News
In a booming economy, how can TCI get the most out of direct foreign investments?
Ed Forbes
Concerned citizen of Grand Turk
#TurksandCaicos, August 30, 2022 – Turks and Caicos Islands is at an inflection point, which means, there needs to be “profound changes” to the way we attract foreign investors.
While many countries are still reeling from the devastating impact Covid-19 pandemic had on their economy, most of the tourism sector in TCI is on a rebound.
From the looks of it, our economic recovery plan appears to be in full gear and beginning to move again at a very fast pace. In my opinion, this in itself, is a signal of attraction to potential investors.
During a time of genuine crisis such as this prolonged covid19 pandemic, I must say, I was pleased to see how both administrations worked arduously together to find effective solutions to help save lives and keep our economy afloat.
This was done, regardless of the circumstances in order to achieve the desired outcome for the country.
Sadly, we loss a number of our citizens to this horrible virus including my own mother. Nevertheless, throughout the Covid-19 pandemic, both infection rates and hospitalization were relatively minimal compared to many other Caribbean countries.
A big thank you to our dedicated medical team, to include the Cuban medical brigade who assisted.
Our country needs more politicians who are willing to work across party lines, avoiding divisive social issues and focusing on promoting businesses and tourism for the benefit of our people. At the same time, it’s also important to maintain that balance of power in these islands.
With such rapid development and big corporations poised to reap huge profits, in my opinion, the country is in a good position to demand more from potential foreign investors wanting to do business in our islands.
With that being said, this brings me to my main points. With this economic boom, are we seeing enough of the trickle-down effect? Secondly, at this stage in our development, is TCI intentionally and purposely luring and incentivizing the right investors?
With TCI’s financial stability, how do we capitalize on this momentum to win on an even bigger front? What we cannot afford to do is to have our citizens losing faith in the shared enterprise of our country.
Whilst hotels and villas bring many job opportunities, it should not be the only economic engine of growth at this stage in our development. There are only so many buildings you can erect on a small developing island like Providenciales before we turn our towns into a concrete jungle.
Maybe it’s time to slow down a bit and start planning the future of the country more strategically. Not just in terms of physical structures, but workforce assessment, human investment, and development.
Furthermore, to optimize development and for a more sustainable economy, we must move beyond the creation of just service jobs. Not to take anything away from these kinds of jobs, but traditionally they are held by migrant workers and come with low paying wages unless you’re in top management positions.
Erecting more and more hotels mean there will be a need for more transportation, which drives the demands for more vehicles and additional access roads. There will also be a need for more grocery stores and products on demand etc.
What our citizens would like to see more off from our politicians, is a stronger push for foreign investments in our basic infrastructure needs. This may require more community driven discussions to help determine the pathway.
Arguably, there isn’t enough emphasis being placed on these critical areas to support such growth. For example, there is a growing need for a public transportation system, farming on a larger scale, waste management and
Perhaps, the creation of more higher paying jobs for our people, and jobs that will attract citizens in diaspora who may have the necessary skill sets beneficial to our country’s development.
With wages not keeping up with the growing rate of inflation, our people also need real paying jobs that match their qualifications, not just any jobs.
If we fail to change course, I’m afraid we run the risk of losing more of our young people to crime or some becoming diaspora as we have seen over the years.
We cannot and should not let big foreign investors dictate the outcomes for TCI without giving back to our communities in a meaningful way. This could be in the form of direct investment in trade schools, banking, reefs, and sea life sustainability projects etc.
This is our moment Turks Islanders!
In a free enterprise economy like ours, the truth to the matter is, the strength of our democracy will only work when everyone has an opportunity.
Not only should our country be in a position to attract private investment but to retain and leverage it for inclusive and sustainable economic growth.