Agenda Details

Mr. President

Excellencies

Ladies and Gentlemen

I wish to compliment you for convening this conference less than one year after the adoption of Resolution 65/313. We meet at a time when the prospects for global economic recovery are increasingly overshadowed by myriad downside risks. In the face of these risks, the United Nations must not abdicate its responsibility, to forge common positions and devise ways geared to improving the global economic and financial situation which has impacted very negatively on development and resulted in dire social consequences for our peoples. If we are successful in our endeavours, we may avoid a second major crisis.

There is also a real risk that the present global fragility could impact on small peripheral economies and other developing countries that were able to withstand the initial impact of the crisis due to strong domestic economic buffers. However, it is likely that these countries may not be able to withstand a second shock of similar magnitude having not as yet attained pre-crisis economic strength.

The global outlook is not very promising. The IMF projects that global economic growth will decrease from about 4 percent in 2011 to about 3½ percent in 2012 because of weak activity during the second half of 2011 and the first half of 2012.  

This unflattering picture makes it imperative that we embrace new approaches to development to replace those which have created underdevelopment and persistent poverty in many countries.

Home grown solutions must assume major importance if we are to achieve long-term successes. In the Caribbean, we are shifting the old paradigm of development dependent on external sources to a new one of Caribbean Convergence; endogenous growth must be the real driver of Caribbean development.  

 We are beginning to witness, however modest, some success as a result of this new approach to development. The Caribbean is projected to grow by approximately 3 percent in 2012, after expanding by an average of 1.7 percent during the first half of 2011. 

In the case of Trinidad and Tobago, my Government remains steadfast in its mission to address lingering financial vulnerabilities and to refocus our efforts on promoting growth and diversification. These policies have had some positive effects and the IMF has noted that economic recovery in 2012 came after an extended slowdown lasting three years.

Mr. President, the inclusion of the international financial institutions in this conference is commendable. We now have an opportunity, as States, to engage in open and frank discourse with these Washington-based institutions and to impress upon them the need for small States such as Trinidad and Tobago, to have a greater voice in their operations. I submit that this would lead to greater transparency and an increase in the credibility of these bodies.   

The economic recession impacting on many European capitals and the current crisis within the Eurozone reverberates around the world.  In the Greek capital, large sections of the population are calling for a shift in the economic model of strict austerity as the means to economic growth. Economic models have to treat with the social and political climate of the day.  It is clear that there is a need for more discussion on the different paths to economic growth and it should not be treated as a mantra. We need to think outside the box. 

We in the developing countries are asked to slavishly follow the economic policies dictated in the north without due regard for our particular economic and social circumstances.   It is now time that we are all allowed greater participation at the table with our views, ideas and special experiences.  We have to forge a new economic paradigm that adequately caters for our interests also.   It cannot be business as usual.

Mr. President

The topics for discussion by the Round Tables are constructive and form a useful  platform upon which we can build our deliberations. Please permit me to offer a few comments.

In an uncertain environment, the challenge for fiscal policy is to find the right balance between exploiting short-term space to support the fragile recovery, and rebuilding longer term space by advancing fiscal consolidation.

In many of the developed nations, debt ratios are at historic highs and rising, borrowing requirements remain very large, financial markets continue to be in a state of uncertainty, and downside risks to the global economy exist. . Developing countries face particular risks as many depend on commodities and primary sectors. We do not have convertible currencies so we are price takers who suffer from the vagaries of the currency exchange movements of our major trading partners. Our productive sectors have been traditionally focused externally with the result that we are  at the mercy of external forces.  

Fiscal policy has to support and complement other economic and financial .The long term solution to debt management is the achievement of economic growth in our economies and the full employment of all available  productive factors of production.  

The economy of Trinidad and Tobago has been able to withstand some of the pervasive effects of the global financial crisis and economic downturn because of strong economic buffers and appropriate government action to support macro-economic activity including: 

Our International reserves at the end of 2011 were US$9.8bn, up from US$8.7bn in 2009, this was   equivalent of thirteen (13) months of import cover;

The Government of Trinidad and Tobago has been seeking to boost local investment and economic activity and also attract foreign direct investment by ensuring a sound macroeconomic framework and a business friendly environment. Trinidad and Tobago is open for business. 

