Mr. Derek Ramsamooj, a noted regional personality, was in Anguilla recently and undertook a critical observation of the remaining days of the election campaign. He is a professionally and highly experienced Political Analyst and Development Consultant with extensive knowledge of the Political Economy of the Caribbean and an effective thinker and researcher who prepares and presents position papers and documents for policy-makers. He is a respected political commentator in Caribbean circles.

Mr. Derek Ramsamooj

Educated at London School of Economics and Political Science, Derek is Managing Director of CDS since 1994. He has advised clients on political strategy, development issues and crisis management. Derek, who is based in Trinidad, has travelled and worked extensively in the Caribbean and South American regions.

He has attended professional workshops at Harvard Business School and has membership in the Market Research Society of the United Kingdom, as well as the American Association of Political Consultants.

Derek invited The Anguillian to interview him on his 2010 election findings in Anguilla. Ten questions were emailed to him following his departure on Tuesday. Those questions and his replies are published below.

1. An economist remarked recently that some regional governments impacted by the global recession may inadvertently become victims of that downturn by losing elections. How do you respond to this, and how true may this be in relation to the just ended General Election in Anguilla?

It is a economic reality that the global economic downturn has impacted negatively on our local economies – from Belize to Guyana all of these regional countries have experienced a negative impact. Even the richer countries such as Trinidad and Tobago have experienced an economic downturn.

However, in the last three odd months both the St. Kitts Labour Party and the Dominica Labour Party have been returned to office, notwithstanding the stresses of their respective economy. The weakness of the opposition campaign, along with an effective grassroots campaign implemented by the incumbent, neutralises whatever political impact of the global recession.

In Anguilla the structure of the Anguilla United Movement ground campaign, the exploitation of political anger against former Minister Victor Banks, allegations of economic mismanagement and the fears of Anguilla following the path of the Turks and Caicos Islands drove the political decision making process.

2. The former Anguilla Government was accused of wastage of the island's finances including big duty free concessions to investors rather than making savings for lean days. If you heard about this allegation, what are your thoughts?

Allegations of economic mismanagement is the campaign song against any incumbent government. These allegations take political traction in a society in which the people are experiencing economic hardship. The escalating cost of living, economic uncertainty, along with the lack of economic diversification, contributed to the defeat of the Anguilla United Front.

The challenge for the new government would be striking the balance of creating an attractive investment package that is competitive within a regional market. The tourism product of countries such as Cuba, the Dominican Republic, the Bahamas and the Grenadines should be carefully reviewed.

An investor incentive package for Anguillans in the Diaspora should be considered – attracting capital and human resources that understand the sensitivity of the Anguilla culture.

3. If the economic situation is one factor, what other factors do you think contributed to the Anguilla government’s defect at the polls?

There are a number of political factors that contributed to the AUF’s defeat.

Political fatigue – the electorate was fed up of the Anguilla United Front as a political vehicle. The AUF leadership of Mr. Fleming and Mr. Banks overstayed their political tenure and the electorate felt that Mr. Banks leadership was offering nothing new to Anguilla, simply a continuation of the past. The electorate suffered from political fatigue and wanted a political change as is evident by the defeat of Mr. Banks by Mr. Gumbs. The majority of the electorate believed that the AUF squandered many opportunities to bring sustainable development to Anguilla.

Lack of public trust – the electorate lost public trust in the economic policies and plans and the leadership of Victor Banks. Throughout Anguilla, the voting pattern suggest that the AUF and Mr. Banks leadership lost public trust. Even in District 1 and District 3 that the AUF retained, public opinion swung against the AUF.

The electorate felt that the AUF could no longer be trusted to manage the affairs of Anguilla in the interest of the people.

Political Creditability – Mr. Banks “poodle statement” was a gross political error that the AUM was able to quickly capitalise upon, developed political spin and utilised as a political battle cry of “Poodle Power”. As part of a ground campaign the political cries of poodle power motivated the AUM supporters. This AUF campaign rhetoric displayed political arrogance and political insensitivity to the concerns of the electorate. Furthermore, the dwindling national political creditability of Victor Banks created a default wave which the AUM skilfully rode into Government.

Beheading – the AUM's strategy of politically beheading Mr. Banks – “We have to get rid of Victor” – along with the constant repetition of this desire on the AUM’s platform reflected the AUM understanding of the psychology of the Anguilla electorate.

Campaign Style – The AUF campaign faltered badly – they failed to effectively remind the electorate of the progress made under their tenure. More importantly, they failed to define a new development platform. The AUF exchange of leadership failed to attract new voters, especially the first time voters.

