NIDS PUBLIC CONSULTATION DOCUMENT
1. BACKGROUND
2. INTRODUCTION
3. MISSION
4. INTEGRATED DEVELOPMENT
5. DEVELOPMENT OBJECTIVES
6. VISION
7. GEOGRAPHY
8. POLITICAL STATUS
9. POPULATION
10. THE ENVIRONMENT
11. THE ECONOMY
12. PHYSICAL INFRASTRUCTURE
13. SOCIAL DEVELOPMENT
14. GOVERNANCE AND PUBLIC ADMINISTRATION
1. BACKGROUND
The purpose of this document is to initiate public consultation on the key components of the integrated development strategy for the British Virgin Islands (BVI) for the period 1998 to 2004. This document does not attempt to provide details. Instead it outlines the key contexts or points of reference that will inform the critical components of the strategy. It seeks to evoke feedback and consensus from the public on the important concerns as well as the strategic approaches for dealing with those concerns. The document has benefited from the background work of the various sub-committees, the deliberations and guidance of the Project Management Team, the retreats attended by key personnel in the public and private sectors and information from the reviews of international agencies and numerous Government policy statements and documents.
The BVI is a small, externally dependent economy of approximately 19,000 people. Politically, it is an Overseas Dependent Territory of the United Kingdom. Over the past 2 decades, the future of the territory has been linked inextricably to the favourable market conditions for its 2 most important economic activities - tourism and international financial services. This has accounted for and impacted on most of the developments in the territory over that period.
As the millennium approaches however, the Government is conscious of the need to consolidate the gains of the past 2 decades and position the territory for the world of 2000 and beyond. It is committed to the approach of an integrated development strategy for the realisation of this goal. The BVI of the 21st century is envisioned as a society that will be dynamic, efficient, competitive and resilient. Its economy must grow at a rate that will generate higher incomes and employment for all BV islanders as well as enough revenue to finance the growing physical and social infrastructure needs.
The changing global economic order evidenced by the globalisation of production, the drive to liberalisation as well as the emergence of powerful economic and trade alliances make it imperative that the development agenda of the BVI strategically position the economy of the territory to be globally competitive. Development, however, also demands quality growth devoid of distributional inequalities. Increasingly, social welfare will require a society that is equitable, united, environmentally aware, socially mature embracing strong moral and ethical values with strong governance and effective systems of administration, law, order and justice.
2. INTRODUCTION
While there has been no formal planning effort to date, the development of the territory has not been without plans. One clear articulation of the development goal of the territory was presented in the 1991 Budget Speech of the then Chief Minister. In that speech he outlined the ultimate goal of the Government of the BVI:
“…to improve the quality of life of all persons living in their islands and at attaining a well rounded economy…”
In pursuit of this goal he stressed that emphasis will be placed on the expansion of the services sector as the main economic activity, and the creation of a competitive environment in which the private sector will emerge as an engine of growth. These were to be complemented by strategies to introduce state-of-the-art communication technology and preserve the environment.
The pursuit of that goal, then and since, has spawned a wide range of policies and strategies - economic, environmental, social and spatial. These are contained in subsequent Budget Speeches, policy position papers, official statements and other official documents. They included policies and strategies in such areas as tourism, financial services, education, health, the environment, physical development, habitat and settlements, natural resources, infrastructure, human resource development, labour and immigration. All have contributed to the spectacular progress of the territory over the past decade.
Unfortunately and unintentionally, many of these measures have been conflicting, with the result of a strategy in one area having an undesirable or adverse impact in another area. This is largely a consequence of the “insular” and narrow approach to policy development in which the necessary trade-offs are not made at the formulation stage. What has been lacking therefore is an integrated approach to development in the British Virgin Islands (BVI).
3. MISSION
Clearly therefore, a critical Mission of the Government of the BVI (GBVI) is to mobilise and deliver resources to ensure the health, prosperity, productivity, cohesiveness and resilience of the people of the BVI in a responsible and integrated manner.
4. INTEGRATED DEVELOPMENT
An integrated development strategy is an extension and deepening of the more common sustainable development strategy. It explicitly takes into account the 4 major facets of development - economic, environmental, social and spatial - in a simultaneous rather than sequential manner. In addition it is all inclusive - taking into account the 4 major social partners - government, business, labour and NGO’s - as well as the population, at all levels. Integrated development is the major development challenge facing the BVI in the medium term as the territory strives to establish the basis for broad-based integrated and sustainable development. A major output of this approach to the development of the territory is a National Integrated Development Plan (NIDP).
