Macro-Economic review of Suriname

EUROPEAN COMMISSION “Public Private Partnership – Support to the Domestic Private Sector – Suriname Business Forum (SBF)”

“Macro-Economic review of Suriname 1999-2008” International Technical Mission to Build up a socio-economic profile of the DPS, including demographic and regional profile Suriname Business Forum – European Commission Delegation

Socio-economic study (Final Report)

Table of Contents

2

Index of tables

4

Index of graphics

5

List of acronyms

6

1. Introduction 1.1. The working methodology 1.2. Working Methodology

8 8 8

2. National policies for the social and economic development 2.1. The Diagnos report: Main constraints and recommendations 2.2. The SBF: National Strategy for the Development of the Domestic Private Sector 2.3. The Multi-Annual Development Plans 2.3.1. The Multi-Annual Development Plan 2001-2005 2.3.2. The Multi-Annual Development Plan 2006-2011

12 12 17 18 18 19

3. International cooperation programs 3.1. European Union 3.1.1. The Country Strategy Papers 2001-2007 3.1.2. The Country Strategy Papers 2008-2013 3.2. The Netherlands cooperation 3.3. Multinational organizations cooperation

23 23 23 25 26 27

4. The economic analysis: weaknesses, strengths and priorities 4.1. Macro-economic performance 4.1.1. Period 1975-1999 4.1.2. Period 2000-2006 4.1.3. Period 2007-2008 4.1.4. Consequences and conclusions of these macro-economic performance results 4.2. Economic sectors and products in which Suriname has a comparative advantage 4.2.1. Mining sector 4.2.2. Agriculture, animal husbandry and fisheries 4.2.3. Tourism sector 4.2.4. Forestry and timber sector 4.2.5. The domestic products by sector and their importance in the GDP of Suriname 4.2.6. Consequences, conclusions and measures to take from these results 4.3. Suriname trade relations 4.3.1. General trade balance situation 4.3.2. Trade markets by sectors 4.3.3. Trade markets by origin and destination 4.3.3.1. Trade markets by countries 4.3.3.2. Trade markets by regions 4.3.4. Main conclusions and measures to take from the trade analysis

30 30 30 32 35 38 38 39 40 44 47 47 50 51 52 53 57 57 59 61

5. Issues and platforms for discussions on regional and global trade 5.1. Suriname performance face to the CARICOM challenges 5.1.1. Main challenges of Suriname in the regional integration

63 63 63

“Macro-Economic Review of Suriname 1999-2008”

5.1.2. Reasons for the integration 5.1.3. Suriname weaknesses within the CARICOM regional integration

67 68

6. Investment priorities for public, domestic and foreign direct investment 6.1. Domestic investment 6.1.1. Period 1996-2000 6.1.2. Period 2001-2007 6.1.3. Conclusions and measures for the future 6.2. Foreign investment 6.2.1. Legal commercial framework 6.2.2. The information system 6.3. Net Foreign Direct Investment in Suriname and other Latin America and Caribbean countries

69 69 69 70 71 73 73 75 76

7.

Financial sector 7.1. Financial services: limited supply 7.2. Unfavourable financial environment for doing business 7.3. Irregular success of the revolving funds 7.4. Lack of monitoring system 7.5. Unknown rates of performance to determine the competitiveness of the banking sector 7.6. Comparison with the financial sector of other caricom countries 7.7. Conclusions and future measures

79 79 79 80 82 84 85 88

8.

The social and economic entrepreneurial domestic private sector profile 8.1. Entrepreneurial structure 8.2. Registered enterprises by types and groups 8.3. Turnover, average nominal labour and total number of employees at large enterprises 8.4. Main constraints of the private sector 8.5. Conclusions and future measures

89 89 90 91 92 94

9.

Competitiveness, transparency, economic freedom and doing business indexes 9.1. Suriname presence in the competitiveness index 9.2. Suriname presence in the corruption perception index 9.3. Suriname face to the economic freedom index 9.4. Suriname’s presence in the doing business index 9.5. Conclusions and measures for the future

96 96 98 98 100 101

10. Current situation with respect to the diagnostic report recommendations

104

11. Public-Private sectors dialogue 11.1. Traditional misunderstandings 11.2 The Suriname Business Forum 11.3. The business center 11.4. Conclusions and measures for the future

108 108 108 110 112

12. Summary of the main conclusions and future measures 12.1. Final conclusions 12.2. Some actions that could be taken by suriname 12.3. Final observation

115 115 115 116

13. Annexes

117


3

Index of tables Table 1.

Population by age group and sex, 2004 and 2005

-

Table 2.

Total education (except 3rd level education)

-

Table 3. Statistical data on 3rd level education. Academic years in period 2000-2003-2007

-

Table 4. Non-institutional population 15 years and older by sex and activity status

-

(in Paramaribo and Wanica, 2006)

Table 5.

Employed and unemployed population (15-64 years) by sex and age group

(in Paramaribo and Wanica, 2006)

Table 6.

Comparative figures of economic performance

36

Table 7.

Comparative figures of public external debt with other CARICOM countries

37

1995-2007

-

Table 8. GDP by sector of origin at constant prices and variations in different periods

50

Table 9. Suriname exports by economic use in percentage of total. Period 2003-2007

55

Table 10. Suriname exports by major categories. Period 2003-2007

55

Table 11. Imports by economic use in percentage of the total. Period 2003-2007

57

Table 12. Suriname destinations of exports in percentage of total. Period 2003-2007

58

Table 13. Suriname origin of imports in percentage of total. Period 2003-2007

59

Table 14. Domestic investment in millions of SRD (1996-2007)

71

Table 15. Domestic investment relative weights in percentage (1996-2007)

71

Table 16. FDI in eight CARICOM countries 2000-2003-2007

78

Table 17. Average exchange rates for the USD as fixed by Central Bank of Suriname

83

Since 1994, at December 31st Table 18. Comparative analysis of financial sector of Suriname with other Latin America

Table 19. Number of registered enterprises by type, in 2007

90

Table 20. Number of registered enterprises by groups, in 2007

91

Table 21. Suriname competitiveness index

97

Table 22. Ten economic freedoms and scores obtained in 2008

99

Table 23. Ranking doing business in Suriname 2007-2008 and target 2009

4

87

and CARICOM countries


101

Index of graphics Graphic 1. GDP variation years 1999-2007

33

Graphic 2.

Yearly inflation percentage

33

Graphic 3.

Public debt (in percentage of GDP)

34

Graphic 4.

Tourism evolution years 2004-2007

45

Graphic 5. Annual trade balance in millions of dollars

53

Graphic 6. Net foreign direct investment

77

Graphic 7. Suriname comparative economic performance

78

Graphic 8.

The most problematic factors for doing business (percentage of responses)

98

Graphic 9.

Heritage Foundation Suriname ten economic freedoms

Graphic 10. Ease of doing business-global rank


-

5

List of acronyms Acronyms: Institution ABS General Bureau of Statistics ADEK Anton de Kom University of Suriname AHKCO Academy of Art and Culture Education ASEAN Association of South East Asian Nations ASFA Association of Surinamese Manufacturers ASYCUDA Automatic System for Customs Data CARICOM

Caribbean Community

CCF

Country Cooperation Framework

COVAB Institution for Centralized Training of Nursing and Practitioners of Related Professions CPI

Corruption Perception Index

CSME

Caricom Single Market and Economy

DPS

Domestic Private Sector

EC

European Commission

ECG

Economic Commodity Group

ECLAC

Economic Commission for Latin America and the Caribbean

EDF

European Development Fund

EPA

Economic Partnership Agreement

EU

European Union

EURO

European Union Currency

FDI

Foreign Direct Investment

FTBPS

Fonds Technische Bijstand Particulieren Suriname

GDP Gross Domestic Product GLO

Primary School

HAVO Senior Secondary General Ordinary HS

Harmonization System

IADB Inter-American Development Bank ICT Innovation, Communication and Technology IMF International Monetary Fund IOL Advanced Teachers Training College KKF

Chamber of Commerce and Industry

LBGO

Junior Secondary Vocation School

LOBO

Training College for Teachers of Vocational Education

MBO

Mid-Level Vocational Education

MDG

Millennium Development Goals

MERCOSUR South America Common Market

6

MOP

Multi-Annual Development Plan

MTCT

Ministry of Transport, Communication and Tourism “Macro-Economic Review of Suriname 1999-2008”

MTI

Ministry of Trade and Industry

MULO

Junior Secondary General School

NAFTA North American Free Trade Agreement NDP National Democratic Party NFPlus New Front Plus NOB National Development Bank PIF

Production Investment Fund

PLOS

Ministry of Planning and Development Cooperation

PPP

Public-Private Partnership

PTC

Poly Technical College

RAVAKSUR Council of Trade Union of Suriname SBC Suriname Business Centre SBF Suriname Business Forum SITC Standard International Trade Classification SME Small and Medium Size Enterprises SRD Suriname Dollar Currency STF Suriname Tourism Foundation STTC Suriname Tourism Training Centre TFC

Technical Cooperation Facility

UNDAF

United Nations Development Framework

UNDP

United Nations Development Programme

USD

United States Dollar Currency

VFR

Visitors, Families and Relatives

VMO

Pre-University Education

VSB Suriname Trade and Industry Association WB

World Bank

WTO

World Trade Organization


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1. Introduction 1.1.

The Working Methodology

The present study was commissioned by the EC project in Suriname entitled: “Public Private Partnership – Support to the Domestic Private Sector – Suriname Business Forum (SBF)”. The aim is to review the performance indicators of Suriname for the period 1999-2008 and is coherent with the main objectives of the EC-SBF-PPP Project, which are: to develop a competitive Domestic Private Sector in Suriname that can contribute to a sustainable development; and to facilitate the gradual integration of Suriname into the regional and world economy. In accordance with the terms of reference, the analysis incorporates the latest economic and social issues currently in Suriname and contributes to update the Diagnosis Report produced in 2001. This study reviews also the country’s strategy and the profiles of the main economic sectors. This study contributes to identify issues and platforms for discussions on regional and global trade; to define investment priorities for FDI1 and domestic investment; and to build up a socio-economic profile of the DPS, also reviews the results of other previous socio-economic studies; provides policy recommendations to SBF based on the outcome of the socio-economic findings; and analyses in which products/sub-sectors Suriname has a comparative advantage. Outcomes as offers a macro-economic real vision of the weaknesses, strengths and priorities of the situation based in the interviews held and in the existing statistical data; and supports the SBF/SBC implementation of the EC-SBF-PPP Project for strengthening the public-private sectors dialogue and the reinforcement of the DPS.

1.2

Working Methodology

This macro-economic review has followed different phases. First, to analyze the general socio-economic information about Suriname and to prepare an inception report with the working methodology to be used. Second, to gather statistical data, monographic papers and other information and documentation needed for this analysis. Third, during the fieldwork 40 meetings were held; and finally, all the information collected was again analyzed in detail at the moment of writing this document. The meetings held in Paramaribo were from 16th August to 16th September 2008 and were structured in 6 blocks of institutions in order to have a global and a multi-sectoral view of the macro-economic situation of the country (see in annexes 4 and 5 the list of contacts and weekly working methodology). 1

8

FDI: Foreign Direct Investment


- Interviews i) From the public sector • The Ministry of Trade and Industry • The Ministry of Finance • The Ministry of Planning & Development Cooperation • The National Planning Office • The Central Bank of Suriname • The National Development Bank • The General Bureau of Statistics • The Ministry of Agriculture • The Suriname Tourism Foundation ii) From the private sector • The Chamber of Commerce and Industry (KKF) • The Suriname Trade and Industry Association (VSB) • The Manufactures Association of Suriname (ASFA) iii) From the Trade Unions • The Labor Unions Association (RAVAKSUR) iv) From the NGO • The Women’s Business Group (WBG) v) From the Academy • The University of Suriname (ADEK) vi) From the donors and International Organizations • The European Commission Delegation in Suriname • The Embassy of Netherlands • The United Nations Development Programme • The Inter-American Development Bank After the systematization process of the information obtained from the documents read and meetings held, the main previous conclusions and recommendations were submitted in an open conference held in Paramaribo with the SBF members and the institutions involved in the public and private dialogue. - Data gathering This macro-economic review has used monthly official statistical data produced by the General Bureau of Statistics, although other sources on public and private information have also been considered, like: the Central Bank, the Ministry of Planning and the National Planning Office, the Ministry of Finance, and the Suriname Tourism Foundation.


9

The General Bureau of Statistics has published statistics from 1947 and uses the Harmonization System (HS) in which the information is classified in 22 sectors. For the purpose of this study, the following ABS statistical books have been consulted2: • Statistical Yearbooks, 2003, 2004, 2005 and 2006 • Handelsstatistieken (Trade Statistics) 1996-2001 and 2001-2006 • Selected Economic Statistics of Large Enterprises 2001-2006 • Statistics on Wages and Prices in the Construction Industry • Statistical Papers nº5 and nº6 • Algemene Bedrijventelling in Suriname (General Establishment Censuses) • Selected Gender Statistics of Suriname, 2007 • Suriname Basic Indicators, 2008 The first Statistical Yearbook published with the new statistics system registration is from 2004 and includes information from 2003 and from previous years. ABS was collecting the statistical information of 2003 from several different sources due to the fire of the ABS building in 2003, which destroyed the previous statistical information3. Every November, the ABS publishes the Statistical Yearbook. The last one was published in November 2007 and contains the statistical information of 2006. These Statistical Yearbooks include statistics in population, household surveys, social and cultural statistics, traffic and transport statistics. But also, enterprises and trade statistics, national accounts statistics and consumer price index. The Yearbooks comprise also data on employment, GDP, inflation, trade, labor market and other social statistics and sectoral data, like statistics on transport and traffic. The statistical information on other sectors, like energy, water, and telecommunication, is not unified but dispersed in diverse sources. The Handelsstatistieken books contain specific trade information. The ABS has published two of these books: the first one covers the period from 1996 to 2001 and the second one from 2001 to 2006. The Selected Economic Statistics of Large Enterprises, Annual and Quarterly Figures, shows statistical information of period 2001-2006, on turnover, cost of employment and labor and it was published in April 2008. The Statistics on Wages and Prices in the Construction Industry offers information about the hourly wage per occupation; the prices of construction materials, electrical and waterworks installation materials; and the official exchange rates. Statistical Papers nº5 and nº6 contain census information about the population of Suriname, in 2 All this information is accessible to public and can be bought at the ABS Public Relations Information Office. 3 Nevertheless, a copy of the statistical information was available at the National Archives of Suriname. Thanks to that, a big part of the statistical information could be recovered.

10


accordance with their religions and cultural origins and other miscellaneous information. The Algemene Bedrijventelling in Suriname has information on business establishment’s censuses, the number of persons employed and the number of employees. The Selected Gender Statistics of Suriname 2007 has statistical data on education, population and health, employment, crime and public services. Finally, the Suriname Basic Indicators, 2008 has information on economic, financial, monetary and social indicators. In addition, the ABS publishes statistics sheets on the evolution of the inflation and GDP figures from 2001. The Central Bank has provided for this study statistics on the monetary and financial indicators, like the exchange rate or the monetary base (MI, M2 and M3) data. The Ministry of Finance publishes information on taxation. The National Planning Office conducts projection models on the evolution of the economic indicators with the official information submitted by the ABS. . The macro-economic research section of the NPO is also in charge of preparing the yearly Capital Investment Plan and the five years Multi-Annual Development Plan. Finally, many international organizations present in Suriname have made in the last decade several social and economic analyses on Suriname and they have published general and sectorial statistical data. These were the main sources used to prepare this review, although the existing information collected seems abundant to make this analysis, in reality Suriname system of collecting, analyzing and disseminating information is not efficient.


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2. National policies for the social and economic development 2.1.

THE DIAGNOS REPORT: MAIN CONSTRAINtS AND RECOMMENDATIONS

The Diagnose study was prepared in August 2001 with the financial support of the EC and it was completed in 2003 by a technical assistance of NEI/ECORYS, considering the Suriname Business Forum National Strategy produced at the time. The outcome of the NEI/ECROYS mission to Suriname was essentially the project activities mentioned in the SBF Financing Agreement. The guidelines of this document were integrated in the EC financial proposal and into the current EC project for the privatepublic partnership-support to the DPS-SBF. The document is just a proxy of the economic situation made in a period in which the economy of Suriname was passing through difficult moments with deteriorated macro-economic indicators until the Government took some measures for the stabilization of the economy. Many of the recommendations of the Diagnose report have been implemented a few years ago. The merit of this document is to be the start point of mentioning the main problems of the economy at that moment and to give some streamlines about how to solve them in the future. In the elaboration of this document many relevant people from the public and private sectors of Suriname were involved. The document establishes the strategy for strengthening the power and influence of the private sector in the economy through the analysis of seven main topics. In each of these topics this document mentions some short and long run missions, as well as some policies and recommendations for the future. The seven topics treated were the following: • Macro-economic policy • Legal and justice sector • Enterprise financing • Business development services • Administration and institutions • Tax system and other incentives • Infrastructure and utilities.

12


(i) Macro-economic policy, the monetary and fiscal policies, the policy and planning, the liberalization and privatization, the social and labor policies and the regional integration were reviewed. The document considers that the monetary policy should focus on sustained exchange rate stability and recommends adopting additional market oriented instruments, to maintain international reserves at an appropriate level and to liberalize the foreign exchange rate. The Report considers that the fiscal finances have been characterized, among other things, by excessive weight of salaries with low wages and shortage of professional civil servants. The policy should be: improving qualification and eliminate overstaffing. The recommendation is to reduce the fiscal deficit, and prepare a public sector reform. The document considers that the process of policy and planning is unclear and recommends organizing the planning process according to the Central Planning Act (1973) and assessing the need for adaptation. With respect to the liberalization and privatization, Diagnose considers that the public sector is overextended and State-enterprises are inefficient. The policy has to be to formulate an overall privatization policy. It recommends to prepare a State-enterprises’ privatization plan and to eliminate the State monopolies. In relation with the social and labor policies, it notices that the social and labor legislation has not yet implemented and considers that the policy should be to adopt a new social security system and its recommendation is to introduce the necessary social security measures. In the regional integration, the Diagnose report observes that insufficient efforts have been made to prepare the economy for globalization and regional integration. The policy has to be to continue with the negotiations of the regional and bilateral agreements and the recommendation is to set up the “National Negotiating Machinery” for trade negotiations. (ii) The legal and justice sector, the Diagnose report analyses the company law and registration, the general regulatory framework, the free movement of persons, the land law, the law application and the judiciary. With respect to the company law and registration, the document considers that the establishment of a company is subjected to inappropriate obligations. The policy should be to discuss and adopt a new Companies’ Act and make innovations in the Register of Commerce. The main recommendation is to define new procedures for company registration. In relation with the general regulatory framework, the main aspect is that many commercial laws are outdated. The policy should be to prepare new legislation in accordance with the WTO agreements. The recommendation suggested is to adopt a new legislation in several issues. “Macro-Economic Review of Suriname 1999-2008”

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The visa and other legal requirements to foreign citizens hamper the free movement of persons. New legislation to ensure free movement of persons is needed. The document recommends abolishing the visa requirements for citizens coming from Europe, USA and Canada. The labor law is rigid in respect to strikes and workers dismiss regulation. The document believes that is necessary to introduce labor law improvements in accordance with CARICOM law. The land law conflicts are an obstacle for the land security. The Diagnose report observes that an efficient system to ensure registration of land titles has to be implemented. The recommendation is to adopt legislation on Aliens Landhold and creates a new legislation in land titles. In the law application, considers that there is corruption and lack of independence in the judiciary system. The policy has to adapt an anti-corruption legislation; and also has to take measures to ensure independence and transparency in the justice system. The judiciary system lacks of important jurisdictions. A comprehensive reform of the judiciary system is needed. In this sense, the Diagnose report believes that the Arbitration Institute Foundation has to be revitalized. (iii) In the enterprise financing, Diagnose analyses the financial sector, the regulatory framework, the corporate finance and the foreign exchange. It believes that the financial sector is underdeveloped with only a few banks. The policy should foster competition in the sector with new laws on banking. The proposed recommendation is to stimulate competition with the entry of new banks and new financial institutions. The document considers that the regulatory framework of the financial system is very old and obsolete. The policy should be to adopt a new regulatory framework. The recommendation is to revise the legal and regulatory framework of the financial sector, looking at the CARICOM rules. The corporate finance lacks important financial instruments. An action plan should be elaborated. The suggested recommendation of this document is to promote new instruments and financial services. The foreign exchange regulations restrict the loans in foreign currency and the free movement of capital. The liberalization of the capital flows is needed. It recommends adjusting foreign exchange laws and regulations and liberalizing capital flows.

14


(iv) In the business development services, place attention in the Government support and the private sectors organizations. With respect to the Government support, considers that the public institutions providing services to foster business development are not providing the proper attitude. The Government should pursue policies accordance with the best practices. The recommendation is that the Government should support the creation of the Business Centre. The private sector organizations have not managed to cooperate in the provision of support services to their constituency. Private sector should be more pro-active and help their members in having access to the international Business Development Services and other mechanisms. (v) In administration and institutions the report focuses the analysis in trade, authorizations, investment promotion, administrative procedures, organic structure, interface with private sector and private sector organizations. Diagnose assesestrade and customs procedures and regards them as obsolete. A high level Committee should set up to prepare an action plan to strength the customs capacity, and to be sure that the appropriate software (ASYCUDA) is installed and the customs staffs are trained. The document considers that some authorizations, permits and licenses are given in error, in part due to the confusing procedures. The policy should be to make simpler these procedures, and recommends to review the licensing requirements and to improve procedures. As far as the investment promotion Diagnose observes that is hampered by administrative chaos. Government´s role in the investment and trade promotion needs to be defined. They suggest organizing an one-stop shop to provide services to investors. Administrative procedures are applied with many arbitrary applications. The objective has to be to simplify the procedures and modernize the administration and establish electronic exchanges with the private sector. The organic structure of the public administration doesn´t corresponds with the role that the State should play. It is suggested to redefine the role of the State and implement a new, slim, efficient Government structure. Interface with private sector. The document thinks that there is an uneasy dialogue between the private sector and the Government. The most important policy is to institutionalize this mutual dialogue, and recommends establishing a central body that represents the private sector. “Macro-Economic Review of Suriname 1999-2008”

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The document points out that the private sector organizations, which defend the interests of the private sector, are weak and have difficulties in working together. The main policy should be that these institutions mobilize funding for the capacity building of private sector organizations. (vi) In tax system and other incentives, Diagnose analyses the tax system, the procedures, the tax incentives and the labor taxation. It considers that there is a bad negative tax system perception and responds mostly to the Government needs of collecting money. The policy should be to simplify the tax system, and suggest revising the tax reports regulations and making them simpler. Procedures for tax filing and for customs are not user-friendly. The goal should be to simplify and rationalize the administrative tax filing procedures and costumes clearing. Tax incentives for investments are geared mostly towards new investors. A better investment climate should be improved. The recommendation is to enact a new Investment Act. Labor taxation is discouraging and discriminatory. Distortions in labor taxation should be eliminated. This document recommends the elimination of the distortions and the increase of transparency for fiscal incentives. (vii) In infrastructure and utilities, the report talks about the overall policy, the regulation framework and the private participation in infrastructure. The overall policy has failed to maintain and to improve the infrastructure of Suriname. The Government´s role should be strengthen in infrastructure planning, in policy formulation and in investment promotion. The present regulatory framework allows inefficiencies. A modern regulatory framework should be set up. The document considers that the private participation in infrastructures is needed, because the Statecompanies provide poor services. Public and private sectors should work together in reviewing the legislation and in defining a strategy for promoting the private participation in improving the infrastructures. In chapter 11 of this study these seven key subjects with respect to the diagnostics, policies and recommendations made in the Diagnose report, are review to contrast with the current situation.

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2.2.

THE SBF: NATIONAL STRATEGY FOR THE DEVELOPMENT OF THE DOMESTIC PRIVATE SECTOR

The National Strategy for the development of the Domestic Private Sector was prepared by the Suriname Business Forum, following its mandate, with the objective to encourage sustainable development of the private sector taking into consideration the main priorities of the Diagnose analysis. This National Strategy is an in-dept analysis of the possibilities, challenges and bottlenecks with regard to the functioning of the Suriname business community. This National Strategy is a point of departure of choosing priorities for the Diagnose report that were included in the plan of action to be taken with the support of the international cooperation, and the Public-Private Partnership Project of the European Union. The strategy goal of this National Strategy is based in a business and supporting goals, which means: the “creation of a climate that is conductive to business (business goal)”; and “a culture of involvement among policymakers; willingness to undergo and carry through changes and a general awareness, to use the highest standards of quality for service to the business community (supporting goal)”. The business goal is composed by the following six sub-goals: 1. Generally strengthening competitiveness by improving the environment of the business community and mineralizing their costs and expenses. For achieving this sub-goal, the SBF considers necessary, between other things, to identify the threats and opportunities of the business community; to comply with the international obligations, and to contribute to the formulation of a Government policy more balanced with the regional development. 2. Raised the level of direct foreign investment. For accomplishing with this sub-goal, the SBF considers necessary to attract more foreign investments, as a way to encourage and to stimulate the local Surinamese business community. 3. Strengthen the performance and competitiveness of individual enterprises, particularly local enterprises. For carrying out the sub-goal, the SBF will list the existing and future auxiliary services among individual eligible enterprises; and will encourage the development of a variety of auxiliary services. 4. Create a climate and a programme of supporting services to ensure a dynamic and growing sector of small enterprises. For achieving this sub-goal, the SBF considers necessary, between other things, to diminish the financial barriers, to increase the liberalization of the permits system, and to stimulate the development of the human resources within the small enterprises. 5. Actively encourage the growth of the part of the business community that generates foreign currency. For doing this, the SBF proposes, between other aspects, to stimulate the exports, to start up the process of industrialization, and to support the Integrated Tourism Development Programme. “Macro-Economic Review of Suriname 1999-2008”

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6. Encourage legislation favorable to the business community. That entails to select a number of laws to be reformed, as a priority. The supporting goal is composed by the following three sub-goals: 7. Strengthen and expand the involvement of policy makers during the implementation of the strategy. The goal is to involve the policy makers at the highest level in this strategy, with the intention of increasing the mutual trust and understanding. 8. Encourage changes in the ways of thinking and acting among Government, business community and business organizations. The intention of the SBF is to engage the stakeholders in drafting annual plans, in implementing action plans, in developing a good code of conduct, and in encouraging patterns of production. 9. The individual actors must adhere to the highest standards of quality when servicing the business community. That entails to have transparent processes and procedures, and to offer professional and quality services to the business community at reasonable fees.

2.3.

THE MULTI-ANNUAL DEVELOPMENT PLANS

By law, the Government has to prepare an Annual National Budget Plan that has to be submitted and approved by the Parliament. In addition, each five years, the Government has to prepare a Multi-Annual Development Plan (MOP). The last Multi-Annual Development Plans approved were for periods 2001-2005 and 2006-2011. These MOP are prepared by the Government on the basis of an extensive consultation process, in which are consulted a wide range of state and non-state actors. These MOP are very important because they establish the key guidelines of the national development strategies and policies and are very much taken into consideration by the international donors at the moment to determine their cooperation projects for Suriname.

2.3.1.

The Multi-Annual Development Plan 2001-2005

In the MOP 2001-2005, the key objectives of the Government´s national development strategy were growth and poverty reduction. This MOP was based in the following axes: • Strengthening the principles of good governance and democracy, through the entire Government • Macro-economic stability, public sector reform and rationalization of the State enterprises • Reform of social sector policies and programs (education, health) and ensuring that growth is inclusive with adequate protection of the poor •

Creating a conductive environment for private sector development to generate growth and employment

• Ensuring sustainable development, including establishing an explicit link between economy and environment, stimulating environmental cautions mining, agricultural and tourism development. In addition, the regional integration is considered as a very important issue to guaranty the success of this strategy. 18


2.3.2. The Multi-Annual Development Plan 2006-2011 The Government national development strategy is set up in the MOP of 2006-2011 taking into consideration the experiences, results and lessons learned in the previous MOP 2001-2005. The MOP 2006-2011 uses the Millennium Development Goals (MDG’s) as a guideline for determining, developing and evaluating its development strategies and programs and establishes the following four pillars: • Governance, including democracy, constitutional state and security • Social and human development • Economic development • Fair distribution. Within the three first pillars (governance, social and human development and economic development) are included 9 policy areas and 33 secondary policy areas. In addition, the MOP 2006-2011 gives the highest priority to the crosscutting issues of environment, gender and youth. Each policy area and secondary policy areas are provided with a matrix of activities and indicators. In the Governance pillar, the policy areas are related with the democracy, constitutional state and security; public sector reform; and international framework and foreign policy. Within the democracy, constitutional state and security, the goal is to maintain the law and public order, the legal protection and security; but also to strengthen the judiciary system and to reform the legislation. Other measures are related with the legal protection of human rights; the policy on youth and domestic violence and accommodating policy and institutional strengthening. The MOP document recognizes that the public sector has serious structural problems, like: high personnel costs; excessive number of civil servants; unstructured public administration; outdated legislation, rules and procedures; and lack of qualified professionals and good management. In accordance with this MOP, the public sector reform implies reorganization of the Government´s machinery; decentralization of the public administration; and institutional strengthening. But it means also, to strengthen the domestic private sector; to rationalize the State-owned companies; to strengthen the planning framework; and to improve the macro-economic climate. That signifies: the enhancement of the efficiency in the management of the Governmental finances; and to get a more efficient fiscal and debt policies. Another aspect of the public sector reform is to foster the decentralization of the public administration and to have a more coherent and clear international framework and foreign policy, which includes the involvement of Suriname in the regional integration process. The social and human development pillar is related with four main policy areas: poverty reduction, education and community development, health care; and social protection. The main objective of the poverty reduction is to reduce the poverty 4.4% per year and 22% by 2010 in line with the MDG. In this sense, it is important to eliminate the structural factors, which contribute to create and maintain the poverty situation. “Macro-Economic Review of Suriname 1999-2008”

19

In relation with the education and community development, the main goal of the MOP is that by 2015, all children, boys and girls, have access to high-quality education; and to adapt the educational and training system to the changing world of employment and lifelong learning. For achieving this goal, it is necessary to have universal access to education and pre-school development programs; and to restructure the education system in order to make it more effective and efficient. Other objectives are also related with the improvement of culture and sports. With respect to the health care, the main objective is to guarantee the availability, accessibility and quality of health care and to maintain the state of health of the entire population. That implies, between other things, to reach the basic health care for every citizen; to foster health institutional strengthening; to improve the accessibility and service of the health care; and to reduce the number of HIV/AIDS and malaria cases and the effects that these illnesses causes in the population. In relation with the social protection, the goal is to guarantee the basic securities to persons and households that are temporarily or structurally not able to generate their own income. In this sense, the intention of the MOP is to stimulate sustainable system aid care and financial benefits, addressed to poor, disable, children, senior and other citizens needed of social protection. Finally, the economic development pillar comprises all development policies related with the economic sectors, utilities and spatial planning. The objectives of this sustainable development strategy are to realize a doubling of the GDP per capita in 2020. At the same time, the intention is to pursue an annual real growth of the 6% of the GDP; and to get a fair distribution of prosperity. In the mineral sector, the general goal is to generate and mobilize sufficient resources to finance the development of this sector with the own strengths and to provide equal development opportunities. The intention of the MOP is to increase the national share in mineral exploitation and processing; to reduce the strong dependence of the international prices; to enhance the capacity building; to determine the right mix of tax and non-tax facilities; to foster the mineral production process inside the country; and to make that the mineral sector can contribute to the development of other productive economic sectors. In the agricultural sector, the general objective is to guarantee the national food security and food safety in such a manner that Suriname is not so import dependent. Between the big amount of agricultural goals established in this MOP, it can be mentioned the intention of strengthening the farmer´s associations; the modernization of the agricultural education; the development of the agricultural enterprises; and the improvement of quality control, statistics, technology and innovation. In the forestry and wood processing, the general goal is to increase the contribution of the forests to the national economy and to the welfare of present and future generations with due regard for the conservation of the biodiversity. Its focus is related with the strengthening of this sector and the protection of the environment. 20


In the tourism sector, the general objective is to use the heritage, creativity and physical circumstances to involve excluded parts of the population in the economy in order to increase the contribution of the tourism sector to the national economy. Among the main goals the following are considered: to strengthen legal and institutional capacity of this sector; to train human resources; and to improve tourism products and services. In the trade and industrial sectors, the general goals are to strengthen the effective participation of Suriname in regional trade and economic blocks and foster the growth of small-scale enterprise in Suriname and the diversification in more price-sensitive and more unique products that can compete better on the international market. The main purposes in trade and industry are related with the participation of Suriname in the CARICOM, EPA, WTO Free Trade agreements; but also related to strengthening the capacity of the enterprises to meet the international standards and promote the export potentials. In the transport sector the main objective is to establish order and improvement in traffic. That implies, to foster the institutional strengthening of the transport sector, the restructuring of the intra and interregional road transport and the improvement of the air transport. In the financial services, the main goal is the modernization, broadening and development of the financial sector in order to facilitate and strengthen the growth of the economy. That signifies to keep the inflation below 10% annually; to stimulate the investments of the entrepreneurs increasing the granting of credit; and to have a more stringent monetary policy. In the building and construction sector, the objective is to optimize the control on building activities and services in order to create a healthy living environment, where high-quality living and enjoyment are essential. The attention should be placed on the reinforcement of the built civil infrastructure and strengthening the institutional capacity of the Ministry of Public Works. Other objectives in this economic pillar are: optimal energy supply for sustainable socio-economic development by meeting the demand for energy by 2010; pursue an adequate level of water supply and to introduce water as a significant new economic sector; to provide the country with adequate and high-quality ICT infrastructure; to create the conditions to use the natural resource land efficiently; and to foster the growth and sustainable development of the regions at the interior of the country. The MOP 2006-2011 programme foresees to be financed, as follows: 18% of the programme by the Government´s owns resources; 34% by the business community; and the remaining 48% from the bilateral cooperation and other international investments. This development strategy is based in the principles of human right approach; democratic constitutional state; and economic prosperity. But also is based in fair distribution; integrated and sustainable “Macro-Economic Review of Suriname 1999-2008”

21

development and gender equality. Additionally, assumes the Millennium Development Goals; the constitutional state and security; and the coherence of policy and the partnerships. The policy priorities are focused in the guaranteed rights and basic social security accessible to all citizens; participation of citizens in the decentralization process; improvement of productivity; sustainable exploration of new economic production sectors; and increase of the national revenue. The Government considers that the success of this strategy depends on a series of basic conditions, like: the full human development of every person; the guaranty of having sufficient energy supply and affordable and clean drinking water; a modern physical infrastructure; and less quantity and higher quality of public administration services. As a conclusion, the main elements of the MOP 2006-2011 are: • Sustainable economic growth • Public Sector reform •

Foster the privatization process as a way to attract private investments and to rationalize the economy

• Pursue an integrated and sustainable agricultural system • Strengthen the development of the forestry sector, but regarding always the conservation of the environment and the biodiversity •

Improve the tourism within a sustainable use of the culture, indigenous people and natural resources

• Eliminate the structural factors that cause and maintain the poverty situation • Reduce the physical infrastructures barriers as a basic condition for the development • Reform the educational system becoming more effective, efficient and with competitive international level • Promote the medical and general health care, especially the preventive and primary and secondary curative health care • Multilateral policy based in the promotion of the implementation of the development agenda • Eliminate the unequal treatments between men and women • Give special attention to the youth participation in the development process • Solve the bottlenecks of the housing sector.

