GRENADA HAS ONE MORE CHANCE
Grenadian Down Under

Grenada, like many of its neighbors in the Caribbean, is experiencing serious economic challenges. Throughout the region, major productive sectors of our economies are in crisis.

Agriculture, which was our main foreign exchange earner in the early days, can no longer be the major export that it was. We have lost most, if not all, of our trade preferences and the global competition from larger countries has swallowed us. Manufacturing, for many years, was thought to be a sector that we could develop. However, except for Trinidad and Tobago and, to some extent, Jamaica manufacturing has failed in the region.

Tourism has served us well and has been the main engine of growth in our economies in recent times. In fact we have received world wide recognition individually and as a region for the quality of our tourism product.

This has led to an influx of investors in the last ten years looking to develop high end tourism. This has had varying success and has seen the creation of the luxurious Four Seasons Nevis, Fairmont Bermuda, Half Moon Jamaica, and others. It has also seen the closure of traditional hotels like the Jack Tar in St. Kitts, the abandonment of the Paradise Beach property in Barbados and, some might argue, an unfair distribution of profits made by the industry.

The main criticism of the industry has been that it has not kept profits in the region, paid its Caribbean workers well enough and it has not had the concern that it should have had for the environment and natural surroundings.

However, what no one can argue is that tourism has stimulated our economy and has kept us afloat. So what will the impact of the global economic crisis be in the region? Already the huge investment inflows have even stopped or significantly slowed.

In Grenada, we have not been immune to this. There has been the virtual slowing down of a number of projects. Four Seasons, Bacolet Bay, De Savary, Point Marquis, Levera and Grand Harbour have all significantly scaled down their plans for development here. They have either said the time is not right now and have mothballed the projects or they have said we are looking to do a lot less now than what we had originally planned.

When you think of it this is sad not just for the country but for the people of this country. The many jobs and opportunities promised will now not materialize. What is more direct and stark is that many of the construction workers, engineers and others working on these projects have either started to be laid off or will be laid off very soon. The picture will get gloomier.

Many have argued that we could not have avoided this because of the global economic crisis. However, we cannot just say this and throw our hands in the air. Yes times are hard and mortgages are hard to get and investment capital is drying up. However, we have to take steps to help ourselves as well. The recent public discrediting of Lewis Hamilton has hurt Grenada, the statements about the empty Treasury have hurt Grenada, the attacks on the US Ambassador by one of our Ambassadors have hurt Grenada and the continued tit for tat politics have hurt Grenada.   

Added to this, sectors which have depended on the productive sectors are now beginning to be affected. The construction industry and the communications sector are two examples. The latest word is that our largest communications company Cable and Wireless and our largest construction company are making major cuts in their workforce because of economic pressures.

So where do we find hope? Or can we find Hope? If our more powerful tourism neighbours are feeling the pinch can we survive? YES WE CAN.

Grenada has a trump card that very few are looking at right now. We have oil and gas. Most Grenadians think that this is a dream but it is not. We have oil and gas deposits right in our waters. Enough oil and gas to significantly raise the standard of living for every single Grenadian. However, we need to start to tap this resource now.

Oil and gas are so called recession proof industries which have weathered the storm. Unlike tourism, which is dependent on whether people have money to spend, oil and gas is now a need and we all have to purchase it whether we like it or not. In tough times we may purchase less of it, but the fact remains that we still have to. This is not so with tourism, as we can choose not to travel for years if we feel like.

 It is widely known in Grenada that the last Government gave a contract for exploration to a registered Grenadian company called Global Petroleum Company. Grenadians would not like to see this company suffer the same fate as Lewis Hamilton. Oil and Gas can be our lifeline. It is hoped that the Government sees the wisdom and potential of this sector and act on it immediately.