5. DEVELOPMENT OBJECTIVES
The major objectives of the Plan are:
- to reduce vulnerability
- to improve infrastructure services
- to enhance human capital
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to improve social cohesion
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to ensure environmental sustainability
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to improve the governance of the society
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to preserve the cultural heritage
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to ensure that BV islanders have a greater stake in the society.
6. VISION
The concept of integrated development is based on a vision for the territory that:
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is inclusive of all the social (development) partners,
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is environmentally sustainable,
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is socially acceptable and responsible, and
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will contribute to an internationally competitive society.
That Vision must be accomplished within the context of a number of guiding principles. Among these is the realisation that the BVI must strive to be a nation of high performers - productive, competitive, skilled, adaptable, resilient and caring - in short a “quality nation”. To achieve this the citizens of the BVI must be healthy and well educated. They must live in a safe and socially stable environment established on the basis of equality of and equal access to opportunities, tolerance and mutual respect for ethnic and cultural diversity while maintaining the unique BVI cultural identity. It must be a community in which the vulnerable groups are treated in a humane and caring manner and the protection of the pristine quality of the physical environment is a collective responsibility.
In summary therefore, the Vision is to create a society that is globally competitive and socially cohesive and able to satisfy the basic needs of all the people by upholding the principles of equity, human rights and good governance, by managing in a sustained and integrated way the natural and human resources of the territory, by generating self-confidence among the people and by maintaining the unique cultural identity of the territory.
In fulfilment of its Mission and in pursuit of this Vision the Government has embarked upon the preparation of the NIDP that will chart the policy program of the territory for the next 5 years. The NIDP will build on existing policies and strategies as it attempts to satisfy the development objectives identified above.. It will continue to give serious attention to strategies for generating sustainable and rapid economic growth as well as for ensuring that the benefits of such growth are shared equitably. In addition, it will address the critical need to balance such growth with the protection of the environment and properly planned physical development.
The Plan will acknowledge the existing social problems and the emergence of new social problems associated with rapid economic expansion and population growth. Therefore it will contain strong human development and social components to address these issues.
The basis of the Plan will be the different contexts of life in the BVI, the major development objectives and the key concerns that emerge from both. The different contexts are presented hereunder.
7. GEOGRAPHY
The British Virgin Islands (BVI) is an archipelago that is comprised of approximately 60 islands, rocks and cays. It is located in the northeastern Caribbean Sea, 60 miles east of Puerto Rico at the eastern end of the Greater Antilles.
The territory has total area of 153 sq. km (59 sq. miles). There are 4 main islands on which the majority of the population resides:
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Tortola/Beef Island with a land area of 54 sq. km (21 sq. miles) and an estimated population of 15,869.
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Anegada with a land area of 38 sq. km (15 sq. miles) and an estimated population of 192.
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Virgin Gorda with a land area of 21 sq. km (8 sq. miles) an estimated population of 2,890.
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Jost Van Dyke with a land area of 10 sq. km (4 sq. miles) and an estimated population of 166.
The territorial sea of the BVI covers an area of 1,489 sq. km (575 sq. miles) and extends 5.6 km from the low water line along the coast. Together the land and sea areas are a mere 1,642 sq. km (634 sq. miles).
A marked physical characteristic of the topography of the territory is the presence of a large number of distinct valleys. This relative scarcity of flat land, together with accessibility to the road network and marine areas, and the development of hotel and marina activities on the coastal areas have influenced significantly the pattern of settlement and land use. Most of the recent development is along the coastal low lying areas. On the most developed and populated island of Tortola, undeveloped land accounts for approximately 73% of the acreage, with the majority of the development in the capital, Road Town and East End.
8. POLITICAL STATUS
The BVI is a British dependent territory that attained the ministerial system of internal self-government in 1967. The UK government, through an appointed Governor, retains responsibility for external affairs, defence, law and order and the public service.
The UK Foreign and Commonwealth Office is responsible for the good government of all Dependent Territories, such as the BVI, including their proper financial management. It also aims to improve the standards of government in these territories. The general policy of the UK on independence for Dependent Territories is to assess moves in this direction if and when it is the clearly and constitutionally expressed wish of the local people.
The Governor has reserved legislative powers and normally acts on the advice of the Executive Council (the quasi Cabinet). He also appoints as Chief Minister one of the elected members of the legislature.
9. POPULATION
The population of the BVI lies between 18,000 and 20,000. In 1997 it was estimated at 19,107. Since 1980 the population has been increasing at an annual average growth rate of about 4%, a relatively high growth rate. However, more than 65% of the population growth is attributable to migration. The current rate of growth is approximately 2.3% per annum. This suggests that the population will double by 2030.