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3. International cooperation programs 3.1.

EUROPEAN UNION

The EU/EC cooperation in Suriname follows the central objectives of the Cotonou agreement, based in the poverty reduction, sustainable development and integration of the ACP countries in the world economy. Special attention is given to promote local ownership of economic and social reforms and to integrate the private sector and civil society actors in the development process. More specifically, the EC strategy is based in the national policy agenda of the Government of Suriname, documented in the Multi-Annual Development Plans for 2001-2005 and 2006-2011.

3.1.1.

The Country Strategy Papers 2001-2007

The EC Country Strategy for Suriname for 2001-2007 is derived from sources such as: the national policy agenda, marked in the MOP 2001-2005, the views expressed by the civil society groups, the main challenges of the economic and social development of the country, and from the programs of other development cooperation donors. The general consensus was to reinforce the environment need in order to create a private sector-lead growth for improving the social conditions. This environment could enhance the growth and competitiveness of the private sector in the regional and international markets, and could contribute to poverty reduction. In line with those priorities in the 9th EDF, the EC overall objective for Suriname was to accelerate an equitable growth and poverty reduction by facilitating trade and regional cooperation and integration. The Country Strategy Paper for period 2001-2007, consequently is based in the transport sector, as a focal area; and in the reinforcement and capacity building of economic actors, as non-focal area. The National Indicative Programme concerns the national financial resources of envelope A and partially of envelope B. In other works, as it is said in the NIP: “conform to point b of article1 of the Annex IV of the Cotonou Agreement, the EC proceeded on 28 March 2001 in the name of the Community, the notification of the indicative amounts allocated to Suriname for 11 Mio EUR for envelope A, to be used for the financing of sectoral policies, programmes and projects supporting the fields of community help in the frame of the present program. 7 Mio EUR made available under envelope B from Sysmin funds will also be used in the context of the focal area. Finally, 1.1 Mio EUR for envelop B, meant to cover the unpredicted needs such as emergency help, contributions to alleviating the debt as well as to limit the negative effects of unstable export revenues”.


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The focal and non-focal areas of the National Indicative Programme remain as follows: Focal area: transport sector development. The intervention objective of this focal area is to improve the competitiveness of the export sector improving the efficiency of the transport sector, and more specifically to support the strengthening of the harbor facilities of Paramaribo. The intention of the EC programme is to rehabilitate the port of Paramaribo and maintain operational the port facilities, because of its key role in the country´s trade flows; but also, to support the Port Authority reforms and other reforms related with the customs and structural rehabilitation works. The main activities are: to assist in the adoption of a national transport policy; to provide assistance to strengthen the institutional capacity for implementing the transport policy; and to assist in the implementation of the rehabilitation and upgrading of the Port of Paramaribo. Non-focal area: reinforcement and capacity building of economic actors. The intervention objective of this non-focal area of the programme is to increase trade through strengthening the capacity of relevant State and non-State actors. That implies, to improve the public and private and sector responsiveness and to support policy studies in regional integration; to support the privatization process; to support the programme planning and monitoring of the Ministry of PLOS and related Ministries. The main activities are: assistance to promote businesses participation to regional markets; identify the impediments to trade with the neighbor countries; prepare policy studies on regional integration; to improve public policies; to assist the Ministry of Transport, Communication and Tourism (TCT) and the Ministry of Finance; to support the Ministry of PLOS to strengthen its capacity; and to support the Ministry of PLOS and Ministries related in improving the planning and monitoring capacity of the MOP. Within the EC Country Strategy 2001-2007, the EC has formulated the “SBF Public Private Partnership, Support to the Domestic Private Sector Project”. This macro-economic review of Suriname is part of a series of studies to be executed by the Surname Business Development Center, the executive arm of the SBF. The SBF Public Private Partnership. Support to the Domestic Private Sector In accordance with the Financial Proposal document, the “Public Private Partnership, Support to the Domestic Private Sector Project” was foreseen, initially as a Project of 36 months of duration and with an EC financial support of € 2,400,000. The overall Project objective is the creation of a competitive DPS in Suriname that can contribute to the reduction of poverty within a framework of sustainable development, and facilitate the gradual integration of Suriname into the regional and world economy. 24


The purpose of this Project is the creation of an enabling environment for the development of a Domestic Private Sector providing competitive and high quality goods and services. It is expected that the right prevailing conditions will generate economic growth and contribute to the reduction of poverty in Suriname and the Region. The Financial Proposal signed by the EC and the Government of Suriname in 2005, stated that the Project activities can only start once the SBF is established by the Government of Suriname as a legal entity. This happened in October of 2006. It is expected that the project will create the necessary enabling environment in which the results can be accomplished. These expected results have been set up as follows: R.1. SBF as an operational platform for continuous dialogue R.2. SBC to co-ordinate and deliver business and trade promotion support services R.3. The operational environment for the DPS in Suriname will be improved R.4. Public sector key officials have the skills mix to create a DPS enabling environment

3.1.2.

The Country Strategy Papers 2008-2013

The overall objective of the 10th EDF would be to contribute to the Surinamese National Development Strategy (MOP) in achieving poverty reduction, a sustained income base and equitable access to services; as well as the EU Consensus objective of regional integration. In the EC Country Strategy 2008-2013 for Suriname, the intention is to maintain the transport sector as the focal sector for the 10th EDF based on past experiences, and complements programmes of other development partners. The EC considers that the support for the transport sector promotes regional and international integration and co-operation; and improves access to services and competitiveness of the private sector through improved transport links. The National Indicative Programme of the EC Country Strategy for 2008-2013, within the 10th EDF, will be as follows: the A envelope, is for a value of € 19.8 million. This envelope will cover long-term programmable development operations under the strategy, and in particular: € 17.5 million will be located for the transport sector and € 2.3 million for the Technical Cooperation Facility. The B envelope is for value of € 0.6 million. This envelope will cover unforeseen needs. Focal area: the transport sector. The specific objective of this focal area is to improve connectivity, flow of goods and persons within Suriname and between Suriname and neighbouring countries, and increase trade with neighbouring countries. For this field, will be established an amount of € 17.5 million for the rehabilitation of the road between Albina and Meerzorg (137 km), including supervision. IDB and France cooperation will also co-finance the construction of this road, with the EC. “Macro-Economic Review of Suriname 1999-2008”

25

Non-focal area: other programmes. The remaining € 2.3 million will be allocated, as above mentioned, to the Technical Cooperation Facility, rather than dividing them into very small projects. The funds for the TCF activities will facilitate and support the implementation of the CSP for Suriname.

3.2.

THE NETHERLANDS COOPERATION

At the moment of the independence, the Netherlands cooperation in Suriname was the equivalent to € 1.6 billion at 1975 prices. In the Treaty between both countries was established that the funds of this Treaty had to be spent before 1999. But, in fact, around the 10% of this amount has not yet been disbursed. The disbursement of all these funds has to be signed by the Ministry of Planning, as a counterpart4. When these remaining € 165 millions of the Treaty funds will be disbursed, the figures of the Netherlands cooperation in Suriname will have diminish considerably in accordance with the following sentence of the Multi-Annual Development Plan 2006-2011: “one of the aspects in the relations with the Netherlands is to gradually reduce the development cooperation, whereby at the same time a shift in emphasis takes place to cooperation between local governments and non-governmental actors”. The Netherlands officials consider that this remaining amount could be disbursed around 2015, expending around € 25 million a year. The Government would prefer to reduce this period just before to 2010, but this seems it is a little bit ambitious objective. 40% of this amount is allocated in sector wide approach, in five sector funds: three social ones (education, health and housing); one economic (agriculture), and the last one, in justice and policy. From this percentage, € 20 millions are reserved for agriculture credit funds. It consists in credit facility in everything but rice. From this amount, € 2.4 million credit facilities is managed by the Suriname Bank. The agriculture sector comprises six components. The two most important ones are: a) the Private Sector Development; and b) Infrastructure. This second component aims to develop the roads at the West area of the country. Other minor components are related with food security, rural development and fishing. The disbursement of these loans depends on the strategies to be developed by the Government. The rest 60% of this € 165 millions, are placed in traditional projects in the following sectors: health, water, sanitation, infrastructure, sea defenses and micro-credits facilities. These micro-credits facilities have a budget of € 6 million and they will be used for enhancing the private sector. But they are at an initial stage, and only € 100,000 has been used. It will take more than a year to set off all this process. 4

26

The execution of this project has a slow rhythm, in part due to the administrative procedures and public institutions signatures and authorizations before the money is spent.


On the other hand, the Netherlands cooperation has some Investment Funds, which come from 1996, but some of them still remain. They are revolving funds. In fact the original fund (€ 11.3 millions) has been already disbursed. They have also other small funds to support the private sector, administrated by the National Development Bank. Around € 1.8 million of this amount has been completed disbursed for technical assistance to private sector (training courses and sector studies, mainly). The next commitment (€ 1.5 million) is on pipeline for a period of four years. For the future, a second phase of the Investment Funds will be considered with a foreseen budget of € 11.3 millions. € 3 millions of this amount will be assigned to guarantee funds and the rest € 8.3 millions for normal commercial loans.

3.3.

MULTINATIONAL ORGANIZATIONS COOPERATION

The Inter-American Development Bank is moving out from the public and private sector dialogue. Now, they are focusing the attention mainly in supporting, with the EC, the building-up of the road to the Guyana´s border. IADB supports the institutional capacity building of the Ministry of Trade and Industry (MTI) through his project entitled “Support to Trade-Related Capacity Building in Suriname”. The main objective of this project is strengthening the capacity of the Ministry in the management of trade in a better manner, as well as support the Ministry in its bilateral negotiations. Three are the main tasks of this project: to develop and implement an action plan for organizational reform of the Ministry; to implement an effective information and communications system at the MTI; and to strengthen the technical capacity of the MTI. This project involves also the Ministries of Justice (enhancing the Facilitating Intellectual Property office) and Agriculture. The IDB is also funding a public sector reform programme and support has been given in the past by IDB and the Netherlands to improve the management of public finances, but progress is very slow. Funds still remain available from the Inter American Development Bank (IDB) for the Public Sector Reform. The Inter American Development Bank is also in negotiating ongoing process with the Government for a loan of US$ 30 million for the implementation of the 2nd phase of the decentralization program. Presently, IDB is assisting Paramaribo to develop urban planning, and has indicated its interest with France in joining forces with the EC to fund the rehabilitation of the road between Meerzorg and Albina. For strengthening the Domestic Private Sector the IDB has two small projects in implementation: a) “Competitiveness Benchmarking for Suriname (USD 88,000)” with the goal of increasing the availability of high-quality, and updating a comparable information on key competitiveness variables in Suriname; “Macro-Economic Review of Suriname 1999-2008”

27

and b) “Strengthening the Legal and Institutional Foundation for Private Investment (USD 139,960)” with the objective to support the Government of Suriname in its efforts to prepare an amendment to the Investment Law and to support the development of an Action Plan to improve the business climate. The United Nations Development Programme (UNDP) has two main strategic documents for Suriname: the Common Country Assessment of 2006; and the UNDAF 2008-2011 (United Nations Development Framework). The purpose of this document is to be aligned with the Multi-Annual Development Plan 2006-2011. In the second Country Cooperation Framework (CCF) 2000-2007, UNDP tried to give an integrated answer to the development challenges, in three main areas: Governance, Poverty and Environment. These projects are already finished or are in the formulating phase. a) At the Democratic Governance, the governance portfolio is a major component of the programme, incorporating assistance to national priorities and positioning UNDP in support of institutional change. Projects have included parliamentary and political parties’ development, election processes, and the land rights dialogue. b) At the MDGs and poverty reduction, achievements during the period included launching the first national MDG baseline report (2005); the establishment of MDG reporting through the national MDG steering committee; implementation of a MDG awareness campaign led by the National Youth Parliament, and a review of compliance with international commitments, including the MDGs. c) Finally, in the environment sector, this portfolio represented over 48 per cent of the programme budget during the CCF period. A key achievement was UNDP support for creation of the Suriname Conservation Foundation. The Global Environment Facility financed seven projects addressing, among other things, reporting to the United Nations Convention on Biodiversity, the Framework Convention on Climate Change and the Convention to Combat Desertification; a mechanism for the sustainable financing of biodiversity; and implementation of the Stockholm Convention on Persistent Organic Pollutants. The UNDP proposed future programme will lead in two of the three UNDAF outcome areas, namely: pro-poor policy development; and good governance. In the poor policy development area, UNDP will support the definition of evidence-based pro-poor policies and strategies with advisory and technical assistance to national and local authorities in data collection, processing and analysis, towards production of regular policy monitoring documents. Also, efforts will build upon existing initiatives and focus on enhancing the capacities of Government to design and operate effective mechanisms for mineral resource management. 28


In the good governance, support will be provided on formulating a national public sector reform programme and will focus on enhancing the capacity of government and non-state actors to formulate and implement policies that ensure effective public services. UNDP will support efforts to develop effective participatory mechanisms in development policy formulation and monitoring. In conjunction with the Government, UNDP has identified a potential portfolio in excess of $ 24 million over the period. It is based on cost-sharing opportunities in the democratic governance and energy; and environment practice areas. In August 2008, the International Monetary Fund has published, a document, entitled “Suriname: 2008 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion for Suriname; and Statement by the Executive Director for Suriname”. In this document, the IMF makes an assessment of the equilibrium real exchange rate and current accounts; as well as an analysis of selected economic indicators, Central Government operations, the accounts of the banking system and the financial system, the public sector debt and external debt sustainability framework, and the recent macro-economic performance. Also, in August 2008, the IMF has published a statistical appendix with the main economic statistical information of Suriname. This appendix has 34 tables in which many economic aspects are included, like: the Gross Domestic Product from different angles; the mining sector; and the number of jobs by sector. But also, the Central Government operations, revenues and expenditures; also diverse financial and trade sectors information. This IMF analysis has also been considered in this study of the economic situation.


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4. The economic analysis: weaknesses, strengths and priorities This section analyzes the main economic weaknesses, strengths and priorities of Suriname by studying the evolution of the main economic factors in different periods, particularly in recent years and in current situations. In the elaboration of this economic analysis, the evolution of the macro-economic performance, the main economic sectors, and the trade relations are studied. Additionally, the domestic and foreign investment, the financial system, and the entrepreneurial private sector will also be studied. In all these cases, Suriname’s performance will be compared with the performance of other Latin American and Caribbean countries. The position of Suriname will also be observed with respect to the international indexes of competitiveness, transparency, economic freedom, and business practices. This study is based on the analysis of the statistical data obtained by the General Bureau of Statistics, as well as other international sources such as the Economic Commission for Latin America and the Caribbean, the World Bank, the International Monetary Fund, the World Economic Forum, International Transparency and the Heritage Foundation. This analysis will allow us, in each of the issues analyzed, to draw conclusions that will be the foundation of the recommendations for measures that could be taken in the future as a means for addressing the main problems and constraints of Suriname’s economy as observed in this analysis.

4.1.

Macro-economic PERFORMANCE

In analyzing Suriname’s macro-economic performance, the following three periods will be discussed: from 1975 to 1999; from 2000 to 2006; and from 2007 to 2008.

4.1.1.

Period 1975-1999

Period 1975 to 1999 is characterized by a general situation of macro-economic instability and budget management deficiencies. From the mid-80`s to the 90´s, the economy was suffering due to very high levels of inflation and substantial exchange rate losses. In accordance with the study made by the Inter-American Development Bank in 2001, the average fiscal deficit from 1980 to 1998 was 10.5% of the GDP. In comparison with the 1980’s, the situation was improved to a small degree in the 90´s, with some years of surpluses and fewer years of high deficits. One of the main contributors to Government performance during this period was weak budgetary management. The current mechanisms established by law to control the Government expenditures 30


did not exist during this period, and Suriname’s Government had many deficiencies in the budgetary management. These deficiencies were provoked by the fact that many times the preliminary budget figures estimated in the National Budget were unrealistic and didn’t correspond with reality; because the Government execution of the budget was made in an accommodating and permissive manner, additional difficulties arose. These deficiencies in the budgetary management contributed to the macroeconomic instability and the inefficient use of resources. All these aspects caused a serious inability to properly manage the fiscal deficit, and consequently, an accumulation of payments incurred. In the IADB opinion, the growth of the Government payment errors in that period was due to the following factors: a) insufficient cash; b) Ministries making commitments without authorization; and c) the payment of bills only when cash became available. This unfavorable tendency was improved in the middle and late 90’s, specifically in 1995-1996, thanks to the Government revenues obtained by the benefits of the alumina boom. However, between 1997 and 2000, the situation deteriorated. In 1999, the country underwent a large economic crisis when the Government failed to stimulate economic growth and the National Assembly wanted to force the resignation of the President and Vice-President of the Republic. The IADB regarded the time period 1975-1999 as a period of poor development performance with 0.7% GDP growth per year; the period was stagnant in per capital terms. The Government expenditures oscillated between 40 to 50% of the GDP and were concentrated, according with the IADB, in Government consumption of the following: current expenditures on wages, salaries, and expenditures of goods and services. The peak year was 1996 (52.6%), although in 1994, expenditures were only 29%. The IADB built a table for 1997, which shows that Suriname had the greatest total Government expenditure as a percentage of the GDP (45.5%) of the 24 Latin America and Caribbean countries studied. - Situation with respect to other Latin America and Caribbean countries Between 1990 and 1998, tax average revenue was 19.5% of the GDP and was above the average for Latin American countries. Although in 1993 the tax revenues only represented the 8% of the GDP, in 1995, tax revenue accounted for 25.4% of the GDP due to the recovery of the international alumina prices. In period 1996 to 20005, six taxations captured 95% of the total 19 Government taxes. The corporate and individual income taxes represented 54.8% of total taxes in 1996-1997 and 43.6% in 1998-2000. The taxes on international trade were 33.9% of the total in 1996-1997 and only 27.4% in 1998-2000. Nevertheless, the consumption taxes were much lower in 1996-1997 (7.4 %) than in 1998-2000 (22.6%). This significant amount of taxes also had an effect on the reduction of private consumption and private investment initiatives during this period. 5 In this IADB study the data for 2000 are provisional ones.


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4.1.2.

Period 2000-2006

The economic crisis at the end of 90´s forced the new Government to restructure the economy since the year 2000. Several measures were taken in the fields of public finances, debt management, budget management and exchange market. The main measures taken were6: • Fiscal and monetary stabilization measures • Exchange rate unification • The creation of a modern system of reserve requirements • The removal of foreign exchange surrender requirements for non-mining exporters • The draft of the new trade law • The introduction of the public debt ceilings and enforcement of the ceiling on Central Bank liquidity credits to Government • The reduction of price controls and trade restrictions • The formulation of the National Strategy for Private Sector Development. In the field of public finances, the main measures were to end the financing of the fiscal deficit, to control public expenditures and to improve fiscal revenues. With respect to debt management, the main measures were to make a debt inventory, to create a fiscal debt law, to open a public debt office and to restructure the external and internal fiscal debt. In relation to budget management, the main measures were to create a new currency, to rule the Central Bank’s independency and to impose to the banks the need of having reserves in local and foreign currency. Finally, in the exchange markets’ field, measures were taken to drop down the percentage of foreign currency return for export revenue and to unify and stabilize the exchange rate. As a consequence of all these measures, the main policy of Suriname since then has been to stabilize the economy. For this reason, during the period 2000-2006, the Suriname economy has grown consistently and has displayed higher rates of stability and performance than in the past decades, although it is still vulnerable to international price fluctuations. - Situation with respect to other Latin American and Caribbean countries The following section focuses on the increasing and stable GDP growth during the decade. A recent study made by the Economic Commission for Latin America and the Caribbean shows that the first years of this period marked increased growth, going from 4% in terms of the GDP to 7.7% in 2004. The rise of international prices in the mining sector in the years 2003 and 2004 had an important effect on the growth of the GDP. The only exception to this growing tendency was year 2002. After 2004, the GDP growth decreased slightly to 5.6%, and from that year on, the country showed stable growth in the last three years (around 5% in terms of the GDP annual variation rate). 6

32

For more detailed information on these measures, see “Review of the ‘Investur’ initiative to strengthen Suriname´s investment climate”, written by the Foreign Investment Advisory Service, in May 2003.


had an important effect on the growth of the GDP. The only exception to this growing tendency was year 2002. After 2004, the GDP growth decreased slightly to 5.6%, and from that year on, the country showed stable growth in the last three years (around 5% in terms of the GDP annual variation rate).

Graphic 1 shows the growth evolution in the last decade. This graphic also includes the crisis year 1999, Graphic 1 shows the growth evolution in the last decade. This graphic also includes the crisis in which the growth was negative (-2.4%) in terms of the GDP(-2.4%) annual in variation This situation year 1999,figure in which the growth figure was negative terms rate. of the GDP annual variation rate. allows us the90´s statetoofitsthe economy the end of the allows us to compare theThis statesituation of the economy at to thecompare end of the current state attoday. 90´s to its current state today. Graphic 1. GDP Variation Years 1999 -2007

10

7,7

8

6,1

5,9

6

5,8

5,6

5,3

4

4

1,9

2

0

"99

"00

"01

"02

"03

"04

"05

"06

"07

Years "99 -"07 -2

-2,4 -4

GDP Variation Years 1999 -2007

Source: ECLAC. Latin America and the Caribbean Economic Report 2008

Inflation rates are now much lower than in past decades. Graphic 2 illustrates the evolution of inflation rates since 1998. It is important to observe how the inflation rates were at the end of the 90´s in comparison to the present situation. In 1998, the inflation rate was 18.7%, and in 1999, it grew to the level of 98.8% asrates a consequence oflower economic that year onward, the inflation Inflation are now much than inand pastpolitical decades.crisis. GraphicFrom 2 illustrates the evolution of inflation rates since 1998. It is important to observe how the inflation rates were at the end of

started tothedecrease substantially, in 2001,In the inflation was rate still was highly significant 90´s in comparison to thealthough present situation. 1998, the inflation 18.7%, and in at 38.5%. Since

1999, it grew to the level of 98.8% as a consequence of economic and political crisis. From that year onward, the inflation started to decrease substantially, although in 2001, the inflation was still highly significantrate at 38.5%. 2002, the inflation continuously diminished to 9.5% in 2005. The only exception

was in

2003, theSince year2002, in which inflation increased diminished comparedto to thein previous yearexception (22.7%). the inflation rate continuously 9.5% 2005. The only wasIn year 2006, in 2003, the year in which inflation increased compared to the previous year (22.7%). In year inflation rose again (11.3%). 2006, inflation rose again (11.3%).

Graphic 2. Yearly Inflation % 120

100

98,8

80

60

59,3

40

38,5

20

22,7

18,7

16,6

15,5 10,7

11,3

9,5

6,4

0 "98

"99

"00

"01

"02

"03

"04

"05

"06

"07

"08

Years "98 - "08

Source: ECLAC. Latin America and the Caribbean Economic Report 2008. Yearly Inflation Figures in red color are estimated %

In Maastricht, the European Union established a criterion that a country shouldn’t have a public debt above 60% of its GDP; Suriname followed this criterion throughout the whole decade, limiting the public“Macro-Economic debt to a maximum Review of 60% of (45% in1999-2008” foreign debt and 15% in ofGDP Suriname domestic debt). As a matter of fact, since 2000, Suriname’s public debt was stable and always below 60% of GDP, in accordance with the Maastricht criterion.

33

In Maastricht, the European Union established a criterion that a country shouldn’t have a public debt above 60% of its GDP; Suriname followed this criterion throughout the whole decade, limiting the public debt to a maximum of 60% of GDP (45% in foreign debt and 15% in domestic debt). As a matter of fact, since 2000, Suriname’s public debt was stable and always below 60% of GDP, in accordance with the Maastricht criterion. Graphic 3 shows the figures of the gross external debt, provided by the ECLAC study mentioned before. In accordance with this study, the gross external debt has been continuously diminishing from the 38% of the GDP in 2000 to 22% in 2006. The only exception was in 2001 when the gross external debt increased to 53% of the GDP. Although the weight of the gross external debt with respect to the GDP has decreased during the last decade, according to the ECLAC study, the total gross external debt, in money terms, increased from USD 291 million in 2000 to USD 389 million in 2006. However, the situation improved in 2007 with a large reduction of the total gross external debt to USD 296 million; this reduction happened as a consequence of the measures taken by the Government for the stabilization of the macro-economic situation. Graphic 3. Public Debt (% OF GDP) 60% 53%

50%

40%

39%

38%

34% 30%

30% 26% 22%

20%

16% 10%

0% "00

"01

"02

"03

"04

"05

"06

"07

Years "99 - "07 PUBLIC DEBT (% OF GDP)

Source: ECLAC. Latin America and the Caribbean Economic Report 2008.

The current macroeconomic situation is stable; however, the real source of growth is due to external factors and the rise of commodity prices, mainly alumina, oil and gold, rather than The current macro-economic stable; however, real source of growth due to external from an increase insituation productiveis activities, as it will the be mentioned in detail when is discussing economic in a laterprices, section.mainly For thisalumina, reason, itoil is and important note that current factors and the rise ofsectors commodity gold,torather thanthefrom an increase macro-economy stability depends mostly on the evolution of international prices and other factors on internal factors. in detail when discussing economic sectors in a later in productiveexternal activities, asthan it will be mentioned

section. For 4.1.3. this reason, is important to note that the current macro-economy stability depends Period it 2007-2008 mostly on the evolution of international prices and other external factors than on internal factors. The current situation confirms the stable tendency of growth over the last three years, reaching the level of 5.3% of the GDP in 2007.

34

Years 2007-2008 show important fluctuations in inflation, again reaching two digits. Although inflation has been reduced in comparison with past decades, even down to 6.4% in 2007, inflation rates are still high, and the rise of the prices of imported commodities has recently pushed up the inflation rate again. The current estimations project that the inflation rate in 2008 will again reach two digits (16.6%) at the end of the year, implying higher levels than in 2002. “Macro-Economic Review of Suriname 1999-2008” This current growth of the inflation index is mostly due to imported inflation, particularly

4.1.3. Period 2007-2008 The current situation confirms the stable tendency of growth over the last three years, reaching the level of 5.3% of the GDP in 2007. Years 2007-2008 show important fluctuations in inflation, again reaching two digits. Although inflation has been reduced in comparison with past decades, even down to 6.4% in 2007, inflation rates are still high, and the rise of the prices of imported commodities has recently pushed up the inflation rate again. The current estimations project that the inflation rate in 2008 will again reach two digits (16.6%) at the end of the year, implying higher levels than in 2002. This current growth of the inflation index is mostly due to imported inflation, particularly increases in oil and food prices. In fact, this situation concerns financial institutions and the financial market. National debt has decreased continuously to 16% of the GDP in 2007. The situation of the National Debt is much better now than in 2000. Suriname cancelled/settled its debt with some countries (Spain, for example). However, Suriname still has an external debt with the United States of America (for agriculture delivery products) and with Brazil, (originating in the 80’s for military and industrial equipment). Suriname has made some proposals to these countries for the repayment of these debts. In 2008, the total External Debt will again rise as a consequence of some loans that the Government recently received from international donors, mainly China (around USD 200 million) for the improvement of the road infrastructure. The taxation system has been restructured. The last figures analyzed in April 2008 illustrate the following structure: a current income tax rate of 36% for local or foreign companies’ incomes obtained in Suriname if they have a permanent establishment in the country, and a personal income tax which ranges from a minimum of 8% to a maximum of 38%. The rates of the annual taxable income vary depending on whether the worker is a wage earner or a self-employed individual. Other taxes are also considered, such as taxes on property, on goods and services and on international trade and transactions. In the latter case, the customs duty rate varies from 0 to 45%. - Situation with respect to other Latin America and Caribbean countries Tables 6 and 7 show the Suriname economic performance compared to other Latin American and Caribbean countries. These countries are: Colombia, Dominican Republic, Costa Rica, Guyana, Haiti, Jamaica, Panama and Trinidad and Tobago. These countries were chosen from ECLAC figures based on their geographical and size similarities.


