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Ungated Developments in Nevis - Working with the Community!
by Sam Kearns

March 2007

Here in the Federation of St. Kitts & Nevis, a programme of regeneration is in progress which aims to bring the islands to the forefront of the Caribbean tourist industry.

In 2005, the Federation faced the mammoth challenge of dismantling the sugar industry that had held sway for over 400 years. This industry had touched the lives of every citizen of the Federation, and exerted an imposing influence on its culture and institutions, and on the shape and form of its society.

When the people took the reins from the planters in the 1970’s, the industry was already in very poor shape but sugar was the only thing that the vast majority of the workers knew, and there were very few other options open to them at that time. The choice faced by most of them was continued employment in the sugar industry or a protracted state of extreme poverty and deprivation, in short, sugar or starvation.

For over a quarter of a century, the island’s citizens held onto the reins and continued to eek an existence out of an industry that was continuously troubled by erratic prices in international markets, fluctuating exchange rates, poor weather conditions, natural disasters and a wide array of other maladies.

The diversification of the economy has been one of the primary objectives of the St. Kitts and Nevis Government and why it has so vigorously taken up the challenge of building a well diversified service economy. So determined were they that the workers would not be left without viable options in the event they were forced out of sugar production.

However, the implementation of the strategy for transforming the economy did not begin when the factory horn signaled for the last time. From the moment the new government entered office in 1995, they immediately tackled the unemployment problem that had kept so many of the young people on the periphery of society.

They therefore pursued a policy of infrastructure-led growth and of creating an economic climate conducive to domestic and foreign investment.

Investment in the Federation infrastructure has also been high on the Government list. The road network, which is continually being upgraded, has drawn commendation throughout the region. The telecommunications systems are state-of-the-art and have facilitated the participation of the people and enterprises in the regional and global economies. Indeed the recent battle between the telecommunication giants that has been bringing down the cost of telecommunication in our Federation at a rapid pace, testifies to the success of the Government’s strategy of liberalizing the telecommunications industry and fostering the competition for the benefit of consumers.

The Government has also invested heavily in port infrastructure. The redesign of Port Zante, St. Kitts has made it more secure through the implementation of a massive revetment project that has brought confidence to investors and has resulted in an immense surge in demand for real estate at Port Zante. This facility, which remained idle for so long, is now buzzing with activity and is acting as a magnet for substantial inflows of foreign investment. In addition, the contractors are now mobilizing with the view to implement a contract for the upgrading and expansion of the Robert L. Bradshaw International Airport.

With the planned construction of a car ferry port in Jones Bay, Nevis, the efforts at creating an investor-friendly climate and promoting economic growth have yielded significant results and helped to prepare us for the transition of the economy from the production of sugar. The arrival of the Marriott Hotel has resulted in a significant boost in tourism arrivals and has spawned a wide array of tourism-related enterprises including hotels, restaurants, gift shops and various entertainment facilities.

There are a number of new developments springing up in both Nevis and St. Kitts.

One such development in Cades Bay, Nevis, seeks to move away from the ‘gated’ or ‘inclusive’ resort models by genuinely embracing the immediate and larger community. Their aim is to encourage genuine interaction between resort guest and the Nevisian community.

Further, the development will keep its design concept within traditional Nevisian architecture and aims to form a structure to keep the manufacture of fixtures and fittings for the project within Nevis.

The development design rejected the cold and impersonal use of UPVC windows and fascias instead moving toward the warmth brought by natural materials crafted onsite. To this end, traditionally made timber windows and doors were chosen.

However, during the research stage of the project, the design team noticed that there was little in the way of joinery manufacture on the island. This not only made imported material expensive but also gave the island no sustainable manufacturing base. Whilst the local craftsmen had great skill, they worked in small, disjointed groups and were therefore unable to offer the production quantities required by a developer.

By establishing a joinery workshop producing high quality, hand finished products for its own needs and also the wider community, using the skills of local craftsmen coupled with a modern business model, the development has established a basis for trust and co-operation which is an excellent model.

These plans are expected to be fully embraced by the Federation of St. Kitts & Nevis who see the potential not only in local employment but also an opportunity for exporting to neighbouring islands.

This type of planned development and manufacturing enterprise reinforces the outstanding performance of St. Kitts & Nevis in attracting investments to their shores. During the 1980’s, Direct Foreign Investment stood at an annual average of 11.3% of GDP, then at 12.5% in the 1990’s and at an impressive 22.8% since the turn of the century.

It is therefore not surprising that in 2002, St. Kitts and Nevis was ranked third, after Luxembourg and Chad in the United Nations Index of Foreign Direct Investment Performance. The OECS as a whole ranked 20th in this important index.

The Government’s very successful programme of social development has also helped to prepare the country to cater to the needs of the people affected by the demise of the sugar industry. In particular, they have provided affordable homes to over 1500 families in the Federation, including the families of hundreds of sugar workers.

They have revolutionized their health system and have provided easy access to medical and health care for the whole population, including the poor, the elderly, and the mentally and physically challenged. In fact it is through this impressive health system that the sugar workers continue to enjoy, free of charge, the high quality medical care that was previously provided by the SSMC.

The Social Security Scheme has grown by leaps and bounds, and has progressively increased its minimum pensions and its assistance pensions to improve the lot of many indigents and the older generation. The Social Security Scheme has also taken over the pension obligations of the SSMC as a means of protecting the welfare of retired sugar workers who were enjoying pensions paid by the SSMC at the time of its closure.

It is clear, therefore that although the Government has unveiled and implemented an impressive package of assistance tailored specifically to the needs of displaced sugar workers, the extensive social infrastructure that has been put in place for the benefit of all the citizens of the Federation, has helped to cushion the social impact of the closure of the sugar industry.

Moreover, the growth of the economy over the years has helped to give the sugar workers a number of employment and entrepreneurial options to choose from as they seek to build a better life for themselves and their families.

All of these issues must undoubtedly exert a significant influence on the strategic focus of the economic policy formulation and implementation in the Federation. In particular, this development strategy must continue to give high priority to fiscal consolidation and to the reduction of the public debt, which if left unchecked, could undermine the growth potential of the economy and put at risk much of the outstanding social and economic progress.

However, the approach has to be balanced and it must give due weight to all the objectives that have been set and to all the factors critical to the advancement of the quality of life of all the people in St. Kitts & Nevis.

In short, there is still much to do before the integration of island life and the rigors of a commercially led economy are complete but with Government control and thoughtful foreign investment it surely will not be far away.

For more information about this article, Sam Kearns.

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