Our National Innovation Policy places increased focus on small and micro entrepreneurial activity given its potential to increase economic growth, employment opportunities and social development.  

We have established an Innovation Fund to allow talented individuals with pioneering business ideas the opportunity to develop their concepts into marketable products

We also established an Economic Development Board and the Council for Competitiveness and Innovation mandated to improve global competitiveness and to support an investment strategy for diversification of the economy.

Given the importance of Information Communication and Technology, We launched an IT Platform to modernize the way companies connect with Government agencies in the process of conducting business and trade.  This platform will reduce the processing time for trade related applications, which will ultimately enhance business competitiveness in Trinidad and Tobago.

In respect of human capital development, my government believes this is the most critical success factor for transforming the economy.  Our medium term targets for human capital development include:

Increasing tertiary education and participation rate to 60 percent by 2012;

Expanding and diversifying the secondary school curriculum;

Realigning curriculum at the tertiary level to support market demand and to create entrepreneurs and innovators; and

Universal early childhood education by 2015; and

Increasing Stability, Predictability and Transparency in the Financial Sector

Trinidad and Tobago is considered the regional financial center for the Caribbean, with a well-developed financial sector accounting for approximately 25 percent of non-energy GDP.  

However, the global financial crisis has exposed our vulnerability to systemic risk and heightened the need for stronger financial regulation and more effective financial sector legislation including improved corporate governance.  

International Standards of regulation:  Additionally, the Government has been involved in enhancing supervision and strengthening the local regulatory framework for the financial sector.  Our legislative agenda includes upgrading the regulation and supervision of the insurance sector, securities services and credit unions and increasing coverage for financial institutions by the Deposit Insurance Corporation. 

Also high on the agenda is strengthening cooperation among regulators at the national, regional and international levels to facilitate the continuous exchange of information and to develop a common approach towards regulation.

There has already been progress in this direction with the establishment of the Caribbean Group of Securities Regulators (CGSR) and the Offshore Group of Collective Investment Schemes Supervisors (OGCISS). The CGSR has developed a Common Takeover Code for Mergers and Acquisitions in addition to Choice of Law Rules.  

Trinidad and Tobago has also begun a programme of regulatory cooperation with Office of the Superintendent of Financial Institutions (OSFI) in Canada with respect to Canadian banks that operate in our jurisdiction, and we are also establishing similar arrangements with our neighbours in the Caribbean region.  

At the recent 2012 meeting of regional and international securities regulators in Buenos Aires, Argentina, Trinidad and Tobago, through the local Securities and Exchange Commission, was elected as the third representative of the Inter-American Regional Committee of the International Organisation of Securities Commissions (IOSCO) for 2012-2014.   In this role, we will work closely with the newly-elected chair and vice-chair of the Council of Securities Regulators of the Americas (COSRA) to bring to the attention of the IOSCO board, the interests, needs and opinions of the region. 

 An important component of our regulatory mechanisms is to make them immune from international criminal activity. Consequently, compliance with the Anti-Money Laundering and the Combating the Financing of Terrorism (AML–CFT) Guidelines is also an integral part of the financial industry since these measures minimize the threat of becoming a target for money launderers and financiers of terrorism.   Through our national Securities and Exchange Commission, we have issued AML/CFT guidelines to assist actors within the Securities Industry  to ensure that they comply with significant AML/CFT related legislation passed between 2009 and 2011. These guidelines outline the necessary measures that market actors should undertake to minimize the risk of the securities market being the target of the perpetrators of financial crime. 

In 2009, Trinidad and Tobago established the Financial Intelligence Unit (FIU) as a tangible initiative towards minimizing that threat.    This unit was established to implement the anti-money laundering policies of the Financial Action Task Force (FATF).

We are also committed to strengthening transparency in the conduct of business locally.  In 2011, Trinidad and Tobago became the 102ndmember jurisdiction in the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes.  This Forum is responsible for the implementation of international standards of transparency and exchange of information by both OECD and non-OECD countries.  