35

Although Suriname has experienced a period of economic stability since 2000 in comparison with the unstable situation of previous decades, the recent study made by ECLAC about the economic situation points out that the good growth performance of Suriname is still below average in comparison with the growth of many CARICOM and other Latin American countries. Table 6 compares the growth evolution of eight Latin American countries with Suriname in three different years: 2000, 2003 and 2007. With regards to Latin American countries, this table shows that Panama had a tremendous GDP growth of 11.2% in 2007, compared with 2.7% in 2000. Dominican Republic also had a significant GDP growth of 8.5% in 2007, coming from a negative growth in 2003 (-0.3%). In 2007, Colombia had a GDP growth of 8.2% but had only 2.9% in 2000. In 2007, Costa Rica also had a bigger GDP growth (7.3%) than Suriname, which had only1.8% growth. In all these four cases, the 2007 GDP growth of Panama, Dominican Republic, Colombia and Costa Rica was enormous compared to 2000; however, this was not the case in Suriname (4% in 2000 and 5.3% in 2007). Other Latin American countries not considered in this table also had large levels of GDP growth in 2007, such as Peru (8.9%), Argentina (8.7%), Venezuela (8.4%) and Uruguay (7.4%). The observation of CARICOM countries reveals that Trinidad and Tobago and Guyana had similar GDP growth figures as Suriname in year 2007, but Guyana came from a negative GDP growth in years 2000 and 2003. The situation of Trinidad and Tobago is different because its GDP growth in 2007 diminished deeply with respect to the 14.4% obtained in 2003. In 2007, only Jamaica and Haiti had smaller GDP growth figures than Suriname. Other CARICOM countries not shown in the table also had higher GDP growth levels in year 2007, such as Saint Vincent and the Grenadines (7.7%), Cuba (7.3%), Antigua and Barbuda (6.3%), Trinidad and Tobago (5.5%) and Guyana (5.4%). Table 6. Comparative figures of Economic Performance Anual GDP % rate variation Year 2000

Year 2007

Colombia

2.9

4.6

8.2

Costa Rica

1.8

6.4

7.3

,-1.4

,-0.7

5.4

Haiti

0.9

0.4

3.2

Jamaica

0.7

2.3

1.2

Guyana

36

Year 2003


Panama

2.7

4.2

11.2

Dominicana Republic

5.7

-0.3

8.5

Suriname

4.0

6.1

5.3

Trinidad & Tobago

6.9

14.4

5.5

Source: ECLAC, Latin America and the Caribbean Economic Report 2008 Table 7 explains the evolution of Suriname’s external public debt in percentage of the GDP with respect to other eight CARICOM countries in three different periods: 1995-1998, 1999-2003 and 2004-2007. These results indicate that Suriname was one of the CARICOM countries with the smallest total external debt in period 2004-2007 (23.5% of GDP). Only the Bahamas (5.1%) and Trinidad and Tobago (8.2%) had better external public debt figures in this period. As a matter of fact, Bahamas is the CARICOM country with better external public debt figures in all three periods. Barbados had also good performance from 1995 to 2003 as well as Trinidad and Tobago from 1999 to 2007.

Table 7. Comparative figures of Public External Debt with other CARICOM countries 1995-2007 In percentages of GDP Antigua & Barbuda

1995-1998

1999-2003

2004-2007

58.0

60.4

40.4

Bahamas

7.6

6.1

5.1

Barbados

18.6

24.6

27.5

-

59.3

82.5

Dominica

41.3

67.9

72.2

Grenada

32.1

43.1

72.4

Guyana

240.5

165.5

116.0

Jamaica

48.9

47.1

55.8

Saint Kitts and Nevis

32.3

64.8

62.7

St. Vincent and the Grenadines

31.5

48.4

48.0

St. Lucia

21.4

30.9

41.8

-

40.3

23.5

Trinidad and Tobago

30.0

18.8

8.2

Total

35.9

32.4

28.6

Belize

Suriname

Source: ECLAC, Latin America and the Caribbean Economic Report 2008 By the contrary, Guyana is the country with a worst external public debt situation of the whole period, although it slightly improved from 240.5% of the GDP in period 1995-1998 to 116% in period 2004-2007. “Macro-Economic Review of Suriname 1999-2008”

37

4.1.4.

Consequences and conclusions of these macro-economic performance results

Consequences The foreseen increase of the inflation and public external debt in 2008 can have important consequences for the Surinamese economy. The growth of the inflation rate can have a negative impact on the exchange rate and this factor can make it more difficult for future private sector activities. On the other hand, the increase in the public external debt from the new loans acquired from China can have consequences in the current macro-economic stabilization of the economy. With this in mind, it is important that Suriname can achieve agreements with USA and Brazil for the repayment of its debt. Conclusions The following are the main conclusions regarding the macro-economic situation: • In comparison with the poor development performance and economic instabilities of past decades, Suriname has recently made a major effort to restructure the economy. • However, even if Suriname’s economy has had consistent growth and has displayed higher rates of stability and performance than in the past decades, it is still vulnerable to international price fluctuations. • The good growth performance in Suriname is still below the growth level of many CARICOM and other Latin American countries. This is important to note because countries with higher rates of growth are less vulnerable to the external prices; on the other hand, countries with lower rates of growth than Suriname might represent a trade opportunity.

4.2.

ECONOMIC SECTORS AND PRODUCTS IN WHICH SURINAME HAS A COMPARATIVE ADVANTAGE

The economic activities of Suriname are concentrated in a few sectors and products, mainly in the mining sector, but also in a few agriculture products, flowers, forestry and tourism. In 2005, the Ministry of Trade and Industry requested and provided an EC funded TA in preparation for the EPA. In this public presentation made in June 2005 on the impact of EPAs, the Government mentioned the following agriculture; industry and service areas where Suriname could have new export opportunities: a) In agricultural products: tropical fruits, organic (bio) vegetables, and exotic flowers, like potted plants and medical herbs. 38


b) In industrial/processed products: Wood-block flooring, timber mouldings, and food sauces. c) In services: call centers, back office, data services, eco-tourism, adventure tourism and professional conferences.

4.2.1.

Mining sector

The mining sector is a unique industrial sector in Suriname and has crucial importance to the economy and to Suriname’s trade relations. In this sector, the largest multinational technology companies working in the country are concentrated. At the same time, many small entrepreneurs are also working with mining products. The large rise of international mining prices have provided great benefits to this sector and consequently to the economy of Suriname as a whole. However, the vulnerability to international price fluctuations is a major aspect of concern for the current stability of Suriname’s economy. The mining sector relies on the following traditional products: bauxite, crude oil and gold. Another non-traditional product with future potential is kaolin. New exploration keeps the growth of future mining possibilities alive. Bauxite is the main mining product and is one of the most important economic activities in Suriname. Bauxite is transformed into alumina in Suriname and then into aluminum abroad. Suriname is one of the ten largest bauxite producing countries in the world, with an average of around five millions of tons of bauxite production a year. In 2006, the production of bauxite was exactly 4.94 million tons. This amount represented the 2.74% of the total worldwide bauxite production (IMF, 2008). The current bauxite reserves represent 2.3% of the total worldwide reserves, and this percentage can increase with the new reserves of bauxite found in the interior of the country. Two multinational companies are now working in bauxite exploration. In 2006, the alumina production was 2.13 million tons. This amount signified 3.65 % of the total worldwide production. Exports of alumina generate the largest amount of exports earnings. In fact, in 2006, 99.71% of the alumina production was exported (IMF, 2008). Exports of alumina are sent mainly to Norway, USA, France and Iceland Gold is the second important mining product. The multinational enterprise IAMGOLD Corporation is working in the exploration of this mineral. Two large-scale exploration projects are also in execution. One of them is located near Nassau Mountain via an agreement between the multinational enterprises SURALCO and Newmont. The other is located in the area of South Benzdorp; this project is run by the Ca“Macro-Economic Review of Suriname 1999-2008”

39

nadian Reunion Gold Corporation in joint venture with Nana Resources. Other companies, such as Canarc Resources Corporation (Canada) and Hemisphere Gold Incorporation are also doing gold exploration. The gold sector is also benefiting from the current rise of international prices. As an example, the enterprise IAMGOLD has increased its revenues continuously since 2005. In 2007, the total revenues obtained were USD 678.1 million, which represent an increase of 422.57% with respect to the 2005 revenues7. Crude oil is the third mining product and has an important presence in the state of oil production, particularly through the company Staatsolie Maatschappij Suriname, which has its own refinery. This refinery has the capacity to transform 7,000 barrels a day from crude oil into diesel, fuel oil and asphalt. The intention of the Government is to increase the capacity of the refinery to 15,000 barrels a day in the near future. The production levels are high and, in accordance with information obtained from the Chamber of Commerce and Industry, represented 5.2 million barrels of petroleum sold (4.8 million barrels for own production and 0.4 million for imports) in 2006. Additionally, 59% of the oil production was sold to the bauxite industry and 20% was exported to Trinidad and Tobago. Kaolin is a non-traditional mining resource product but its future potential has increased. Some explorations have been made. These explorations indicate that future kaolin reserves may be between 60 and 80 million tons. Conclusions • The most dynamic sectors are related to natural resources. • The sector is extremely vulnerable to international prices and its negative variations could risk stability, as this is the case now in October 2008. • The potential of the alternative economic sectors is still low, as will be discussed later on in this study. These main alternative sectors to mining are agriculture, tourism and forestry.

4.2.2.

Agriculture, animal husbandry and fisheries

This section analyses the current situation and potential of agricultural crops, as well as animal husbandry and fisheries, looking mainly at the evolution of its gross production value and its trade in the last years (from 2004-2007). This analysis is based on official statistical data obtained by the Ministry of Agriculture, Animal Husbandry, and Fisheries. Main agricultural and livestock products increased in gross production value. In 2007, this value was SRD 427.8 million. This amount signified an increase of 86% with respect to the value obtained in 2004. 7

40

Data obtained from the IAMGOLD Corporation report on “Consolidated Financial Statements at 31st December 2007”.


In 2007, four agricultural and livestock products obtained the most important gross production value: bananas and plantain (which signified the 17.73%); chicken (16.74%), rice (16.31%); and eggs (14.16%). After these four products follow “other vegetables” (9.40%), specifically hot pepper and string beans. A comparative analysis of the main agricultural and livestock production in 2004 identifies an evolution in this sector over the past years. In 2004, the main products were rice (21.25%); bananas and plantains (16.69%); other vegetables, mainly string beans and eggplant (13.94%); chicken (12.18%) and beef (6.12%). The comparative analysis between 2004 and 2007 signifies the following: a) Bananas and plantain values have been increased in the last years (especially because of bananas) until reaching the top position in the gross value of agricultural and livestock products. As a matter of fact, bananas and plantains are almost the only fruit produced (78.53% of the total fruit gross production value) in 2007. b) Rice has lost strength, although its gross production value has continued increasing. c) The growth of chicken and egg’s gross production value has been significant in 2007 in comparison with previous years. Exports value of main agriculture and fishery products. In 2007, the exports value of the main agricultural and fishery products was SRD 190,055. This amount signified an increase of 24.91% in the exports with respect to the value obtained in 2004. The four main agricultural and fishery products exported are shrimps, bananas, rice and fish. The importance of these products in Suriname’s exportation has been maintained since the period of our analysis (2004-2007), although the weight in the total value of exports has changed. In 2007, Suriname has produced, 5,211 tons of shrimps and 57,135 tons of bananas. That year, in value terms, shrimps signified 33.93% of the total value of exports in agricultural and fishery products; bananas 24.31%, rice products 22.54% and fish products 16.06%. As mentioned above, the weight of these products in relation to the value of agricultural and fishery exports was different in 2004. In that year, shrimps was again the first agricultural and fishery product exported (51.58%). The second was rice products (21.86%), followed by fish products (14.04%) and bananas (9.70%). These results obtained from the analysis of the exports imply the following consequences:


41

Shrimps have kept the first position, and in 2004, this product signified more than half of the value of agricultural and fishery exports, although little by little it has been losing value. In addition, the fish export value did not grow in the last two years. Frozen fish and fish parts are the main fish products exported. In 2007, its exports totaled SRD 15 million; of this amount represented 49.11% is from fish and fish parts exports. Likewise, frozen shrimps and prawns are the main shrimp and mollusks products exported. In 2007, its exports totaled SRD 64 million; of this amount 99.06% was from shrimps and prawns exported. Not only did bananas and plantains increase their production since 2004, but their importance as a contributor to agricultural and fishery exports have also increased. Bananas are almost the only fruit exported (99.34% of the total fruits in 2007). As a matter of fact, the rest of the fruits represented in 2007 only totaled 0.16% of the total exports of agricultural products. In addition, the banana production is still in the hands of a State enterprise, although now the Government is in negotiation with a French firm for its future privatization. Even if Suriname increased their banana production levels, other South America countries, like Ecuador, also produce significant amounts of bananas and have a stronger market than Suriname with the support of multinational enterprises. The export of bananas could benefit from the reforms of the European Union license regime only if the EU does not give the benefit of a possible reduction of the EU tariffs to the Latin American countries; in that case, the strong competition from these countries could put Suriname’s banana exportation in a difficult situation. The destination of rice exports has been modified from 2004-2007. In 2004, the main rice destinations were the Netherlands and Brazil. In 2007, the Netherlands continued to be the main destination, but the exports to Brazil were insignificant. In the last years, Suriname has unfortunately lost the Brazilian rice market. This is a disappointment, largely due to the fact that Brazil is one of the main rice consumers of the region, and it is now importing rice from the Uruguay MERCOSUR country. Instead of Brazil, Haiti became the second destination for Suriname’s rice in 2007. Guyana and Jamaica followed Haiti; these two countries have continuously received key amounts of rice from Suriname since 2004. However, Guyana is also one of the main rice producing countries in the region. Additionally, Jamaica is receiving substantial quantities of subsidized rice from USA under the PL 480 system, under payment conditions against which Suriname cannot compete. The highest valued rice export in the period analyzed was the white rice variety. The decrease of the rice production has also affected the export values. In the mid 80’s, the paddy production areas were around 60,000 hectares of land. However, the number of cultivated rice hectares has diminished in the last years. In 2004, the total rice area was 49,020 hectares, and it was even lower in 2007 (42.087 ha.). In addition, the State enterprises have diminished and the main producers now come from small and medium sized enterprises. 42


This sector has still some bottlenecks issues that should be solved. Reinvestment in equipment and field maintenance has caused constraints. Other problems include the following: no market diversification; traditional exploitation of resources, limited production capacity, no use of modern technology, and limited amount of competition. Flowers are another alternative agricultural product in which Suriname believes there are possibilities to increase production, especially ornamental flowers and medical herbs. Exports value of flowers has increased since 2004, although in 2007 it signified only 0.45% of the total exports in the agricultural products. In addition, the export value of flowers decreased in 2005 and 2006 with respect to the value in 2004. The exports value of flowers was only 0.23% with respect to the total exports in agricultural products. Imports values of the agricultural products The following are the main aspects observed: The main agricultural products imported by Suriname since 2004 were products for human consumption, which in 2007 signified 19.27% of the total agricultural products imports. Drinks, alcoholic liquids and vinegar have increased its importance in 2007 (10.70%); dairy products, eggs, honey also increased to 8.45% of the total agricultural imports in 2007. Other important agricultural products are vegetable fats and oils (8.33%). After observing the import statistical data, one of the concerns noted is that even if chicken and eggs are one of the main agriculture products of Suriname, the country still needs to import eggs. When looking at the import side of the flowers sector, it can be detected that even though imports of flowers increased in 2007 with respect to 2004, in years 2005 and 2006 Suriname’s trade of flowers was negative. In 2005, as an example, Suriname’s exported flowers valued SRD 457,000 and its imported flowers valued SRD 813,000. As a result of this statistical data, the possibilities to improve the economic sector of flowers are very limited. In addition, other neighbouring countries in the region, such as Colombia and Trinidad and Tobago, have big flower markets and are strong competitors to Suriname’s flowers. The chances to export medical herbs are also reduced, not only because its trade is low, but also because the rest of Amazonian countries have similar medical herbs to offer to the international market.


43

Conclusions from the agriculture, husbandry and fishery situation • Agricultural production is concentrated in a few products, mainly paddy, bananas and plantains • Rice production levels have increased from the past but still are lower than in the 80’s • Rice exports opportunities to CARICOM and South America are still incipient • Monopolistic production of bananas is still in the State hands • Bananas are the only fruit exported • The flower trade market is very small and has limited future possibilities to become a booming economic sector • The agricultural sector has to invest more in human capital • Animal husbandry production is related only to chicken and eggs •

Suriname wishes to increase its production of vegetables, but the production quantities are still small

• More investments are needed in machinery and operating equipment.

4.2.3.

Tourism sector

The Government considers tourism as one of the priority sectors to be developed today. The public sector tourism policy is to offer alternative tourism possibilities to tourists in comparison to those offered by the Caribbean islands. Thus, instead of compete with the Caribbean islands in sun and beaches; the intention is to offer to tourists’ history, culture, and the architecture of the colonial houses of the country. Additionally, Suriname hopes to offer the beauty of the forestry and natural landscapes in the tourist resorts located in the interior of the country for the practice of the ecotourism. The public sector tourism policy is based in the following five strategies: to improve the tourism product, increase the promotion levels, keep and improve the quality of services, foster the statistical tourism data, and enhance the professional training programs. The Suriname Tourism Foundation believes that these following five tourism resorts could be developed, as a priority: Kabalebo, Berg en Dal, Danpaati, Aeacula and Arapagu. All aspects of the above mentioned policy intend to be developed by the Government with the support of the Suriname Tourism Foundation. This institution is in charge of the elaboration and implementation of the public sector tourism policies. As a matter of fact, several new hotels are now under construction in the country. One famous multinational hotel (Marriott) is also arriving and this fact could help to improve the number of visitors in the near future. The number of tourists has risen, but the growth of this sector is still slow. Graphic 4 shows the evolution of the tourism sector since 2004. In accordance with the Suriname Tourism Foundation 44


figures, the number of visitors who came to Suriname in 2007 was 162,509. This number represents an increase of 18% in 2007 with respect to the number of tourists who came in 2004 (137,772). However, the numbers of tourists who come to Suriname remains low, approximately the equivalent 28% of Suriname’s population. In the European developed tourist countries, such as Spain, the number of tourists by year is equivalent to 1 ½ of the Spain’s population. The goal of the Government is to increase the amount of tourists to around 300,000 tourists per year. The Government hopes to attain this goal in two years. However, the growth rate of the number of tourists in recent years has not been very high. In 2006, the number of visitors who came to Suriname was lower than in 2005. In addition, the majority of tourists come from the Netherlands, and around 70% of the tourists that arrive to Suriname are Visitors, Families or Relatives tourists (VFR). Around 15% are international visitors and the rest are students, businessmen and others. The VRF contribution to Suriname’s economy is not very high because they generally remain in their family’s houses instead of hotels. Consequently, their levels of consumption are quite low.

Graphic 4. Tourism Evolution Years 2004-2007 165000

162509 159770

160000 155000

152895

150000 145000 140000

Serie1 137772

135000 130000 125000 "04

"05

"06

"07

YEARS Source: Suriname Tourism Foundation

Although there is real economic potential in tourism, this sector still has many constraints to solve. These constraints prevent Suriname from being prepared to receive more tourists. For Although is real economic potential in tourism, this sector has many instance,there Suriname wishes to improve the ecotourism possibilities in still the interior of theconstraints country. to However, the access to these areas is difficult, and in many cases, access is limited to solve. These constraints prevent Suriname from being prepared to receive more tourists. Forsmall instance, planes or boats. The system of infrastructure is obsolete for the tourism needs and the private Suriname wishes to improve the ecotourism possibilities in the interior of the country. However, the sector is complaining about the inactivity of the Government in this matter. access to these areas is difficult, and in many cases, access is limited to small planes or boats. The Suriname is not putting in much effort to promote the tourist imagine abroad. Suriname is system of infrastructure is obsolete for the tourism needsOrganization and the private(ACTO). sector is complaining member of the Amazonian Conservation Treaty Through thisabout organization, hopes to show other the inactivity of itthe Government in thiscountries matter. the ecotourism possibilities within Suriname. The first priority is to increase the number of Netherlands tourists beyond the VFR; these tourists are often more interested in the cultural and colonial roots of Suriname. Nevertheless, Suriname Suriname not putting in muchnetwork effort to of promote theoffices tourist in imagine abroad. Suriname is member does notis have an adequate tourism the most important cities of Netherlands. of the Amazonian Conservation Treaty Organization (ACTO). Through this organization, it hopes to

show other countries the ecotourism possibilities within Suriname. The first priorityconstraints is to increase Attracting tourists from other countries is even more difficult, because the current of the the country act as a barrier to the improvement of tourism; for example, the slow and complex “Macro-Economic Review of Suriname 1999-2008” visa procedures for visitors to Suriname are a deterrent; but also tourists visiting the Caribbean countries are more interested in the Caribbean beaches than in the Suriname ecotourism

45

number of Netherlands tourists beyond the VFR; these tourists are often more interested in the cultural and colonial roots of Suriname. Nevertheless, Suriname does not have an adequate network of tourism offices in the most important cities of the Netherlands. Attracting tourists from other countries is even more difficult, because the current constraints of the country act as a barrier to the improvement of tourism; for example, the slow and complex visa procedures for visitors to Suriname are a deterrent; but also tourists visiting the Caribbean countries are more interested in the Caribbean beaches than in the Suriname ecotourism possibilities. Tourists belonging to the CARICOM countries are in a better position to visit Suriname because of the geographic proximities and because of the advantages of being members of the same regional integration market; moreover, the flight inter-connections between the CARICOM countries are not ideal. Tourists coming to other Amazonian countries via cruises have been seen by the Government as another possibility to increase tourism in Suriname. As a matter of fact, the authorities are working to expand the harbor of Paramaribo in order make it easier for cruise ship to enter. However, the arrival of these cruisers to Suriname is slow. Only five cruisers arrived in Paramaribo in 2006. Another factor to consider is the quality of professionals who are working in the tourism sector. The Suriname Tourism Training Centre has been set up with the financial support of the European Commission. However, the STTC has been closed in the last two years. This Centre recently opened but closed again soon after. Because of these circumstances, it is not easy to improve the knowledge of these professionals. The European Commission is also supporting the Tourism sector with the project entitled “Suriname Sustainable Tourism Capacity Building Programme”. In order to develop the touristy industry, it is necessary to have a clear regulatory framework. This is also a problem in Suriname because the country does not yet have a Tourism Act. The draft of this Act is still possessed by the Ministry of Transport, Communication and Tourism; the National Assembly has not yet approved it. Another constraint, according to the Suriname Tourism Foundation, is the old rules and procedures that tourist entrepreneurs have to follow when they wish to obtain a tourist license for opening a business. On the contrary, the inspections and sanctions that are imposed when business fail to comply with the law are still very weak. Finally, other constraints include the following: the quality of the statistical data information collected and the fact that Suriname is still an expensive country in comparison with the quality of the tourism facilities and products offered.

46


The following are some of the measures that could be taken to improve the tourism in Suriname: • Define a long term tourist policy in consensus with all political parties and private sector institutions • The Government should invest more in the infrastructure network for improving the tourism accessibility in the interior of the country; the flight connections with the neighbour countries should also be improved • Enact a Tourism Act • Improve the quality of services and establish competitive prices • Find a system which avoids the hard visa entry requirements • Improve the quality and knowledge of the human resources who are working in the tourist sector • Invest more in promoting the touristy image of the country abroad • To create a General Attorney for the Fair Consumption Rights.

4.2.4.

Forestry and timber sector

Suriname is a country with almost 90% of the land covered by forest. The Forest Belt area, totaling 4.5 million hectares with an extension of 100 kilometers from the coastal zone, is the forest production zone. From this extension, 2.5 million hectares are the net productive hectares. This industry has different exploitation phases, starting from the raw materials (logs) to the processed finished products. Almost the entire forestland belongs to the State, which has the main responsibilities regarding the state of the forest. The largest part of the forest area is still preserved; the forest deterioration and deforestation of Suriname, caused partially by the mining sector, is still not significant (around 10%). UNDP, European Union, FAO and the Netherlands have been supporting the Government in institutional strengthening, in policy formulation and in forestry capacity building. Some projects have been instituted under the framework of the Amazonian Cooperation Treaty. The forestry and timber industry has potential but some constraints still remain. The forestry and timber sector need to improve the quality of production and the quality of standards; this also requires improving the regulations to incorporate new technology and to get long-run concessions with more transparent procedures. Infrastructures also have to be enhanced, particularly roads, bridges and harbours. As a matter of fact, the improvement of the infrastructures in the countryside has been more related, until now, with the mining sector needs than with the forestry and timber industries.

4.2.5.

The domestic products by sector and their importance in the GDP of Suriname

This section analyzes the statistical data obtained from the General Bureau of Statistics. The influences in the GDP of other sectors, not included in the ABS tables, are not going to be considered. “Macro-Economic Review of Suriname 1999-2008”

47

After the individual analysis of each of the main economic sectors, the study will focus on the evolution of the economic sectors’ values in relation to the Gross Domestic Product in 1990-2006 periods (at 1990 prices). This analysis illustrates that the wholesale and retail trade was the sector with the greater GDP value in the whole period (1990-2006). On the other hand, hotels and restaurants was the sector with the lowest GDP values from 1990 to 1992. Table 8 shows the percentage weight of each sector in relation to the GDP in three different periods: 1990, 2000 and 2006. According to this table, the wholesale and retail trade maintained the highest weight in percentage terms of the GDP (around 20% in all cases) during these three years. The situation varies with respect to other sectors. Year 1990 In 1990, in terms of values with respect to the GDP, the most important sector was the wholesale and retail trade with a value of SRD 549,000, followed by manufacturing (SRD 371,000), health and social work (SRD 334,000) and other community, social and personal services (SRD 320,000). The less important sectors in 1990 were hotels and restaurants (SRD 23,000) and fisheries (SRD 39,000), both of them very far away from the other sectors. In terms of percentage of the GDP, the most important sectors in 1990 were manufacturing (12.9%), health and social work (11.6%) and other community, social and personal services (11.1%). Education (10.1%) and agriculture, hunting and forestry (9.5%) also had quite good rates. Year 2000 In terms of percentage of the GDP, a large change took place in 2000. Agriculture, hunting and forestry retained its rates (9.2%), but health and social work (1.4%), other community, social and personal services (2.9%), and even education (7.9%) decreased considerably. On the other hand, transportation and communication (14.6%) increased tremendously, but growth was seen in manufacturing (17.2%) and in mining and quarrying (7.7%). Year 2006 In terms of value with respect to the GDP, the wholesale and retail trade value was SRD 565,000 in 1995. The small growth in retail and wholesale trade in 1991, only 2.91%, can be explained by the decrease of its values of goods from 1993 with respect to the values obtained in 1992. However, this situation changes completely in 2006. In 2006, wholesale and retail trade continued to be the sector with highest values (SRD 667,000); following this sector was transport and telecommunications (SRD 612,000) and manufacturing (SRD 569,000). 48


The less important sectors in 2006 were government health social work (SRD 30,000), other community, social and personal services (SRD 78,000) and fisheries (SRD 85,000). In 2006, in terms of percentage with respect to GDP, agriculture, hunting and forestry decreased (6.8%), as well as health and social work (0.9%), other community, social and personal services (2.2%) and education (6.1 %). On the other hand, mining and quarrying continued to grow (10.1%), as well as hotels and restaurants (4.4%). The evolution of each sector with respect to the GDP can be observed analyzing the situation at the beginning and at the end of two different periods (1990-1999 and 2000-2006), according to the results obtained in table 8. Variation in GDP percentage in 1999 with respect to 1990 After comparing the situation of each sector in 1999 with respect to 1990, the following observations can be made: Hotels and restaurants was the sector with the highest increase (282.6%) in the whole period. Other sectors with important growth rates were: fisheries (82.1%); transport and communications (54.4%); mining and quarrying (45.3%). On the other hand, the sectors with less growth during this period were manufacturing (-31%); other community, social and personal services (-24.7%) and agriculture, hunting and forestry (-21.1%). Variation in GDP percentage in 2006 with respect to 2000 Comparing the situation of each sector in 2006 with respect to 2000, some important changes can be observed: Hotels and restaurants continue to be the sector with the highest increase (126.9%) in the whole period; nevertheless, this increase was less than in the previous period in spite of the very high tourism increase in the last years. Mining and quarrying is also a sector with a great improvement (91.3%), with even higher growth than in the previous period analyzed. Similar growth can be seen in transportation and communications (76.4%). Other significant growth cases can be seen in construction, which grew to 54.8% in comparison to only -8.8% in period 1990-1999; wholesale and retail trade, with a growth of 51.6% in comparison with -6.4% in the previous period; and manufacturing, which marked an important increase of 39.1% in comparison with -31% in the previous period. On the other hand, the sectors with less growth in this period were the following: health and social work (-11.8%) and fisheries (-2.3%) in comparison with their growths in the previous period. “Macro-Economic Review of Suriname 1999-2008”

49

Table 8. GDP by sector of origin at constant prices and variations in different periods Gross Domestic Product by Sector of Origin at Constant Prices % 1990 % 2000 % 2006 GDP % with respect to the year Agriculture, hunting and forestry 9,5 9,2 6,8 Fishery 1,4 3,7 2,4 Mining and quarrying 4,8 7,7 10,1 Manufacturing 12,9 17,2 16,3 Electricity, water and gas 5,9 7,6 7,2 Construction 6,7 6,5 6,9 Wholesale and retail trade 19,0 18,5 19,1 Hotels and restaurants 0,8 2,8 4,4 Transport and communications 6,2 14,6 17,5 Education (government) 10,1 7,9 6,1 Health and social work (government) 11,6 1,4 0,9 Other community, social and personal services 11,1 2,9 2,2 Total (related to above mentioned sectors) 100 100 100 GDP % variations in two dfferent periods Agriculture, hunting and forestry Fishery Mining and quarrying Manufacturing Electricity, water and gas Construction Wholesale and retail trade Hotels and restaurants Transport and communications Education (government) Health and social work (government) Other community, social and personal services Total (related to above mentioned sectors) Source! General Bureau of Statistics

4.2.6.

4.2.6.

1990 v 1999 2006 v 2000 -21,1 9,6 82,1 -2,3 45,3 91,3 -31,0 39,1 15,3 39,2 -8,8 54,8 -6,4 51,6 282,6 126,9 54,4 76,4 3,8 14,4 11,7 -11,8 -24,7 11,4 1,0 46,7

Consequences, conclusions and measures to take from these results

Consequences, conclusions and measures to take from these results

Consequences Consequences Wholesale and retail trade has been the sector with the greatest value in the whole period (with the exception of 2000 and 2001), but its growth during the entire time was only 21.49%. Wholesale and retail trade has been the sector with the greatest value in the whole period (with the Hotels and restaurants was the withduring less importance to the GDP exception of 2000 and 2001), but sector its growth the entire time was onlybetween 21.49%.1990 and 1992, but have gradually grown in importance, especially since 2004.

Transportation and communication sector withtocontinuous growth 1990 during the1992, period, Hotels and restaurants was the sectorhas withbeen lessaimportance the GDP between and but growing fromgrown SRD 180,000 in 1990 to SRD 612,000, which signifies a 240% increase. have gradually in importance, especially since 2004. Mining and quarrying is also one of the sectors with great growth in the whole period. In 2006, its value was SRD 532,000 in relation 1990a prices, represents growth a 153%during increase. Transportation and communication has to been sector which with continuous the period, growing from SRD 180,000 in 1990 to SRD 612,000, which signifies a 240% increase. The GDP value of agriculture, hunting and forestry values has been quite consistent during the whole period. In 1990, its value was SRD 275,000, and in 2006, its value was even lower (SRD 239,000). Again, these figures thewith specific analysis made above on In the2006, agricultural Mining and quarrying is also one ofreinforce the sectors great growth in the whole period. its value economic sector. was SRD 532,000 in relation to 1990 prices, which represents a 153% increase. 50


The GDP value of agriculture, hunting and forestry values has been quite consistent during the whole period. In 1990, its value was SRD 275,000, and in 2006, its value was even lower (SRD 239,000). Again, these figures reinforce the specific analysis made above on the agricultural economic sector. The importance of the government health and social sectors in the GDP has diminished tremendously since 2000, turning into a sector with low value in the GDP. The existence of private clinics has influenced in this change. Likewise, in the year 2000, education went down enormously in the GDP value, although since that year education has been slightly increasing. The fisheries sector was the smallest sector in terms of the GDP values from 1993 to 1999. Conclusions about the sectional perspectives • The economy is concentrated in few sectors and products • Excessive concentration in traditional sectors may hamper economic development, especially when the economy is based in the mining sector production (which has a value that depends on the international prices fluctuations) • The economy is highly dependent on traditional technologies • Insufficient attention is given to standards, quality control and certifications • The potential of the alternative economic sectors to mining are still low. Measures that could be taken • The mining sector does not take all the advantages of its privilege position. The bauxite mining industry should process the aluminum like it did in the past; and gold should also be processed on a larger scale. •

To diversify the economy, more attention should be given to the productive sector. Although mining is an important sector for the economy, Suriname should not be so dependent on this unique product because the situation could be unsustainable if mining prices decrease in the future.

