Published On: Mon, May 27th, 2013

Productivity is too low

WillemstadWILLEMSTAD – The labor productivity Curaçao is too low and must be raised, as well as the overall educational and skills of professionals as well as a positive attitude. This and more was shown in the recently completed TAC’s final report ‘Strategies for sustainable long term economic development in Curaçao.  TAC is since the end of 2011 commissioned by the Ministry of General Affairs engaged in the development of a working durable and stable strategy for economic development.

Curacao scores substandard economically; both with respect to a group of benchmark internationals peers (Trinidad, Barbados, Bahamas 'S and Singapore), but also in terms of the island’s potential of what it should be able to perform. This performance is insufficient according to the TAC report 'Directly related to the low productivity growth.

A better equipped and skilled workforce, something which is associated with higher labor productivity, and improvement of the business and investment climate (making it more attractive to invest), which soon could lead to a doubling of the growth rate. If nothing happens - if there is no reform and no structural changes made – then over the next decade the Curaçao economy will only increase by about 1.7 percent per year.

But if Curacao does succeed in improving the productivity and the environment in which business is done than simulation shows that an annual growth of more than 2.5 to 3 percent of gross domestic product GDP can be achieved. Than Curaçao meets the benchmark performed by other countries'.

TAC is well aware that this is certainly not the first study on the Curaçao economy and  also knows that most of these reports were carried out. “The making of the recommendations is not the hardest part of a reform process,” the author warns. The "biggest challenge" is the implementation.

TAC recommends explicitly collective commitment (ownership) and for everyone to be involved ('Inclusiveness') in the implementation.

By: Mike Willemse

Click Tag(s) for Related Articles: