The Millennial Workforce by STAR Publishing

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The Millennial Workforce How can employers make the most of the next generation’s untapped potential? By Catherine Morris, STAR Businessweek Correspondent

Millennials, defined by Pew Research as those born between 1981 and 1996, and post-millennials are now ensconced in the Caribbean workplace and driving change across all kinds of regional industries. But their Gen X employers may still be struggling with how to capitalise on their skill-sets, attributes and unrealised potential. Making the most of the next generation means playing to their strengths, and creating opportunities where they can thrive. Continued on page 4

Brussels urges crackdown on wealthy ‘golden visa’ investors EU states told to tighten checks on guard against money laundering and corruption Pages 3

Juan Guaidó urges UK to safeguard Venezuela’s gold Bank of England is refusing to hand over US$1.2bn in bullion to Maduro Pages 7

Malta to offer UK citizens 10-year residency after Brexit Malta will offer UK citizens full residency rights lasting 10 years even if Britain crashes out of the EU without an exit deal Pages 7

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An Independent Examination: Measuring the Success of Saint Lucia as a Nation State By ED Kennedy, STAR Businessweek Correspondent

BY Christian Wayne – Editor at Large

In every edition of STAR Businessweek we make special effort to distill global trends and policy decisions into a local brew of relevance and thought-provoking interest. For example, one of our lead stories this week analyses the results of a rigorous four-year research project conducted by the InterAmerican Development Bank on millennials in Latin American and Caribbean workplaces. The big takeaway — to this reader at least — is that our generation is not going to be the one to turn the Caribbean into the Wakanda we all dream it could be. Maybe Gen Z will have a better shot. Of the millennials who have not already emigrated to the ABCs (America, Britain or Canada) for tertiary studies, the local education landscape provides something akin to a bridge to nowhere. The secondary schools in Saint Lucia churn out 2,200 or so fifth form students each year. Only 65% of them will pass their CSEC exams. Of that 65%, no one has even the faintest idea — including the Ministry of Education — how many of them will go on to earn a first degree or a graduate degree. If you can’t measure it, you can’t manage it, right? If people are truly a country’s most valuable resource, our crude oil, then why can’t anyone earn an internationally recognized first degree in this country? This criticism is hardly novel but I’ll make a humble attempt at proffering a solution: instead of the government paying, in the form of financial concessions, low-quality, foreign, for-profit universities to set-up a satellite campus on this island instead of that island, why don’t we invite graduate-degree holders to become Saint Lucian residents by offering them financial incentives based on some kind of skills-based framework? We’d stand to solve several problems with such a programme; for example, Saint Lucians who have been part of the so-called brain drain would have an attractive reason to return home. In return, the island would be able to increase the competitiveness of our labour force in a shorter period of time and thus attract more employment opportunities to our shores. There would be other knock-on effects as well, like the benefit to the property market as these returning Saint Lucians would presumably need to find housing. If successful, such a programme would increase the government’s tax base, there’d be increased

consumption, more duties at the ports . . . you get the picture. Countries like Albania are leading the charge in re-engaging their large diaspora population through tailored expatriate tax regimes like the one hinted at here. This brings me to another interesting headline on page 7: Malta to Offer UK Citizens 10year Residency After Brexit. Now, you may be asking yourself what this has to do with my attempt at hacking the labour market but bear with me. Malta is home to one of the best performing Citizenship/Residency by Investment programmes in the world; an industry Saint Lucia likes to pretend we’re part of. If you’ve ever been to Malta, and can muster enough empathy to put yourself in the shoes of a wealthy Middle Eastern, Eastern European, Chinese or African investor in the market for a new passport, then why on Earth would that person choose to become Saint Lucian when they could just as easily become a Maltese resident and subsequently enjoy cheap, visafree travel to the EU? Maybe Ralph Gonsalves of SVG went through a similar thought exercise when he decided his country would not sell passports. I’m a major supporter of CBI/RBI and what it can do to transform a small nation’s labour market dynamics, but I fear that policymakers who look at such programmes as purely money-making endeavours are misguided. The real potential of these programmes to drive national development is, in my opinion, not to halfheartedly target rich people with shithole passports, but rather to target skilled people with shithole passports. There’s a difference. Imagine for a minute if Saint Lucia were to roll out the same red-carpet treatment for skilled workers as it did for foreign investors and their companies. “Oh, you’re from Venezuela and have a PhD in Food Science, but lost your job and life savings when your country’s inflation rate went up by 1 million per cent? We’ll take you! And we even have a specialized expatriate tax regime that you might be eligible for.” Food for thought, no? It’s Nothing Personal. It’s Business. Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

Saint Lucia will celebrate its 40th anniversary of independence on February 22nd 2019

n February 22nd’s Independence Day, Saint Lucia celebrates its 40th year as a nation state.This year’s Independence Day is, of course, one for special celebration and cheer. Over four decades Saint Lucia has established and grown a unique identity for the people who call this Caribbean island home. Yet, like any anniversary, this year’s Independence Day is also one for deep consideration, especially as it’s a decennial. In reflecting on the nation of Saint Lucia in 2019, there are many tools and resources available when it comes to measuring the success of the country since independence, its greatest strengths, and the hurdles ahead that it must clear to grow further. So how does Saint Lucia rank right now among the nations of the world? And what does this tell us about the future of the country going forward beyond February 22nd?

How Progress is Measured

When it comes to defining the success of a nation, a clear distinction must be made between the profitability seen in Gross Domestic Product (GDP) alone, and other factors that collectively make up a nation’s life, and the value of

being a part of it. After all, while the United States and China may be the world’s two biggest economies, the civil freedoms and right to participate in the private sector, as enjoyed by the average American, are markedly different from the restrictions of personal rights and private business that the average Chinese resident faces daily. By this same measure, while none of the Nordic nations of Denmark, Norway and Sweden rival the US or China, they regularly top the table of civil and social indexes when it comes to measuring the quality of life and society that their average citizens can experience.

Saint Lucia by the Numbers

According to the Social Progress Index — a widely recognised yardstick for a comprehensive and diverse measurement of nations globally — Saint Lucia ranks 71st out of 146 nations, with good scores for nutrition and basic medical care, water and sanitation, and access to electricity, and also ranking highly in the rate of mobile telephone subscriptions and political rights. While any cursory read of Continued on page 5

Citizenship by Investment

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Brussels urges crackdown on wealthy ‘golden visa’ investors

EU states told to tighten checks on guard against money laundering and corruption By Mehreen Khan and Michael Peel in Brussels

russels is telling EU member states to tighten security checks on wealthy investors applying for “golden visas”, warning that the schemes have opened the bloc to money laundering, corruption and organised crime. The European Commission last month made its first recommendations to countries on how to protect investment-for-status schemes — in which governments offer residence rights or full citizenship in exchange for investment — from abuse. The move comes in the wake of highprofile scandals over money laundering in the past year, such as the Danske Bank case, in which the Estonian branch of Denmark’s biggest lender is suspected of laundering 200bn Euros, mainly from former Soviet states. The advice is contained in a report in which Brussels examines “citizenship for sale” schemes worth billions of Euros run by Malta, Cyprus and Bulgaria. The schemes allow wealthy individuals to buy EU passports, which carry benefits such as free movement inside the bloc. Anti-graft campaigners have warned that a lack of transparency on awarding passports has opened the door to criminals from countries with a high level of corruption to operate in Europe. About 20 EU governments, including the UK, Portugal and Spain, also offer more limited residency rights to wealthy non-EU citizens in return for investment in property, government bonds, or sometimes directly into a

