Grenada Readies For Structural Adjustment

by Leroy Baker, Tax-News.com, Washington

09 October 2001

Although keen to point out that the economy is not doing as badly as some others in the Caribbean region such as Dominica with its banana industry, Grenada's Prime Minister, Dr Keith Mitchell, has warned that the country's economy was in decline before the September 11 terrorist attacks on America and the situation has since worsened.

As a result the PM has declared that a structural adjustment programme will be imposed and measures taken to improve revenue collection, cut back on public spending and diversify agriculture to ensure food security.

Dr Mitchell has also recognised the promotion of inter-regional travel as a key step in protecting the Caribbean region from the downturn of the American markets. During a special meeting of the Organisation of Eastern Caribbean States (OECS), it was decided that 'discretionary concessions on duty payments would be discontinued and only statutory and other authorized concessions will be granted.'

The OECS also stated that it would aim to secure the 'expeditious conclusions of the telecommunications reform and modernisation programme and the urgent promotion of the information and communication technology initiatives to stimulate economic transformation.'

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