The Grenada newsletter

Material Information

The Grenada newsletter
Place of Publication:
St. George's, Grenada, West Indies
A. & C. Hughes
Publication Date:
Twenty no. a year
completely irregular
Physical Description:
v. : ill. ; 36 cm.


Subjects / Keywords:
Periodicals -- Grenada ( lcsh )
Politics and government -- Periodicals -- Grenada ( lcsh )
Economic conditions -- Periodicals -- Grenada ( lcsh )
Social conditions -- Periodicals -- Grenada ( lcsh )
newspaper ( sobekcm )
newspaper ( marcgt )
Spatial Coverage:


Dates or Sequential Designation:
Began in 1973.
General Note:
Description based on surrogate of: Vol. 11, no. 1 (Jan. 22, 1983); title from caption.

Record Information

Source Institution:
A. & C. Hughes
Holding Location:
A. & C. Hughes
Rights Management:
Copyright A. & C. Hughes. Permission granted to University of Florida to digitize and display this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
24157414 ( OCLC )
sn 91021217 ( LCCN )
F2056.A2 G74 ( lcc )


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Full Text

The G"P e4a
o, W S

Ette-rinl finWna iatu tions reuse to
dis&r a stigEsr -Alr rv n.iIcss thisy ir assured
oJf coUisterpr 't fniriWng

_- :ls EBrnhv, iep said in a national
| Vtopijrcaston July 22nd th:f kGov-
emrnment had decided to pmm."'-e.
I-., -of its .*-sets in order to establish a
m-.u- em : unr (CDF)top r'. P-e
': fuldir': ,r ec,..~rnmc! and social
K ~ t 'un :1 p 1 :jctS

I' "It is pce1y in !us
. conil*. .. Tat.p -n.:.ati _-.n
of the NatiornAl Com-
^^m'?Ir Bank (NCB)..
has to be seen, he said

^ ^'" The decision had been
StaLn to sell 90-, of
-... .. .. 'e n 'l s i:tre 't inl
SBank, he said.
'-.- Fifty-ne pcent of
the shares will be
"'' so."'.d to Pe ubliic
Fr.I -, :,n _erei:- al
b.:jL in T ini,'l' &
T.',-., ,n, : will bet :.erd to G, -
r .i;:- e.t h,:,me a J, abrn! .".

Mr n-h:it.e said the sale to Republic
E.'c-'. will yield appmoximately EC $6.3
million. A source close to NCB said
Pe.:,li': Bankr is btuing at EC$16.50 per
sh ae and, in his broadcast, the Prime
Minister i the 292,500 shares to be
off ied to G.rnadians vill be sold at
EC$15.00 each.
It is er;ernti.. the CDF be established, Mr
S,.i tvaite iaid. because external financial
Plmase ee PRIVITmsATIO Pame 2

Brathwaite Says Privitisation
Necessary .................... ............. I
epubl Bank Buys NCB.------...-- 2
Mitchell Condens Sale
Of NCB........................... ...... 4
NTP AAvised To Organise.......... 5
CDB Reports On Grenada ......... 7
G.uggish Economic Activity
Forecast -..........-.-............... --9
5OC Donates Es erimental
S'aiaton & Seed Centre..........11
New Shorts........................... 13

rV,,I.m 23 Saturday 1st A 1992 Number 13

a AlYC




13,D AlT iP

The Grenada Nevsletter Saturday 1st August 1992 Page 2

BR DUNBAR McINTYRE buy 51% of NCB shares at EC$16.50 each,
I Managing Director of iralisinr the sum of EC $6.3 million.
Republic bink of Trinidad Must Be Expected
& Tob,:igo, sqid in .- __ The move towards a c~mmori
I renada on lyv 23rd that l9s ,-: ::.-::-:. :. currerwy in CARICOM is in-
iBank's p,.-.hase of maj:nty : dication of harmonisation of
as i Giada Govem- /..::: .. :. te. Financial Services
ment -ned Natia ..:. .: ndustrg e said, and
Commrcrial Bank (NCB) .;. hle such a currency
i' in keepi-ing .ith Carib- :.. mut be expected in the
bea-m Community (CARI- .... dium to longer term
COM) i-t.iorn. ;: rather thAan in the near
/ future, it is a moTve in the
Further than that," be .'. right direction.
said, i"v at seems to be:::::::::::::::.:::
coming ahead is a harmon- -:: :. T.I Mr.anagink Director said he,
isation of the Finanial Services '- and the team vbich care vith him

Signed The Areement
These c -rdmen-: by Mr Mc Intyre eie made
at. a C:Hri rny m 1 which he and Prime Min-
ister I Lchoi E IiAlew;ite s-i Jd the
A 'ivene-It munir .'ihich R: publicc Bank :,ill

,r,- .Trinidad for the siirs.:, saw their
pi- nce in Girnada ard Rep,.i""c Bank's
pl:icip-.tio n m the brmking system of the
'-r ..:sai3on of East Caiibbean Shts:
(OEC S), as a pli.ude to i _tr,.Ijrti,.:n of the
r:. iut.:n E-' Please &e e HCB Pae 3


irsti!.ti,:,., l fie to .ih.burse a single dollar
1~: 'i they ave assured of uimter.:,;Tc fiinai->