4.3.

SURINAME TRADE RELATIONS

Suriname follows the Harmonized System (HS) classification, classifying trade relations into 22 groups. In the analysis of this section, the trade relations of Suriname are analyzed using the ABS statistical data, figures from the HS classification, and figures of the Standard International Trade Classification (SITC) and the Economic Commodity Group (ECG) classification. This section examines, from period 1996 to 2006, the general trade balance situation, the trade market by sectors, the destination of exports and the origin of imports, and trade Suriname position by regions. “Macro-Economic Review of Suriname 1999-2008”

51

4.3.1. General trade balance situation Graphic 5 shows that Suriname’s trade balance has been traditionally negative since 1996. As a matter of fact, during this period, only three years (1996, 2004 and 2006) had positive trade balance; in the remaining years, the trade balance was always negative. As above-mentioned, the explanation of this negative trade situation can be attributed to the fact that Suriname is a very high import country without an import substitution policy. On the other hand, even if exports have been increasing since 2001, these exports were based not in economically productive sectors’ products, but mainly in the mining sector, which depends greatly on international price oscillations. This is very clear when looking at the export figures8. For example, in 2006 the value of exports was USD 1,175 million, and the trade balance was positive for a value of USD 161.2 million. 87.80% of the total exports were concentrated in the following three items: mineral products (USD 57.4 million); products of chemical or allied industries (USD 564 million); and pearls, precious & semi-stones, precious metals, imitation jewelry and coins (USD 410.2 million). When the amount of these three products is subtracted from the total exports, the value of exports remains only USD 143.7 million. In this situation, the trade balance would have been a completely negative value of USD -870 million. Similar outcomes can be seen when considering other previous years. As a consequence of this, is very clear that the trade balance situation is very dependent on a few products and on the evolution of the international prices in the mining sector. Exports9 In period 1996 to 2000, exports had an irregular behavior, with rising movement until 1997 and then downward movement in the following years. In 2000, the value of exports was USD 514 million; that is lower than the value of exports in 1996 (USD 538 million). The explanation of these oscillations was due to the evolution of the mining sector in Suriname and to the behavior of the international mining prices. The evolution of exports in period 2001-2006 is completely different. During this period, exports had a continuous increase, equivalent to 196.80%. Exports went from USD 396 million in 2001 to USD 1,174.5 million in 2006. The growth is more evident from 2003 to 2006 because of the significant booming of international prices in the mining sector.

8 In the value of exports are included also the re-exports. 9 In the value of exports are included also the re-exports.

52


Graphic 5. Annual Trade Balance in mln. dollars 1400

1200

1000

800

600

400

200

0 "96

"97

"98

"99

"00

"01

"02

"03

"04

"05

"06

-200

Source: General Bureau of Statistics (ABS)

Total Exports Trade Balans

Imports

Imports

Imports

In period 1996 to 2000, imports continued to grow until 1998; at that point, imports fell until the end of the period (in fact, until 2001). However, the value of imports in 2000 (USD 527 million) was higher than the value of imports in 1996 (USD 502.1 million).

In period 1996 to 2000, imports continued to grow until 1998; at that point, imports fell until the end Like in the case of exports, the evolution of imports in period 2001-2006 is completely

the2001). previous period examined. this period, imports continuous of the period different (in fact, to until However, the valueDuring of imports in 2000 (USDhad 527a million) was higher increase, equivalent to 121.98%. This is a lower increase with respect to the exports. Imports

than the valuewent of imports in 456.4 1996 million (USD 502.1 from USD in 2001million). to USD 1,013.3 millions in 2006. This growth was especially important in 2005 and 2006.

4.3.2.of Trade markets by sectors. of imports in period 2001-2006 is completely different to Like in the case exports, the evolution

the previous As period examined. this period, a continuous to mentioned above, During the General Bureau ofimports Statisticshad (ABS) classifies theincrease, sectors inequivalent 22 categories in accordance Harmonized In the statistical datafrom booklets 121.98%. This is a lower increase with withthe respect to theSystem. exports. Imports went USDpublished 456.4 million in by the ABS, the trade sector information is presented not only in the HS classification but also

11 groups of thein Standard (SITC) and in in 2005 23 groups the 2001 to USD in1,013.3 million 2006. International This growthTrade wasClassification especially important andof2006.

4.3.2.

Economic Commodity Group (ECG) classification. Additionally, the International Monetary Fund recently published a statistical appendix on Suriname using a more integrated sectoral classification in August 2008.

Trade markets by sectors

All this information is considered in the trade sectoral analysis.

As mentionedExports above,10 the General Bureau of Statistics (ABS) classifies the sectors in 22 categories in accordance with the Harmonized System. In the statistical data booklets published by the ABS, the trade For the analysis of exports by sectors, the attention is focused particularly on the evolution of the main duringnot twoonly different periods: 1996-2000 and 2001-2006. sector information issectors presented in the HS classification but also in 11 groups of the Standard

International Trade Classification (SITC) and in 23 groups of the Economic Commodity Group (ECG) classification. Additionally, the International Monetary Fund recently published a statistical appendix on Suriname using a more integrated sectoral classification in August 2008. All this information is considered in the trade sectoral analysis. 10 The values mentioned include the re-exports.

Exports10 For the analysis of exports by sectors, the attention is focused particularly on the evolution of the main sectors during two different periods: 1996-2000 and 2001-2006.

10 The values mentioned include the re-exports.


53

Period 1996-2000 In accordance with the HS classification, the main export values during the whole period were concentrated in “products of chemical and allies industries.” In 1996, this sector totaled USD 309 million, although its value decreased year by year, and in 2000, only totaled USD 278.5 million. The growth of the “mineral products” was very important during this period; in 2006, it was already the second most exported product, comprising a value of USD 77 million. “Pearls, precious and semi-precious stones, precious metals, imitation jewelry and coins” was another product, which increased its value during the period; in 2000, its value was USD 58.4 million. On the other hand, “base metals and articles of base metal” decreased its export value in 2000 compared to 1996. Similar conclusions can be made, by looking at the other two systems of trade classification. In the SITC classification system, “crude materials, except for fuels” had the highest value, totaling USD 323 million in 2000, followed by “mineral products” and “pearls, precious & semi-stones, precious metals, imitation jewelry and coins.” In the ECG classification, the highest export was “other industries,” valuing USD 409 million in 2000, followed by “foodstuffs.” Period 2001-2006 Looking at the HS classification system, the situation in this period differs in relation to the previous period already analyzed. “Products of chemical and allies industries” continue to be the most important sector, and this time increasing its value during the whole period. In 2001, its value was USD 241.1 million, and in 2006, it totaled USD 564 million. One peculiar aspect of this period in comparison to the previous period is a decrease in value experienced by “pearls, precious & semi-stones, precious metals, imitation jewelry and coins” from 2001 to 2002 and an increase during 2003 to 2006. In 2001, the value totaled only USD 36 million, and by 2006, the value had grown to 410.2 million. Another important feature observed in this period is the decrease of the value of “mineral products” until 2003 and then its increase since 2004. On the other hand, “live animals and animal products” export values increased until 2003 and then decreased since 2004. In the SITC classification, “crude materials, except for fuels” was also the main sector during the whole period, valuing USD 567.2 million in 2006. It is important to mention the substantial increase in the export value of “commodities and transactions” since 2003. In 2006, its export value was USD 410 million. In the ECG classification, exports were also concentrated in “other industries,” valuing USD 992.1 million in 2006; “foodstuffs” followed this export at a large distance. The International Monetary Fund has published the following statistical data concentrating the exports in the 9 sectors showed in table 9 during the period 2003-2007. In accordance with this table, “crude materials except fuel” is the most important export sector during the whole period, averaging around 50% of the total. “Food and live animals” followed next, although its value decreased from 11.1% in 54


2003 to 5.3% in 2007. The rest of the sectors mentioned in the table decreased their exports in 2007, with the exception of “other” non-traditional exports. Table 9. Suriname Exports by Economic Use in % of Total. Period 2003-2007 Suriname: Exports by Economic Use In % of Total Table 9. Suriname Exports by Economic Use in % of Total. Period 2003-2007 Description "03 "04 "05 "06 "07 Suriname: Exports by Economic Use Totals 100,0% 100,0% 100,0% 100,0% 100,0% In % of Total Food and Live Animals 11,1% 7,6% 6,2% 5,3% 5,3% Description "03 "04 "05 "06 "07 Beverages and Tobacco 2,6% 2,2% 0,1% 0,1% 0,1% Totals 100,0% 100,0% 100,0% 100,0% 100,0% 50,5% 37,1% 53,5% 50,3% 51,9% Crude Material except Fuels Food and Live Animals 11,1% 7,6% 6,2% 5,3% 5,3% Minerals Fuels inculding Lubricants 5,6% 4,9% 2,9% 5,1% 4,5% Beverages and Tobacco 2,6% 2,2% 0,1% 0,1% 0,1% Animal, Vegetable Oils and Fats 0,5% 0,5% 0,0% 0,1% 0,0% 50,5% 37,1% 53,5% 50,3% 51,9% Crude Material except Fuels Chemicals 0,6% 0,8% 0,2% 0,2% 0,2% Minerals Fuels inculding Lubricants 5,6% 4,9% 2,9% 5,1% 4,5% Manufactured Goods 0,8% 1,1% 0,5% 0,5% 0,5% Animal, Vegetable Oils and Fats 0,5% 0,5% 0,0% 0,1% 0,0% Machinery and Transport Equipment 1,6% 1,3% 4,2% 1,6% 1,1% Chemicals 0,6% 0,8% 0,2% 0,2% 0,2% Other 26,7% 44,5% 32,4% 36,8% 36,4% Manufactured Goods 0,8% 1,1% 0,5% 0,5% 0,5% Source: Statistical Appendix form IMF August 2008 Machinery and Transport Equipment 1,6% 1,3% 4,2% 1,6% 1,1% Other 26,7% 44,5% 32,4% 36,8% 36,4% The International Monetary Fund also statistical data for the 2003-2007, focusing on The International Monetary Fund also published statistical dataperiod for the period 2003-2007, Source: Statistical Appendix form IMFpublished August 2008

focusing exports by major categories as is10.showed table 10. Thetable six products the the exportsonbythe major categories as is showed in table The sixin products of the representof above table International represent above 85% of the total exports in all years of this period. In accordance with this The Monetary Fund also published statistical data for the period 2003-2007, 85% of the total exports in all years of this period. In accordance with this table, alumina has been the table, alumina been the exported product theinentire analyzed, risingoffrom focusing on thehas exports by main major categories as isduring showed tableperiod 10. The six products the main product the entire period analyzed, risingof from USD 557.9 in 2003 USD USDexported 557.9 million induring 2003of to USD 645.7 million in years 2007. The exported product istogold, table represent above 85% the total exports in all thissecond period. In million accordance with this risingmillion from USD 140.3 2003 toproduct USD 488.8 in 2007. Crude oil is in the third table, alumina been the maininexported exported product the entire analyzed, rising from 645.7 in has 2007. Themillion second isduring gold, rising fromperiod USD 140.3 million inposition. 2003 to The exportsinof2003 shrimps and645.7 fish ismillion almostinequivalent exportsexported of gold.product Exportsisofgold, rice USDvalue 557.9ofmillion to USD 2007. Thetosecond USD 488.8 in 2007. Crude oil is in the third position. The value of exports of shrimps and fish is almost have increased 2003, but in their export value is very small. The oil exports value obtained in rising from USDsince 140.3 million 2003 to USD 488.8 in 2007. Crude is in the third position. equivalent exports Exports riceishave increased sinceto2003, but of their export value of is very the lumber sector is of even smaller. The valuetoof exports ofgold. shrimps andoffish almost equivalent exports gold. Exports rice have increased since but in their small. The exports value2003, obtained the export lumbervalue sectorisisvery even small. smaller.The exports value obtained in Thislumber table shows samesmaller. outcome as the results obtained in our previous analysis. The results the sector the is even are always the same—exports in Suriname are extremely dependent on the three mining sector This asasthe in in our previous analysis. TheThe results are products (alumina, gold and crude oil), whichobtained are very dependent on international prices Thistable tableshows showsthe thesame sameoutcome outcome theresults results obtained our previous analysis. results oscillation. are always the same—exports in Suriname are extremely dependent on the three mining sector always the same—exports in Suriname are extremely dependent on the three mining sector products products (alumina, gold and crude oil), which are very dependent on international prices (alumina, gold and crude oil), which are very dependent on international prices oscillation. Table 10. Suriname Exports by Major Categories. Period 2003-2007 oscillation. Suriname: Exports by Major Categories In millions of US dollars Table 10. Suriname Exports by Major Categories. Period 2003-2007 Description "03 "04 "05 Suriname: Exports by Major Categories Total Major Exports 557,9 785,9 910,3 In millions of US dollars Alumina 335,8 413,1 446,6 Description "03 "04 "05 Gold 140,3 275,9 338,1 Total Major Exports 557,9 785,9 910,3 Crude oil 34,7 43,5 53,6 Alumina 335,8 413,1 446,6 Shrimp and Fish 36,9 40,7 56,8 Gold 140,3 275,9 338,1 Rice 9,1 11,6 14 Crude oil 34,7 43,5 53,6 Lumber 1,1 1,1 1,2 Shrimp and Fish 36,9 40,7 56,8 in % of total major exports Rice 9,1 11,6 14 Description "03 "04 "05 Lumber 1,1 1,1 1,2 Total Major Exports 100.0% 100.0% 100.0% in % of total major exports Alumina 60,2% 52,6% 49,1% Description "03 "04 "05 Gold 25,1% 35,1% 37,1% Total Major Exports 100.0% 100.0% 100.0% Crude oil 6,2% 5,5% 5,9% Alumina 60,2% 52,6% 49,1% Shrimp and Fish 6,6% 5,2% 6,2% Gold 25,1% 35,1% 37,1% Rice 1,6% 1,5% 1,5% Crude oil 6,2% 5,5% 5,9% Lumber 0,2% 0,1% 0,1% Shrimp and Fish 6,6% 5,2% 6,2% Source: Statistical Appendix form IMF August 2008 Rice 1,6% 1,5% 1,5% Lumber 0,2% 0,1% 0,1% Imports Source: Statistical Appendix form IMF August 2008

"06 1249,5 609,4 "06 441,5 1249,5 96,5 609,4 85,2 441,5 15,5 96,5 1,4 85,2 15,5 "06 1,4 100.0% 48,8% "06 35,3% 100.0% 7,7% 48,8% 6,8% 35,3% 1,2% 7,7% 0,1% 6,8% 1,2% 0,1%

"07 1360,8 645,7 "07 488,8 1360,8 107,5 645,7 99,2 488,8 18,1 107,5 1,5 99,2 18,1 "07 1,5 100.0% 47,5% "07 35,9% 100.0% 7,9% 47,5% 7,3% 35,9% 1,3% 7,9% 0,1% 7,3% 1,3% 0,1%

Like in the case of exports, the analysis of imports focuses particularly on the evolution of the Imports “Macro-Economic of Suriname 1999-2008” main sectors during two different periods:Review 1996-2000 and 2001-2006. Like in the case of exports, the analysis of imports focuses particularly on the evolution of the

55

Imports Like in the case of exports, the analysis of imports focuses particularly on the evolution of the main sectors during two different periods: 1996-2000 and 2001-2006. Period 1996-2000 In accordance with the HS classification, the chief import was “machinery and appliances, electric equipment”. However, its import value decreased during the period and the amount reached in 2000 (USD 117.2 million) was quite similar to that obtained in 1996. “Vehicles, aircraft, vessels and associated equipment” was the second highest sector in value in 2000. It is important to note the decrease of “mineral products” since 1998. In the case of the SITC classification, “machinery and transport equipment” had the highest value during the entire period, and in 2000, its import value was USD 191 million. In the ECG classification, the highest value item during the entire period was “other industries,” but in 2002, its import value (USD 99.1 million) was lower than in 1996. Another important import sector was “fuels, lubricants and the like,” although its imports decreased during 1999 and 2000. Period 2001-2006 According to the HS classification system, the situation varies with respect to the previous period already analyzed. “Machinery and appliances, electric equipment” continues to be the most important import item until 2004. However, its import value was USD 181 million in 2006, almost double the value in 2001. In any case, the main imported item was already “mineral products” in 2005, which increased from USD 89 million in 2001 to USD 213.4 million in 2006. It is also interesting to mention the significant increase experienced by “pulp, paper, paperboard and art” since 2005; this import rose from USD 15 million in 2001 to USD 135 million in 2006. According to the SITC classification, “machinery and transport equipment” continues to be the main sector during the entire period, and in 2006, its import value was USD 269 million. It is important to note the large increase in this period of “miscellaneous manufactured articles”, which rose from USD 41 million to USD 189 million. Additionally, the increase of “mineral fuels lubricants and related products” is also interesting to note. According to the ECG classification, the main import sector was “other industries” up until the year 2004. Since 2005, “fuels, lubricants and the like” became the most important imported sector. It is also important to mention that “other consumption groups” experienced an important import increase since 2005. 56


Table 11, published by the International Monetary Fund, focuses on 9 sectors and shows that “machinery and transport equipment” is the most important import sector during the whole period, although its weight decreased in 2007 (34%) in comparison to 2003 (29.1%). The second imported product is “manufactured goods”. Other important imported products are “mineral fuels including lubricants” and “food and live animals.” In all three cases, their weights decreased in 2007 in comparison to 2003. On the other hand, the imported values of “other” non-traditional products increased during the period. Table 11. Imports by Economic Use in % of the Total. Period 2003-2007 Suriname: Imports by Economic Use In % of Total Description "03 "04 "05 "06 Totals 100,0% 100,0% 100,0% 100,0% Food and Live Animals 12,0% 10,8% 9,5% 10,4% Beverages and Tobacco 2,4% 1,8% 1,6% 1,6% Crude Material except Fuels 0,9% 0,8% 0,5% 1,1% Minerals Fuels inculding Lubricants 13,8% 13,0% 16,3% 18,1% Animal, Vegetable Oils and Fats 1,6% 1,3% 1,0% 1,2% Chemicals 8,8% 8,7% 7,3% 7,5% Manufactured Goods 16,5% 15,3% 14,3% 14,3% Machinery and Transport Equipment 34,0% 38,0% 28,1% 26,5% Other 9,8% 10,2% 21,1% 19,9% Source: Statistical Appendix form IMF August 2008

"07 100,0% 10,5% 1,5% 0,4% 13,2% 1,3% 7,1% 15,6% 29,1% 21,3%

The conclusion of this data indicates that trade activities have been improved and show stability but are vulnerable on ahave few sectors and products. The conclusion of still this data indicatesand thatdependent trade activities been improved and show stability but are still vulnerable and dependent on a few sectors and products. The main conclusion obtained from this analysis, made from different angles and sources of information, is that exports are concentrated in just a few products (particularly alumina, gold andmain crude oil) which make from Suriname’s economy by the and changes and The conclusion obtained this analysis, madevery fromaffected different angles sources of oscillations information, of the international prices. is that exports are concentrated in just a few products (particularly alumina, gold and crude oil) which make economyby very affected the changes and oscillations of the international prices. 4.3.3.Suriname’s Trade markets origin andby destination

4.3.3.1. Trade market by countriesby origin and destination 4.3.3. Trade markets Exports

4.3.3.1. Trade markets by countries The General Bureau of Statistics does not publish the list of exports by country destination because of confidentiality reasons. Exports The International Monetary Fund published table 12, which focuses on Suriname’s exports by countries period 2003-2007. Thisthe table illustrates main destination export destinations. The Generalduring Bureauthe of Statistics does not publish list of exports bythe country because of United Nations was the first destination in 2003 (21.0% of the total), followed by Norway confidentiality reasons. (16.5%). Norway was the first export destination from 2004 to 2006, although in 2006, its exports were at the same level as the United States and Canada. Canada has experienced important growth as Suriname’s export destination during the whole period, going from 0.1% in The International Monetary Fund published table 12, which focuses on Suriname’s exports by countries 2003 to 23.0% in 2007. during the period 2003-2007. This table illustrates the main export destinations. United Nations was the destination in 2003 (21.0% the Suriname total), followed by Norway (16.5%). the first Thefirst main conclusion of this data isofthat exports its products to Norway very fewwas countries and is destination very dependent on Canada export from 2004 to 2006,acceptance. although in 2006, its exports were at the same level as the United States and Canada. Canada has experienced important growth as Suriname’s export destination during the whole period, going from 0.1% in 2003 to 23.0% in 2007. “Macro-Economic Review of Suriname 1999-2008”

57

The main conclusion of this data is that Suriname exports its products to very few countries and is very dependent on Canada acceptance.

Table 12. Suriname Destinations of Exports in % of Total. Period 2003-2007 Suriname: Destinations of Exports In % of Total Description "03 "04 "05 "06 Total Exports 100.0% 100.0% 100.0% 100.0% Selected Industrial Countries United States 21,0% 15,4% 16,8% 17,8% Norway 16,5% 29,7% 23,9% 17,8% France 9,1% 8,6% 8,1% 6,0% Iceland 4,3% 3,8% 2,8% 3,7% the Netherlands 3,7% 2,0% 2,6% 2,7% Japan 1,9% 1,4% 1,2% 0,6% Canada 0,1% 12,6% 16,4% 17,5% Western Hemisphere Trinidad & Tobago Barbados Jamaica Guyana

"07 100.0% 12,1% 14,4% 5,4% 2,2% 1,9% 0,6% 23,0%

2,2% 1,7% 1,1% 1,4%

2,1% 1,3% 0,9% 1,3%

2,2% 0,7% 1,1% 1,4%

10,9% 1,7% 0,5% 1,9%

7,2% 1,8% 0,5% 1,6%

Other Countries 37,0% Source: Statistical Appendix form IMF August 2008

20,9%

22,8%

18,9%

29,3%

Imports Imports The General Bureau of Statistics publishes the list of imports by country of origin. In accordance with this list, the United States has been the most important trade partner of The Generalsince Bureau Statistics publishes the list of imports by country of accordance Suriname theofbeginning of the period examined (2001-2006); theorigin. only In exception waswith in

this list,when the United States has been the most important trade partner of Suriname since theimportant beginning 2002 the Netherlands ranked higher. The Netherlands was the second most trading partner until 2004 (and even the first in 2002), but since 2005, it has ranked in theranked third of the period examined (2001-2006); the only exception was in 2002 when the Netherlands position. After the Netherlands, Trinidad and Tobago always ranked third until the year 2004; in higher. The2006, Netherlands wasthe thesecond secondtrading most important 2005 and it became partner. trading partner until 2004 (and even the first in 2002), but since 2005, it has ranked in the third position. After the Netherlands, Trinidad and Tobago Two curious casesuntil are the the year Netherlands Antilles Thethe Netherlands Antilles was the always ranked third 2004; in 2005 and and 2006,China. it became second trading partner. fourth ranked trading partner in 2001, but since 2003, it has lost its influence and is now in the eighth position. China is also a good example of the opposite case. In 2001, China was in the Two cases the2003, Netherlands Antilles and China. The In Netherlands the China fourth sixthcurious position, but are since it has increased its influence. 2006, as aAntilles matter was of fact, was already in the fourth position as one of Suriname’s most important trading partners. ranked trading partner in 2001, but since 2003, it has lost its influence and is now in the eighth position. alsoorigin a good opposite In 2001, China in the sixthMonetary position, Table 13China showsis the ofexample imports of bythe country, in case. accordance with the was International but since 2003,The it has increased influence. In 2006, as aBureau matterof of Statistics, fact, Chinaalthough was already in are the Fund figures. outcomes areitssimilar to the General there slight position differences. For inmost this table: fourth as one of example, Suriname’s important trading partners.

o The Netherlands has been the second most important trading partner until 2007, with the Tableexception 13 showsofthe origin and of imports country, in accordance with the International Monetary Trinidad Tobago by in 2006. Fund figures. The outcomes are similar to the General Bureau of Statistics, although there are slight o After the Netherlands, Trinidad and Tobago has always been Suriname’s third ranking differences. example, table: of 2006, when it was the second one. trading For partner with in thethis exception

TheNetherlands Netherlands Antilles in the eighth ranking trading positionpartner in 2006 and 2007. Inthe other years • o The has been theissecond most important until 2007, with exception of the period examined appears in a lower position. of Trinidad and Tobago in 2006. 58


• After the Netherlands, Trinidad and Tobago has always been Suriname’s third ranking trading partner with the exception of 2006, when it was the second one. • The Netherlands Antilles is in the eighth ranking position in 2006 and 2007. In other years of the period examined appears in a lower position. Table 13. Suriname Origin of Imports in % of Total. Period 2003-2007 Suriname: Origin of Imports In % of Total Description "03 "04 "05 "06 Total Imports 100.0% 100.0% 100.0% 100.0% Selected Industrial Countries United States 30,1% 26,5% 24,4% 30,0% the Netherlands 17,8% 19,6% 14,5% 20,3% Japan 6,1% 6,7% 4,3% 3,6% Germany 2,9% 2,4% 2,2% 1,7% United Kingdom 2,6% 2,7% 1,7% 0,5% Belgium 2,1% 2,4% 2,1% 0,5% Italy 1,3% 0,6% 0,8% 0,2% Canada 0,7% 1,6% 0,9% 0,8% Western Hemisphere Trinidad & Tobago China Brazil the Netherlands Antilles Panama

"07 100.0% 31,7% 20,4% 3,6% 1,1% 0,4% 0,5% 0,8% 0,8%

11,0% 7,1% 2,6% 0,5% 0,1%

13,7% 4,6% 4,2% 0,7% 0,0%

10,5% 5,4% 3,6% 0,6% 0,0%

22,5% 4,8% 2,8% 1,6% 1,4%

17,9% 4,8% 2,9% 1,5% 1,2%

Other Countries 15,1% Source: Statistical Appendix form IMF August 2008

14,3%

29,0%

9,3%

12,4%

4.3.3.2. Trade market by regions

4.3.3.2. Trade markets by regions

The official statistical data, obtained from the General Bureau of Statistics, analyzes Suriname’s trade by regions. The following three regions are the most important in the Suriname’s trade The officialNAFTA, statisticalEuropean data, obtained from General Bureau Statistics, analyses Suriname’s relations: Union andthe CARICOM. The of trade with MERCOSUR is verytrade low and the trade with ASEAN countries is even lower. Trade figures with Spanish-speaking Latin by regions. The following three regions are the most important in the Suriname’s trade relations: American countries are not specifically listed, and it can be assumed that this trade is included NAFTA, European Union of and CARICOM. The trade with MERCOSUR is very low and the trade with inside the ABS figures trade with Unknown Countries. ASEAN countries is even lower. Trade figures with Spanish-speaking Latin American countries are not Period 1996-2000 specifically listed, and it can be assumed that this trade is included inside the ABS figures of trade with Unknown Exports Countries.

European Union and NAFTA regions exchanged the first export position throughout various Period 1996-2000 years of this period. The EU export value in 1996 was USD 119.4 million, and in 2000, it was USD 157.5 million. Similarly, the export value of the NAFTA region rose from USD 130.7 Exports million in 1996 to 151.8 million in 2000. The third export market was the CARICOM region; however, it had small figures and did not increase much during the period, going from only USD 34 million in 1996 to USD 36.2 million in 2000. European Union and NAFTA regions exchanged the first export position throughout various years of this period. The EU export value in 1996 was USD 119.4 million, and in 2000, it was USD 157.5 million. Imports Similarly, the export value of the NAFTA region rose from USD 130.7 million in 1996 to 151.8 million in Total imports increased by only a small extent during this period. In 1996, its value went from 2000. The third exporttomarket was the CARICOM figures and didinnot inUSD 502.1 million USD 526.9 million. Thisregion; is due however, to the factit had that small imports decreased 1999 crease much during the period, going from only USD 34 million in 1996 to USD 36.2 million in 2000. and 2000. “Macro-Economic The NAFTA region is the main origin of Review imports of toSuriname Suriname,1999-2008” going from USD 191.8 million in 1996 to USD 149.3 million in 2000, although its value has decreased since 1999. In 2000,

59

Imports Total imports increased by only a small extent during this period. In 1996, its value went from USD 502.1 million to USD 526.9 million. This is due to the fact that imports decreased in 1999 and 2000. The NAFTA region is the main origin of imports to Suriname, going from USD 191.8 million in 1996 to USD 149.3 million in 2000, although its value has decreased since 1999. In 2000, imports from the European Union ranked first place with an import value of USD 152.2 million. The European Union was the second market for the remainder of the years during this period. Since 1998, imports from the EU decreased. The CARICOM region experienced different fluctuations, increasing in 1996 and 1997, decreasing in 1998 and 1999 and again increasing strongly in 2000 with an import value of USD 106.8 million. Trade balance. This data concludes that the trade balance with NAFTA and the European Union was negative from 1996 to 1999 and positive in year 2000. On the other hand, the trade balance with the CARICOM region was negative during the whole period. Period 2001-2006 Exports In this period, the export structure changed with respect to changes in export regions in the previous period analysed. The NAFTA region has been the first destination for Suriname’s exports during the whole period (with the exception of 2002 and 2003), going from USD 118.6 million in 2001 to USD 333.3 million in 2006. The European Union has been the second highest destination of Suriname’s exports, although in 2003, it was in the first position. Exports to EU grew continually from USD 96.3 million in 2000 to USD 287.1 million in 2006. It is important to mention the significant increase of exports to the CARICOM region during this period, especially in 2005 and 2006, when figures rose from USD 37.8 million in 2001 to USD 197.7 million in 2006. Imports During this period, the NAFTA region continued to be the first ranked origin of Suriname’s imports, with several up and downs during 2001 to 2004, when positions were exchanged with the European Union market. However, since 2005, imports from NAFTA increased considerably and obtained a steady first position, rising from USD 123.4 million in 2001 to USD 315 million in 2006. The European Union continued to be the second highest import market during this period, rising from USD 120.1 million in 2001 to USD 241.3 million in 2006. The CARICOM region is the third ranked import market, valuing USD 90.4 million in 2001 to USD 245.2 million in 2006. 60


Trade balance. As a result of this data, the trade balance with NAFTA was positive in 2004 and 2006 and negative in the rest of this period; the trade with the European Union was negative from 2001 to 2003, but the tendency changed in 2004, and since then, the trade balance with this region has become positive. In the case of the CARICOM region, the trade balance during this period has been negative with the exception of 2002.

4.3.4.

Main conclusions and measures to take from the trade analysis

Conclusions Trade balance • Traditionally negative trade balance since 1996 • Exports in period 1996 to 2000 had an irregular behaviour. This behaviour changed in period 20012006 when more growth took place • The trade balance situation is highly dependent on a few products and is affected by the oscillation of international prices in the mining sector. Trade by products • Six products represent around the 85% of the total exports • Trade is heavily concentrated in mineral products, particularly alumina, gold and crude oil; alumina is the main exported product • Machinery and transport equipment is a key import sector. Trade by countries and regions • Suriname exports their products to a only few countries and is very dependent on Canadian acceptance • The USA is the most important import origin country, even before the Netherlands • The Netherlands Antilles has lost influence as an import country; the opposite case is China • NAFTA and European Union are the main regions for Suriname’s exports and for imports to Suriname • The CARICOM region is not the main trade market of Suriname • There are insignificant trade relations with Brazil and the Spanish speaking countries; at this time, Suriname is not capitalizing on the opportunities to make trade with all these countries • There is an inadequate use of Suriname’s multicultural advantage to make trade relations with African and Asian countries


61

Some measures that could be taken for the improvement of trade Some measures could be taken for the improvement of trade in relation to the advantages of international agreements and the promotion of Suriname’s presence abroad, such as the following: Make use of the advantages given by international treaties signed by Suriname, as well as the advantages of EPA and the CARICOM market. Promote exports of those products in which Suriname has a comparative advantage. Increase the presence of commercial offices attached to the Suriname Embassies in the CARICOM, Europe and the USA. Promote the commercial image of Suriname abroad. Significant improvements have to be done in restructuring the current public and private sector web pages. The SBF/SBC web page has to contribute to the promotional trade image of Suriname abroad. Implement the EPA regulations and the WTO, CARICOM and Free Trade agreements. Implement the bilateral CARICOM agreements with Cuba, Costa Rica and Canada. Enhance the trade information, publications and analytical documents to give to investors and members of the private sector. Implement training programs addressed to negotiators in order to achieve smoother international negotiations. Strengthen the human resources and the building capacity of the Ministry of Trade. Build up open market policies. Increase the quality of the products to be exported, according to the international standards.

