VI Private sector needs reviving - Douglas Wheatley
Mr. Wheatley made these statements while speaking on his talk show, ‘Speak out BVI’ that aired August 28, 2012 on a local radio station.
He added that quite often he hears people talking about the private sector today, as well as the public sector which is Government.
He said that they often say that the VI needs a very active private sector as that in the past, because the private sector is not very active and is taking a toll on Virgin Islanders.
“If you were to reflect on our history and our development, you would realize that we had a very, very active private sector stretching back perhaps to the 1940/50’s.”
Mr. Wheatley went on to clarify this by saying “What do I mean by that? In those days the private sector comprised of sole proprietorships and some partnerships which people classified as leaky ships, and there were also family owned businesses.”
He added that almost everyone in the Virgin Islands was involved in some kind of business activity. “They were involved in a multiplicity of businesses.”
For instance, he said, “you may have somebody in East End selling kerosene for lamps we had in those times, people were involved in boat ownership, and as a matter of fact about every other family had some kind of boat. There was a very active private sector; everyone was involved in some kind of business activity no matter how big or small.”
Mr. Wheatley stated on his talk show, that people used to sell different stuff, and offer many different services. He said almost every profession known, existed in the VI.
“Our people [were] gainfully employed all the time, there was a very vibrant private sector but when you read books, you don’t hear about it; it’s a fact of life. Our private sector needs to be revived.”
6 Responses to “VI Private sector needs reviving - Douglas Wheatley”
Moreover, this new economy has provided a myriad of business opportunities, employment, as well as a myriad of different job titles. In the past common job titles included farmer, shopkeeper, shipwright, sailor, captain, or civil servants. Now, engineer, doctor, teacher, carpenter, accountant, IT manager, electrician, DJ, real estate manager, nurse, lab tech, surveyor, taxi driver, reporter, politician, auto mechanic, plumber, ...etc can be added. The private sector is still a key driver in the economy. And here is the evidence to support it.
According to employment statistics provided by DPU for 2010, the BVI's employed work force was approx 19,000 with a labour participation rate of appox 90%. Of the approx 19,000 workers, approx 6000 or approx 33% were employed by the public sector. Is the the 33% public sector rate too high? Some data showed that the public sector employment rate among small developing countries is higher than in larger developed countries. Size, lack of resources, economic diversity....etc may be contributing factors in the differing rate.
Nonetheless, the size of the public sector should be evaluated, bench marked against similar sized locales, and structural adjustments made as appropriate. The size of the public sector is a sensitive, political hot potato that no politician has the courage to broach; it is the elephant in the room. But it can only be kicked so far down the road, for eventually there will be no more room to kick it. It is no secret that the public sector is bloated and needs to be trimmed. It needs to address now before the village has to be burned to save the village. The USVI had a similar problem and it kicked the can down the road until it ran out of room and eventually they had to bite the bullet.
The private sector needs to be strengthen to relieve the pressure off of the public sector. It will be a challenge to do so. But every effort must be made to increase the 67% public sector employment rate. A first step in increasing the private sector numbers and lowering the public sectors is ramping up education and training to equip Virgin Islanders to embrace and fully take advantages of and meet demands provided by economic growth and concomitant economic development.