For e::rni;ple, he said, tLis year the Carib-
be.-, Development Bank (C DB) h,-s age .
to p-vid the t Gnad' Development B int
with ..line of nitj. v.:ti. h millions of dollars
Will Establish The Credit
Tai" m. ney is for small hotels,
for rn tfa,_.cting, f, aglo-iJdus!,y a- A
,,rici iii F Mr rE:.hvw.te s :id, but Govern-
leiint. must pr:.,vide some EC$1.5 million
before CDB vill establish the credit

Sea-' '-fince valls on the western coast ard
p.urEai to some bridges al.o hv. to be
icrC d,, he s-dd, and the same c..'n'Jiti,:rIs

"'The reality is that the Public Investment
Programme cannot be sustained entirely
by resources generated in Grenada", Mr
Br-thbvaite said, 'and because we have to
get economic and technical co-operation
from external sources, ye must demon-
st~r~t commitment by shouldering our
part of the burden.
Has Not Ejoyed
The Prime Miris.ter said. most .::.. .Utries
i.'. vide counterpart frii.r.i budgetary/
sur'pus, but Grenada has not n.:.yed a sur-
pl-i for several yeans.

i'.. ng the last 10 e: ; he said. G,.r-a. :
spent EC $167 million mrre than vas
.1"ec.ted in revenue and, despite some
EC $72 trillion received in tu.-.Idetary
Please e- PPTVfTflSAT!O Paws 3

- --~- --- -- -- -~ -' - -~ ~-

- --- -------- -- ---

The Grenada Newsletter Saturday 1st August 1992 Page 3
HCB From Page 2


Grenada-born Mr Dunbar Mc Intyre, who is
the brc'ther of Sir Alister McIntyre, Vice-
Chancellor of the University of the West
Indies, said t,-p cornmittrmnt of Republic
Bank to Grenada is to e::pand and upgrade
the services NCB provides to Glenadians.
He is confident., he said, that. the expertise
of Republic, Bantrk: will add '"'nsidemble
value to operations of NCB.
Largest In The Caribbean
His Bank, Mr McIntyre said, in terms of
assets, is the largest in the Caribbean and
is the most profitable and diversified. In
Trinidad & Tobago, he said, Republic
Bank's holly ovned subsidiary, Re-
public Finance & Merchant Bank, is the
leading Merchant Bank.
support, the island still left with a
deficit of EC $95 million.

Since Grenada does not have -any suplus
to provide co:uinttpart funding for add-
itional m,.'strnent pjjet: s, MrBrath.-.waite
said, it must privatize some public entities
to raise funds.
Under No C circumstances
Those entities chosen for privatization
are NCB, the Grenada Electricity Com-
pany and the Central Garage, he said,
arnd he stressed that, under no cir-
cumstances vill funds raised be used for
paying salaries or recurrent expenses

The Plime Minister said some people vill
attack Govennirrent's privatization moves
as the selling of firmlyy silver', but
countries which, at one time, favor'ume state
ownier-l'iip have changed their vieews.

Thif PF'ivape Sector has greater knowledge
and cori-peterye to run businesses, he said,
and it is Government's view that better
na-viogennt will result in greater profit-
ability vhich will increase the amount
co'ining finally to Government's coffers.

-- -.1 --

"Over the last four or five years", he said,
"ve have raised in excess of two billion TT
dollars by vay of bond flotations for both
Governnment. and the corporate sector."

The Managing Director said Republic
Bank's investment in NCB is the first his
bank has made in the OECS, but it is not
the first overseas investment made by Re-
public Bank. Republic :.:w~v. 49% of a
joint venture c':'rfiniirng hoiisF in Caracas,
he said, and is the sole oawrner of an Off-
shore Bank in the Cay ian Islands.
To Be Privatised
Speaking on the occasion of the signing
ceremony, Prime Minister Brathwaitesaid
NCB is the first of three Government
owned institutions to be privatised. The
other two are the Grenada Electricity
Company (GRENLEC) and the Central
Garage, all funds raised from these
operations to be put in the Capital Devel-
opment Fund and used for counterpart

The Central Garage is to be privatised
completely, he said, vwile some 20'7 to Si'? '
of GRENLEC vill be L.old
Please See NCB Page 4

The Crenad

Founded 17th August 1973
461st Issue
Sul-scription Rates
Payable In Advance
Postage Paid By Second Class Airmail
(Inland Post InGrenada)
10Ilases $115.00 $ 4300

20 ImsWe $207.09 77-00

l40lmes $390.00 $14600
Albut 20 Issues Publishled Annually

c -- '.5

'The Grenada Newsletter Saturday 1st August 1992 Page 4

"lWe cnutnt taLk about buitinJ &rMnsda wjgtin
and britiu hope to our peopLp- and, at the
same time, we CIrT seli4ui ever- bit of our
nution A assets"

Poli::al- Leaier of the Nev
Na;in:-. F:aMy (NNP) said. at a
press confetEiAce on July 20th
that. his part;. believes in privatint,,fi:n-, of
Government o'v ied assets, especially vh.n,
they show thems elves mjnpr-fi'abhi.

However, he said, NNP has strong
objection to the recent sale of j"
majority shares in the National .
Commercial Bank (NCB) to Re- i
public Bank ofTrimdad & Tobago .

Repubi, Ba'nk is a non-G-.:nad,.:m, instit-
ution, he said, and 77it i such an insiititionr
h,:ijrin.g may-ri? shi'es in INB, it rneta :(
an autc.fmati, drmn on Grenada's ftei,:
a:'.Ange ea sl-n..s
An Opportunity To Acquire
Tf ,ICB v.-v to be sold, thle Gie-
inidj.. pe..:,'ple. 'i.uld h, been
'i, e n an *-Opplit ti .y to acquire the
m-n jrity shaehldin in the I7.rd:
the Political Leader said, and e.t'
is an important Yermee of financing
viuch should have been tapped.