Danske Bank is suspected of laundering €200bn Euros, mainly from former Soviet states © Bloomberg

government’s budget. “Investor citizenship and residence schemes create a range of risks for member states and for the union as a whole: in particular, risks to security, including the possibility of infiltration of non-EU organised crime groups, as well as risks of money-laundering, corruption and tax evasion”, says a draft version of the report seen by the Financial Times. The report, the commission’s first looking into the schemes, identifies a number of concerns, including governments

having varying standards on security and background checks for applicants and the sources of their wealth. Brussels also highlights that private investment companies — which work in conjunction with governments in Cyprus and Malta to run the schemes — are under no legal obligation to carry out security checks in line with EU anti-money laundering rules. The EU’s 28 member states have won about 25bn Euros of foreign direct investment over the past 10 years from

Investor citizenship and residence schemes create a range of risks for member states and for the union as a whole

schemes that offer residence rights or full citizenship in exchange, according to research from Global Witness and Transparency International. Although Brussels has no direct power to police the schemes, it will urge governments to agree on common security checks for all applicants and push for mandatory lists of the number of applications made and rejected every year, along with their countries of origin. The report does not single out countries. EU officials said the findings were designed to avoid sparking conflicts between Brussels and member states over rule of law ahead of European Parliament elections in May. Laure Brillaud, an anti-money laundering policy officer for Transparency International EU, the campaign group, said the commission’s proposals “clearly lack the ambition we would have expected in light of recent scandals”. These had “highlighted how the absence of harmonised regulations on the golden visa industry at EU level is making EU borders porous to criminals and corrupt individuals”, she said. “The EU dimension to the problem is clear, the solution shall also be European, yet the commission has missed the opportunity to propose an ambitious agenda for an EU-wide regulation of the industry,” she added. The Investment Migration Council, an industry body that represents investors and governments that take part in the schemes, said the commission’s report failed to acknowledge the role of intermediaries in strengthening the diligence around them. “Many of the risks of investment migration highlighted in the report, such as tax evasion, are not exclusive to investment migration and apply to other forms of acquired citizenship such as naturalisation,” said Dimitry Kochenov, chairman of the IMC.

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The Millennial Workforce Continued from page 1

According to the IDB, the millennial generation lack certain cognitive skills — around 40 per cent cannot do simple maths equations and linguistic fluency is low. Many young people are not fluent in a second language which is of particular concern given the Caribbean’s reliance on international business

Skills gaps

The Inter-American Development Bank has been surveying more than 15,000 young people throughout Latin America and the Caribbean for an intensive four-year research project on the millennial generation. Researchers published their findings in a report last year, showing that these young workers are an untapped resource with huge potential — provided skills gaps and lack of certain competencies are addressed. According to the IDB, the millennial generation lack certain cognitive skills — around 40 per cent cannot do simple

maths equations and linguistic fluency is low. Many young people are not fluent in a second language which is of particular concern given the Caribbean’s reliance on international business. In fields such as financial services, which often involve dealing with clients from all over the world, fluency in another language is an important asset and can often give those entering the sector a leg-up over their competition. In the Caribbean’s top industry of tourism, dealing with different nationalities is a daily occurrence and employees in the trade would benefit from a working knowledge of

Spanish and other European languages. Around 85 per cent of millennials in Latin America and the Caribbean want to complete higher education according to the IDB but only 40 per cent actually do so, highlighting a worrisome gap between demand and capacity. This ambitious generation may be eyeing a tertiary education but are often prevented by lack of financial resources, lack of access and lack of support.

Emotion and ethics

Millennials tend to think with their

hearts rather than their heads. While this can cause cognitive gaps, it means they shine when it comes to socio-emotional skills. They tend to be more optimistic, aspirational and confident than their Gen X colleagues, making them natural motivators around the office. Their natural empathy and optimism are also a benefit in the services sector. Tourism is the number one employer in the region and this is where millennials can put their strong socio-emotional skills to good use. This generation is also an innovative force to be reckoned with, keeping ahead of trends and poised to identify the ‘next big thing’. This makes millennials forwardthinkers which explains their proliferation in the technology space. Tech firms are increasingly founded and staffed by millennials who are comfortable with the jargon, expertise and unpredictable nature of the business. But aspirational millennials want to do more than just make money. They want to make a difference and have a real impact on the communities in which they work. This can be seen across all industries in the Caribbean from young entrepreneurs introducing new ways of farming to environmentalist thinkers reforming waste management practices.