62


5. Issues and platforms for discussions on regional and global trade 5.1.

SURINAME PERFORMANCE FACE TO THE CARICOM CHALLENGES

On July 4th, 1995, Suriname became the 14th Member State of the Caribbean Community and CARICOM regional integration system. The previous section analyzed the main regions of Suriname’s trade market; one of the main conclusions obtained from the ABS statistical data is that CARICOM countries are not the main trade market of Suriname. This fact explains the slow process of Suriname’s integration in the CARICOM Single Market and Economy System. The Ministry of Trade and Industry is the focal point for CARICOM issues. This Ministry is in charge of analyzing how to drop the existing trade barriers for regional commerce, as well as to observe the current regional discriminatory rules and procedures existing in other Ministries. This Ministry must also check to see if Suriname is acting correctly according with the CARICOM law. In this role, the MIT has to involve the public and private sectors as well as the NGO’s. In the regional division of work, Suriname has the responsibility to deal with regional crosscutting issues In addition; the CARICOM Competition Commission has been recently established in the country.

5.1.1.

Main Challenges of Suriname in the regional integration

The following are the main challenges of the CARICOM regional integration process that Suriname has to take into consideration, because all these aspects will affect the future evolution and development of its domestic and international economic relations: 1. The implementation of the Caribbean Single Market and Economy (CSME). The CSME was formally established on January 1st, 2006, and has to be fully in place by 2015. The European Commission has supported the implementation of the CSME with the project entitled “CARICOM/CARIFORUM Action Plan Support and Implementation of the CARICOM Single Market and Economy (CSME)”. The implementation of the CSME involves completing the following seven components of the CSME working Programme: a) Establish a legal and institutional framework of the CSME.


63

This component of the CSME program implies that measures will be taken to: • Strengthen the Legal and Institutional Development Division of the CARICOM Secretariat • Strengthen the competition policy and fully implement a Competition Commission • Develop a regime for free circulation in the CSME • Ensure adequate facilities and provision of the Legal Knowledge Centre • Regulate the Customs laws and procedures • Support the legal framework and administration of the Intellectual Property in the CSME. b) Improve the National Treatment and Market Access This component of the CSME programme requires that measures will be taken to: • Implement a transparent policy and establish legal arrangements relating to anti-dumping situations • Complete the regional legal and institutional framework of the sanitary and phytosanitary regulations • Establish regulation for trade in genetically modified organisms • Establish and operate a common system of registration of companies and other legal entities. c) Improve the macro-economic and sector policies coordination This component of the CSME programme presupposes that measures will be taken to: • Create and implement a Monetary Integration Treaty and the Monetary Union • Clarify and develop a comprehensive framework policy and achieve fiscal harmonization • Set up and implement a Development Fund for disadvantaged countries, regions and sectors • Establish a common market-economy framework of commitments, rules and disciplines for the goods produced in the CSME industries • Implement a coordinated CSME industrial policy • Implement measures for the integration of SME’s into the CSME • Develop common agriculture policies and programs • Identify CSME industries/commodities which are competitive or can achieve and maintain international competitiveness • Establish a regional stock exchange system.

64


d) Develop and Implement the business facilitation measures in the CSME • Provide services related to the harmonization of regional standards with respect to products, practices and processes in CARICOM Governments and private enterprises services • Improve the customs administration procedures to facilitate business transactions and the crossborder movement of goods. e) Protect the stakeholders interests and promote stakeholders welfare This component of the CSME programme seeks for measures will be taken to: • Promote and protect the interest of labour and the free movement of the CSME working population • Strengthen government and non-government consumer organizations • Improve consumer education • Strength economic integration in a safe environment. f) Develop CSME administrative capacity at national and community levels This component of the CSME programme seeks to: • Introduce new processes, practices and procedures to develop the CSME administrative capacity • Strengthen public sector management and CSME focal points in each country. g) Public Education Programme for the CSME This component of the CSME programme implies that measures will be taken to: • Improve the public education programmes of each CARICOM country member • Educate the Non State Actors in the knowledge of the CSME • Implement actions for improving the CSME knowledge within the Caribbean population. h) Strengthen the programme management and administration system This component of the CSME program endeavors to foster all kinds of actions that would contribute to and enhance the management capacities of the CSME.


65

2. The common tariff and the intraregional trade policy This is an important aspect to consider because the Common External Tariff (CET) is the primary instrument of the Community’s external trade policy, which provides for common tariffs on extraregional imports. Provisions were already made for macro-economic policy convergence, related to greater fiscal discipline, low inflation rates, exchange rate stability, favorable balance of payment positions and coordination and harmonization of fiscal policies (including double taxation agreements), financial convergence (including banks, non-bank financial intermediaries and securities) and investment policy co-ordination (fiscal incentives to the industry and a regional investment code). In addition, tariff barriers to the free movements of goods have been eliminated. However, non-tariff barriers still exist and hamper the completely free movement of the intra-regional trade flow. The improvement of all these aspects, as well as the elimination of some market distortion instruments which still remain, will benefit the intra-regional trade policy. 3. The concept of supra-sovereignty The Caribbean Community is an association of sovereign States, unlike the supranational EU. The revised Treaty for the achievement of the Common Single Market and Economy does not create rights and obligations for the Caribbean Community members, and this makes it more difficult to develop a strong regional integration process. 4. The homogenization of the Caribbean legal framework. The strengthening of the Caribbean Court of Justice is very important for the implementation of the CSME and the homogenization of the Caribbean legal framework. Therefore, the Member States of CARICOM are required to implement all the international agreements referring to the Caribbean Court of Justice in their domestic jurisdictions before their nationals can enjoy the rights of such agreements. Completion of this process requires an effort in terms of enactment of a series of legislative instruments by the national assemblies of the Member States. Sometimes, like in the case of the Appellate Jurisdiction, Member States are obliged to carry out constitutional amendments that require large majority support within the Parliaments chambers. 5. The competition policy Competition policy is essential for the completion of each internal market. The main reason for the internal market is to allow firms to compete on the same playing field in all Member States. The competition policy encourages economic efficiency by creating a favorable climate of innovation and 66


technical progress. The CARICOM Competition Commission was settled in Suriname per January of 2008 but now needs to be fully implemented. It is important to recall that EU level competition rules have been always applicable at the national level. It is unlikely that CARICOM Member States would wish to reduce their sovereignty in the field of competition. 6. The completion of the intraregional structure In the 1999, the Heads of Government of the Caribbean Community agreed that “the structure and functioning of the Secretariat should be reorganized and strengthened in key areas.” In January 2002, Leonard Archer´s report reviewed the institutional Caribbean integration process reform, as well as the structure and functioning of the Caribbean Community Secretariat. This report describes the main functions of the institutions after the restructuring process of the CARICOM Secretariat. The report also identifies necessities for change in the current Secretariat, as well as the functions of these components and the components that should be withdrawn. The report recommends immediately conducting a Comprehensive Performance Management audit of the current position in the Secretariat. The restructuring process of the CARICOM institutions has to be completed. 7. The coordination and the financial problems of the CARICOM institutions Another challenge for the CARICOM market is to improve the coordination among the regional institutions and bodies, as well as with the CARICOM Secretariat. Some of these institutions have also had difficulties in sustaining and implementing their plans and activities. This difficulty of ensuring stable funding affects their capacity to implement programs and projects. Some of these institutions are highly dependent on external funding. Additionally, many regional institutions have difficulties developing and implementing strategic plans, as they tend to be affected by countries’ needs and program/project external funding opportunities.

5.1.2.

Reasons for the integration

The main reason why the regional integration of Suriname in the CARICOM community is important for Suriname is because in our current world, regional integration is an important instrument for the development of countries. There are other important reasons as well; for instance, to be in favor of regional integration leads to economic and social advantages that a country can obtain after being integrated. The new European countries are good examples of the social and economic advantages that can be obtained after becoming members of the European Union. To be integrated in a regional market implies that a country will have access to a free and open unique market and that the economy will have free movements of capital, services, people and goods. It also “Macro-Economic Review of Suriname 1999-2008”

67

implies that a country will receive support and solidarity from other member countries, particularly in areas in which the country hopes to reach the same development goals. When a country is integrated within a regional market, the possibility of improving its infrastructures and intercommunications is also increased. This is especially important in the CARICOM region because of the serious intercommunication difficulties that already exist between the Caribbean countries. Other benefits of being within a regional integration community are related to the possibilities of having a common tariff, a common customs and a monetary union, as well as the possibilities of working in other different countries and being more integrated within the region and, in the case of Suriname, of being less dependent on the Netherlands.

5.1.3.

Suriname weaknesses within the CARICOM regional integration

Some of the many benefits that a country can obtain by being a part of a regional integrated community have previously been mentioned. However, Suriname’s position in CARICOM is not yet as strong as it should be. Suriname is involved in CARICOM meetings and has access to some funds, but the integration process is still slow. Some of the reasons for the weak position of Suriname inside of CARICOM come from its own peculiarities, such as being Dutch speaking country within a community formed by English speaking countries. This fact is especially important when talking about legislation. The CARICOM legal framework is based in the Anglo-Saxon British Common Law, whereas Suriname’s law follows the rules of the Dutch law. Not only is the law different, but the adaptation process of the CARICOM law to the Suriname law is slower than in other CARICOM countries because of the difficulties in the translation of English CARICOM laws to Dutch internal laws. As previously mentioned, flight communications between Suriname and other CARICOM countries is also a weakness. As a matter of fact, it is easier and even almost faster to make flight connections between Suriname and the Netherlands than with other neighbouring countries. The strong historical and cultural relations between Suriname and the Netherlands paired with the fact that Suriname has a small-scale market economy with a small population, makes Suriname quite dependent on the Netherlands. In a way, Suriname is quite an isolated country, especially with respect to its relations with Spanish speaking countries, many of which are very important markets from which Suriname could obtain the commodities that the country needs. In any case, the weaknesses mentioned above affect the level of competitiveness of the country. 68


6. Investment priorities for public, domestic and foreign direct investment 6.1.

DOMESTIC INVESTMENT

Table 14 illustrates the evolution of the domestic investment from 1996 to 2007. In accordance with the same methodology used in this study for the analysis of other economic aspects of Suriname, the assessment of the domestic investment will be split into different periods. In each period, attention will be concentrated mainly on the domestic investment of the main private sector and state company’s products; some aspects will be also mentioned in relation to the Government investment outside of the State companies. The periods to be analyzed are the following ones:

6.1.1.

Period 1996-2000

The main aspect to observe in this period is the fall of the total domestic investment, both private and public, from 1997 to 1998. The domestic investment has grown slowly during this period, rising from SRD 81.7 million in 1996 to USD 132.4 million in 2000. During this period, there were years (such as 1997 and 1998) with a decrease in the domestic investment in comparison to 1996. The private sector was quite small during this period. In 1996, the domestic private sector investment was SRD 29 million, but the amount of investment in the following years was even lower. In 2000, the domestic private sector investment only totalled SRD 22 million. In accordance with the information submitted by the National Planning Office in tables 14 and 15, almost the totality of the domestic private sector investment in this period was concentrated in the alumina sector. In percentage terms, the domestic private sector investment signified 35.8% of the total domestic investment in 1996; in 2000, this percentage was only 16.5%. The domestic investment of the State companies grew slowly from SRD 21.6 millions in 1996 to SRD 25.0 millions in 2000. This investment was concentrated in crude oil. The domestic investment of bananas was not significant in comparison to the investment in crude oil. In any case, during this period, the domestic investment of the whole private sector was quite similar to the domestic investment of the State companies, which was even lower in 2000. In this period, the levels of growth of the domestic investment from the Government were higher than the private sector and the State companies, going from SRD 30.9 million in 1996 to SRD 84.7 million in 2000. “Macro-Economic Review of Suriname 1999-2008”

69

The domestic investment of the public sector (out of the State companies) signified 64.2% of the total domestic investment in 1996; in 2000, this percentage was even higher, totaling 83.5%. Finally, it is necessary to mention that 2000 was the year in which the State enterprises and the Government domestic investments started a faster growth tendency when compared to the previous years. This important growth tendency continues in the following period analyzed (2001-2007).

6.1.2.

Period 2001-2007

The main aspect to observe in this period is the large increase in the total domestic investment since 2003, although there was a significant decrease in 2007. 2004 and 2005 were two booming years, which allowed the domestic investment to grow from SRD 196.4 million in 2001 to SRD 998 million in 2005, although it decreased to SRD 750.7 million by 2007. The booming years of 2004 and 2005 allowed the private sector to increase its domestic investment from SRD 47 million in 2002 to SRD 682 million in 2004. This investment was concentrated mainly in two products—alumina and gold. However, since 2005, the domestic private sector investment decreased to SRD 298 million in 2007. In percentage terms, the domestic private sector investment signified in 2001 was 23.2% of the total domestic investment; in 2007, this percentage already totaled 39.7%. However, the domestic private sector investment still had a very low percentage for modern economies. The domestic investment of the State companies also started to increase since 2003, and this growing tendency was maintained until 2007. Like in the previous period analyzed, the domestic State companies’ investment was concentrated in crude oil. The domestic investment in bananas, although less significant in comparison with the investment in crude oil, had important amounts in 2003 (SRD 45.6 million). In any case, in this period, the domestic investment in bananas sector was greater than in the previous period analyzed. The public sector domestic investment (out of the State companies) started to grow considerably from 2004 to 2006, with a slight decrease in 2007. The total public sector, including the State companies, totaled 76.8% in 2000; in 2007, this percentage decreased to 60.3%, which is still high in comparison with more dynamic and modern economies.

70


The public sector domestic investment (out of the State companies) started to grow considerably from 2004 to 2006, with a slight decrease in 2007. The total public sector, including the State companies, totaled 76.8% in 2000; in 2007, this percentage decreased to 60.3%, which is still high in comparison with more dynamic and modern economies. Table 14. Domestic Investment in mln. SRD (1996-2007) 1996

1997 1998 1999 2000 2001 2002 2003

2004 2005 2006 2007

29 29 -

18 18 -

682 355 289 6 26 5

21,1 0,5 21,6 30,9 52,5

TOTAL 81,7 Source: obtained from NPO

PRIVATE SECTOR Alumina Aluminium Gold Rice Shrimp Fish Tourism Crude oil Bananas STATE COMPANIES

GOVERNMENT T. PUBLIC SECTOR

-

16 16 -

21 21 -

22 19 3 -

46 30 15 -

11,5 2,6 14,1 19,6 33,7

3,6 1,6 5,3 21,8 27,1

6,9 1,0 8,0 50,6 58,6

25,9 86,7 0,0 3,7 25,9 90,4 84,7 60,5 110,5 150,8

62,1 3,7 65,9 73,9 139,7

71,3 101,2 45,6 17,2 116,9 118,4 89,4 155,4 206,3 273,8

51,7

43,1

79,2

132,4

186,5

479,6

196,4

47 37 10 -

273 37 226 10 -

955,3

559 445 77 6 26 5

416 299 77 6 29 5

177,5 198,0 22,7 11,2 200,1 209,3 238,7 305,7 438,8 515,0 998,0

930,9

298 86 121 7 31 54 187,8 16,7 204,5 247,8 452,3 750,7

Table 15. Domestic investment Relative weights in % (1996-2007)

1996

1997 1998 1999 2000 2001 2002 2003

2004 2005 2006 2007

PRIVATE SECTOR Alumina Aluminium Gold Rice Shrimp Fish Tourism

35,8 35,8 -

34,9 34,9 -

37,2 37,2 -

26,1 26,1 -

16,5 14,0 2,5 -

23,2 15,4 7,8 -

25,1 20,0 5,1 -

57,0 7,8 47,2 2,0 -

71,3 37,2 30,3 0,6 2,7 0,5

56,0 44,6 7,7 0,6 2,6 0,5

44,7 32,1 8,3 0,7 3,1 0,6

39,7 11,5 16,1 0,9 4,1 7,2

Crude oil Bananas

25,8 0,6 26,4 37,8 64,2

22,2 5,1 27,3 37,8 65,1

8,4 3,8 12,2 50,6 62,8

8,7 1,3 10,1 63,9 73,9

19,5 0,0 19,5 63,9 83,5

44,1 1,9 46,0 30,8 76,8

33,3 2,0 35,3 39,6 74,9

14,9 9,5 24,4 18,6 43,0

10,6 1,8 12,4 16,3 28,7

17,8 2,3 20,1 23,9 44,0

21,3 1,2 22,5 32,8 55,3

25,0 2,2 27,2 33,0 60,3

TOTAL 100,0 Source: obtained from NPO

100,0

100,0

100,0

100,0

100,0

100,0

100,0

100,0

100,0

100,0

100,0

STATE COMPANIES

GOVERNMENT T. PUBLIC SECTOR

6.1.3.

6.1.3.

Conclusions and measures for the future


Conclusions Conclusions These results highlight the important presence of the State in Suriname’s current economy. The domestic public sector investment is mainly made in the infrastructure sector, which These results highlight theand important of theThe State in Suriname’s current The includes roads, bridges other presence components. State also controls, in a economy. monopolistic domestic public sectorsectors investment made the infrastructure sector, which includes way, many economic such is as mainly electricity andinwater. Telecommunications has been also under the Stateand hands until recently when the market was opened to private enterprises. roads, bridges other components. The State also controls, in a monopolistic way, many economic sectors suchsector as electricity water. Telecommunications has production been also under the State hands until The public controlsand other economic sectors, like the of crude oil (through the recently when the market was openedcompany) to private and enterprises. Staatsolie Maatschappij Suriname the bananas sector, although in the latter case, the Government is now talking with a French company in order to privatize this sector. The controls sectors, contributes like the production of crude of oil the (through the The public strongsector presence of theother Stateeconomic in the economy to the distortion market’s Staatsolie Maatschappij Suriname company) andofthe sector, although in theeconomies, latter case, the the mechanisms and affects the competitiveness thebananas economy itself. In modern State has a facilitator role to ensure that economy functions smoothly, as well as to Government is now talking with a French company in order to privatize this sector. internationally support the promotion of private enterprises and national products.

It is evident that, depending on different Review politicalofstreams, a country can have a more liberal or “Macro-Economic Suriname 1999-2008” socially democratic mind. Depending of any of these two mindsets, the main social services, such as education, health and other vital social sectors of the economy, can be more or less

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The strong presence of the State in the economy contributes to the distortion of the market’s mechanisms and affects the competitiveness of the economy itself. In modern economies, the State has a facilitator role to ensure that economy functions smoothly, as well as to internationally support the promotion of private enterprises and national products. It is evident that, depending on different political streams, a country can have a more liberal or socially democratic mind. Depending of any of these two mindsets, the main social services, such as education, health and other vital social sectors of the economy, can be more or less privatized. Depending on the political vision of the country, the State can maintain a kind of moral and ethical control on the economy, assuring that businesses are made in accordance with fair earnings. In both cases, the economy has to function with transparency and the State has to constantly ensure the well functioning of the main public services; it also must give preference to the productive economy rather than the speculative economy. Private domestic investment is mainly focused on the construction, tourism, agriculture and forestry sectors. The main conclusion is that the private sector presence in the economy of Suriname has traditionally been very small, as it will be explained later on in this study. Even though the private domestic investment grew tremendously in 2004, it was due to temporary and external factors, mostly as a consequence of the investment made in the alumina and gold sectors and also thanks to the favorable evolution of their international prices. Significant domestic private investments do not yet exist in the productive sectors of the economy, and this is one of the reasons why Suriname’s economy is highly dependent on imports. This is also why a great number of entrepreneurs in Suriname are working in trade business in order to avoid the possibility of large business risks. The incomplete legal framework, the hard procedures that are required to obtain a license to start a business, the inadequate infrastructures, the difficulties in obtaining financial credits from the banks, and the weaknesses of the entrepreneurial sector are some of the main reasons for the low levels of the domestic investment of the private sector. Measures to be taken It is necessary to foster a global and comprehensive strategy for the promotion and development of the private sector. At the same time, the Investment Agency has to be completely implemented and fully working.

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6.2.

FOREIGN INVESTMENT

Foreign Direct Investment in Suriname is mainly located in the big business sectors (bauxite, gold and oil) and is made by multinational mining sector companies. Apart from this sector, foreign investment is becoming important in the tourism sector. Suriname has stabilized its macro-economic situation in the last years thanks to some measures that have contributed to the increase in the interest of foreign investors. For example, the introduction of a new currency in 2004; the stability in the exchange rate; and the creation of an one-stop window by the Chamber of Commerce to assist the future investors has contributed to the increase. Furthermore, the measures taken to rationalize the commercial lending rates and the new banking law in May 2005 have influenced the interest of Suriname’s foreign investors. The revision of the Investment Law that took place in 2001 was an important effort to modernize the system and attract the foreign investors, although this law has not yet been implemented. In the last years, substantial foreign investment has been located in the bauxite and mining sector, thanks mainly to the USD 130 million dollars worth of investments made by the bauxites companies SURALCO L.L.C. and BHP Billiton in 2005; USD 90 million dollars worth of investments made in the gold sector, by the Cambior Canadian Gold company; the new investments in the exploration of new gold areas; the investments of Repsol YPF and Mearsk for offshore oil exploration; and the investments of the new Marriott hotel in the tourism industry11. Conclusions In spite of these important recent investments, Suriname is not yet a favorable country for foreign investments because many constraints remained unsolved, chiefly weak infrastructure, unpredictability in the legal framework, complexity in the tax system, rigidities in labor laws, administrative bureaucracy and difficulties in arranging industrial licenses. This also means that the economic rules of Suriname do not contribute to free commerce.

6.2.1.

Legal commercial framework

Current commercial legislation is old and not completely adapted to the new needs of the international economy. The legal uncertainties that create this situation do not contribute to the attraction of foreign investment. In 2001, the Government prepared a new Investment Law and a new investment agency called InvestSur. However, the Investment Law could not be implemented because this law did not properly answer the 11 Statistical data obtained from the US Department of State.


73

investor’s needs; additionally, the InvestSur agency was not completely implemented. In May 2003, the Foreign Investment Advisory Service (FIAS)12 wrote a paper which explained the main constraints of the Investment Law and the InvestSur agency. In the FIAS’s opinion, the Investment Law of 2001 emphasized fiscal incentives and established tax and not-tax incentives to stimulate investments. However, attention was not given to the creation of a real investment environment that could attract foreign investors. This law did not provide an alternative dispute resolution mechanism for foreign investors, thus limiting their access to international arbitration. Additionally, foreign investors did not experience treatment in accordance with the international law, nor did domestic investors experience such benefits. Reforms are urgently needed in the commercial legislation. The rest of the commercial legal framework is incomplete or old. For example, a Company Law from 1838 still exists. In Suriname, it is necessary to enact new commercial laws; for example, a Competition Law, Consumer’s Rights Act and Tourism Law are necessary. These laws are very important for improving investments and for developing the economic system. These laws have to be enacted and have to be more in favour of supporting the private business initiatives. They also must be more in accordance with the procedures and quality standards demanded by the international markets. Without these laws, it is not possible to go too far in the current international economy. Nevertheless, the reform process goes very slowly, and this seems to indicate that there is little pressure to achieve law reform. For example, in 2004, the Government adopted the Standard Law with the intention to create the Standards Bureau, and not sufficient actions have been taken to implement this institution. In the meantime, this situation of incomplete commercial legal framework causes a lack of transparency, law insecurity, and investment risks for local and foreign investors. As a result, the current commercial legal situation creates juridical insecurity and hinders foreign investors. Nevertheless, an Anti-Corruption Law and an Anti-Corruption Working Group does exist. Moreover, Suriname has ratified the Inter-American Convention against Corruption. In addition, Suriname has signed an investment incentive agreement with United States and some bilateral investment treaties with various European and Asian countries. It has also signed the treaty of Chaguaramas as a member of CARICOM and, consequently, of the CSME. 12 The paper of FIAS was entitled: “Review of the ‘InvestSur’ initiative to strengthen Suriname´s investment climate”

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6.2.2.

The information system

Another aspect to acknowledge is that statistical data does not completely reflect reality within the country. The information is still not completely structured, transparent and free flowing; furthermore, it is not yet standardized and in accordance with international standards. There are several reasons which explain this situation. For example, the private sector is reluctant to submit all economic figures to the public sector; additionally, the public sector does not have the complete capacity to collect all of the information needed, such as controlling the entrances of all goods and visitors to the country. However, the General Bureau of Statistics has improved in the last years, and hence the quality of the statistical data offered to the public and private institutions has also improved, thanks to the support of a the Netherlands cooperation. However, some aspects are not yet covered by the official ABS. In addition, the statistical information has to be better prepared in order to improve the accessibility for researchers and analysts who need this information for the elaboration of their studies. Consequently, the weaknesses of the statistical data affect the possibilities of growing FDI. Foreign investors need to have confidence that the statistical data reflects true reality within the country. In practice, plans and strategies based in incorrect statistics data are not useful for the development and improvement of countries. Additionally, incorrect data also affects decision-making processes because policy makers cannot devise correct solutions to problems if they have incorrect primary sources of information. Measures to be taken for attracting direct foreign investment. In respect to the public sector support to the FDI. • Remove the administrative barriers and trade obstacles that hinder foreign investment, especially the bureaucratic procedures in the registration and licensing formalities. • Guarantee the foreign investors will receive treatment according to the international rules and standards. • Offer better competitive advantages and incentives to foreign investors than the advantages that neighbouring countries can offer. • Improve the infrastructures for better facilitation of new business while still respecting the environment, especially in the interior of the country in areas close to ecotourism influence. • Identify branches and economic sectors that can contribute to stimulating foreign investment. • Reduce the labor rigidities, legal insecurity and other investment risks, which affect the improvement of the FDI.


75

In respect to the investment promotion • Create an Investment Promotion Agency that assists and gives services to investors and facilitates access to the foreign investment within Suriname. • Create a commercial legal environment that favours direct foreign investment. • Develop more efficient judiciary procedures in which investors are involved. • Develop a specific national strategy and action plan for stimulating and promoting investment and attracting foreign investors. In respect to the legal framework • Foster the creation of a new investment law in accordance with the needs of international trade and develop a legal commercial framework favourable to the investment development and business environment.

6.3.

NET FOREIGN DIRECT INVESTMENT IN SURINAME AND OTHER LATIN AMERICA AND CARIBBEAN COUNTRIES

As previously analyzed, measures taken by the Suriname authorities in the last years have contributed to the increase of foreign investment rates. The United Nations Conference on Trade and Development (UNCTAD) published the “World Investment Report” in 2007. In this document, UNCTAD analyzes the inward and outward FDI performance and potential indexes for period 2005-2006. After analyzing 141 countries, UNCTAD ranks Suriname in the third position in both years, at the top of 20 ranking countries with better inward FDI performance during the period. As UNCTAD mentions, this ranking is based on “indexes derived using three-year moving averages of data on FDI inflows and GDP for the immediate past three years, including the year in question.” The potential index used by UNCTAD is based on a set of 12 economic and policy variables. In accordance with this index, Suriname is placed in ranks 95th in 2004 and 91st in 2005. In year 2005, UNCTAD classified the countries into a matrix of inward FDI performance and potential. This matrix distinguishes the following four categories of countries, depending if their levels of FDI performance and potential are high or low: “front-runners, above potential, below potential and underperformers”. According with this classification, Suriname belongs to the group of “above-potential” countries, because is a country with low FDI performance and high FDI potential. Finally, UNCTAD notes that Suriname’s FDI inflows in period 2004-2006 were as follows: USD 286 million in 2004, USD 399 million in 2005 and USD 323 million in 2006. However, UNCTAD does not offer the outflows figures and thus it is not possible to know the net Suriname FDI inflows during these years. 76


Moreover, in its comparative analysis of the current economic situation of Latin America and Caribbean countries, ECLAC measured the net direct foreign investment as the direct investment in the economy, minus the direct investment made abroad by the residents of that economy, including the reinvestment of utilities. In accordance with this ECLAC concept, Suriname had negative net direct foreign investment from 1999 to 2007, with the exception of 2005. In 2005, the country had a positive net investment value of USD 28 million. This negative direct foreign investment tendency has increased in the last two years, rising from USD -163 million in 2006 to USD -247 million in 2007 13.

Graphic 6. Net Foreign Direct Investment 50

28

0 -50 -100

*99 *00 *01 *02 *03 *04 *05 *06 *07 -27 -37 -62 -74 -76

-150

Serie1

-148

-163

-200 -250

-247

-300 YEARS 1999-2007

Source: own elaboration from ECLAC Economic Report 2008 2007 are preliminaires figures

This data is very important and has double implications. On one hand, it means that Suriname shows insufficient foreign investment. In other words, foreign investors are not coming to Suriname, as would be desirable for the economy. On the other hand, however, it also means that Suriname investors prefer to invest more abroad than in the country. This situation is the consequence of numerous constraints analysed in this study. When comparing Suriname’s net direct foreign investment with respect to other countries in the ECLAC study, the first conclusion is that Suriname has the lowest net direct foreign investment rates of the Latin American and Caribbean countries analyzed. As a matter of fact, Suriname is the only country that shows negative net direct foreign investment figures throughout the period examined. However, other countries experienced some negative net direct foreign investments. Venezuela is, after Suriname, the country with the most negative net direct foreign investment during period 19992007. More specifically, Venezuela had negative net foreign direct investment in years 2002 (USD -244 million), 2006 (USD -2,666 million) and 2007 (USD -1,591 million). Four other countries that had negative net foreign direct investment were the following: Barbados in 2004 (USD -16 million); Belize in 2003 (USD -11 million); Bolivia in 2005 (USD -294 million); and Brazil in 2006 (USD -9,380 million). 13 The ECLAC figures for 2007 are preliminaries.


77

However, other countries experienced some negative net direct foreign investments. Venezuela is, after Suriname, the country with the most negative net direct foreign investment during period 1999-2007. More specifically, Venezuela had negative net foreign direct investment in years 2002 (USD -244 million), 2006 (USD -2,666 million) and 2007 (USD -1,591 million). Four other countries that had negative net foreign direct investment were the following: Barbados in 2004 (USD -16 million); Belize in 2003 (USD -11 million); Bolivia in 2005 (USD With the exception of Barbados and(USD Belize, all CARICOM 294 million); and Brazil in 2006 -9,380 million).countries showed positive net direct foreign investment during period 1999-2007. More specifically, in 2007 the CARICOM countries with highest With the of Barbados and Belize, all CARICOM countries showed Bahamas positive net direct positive netexception direct foreign investment were: Trinidad and Tobago (USD 830 million); (USD 731 foreign investment during period 1999-2007. More specifically, in 2007 the CARICOM million); Antigua and Barbuda (USDnet 391 million); St. Lucia (USD 261 million); Guyana (USD 152 million) countries with highest positive direct foreign investment were: Trinidad and Tobago (USD and Kitts and Nevis (USD 143 million). However, as and was Barbuda previously(USD mentioned, Suriname 830 St. million); Bahamas (USD 731 million); Antigua 391 million); St.showed Lucia (USD 261 million); Guyana (USD 152 million) and St. Kitts and Nevis (USD 143 million). the highest net negative direct foreign investment (USD -247 million) of all countries analyzed in 1997. However, as was previously mentioned, Suriname showed the highest net negative direct foreign investment (USD -247 million) of all countries analyzed in 1997. Table 16 and graphic 7 compare the evolution of Suriname’s net direct foreign investment flows with TableLatin 16 and graphic compare the evolution countries of Suriname’s net2003 directand foreign other America and7Caribbean neighbouring in 2000, 2007.investment flows with other Latin America and Caribbean neighbouring countries in 2000, 2003 and 2007. Table 16. FDI in 8 CARICOM countries 2000-2003-2007 FDI (in millions of dollars) Year 2000 Year 2003 Year 2007 Colombia 2,069 783 8,658 Costa Rica 400 548 1,661 Guyana 67 26 152 604 0 Jamaica 394 Panama 624 818 1,825 953 613 1,698 Dominicana Rep. Suriname -148 -76 -247 654 1,034 830 Trinidad & Tobago Source: ECLAC, Latin America and the Caribbean Economic Report 2008

Graphic 7. Suriname Comparative Economic Performance

Haiti

Foreign Direct Investment %

Jamaica Guyana Trinidad & Tobago Suriname Costa Rica Panama Dominicana R. Colombia* -1000, 0

0,0

1000,0

2000,0

3000,0

FDI Year 2000

4000,0

5000,0

FDI Year 2003

6000,0

7000,0

8000,0

9000,0

FDI Year 2007

Source: ECLAC. Latin America and the Caribbean Economic Report 2008.