If a GovAmiment rctitu!i .n is ell ..i '"We have a ti tindous rem.:ufre base
rriaraied and making 11m.rney it may outside fl ", hlie :aid "Gmnadiri
still be privatfied if it is th.udght --.-. ,..broad have, by and 1-:me, done well for
this "vill Mai:e it more p: fii.le, j i. her-evtes and they have a lot of mrney
:he -aid, but one cnvi'i.:m must. '"-. t hey wish to in th.i:: country if
be ttfiC.-te DR KETH MITCHELL 2i'.en the oppo .irity."i
As Much As Possible

NCB From Page 3
ED.: ', ar.e viaing pli e with perrr
inte'gnteij in the pruch:ise of the Central
G.a.rg, the Prime Mini.ter said, and with
1he Connirnvwealth De vel,:-pmient Corp-
o.ratin (CDC) whi-h is intees.fed in buy-
ing into GRENLEC.

Mr Brathvait te .Ud :.other organisati.:,t:
intpisted in GRENLEC are the Filuii2.h
film of IVO and a United States finnm ith
whichh he has nriot vet contact.

The Political Leader qu..-ed Prime finistaer
N' icli.: ,- Er ,,thaite as stating that one of
the ,ns IJC5 as sold to Pepiblir;:
is thA:t NCB vill be efit Republc
Bank has .,-:e. to it2em.ti:n.-J fin:im:ial

Far Moie Credibility
Dr Mitchell said he c ..:,u1 not :,:cept t1i-.;
are..,*n.7- as, in his opi.n, fthe G 0-ernrent
of Oni-n.ada 'c.vd' have far rneri- credibility
.hi, Republic E:B~rd m ac ,:essing inter-
n:.ati'.,nal institutions to get loans for NCB.

He vas rit.ic-:i also of the Fhime MiNiister's
statement tiat the sale of NCB, the Grenada
Electniiity Conminy (GRENLEC) ard the

Pleae See MITCHELL Page 5

_ _..._.._ _ _

"The first priority", Dr Mitchell said, "is
to ensure that the institution remains in
Grenadian national bands as much as


The Grenada Newsletter Saturday 1st August 1992 Page 5

Englislh-s peaking Caribbean are characterized
by the apparent ineviAtability of the e ner-
gence eof the Political Messiah.
This opinion was e:,pre.sed in Grn rada on July 19th by
Mr Brian Alleyne, President of the EastCaribbean Institute
for De mra.ncy (EC ID) and Minis ter in the Dominica G,.-
ernrnent responsible for Foreign Affairs, Regional Affairs,
and Windward Islands Unity.

Mr Alleyne, vwhio was the fe.atLu'e speaker at the Annual
Convention of the New Nation.-a Party (NNP) of Political
Le-ader Dr Keith Mitchell, said the trouble
is that irniebers of political parties look to Taking no r
the Me:.ssiah as their "deliverer" and "king". members o
.Offer Blind Loyal t develop the
"Looking to him for everything, we take diiduality.
no responsibility for anything, he said. all the thin]
'"We offer blind loyalty, not to ideas and like footsol
principles, but to a person, the Leader." cornme fitnm

i ||

i ".. . . . . .e .
SLAr di. ltowe to

l|p jijiplity kt ||jjl |l|s| ai
1 -on- hPhi

Pteas? '*ri^ f T"^ 7 Page -6

MITCHELL From Page 4
Central Garage is essential as Government
needs rmney for counterpart funding
relative to projects finance dby inteTaT.:U:.rnd

Dr Mitchell said the Prime Minister seems
to be under the mistake n idea that c:,,runter-
nart funding necessarily involves the pro-
v'i.on of cash Counterpart funding hee
said, has been in the past and can still be in
the foim of the value of land, buildij g
equipment, and technical input.

"Selling national assets just as an avenue
for money for capital projects is certainly
not the visest thing, he said.
Referred To The Sale
The Political Leader Prferred to the sale, by
a previous Govnurient, of rnmjority s va's
in Grenmda Telecoi rrnunicatioir Limnited
(GRENTEL) and s-aid Grenada is suffering
nw by the loss of larg- profit that company

is rml:in

He referred also to the pri.''Csed sale by
Government of GREN LEC and said, if this
happens, it will frwthlr complicate -he
opportunityity for developrn-ental growth in
At The Sa~n Time

"We ,.innoot talk about building Grenada
again and bringing hope to our people," he
said, "and, at the s.are r tin-, :ve are selling
every bit of our natioi.a u:ses."

In the flti.t there ill t-.. -o, '-.;o:es on
which to build, he said, obscure itis "crazy
to t6hinl: that foreign uin utions which buy
Grenada's national a-set .il- leave their
m..r-y in Grenada to build the island.
If tlI National Demoir.. C onress (TJDC)
GoveTTrnent. of G l ,d! is allowed to
continue to sell off t-i, ...1-. s assets, he
saij, he does not kn:'n: wivi an:v Govern-
Pleame See YITiHELL Pave 6

- -M:717



The Grenada Newsltter Saturday 1st August 1992 Page 6
ALLEYNE From Page 5

Political parties in the Caribbean tend to be
built on personalities rather than on ideas,
he said, and relying so o:,mpletel:y on the
Leader, the i. has been a failure to build the
Nothing Left To Sustain
As a result, Mr Alleyne said, because the
Leader i: treated as a king, when he die- or
drops out, there is n,.in-n left to a.stai- the
movement and it collap-e z.

