Page 52 - ATA

8 Antilliaans Dagblad Maandag 17 juni 2019
Opinie/Service

Reactivation of HET WEER OP
Advertentie
DE ANTILLEN

Verwachting voor N
our economy windkracht 4 - 5 bft W Z O
vanmiddag 12 uur
golfhoogte 1 - 2 m
BOVENWINDSE EILANDEN
By dr. Emsley D. Tromp ry understanding of and expe- Sint Maarten
When a nation faces serious rience in financial program-
economic problems, the logical ming. We are experiencing
policy response to solve those unusual economic problems Saba 29 Philipsburg 29
The Bottom
problems has to emerge from a that call for an unusual and Oranjestad
profound, and at the same time comprehensive policy response. St. Eustatius 29
broad analysis of the underlying While fiscal soundness is neces-
causes of those problems. One sary, it has to take a back-seat BENEDENWINDSE EILANDEN
has to diagnose the problems position to the reactivation of
correctly to come up with the our economy, which must be at
appropriate policy response. As the forefront of our economic 28
indicated by the calculation of agenda. 28
Oranjestad
the IMF of the baseline scena- Given the magnitude and Aruba Willemstad
rio, an incorrect policy response urgency of the problems we are Curaçao
may aggravate rather than solve facing, a sustainable solution is
those problems. possible only if we take a multi-
In the IMF parlance, one annual approach. A policy of 27
needs to engage in financial acquiescence toward Cft means 25 Kralendijk Bron: www.weather.com
programming: Financial pro- draconian fiscal measures with Bonaire
gramming is a framework to Emsley Tromp far-reaching negative social and Venezuela
analyze the current state of the economic consequences.
economy, forecast where the announced to address our eco- Given the size of our econo-
economy is headed without nomic ills will further deepen my, each percentage point
policy intervention, and identify our economic crisis. These growth will generate approxi-
economic policies that can policies will erode the purcha- mately ANG 17 million in addi-
change the course of the econo- sing power of the consumer tional tax revenues (various IMF
my, while taking the interde- with all of the attendant conse- and CBCS Staff reports). This
pendencies between economic, quences, both economic (e.g., estimate implies that with the
fiscal, and monetary policy into loss of jobs) and social (e.g., country’s current lackluster
account. increase in poverty, and brain growth, we cannot grow out of
In the case of Curaçao, rather drain by mid and high-level this problem with current poli-
than analyzing the current state professionals leaving the island cies.
of the economy, since 10-10-‘10, in search of employment el- In other words, if the adjust- VANDAAG
successive governments have sewhere) without addressing ment path makes compliance
consistently been blindsided by the objective they want to achie- with the Rft impossible, then Licht tot half bewolkt en van-
their urge to please College ve. we will have to come up with daag droog met kans op een
financieel toezicht (Cft) - while We must ask ourselves: will a some form of accommodation bui. De wind waait uit het
sound fiscal policy is a necessa- further increase in taxes impro- on the Kingdom level. Our oosten en matig tot vrij
ry, but not sufficient condition ve our competitiveness in the future and sound macroecono- krachtig, windkracht 4 tot 5;
for sustainable economic international financial sector? mic policy cannot hinge on past overdag af en toe krachtig in
growth - focusing only on bud- Will an increase in excises and decisions. uitschieters. De zee is vrij
getary imbalances. Therefore, import duties reactivate the The threat and subsequent rustig met golfhoogtes tus-
the economic crisis that we are refinery through a new opera- postponement of a Kingdom sen 1 en 2 meter.
experiencing today is the result tor, willing to make the necessa- instruction once again served to
of gross negligence by our poli- ry investments in the refinery? bring home the awesome force MORGEN
cymakers. As mentioned, since Will the announced measures Holland can project when it is
2012, I have warned of an im- create the necessary and suffi- unrestrained by rules or parlia- Licht tot half bewolkt en
pending economic crisis as a cient conditions to improve our mentary oversight. The mere droog.
result of decisions and/or policy airlift and hence strengthen the announcement of the possibili-
actions taken in the past (the tourism sector? Will they lead to ty of an instruction has crip-
termination of the grandfather the reversal of the net foreign pling effects on our economy.
clause of the offshore tax rate, exchange outflow and, hence, What was promised to be a tool
the expiration of the lease agree- improve the current account to promote fiscal soundness
ment with PdVSA, and the position of the balance of pay- came to be used as a weapon to
reversal of the net foreign ex- ments? extract concession from Cura-
change inflow) I have argued The answers to those ques- çao.
that if these problems are not tions indicate that contrary to Looking ahead, it is imperati- Zaterdag 15 juni
addressed in a timely way, the what the government purports ve for policymakers to put in
crisis may drag us into an eco- to achieve with the announced place a credible economic policy 5290
nomic abyss. measures, these measures will to achieve fiscal consolidation
Now in 2019, the economic lead to further economic con- and economic growth to avoid
crisis is gaining momentum, traction, poverty and brain this climate of instability crea- 6572
and yet our policymakers still drain, and eventually loss of ted by Holland.
seem blindsided by the Cft government revenue creating In summary, the appropriate
demands. We have to realize further budgetary disequilibri- policy response to our current 5996
that our budgetary problems um. crisis therefore should be: Ad-
cannot be seen in isolation, but The question becomes: if the dress our pressing economic
rather, as the result of our mis- announced set of measures are problems in the short run to Zondag 16 juni
takes in the realm of social-eco- not the right ones, what then? avoid falling into an economic
nomic policymaking. Given the What are the appropriate mea- abyss, and devise a medium- to 4820
nature and size of our current sures to take given the current long-run policy to improve the
budget deficit, no sustainable state of the economy? As argued resiliency of our economy to
solution is at hand without before, our problem is the eco- achieve sound macro-economic 5134
addressing the underlying eco- nomy. For the appropriate solu- policies.
nomic problems. tions, the government should 6444
The set of inflationary poli- not be talking to the Cft but Op pagina 14+15
cies that the government has rather to those with the necessa- The weaponization of Cft