The age distribution of the population continues to change largely on account of low crude birth and death rates that were recorded at 17.1 and 5.4 per thousand of population respectively in 1992. As a result, the proportion of the young and elderly has been experiencing small decreases relative to that of the segment which is swollen by migration.
Immigration is undoubtedly the single most important population factor. Of the population growth experienced between 1992 and 1996, immigration accounted for 55.2%. it was estimated that in 1996, 50.3% of the population was immigrants (defined as neither belongers nor citizens). The 1991 census revealed that:
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61.6% of the working labour force was immigrants;
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80% of all nuclear family households contained at least one immigrant;
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63.3% of all single households was headed by an immigrant;
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54.5% of all single households with children was headed by an immigrant
A key concern of the Plan will obviously be population and immigration policies that must reflect the reality of the situation and be consistent with the needs of integrated development and trade liberalisation.
10. THE ENVIRONMENT
Over the last few years, the concept of sustainable development has been gaining ground around the world. Governments increasingly recognised that environmental policies are an integral part of any viable long term strategy. The BVI, like other small island developing states, faces problems of conservation of its bio-diversity, freshwater resources, watershed area as well as coastal and marine resources. These issues are even more salient because tourism, a fundamental element of the country’s overall comparative advantage, depends largely on adequate management of its fragile ecosystem.
Given the limited land and sea areas, the marine and coastal environments of the BVI are strategic and together constitute a valuable resource. In particular, the tourism industry that contributes significantly to the economic well being of the territory is heavily dependent on the natural environment. Utilisation of the environment therefore is subject to competing and conflicting uses among existing interests as well as between short and long term goals.
Major environmental problems face the territory: among these are inadequate solid waste and sewage disposal facilities, degradation of watersheds, degradation of marine ecosystems and destruction of biodiversity. This is exacerbated by unplanned settlements and population pressure on the land and marine environments. Environment management is spread across 4 Government agencies in a manner that does not readily lend itself to effective co-ordination. In addition, neither of these agencies are endowed with the human, physical and financial resources nor the adequate legislative and regulatory frameworks to ensure adequate environmental management. The most critical environmental concerns therefore are the preservation and effective management of the environment.
As a consequence, it is imperative that Government integrates environment concerns in its development agenda. To this end the Government is committed to the preservation and enhancement of the environment and will undertake this through a course of action aimed at:
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identifying the carrying capacity of the natural resources if the territory,
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guiding the sustainable use of those resources,
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strengthening the legislative framework and institutional capacity for the implementation of effective programmes for:
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physical planning and development control
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marine environment conservation
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sewage and solid waste management
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preservation of the cultural heritage
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strengthening environmental education
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enacting relevant legislation arising from international conventions.
At the policy level this course of action will be directed through a National Environment Policy that will promote economic, social and cultural progress through environmentally sound and sustainable development. Given the importance of environmental management to the territory, the environmental management function will be suitably upgraded. All aspects of the function will be co-ordinated by a single agency appropriately staffed, funded and equipped, and provided with the necessary legal authority for the effective discharge of its responsibilities.
11. THE ECONOMY
The economy is the success story of the BVI over the past decade. This is highlighted by the significant and successful transformation of the economy from a primarily agricultural base to that of a more diversified services economy. The result of this transformation has been an almost quadrupling of the GDP (at market prices) between 1988 and 1997. The emergence of tourism and international financial services as the major engines of growth has led to the dominance of overall economic activity by these two industries. Together they account for more than two- third of GDP, wages and salaries, Central Government Revenue and international trade. So much so that today agriculture accounts for less than 5% of GDP and is an insignificant employer of labour.
Foreign private sector interests dominate these leading economic activities with the Government performing the important roles of facilitator, regulator, provider of physical and social infrastructure and developer of human resources. The local private sector plays a minor role in providing support services to these industries as well as in the provision of physical infrastructure.
The small size and narrow production base renders the BVI an open economy in which international trade id a dominant factor in all social and economic activity with a consequential impact on government revenue. The data however reveals a continuing imbalance in visible trade evidenced by an average deficit of approximately $100m over the last 5 years. This is compensated for by a healthy surplus on trade in services which was as high as $300m in 1996.
Sound economic management and favourable market conditions have facilitated the economic achievements. For the future however, the sustenance of this success will require sound economic management characterised by long term planning, prudent fiscal management, and the establishment of a climate conducive to investment and private sector activity. It is imperative that measures be put in place to maintain the integrity of the export services sectors, particularly international financial services, and to reduce the vulnerability of the economy by implementing a strategy of diversification based on the utilisation of local resources and establishing linkages with existing industries.
