Economy is insecure!
According to Cromwell Smith, 95 to 98 percent of the businesses in the financial services sector are owned by foreign investors while 70 to 75 percent of the businesses in tourism are owned by expatriates. “Our economy is owned by a large measure by expatriates whose businesses bring the money into the Territory and whose businesses we the people of the BVI have to wait on for that money to come into the Territory.”
Mr. Cromwell reasoned that most of the money from the financial service sector goes to Government, employees and rents while the tourism money goes directly to taxi drivers, stores and hotels, which he says get the lion’s share. He noted that probably the biggest local company in the Virgin Islands is Clarence Thomas Ltd. and even that business has to wait until money comes into the Territory since its target market is the people of the Territory. He said such is the situation with a lot of small businesses.
The talk show host said such a situation makes the economy insecure because there are many instances when countries have an economic down turn or challenge where those businesses that bring the money into the country feel insecure about their profits and decide to go to another country where the “grass is greener”.
Co- Host Natalio Sowande Uhuru Wheatley gave an example as being American Airlines which holds a critical area of transportation through its subsidiary American Eagle. He said American Eagle is subsidized by Government even though they don’t have any real commitments to the Territory. Mr. Wheatey further said it was important that the Territory has its own airline so that even when “things get tough”, finances would remain in the Territory.
Mr. Cromwell then recalled when some time ago the pilots of American Airlines were threatening to strike and, which would have impacted on American Eagle here, that the local Chamber of Commerce had to write to the then President Bill Clinton to intervene since a strike would have crippled the economy as there would not have been any airlift into Beef Island from the United States during that tourist season.
Meanwhile, the hosts were in agreement that the National Business Bureau would help to minimise the risks to outside effects and economy trends since there would be a focus on more local production and monies would be circulating in the Territory although they did agree that keeping the money in the territory could still be a challenge.
“Our elected officials need to understand what they are doing and what their roles and responsibilities are from that perspective...so that they can plan in such a way that we minimise our risk in our exposure to that type of situation. The National Business Bureau is a fundamental aspect of making sure that mission is accomplished and so they need to understand the importance of the National Business Bureau and what it’s mission ought to be and what goals ought to be to make that mission a reality,” Mr. Smith said.
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