"If Ve ir, not ,:.nly to pieer.e but to
deepen and e::p:-d. our plulishi,:- dem-
:.'cricy"., he said, ".e cann:'t perpeti.ute the

The future belong to those who question
the present, the President said., party
members must hrve id.eas of their ovn, :,r~ m
of 7.hich r;.ay diiffe: f:.rn th..Pe of the
Leader, and they rnmut not be afraid to
express then
Does Not Go Very Far
However, he said, indi'.'idal dissent doe:
not go very far to secur-ui democ-,.i'y, and
he submrnited 11'i, if pr.Uailistic:. jdemi'clacy
is to be secured, deepened .i j e;ypade,,
or.t-isati,,r aind the conimitment which
*:,g.n-i,:ti,:~eq requiires, are essential.

MITCHELL From Page 5
ment in the fibtuje will be able to do to
"taIeh thhecoyuntr.y out of the problems the
NDC is now

Dr Mitchell zaid the srn.:u.ne3s of the
issue takes it far beyond pa.-ti.ian politics.
It is far moxe complex h.n hat, he id
and he called on ".all patriotic Grenadi ans"
all organizations, all trade '.ri.l4o1, the
Thurches, .:mn all polliic.dal organisati..-ns
to landd up and be counted."

To meet the demands of tody, Mr Alleyne
.aid, a political party must be a dynamic,
vital orgunis-aion springing from the I
rooTs, in touch with the people, sensitive and
mre-pronsiv. to the needs of the people and
in which the people are truly involved.

The President said the Caribbean ex-
perience is that vomen andl youth are the
most powerful influences in any electoral
Take Them Seriously.
"We nuti.t inv':"-' them and en: rageae them|
to p.1tiicipate filly D,:, not limit the I of the involvement of
our women and our youth.
Ta e them into the highest
councils and
Ske them
We igno le them at our peril."

Mr Alleyne ad-iL'e t-he
"invest in success" and g,
'..:o:--: for this acti'rn They
"organise, 'org.inise, organise"

^*ivepnton to
**e three key
are, he sai-d,

In his aldres- to the C:.wnti:n, Political I
Leader Dr Keith Mitchell, m fen ed to rE:ent
opinionpolls ,hichfavou.ed himrias the next
Prime Mfirdter but W'1hich also .h.:,ed that.
over 4.5% of the electorate are still u decide
as to vhich party they will vote for.

Dr Mitchell said his party got two seats donly
in the last Gener-l FE!ecti.:ns au-j NNP must,
he.ed the messagee" fro ,m the ele-t.:-.nt if
the Party is not to lose the next election |i
People Get Preoccupied
One of the problems, e said, is that a lot
of people get preoccupied vith being a
candidate for elections.

"Everybody vants to be a candidate," be
said, "but nobody vants to be a worker."

The~i~ ci'jn-~es
&iid when

a time, the Political Leader
lack of performance ani
PisaeP i e A LLIWYNE Pagfe 7


The GrenadaNewsletter Saturday !st August iX2 Page 7

4Cr M MyPO L


1 or, of the Barb:idr, b.,:-ed
Caibbea:n Depvlopr:mern'. Bank
(CDB) hve eprensed tjhe
opinion thar Grernad i's growth pr:,spe:t~ for
1992 hinge on the ability of Prnime --ir-ster
Nichol;r Brnthvaite's GoveILrrrint to
contain the fisc:; d.eficit.

The opinion is in the now pub-
lihed 1991 CDB Anu.:l Pep-lrt ldch says
also thenr must be efforts to build liTi.;.dity
within the banking Sy-stem to facilitatef
private '-ect-or invetment r

ALLEYNE From Page 6
comm,:,ritmnent.;s clearly to the 'F.rty
that an irilivi',uil cannot go f':,w:71 as a
candida1 in the rieneral elections.

Tut instead of c:some of us accepting that,
ve playing games", he said. "7h*.--e~
vants to play m..7 .nes nay ly :l.-me but I;
am not playing gm-es."

He has been showed, he said that, for the
last several months, after the Party has
indicated to "some of us" vho claim to
be strong NNP members, that they may
not be candidates, these persons were
"outside there attacking the Po!itical
Give Grenadiams A Chance
"As lon-c-, as I am politic- Le?--r Dr
Mit'hell said, "the NNP vill nrve f.w'..arlJ
to make 1eio,.s changes at. the co rititueiinc.y
level to give Gren-~a1iars a chalii,'e to have
the kind of team to build Grenada."

The Conrienti,'-n vas .atPrinded by 307
delegatp s from the 15 cr'st.itueni'?, the
National Executive and the Women and
Youth At iliaies, :mnd. there a tot-al
atte2ranre of somen 4fliTSlfl

'Efforts to.
:t1rngthen and ,i I |'f01
maintain h
agriculture (ad)
diversification drive O
?*v alsek.essential", the Cp y[ (and)
to "!: end Goveinrnent :ek to re-
..:^ the problem of land tmna. e.."