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Integrating their values, and their lives, to their work is key for millennials who crave flexibility in the workplace. They’re ready to work hard but don’t want to be tied to a desk. And this generation won’t toil for years in an unsatisfying job that doesn’t cater to their needs; they are far less likely to be loyal to employers than their older counterparts, making it crucial for employers to use them in meaningful roles and give them responsibilities and opportunities that challenge them, such as ongoing training and leadership positions.

Achieving their potential

According to PwC, millennials will account for half of the global workforce by 2050 and are set to transform economies, industries and attitudes. In the first half of 2018, Saint Lucia’s workforce included over 25,500 young people aged 20-34. How to harness the power of this generation of workers is something both the public and private sectors should be considering. Enabling millennials and post-millennials to play to their strengths is a more constructive dialogue than the usual negative press this generation receives. Youth unemployment is at 38.5 per cent in Saint Lucia. Getting young people into work means giving them the tools they need, and creating opportunities. A focus on education is key — giving those young people who want schooling, access to colleges and courses that will help them succeed. Embarking on its EC$1.4m GiNet initiative this year, the government is focusing on bringing technology into classrooms to engage younger people and prioritise digital learning.

Those at the top end of the millennial spectrum, long out of education, are looking to create their own opportunities and often need help bringing their innovative ideas to market. This is where mechanisms such as micro-loans, SME technical support, grants, crowdfunding and angel investing networks can help. Millennials want creative solutions to their funding challenges and are equally as comfortable seeking start-up capital through digital channels and non-traditional lenders as they are banks and development organisations. For those young workers set on a career path and hoping to make their mark in a vocational setting, getting the right office culture is important. A harmonious inter-generational workplace involves sharing skills and experiences. Older colleagues can learn from their tech-savvy and forward-looking younger counterparts while giving millennials the benefit of their experience on the job. According to the IDB, the region’s millennials are optimistic about their future. In order to ensure this optimism is well-founded, the Bank suggests policy intervention in several areas: access to the development of skills (in particular high-quality and relevant skills), digital training programmes, apprenticeship schemes and greater guidance and information. The report concludes: “Achieving sustainable development requires more inclusive economies and a determined effort to raise the human capital. Investing in young people must be a priority. Offering opportunities to this important sector of the population is good for economic development, social cohesion and the general welfare.”

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An Independent Examination: Measuring the Success of Saint Lucia as a Nation State Continued from page 2

on its years since independence, but on what may make it more independent still. Just as Saint Lucia’s independence comes with acknowledgement of strengths acquired, and of the challenges the nation will face ahead, so too do neighbouring nations undertake the same. In a notable speech in 2017 during Saint Vincent and the Grenadines’ thirty eighth independence anniversary, Prime Minister Ralph E. Gonsalves referenced the changing dynamics of the Caribbean and the wider world requiring new consideration on what it means to be a citizen, and the value of holding citizenship. He called it “the highest office in the land” and stated, “This fundamental truth” would stop his government “from joining any bandwagon, however tempting its lure of easy money, which urges us to sell our citizenship and our passport.” While Prime Minister Gonsalves surely won some fans for his views in declaring, “Our citizenship is not for sale; it is not a commodity for trade or commerce,” presently his nation is the only one out of the six member nations of the OECS to not offer a Citizenship by Investment Programme. The opposition New Democratic Party has committed to introduce such a scheme should it win office at the next election in 2020.