As we seek to increase the level of investment flows in all sectors of the economy, our participation in this forum is a critical step in facilitating the implementation of these international standards of transparency and exchange of information, which will intensify the level and quality of engagement with both current and potential partners by way of appropriate investment and taxation treaties.

In addition, we are also strengthening  our  capacity for negotiation of Double Taxation Agreements. This will facilitate removal of tax barriers to cross border trade and investment by providing for the elimination of double taxation, certainty of tax treatment, a reduction of tax rates, the prevention of fiscal evasion, the prevention of tax discrimination, and the resolution of tax disputes.  

 In an effort to keep abreast with global standards, Trinidad and Tobago recently participated in the World Bank’s Report on the Observance of Standards and Codes (ROSC) Initiative.  This is aimed at benchmarking this country’s corporate governance framework and company practices against the OECD Principles for Corporate Governance; developing and implementing a country action plan for improving institutional capacity with a view to strengthening the country’s corporate governance framework; and raising awareness of good corporate governance practices among the public and private sector stakeholders.  

Mr. President,

I share the view that while young people are innocent bystanders in the global financial crisis, they may end up paying the heaviest price as they will be called upon to work longer to service the debts accumulated in recent years and to support an increasingly ageing population. 

Moreover, they face high levels of unemployment. Young people between the ages 15 to 24 are the most affected. Youth unemployment has climbed to record levels in a number of countries.

In the Caribbean, we are facing a crisis in particular with male youths who are at risk  and  are drawn to  the scourge of the illegal drug trade and gang activity. These youths appear to have been locked out of the modern economy as a result of them not properly accessing the required skills and training via the educational system. 

This stark reality requires aggressive and sustained action from us if we, as leaders, are to ensure that the legacy of “stolen dreams” is reversed by restoring hope and opportunity across the length and breadth of the global economy

And there is a significant amount of work to do!

The goal of the Government of Trinidad and Tobago is to build an economy that is capable of generating endogenous growth based on knowledge generation and innovation, increased productivity levels and export expansion in order to create wider opportunities for high paying jobs at all levels.  

The eradication of poverty and the conditions that create and sustain poverty has become one of the top priorities of my Government.  Specifically, our poverty-focused policies comprise a number of initiatives including the Regional Micro Project Fund, the Micro Enterprise Training and Development Grant, and the Micro Enterprise Loan, all of which are designed to impact the incidence of poverty throughout various communities in Trinidad and Tobago. 

 We also intend  to reform  our  social safety net by establishing a comprehensive social security system, targeting women, the elderly, children and differently-abled, as well as by assisting households to take hold of opportunities that create prosperity and reduce the number of people classified as poor by 2 percent each year. 

My Government’s total policy framework is focused on delivering strong economic growth, more comprehensive and better targeted social programmes, including strengthening social protection for greater inclusiveness, and most importantly to improve access to education.

Mr. President

I am confident that based on the reforms being undertaken in Trinidad and Tobago, we are in a position to play our part in addressing the effects of the world financial and economic crisis. However, we recognize that the problems created by this crisis require action from all our partners in the international community. Without concerted efforts, aimed at creating a sense of commonality, we would not be in a position to combat unemployment; increase stability and transparency in the financial sector; or create an environment for increasing production, trade and investment.

The United Nations has a central role to play in this transformation. As a we celebrate fifty years of membership in this organization, Trinidad and Tobago  remains committed to continue work with the United Nations and  other multilateral agencies to bring about the desired changes in the international economic and financial architecture.

 I thank you.

NEW YORK - Prime Minister the Honourable Kamla Persad-Bissessar S.C., M.P. joined colleague leaders of the United Nations this morning at a High-Level debate on “The State of the World Economy.” The Prime Minister took the opportunity to discuss prospects for global economic recovery and also to showcase her Government’s steps towards achieving a stable economic environment in Trinidad and Tobago.

 

Prime Minister Persad-Bissessar drew reference to the IMF’s projection that global economic growth will decrease from about 4 percent in 2011 to about 3 ½ percent in 2012 due to weak activity during the second half of 2011 and first half of 2012. As regards Trinidad and Tobago, the recently concluded International Monetary Fund (IMF) Article IV Consultation found that there is evidence that the local economy is turning the corner and that growth will resume in 2012.

