt to implement the Policy Framework.
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