- The AUM Campaign Platform was much more aggressive regarding the failures of the AUF's policies and focussed on the leadership of Victor Banks. However, their ground campaign saw political spill over from District 5 and District 6 influencing sufficient voters in District 4 and District 7 to secure a AUM victory. Ground Campaign Strategy, along with Media Bombardment, facilitated a swing in favour towards AUM.

4. What steps do you think the new government should take to deal with the situation in order to restore economic growth and employment?

The challenge would be developing an attractive investment package for foreign investment, domestic investment of the local entrepreneurs and for Diaspora investment. This is urgently required to stimulate the economy through job creation. The ability to diversify the economy in the short term is critical for economic sustainability.

The rescheduling and renegotiations of the national debt should also be given top priority. The challenge for the government is that all soft monies, grants and concessionary financial assistance would be tied aid: example assistance from China, India, Canada, USA and the European Union.

5. As a small island that’s dependent on tourism what new initiatives should Anguilla pursue to encourage job creation and diversification of the economy?

Developing a Knowledge Based Economy, Developing the Green Economy, Expanding the International Financial Services Sector, Building the Indigenous Entrepreneurial Sector are all areas of economic diversification.

Diversification of Anguilla’s tourism product should be considered in the shortest period: for example Bed and Breakfast Programs for the East End and Island Harbour.

Developing Food Security by aggressively pursuing an expanded fisheries program; and niche agriculture should be considered.

6. Do you think a new tax regime is the answer to Anguilla’s need for more revenue? What do you think about salaries reduction, personal income tax and borrowing, if there is the possibility of payback within a reasonable time?

Introducing new taxes is a very sensitive issue. It would be difficult for the AUM administration to introduce new taxes when on the campaign trail they accused the AUF of wanting to introduce new taxes.
The financial situation of Anguilla would perhaps leave the Government no choice but to expand the tax revenue base of the country, either by improving on the efficiency tax collection system, reviewing all concession agreements with large development projects and identifying new methods of indirect taxation.

The review of consumption tax is indeed necessary, and the replacement with an across the board consumer tax in the form of Value Added Tax is inevitable. If new taxes are to be implemented it is best to do so in the first year in office and during a period of economic upswing.

Salary freeze as opposed to salary reduction, as well as a comprehensive review of all government spending, should be considered. Anguilla needs a leaner, effective government structure.
7. The former government did not prepare a 2010 budget, but left this to the new administration to sort out. Was this a strategic move - an irresponsible decision - or a reasonable one for the new government to get its own agenda?

It should be the responsibility of a new government to chart their own way forward, not be constrained by the economic planning of a former regime.

8. What steps should the new government take to address some of the more pressing serious needs of Anguilla in this early post election period?

A comprehensive financial review and a situational economic analysis of Anguilla are required so as to facilitate economic planning of the development path.

The new Chief Minister should begin discussions with all the national stakeholders from the labour leaders to the business classes to the civil society and to key national players in the diaspora. Building National Consensus in defining a developmental road map should be completed within the next three months.
Meetings with the national, regional and international financial players should be secured – having their input in defining Anguilla Rescue Plan.

9. There has been great stress on relations on the island as a result of a most bitter and intense election campaign. What is more important now: a focus on restoring relationships and unity or a focus on improving the economy?

The Chief Minister must simultaneously restore relationships and improve the economy. He must manage the political conflicts and build a professional skilled team of Anguillans to handle the affairs of Anguilla. He should develop a working relationship with Mr. Banks so as to ensure a smooth transition between administrations.

The staffing of all government agencies should be guided by professionalism versus patronage. A different type of leadership is necessary - that of patriotism versus partisanism.
10. How do you see the future of Anguilla unfolding in terms of (a) constitutional and electoral reform; (b) working closely with other regional countries and organizations; (c) empowering itspeople and acquiring Anguilla’s own niche in a hostile and competitive world?

Anguilla needs constitutional reform especially with respect governance structures. Public Procurement Legislation and National Integrity Legislation, along with the implementation mechanism, should happen within the next six months. This would facilitate Anguilla being on the path of good governance, accountability and transparency.

Constitutional Reform is also required if the nature of Anguilla’s foreign relations are to undergo transformation. In the world of globalization, Foreign Affairs is now a tool of a country’s economic and national security – hence should be under the ambit of the country’s government. Anguilla needs to reconsider its role in the OECS and Caricom as a method of developmental tool. The global reality is long gone that any country can stand alone, Anguilla future must be structured around negotiate its place in the global economy.

| Printer-friendly page | Send this article to a friend |

World News