Transcript Macro Economic Policy Framework and Sector Policies for

*
John Calixte
Department of Planning and National Development,
Ministry Of Finance,
Government of Saint Lucia
February 2015
*
* Introduction
* Macroeconomic Challenges
* National Planning
Framework
* Sector Polices for a green Economy
* Saint Lucia’s efforts at Green Economy
*
* The concept of green economy has become a centre of
debate in recent years.
* The concept carries a promise of a new economic
growth paradigm that is friendly to the earths
ecosystem and can contribute to poverty alleviation
* It provides a response to the multiple crises the world
has been facing recent years-food, climate and
economic crises.
* The transition to a green economy will entail moving
away from the system that allowed and at time
generated these crises to a system that proactively
addresses and prevents them.
*
No unique definition for the Green Economy
UNEP definition-one that results in improved human well being
and social equality, while significantly reducing environmental
risks and ecological scarcities
The term underscores the economic dimensions of
sustainability
It responds to a growing recognition that achieving
sustainability rests on getting the economy right
*
o what are the macro economic challenges that would be
considered when incoporating green economy principles into a
macroeconmomic policy frame work
*
Decling growth rates over the last 20 years
Average growth rate in the region -2.3%
High degree of openness to the global economy
International trade with goods and services
International financing, including foreign
and sovergn debt
Worsening Trade balances
Poor trade performances
Weakening international competitiveness
Declining foreign direct invest
direct investment
Macroeconomic
Performance
6.7
3.2
1.8
1980-89
1990-99
2000-09
2010-13
-0.6
*
oA high dependence on strategic imports such as energy, food,
industrial supplies and capital goods for agriculture and construction
sectors
oMakes it difficult to reduce imports in the short to medium term
oLong term macroeconomic vulnerability related to sectoral
productivity and wider economic growth
oVulnerability to natural disasters and climate variability
oDespite significant investment in the education sectors there are
issues of access, inclusiveness, quality and relevance of the sector
oWeaknesses in the labour market reflects long term inequalities in
the education system that fail to prepare students for the demands of
a modern economy
oHigh Unemployment
oLimited fiscal space caused by high debt to GDP ratios
*The Need for Greening the Economy
* With the current economic situation of low growth and, as a SIDS –
justifies to a great extent our unstained economic growth path
ways, with impacts on environment, resource efficiency, climate
change, risk and vulnerability: thus provide few opportunities of
greening few sectors
Moving towards GE can;
increase adaptive capacity and resilience in the face of mounting
global challenges such as climate change, reduce unemployment
and foster unstainable growth.
How? –mainstreaming green growth in National Planning
Framework
*
National vision
National Development Plan
Medium Term Development
Sector plans
Public Sector Investment Programme
National Budget
Agency Budget
*
*ENERGY
*Achieve energy security and independence by reducing
reliance on fossil fuels and increasing the use of
renewable energy technologies
*opportunities- solar energy tapping, biogas, geo-
thermal exploration using investment partners, wind
mills and even micro –hydro power, energy saving
through the use of LED lights, green public buildings
etc,
*Use of fiscal incentives to promote transition to
renewable energy generation
*
Agriculture
oDiversify the agriculture sector away from
banana production to increase food security
through more efficient and less resource
intensive production of non traditional crop
oOpportunities-
Agriculture diversification-water
harvesting, terrace farming, Niche organic
products, Composting and integrated crop
management, expansion of cottage industries,
mature tourism product to foster linkages,
ecommerce market, increase in value added
agriculture products for exports and tourism.
*
*Transport
*Achieving energy efficiency in the transportation sector
and providing incentives for the use of hybrid vehcles
* opportunities- use of energy efficient vehicles, remove
congestion, better infrastructure, alternate water taxi
for travel, inter island connectivity improvement to
reduce transport costs, improve public transport through
public private partnership, increase in airlift through
negotiations, improve airport facilities, improve port
facilities
*
o Tourism-
oProviding incentives for investment and efficiency in the
Tourism Industry
oHighly
energy use and emission of greenhouse gases (
70% in St Lucia) Energy audits would be required and
based on that energy efficiency measures can be taken,
tourism product diversification and preference for
properly packed local products will boost social
inclusion of the society in agriculture, creative industry
and culture
*
* MANUFACTURING* To reduce trade barriers
and to develop small and medium size
enterprise by introducing new green technologies through
appropriate incentive regime.
* Mobilisation
of entrepreneurs interested in green investment
business opportunities
* Opportunity-Training
and re-skilling of workers, introduction of
more efficient models of production, access to credit
*Other areas
*
Reduce unemployment and improve opportunities for citizens
through economic diversification including green job creation,
green industry growth, training, and construction of green
infrastructure ( mobilization of entrepreneurs and enterprises,
increase awareness, and networking to increase capacity
building and institutional strengthening, create infrastructure
and bring in green technologies)
Infrastructure and green Technologies
Blue Economy
Fiscal Incentives
*
* Saint
Lucia has undertaken foundational work in Integrated Development Planning
(IDP), and identified a number of principles consistent with a Green Economy. A
National Development Planning process is currently in progress, with a policy
framework consisting sector-specific policies that identify cross-cutting issues, and
containing unifying points.
* Several bodies have been created, and are expected to strengthen the institutional
framework for Green Economy pursuits. These include:
National Environmental Commission (NEC);
National Climate Change Committee (NCCC);
Coastal Zone Management Advisory Committee (CZMAC); and
National Council for Science and Technology for Development (NCSTD)
Energy Policy Advisory Committee (EPAC)
Green Economy Steering Commitee
* There
are also initiatives geared towards natural resource management and
conservation --- rainwater harvesting, solar energy, collection and exchange of
spatial data, geothermal energy .
*
Some challenges currently faced include problems
associated with economies of scale, the level of political
will, under-resourced agencies, and overall ownership of
the relevant issues.
Nevertheless, the GOSL is committed to advancing
national Green Economy plans (including investing in key
economic sectors and safeguarding natural resources to
improve livelihoods).
*