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The paper provides a brief review of economic developments and policies in the Netherlands Antilles. The government’s current adjustment initiative provides a much needed opportunity for restoring growth prospects for the Netherlands Antilles. The paper has looked into issues pertaining to the development and prospects of the Antillean offshore sector. The picture emerging is one of a sector that, after initial spectacular growth, has encountered a number of obstacles. Nevertheless, it has been able to continue to register positive, albeit more moderate, growth.
Antilles (Netherlands) Business and Investment Opportunities Yearbook Volume 1 Strategic Information and Opportunities
Macroeconomics in Small Island States brings to the reader similar subjects as in a traditional economics reader, but now in the context of small islands. To insure a level of societal well-being an island state develops an economic infrastructure that can be useful to attract foreign investors, and makes efforts to obtain continuous financing for activities to boost social and economic progress as well as international competitiveness. The colonial domination of the past and the long history of foreign transnationals as major economic actors, influence economic thinking, especially with respect to the focus on what should constitute basic industries and the transition to global competiveness. Additionally, changes in the domestic and international socio- economic environment and natural disasters can impact the ability of the island state to fulfill its debt service obligations negatively. These aspects put major pressure on the management of the internal economy, while investments in foreign capital goods apparently tend to have lower growth effects than would generally be expected from the domestic marginal propensity to consume. The publication gives attention to these issues and more and makes reference throughout to contributions to economic thinking by scholars in the Caribbean region.
This Selected Issues paper analyzes sustaining potential growth in Aruba. As in the other Caribbean countries, there are growing concerns in Aruba about the slowdown in economic growth over the past two decades and the consequent tepid outlook for potential growth. Tackling such concerns requires identifying the underlying factors. This paper presents an overview of Aruba’s economic growth performance since 1990, analyzes factors behind the slowdown, and discusses how potential growth can be sustained. It suggests that Aruba should aim to finance its renewable energy and other future growth initiatives sustainably.
This Selected Issues paper for the Kingdom of the Netherlands reports the Antillean economy lacks natural resources and is open and undiversified, relying mainly on exports of services such as tourism, international financial services, shipping, and oil refining. Exports and domestic consumer spending, both private and public, drove the economic recovery. Economic growth in the United States and the appreciation of the euro against the national currency contributed to the strong performance in the tourism sector.