F reporting on p-ifonn r e of Grenada's
Agriciltural l- --.ry as a '. ..e, CDB says
output fell c i,..'i.i.:ily. In 'he Barana
Sector, there has been a 15-% d.,ine from
-'he 1990 fig u- .--. the '. triibutes
this fall to ': it sac- "r i.h roviing
..,nvillige.s. of f -i;ne --liuce bananas
';"4 to the presence of 3sy 4.isease.
TLer1 has be in 1991 .- .-:i 'ron also
in the Cocoa Sector .:W~i :..j.ns to the

Dr Mitchell and- Mr D-- .Js _e
r-elected Political Lea.-.-- Deputy
Political Le--,ipr ,'~:per"'..- '" jle Mr
Norris Jamrns -w:s iee.. -9':-,
:' 'i.L off an siempt to ns""t to by Mr
Viiiston 'hvi- ; r :."-i-i,' ? ber.
Losing His P-pe
An imporhn -,-.- is that"- therprom-
ire NNP imrab:., Mr. :m ?.:njamin,
-.2 Ppl,.Ced a.s,1 S -:::..;y by Mr
:,lyni Wt-n-:.-. Ar r. 7:n-inent
rn'--:er losing his place on the Executive is
Mr Fintorn Debou wh, '-. -- as one of
the K'. Floor fIe!: --,-.

IIERP is a men-ber of b- tI. ;-. ..ibbean
D.Y.tic Uic (CDUr aaa :i ECID,

T'_es Sttiv f,.;: r. .i.. po .:-- parn- _
ies inStVinc- -'t Luci,-. _t .<-, St Kitt3,
l, rt'eenal, D,".. ^; .Ne a.._-,:gtuilla.
li-^s'^^--y -:- yn = =:-,-- -..gsmamm

- --- ----

The Grenada Newsletter Saturday Ist August 1992 Page 8

CDB From Page 7
Cocoa Association registering 21.4% below
the figure for the previ'.us year. CDB :avs,
however, the Bank thinks that, given on-
going implermentatio.n of a major rehab-
ilitation programme, production in the
medium term should improve,

The Nutmeg Sector expanded in 1991 by a
mere 2.5% over deliveries made to the
Grenada Co-operative Nutnmeag Ass ociationn
(GCNA) in 1990, and, the Peport zays, since
1990, production has been below the ave rage
for the preceding three years.
Stagnation Is Due
This stagnation is -ue lrg--y to the "soft
market for nutiinegs, the Report say,, and
to collapse of the Marketing Co-operation
Agreement in which the Association vas
involved vith the nutnig exporters of

Grenada and Ind,.onesia:t supply the entire
vCrld market for nutmegs on -, ratio of 25%
to 75% in fat:.ur of Indonesia. The
Marketing Co-operation Agerement was
implemented in 1987 and Grenada'-, profits
from nutmnegs, in that year, exceeded, by
more thii 50%, the ezar rings in any previous
year since GCNA was established in 194'6.

This fa-.'ottrable development continued in
1988, but, for re!L.:. ,ns which are unclear,
the Agreerrent broke .ownin 19'9 with the
marketing of nrutnerieg by Irndonesia at pri,'es
far belov agTred leveIl. A spokesrmn
for thie Associatiorn aid then that long term
,io-nt.racts guaranteed GCNA favo-mable
prices i nto rnmaiy months ahead, but concern
vas expressed for l-e future.

"The Nutmeg Board has been accum-
ulating inventories rather than selling at
the relatively low world market prices",
tthe CDB Report says. "However,
prospects for increased prices in the short
term appear poor."

Cr:'E, rfer: to the Association's plan" to
manufacture nutmeg oil in an effort to

reduce spoilage and improve marketing, but
the Bank does not think this vill be" of ad-

This move may not alleviate the pricing
problem, the Report says, since the oil is
only a substitute for the raw material The
Report suggests that, in collaboration with
GCNA, Government should seek to reduce
the large inventory of nutmegs.

The Report paints a brigher picture in
the Tourism Industry where, it says,
visitor arrivals in 1991 increased by9l1%
with all categories of visitors rising

Total visitor expenditure rose by more than
21% to US$45.4 million, CDB says,
reflecting, primarily, strong growth in
stopover arrivals.

After five years of robust expansion
averaging in excess of 5%, Grenada's
economy weakened in 1991 vithreal growth
estimated at 3%, the Report says, and Gov-
ernment's financial position continued to
weaken vith a videningof the ove ral deficit
to US$7.7 million.
Poor Performance OfAgriulture
Domestic borrowing by Government to
finance the deficit reduced liquidityin the
banking system, C DB says, and, im the
first nine months of 1991, commercial
bank deposits increased by only 12%.
This small increase, the Report says, was
due to the poor performance of Agri-
culture and the use, by Government, of
the surplus funds of the National In-
surance Scheme.

"This led to slow expansion in credit to the
private sector in the first half of the year",
the Rpport says "In the thiri quarter, a
noticeable relaxation of the banks' lending
policy contributed to an overall US$3.6
million increase in lending to the private
Pleame See CDB Page 9

-- -- ----- --------- --- -------

The Grenada Newsletter Satualay 1st August 1992 Page 9

Three major actors ar expected to contribute
in 1992 to continuation oj sEiaggisk
economic wactivity 4i thm 'Blorrosiit a Member

*I in the Borrowing Member
J) Coumtes (fMC) of the Carib-
bean Development Bank (CDB)
shoved disappointing declines in 1991.

This is disclosed in the nov-published CDB
1991 Annual Report which says slov-dovn
in growth performance was most notable
among the British dependencies. :

"The sharp decline in their growth rates
emphasises the heavy dependence on the
Tourist Industry, vhich accounts generally
for over 30% of domestic value-added in
these countries," the Report says.