 

The Prime Minister identified the need for home grown solutions to attain economic recovery. She explained that the Caribbean region is shifting the old paradigm of development dependent on external sources to a new one of Caribbean Convergence. She emphasised that “...endogenous growth must be the real driver of Caribbean development.”  The success of this new approach is evident as the Caribbean region is now projected to grow by approximately 3 percent in 2012, after growing on average by 1.7 percent during the first half of 2011.

 

Prime Minister Persad-Bissessar explained that in order to achieve long term successes, Government recognises that there is a need for a major shift in the fiscal trajectory:

 

 

Persad-Bissessar expressed her concern over the many challenges which young people face as a result of the global economic downturn. With increasing youth unemployment in several countries, the Prime Minister called on colleague members of the United Nations to ensure that sufficient decent work opportunities are made available to the world’s youth:

 

“This stark reality requires aggressive and sustained action from us if we, as leaders, are to ensure that the legacy of “stolen dreams” is reversed by restoring hope and opportunity across the length and breadth of the global economy.”

The Prime Minister highlighted that her Government’s recent establishment of a Ministry of Gender, Youth and Child Development which prioritizes the involvement of youth at every stage of development and social transformation.  She also pointed out that Government is establishing a National Youth Policy which aims to promote youth empowerment and participation; placing youth at the forefront of policy development and implementation:

 

“The goal of the Government of Trinidad and Tobago is to build an economy that is capable of generating endogenous growth based on knowledge generation and innovation, increased productivity levels and export expansion in order to create wider opportunities for high paying jobs at all levels.”

Poverty continues to plague member countries of the United Nations. According to a recent report from the United Nations Economic Commission for Latin America and the Caribbean, poverty in Latin America and the Caribbean fell from 48.4 percent in 1990 to 31.4 percent in 2010, reaching its lowest level in 20 years. Prime Minister Persad-Bissessar emphasised that poverty eradication and the conditions that create and sustain poverty remains a priority for the Government of Trinidad and Tobago. She explained that Government’s poverty focused agenda includes a number of initiatives such as the Regional Micro Project Fund, the Micro Enterprise Training and Development Grant and the Micro Enterprise Loan:

 

“My Government’s total policy framework is focused on delivering strong economic growth, more comprehensive and better targeted social programmes, including strengthening social protection for greater inclusiveness, and most importantly to improve access to education.”

On the issue of rising debt ratios in advanced nations of the world, Prime Minister Persad-Bissessar insisted that fiscal policy must strike the most optimal balance between supporting the fragile economy and rebuilding fiscal space over the long term via fiscal consolidation. She stated that Trinidad and Tobago’s economy has been able to withstand the economic downturn because of a relatively lower public debt position and the nation’s energy resources.

 

Referring to Trinidad and Tobago as the regional financial centre for the Caribbean, the Prime Minister stressed her Government plans to boost local investment and attract foreign direct investment through the establishment of a sound macroeconomic framework and business friendly environment. She further highlighted Trinidad and Tobago’s National Innovation Policy focuses on small and micro entrepreneurial activity given its potential to increase economic growth, employment opportunities and social development. 

 

The Prime Minister concluded her statement at the High-Level debate by reaffirming Trinidad and Tobago’s commitment to the work of the United Nations in the quest for economic transformation. She also called for action from all partners in the international community to effectively address the effects of the world financial and economic crisis:

 

“Without concerted efforts, aimed at creating a sense of commonality, we would not be in a position to combat unemployment; increase stability and transparency in the financial sector; or create an environment for increasing production, trade and investment.”

Following the debate, Prime Minister Persad-Bissessar held brief bilateral meetings with His Excellency Ban Ki-Moon, Secretary General of the United Nations and Mr. Anthony Lake, Executive Directory, United Nations Children’s Fund (UNICEF). She also presented instruments of Appointment to His Excellency Eden Charles, Ambassador Extraordinary and Plenipotentiary, and Deputy Permanent Representative to the United Nations.

 

 

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