Coronavirus a greatest threat to Caribbean economy, how to tackle?

The Coronavirus recession could become a depression for almost all Caribbean counties as the COVID-19 pandemic worsens the situation. The situation is hard to tackle as on one side it is shredding public and on another economy is witnessing recession-like state.

Governments all across the Caribbean are on the toes to save their people and economy from COVID-19 pandemic with major relief funds to people on payrolls or the ones who will be suffering major losses including taxi drivers, tour operators, small buses, restaurants, hotels and all other businesses incorporated with tourism as it is the primary source of income for almost all Caribbean countries.

In this economic tsunami, some of the Prime Ministers have taken wise steps safeguarding their people and economy. Still, some are confused at whether they should strengthen the medical facility or provide assistance to the economy, due to limited resources.

A simple example of this is Prime Minister of Grenada Dr Keith Mitchell, who recently announced more than $42 million worth assistance to overcome economic crises, apart from electricity and tax reduction plans:

1. “We work tirelessly to avoid staff layoffs and loss of livelihood in the tourism sector by providing $20 million payroll support to hoteliers, restaurants, bars, small travel agents and income support to public buses, taxi drivers tourists vendors and others.”
2. Adjust the small hoteliers’ facility at Grenada Development Bank with $7 million to this facility.
3. Pair with NIS (National Insurance Scheme) to support unemployment benefits worth $10 million.
4. Suspend the 2% increase in NIS payments for the period.
5. Encourage the trade union movement to work with the business community.
6. Expand the public sector investment programmes to boost employment at the community level.
7. Suspend the monthly advance payment on corporate income tax.
8. Suspend the instalment payments on the annual stamp tax.
9. The government commits to ensuring that the cost of electricity will be reduced by 30% from three months, including March, April and May.
10. Place on the price control list certain cleaning items.
11. Expand the small business soft lending facility with more than $5 million assistance.
12. Increment in farm labour support to immediately boost agriculture production islandwide.

On the contrary, Prime Minister of St Kitts and Nevis has so far disappointed the people of the nation as he seems to be confused for the selection of scheme to revive the local economy.

So far, St Kitts and Nevis has no COVID-19 positive case in the country. Still, due to downfall in the tourism industry – which is the breadwinner of every citizen – the country is passing through the major economic crisis. Instead of assisting people, St Kitts and Nevis government decided to provide $16 million to upgrade the health care system.

However, after a video surface internet related to this WIC News correspondent compared the situation of viral video. It was revealed that the video displayed partial truth. Moreover, 85 health professionals from Taiwan and Cuba reached St Kitts and Nevis for better treatment of COVID-19, yet the facts given in the video are correct.

1. $16 million injected to the health sector for COVID-19
2. 85 professionals from Taiwan and Cuba
3. No entry for COVID-19 affected nations

While talking to WIC News, former civil servant Nigel Faron compared the situation with Dr Denzil Douglas’ government rule under Labour Party. “If in case this was the situation under the labour administration. Clearly, Dr Douglas could have done much more better than the current Prime Minister. Dr Douglas is season leader as he has already tackled major crisis during hurricane Lany, closure of sugar industry and international recession during past decades of leadership,” he added.

He also mentioned that Dr Douglas through his personal social media handle has shared his suggested plans to lift the economy of St Kitts and Nevis, “There can be chances that Dr Keith Mitchell took a piece of advice or reference from Dr Douglas as he is one with a knack of crisis management.”

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