Special attention must therefore be placed on expanding the range of products and services now provided by the tourism and international services industries, stimulating agricultural production and establishing new industries that will form the basis of backward linkage within the economy.
12. PHYSICAL INFRASTRUCTURE
Adequate infrastructure helps to determine the pace of development. Conversely, the inadequate allocation of resources to infrastructure as well as inefficient management will inevitably stymie the development process. While there has been obvious improvement in the quantity and quality of physical infrastructure in the BVI over the past decade, a lot more still needs to be achieved. In all areas and to varying degrees, developments have not kept apace with the increasing demand by the larger population, international trends and requirements, increasing expectations of high quality and the requirement of adequate planning. Particular attention therefore needs to be placed on the provision of physical infrastructure that is consistent with an improved quality of life and that will contribute to a higher standard of living. Not only must it be adequate and of high quality, it must also be cost effective and capable of meeting the needs of integrated development.
The obvious areas of concern are:
Development of these areas has serious environmental and expenditure impacts. They are high cost in absolute terms and especially on a per capita basis for the BVI. As a consequence it is imperative that they must be carefully programmed and financed within a framework that reduces the burden on the Treasury either by proper pricing and cost recovery or by private sector participation, local and foreign. It must be recognised that it is only through this approach that the infrastructure needs of the BVI will be satisfied.
Furthermore, the capital investment must be matched by a qualitative improvement in service as well as management and proper maintenance of the facilities. Targets should be established to quantify and assess measurable improvements and service delivery should be customer-focused and people-oriented. Importantly the deficiencies in all areas
cannot be remedied at the same time and indeed within the current planning horizon. There must be a careful prioritisation of investments to deal with the most pressing infrastructure needs in terms of the contribution to the sustainability of the development effort.
13. SOCIAL DEVELOPMENT
Social development is one of the major cornerstones of integrated development in the BVI. It is critical for the development of human capital and the enhancement of the productivity and competitiveness of the territory. While the recent period of economic growth has resulted in significant improvements in education, health and general social well being of the population, there is growing concern over the ability of the relevant social services to cater efficiently for the needs of the larger population. Education and training and health are 2 of the more important elements that impact significantly on the human condition and the development of human capital (human resource development) in general. Equally important however are the provision of recreational facilities, the provision of welfare, adequate treatment of issues relating to the elderly, youth, disabled, family and gender, improved community relations and increased attention to social problems such as crime and violence, substance abuse, vagrancy and delinquency. In all these areas Government will build on the plans that are currently in place, adapting them where necessary to the changing needs of the population and to ensure that they meet the requirements if integrated development.
While the shortcomings in the income data do not allow for firm conclusions on the incidence of poverty, in the overview it must be admitted that poverty is not a priority concern in the BVI at this time. This is not to suggest that it should be ignored especially when the population profile is taken into consideration. Positive steps must be taken to ensure that the incidence of poverty does not increase.
As in the case of the provision of physical infrastructure, the provision of adequate physical infrastructure is costly and will have a significant impact of the size of the Public Sector Investment Program (PSIP). This remains one of the important and primary roles of government and, in many areas, the Government will explore the appropriate mix of public and private sector resources in the provision of these services to ensure adequate quantity and quality.
14. GOVERNANCE AND PUBLIC ADMINISTRATION
A fundamental requirement for the successful management of the territory and by extension, the success of the strategy of integrated development is a responsible, efficient and capable public service. This is important because of the critical role that the public service must play as pacesetter, facilitator and regulator in the formulation and implementation of strategies and programs that will facilitate the attainment of the objectives of the NIDP. This role requires strong leadership, integrity, continuous training and skill enhancement, creativity, innovativeness and flexibility.
The main focus of the public service therefore will be to ensure the good governance of the territory. This will be achieved through greater co-ordination among respective agencies (a necessary pre-condition for integrated development), the promotion of a culture of excellence characterised by the inculcation of core values such as integrity, accountability, discipline, respect, productivity and professionalism. These are virtually non-negotiable in the quest for good governance. It is important to recognise however that they must be accepted at all levels of the public service as an essential component of its guiding principles. A public service fashioned along these lines will ensure not only good governance and efficient management of the territory but also high performance and the delivery of quality service consistent with the demands of the global economy.
The attainment of these objectives require a comprehensive, carefully planned and phased transformation of the public sector that will involve, inter alia:
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institutional strengthening through training and capacity building
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rationalisation of agencies
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institutionalisation of co-ordinating mechanisms
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revision of levels of remuneration
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establishment of and adherence to guidelines for accountability
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widespread use of information technology
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greater client-oriented focus and orientation.
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