78


10000, 0

7. Financial sector 7.1.

FINANCIAL SERVICES: LIMITED SUPPLY

The banking system in Suriname is composed of a limited number of banks. Apart from the Central Bank, there are only eight main banks in Suriname, and three of them control the 85% of the financial market. These banks are the De Surinaamsche Bank, the Hakrinbank and the RBTT Bank. The latter bank is a foreign bank from Trinidad and Tobago in collaboration with the Royal Bank of Canada. In addition to these banks are the National Development Bank, five smaller banks (three of them owned by the State and two by the private sectors), the financial cooperative GODO and around 30 exchange houses (cambios). The financial sector in Suriname is still very traditional and does not contribute sufficiently to development. The conservative philosophy of Suriname’s banks causes them not to participate in any kind of financially risky activities, such as to support the development of the private sector. Most banks do not have risk analysis departments and they simply assume that the whole population is in a potentially risky situation. This implies that Suriname’s banks lack confidence in the capacity of the private sector to run the economy. Financial reforms are needed, but any financial reform has to be accepted by three main banks that are the main contributors to the current situation. The financial sector is not diversified in Suriname, although is now more stable and regulated than in the past. Normal banks are not in the position to assume the risks of private sector businesses and to demand to the entrepreneurs a letter of credit is a way to prevent them from access to credit. There are insufficient schemes for long-term development operations, as well as insufficient insurance companies in a position to cover the business risks of the new exporters. There are also insufficient banking institutions such as credit unions and rural development banks, which could offer support to private sector business development, especially in rural areas.

7.2.

UNFAVOURABLE FINANCIAL ENVIRONMENT FOR DOING BUSINESS

The financial credit capacity of Suriname’s banks is weak. Banks have financial capacity to lend medium size credits to medium and small enterprises. However, the opportunity to lend large credits does not exist. As a matter of fact, big entrepreneurs prefer to go to foreign banks for their financial needs, because the local banks are not be able to lend them money above certain limits. The major difficulty for the private sector is to have an interest rate between 10 to 16%, which is too high for many of them. Banks are also worried about the credits that they give to the private sector, particularly because many entrepreneurs are so small that they do not have enough capital to start a business and they do not have property titles to respond to these credits as a guarantee. Suriname lacks institutions that are specialized in giving small loans to small and medium size enterprises. The saving and credit cooperative GODO is the main institution working in this field. “Macro-Economic Review of Suriname 1999-2008”

79

7.3.

IRREGULAR SUCCESS OF THE REVOLVING FUNDS

In general, the market’s revolving funds, such as PIF, FTBPS, or IFunds, had inconsistent success in recovering money; their success also depended on the management of each particular financial institution. As previously mentioned, the private sector has traditionally had difficulties in accessing the credit system and the capital market in general. Nevertheless, although this is partially true, several kinds of credits and funds systems have been implemented in recent years. The National Development Bank (NOB) is one of the Banks that has been most active in the creation of a fund system. The NOB has implemented two types of funds, offering an interest rate lower than in the normal financial marker and guaranteeing participation funds. In the past, the private sector had the revolving Production Investment Fund (PIF). The PIF was a Governmental fund in which NOB was also involved, as well as the Agriculture Development Bank and the People Credit Bank (VCB). The idea of this fund was very reasonable, but the success of this fund was quite relative, due to the lack of good management in some of these institutions, which meant that many of these revolving funds were not paid back. In addition, in the period in which this PIF was used, the Government did not have the capacity to adequately control the financial sector and this credit was not always given to the people with the greatest need. The Fonds Technische Bijstand Particuliere Sector (FTBPS) is another fund of the NOB. This fund is a revolving fund in foreign currency with the intention of giving technical assistance to entrepreneurs in their training and management programs at a 0% interest rate. The average annual use of this fund is around €100,000. The Ifunds have been created instead the old PIF. This money comes from the Netherlands Government and is given to the National Development Bank (NOB) but not to ordinary banks. This is a revolving fund in foreign currency with the intention to minimize the exchange rate risk. This fund started in 1996 with €11.3 million. Local banks contribute 10%, the entrepreneurs’ own private funds contribute 20%, and the remaining 70% is financed by the fund. They are actually in the third generation of this fund, and during this period, 50 projects have been executed. One of the constraints of these Ifunds is that their system does not allow the private sector to have direct access to these funds; access can only be obtained through the NOB, as was previously mentioned. The NOB has currently reduced the concession of their funds because the money is limited. In any case, the intention of the NOB is to reactivate these guaranteed participatory funds and also to offer them for formal financial activities.

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The legislation for modernization of the financial sector is acceptable but still incomplete. The financial sector is now more regulated than in the past but is still waiting for full implementation to be more competitive and favourable towards business. The Central Bank rules the monetary policy of this country and has a high degree of autonomy but is not fully independent from the Government. The Government has the ability to fire the Director of the CB, although the Government has to follow the Banking Law (Bankwet). Additionally, it can only lend money from the Central Bank up to 10% of the national budget revenue. The CB has its own budget and does not depend on the Government for expending money, although the BC has limited the borrowing capacity and requires that yearly profit figures are provided to the Ministry of Finance. In addition, the Bankwet establishes that all liabilities of the CB need to be supported by foreign exchange and gold, totaling at least 50%. The exchange houses (cambios) are supervised by the Central Bank, but there is not yet an Act, which regulates their activities. Some financial laws are still in the drafting process and they would need to be enacted; for example, the Supervision of Banks Act, the Insurance Company and Pension Bank Act, the Exchange Houses Act, and the Money Transfer Institutions Act are not yet implemented. A new Foreign Exchange Act and the Investment Act should also be enacted. Apart from the private banks, as mentioned previously, the public National Development Bank (NOB) does not work with the traditional consumer banking activities. Its mission is to contribute to the development of the economy, financing and sustaining business activities (except trade). The NOB supports all kind enterprises, from the biggest to the smallest ones and from urban to rural areas. Until 2000, the monetary situation was very unstable. When the current Government obtained power in 2000, it took several macro-economic measures, as previously mentioned. Their chief goal was to uphold a monetary policy that would keep the exchange rate as stable as possible, as well as to achieve price stability through the monetary instruments. As a consequence of these measures, the economy is now more stable and the monetary situation has improved, in comparative terms, to before 2000. During the crisis period, a great part of the total amount of the Suriname’s money was sent abroad. The significant amounts of money that are now coming into the country, especially in the mining sector, have contributed to the fact that Suriname no longer has a monetary deficit as it was in the past. Capitalization of this money is allowing people to save in the banks. A high dollarization level still exists in the economy. Suriname’s economy started to be dollarized in the period of high inflation when the Suriname people lost faith in the SRD and bought dollars instead. This situation has now been improved, but around 50% of the economy is still dollarized. “Macro-Economic Review of Suriname 1999-2008”

81

7.4.

LACK OF MONITORING SYSTEM

Although the financial situation is now stable, Suriname does not have a financial monitoring system to guide businesses through the fluctuations of the exchange rate and interest rates and their likely impact on the economy. In the analysis of this section, the statistical data and other financial information obtained by the Central Bank, the International Monetary Fund and the Economic Commission for Latin America and the Caribbean has been taken into consideration. Foreign exchange rates have been stable since the creation of the new currency. The foreign exchange relations are mainly made in cash market. Suriname’s monetary authorities have tried to keep stabilize the exchange rate since 2005; in the last years, however, the pressure exerted on the exchange rate has been high and it has become more difficult to keep a stable exchange rate. Suriname currency is aligned with the dollar, although is not fixed in dollars terms. Other foreign currency is floating in the market. The last year’s dollar lower situation with respect to the euro has also affected Suriname in its economic relations with the Netherlands and other European countries that use the euro currency. Additionally, the money exchange houses (cambios) have also tried to push up the exchange rate as a way to obtain greater profits. Information obtained from the Central Bank on the 21st of November: - The Bank has a financial sector assessments in preparation - The Bank has prepared the following draft acts:

Foreign Exchange Act

Banking Supervision Act

Financial Institutions Act

Supervision of Insurance Companies Act Supervision of Pension Funds Act. The following table 17 shows the exchange rate figures of the national Suriname currency in relation to USD fixed by the Central Bank for the period 1994-2008 on December 31st, with the exception of 2008 (January 1st-August 31st).). Until 2004, the exchange rate values were related to the Suriname Guilder currency. In 2004, the country exchanged the old currency for the new Suriname Dollars. The following two observations appear very clearly from the outcomes of this table: first, the large deterioration of the national currency from 2000 to 2004 and secondly, the stable situation of the exchange rate from 2005 to today.

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this table: first, the large deterioration of the national currency from 2000 to 2004 and secondly, the stable situation of the exchange rate from 2005 to today.

Table 17. Average Exchange Rates for the U.S. dollar (USD) as fixed by Central Bank of Suriname Since 1994 on December 31st Year

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year 2004 2005 2006 2007 2008**

Claims Bought SRG Sold SRG 427.29 434.29 402.32 412.32 402.32 412.32 396.00 406.00 396.00 406.00 980.00 995.00 2,157.00 2,200.00 2,157.00 2,200.00 2,495.79 2,545.79 2,600.00 2,650.00 Claims Bought SRD Sold SRD 427.29 434.29 2,700 2,780 2,710 2,780 2,709 2,780 2,710 2,780

Banknotes Bought SRG Sold SRG 422.21 434.29 397.32 412.32 397.32 412.32 396.00 406.00 396.00 406.00 980.00 995.00 2,157.00 2,200.00 2,157.00 2,200.00 2,495.79 2,545.79 2,600.00 2,650.00 Banknotes Bought SRD Sold SRD 422.21 434.29 2,700 2,780 2,710 2,780 2,710 2,780 2,710 2,780

Customs Rates*

427.48 413.11 413.11 406.00 406.00 1,100.00 2,200.00 2,200.0 2,800.0 2,800.00 Customs Rates*

Source: Central Bank Statistics *These rates are used by customs as a basis for calculations on imports and exports tariffs. ** August 2008.

427.48 2.78 2.78 2.78 2.78

The value system of land property titles is a constraint to the development of the financial sector. Suriname, theproperty law establishes only the (building The valueInsystem of land titles is apossibilities constraint to to theobtain development of building the financial sector.

and planting rights), however it is true that not much use is being made of this legal

In Suriname, the law establishes possibilities to obtain only the building (building and planting rights), rule. In practice land property issues are hampering the private and financial sector. Especially however it isentrepreneurs true that not much usethey is being madecredits of this legal In practice property issuesThe are for small when request fromrule. banks to startland a new business. acquisition property titlessector. for the entrepreneurs in entrepreneurs rural areas is when also difficult, especially hampering theofprivate and land financial Especially for small they request credits in the indigenous territory (inhabited by Maroons and Amerindias) where the land belongs from banks to start a new business. The acquisition of property land titles for the entrepreneurs in rural historically to the “community.” In these areas, the entrepreneurs can obtain permission to use areas is also especially the indigenous territory (inhabited by can Maroons Amerindians) this land butdifficult, not to acquire theinproperty titles. Moreover, permission also beand cancelled when the communities change their local authorities. This situation makes it more difficult the where the land belongs historically to the “community.” In these areas, the entrepreneurs canfor obtain development of businesses in the interior of the country by the large enterprises. Nevertheless, permission to use this land but not to acquire the property titles. Moreover, permission can also be the land title value system does not greatly affect the micro-entrepreneurs because they have cancelled when the communities change their local authorities. This situation makes it more difficult for the development of businesses in the interior of the country by the large enterprises. Nevertheless, the land title value system does not greatly affect the micro-entrepreneurs because they have lower business development and because many of them are even working on the streets in the informal sector. Interest rates are now lower than in the past, but still they are in between 10% and 16%. Remittances. Most remittances come from the Netherlands. Although the remittances contribute to the enhancement of purchasing power in the economy, the majority of this money is used for buying land in the countryside.


83

7.5.

UNKNOWN RATES OF PERFORMANCE TO DETERMINE THE COMPETITIVENESS OF THE BANKING SECTOR

Suriname does not have yet a financial sector assessment. The Central Bank publishes quarterly reports on the evolution of monetary indicators, but studies that analyze the financial system of Suriname do not yet exist. The lack of sufficient performance rates to measure the competitive and comparative capacity of the financial sector is a main problem for investors, particularly because there is insufficient know-how to measure the impact of the monetary indicators (such as the exchange rate) on the economy and business. Monetary indicators. The Central Bank statistics illustrate the changes experienced by the monetary indicators in period 2004-2008. The banknotes in circulation totaled SRD 286.3 million in 2004 and SRD 466 million in 2008. The M1 in April 2008 was SRD 1,250.1 million, which signifies almost a doubled M1 amount in 2004 (SRD 697.5 million). A similar change showed the domestic liquidity (M2) reaching the amount of SRD 1,441.7 million in April 2008. The long run deposits have also doubled in this period, and for this reason—in accordance with the Central Bank information—M3 increased substantially in this period, rising from SRD 1,001.1 million in 2004 to SRD 1,901.4 in April 2008. The foreign currency deposits of residents also increased from SRD 965.9 million in 2004 to SRD 1,706.9 million in April 2008. It is important to point out a substantial rise in the value of net gold and foreign exchange CBvS and Commercial Banks, going from SRD 381.1 million in 2004 to SRD 1,329.1 million in April 2004. Banking system net foreign assets. In accordance with the statistical data from the IMF about the financial sector in Suriname, the net foreign assets of the Banking system grew in period 2003-2007 from SRD 751.6 million in 2003 to SRD 2,153.9 million in 2007. This increase is mainly due to the great increase of the net international reserves since 2006, which rose from SRD 265.5 million in 2003 to SRD 1,189.5 million in 2007. The net short-term foreign assets also grew steadily since 2006. The total liabilities to the private sector grew from SRD 1,477.8 million in 2003 to SRD 3,424.7 million in 2007, thanks to the growth of the foreign currency deposits (almost 50% of the total). These total liabilities to the private sector signified 51.7% of the GDP in 2007. The total distribution of the Commercial Bank credit has grown from 2003 (SRD 686.3 million) to 2007 (SRD 1,817.8 million). In regard to sectors, the commercial bank credit was given mainly to the commerce sector, signifying around 27% of the total during the whole period. Secondly, the commercial bank credit that contributed to housing construction grew steadily, representing 9.8% of the total in 2003 and 15% of the total in 2007. Manufacturing was the third economic sector receiving credits from commercial banks, although its weight in the total diminished from 8.9% in 2003 to 7.7% in 2007. 84


After these economic sectors come services and agriculture. The weight of both sectors in the commercial credit banks was a little bit less than 5% in 2003. In 2007, agriculture lost influence (3.4%) whereas services won influence (6.8%). In percentage terms in regard to the total, fisheries is losing influence in the commercial bank credits, whereas transport and communication is gaining influence. In any case, their percentage respect to the total is still insignificant.

7.6.

COMPARISON WITH THE FINANCIAL SECTOR OF OTHER CARICOM COUNTRIES

What follows is a comparative analysis of the financial sector situation in Suriname in relation to other Latin America and CARICOM countries. This analysis has been made by studying the statistical data used by the ECLAC institution. The active interest rate is diminishing but is still high. The active interest rate figures in Suriname have been continuously diminishing from 27.4% in 2000 to 13.8% in 2007. Nevertheless, this percentage is still very high in comparison with other Latin American countries such as El Salvador (7.8%), Bolivia (8.2%) and Panama (8.3%), although there are countries with higher interest rate, like Brazil (34.5%). Moreover, Suriname has one of the highest interest rates in the CARICOM region, with the exception of Haiti (31.2%), Jamaica (22%), Belize (14.3%) and Guyana (14.1%)14. Internal credit given to private sectors is improving, but is still one of the smallest percentages of the GDP in the CARICOM region. Since 2000, internal credit given to private sectors has been improved in Suriname, going from 16.9% of the GDP in 2001 to 32.4% in 2007. Although there has been an increase, some Latin America countries have higher percentages, such as Panama (91.2%), Honduras (52.5%) or Costa Rica (36.6%). It is important to observe that Suriname’s percentage is one of the smallest in the CARICOM region. Countries like St. Lucia (88.8%), Grenada (87.6%), Bahamas (85.5%), Antigua and Barbuda (74.6%) and Barbados (72.5%) had much higher internal credit to private sectors in 2007. The exception was Trinidad and Tobago (28.6%) and Jamaica (21%). This situation clearly explains the above-mentioned difficulties of the private sector in obtaining credits from the banks. Suriname has one of the highest percentages of international reserves. The law establishes the percentage of international reserve requirements in relation of the total national budget liquidity. The Banks can use their reserves in the Central Bank for rising loans at 7% interest, but only for allowing people to buy houses for improving their standard living conditions. The economy now has international reserves equivalent to 4 months of imports. They have also reserved dollars deposit requirements as a way to reduce the dollarization of the economy. 14 Nevertheless, the way to measure the interest rate varies from country to country, as is indicated in the ECLAC table. For this reason, the values are not exactly comparables.


85

In 1999, the international reserves of Suriname were USD 109 million. In 2001, the amount grew to USD 188 million. From 2002 to 2005, the level of international reserves was always lower than the amount obtained in 2001, due to the unstable situation of the local economy. In 2005, however, after measures taken by the Government were implemented, the international reserves grew to the amount of USD 434 million in 2007, which is 298% in 2007 compared to 1999. When comparing Suriname’s situation with other Latin America and CARICOM countries it can be noticed that Trinidad and Tobago tremendously increased its proportion of international reserves from 1999 (USD 963 million) to USD 7,053 million in 2007, which implies a 632% of increase. Brazil increased its international reserves to 396%, Bolivia to 335%, Ecuador to 303%, and Guatemala to 254%. With respect to the CARICOM countries, Jamaica rose 243%, and Barbados 178%. Thus, Suriname’s growth of international reserves is among the highest. Net transfer of resources from 2000 to 2007 was positive with the exception of 2006. As it is mentioned in the ECLAC statistical data, the net transfer of revenues is calculated as the net revenue of capitals minus the total balance of incomes (net payments of utilities and interests). The negative figures mean transfer of resources abroad. In the case of Suriname, the net transfer of resources was USD 1 million in 2007. From 2000 to 2007, all the years were positive, with the exception of 2006 (USD -72 million). Until 2005, these transfers did not reach the peak obtained in 2001. In Latin America, the main countries with significant net transfer of resources were the following: Chile, going from USD -3,079 million in 1999 to USD -28,679 million in 2007; Brazil, going from USD -1,336 million in 1999 to USD -10,553 million in 2006 (although in 2007, it had a positive amount of 56,782 million); and Perú, rising from USD -701 million in 1999 to USD -7,584 million in year 2006 (although it had an amount of only USD -269 million in 2007). In the CARICOM countries, Trinidad and Tobago had net transfer of resources abroad during the entire period, going from USD -268 million in 1999 to USD -2,941 in 2007. Other CARICOM countries had net positive transfer of resources figures in 2007—for instance, Jamaica (USD 584 mill.), Antigua and Barbuda (USD 347 mill.), Barbados (USD 332 mill.) and Guyana (USD 232 mill.). The monetary supply (M3) maintained a similar percentage to the GDP as in 2000. In accordance with ECLAC information, the monetary supply (M3) represented 68.2% of the GDP in 2000. This percentage, with respect to the GDP, decreased from 2001 to 2007, although in 2007 the monetary supply (M3) reached 67.7% of the GDP, a similar percentage as it was in 2000. Other CARICOM countries that had a higher monetary supply percentage than Suriname with respect to the GDP were Grenada (102.3%), St. Kitts and Nevis (101.3%), St. Lucia (92.7%), Dominica (83%), 86


Bahamas 77.5%), Guyana (75.1%) and Belize (68%). Trinidad and Tobago had smaller monetary supply (M3) with respect to GDP than Suriname (only 37.3%). Foreign currency deposit increased in 2007. In 2000, the percentage of the deposits in foreign currency in Suriname with respect to the GDP was 24.9%. Since 2004, these deposits have represented a higher percentage with respect to the GDP (around 27%). In 2007, these deposits grew to 32.5% of the GDP. The reasons for these increases are related to the peculiarities of Suriname’s economy, as previously mentioned, which are based on economy sectors with low values and high dependency on international prices. In 2007, this percentage was the highest in all Latin America countries analyzed, with the exception of Uruguay (38.3%). Other countries close to Suriname’s percentage were St. Kitts and Nevis (31.1%), Nicaragua (26.8%) and Bolivia (23.9%).

The following table shows the evolution of the main financial aspects mentioned above, The followingSuriname’s table shows the evolution the main aspects mentioned above, comparing comparing figures with theofsame eight financial neighbouring countries, considered in other parts of thisfigures study. with the same eight neighbouring countries, considered in other parts of this Suriname’s study. Table 18. Comparative analysis of financial sector of Suriname with other Latin America and CARICOM countries Colombia Costa Rica Dominican R. Guyana Haiti Jamaica Panama Suriname Trinidad & T. Interest rate (1) a b c d e f g h i Year 1999 29.4 29.8 22.2 17.1 22.9 36.8 10.1 27.4 17.1 Year 2003 15.2 26.2 27.8 16.6 30.7 25.1 8.9 21 11 Year 2007 * 15.4 17.3 11.3 14.1 31.2 22 8.3 13.8 10.5 Internal credit to private sector (2) Year 1999 29.7 17.6 19.5 50.1 15 8.8 96.8 **16.9 0 Year 2003 19.8 26.5 26.8 33.7 17.7 14.4 87.1 19.7 26 Year 2007 * 26.6 36.6 19 33.7 13.6 21 91.2 32.4 28.6 Assets of international reserves (including gold) (3) Year 1999 8.103 1.472 881 268 264 555 805 109 963 Year 2003 10.921 1.839 279 276 62 1.196 992 113 2.258 Year 2007 20.955 4.114 2.946 313 443 1.906 1.935 434 7.053 Net transfer of resources (4) Year 1999 -2.338 -691 -352 29 80 -271 652 25 -268 Year 2003 -2.609 443 -2.787 39 5 -246 -508 91 -1.257 Year 2007 * 2.669 1.934 894 232 299 584 834 1 -2.941 Monetary Base (5) Year 1999 5.7 6.1 8.4 23.4 17.7 17.6 9 Year 2003 6.2 5.4 12.6 27.5 24 8.6 14.6 6.6 Year 2007 7.7 7.2 8.9 25 19.4 8.1 ***12.6 7 Monetary Supply-M3 (6) Year 1999 31.5 30.4 24.6 69.1 34.9 39.8 74.8 ****68.2 40.1 Year 2003 28.3 37.1 36.8 73.8 47.8 38.8 79.5 51 32.4 Year 2007 34 43.9 25.7 75.1 35.6 38.9 88.1 67.7 37.3 Deposits in foreign currency (7) Year 1999 11.6 0.5 9.4 8.8 - ****24.9 9.7 Year 2003 15.3 0.1 20 12.8 23.9 6.1 Year 2007 17.5 0 15.1 12.7 32.5 9 Source: own elaboration from ECLAC statitical data * Provisional figures (1) Annual average of the monthly rates, as a year a Total active rate of the system b Average rate of the financial system for loans in national currency c Preferential active rate d Preferential rate, average ajusted e Minimum and maximum loan average rates f Average interest rates on loans g Interest rate to commerce credit to a year h Rate on loans published by the IMF i Preferential interest rate on loans to pay in installments (2) Balance at the end of the year, in percentage of the GDP ** Statistical data of 2001 (3) In millions of dollards (4) In millions of dollards. The net transfer of resources is calculated as the total net revenue of capitals minus the balance of income (net payments of utilities and interests). (5) Balance to end of the year, in percentage of the GDP *** Statistical data of 2006 (6) Balance to end of the year, in percentage of the GDP. M3 is for ECLAC equal to M1 plus saving deposits and deposits to pay in installments in national currency, plus deposits in foreign currency. (7) Balance to end of the year, in percentage of the GDP **** Statistical data of 2000

7.7. CONCLUSIONS AND FUTURE MEASURES Conclusions


87

7.7.

CONCLUSIONS AND FUTURE MEASURES

Conclusions Very limited supply of financial services • Financial sector is not diversified in Suriname • Insufficient credit unions and rural development banks • Insufficient schemes for long term development. Unfavourable financial environment for doing business in Suriname • Suriname’s large business prefer foreign banks for their financial needs • Legislation for the modernization of the financial sector is acceptable but still pending full implementation in order to be more competitive and favourable towards business • Suriname does not have a financial monitoring system to help businesses through fluctuations of the exchange rate and interest rates, which greatly impact the economy • Irregular success and evolution of financial funds • Still high dollarization within the economy. Unknown rates of performance to determine the competitiveness of the banking sector • Suriname does not have yet a financial sector assessment •

Insufficient performance rates to measure competitive and comparative capacity of the financial sector

• Currently the main problem for investment is insufficient know-how to measure the impact of the exchange rate to the economy and business. Weak financial system in comparison with other Latin America and Caribbean countries • Active interest rate, which is diminishing but is still high • Only a small percentage of the GDP is given for internal credit to the private sector (one of the smallest percentage in the CARICOM region) • Oscillated increase of international reserves (at a high percentage) • Net transfer of resources from 2000 to 2007 was positive with the exception of 2006 • Foreign currency deposit increased in 2007. Measures that could be taken Banks should take more risks in supporting the private sector within certain reasonable parameters. The capital and financial market has to be bigger to support entrepreneurs mainly in the beginning stage of their businesses.

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8. The social and economic entrepreneurial domestic private sector profile 8.1.

ENTREPRENEURIAL STRUCTURE

The private sector in Suriname has an inadequate and monopolistic structure. The private sector in Suriname is made up by: a) Multinational enterprises, mainly in the mining sector (bauxite and gold) b) Large national enterprises c) Small and micro enterprises. This private sector has an inadequate and monopolistic structure for the following reasons: The multinational enterprises are located in non-productive sectors with high profit returns. The foreign business is mostly interested in exploitation of natural resources. They are concentrated mainly in the mining sector (bauxite and gold). Foreign enterprises are still not interested in agriculture and other productive activities. Moreover, some large enterprises have introduced themselves to the tourism sector recently. A few large national enterprises control the majority of the economy and work in the mining sector for international firms. However, large national enterprises are not that big in comparison with the size of the large national enterprises in other countries. In Suriname, there are no more than 100 enterprises with more than 100 workers. The large national enterprises have an average of around 50 employees. Even the largest firms, like Fernandes, are actually a group of various enterprises, each of them with around 50 workers. In developed economies, the medium size enterprises are the foundation of the economy. In Suriname, this is not the case. Here, the private structure is inadequate because there are only a few medium enterprises. Most enterprises involve a one-man entrepreneur working in micro or small enterprises, and many times, the one-man entrepreneurs are working in the informal sector of the economy. The informal sector is sizable portion of the economy. Statistical data is difficult to obtain for this sector, but some analysis consider that from 25% to 45% of the active population could be working in the informal sector of the economy. These entrepreneurs do not pay taxes to the State, and this affects the income of the State and causes distortions in the economy. In addition, as previously mentioned, the public sector controls key economic sectors such as the oil industry, power, water, transport and bananas. These sectors are in the hands of the Stateenterprises. “Macro-Economic Review of Suriname 1999-2008”

89

8.2.

REGISTERED ENTERPRISES BY TYPES AND GROUPS

By types The entrepreneurial sector is not competitive. According to the information submitted by the Chamber of Commerce and Industry (KKF), the total number of enterprises working in Suriname on December 31st, 2007 was 22,997. An important number of registered enterprises are not active ones; only around 16,000 are active, and of those enterprises, roughly 10,000 are payable companies. These enterprises are classified into 11 categories (see table 19). The largest portion is comprised of one-man companies (67.7%), followed by the limited liability companies (15.5%) and by the limited partnership companies (11.4%). The subsidiaries of the foreign companies represent only 0.86% of the total. These enterprises are classified into 11 categories (see table 19). The largest portion is comprised of one-man companies (67.7%), followed by the limited liability companies (15.5%) The number of enterprises types, according to the Chamber of Commerce and andtotal by the limited partnership registered companiesby(11.4%). The subsidiaries of the foreign companies represent 0.86% of the total. was 22,318. That implies that at the end of 2007, the number Industry at only the beginning of 2007, ofThe enterprises rose of 3.04% thanks registered to new registrations that outnumbered the number of companies total number enterprises by types, according to the Chamber of Commerce and Industryduring at the the beginning dissolved year. of 2007, was 22,318. That implies that at the end of 2007, the number of enterprises rose 3.04% thanks to new registrations that outnumbered the number of companies dissolved during the year. As a result, an economy with almost 70% of the enterprises belonging to one man companies is a result,that an economy with almostto70% of the belongingscales, to onetechnologies, man companies anAs economy has limited potential obtain or enterprises improve production useisof an economy that has limited potential to obtain or improve production scales, technologies, use innovation and investment. Other constrains also prevent it from becoming a competitive economy. of innovation and investment. Other constrains also prevent it from becoming a competitive economy. Table 19. Number of Registered Enterprises by Type, in 2007. By type of enterprise

01/01/07

1 2 3 4 5 6 7 8 9

One man company 15,416 Limited liability company 3,453 Limited partnership 2,346 Foundations 800 Cooperatives 48 Associations 51 Insurance companies Guarantee funds Limited partnership with a silent 11 partner 10 Limited partnership with silent 1 partner with shares 11 Subsidiaries of foreign 192 companies Total 22,318 Source: Chamber of Commerce and Industry-KKF

New registers 1,613 109 314 111 1 0 0 0 0

Companies dissolved 1,451 1 36 1 0 0

31/12/07

0

11

% v/h total (31/12/07) 67.7 15.5 11.4 4.0 0.2 0.2 0.0 0.0 0.0

0

0

1

0.0

29

9

212

0.9

2,177

1,498

22,997

100.0

15,578 3,561 2,624 910 49 51

By groups The total number of registered enterprises by groups on December 31st, 2007 was 28,727. The number of enterprises by groups is higher than by type because there are firms registered in several groups. These registered enterprises are classified in 9 groups (see table 20).

90

“Macro-Economic Review of Suriname Table 20. Number of Registered Enterprises by Groups, in 2007 1999-2008” By group of enterprise

01/01/07

New

Companies

31/12/07

%

of

total

8 9

Guarantee funds Limited partnership with a silent 11 partner 10 Limited partnership with silent 1 partner with shares 11 Subsidiaries of foreign 192 companies By groups Total 22,318 Source: Chamber of Commerce and Industry-KKF

0 0

0

11

0.0 0.0

0

0

1

0.0

29

9

212

0.9

2,177

1,498

22,997

100.0

The number of registered enterprises by groups on December 31st, 2007 was 28,727. The number Bytotal groups of enterprises by groups is higher than by type because there are firms registered in several groups. st The registered total number of registered enterprises groups ontable December These enterprises are classified in 9by groups (see 20). 31 , 2007 was 28,727. The number of enterprises by groups is higher than by type because there are firms registered in several groups. These registered enterprises are classified in 9 groups (see table 20). Table 20. Number of Registered Enterprises by Groups, in 2007 By group of enterprise

01/01/07

1 2 3 4 5 6 7

Retail trade 6,065 Other trade and intermediaries 8,747 Crafts and industry 1,674 Financial institutions 149 Transport companies 3,299 Hotel, cafés and tourism industry 2,107 Mining sector and industrial 99 processing of minerals. 8 Timber and timber processing 190 companies 9 Non identified sectors* 5,798 28,128 Total Source: Chamber of Commerce and Industry-KKF * Companies registered without mentioning activity

New registers 492 1,008 85 5 152 144 4

Companies dissolved

31/12/07 548 530 93 1 280 207 2

6,009 9,225 1,666 153 3,171 2,044 101

% of total (31/12/07) 20.9 32.1 5.8 0.5 11.0 7.1 0.4

2

2

190

0.7

485 2,377

115 1,778

6,188 28,727

21.5 100.0

On one hand, 53% of the registered companies work in commercial activities located in the following two groups: other trade and intermediaries (32.1%) and real trade (20.9%). This means that Suriname has a low production base. On the other hand, is very high the amount of enterprises registered in the KKF (21.54% of the total), that they do not specify their activity.