STAR Businessweek articles of 2018 alone would show there remains much progress to be made in health, energy, and communications, the foundations of a successful nation are evidenced here. Within Transparency International’s Corruption Perceptions Index that measures public sector health, Saint Lucia has ranked 50 out of the 180 nations measured across the world. Any fair observer would identify value in improving this ranking, but this also comes at a time when Transparency International is recognising new threats to nations at the very top of the index. If Castries can maintain a strong and steady approach to reforms and optimisation of processes, there will be ample room for optimism. This is affirmed by the World Bank Governance Indicators which show Saint Lucia scoring regularly in the mid 70s and 80s (out of 100) when it comes to the strength of its government processes and rule of law. By no means will all Saint Lucians agree with all decisions made by the government of the day or those in the legal sector but the cornerstones of these systems are strong, and that bodes well for greater growth and enhancement of processes in the future. Beyond indicators and data alone, independence is also, at its core, a question of identity. As well as Saint Lucia reaching 40 years of independence, neighbouring nations have also been in a celebratory mood lately.

An Independent Nation, A Shared Future

The experiences of surrounding nations affirms the reality that independence celebrations are never just tributes to civic life alone, but can also be highly political. It is something Saint Lucians will reflect on in the weeks and months ahead. While there is much to cheer about in the history and achievements of Saint Lucians, there’s no escaping the reality that youth employment here remains high, the health care system has been embattled, crime is reaching unprecedented levels, and controversy continues surrounding the future of Citizenship by Investment Programmes. Yet though independence is a celebration of an individual nation, it is also a celebration of the people who form the country. Challenges that exist will not all be solved by February 22nd, but a greater sense of shared identity and community will speed progress in addressing them. That’s something to toast to, cheer for, and celebrate, this month and beyond.

The Neighbours’ Parties

Dominica celebrated 40 years of independence last November. In his Independence Day address to the nation, Prime Minister Roosevelt Skerrit encapsulated the enduring faith in God that Dominicans have always held, while heralding the practical progress they have made in the social arena, citing the victories against what Skerrit notably called “the war on homelessness and helplessness”. In complement to Saint Lucia, Saint Vincent and the Grenadines is set to celebrate 50 years of independence this October. 2019 will also be the 10-year anniversary of the 2009 republican referendum when citizens were asked to vote on whether the nation would replace Queen Elizabeth II as their head of state, and elect a president. The country will be reflecting not only

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Jamaica May Have To Cede Economic Sovereignty For Logistics Hub By McPherson Thompson

amaica has to decide whether it is ready to cede control of sovereign assets to outside investors to achieve its ambition of becoming a global logistics hub, in the example of Singapore and Dubai, says British High Commissioner to Jamaica Asif Ahmad. Jamaica wants to position itself to join Rotterdam, Dubai and Singapore as the fourth node in the international logistics chain – a project that it has been talking about for several years and across political administrations. “Some conversations I have had here lead me to believe that there is ambition for Jamaica to become a mega-logistics hub,” said Ahmad. “These are visions of a Dubai or Singapore in the Caribbean. Is it possible? Can it be done? It would be easy for me to flatter everyone and say, of course,” he said. However, Ahmad said Jamaica, unlike Dubai, does not have a royal cousin with deep oil pockets, while Singapore has deliberately expanded its land mass and has been open to migration. He said Singapore has also invested in facilities that expatriates need for their

families and work. In addition, it has an open attitude towards globalisation and has no protection policies for inefficient businesses. “For Jamaica to follow the example of Singapore, it has to accept the notion that anyone can own the mega-logistics hub,” said Ahmad, while addressing the 14th regional investments and capital markets conference of the Jamaica Stock Exchange. The conference ran from January 22-24, 2019. “I do not think any company listed on the Jamaica Stock Exchange would want to take on the business risk on its own of building a mega hub in the hope of being successful,” he said.