CDB From Page 8
By the end of 1991, the balance of trade
deficit had videned as domestic exports
contracted by 7.8% and imports grew by
13%. However, the Bank says, as a
result of increases in tourist expenditure,
expansion of the current account deficit
was contained at US$31.3 million.
During 1991, Government received assis-
tance fi)m fourregional insttutionr vith
preparatij:n of a meditumn term fiscal
adjusirnent programme highlighting the
need to tighten fisc.-il management and.
broaden the tax base.

"Govemnment has agreed to impi nt
the majority of the recommrenda oris in-
cluding debt rescheduling", tB sayv;.
"To date, Governmnit has a number
of major loans either res heduled or
cancelled by creditors 1L1_ '
.. ... ... .. Xi^^ F^ j ^

That dependence makes these countries
extremely susceptible to developments in the
United State which accounts fr t~h trptW'
proportion of visitors to their shores
. Real Outpt Performance
The Turks and Caicos Islands are exempted
from these observations as, together with
Guyana, St Kitts and Trinidad & Tobago,
this British dependency is listed by the Bank
among the four BMCs reporting improve-
ment in real output performance in 1991.

The up-swing in Guyana and Trinidad &
Tobago followed a sustained period of
negative real growth, the Report says, and
in Guyana, real growth reached 5.6% in

For the first nine months of the year, CDB
says, Trinidad & Tobago reported 2.6% of
real growth, due primarily to significant
performance increases in the non-petrole um
sectors, CDB says.

Sluggish economic .performance vas
accompanied in many BMCs by.widening
fiscal and external deficits, the Report
says, ali, to fight this, there vas imple-
mentation of macroeconomic reforms by
many BMCs.
Cut Public Sector Wages
Bar.ados, increased direct and indirect
t.::es, cut public sector wages and imple-
mented retrenchrwnt, CDB says, while
hrmaica completely libe alised the foreign
exchange market and adopted a market-
determined exchange rate.
Pleame see OroCAST Page M


The Grenada Newsletter Saturday 1st August 1992 Page 10
OECAST Frm Page 9

This move resulted inconsiderable instability
in the Jarrica market and resulted in a s harp
depreciation of the exchange rate during the
year, CDB says-
Part Of A General Programme
"Several c i.mtries, includingBaitados, Gre-
nada and Jamaica, either continued or
announced proposals to divest public
enterprises as a mrans of securing needed
foreign exchange," the Report says, "and as
part of a general programme to improve
operations and efficiency of the public

% al P I

Mounting fiscal pressures inr
Anguilla, Antigua, the Baham-
as, Dominica, Grenada and St Kitts
resulted in these countries relying
increasingly on the domestic syst-
em to finance public sector defic- *
its, the Report says, and so crowded out the
private sector in competition for available
financial resources.

,In Guyana, Jamaica and Trinidad & Tobago,
however, CDB say:, sizable reductions in
public sector borrowing from the domestic
banking system facilitated increases in lend-
ing to the private sector.

According to the Bank, three major factors
are expected to contribute in 1992 to
continuation of sluggish economic activity
in the BMCs. First, economic recovry in
the countries of the Organisation for Eco-
nomic Co-operation & Developnent
(OECD), -nd particularly in the United
States, is likely to be slov.
Lover Levels Of Consumption
Secondly, demand management stra'eg.ies
being pursued by many BMCs will initially
result in lover levels of consumption and
possibly investment.

And thirdly, foreign exchange shortages
coupled vith, in some cases, the high debt
service burden and unstable financial and
foreign exchange markets. vill result in

investment programmes being halted, scaled
,own or delayed.

"In this environment, real growth in the
traditional industries, especially tourism
and sugar, vill either 'continue to decline
dr stabilise at the 1991 lewrl, the CDB
Report says.
A RayOfHo~e -
Hovever, the Report offers a ray of hope
vith reference to non-traditional agriculture.
As greater emphasis is placed on expansion
of food production to meet domestic and
y possible regional demands, the
SBank says, prospects in this
field are encouraging.

Looking to the
future, the Report
says fiscal discip-
neof the last fev
years is expected to be maintained and this
angurs vell for sustained improvements in
the fiscal accounts

Warning is given, ho..- eve r, that with high1
and growing levels of unemployment in
several countries, there vill be increasing
pressure on governments to adopt policies
geared specifically to create additional em-
ployniert opportunities.

Increasing attention vill be paid to creating
an appropriate environment for expansion
of the pmIductive sectors, CDB says, arnd
ernph. is on export competitiveness and
control of inflation vill also be a primary

"Policy prescriptions vill therefore be
h-eaily veihed tov.w-ls stabilising the
exchange rate, strairning mone. ar expan-
sion and controlling wage costs", the Report
Harmonious Economic Growth
CDB vas established in 1970 for the purpose
of contributing to harmonious economic
growth and developrrmnt of member
Please See FORECAS Pase 11

IL~31ET~-~t~ B~



foreim emhan -e mar s,7 v.i

Saturday Ist August 1992 Page I

Minister for Agriculture in
the Grenada Govenmment,,
on July 20th, pointed out
f GrTe resources which can be developed
give Grenadiaws a higher quality of life.

7I'ese resources are first, the land and vbat
:.2m do for us", he said, "secondly, the sea
1an its marine resources, and thirdly, the
r,-ople of Grenada."