8.3

Turnover, average nominal labour and total number of employees at large enterprises

In period 2001-2006, the turnover of large enterprises was only concentrated in two sectors—mining and quarrying and trade, restaurants and hotels. In 2001, this total turnover was SRD 3.12 billion. Both sectors signified 66.72% of the total (mining and quarrying totaled 36.08%; trade, restaurants and hotels totaled 30.64%). In 2006, the total turnover was SRD 8.08 billion, and the weight of these two sectors continued to increase until reaching 73% of the total (mining and quarrying totaled 36.91%; trade, restaurants and hotels totaled 36.08%). The turnover of other sectors was lower. Manufacturing and transport, storage and communications were the other important sectors that experienced turnover during the entire period. In 2006, each of them represented around 7.35% of the total. The banking sector followed behind with a turnover that amounted to 4.17% of the total. “Macro-Economic Review of Suriname 1999-2008”

91

The mining and quarrying sector’s average nominal labor costs were the highest in period 20012006. In 2006, the average nominal labor costs of the mining and quarrying sector were SRD 76,309. This amount signified 41.8% of an increase compared to the amount in 2001. The banking sector’s average nominal labor costs in 2006 were SRD 70,519. This sector experienced a considerable rise (127.2% of the average nominal labor costs in regard to 2001). The following two sectors in 2006 were: transport, storage and communications (SRD 66,601); and utilities (SRD 61,562). On the other hand, trade, restaurants and hotels had lower average nominal labor costs during the entire period. In 2006, the total was SRD 27,223, although its rise in 2001 (127.2%) was similar to the banking sector’s increase. The Government has the largest number of employees compared to other large enterprises in Suriname. During period 2001-2006, the Government employment was around 60% of the large enterprises total employment. In 2001, this percentage was 59.3%, and in 2006, it was quite similar (60.4%). Manufacturing and trade, restaurants and hotels had the next highest number of employees, though they ranked far behind the Government. Each of them signified around 10% of the total employment. The following conclusions can be deduced from the analysis of statistical data in regard to turnover, number of employees and payment received: Firstly, the ranking of large enterprises varies when considering the turnover of the large enterprises and the average nominal labor cost of employees. Secondly, employees in the mining and quarrying sector are not as numerous as in other sectors; however, they receive better pay in comparison with other large enterprises. Thirdly, employees in banking, in transport, storage and communications, and in utilities are better paid than other sectors in regard to the turnover of these enterprises. Finally, trade, restaurants and hotels sectors have a large amount of employees, but their wages are still very low in relation to turnover and in comparison with mining or banking sectors. It is important to note, though, that its wages have grown considerably since 2005, due to the increased importance of the tourism sector in recent years.

8.4

Main constraints of the private sector

The difficulties that arise when trying to obtain access to financial credit affect the development of the private sector businesses. According to the entrepreneurs consulted, the financial access to credit is the chief problem, although the financial sector considers that there are other constraints in the development of the private sector. They cite that there even more important difficulties that arise, such 92


as a lack of technical knowledge about human resources, administrative procedures, the quality of the production, etc. Obviously, these constraints affect mostly the small and micro enterprises. There are not enough property land titles in the hands of entrepreneurs who want to start a business. The marginalization of the land for collateral value is an important constraint for the development of the private sector businesses. The greatest part of the land belongs to the State and when a private enterprise builds up a factory or an office in the State land, the building loses value. Insufficient technical knowledge about trade procedures and quality standards of the product exported is also an important constraint of the private sector in Suriname. Although the Suriname Bureau of Standards was implemented almost a year ago, the entrepreneurs have not yet gained sufficient knowledge on the rules, standards and procedures applied by the international markets. For a stronger integration of Suriname in the CARICOM market, the entrepreneurs of Suriname need to improve the quality standards of their products to compete with products produced by other CARICOM countries. Specially, small entrepreneurs need to enhance the quality of their products and improve the marketing system. Human resources are scarce and need to be trained in a more professional manner. Private sector entrepreneurs consulted consider important to enhance the levels of education and the human resources training programmes. Private sector associations are still weak. The private sector has not enough smart professionals for assuming technical responsibilities at the top of the private sector associations. On the other hand, the top entrepreneurs don’t have enough time to deal with the administrative and technical aspects of the public-private sectors dialogue and besides that, they work only in these associations part time, at voluntary bases. Joint to this, the entrepreneurs consider that the existing rigidities in the employment market jointed to the difficulties to fire out the workers, contribute also to the competitiveness constrains in the economy of Suriname. Excessive requirements and administrative procedures before an entrepreneur can start his business is also a constraint for the development in the economy of Suriname. Private sector considers that public administration staff requires too many bureaucratic procedures and steps to follow by the private sector before to start a business. These procedures are particularly complicated at the moment to get license, especially for smallest entrepreneurs and could be one of the reasons why many oneentrepreneur enterprises finally decide to work in the informal sector. Moreover, the Ministry of Trade and Industry is working on making more flexible these procedures and requirements and the Chamber of Commerce and Industry is improving the one-stop window. As a matter of fact, a comparative analysis of the situation in the Latin America and Caribbean countries show this difference. Whereas in other Latin America countries the license can be obtained in a short period of time, in Suriname there are many examples of entrepreneurs that have to wait months before getting a license in Suriname. This aspect will be observed more in-depth when analyzing the World “Macro-Economic Review of Suriname 1999-2008”

93

Bank Doing Business index. Other administrative procedures that need to be reformed, according to entrepreneurs, are the following: the time required for solving tax problems at the Ministry of Finance and at Customs, and the lack of Government incentives for stimulating the production levels of the private sector. The politics and the institutional relations also affect the development of the economy. It is necessary to improve the relationship between the Government and the entrepreneurs. A policy vision, which would bring improvement and reforms of the law regulations, property rights and other issues related with the business climate, is still lacking. In the private sector’s opinion, the Government should take the true situation of local production more into consideration when the country signs international Treaties; entrepreneurs believe that strict observation of these Treaties sometimes can be a threat for the local economy. Finally, many other aspects affect the improvement of the private sector businesses, such as the low innovative capacity for acquiring new knowledge and technology; the small size of the market; the weak infrastructure; the complicated transport regulations; and the monopolistic position of the State in key economic sectors. Some consequences of the weaknesses of the entrepreneurial structure are: • A large informal sector exists in Suriname • The market is not completely free because is controlled by a few enterprises • Only a few medium enterprises exist and they are not well consolidated • A lack of awareness building.

8.5

Conclusions and future measures

Conclusions The entrepreneurial sector is not competitive. This situation reduces the possibility to obtain production scales, use new technologies and increase investments and innovations. The inadequate structure, the heavy intervention of the State in the economy and the limited presence of foreign investment in the economy signify also the following consequences: Inadequate structure • Almost 70% of the enterprises are comprised of one man companies; these enterprises are unable to obtain production scales, technologies, and the use of innovation and investment. • Almost 53% of the registered companies work in commercial activities, which mean that Suriname has a low production base. 94


• In 2006, the turnover of large enterprises is only concentrated in two sectors, which represent 74% of the total. These are mining and quarrying (37%), and trade, restaurants and hotels (37%). Manufacturing represents only 7.34% and banking represents only 4.17%. •

The private sector does not yet have enough capacity to manage the economic resources of Suriname.

Heavy intervention of the State in key economic sectors activities • The State controls oil, bananas, and utilities (power, water, transport). Foreign businesses are mostly interested in exploitation of natural resources • International enterprises are concentrated in the mining sector • Some foreign investment can now be seen in the tourism sector • No foreign or domestic investment are seen in productive activities. Measures that could be taken The following are some of the measures that could be taken for improving the economic entrepreneurial domestic private sector profile: • Improve a business climate in the domestic economy of Suriname • Foster the public sector’s commitment to the development of a private sector association • Increase the number of technical programs to enhance the technical knowledge of human resources • Improve the quality of Suriname products, in accordance with the standards and procedures demanded by the international community • Improve the levels of competitiveness • Create an environment favourable to direct foreign investment • Reform the commercial legislation, in accordance with the current needs of the world economy • Increase the presence of the small and medium size enterprises; these enterprises will become catalysts for the future economic development of Suriname.


95

9. Competitiveness, transparency, economic freedom and doing business indexes 9.1

Suriname presence In the competitiveness index

The World Economic Forum compiles a yearly competitiveness index. This index measures, country by country, the basic requirements in three sub-indexes. The three indexes are as follows: the competitiveness situation of the institutions, infrastructure, macro-economic stability and health and primary education; efficiency measurements; and innovation and sophistication factors. All these three sub-indexes are measured in 12 pillars. The average of these 12 pillars gives the global competitiveness index of the country. The World Economic Forum also measures the Business Competitiveness Index, the Sophistication of Company Operators and Strategy, and the Quality of the National Business Environment. The monopolistic situation, in which some economic sectors are rooted, does not contribute too much to the competitiveness of Suriname’s economy. In fact, as a consequence of the multiple economic constrains previously mentioned in this study, Suriname is under average in the competitiveness index; consequently, it does not rank well in this competitiveness index because in 2007-2008, it is ranked as the 113th country of all the 131 countries analyzed. It received an average score of 3.40 out of a maximum of 7. This mean that score is less than half of the maximum. In terms of sub-indexes, Suriname obtained a better position in the sub-index of Basic Requirements (position 92), especially in the pillar of health and primary education (68) and in the macro-economic stability (74). Moreover, alongside this study, it was observed that the weight of the education sector and especially the health sector in the GDP has decreased in the last years. This aspect could affect the status of these pillars in future competitiveness indexes. The sub-index of Innovation and Sophistication factors is Suriname’s second ranking competitiveness index (position 115). Both pillars of this sub-index received similar positions—innovation (115) and business sophistication (position 116). Finally, the sub-index of Efficiency Enhances had the lowest competitiveness ranking for Suriname (position 126). The competitiveness of this sub-index is obviously lower than the other two indexes. Nevertheless, higher education and training (position 100), labor market efficiency (position 101) and financial market sophistication (position 102) are the best pillars. The lower scores in this index were obtained by market size (position 128) and good market efficiency (127). These results are consistent with the analysis of this study. It was already mentioned that the small size of the country and the lower quality of production are two of the most important constraints on Suriname’s economy. 96


The World Economic Forum places Suriname in position 108 with respect to the Quality of the National Business Environment. It is quite possible that this position could be improved in future competitiveness indexes, thanks to the creation of the Suriname Business Forum and the activities that are operated by this institution. The WEF ranks Suriname in position 110 with respect to the Business Competition Index and in position 116 with respect to the Sophistication of Company Operators and Strategy. Table 21. Suriname competitiveness index World Economic Forum: Global Competitiveness Report Global competitiveness index 2007-2008 Sub index A: Basic Requirements 1st Pillar Institutions 2nd Pillar Infrastructure 3rd Pillar Macroeconomic Stability 4th Pillar Health and Primary Education Sub-index B: Efficiency Enhances 5th Pillar Higher Education and Training 6th Pillar Goods Market Efficiency 7th Pillar Labour Market Efficiency 8th Pillar Financial Market Sophistication 9th Pillar Technological Readiness 10th Pillar Market Size Sub-Index C: Innovation and Sophistication factors 11th Pillar Business Sophistication 12th Pillar Innovation

Nº countries 131 113 92 98 102 74 68 126 100 127 101 102 118 128 115 116 115

Business Competitiveness Index 2007-2008 Sophistication of Company Operators and Strategy Quality of the National Business Environment Source: World Economic Forum

Score Max. 7 3.40 4.04 3.39 2.55 4.79 5.44 2.99 3.20 3.19 4.04 3.68 2.37 1.44 2.9 3.25 2.58

110 116 108

The Most Problematic Factors for Doing Business The Most Problematic Factors for Doing Business The World Economic Forum oversees a survey in each country that analyzes these 14 factors and asks the participants to select the five most problematic factors for doing business in the The World Economic Forum oversees a survey in each country that analyzes thesegraphic 14 factors andtoasks country, ranking them between 1 (most problematic) and 5.The WEF uses bars illustrate the responses obtained in Suriname, weighting them in accordance with their rankings. the participants to select the five most problematic factors for doing business in the country, ranking

thempeople between 1 (most problematic) WEF uses graphic bars to illustrate the responses The consulted believe that the and most5.The problematic factor for Suriname is the inefficiency obtained in Suriname, weighting them inofaccordance of Government bureaucracy (19.60% answers). with This their is a rankings. serious bottleneck type problem previously mentioned in this study. Other problematic factors considered by the respondents were the following: the policy instability (11.20%); the access to financing (9.90%); and the The peoplesupply consulted believe that the most problematic factor for Suriname the inefficiency inadequate of infrastructure (9.30%). In fact, policy instability shouldisperhaps not be of regarded as so high a problematic factor, because, the economic situation is Government bureaucracy (19.60% of answers). This as is aalready seriousseen, bottleneck type problem previously now more stable than in the past decades. Moreover, financing access and infrastructure supply mentioned in this study. Other problematic factors considered by the respondents were the following: are really quite problematic factors. the policy instability (11.20%); the access to financing (9.90%); and the inadequate supply of Graphic 8. (9.30%). The mostInproblematic factors should for doing business infrastructure fact, policy instability perhaps not be(percentage regarded as of so responses) high a problematic factor, because, as already seen, the economic situation is now more stable than in the past decades. Moreover, financing access and infrastructure supply are really quite problematic factors.


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inadequate supply of infrastructure (9.30%). In fact, policy instability should perhaps regarded as so high a problematic factor, because, as already seen, the economic situ now more stable than in the past decades. Moreover, financing access and infrastructure are really quite problematic factors. Graphic 8. The most problematic factors for doing business (percentage of responses)

Graphic 8. The most problematic factors for doing business (percentage of respon

Source: World Economic Forum

Source: World Economic Forum

9.2 suriname Presence In the Corruption Perception index Transparency International is an organization located in Berlin, Germany, which publishes the yearly Corruption Perception Index. This institution has recently published (September 2008) the new Corruption Perception Index (CPI). The CIP measures the degree of public sector corruption as perceived by business people and country analysts. This CPI ranges between 10 (highly clean) and 0 (highly corrupt). Transparency International compiles the CPI by gathering data from sources that span the last two years. For the CPI in 2008, the surveys from 2008 and 2007 are both included. This index is calculated for each of the 180 countries listed survey, using data from 13 sources that originated from 11 independent institutions. The levels of corruption in each country have been analyzed by experts on the country both non-resident s and residents alike. In the last CIP of 2008, Suriname is in the 72nd position worldwide with a score of 3.6; this is similar to Bulgaria, FYR Macedonia, Peru, Mexico, China, Trinidad and Tobago and Swaziland. At the regional level, Suriname is in the 14th position out of 32 American countries examined.

9.3

SURINAME FACE TO THE ECONOMIC FREEDOM INDEX

The Heritage Foundation is in charge of the yearly compilation of the world economic freedom index. This index measures the degree of freedom in the economies throughout the world. Countries are classified into six groups, ranking them from a score of 100% to 0%. Countries with a score between 100-80% are considered economically “free” countries; those from 79.9-70% are “mostly free”; those from 69.9-60% are “moderately free”; those from 59.9-50% are “mostly un-free”; and those from 49.9-0% are “repressed.” 98


Suriname ranks low in the economic freedom index. In the 2007 index, Suriname was placed in position 133 worldwide and in position 26 of all 29 American countries examined. The position of Suriname in the 2008 index has improved to a small extent. Suriname is now placed in the 118th worldwide and in the 24th position among the 29 American countries analyzed is ranked in position. This means that its overall score is lower than the regional average. In 2008, Suriname obtained a score of 53.9% of the total economic freedom index of 100%. For this reason, it is considered to be an economically “mostly un-free” country. This index is based in the following “ten economic freedoms”: Table 22. Ten economic freedoms and scores obtained in 2008 Labour freedom

(82.1%)

Trade freedom

(65.0%)

Investment freedom

(30.0%)

Government freedom

(72.8%)

Property rights

(50.0%)

Financial freedom

(30.0%)

Monetary freedom

(69.2%)

Business freedom

(41.7%)

Freedom from corruption

(30.0%)

Fiscal freedom

(68.0%)

Source: own elaboration from Heritage Foundation data In accordance with this Heritage Foundation index, Suriname obtained the highest economically free position in labour (82.1 %). In Suriname, Trade Unions are quite well organized and have influence in the economy, although a minimum wage does not yet exist and labour market is still quite rigid. Freedom from Government also obtained a high score (72.8%), although this institution considers the Government presence in the economy to be very important despite the efforts for privatizing the State-owned companies. The monetary (69.2%), fiscal (68%) and trade (65%) freedoms also got high scores. In the case of fiscal freedom, the Heritage Foundation thinks that Suriname should decrease the high tax rates. With respect to trade freedom, this institution believes that the Government has made progress in the liberalization of the trade market; however, Suriname still needs to be more transparent in trade regulations and standards. Property rights (50%) and business freedom (41.7%) did not obtain high scores because the Heritage Foundation believes that private property is not well protected and because Suriname has not ratified the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreements. On the other hand, the freedom to start a business in Suriname is limited. Obtaining a license takes more time in Suriname than the average time in other countries. Other aspects studied were investment freedom, financial freedom and freedom from corruption (all of which totaled 30%). These freedoms have lower scores because the Heritage Foundation considers “Macro-Economic Review of Suriname 1999-2008”

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that many constraints still remain for improving investments; and foreign investment, for example, does not have equal opportunities like in many other countries. The financial system is underdeveloped and subjected to the Government’s influence. Finally, it is believed that corruption is widespread. The Heritage Foundation places these ten freedoms in graphic bars and compares the figures with respect to the world average and with respect to up and down changes of figures obtained in the previous year (see graphic 9).

9.4

SURINAME Presence In THE Doing business index

The World Bank recently published the report “Doing Business 2008”. This document presents quantitative indicators on business regulations and the protection of property rights. The document measures the following 10 indicators for doing business: starting a business, dealing with licenses, employing workers, registering property and getting credit. The aspects of protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business are also addressed. In 2008, Suriname in ranked in the 142nd position out of the 178 countries analyzed. According to table 23, the most difficult areas of business in Suriname are pertaining to in protecting investors (174), enforcing contracts (174) and starting a business (163). These indicators place Suriname at the bottom of the rankings, especially in the first two mentioned indicators. In any case, these results are congruent with the analysis of this study in which the constraints in Suriname’s economy for improving investment, especially for attracting the foreign investors, has been discussed. These figures are also congruent with the last ECLAC report, which compares Suriname’s indicators with Latin American and Caribbean countries and mentions that the net direct foreign investment in Suriname had negative figures in the last decade. The best areas for doing business can be found in paying taxes (23), employing workers (50) and trading across borders (86). These outcomes are consistent with the economic freedom and competitiveness index. In those both indexes, labour indicators also received good scores. There are some opinions from the private sector and government that Suriname should reach the 92nd position in 2009. Looking at the projected estimates in each of the indicators, the general impression is that these targets are very optimistic. In any case, the intention of the SBF authorities is to considerably improve the doing business indicators, especially the current low positions for doing business in Suriname, which are projected to be in the following positions in by 2009: protecting investors (113), enforcing contracts (113) and starting a business (105).

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impression is that these targets are very optimistic. In any case, the intention of the SBF authorities is to considerably improve the doing business indicators, especially the current low positions for doing business in Suriname, which are projected to be in the following positions in by 2009: protecting investors (113), enforcing contracts (113) and starting a business (105). Table 23. Ranking Doing Business in Suriname 2007-2008 and target 2009 Ease of doing business

Ease of doing business Topics 1. Starting a Business 2. Dealing with Licenses 3. Employing Workers 4. Registering Property 5. Getting Credit 6. Protecting Investors 7. Paying Taxes 8. Trading Across Borders 9. Enforcing Contracts 10. Closing a Business

Doing Business 2008 rank 142

Doing Business 2007 rank

Change in rank

Target 2009

138

-4

92

163 97 50 136 135 174 23 86

161 100 50 119 132 173 24 71

-2 +3 0 -17 -3 -1 +1 -15

105 63 35 88 87 113 15 56

174 145

174 144

0 -1

113 94

Source: the World Bank Doing Business Report 2008 and SBF monitoring for 2009

Finally, graphic 10 from the World Bank Doing Business report compares the situation of Suriname with and other Central American andcompares Caribbean Finally, graphic 10Singapore from the World Bank Doing Business report thecountries. situation ofSuriname Surinamehas with the lowest indicators of all these countries, with the exception of Haiti. Singapore and other Central American and Caribbean countries. Suriname has the lowest indicators of

all these countries, with the exception of Haiti. When Suriname’s situation in 2008 and 2007 is studied, it can be observed that the country lowered its ranking by four positions. In 2007, Suriname was located in the 138th position. Registering property (-17) and trading across borders (-15) are the two indicators with the greatest losses. A slight improvement appears in dealing with licenses, which gained three positions in 2007.

9.5


Conclusions The following are the main conclusions observed from the analysis of these indexes: About competitiveness • Low competitiveness level • The monopolistic structure of the economy is a serious constraint for improving the competitiveness levels in Suriname’s economy • The best position for Suriname can be obtained through macro-economic stability and the presence of the labor Trade Unions • Education and health indexes still have quite good levels, although the weight of these sectors in relation to the GDP has decreased in recent years • Weaknesses in infrastructure make it more difficult for business activities in the private sector •

Limited financial access to credit is a problematic aspect for improving the competitiveness of the country “Macro-Economic Review of Suriname 1999-2008”

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About transparency • The level of transparency in the Suriname’s economy is relatively high in the International Transparency ranking in comparison with the world transparency average; however, the levels of corruption are still considerable. About economic freedom • The country has low economic freedom levels • Suriname is considered inside the group of “mostly un-free” countries with respect to the economic freedom index •

Suriname has limited freedom for starting a business in comparison with the world’s average situation.

About doing business • Doing business levels are low • There is limited investment freedom and foreign direct investment protection •

Targets established by the SBF to improve the doing business situation in 2009 are quite unrealistic

• The Government bureaucracy’s inefficiency is a serious constraint for doing business in Suriname. Measures that could be taken After looking at all these indexes, the main question that arises is how Suriname should start improving its economic situation. Obviously, is up to the Government and Suriname institutions to decide the future strategies and policies. In any case, considering the outcomes of these indexes, it is recommended that the following measures should be taken: • Expand the market, mainly through strengthening economic relations with CARICOM countries and the neighbouring Latin American countries • Increase the quality and efficiency levels of the products sold in the market • Enhance the knowledge of procedures and product standards in the international market • Strengthen the public support to development private sector businesses and international promotion of the domestic enterprises • Strengthen the links between public and private partnership for the improvement of dialogue and business environment 102


• Reform the commercial legislation in accordance with the international needs of the world trade market • Invest more in innovation and new technology • Enhance the responsibilities of the financial sector to support the domestic economy • Increase the levels of education and improve the specific training programs that would address human resources working in the private sector.


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10. Current situation with respect to the diagnostic report recommendations In chapter 2, it was observed the main policies and recommendations of the diagnostic report related to the seven key subjects of that document (macro economy, legal and justice components, enterprise financing, business development services, administration, tax system and infrastructure). After the analysis made in this socio-economic study, this section will discuss a comparative proxy analysis of the current situation in relation to these seven key subjects and to the diagnostics, policies and recommendations made in the diagnostic report15. Macro-economic policy With respect to the monetary policy mentioned in the diagnostic report, the general policy of the Government has been to stabilize the macro-economic situation; consequently, the Central Bank has succeeded to close the official exchange rate to the market one. The situation has improved and the monetary market is more regulated. The international reserves are equivalent to 4 months of imports. In relation to the fiscal finances, the traditional public deficit has been solved, although one of the problems that still remain is the excessive weight of salaries and wages in the total expenditure of the national budget. The law regulating the policy and planning process has been created and the Government produces programs and multi-annual development plans every five years; however, the planning bureau lacks human resources. The liberalization and privatization process is very slow. The public sector is overextended and some State-enterprises are not very efficient. An overall privatization policy is still needed, although the Government has the intention of reinforcing the private sector presence in the economy. The telecommunications sector is now in the hands of the private sector. The banana production will follow a similar path in the near future. Legal and justice sector With respect to the company law and registration, a new Companies Act has not yet been enacted and more improvements are still needed for the simplification of the legal and registration procedures required while obtaining establishment permits. 15 This comparative analysis is just a proxy exercise because the working methodology used in this study is completely different than the analysis made in the diagnostic report. For example, the diagnostic report was prepared by seven groups of public and private sector analysts working together during several months. This is not, obviously, the case of the present study.

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In regard to the general regulatory framework, the property rights are not well protected. Suriname is a WTO member but has not ratified the TRIPS agreement and these rights have not yet been incorporated into the domestic law. There is still a shortage of judges. Some improvements have been made in the free movement of persons, but there are still many things that must be done to adapt the CARICOM laws to Suriname’s current legislation. Visa documents are still required for citizens coming from Europe and other regions of the world. The labor law is still rigid and doesn’t allow easily that private enterprises can dismiss freely their workers they need to fire out. More efforts have to be made to introduce labor law improvements in accordance with CARICOM law. The land law conflicts between progressive and traditional laws still remain. More actions have to be taken to find an efficient system that ensures registration of land titles and protects the rights of everyone involved. In the law application, the situation has been improved. An Anti-Corruption Law and Anti-Corruption Working Group now exist. International organizations are supporting the Ministry of Justice reforms, but a considerable degree of corruption still exists, as was mentioned when discussing the comparative international indexes. The judiciary system also experiences constraints. Suriname does not yet have a Constitutional Court and an Ombudsman institution. The comprehensive reform program is still pending. The SBF considers that around 200 laws should be reformed. The enterprise financing Germany and China have requested information about establishing branches in Suriname, but the financial sector still has only a few banks. The new Banklaw has helped to regulate the financial sector. Not many actions have been taken to stimulate the entry of new banks and new financial institutions. The regulatory framework of the financial system has improved, although the financial legislation is pending full implementation. The Central Bank is more independent and Banklaw has limited the Government borrowing capacity to the CB. It has adapted very little to CARICOM rules. The corporate finance capacity of the banks for financing long-run loans is very small. A long-range plan for consolidating the financial sector and making it easier to access credit in the private sector does not yet exist. More things have to be done for promoting new financial services and institutions.


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Foreign exchange relations are made mainly in cash money. The degree of the dollarization in Suriname is still high. Several previously mentioned measures have been taken in order to stabilize the exchange rate and the macro-economic situation. The business development services The Government supports the reinforcement of the domestic private sector in the Multi-Annual Development Plan for 2006-2011. The country is in the process of creating mechanisms for providing services that foster the private sector development. The KKF is implementing an one-stop window. The SBF has created the National Strategy for the Development of the Domestic Private Sector. The EC Public-Private Partnership Project is working on the creation of the Suriname Business Centre. The private sector organizations are still weak and the Business Centre will have to help the microsmall and medium size enterprises work together, as well as helping them to receive common services and organize themselves according to their common needs. The private sector organizations still must make greater efforts to help their members have access to the International Business Development Services and other mechanisms. Administration and institutions Many more things must be done to reform the trade and customs procedures. An action plan is still needed in order to strengthen the customs capacity. More training programs have to be created for increasing the technical knowledge of the customs staff. Advanced technology is still needed in customs. Authorizations, permits and licenses procedures are still difficult. As previously mentioned, the WB Doing Business 2008 report places Suriname in the 97th position out of 178 countries analyzed in the aspect of “dealing with licenses”. Investment promotion is still weak. As mentioned above, the WB Doing Business 2008 report places Suriname in the 174th position in “protecting investors.” Its investment protection index is 2.3 on a scale from 0 to 10. More improvements are required in defining the Government’s role in the investment and trade promotion. An one-stop window has been created by the KKF, but Suriname has to diminish the remaining constraints in order to attract more direct foreign investments. Some administrative procedures still act as constraints to the normal development of the private sector. The participation of the State-enterprises in the economy is still high. The SBF could help to discuss how to diminish the public administration constraints and how to reform and modernize the public sector. 106


The organic structure of the public administration is working now in a more rational way than in the past. The fiscal and monetary measures taken have contributed to stabilize the economy. The Government has privatized the telecommunications sector and is working in the future privatization of other sectors. The MOP 2006-2011 already notes the facilitator role of the State. Relationships with private sector are progressing. There are still some misunderstandings between the private sector and the Government, but mutual dialogue and confidence has been improved considerably in the last years. The SBF is the instigator of this mutual dialogue. The private sector organizations are still weak, and they do not have yet a common central body that represents the private sector. The capacity of the private sector institutions in looking for funding mobilization is small. Tax system and other incentives The tax system is still arduous and needs to be restructured. The private sector demands a more clear and simplified tax system in Suriname. More improvements must still be made for the simplification and rationalization of the administrative tax procedures. Infrastructure and utilities Many Government policies and investments in infrastructure have been related to the development of the mining sector. The Government is now in the process of extending harbor facilities and improving the road to the French Guyana border. It recently received a loan from China for the improvement of the road infrastructures. Moreover, many infrastructure constraints still remain from the colonial period. The present regulatory framework still has deficiencies and the legislation reform process is slow. The private participation in infrastructures is still needed. Public and private sectors still Need to define a strategy for promoting the private participation and improving the infrastructures. In addition to everything mentioned previously, annex 2 of this study includes a new matrix, which compares the main diagnostics, policies and recommendations mentioned in the matrixes of the 2001 diagnostic report with the current situation of these seven diagnostic key subjects. The statistics have been updated in columns.


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11. Public-Private sectors dialogue 11.1

Traditional misunderstandings

There are multiple reasons, which have contributed in the past to the mutual misunderstandings between the public and the private sector, such as: Traditionally, the private sector has considered the lack of interest, consciousness and willingness of the policy makers about what the private sector represents and its role in the national economy. Moreover, they use to think that public staff has insufficient experience and training to understand the real needs of the private sector; and in addition, they use to believe that the public sector does not adequately promote national enterprises in the international context. Politics have also affected this mutual dialogue. In this sense, the private sector has always had the general impression that policy makers only talk about the importance of the private sector participation in the economy for political reasons, especially when the country is close to an election’s process. But once that the elections are over, the situation remains the same as it was before. On the other hand, the public sector has traditionally not had enough confidence in the capacity of the private sector to assume a leadership role in the economy. The public sector has always had the impression that private sector lacked leadership, tools and means to establish dialogue with the public sector, because the private sector has always been very weak, not very well organized and short of well-prepared technical human resources to run the economy of Suriname. These traditional misunderstandings between the Public and Private sectors still remain, but now are in the way to be solved, in which process the Suriname Business Forum can be very much conducive.