FOREIGN PARTNERS

The high commissioner said that in Britain, “our ports are operated by owners from Dubai, Hong Kong and beyond. Our flagship airports are owned by international consortia. Is Jamaica ready to cede this level of business sovereignty? This is not a question that I can answer. It is for Jamaicans to decide,” he said. “Where we are more cautious is ceding economic territory and

British High Commissioner to Jamaica and The Bahamas, Asif Ahmad

sovereignty to foreign governments and state-owned corporations.” Jamaica, too, has taken on foreign partners to manage key assets, including its largest cargo port, its largest international airport, and soon its second-largest airport. These deals have been done under concession agreements under which the assets will revert to the ownership of the Jamaican government after several decades. Ahmad suggested that Jamaica should first focus on building its logistics capability for its own needs. “A change step in agriculture and the associated food industry will make investment in logistics viable,” he said. However, he questioned whether a new airport at Vernamfield, Clarendon, which has long been slated to be developed to provide international air cargo and logistics services, can work, noting that air cargo currently is mainly hubbed out of the United States to the Caribbean. “I do not think it is realistic to think that can be dislodged easily by Jamaica,” he said. “I believe that more intensive passenger traffic with new routes and airline links will offer more potential for a regional cargo business to follow,” the high commissioner said. He also took a swipe at Jamaica’s import

duties saying that they need to be set at a range where they are not a deterrent to trade, noting that levies on automobiles, for example, distort the market altogether. Ahmad also urged Jamaica to strengthen its manufacturing base and grow its exports, saying that an ever increasing number of containers come into the ports, but not nearly enough leave the country with Jamaican goods. “Instead, containers are lying idle or are turning into pop up stores, bars and homes,” said the high commissioner. Ahmad acknowledged that energy costs are a constraint on manufacturing, but said more investment in renewable energy should help. He welcomed the shift to liquefied natural gas, but said more can be done on solar power. He also said the Jamaican government needs to look more urgently at the very real opportunity to convert waste to energy. “Years have been wasted while the dump sites pile up and are set on fire,” said Ahmad, apparently referring to the frequent fires at the Riverton City dump in Kingston, in particular. “I find it difficult to understand why no action has been taken,” he said. Article originally published in The Jamaica Gleaner

Venezuela

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Juan Guaidó urges UK to safeguard Venezuela’s gold

Bank of England is refusing to hand over $1.2bn in bullion to Maduro By Gideon Long, Andean Correspondent

Foreign Policy / Brexit

Malta to offer UK citizens 10-year residency after Brexit

By Mehreen Khan in Brussels

Venezuela’s President Nicolas Maduro speaking to a commander during military exercises at the Naval Base Agustin Armario in Puerto Cabello, Venezuela, in January 2019 © AFP

he leader of Venezuela’s opposition has written to Theresa May and Bank of England governor Mark Carney urging them not to send US$1.2bn from any sale of Venezuelan gold reserves to “the illegitimate and kleptocratic regime” of President Nicolás Maduro. Juan Guaidó, who has been recognised as Venezuelan president by the US and around a dozen other countries, said the transaction would be fraudulent and the money would be used “to repress and brutalise the Venezuelan people”. “Maduro has stolen a huge quantity of state assets,” he wrote in the letter, dated January 26. “There is no doubt that he will, if allowed, also steal the assets held by the Bank of England, which rightly ought to be saved to support the recovery of Venezuela.” The cash-strapped Maduro regime has been trying to get its hand on the gold for months. Until late last year there were around 14 tonnes in the bank’s vaults, worth some $550m, but a week ago Reuters said the figure had jumped to 31 tonnes after Venezuela closed out a gold swap deal with Deutsche Bank. The head of the Venezuelan central bank, Calixto Ortega, led a delegation to London last month in a bid to access the gold, sell it and retrieve the proceeds. Venezuelan online news outlet Caracas Chronicles said the Bank of England had twice refused to repatriate the