The Minister's recipe for better living vas
i-n as he delivered the feature address at
1be, sod-turning ceremony of an eight-acre
cultural Experimental Station and Seed

70 CAT front Ptga e 10
o ::ries, having special regard to needs
Less Developed Countries (LDC)
I 'he Caribbean Community.

.CB's Borrowing Member Countries in
-- More Developed Countries (MDC)
ls -. are the Baharms, Barbados, Guyana,
.:. Mica and Trinidad & Tobago. Those
in the LDC class are Anguilla, Antigua,
S lelize, British Virgin Islands, Cayman
L.-.anrds, Dominica, Grenada, Montserrat,
St Kitts, St Lucia, StVincentand ihe Turks

So-MBCs are Colombia, Mexico, Ven-
:ela, Canada, France, Germany, Italy
'd the United Kingdom.

,! '-)'s total resources at 31st December
1991 vere EC$890.6 million. During
iis 22 years of operation, the Bank has
iw.:-ved EC$938.6 million in financing,
S-ich 53% entto projects in the LDC.

entire sponsored y he .t. of China
(ROC) on Taiwvan

Mr Brizan said the pro :-",'.ed on the
Governmentovned L : -.'- -. .n the
south-east coast, h.:- -: "..-_ i r .rt.- t
aspects, one of ,hi-;,' is j; irj af Ion and
drainage system esse-nt-:-o ,?plication of
modem technique. ;i. ,,- .:- g to
agricultural production
Will Have An Opperwinv.
There is to be bi. --
said, an office anrd Ic:. ... .
oratory where q',-': -
Grenadians vill ..: '
opportunity to do ::
ic voik as it rePite: tac-

Another aspect. of I- : ..
project, the Miriste
said, is the building of
a warehouse and fax E '-
rrachine.y centre, aur C 'r fQ BRIZAn
there vili be four geric f.. r tL raising
of seedlings, for flof:: ;.: .Be and for
hydroponic cultivatior.

A "net-house" esan -,-: ,-- ..AP-ut half an
acre trill be used as a nuwer n'm .Aor cubitng
flowers, he said, and a cc-mport ",: mze rmorn
is also to be built.

"The building of all of :L -i-l xost. over
EC$570,000", he~. ; m~kes it a
major piece of mvestmn "
There Are Wi-nesies
Mr Brizan said there are veakrnesses in the
marketing of G( r,:., iditic agri-
cultural crops of C.:.- Nutm.- -. B.ana-
nas, and the island's. nc- : I. .. must
be v.idened. P -:>.- :: I. g Paj 12


ThIe Grenada Newvsletter

igsif ~cf/iL r17a
me ns u

- --- --- --- -- -- --

The Grenada Nevsletter Saturday 1st August 1992 Page 12

ROC Fro Page
With reference tWv oc(a, the Minister said,
earlier this year, the l.r-gest co1.1:1 pr .ducer
in the world, the Ivori Coast, v:s forced by
the Intematiorw Monetary Fund (IMF) to
put large stock. of cocoa on the market ,
resulting in a price drop, the lowest in 20
BroughtAnnual Earnings
In 1987 and 1988, liutmegs bivught annual
earnings to ,rVenada of between EC $38
million and. EC $46 million, Mr Brizan said,,
but now earnings are only between EC $12
million and EC $13 million.

With Indonesia," he
said, Ove were co-operatig, but Indonesia
had to go to the IMF for money and the
IMF said, `deregulate your market'.
They did it and the nice thing ve had
going vith them crashed"

In order to protect the .:,r- ultiful e: onomy
the base must be widened, he said, and this,
with the help of the Agricultural Experi-
mental Stationand Se-d Centre, will be done
by adding many more agicultural crops for

The Minister varc-ned, "hove .r, that Ln-
culture vi'th:ouT a strong
sector is doomed to Wst.nation and de-lirne.

Because of the difficulties and urrce ainties
of the intemational rnrik:ept he said, Grenad.-
ians must start tlhinking of agro-pir.'jects
which will involve processing of important
raw materials.
Most Important Projects
In moving towards this goal, he said, the
Agricultural Experimental Station and
Seed Centre is one of the most important
projects in Grenada's agricultural andt
agpo-industrial development.

Speaking at the sod-turning cerernny, ROC
Ambasa,,dor to Grenada, Lin Tswi-hsien,
pointed out that, date to date, the ceremony
fell on thie ariversa of the July 20th 1)39
establishment of diplomatic relations be-
twee 'Grenada and the ROC

"Nov, exactly three years later," he said,
"I am proud to say that, m celebrating
the 3rd anniversar veare harvesting
the fruits for vbich all of us Iai'e worked
hand-in-hand in the past '
One Of The Major Conributions
The Ambassador said the Agri-
cultural Technical Co-operation
Agreement between the ROC
and Grenada is one of the
major contributions to relat-
ions between the two countries.

Through that Agreement, he said, eight, of
Taiwan's best. agricultural specialists, to-
gethier with numerous advanced facilities,
are at present in Grenada working with their
Gr--nad i.r cotmterparts and with the farmers.

Their areas of activity, he said, are
horticulture, floricufturm,shrimp farming,
soil and water conservation and veterin-
ary practice-

PrPeent. at the ceie nrnywere Prime Minister
Nicholas Brathwaite, Minister of Coimmuni-
ctions & Works, Mr Phinsley St Louis,
Minister of L-ibour, Mr Edzel Th:rman.,
Minister of Health, Mr Michael Andrew,
Minis ter of Tourism, Mrs Joan Purell and
Mimri-ter of Education, Senator Carlyle
EspeciallyFor The Occasion
Also present, and in Grenada especially
for the occasion, vere Li-Shan Chiang,
ROC Charge d'Affairas stationed in St
Vincent, and Gary Song-Hinn Lin,
ROC Charge d'Affaires stationed in St
A-(w .....