Malta’s Prime Minister Joseph Muscat addresses a joint news conference after holding talks on Brexit in Valletta, Malta, March 29, 2017. REUTERS Darrin Zammit Lupi File Photo

reserves due to “compliance-related reasons”. The BoE said in a statement: “In all its operations, the Bank observes the highest standards of risk management and abides by all relevant legislation, including applicable financial sanctions.” Mr Guaidó argues that as Mr Maduro is an illegitimate president, Mr Ortega is not the head of the central bank. Under the Venezuelan constitution, the president nominates the bank head who is then confirmed by Congress. However, Mr Maduro no longer recognises the democratically elected Congress and did not consult it when choosing Mr Ortega. Mr Guaidó said he would soon name a new head of the central bank. “In the meantime . . . any request to the Bank of England regarding the sale and transfer of the reserves of Venezuela should be ignored,” he said. The UK, along with other EU countries and the US, has been trying to cut off funding to Mr Maduro and his inner circle. Late last month, US secretary of state Mike Pompeo urged allies “to disconnect their financial systems from the Maduro regime and allow assets that belong to the Venezuelan people to go to the rightful governors of that state.” Venezuela once had around 200 tonnes of bullion in European banks but Mr Maduro’s predecessor, Hugo Chávez, ordered most of it repatriated. As the country’s economy and its all-important oil production has collapsed, its foreign reserves have dwindled from more than $40bn to $8.4bn.

alta will offer UK citizens full residency rights lasting 10 years even if Britain crashes out of the EU without an exit deal. Joseph Muscat, Malta’s prime minister, announced that British citizens living in the country before Brexit would be granted special 10-year residency permits

Malta’s overture is one of the first offers from an EU member state that will give UK citizens a special status after Brexit

as part of the country’s nodeal Brexit planning. It would allow UK citizens to work and study in Malta as if they were still EU nationals. “This new residence document will reflect the fact that UK nationals are no longer EU nationals, but a new ‘special’ category of EU nationals who have moved to Malta. It intends to protect the life choices made by these UK nationals when the UK was still a member of the EU”, said Mr Muscat. Malta’s overture is one of the first offers from an EU member state that will give UK citizens a special status after Brexit. Around 13,000 UK nationals live on the Mediterranean island, which is the EU’s smallest member state. UK nationals applying for the 10-year residency permit after the country’s planned exit date on 29 March would have to pay a residency fee and be treated like other non-EU nationals.

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SAINT LUCIA BUSINESSES WILL SOON USE “MOVEABLE ASSETS” TO SECURE LOANS By National Competitiveness and Productivity Council

he government of Saint Lucia is currently advancing an initiative that will allow businesses to use nontraditional forms of collateral to secure financing. With this new venture, businesses will be able to use their movable assets such as their inventory, equipment, accounts receivables, vehicles or anything that is of value to the business as security for a loan. In an effort to improve the ease of doing business in Saint Lucia, government is undertaking a number of interventions in the business environment as it relates to improving access to finance. The National Competitiveness and Productivity Council, a member of the Doing Business Task Force, is coordinating the legislative framework that will facilitate the use of movable properties to secure loan financing. Access to finance is but one of the eleven parameters used to determine the ease of doing business within a country. Fiona Hinkson, director of the National

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Fiona Hinkson, Director of The National Competitiveness and Productivity Unit, announced plans for the move but fell short in giving any timelines for implementation. As with many entrepreneurship-focused initiatives in Saint Lucia, we’ll just have to wait and see

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Competitiveness and Productivity Unit (NCPU), explains how this proposed legislation under the rubric “secure transactions in movable properties” will transform the business environment. “Right now the common form of collateral used is house and land. With this new venture, businesses will be able to use their moveable assets such as their inventory, accounts receivable, equipment, vehicles and anything that is valuable to the business in order to secure loan financing.” According to the statistics from International Finance Corporation, a member of the World Bank Group,

approximately 70 per cent of a firm’s wealth is concentrated in its moveable assets. Hinkson highlighted that Jamaica has already enacted similar legislation and she is hopeful that the secure transactions legislation would be finalized and approved before the end of 2019. “As you know, Saint Lucia was number one in the region in doing business, and with this new implementation in Jamaica, they have now moved to the number one position, which meant that they are now able to provide more financing to locals who want to be able to expand their business.”

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Saint Lucia is ranked 93rd out of 190 countries on last year’s famous Ease of Doing Business Index. The island is the second-highest ranked independent Caribbean nation after Jamaica (ranked 75th)

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