-- ~ -I---- --- -- --

I -^ CarndaNevslktter Saturday 1st August 199 Page 13

rj^;;\"^^'^.'ii!^ ^ "

iWEF Donates Toys

;Ykre _-.:1 twyo hurd.rl children who re.
; ,-.:f-care centie- in Grenada
:.. rei'' toys from an assortment
l.. by the Unirtd Nations Inter-
i:.d Children's Emergency Fund
C EF).,

S...: to a release fpom the Govem-
: j: I;o_,a,.ti'n Service (GIS), these
... e .t'hued at -..:me US$5,779.00
be ditnributeid to twelve
r.ent operated and pr.vtJely run

S. S'ast On Farm Roads

,..-it-ion of of the six farm
'-. ted Govemment's B,.a-ana
S- r.. Project began on July 13th
n'" : ': d Mome Lo-:o,,- in the east
: ansh of St Andrev's.

7n.g. oject, Xrhic:h iwas launched on AJ9y
i, s nz fu-d ed by the Rept.lic
.hia (ROC) on Taivan at a cost of
EC$1 million.

1ie .p. from the G.o.vrment Inform-
: Se:. says a quarter of a mile of
a Z' Guapo 1?ia vwil! be fpved at
cs o'f EC$107,000 wlJle, in the
I Langue :Ta, three q -.m.rte', of a
vill be paved. at a cost of
5 i 0 0.

7h oher f'.r roads to be rehabilitated
:, :.ned at St Mar..a.mi aid The Bocas
,.- PUh of St Andrev's, and at Mt.
iid PFl:i.nce in the Parish of St

g. to .lIe Governmentr oIf,,orim-
a Service (GIS). Minister of Aeri-

culture, Mr Gei org Er:i r, has stated
that, up to f ya?.r 1955, Govern-iaent.
is conunittec: to ., il. emphasis
on, developi.n.t of f.m .'as and
agrici-lti.ual lands.

In addition to funding of road rehab-
ilitation, the ROC's contribution to the
Banana Pes1riti...n, P,,ject includes
provision of banana "parn'.1A'F" and agri-
ciu,' ual equipment.

CWHA Team visits

T "!enty-to ti of a -:alth pro-
fessional tea-m fro.T the Cibbe anll
Women's Health Association (CWHA)
of Nev York I :i'?. C-:w a from 22nd
to 25th July.

Accord.iug to -,-: Gover'-irIt ir 'Im-
at:ion Srvici-, ,,, i S); ih n (which
included :. ,-' -.-:,m Dr Lorna
Mc.Bamrntt, Ac;Uig Co:t-ra::..1.,ner of
New York State De.:'-n of Halth)
conducted aL Iiter',.t:::i.:.-nal arnd Cross-
cultural He.:Eth I;-.. F. -1. S.udy Tour
and Serminar.

Fo,:us of the tour and seminar was to
pr:wid.e a forum for Uri'..: States and
Cributlen hi~eliT; cat-r pr1vider, to dis-
cus how lh':_a.h c"":A!:ions in he
E-sten- Carit .br-. ,Jl-nr: e. health 'amre
attitudes and bei~"' iou.s of immi grants
living in the Unite-, Stnte of Araelica.

The seminr." -..-: open to he-.~th pro-
fessionals in Gn~nia,-d arid, folo"..'iong the
visit to G,:-ada, and C WHA team
conducted a iri.irr tour and seminar in

Please ~e If tW '-O-T'g Page 14

. . .. ..

The Grenada Nevsletter Saturday 1st August 1992 Page 14
NEWS SHORTS From Page 13

US Marine Dental Battalion

During ly, the United States Marine
4th Dental Battalion visited. Grenada for
two weeks and gave free dental attention
to over four hinmdredi Grenadians.

A release from the Govemnient. Iiformn-
ation Sevice (GIS) .says t-he Battalionc
vas -headed by Commander J R Camy
and Save pr.fessi:nal attention to sonme
30 persoris per day, cleairng,, filling and.

Additionaly, a Senior Dental Nurse held
*:essiors with teachers, disi.:usiri dental
health and application of flu',ide lins-

The team visited a number of pre-natal
clinics, holding sessions with fmrena l
mothers on dental c;.ua during, pmr;t-
1-i~~~ .*aJ5C

A number of dental technicians toured,
Govrmnenrt's dental facilities in the
Farishes of St Patrick's, St Mark's and
St John's, making necessary repairs, and:
dental supplies, including fluondei
toothpaste, toothbrushes and dental
floss, vewr made available.

The 4th Dental Battalion vas supported
by the 4th Civil Affairs Group, vhile
funds for tlje project came from the
United States Atlantic Commrand at
N.-,:,lk, Virginua

Point Salines International
Charges Security Levy

Travellers using Grenada's Point Salines Airport, in addition to the
Airport. Serrvice Charge of EC $25.00,
must n.:.,v pay an Airport Security
Service Charge of EC$10.00.

Alist Hughes
8th August 1992

Prmted & Published By The Proprietwr,
Alistr Hughes, Jomnaalst,
Of Scott Street, St.Georges Grenada, WestiAies
(P.O _Box 65: Phone [809] 440 2538 Cables HUSON, Grenada

... _.._~ ~ ..

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