11.2

The Suriname Business Forum

On the 4th of October 2004, the Council of Ministers endorsed the creation of the Suriname Business Forum as a key institution for the improvement of the Public- Private Sector dialogue and business climate environment development. The overall and specific objectives of the Suriname Business Forum are:

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Overall objectives • Promote linkages and collaboration among private sector in Suriname with EU business partners; • Strengthen the capacity of private sector actors to effectively participate in the formulation and implementation of the EU cooperation aid; • Build a new public-private partnership with the government and with the EU based on dialogue and on a quest for complementary action and mutual accountability. Specific objectives • Identify a realistic and feasible short, medium, and long-term strategy for the support of the private sector in Suriname; • Define priority actions to be developed at the macro, meso, and micro level by the private sector; • Select priority actions for EC funding; •

Propose the setting up of a joint structure for continuous dialogue between the public and private sector;

• Propose the setting up of an independent monitoring unit for the implementation of the strategy. The mission of the Suriname Business Forum is to formulate a strategy within the Public-Private Partnership for the development of the domestic private sector and to implement it. That implies, to actively encourage the local business community, to stimulate a sustainable economic growth and to create a productive and full employment in Suriname. One of the first activities of the Suriname Business Forum was to define a common strategy for private sector development, and to prepare an action plan to set up a monitoring unit. The SBF is a multiinstitutional platform for cooperation and dialogue between the Government and the private sector in which the public and private sectors, as well as Labor, NGO and the University are represented. The Steering Committee board of the Suriname Business Forum was installed in 2007 and is formed by the following 9 participating organizations: From the public sector • The Ministry of Trade and Industry • The Ministry of Finance • The Ministry of Justice and Police • Ministry of Agriculture, Livestock and Fisheries From the private sector • The Chamber of Commerce and Industry (KKF) • The Suriname Trade and Industry Association (VSB) • The Manufacturers Association of Suriname (ASFA)


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From the Trade Unions • The Labor Unions Association (RAVAKSUR) From the NGO • The Women Business Group (WBG) From the Academy • The University of Suriname (ADEK). The Steering Committee of the SBF is mandated to achieve the objectives of the Business Forum, with the help of various experts from the private and the public sectors. The creation of the Suriname Business Forum has allowed a Public-Private Dialogue, which is still incipient and has not yet generated many [tangible] visible results. The creation of the SBF has been a good initiative for enhancing forever the dialogue between the public and the private sector; although there are still some discrepancies, as the critique of the private sector for the low level Ministry participation in this forum. Nevertheless, this mutual dialogue does not depend only on the number of the institutions involved in the SBF, but mainly on the change in attitudes of people who represent these institutions. Obviously, as a large forum, its decisions and movements will take time, and at the beginning its actions will move slowly.

11.3

THE Business CentEr

One of the objectives of the Suriname Business Forum is to create a Suriname Business Center. In this sense, the Public-Private Partnership project of the European Commission is to support the SBF with the technical assistance needed for the creation of this new institution. In general, Business Centers are a model in peak in the current world economy. The goal of these Business Centres is to facilitate the creation, development and consolidation of national enterprises. The Business Centers allow the enterprises to have access to physical spaces adapted to their needs, as well as to share different types of resources within the same building in which these services are offered. In general, Businesses Centers are very useful for the development of new small and medium enterprises at the first stages of their activities. The Business Centers are normally established to offer value added administrative and logistic services to all kinds of enterprises that request their services. At the same time, the synergies generated between the enterprises, which share the same building, and the services offered by the Business Centre can better contribute to the innovation and competitiveness of the enterprises. The services offered by these Business Centers allow the enterprises to do away 110


with the difficulties of the administrative and logistic aspects, so that they can concentrate on the production of their products. Among the services offered by the Business Centers are also: statistical data, business library, trade information, and business consulting services, as well as assistance in financial planning and feasibility studies, investment and market analysis, business environment analysis, and training. Other services offered by the Business Centers are related to logistic support, such as making phone calls, scheduling of meetings, packaging and wrapping up of their products, and access to Internet services. Nowadays, the Business Centers also offer many of these types of services “on-line”, avoiding the need that the enterprises have to settle physically within the Business Centre buildings. In the case of Suriname, the EC Public-Private Partnership Project entails that the Suriname Business Center (SBC) will coordinate and deliver business support services and information to the Domestic Private Sector, including capacity building and institutional strengthening. The EC Project Unit is currently working for setting up in a few months the Suriname Business Center, whose activities will be supervised by the Suriname Business Forum. The SBC is staffed by a National Programme Manager, support staff, long term expert, and will be staffed by three Units: the Legislation Unit, the Policy Unit and the Business and Trade Promotion Unit. The SBC will be the focal point for business development, to stimulate the DPS policy, and to promote legislative initiatives. Through the Policy Unit, the SBC will propose the necessary policy and legislative changes in order to overcome the key constraints to DPS development. The SBC will also organize meetings, seminars and conference for supporting the DPS development. The SBC will have its own web page and at the end of the 2 years of EC Project execution, the SBC has to be self-sufficient and sustainable.


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11.4

CONCLUSIONS and measures for the future

Conclusions Unlike the traditional mutual lack of confidence and misunderstandings, now the public-private dialogue has started, although it is still incipient and with no major visible results yet. In any case, the SBF is now a great opportunity for increasing permanently the mutual dialogue between the public and private sectors. At the same time, some doubts still remain about the capacities of both sectors for increasing the mutual confidence. From the side of the public sector, these doubts refer to the commitment of the public sector in the development of this dialogue, to the acceptance of its new role as facilitator and to the insufficient experience and training capacity of the public sector staff to understand the needs of the private sector much better. These doubts also refer to the weak strategies for a better promotion of national enterprise in the international context; and to the public sector’s lack of capacity in the creation of a good environment in which private business has to develop. From the private sector’s side, these doubts are related to the capacity of the private sector to demonstrate enough leadership, tools and means to establish dialogue with the public sector and to the real capacity to assume a leadership role in the economy. But also, the doubts relate to the real level of consciousness that the private sector has about the importance of submitting the information needed for achieving a feasible public national statistical data which reflects the reality of the country. Measures that could be taken The following are some measures that could be taken by the SBF members for improving the publicprivate dialogue and enhancing the business environment - For improving the Public-Private sector dialogue For improving the public-private sector dialogue, the first thing to do is to consolidate the current levels of confidence gained with the creation of the Suriname Business Forum. In this sense, public and private sectors have to consider themselves as allies working for the same goal. The dialogue cannot be fostered if there are still misunderstandings and lack of trust between the public and private partners. The improvement of the mutual public and private sector dialogue has to contribute to create a better business climate. To reinforce the public-private sector dialogue, it is also important that the information flows in both directions in a transparent manner. Public sector needs to collect proper, reliable and promptly information from the private sector activities in order to develop better national statistical information 112


about the Suriname´s enterprises. Information has to be transparent and private sector has to submit to the public sector the necessary and adequate data information for the improvement of the national statistical information on the enterprise sector and its influence on the economy. The response of the private sector to the statistical data demanded by the Government is still very [s]low. Coordination between public and private sector has to be strengthened but also the coordination within the ministries and within the private sector organizations has to be reinforced. It is necessary to have a future common national strategy and vision. It is necessary to conclude and implement a long term national agreement between [all political parties] policy makers and the private sector in order to define the national vision and strategy for the future, in which the priority sectors are established. Once the priority sectors are defined, everybody (public and private sectors) has to work together to achieve these goals. The level of the representation of each institution in the SBF has to be increased, especially in the public sector. All public institutions should be represented at the Director or Deputy Director [policy influencing] levels. Public policy makers have to show a keen interest and willingness in the improvement of the SBF. The SBF has to work in close coordination with the public and private members in order to avoid duplications of activities already proposed by other institutions. - For the creation of the business environment For the creation of the business environment, is necessary to create a favorable legal framework for strengthening the development of the economy. The legal security in the economic activities has to be respected and it should provide equal treatment to all entities of the business community. In this sense, the competition law has to be enacted and the National Competition Commission created. The modifications of the Investment Act have to be enacted. But also other important laws have to be enacted, like the Tourism Law, or the Commercial Code. The National system of Certification, Normalization and Metrology has to be fostered. It is necessary to protect the consumer’s rights and to create the Attorney’s Office of Fair Trading The Economic and Social Council has to become operational. The Economic and Social Council is foreseen as a tripartite institution with 15 members: 5 from the Government; 5 from the private sector; and 5 from the Labor Union. This Council should become the link between the public sector with the Suriname Business Forum, the NGO and other institutions of Suriname. In fact, this Council could be a good challenge for improving this dialogue. The public services, procedures and regulations have to be more favorable to the private business environment. It is important to make easier and simpler the administrative procedures required to the enterprises. “Macro-Economic Review of Suriname 1999-2008”

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The public sector has to establish regulations that contribute to stabilize the economy and make more favorable the domestic and foreign investments. A good and coherent public management contributes to the macro-economic stability, competition and commercial openness. It is important than the development of the economy means also to reduce poverty levels and equity increase. A good environment signifies also to increase the presence of the national enterprises in the international context, to improve the integration of the Suriname’s economy in the CARICOM regional market as well as to enhance the participation of Suriname in other international markets. For the improvement of the business climate it is necessary to find mechanisms that can foster the access of private sector to money credits in more favorable conditions; but it is also necessary to improve the quality of technology modernization and the quality of the production. In this sense, it is necessary to improve a national quality control system in the Suriname’s production sectors. Enhance the professional knowledge and skills of the human resources have to be one of the main goals of the future development of the Suriname’s economy. It is necessary to develop training programs, addressed to the private sector, for improving the human resources abilities, in accordance with market needs. But it is also needed to work in the elaboration of human resources capacity programs into the public sector staff for a better understanding of the different roles to be played by the public and private sector in a modern economy. The entrepreneurial association system has to be strengthened. Private sector organization have to avoid the particular differences that might exist into the different associations and to concentrate in working united to achieve the common goal of strengthening the position of the private sector in the publicprivate dialogue table and in reinforcing its position inside the international financial organizations. Finally, another priority is to make sectoral market studies in order to know which actions have to be taken for marketing the products and for knowing which products have to be produced.

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12. Summary of the main conclusions and future measures In the previous chapters the main conclusions of our analysis were highlighted. This chapter will recapitulate in brief, some of the most important conclusions and measures to be taken to address the main social and economic weaknesses that still remain in the economic performance of Suriname.

12.1.

FINAL conclusions

In summary, as a consequence of all outcomes obtained in the analysis, it can be concluded that Suriname’s economy is stable and growing but still not stable enough to display competitive and comparative capacities to promote sustainable development, because: • The economy is heavily dependent on external factors and is over-concentrated in a few sectors and products •

limited use of technology and innovation in the production sector

• The trade structure is dominated by exports of a few products with insufficient value added • There is a low rates of foreign investments • There is weak and limited financial structure to attend development needs • The enterprise structure is heavily dominated by micro/family enterprises • There is an inadequate production base • The legal framework and commercial laws are outdated • The organization of the Public Administration is not completely efficient • The rate of economic regional integration is low • There is still insufficient dialogue between the private sector and the policy makers • There is a lack of adequate information and socio economic analysis to minimize risks and promote investment. Even if the main weaknesses were solved, Suriname has important structural constraints as the size of the population (the smallest country in population in South America) and small market. The size of the market adds another difficulty for Suriname to compete abroad even in those products in which the country theoretically has a comparative advantage, such as in rice or in bananas.

12.2.

SOME actions THAT could be taken by Suriname

At Policy level • Take profit of the advantages of the international agreements • Open new market possibilities in the CARICOM and Latin America countries • Take advantage of the benefits given by the EPA and other international treaties [see bullet no. 1] “Macro-Economic Review of Suriname 1999-2008”

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At the Institutional level • Reform the current legislation and create new legislation that reflects modernization and innovation, as it is the case in most developing countries. • Introduce quality control and efficiency norms at the level of Public Administration. • Reinforce concepts of horizontal integration within the Public Administration • Improve normalization, homogenization and standardization of statistical information to reflect the economic situation more accurately. • Make the Economic and Social Council operational. At the Economic level • Promote the economy to foreign investment • Diversify its markets for import, export and other services and resources • Take business advantages of the unique and existing multiculturalism • Facilitate the legal procedures for allowing foreign companies to buy land in Suriname • Adapt production to international trade standards and procedures • Introduce processes and practices related to Metrology, Normalization and Certification • Promote higher investment in innovation and technology.

12.3

FINAL observationS

Suriname has great resources and potential to improve its international economic standards and quality of life. But, at the same time, there are great challenges to overcome the multiple constraints of the economy. A question to think about is how Suriname will approach the resolution of these constraints to improve its performance and competitiveness? In general, small economies like Suriname should also think about, how to use alternative mechanisms to increase the wealth and the living conditions of the population, to keep the social peace and to increase equity and reduce poverty. Moreover, some of the actions that could be taken for the future, proposed in this study, are already quite known by the Suriname institutions and authorities, because other international papers have also analyzed the country from other perspectives. This can be seen, for example, in the National Strategy for the Development of the Domestic Private Sector of the Suriname Business Forum where the main weaknesses of the economy were identified.

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13. Annexes

1. List of tables of ABS statistical data analyzed in this study •

Demographic and social statistical data

•

Economic statistical data

2. Updated Diagnose table report considering the current economic situation 3. Bibliography 4. List of contacts 5. Schedule-working weekly agenda 6. Inception report 7. ToR 8. The country, Suriname


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Annex 1. Statistics tables The following is the list of tables of the ABS socio-economic statistical data analysed in the study.

Statistic tables analysed 1.

Demographic and social statistical data

Population • Demographic indicators by sex 2001 - 2005 • Population by age group and sex 2004 - 2005 • Live births by age group of the mother 1990 -2005 • Deaths and district of residence and Sex 1999 – 2005 • Deaths by age group and sex 1999 – 2005 • Population in Suriname by Sex per District • Annual number of Deaths by Age Group and Sex- 2004-2005. • Annual number of Deaths by District of Residence and Sex- 2004-2005. Educationº • Total number of pre-primary school (K.O.) pupils by sex, schools and classes formed per district, school year, 2000 – 2007 • Total number of primary scholl (G.L.O.) pupils by sex, schools and classes formed per district, school year, 2000 – 2007 • Pupils by sex and teachers from special education per school year, 2002 – 2007 • Pupils by sex and teachers from junior secondary special education per school year, 2002 – 2007 • Number of pupils of junior secondary vocational school (LBGO) by sex and schools per district in the school year 2000 – 2007 • Number of pupils of junior secondary general school (MULO) by sex and schools per district in the school year 1990 – 2007 • Students by sex and type of 3rd level Education, 2001 – 2007 • Number of Kindergarten pupils by Sex and District per School Year in 2004-2007. • Number of GLO pupils by Sex and District per School Year in 2004-2007. • Number of MULO pupils by Sex and District per School Year in 2004-2007. • Number of LBGO pupils by Sex and District per School Year in 2004-2007. • Number of VWMKO pupils by Sex and type o VWMKO per School Year in 2004-2007. • Pupils by Sex and Type of Education in the School Year • Number of Students Enrolled in the Faculty of Medical Sciences • Number of Students Enrolled in the Faculty of Technological Sciences 118


• Number of Students Enrolled in the Faculty of Social Sciences • Number of Students Enrolled at the ADEK University by Discipline and Sex in the Academic Year. • Full-time Lecturers in the Faculty of Medical Sciences • Full-time Lecturers in the Faculty of Technological Sciences • Full-time Lecturers in the Faculty of Social Sciences Public health • Annual number of physicians by type, 1998 – 2006 • General physicians by working district and type of service per October 203 and October 2004 • Number of nurses and number of certificates of qualification provided to nurses, 1995 – 2006 • Number of specialists by type of specialization and health institutions, 2003 -2006 • Annual number of available hospital beds by health care institutions and district, 2000 – 2006 • Annual number of deaths by the ten main courses of death, 1999 – 2005 • Number of H.I.V. tested persons by result and by sex, 1999 – 2004 • Number of H.I.V. tested persons by result and by sex, 2004-2007 • Number of H.I.V. positives by age group and sex, 2000 – 2006 • Number of H.I.V. positives by age group and sex, 2004 – 2006 • Annual number of Deaths by AIDS by Age Group and Sex 2005-2006 • Immunization coverage of infants by kind, 1990-2004 • Number of persons hospitalized with malnutrition by age group in Paramaribo, 1995 -2003 • Number of persons hospitalized with malnutrition per hospital in Paramaribo, 1995 -2003 • Number of persons hospitalized with malnutrition by ethnic group in Paramaribo, 2000 -2003 • Suspected Cases of Dengue by Sex, 2004-2006 • Number of Registered Sexually Abused Children by Sex, 2004-2007. Employment • Number of jobs by type of activity, 1997 – 2006 • The average number of employees at large enterprise by type of activities, 2001 2006 • Average number of civil servants per Ministry, 1996 –June 2007 • Number of economically active, employed and unemployed persons and unemployed rate 1995 -2006 (Paramaribo and Wanica • Number of economically active, employed and unemployed persons and unemployed rate 1995 -2006, relaxed definition (Paramaribo and Wanica • Number of Foreigners admitted to the Surinamese Labour Market by Continent in 2004-2006 • Number of Registered Job Seekers by Age Group and Sex in 2003-2006 • Number of Registered Job Seekers by Education Level and Sex in 2003-2006 • Number of Persons Placed by Education Level and Sex in the Districts • Labour Force Participation Rate by Sex (Paramaribo and Wanica, 2006) “Macro-Economic Review of Suriname 1999-2008”

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•

Non Institutional Population 15 yeas and older by Sex and Activity Status (Paramaribo and Wanica 2006)

• Employed and Unemployed Population (15-64 years) by Sex and age group (Paramaribo and Wanica, 2006). Prices and wages • Poverty lines by size and composition of the household, 1st quarter 2006 to 2nd quarter 2007 • Monthly consumer prices indices by major group, 2001 – 2006. December 2000 = 100. • Consumer price indices for Suriname and some CARICOM countries, as well as for its main (nonCARICOM) trading partners, 1997 -2006. • Consumer price indices, 1968 – 2002 and rates of inflation, 1969 – 2002 • Average nominal labour costs per employee at large enterprises by kind of economic activity per year, 2001 – 2006 • Average real labour costs per employee at large enterprises by kind of economic activity per year, 2001 – 2006 • Consumer Price Index Number & Inflation, January up to June 2008: Paramaribo and Wanica. Base Period October-December 2000 (=100). • Monthly fuel prices (in SRD) as fixed by the department of Trade and Industry, August 2005 up to June 2008. Social benefits • Annual number of persons with old age pension by district, 1996 – 2006 • Annual number of children for whom the Government paid child benefit by district, 1996 – 2006 • Annual number of persons that received financial support by district, 1996 – 2006 • Average Poverty Lines by Size and Composition of the Household, 4th Quarter 2007 and 1st Quarter 2008, Paramaribo and Wanica. • Free Medical Aid by District, Number of Claimants and Claimant persons, per month in the 4th Quarter 2007. • Free Medical Aid by District, Number of Claimants and Claimant persons, per month in the 1st Quarter 2008. •

General Old Age Security Claimants by District, Sex and Amount Paid per month in the 4th Quarter 2007.

•

General Old Age Security Claimants by District, Sex and Amount Paid per month in the 1st Quarter 2008.

•

General Old Age Security Claimants by District, Sex and Amount Paid per month in the 2nd Quarter 2008.

• Financial Support by Sex and Amount Paid per month in the 1st Quarter 2008. • Financial Support by Sex and Amount Paid per month in the 1st and 2nd Quarter 2008.

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2.

Economic statistical data.

General economic statistical information • Balance of payments (non-monetary sector) in USD mill. On a cash basis, 1996 -2006 • Gross Domestic Product and Gross National Income at basic prices, respectively at market prices as well as National Income per capita, 1998 -2006 Selected economic statistics of large enterprises • Turnover of large enterprises by kind of economic activity pre year 2001 -2006 • Index numbers of turnover at large enterprises by kind of economic activity per year 2001 – 2006 • The average nominal labour costs per employee in SRD at large enterprise by kind of


121

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Diagnose

Overheids financiën worden gekenmerkt door dalende begrotingstekorten, door niet-monetaire financiering, door overmatig gewicht van de salarissen met lage lonen, en door een tekort aan professionele ambtenaren.

Fiscaal beleid

Huidig wisselkoers beleid heeft geleid tot wisselkoersstabiliteit en desinflatie. Monetair beleid wordt gevoerd door middel van reserveverplichtingen. Rentetarieven vertonen een dalende trend. De officiële markt en de wisselkoersen zijn verenigd. Buitenlandse reserves zijn toereikend om de wisselkoers te steunen.

- Het Overheids tekort is opgelost, maar dit is niet het geval met het buitensporige aantal ambtenaren. De BIZA studie is nog niet geïmplementeerd. Echter, in 2008 worden besprekingen gehouden voor de uitvoering van de aanbevelingen van dit verslag.

Bijgewerkt. In de afgelopen jaren is het algemene beleid van de regering geweest om macro-economische stabiliteit te bereiken. De situatie was helemaal anders vóór het jaar 2000.

Update

Macro-economisch Beleid

Monetair beleid

1.

Overbezetting moet worden afgeschaft, terwijl de kwalificatie en motivatie moeten verbeteren.

Monetair beleid moet zich richten op duurzame wisselkoersstabiliteit via het beheersen van de vraag met het oog op het bereiken van prijsstabiliteit.

Beleid

Een van de voornaamste problemen van de publieke sector is nog steeds veel gewicht van de salarissen en lonen in de totale uitgaven van de nationale begroting. Niet veel dingen zijn gebeurd, maar met uitzondering van de verbetering van de vaardigheden van bepaalde groepen van ambtenaren die betrokken zijn bij de overheid gefinancierde opleidingsprogramma’s

De Centrale Bank is erin geslaagd de sanering van de wisselkoers dicht bij de officiële wisselkoers op de markt te brengen.

Update

Macro-economisch raamwerk

Annex 2. Bijgewerkte Diagnos Tabel

Verlaag verder het begrotingstekort en sta hernieuwde monetaire financiering niet toe. Breng de openbare uitgaven in lijn met het verlaagde tekort en een betere inning van de belastingen. -Maak een uitgekiend publieke sector hervormings plan, gericht op de herstructurering van de openbare dienstverlening en haar personeel met gekwalificeerd en gemotiveerd personeel, met name op basis van de BIZA studie. Afschaffing van subsidies aan Staatsbedrijven en banken. Nastreven van een beleid van vermindering van de hoge corporate fiscale druk op basis van een duidelijke “Tax Cut Plan”.

Aanvullende marktgerichte instrumenten voor het voeren van het monetaire beleid. Handhaven van de internationale reserves op een passend niveau. Liberalisering van het wisselkoersregime in lijn met de macro-economische ontwikkeling.

Aanbevelingen

Het begrotingstekort is afgesneden en de huidige situatie is het overschot. De inning van de belastingen is verbeterd, hoewel er nog steeds ruimte is voor meer verbeteringen.

De situatie is verbeterd en de Europese Centrale Bank houdt de internationale reserves voor vier (4) maanden van invoer. Er is ook een verplichting voor de banken om een kas reserve te hebben bij de Centrale Bank. Dit geld kan alleen worden gebruikt voor de huisvesting van arme mensen tegen 7% van de rente.

Update


123

Diagnose

-Is nog steeds zo dat de publieke sector overbevolkt is en sommige van de ondernemingen zijn inefficiënt, maar in andere gevallen maken ze hoge winst.

De wet is gemaakt, maar het moet worden aangepast. Het Planbureau heeft gebrek aan gekwalificeerde bronnen.

Update

Diagnose

. De oprichting van een bedrijf (beheerst door het statuut recht 1936) is onderworpen aan ongerechtvaardigde verplichtingen, zoals de presidentiële toestemming, met volledige publicatie, enz.

De inrichting van een onderneming, die nog beheerst wordt door de staats wet van 1936, moet nog steeds worden aangepast aan de eisen van de huidige economie.

Update

Wettelijke en justitiele sector

Bedrijfs wet & registratatie

2.

De publieke sector is overbevolkt, en Staats bedrijven (handel, industrie en banken) zijn inefficiënt, en zwaar verlies lijdend in het merendeel van de gevallen.

Liberalisatie & privatisering

Het proces van de planning is onduidelijk.

Beleid & planning

Bespreken en goedkeuren van een nieuw Bedrijven Wet (in voorbereiding door de Kamer van Koophandel) en wetgevende vernieuwingen in de wetgeving inzake het “Register van Koophandel”.

Beleid

Update

Een nieuwe vennootschapsrecht is niet aangenomen. De nieuwe bedrijven registreren zich in het register van de Kamer van Koophandel en Industrie.

Update

Dit nog niet gebeurd, hoewel het de bedoeling van de Overheid is het versterken van de aanwezigheid van de particuliere sector in de economie. Er is nog geen nationale mededingingsrecht, hoewel de Caricom Competition Commission in Suriname gevestigd is.

Ondernemingswet

Een algehele privatiserings beleid moet worden geformuleerd en vastgelegd bij wet, maar onmiddellijke privatisering moet niet worden uitgesloten.

Beleid

Verleng de geldigheidsduur van vergunningen gegeven aan ondernemingen (momenteel algemeen voor slechts 3 jaar). Vereenvoudiging van de wettelijke voorwaarden voor het verkrijgen van vergunningen en toepassing door middel van een “one-stop-shop Definiëren van nieuwe procedures voor het registreren en overweeg de indiening van de registratie bij het Ministerie van Justitie.

Aanbevelingen

Voorbereiding van een strategie, de juridische basis en een uitgekiendactieplan voor de privatisering van openbare bedrijven gedurende een redelijke periode. Afschaffing van staatsmonopolies (bv. luchtvervoer) vaststelling van een mededingingsbeleid.

Organiseer het planningsproces volgens de Wet op het Centraal Planbureau (1973) en een bestudeer de noodzaak van een aanpassing.

Aanbevelingen

De Kamer van Koophandel en Industrie heeft een “one-stop-shop”- voor het eenvoudiger maken van de registratie procedures.

Meer verbeteringen zijn nog nodig voor de vereenvoudiging van de juridische procedures voor het verkrijgen van vergunningen en voor de vereenvoudiging van de procedures voor registratie.

Update

De telecommunicatiesector is geprivatiseerd, maar er zijn nog vele andere belangrijke sectoren, zoals de watervoorziening, de energie of het transport, die nog steeds in handen van de staat zijn.

-De regering produceert jaarlijks een programma en elke 5 jaar een meerjarig plan voor de ontwikkeling.

Update

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Diagnose

Grond zekerheid ontbreekt in Suriname als gevolg van conflicten tussen positieve wetten, traditionele wetten en gebruiksrechten. De Staat biedt geen adequate mechanismen om geschillen bij te leggen en beleggers te beschermen. Onzekerheid heerst bij voorbeeld in de mijnbouwsector.

Land Wet

Het arbeidsrecht is stijf/streng, mist een aantal bepalingen zoals die in verband met stakingen, en maakt het moeilijk om werknemers te ontslaan. Verblijfs-en werkvergunningen zijn nodeloos ingewikkeld.

Arbeids Wet

Onvoldoende naleving van de ‘Toescheidingswet’ op verschillende gebieden, zoals het vrije verkeer van personen. De wet op de nationaliteit verbiedt dubbele nationaliteit en de wet op buitenlanders is nog niet in werking getreden. Met betrekking tot de Nederlandse burgers, visa nodig zijn, hetgeen tegen het 1975verdrag met Nederland is.

Vrij verkeer van personen

Het merendeel van de wetten die het algehele ondernemingsklimaat sturen zijn verouderd.De Wet op intellectuele eigendomsrechten dateert van 1912.

Algemeen regulerend raamwerk

De conflicten tussen positieve en traditionele wetten blijven. De situatie is niet veel veranderd. Juridische grond hervormingen zijn nodig voor de vestiging van nieuwe investeringen en de toetreding van nieuwe buitenlandse directe investeerders in het land.

De arbeidsmarkt is nog steeds stijf/streng en particuliere ondernemingen hebben moeite om medewerkers te ontslaan.

Sommige verbeteringen zijn aangebracht in het integratieproces van de CARICOM regio, maar nog meer dingen zijn nodig om een volledig vrij verkeer van burgers, hoofdsteden, goederen en diensten tussen de Caricom-landen te kunnen garanderen

De intellectuele eigendomsrechten zijn niet goed beschermd. Er is een tekort aan rechters en het beslechten van geschillen kan zeer tijdrovende aangelegenheid worden

Update

Terwijl een passend en doeltreffend systeem moet worden opgericht die moet toezien op de uitgifte en registratie van grond titels en ter bescherming van de rechten, eerbiedig of te compenseer traditionele rechten.

Uitvoeren van de noodzakelijke wetgeving om vrij verkeer van personen in de CARICOM te kunnen verzekeren. Aanvaarden meervoudige nationaliteit (wijziging van de wet op de nationaliteit)

Bereid nieuwe wetgeving op basis van internationale normen en de regionale en WTO-overeenkomsten voor.

Beleid

Meer inspanningen zijn nodig om te komen tot een efficiënt systeem voor de bescherming van alle rechten en de verschillende tegengestelde belangen.

Suriname moet nog meer werken aan de aanpassing van haar wetgeving aan de CARICOM eisen. Totale vrijheid van bewegen is cruciaal voor de ontwikkeling van de CSME.

Suriname is lid van de Wereldhandelsorganisatie, maar heeft haar Trade-Related Aspects of Intellectual Property Rights (TRIPS) overeenkomst niet geratificeerd.

Update

Goedkeuren van wetgeving Vreemdelingencirculaire Landholding en een nieuw juridisch kader voor grond op naam en registratie.

Introduceer verbeteringen in het arbeidsrecht en de uitvoering van het model van het CARICOM recht op beëindiging van de arbeidsverhouding. Zorg voor de inwerkingtreding van het Statuut van Vreemdelingen (1992) Aanpassing van de wetgeving in overeenstemming met het verdrag met Nederland.

Alle visum en afwikkelings eisen moeten worden afgeschaft voor de bewoners uit Europa, de VS en Canada.

Vaststelling van een nieuwe wetgeving inzake intellectuele eigendom en het mechanisme voor de registratie en bescherming (merken, octrooien, auteursrechten, enz.). Voorbereiding en vaststelling van wetgeving inzake openbare aanbestedingen, Antidumping, compenserende en eerlijke concurrentie.

Aanbevelingen

Meer juridische hervormingen zijn nodig in verband met deze kwesties.

Niet veel vooruitgang is geboekt bij dit onderwerp.

Het bestaan van het visumplicht voor inwoners van Europa, de VS en Canada, welke de belangrijkste regio’s voor Suriname zijn, uit handels- en toerisme oogpunt, dragen niet bij aan de ontwikkeling van de nationale economie.

Suriname heeft de belangrijkste internationale eigendomsrechten verdragen, maar de bescherming van intellectuele-eigendomsrechten is niet-bestaand omdat de eigendomsrechten niet zijn opgenomen in het nationale recht.

Update


125

Diagnose

De rechterlijke macht wordt gekenmerkt door de afwezigheid van bepaalde rechtsgebieden (Constitutioneel Hof, regelmatige arbitrage instanties, Ombudsman), het ontbreken van bekwaam en efficiënt personeel (rechters, advocaten, notarissen, griffiers, enz.), inefficiëntie van het gerechtelijk proces, en het ontbreken van alternatieve geschillenbeslechtings- organen.

Rechterlijke macht

Er is een gebrek aan onafhankelijkheid van de rechterlijke macht, corruptie en inmenging van de uitvoerende machten.

Update

Deze beperkingen blijven bestaan. Suriname heeft nog niet het Constitutioneel Hof en de Ombudsman instelling.

Zeker, de situatie is verbeterd in de afgelopen jaren, maar nog steeds is het corruptie niveau hoog . The Heritage Foundation geeft een lage score (30%) van de vrijheid op de corruptie-index. De Transparency International geeft openbare corruptie score van 3-6 aan Suriname. Deze index varieert tussen 10 (zeer schoon) en 0 (zeer corrupt).

Toepassing van de Wet : WETTELIJK GEBRUIK

Een uitgebreid programma hervorming van de rechterlijke macht moet worden uitgewerkt met het oog op de versterking van het systeem, ter verbetering van de efficiëntie en de zorg voor haar onafhankelijkheid. Ook, moet een passend kader worden ingevoerd voor alternatieve geschillenbeslechting.

continueer en neem de Anticorruptie wetgeving aan (in voorbereiding, gebaseerd op het Inter-Amerikaans Verdrag tegen corruptie van 1996).

Beleid

Deze omvangrijke hervorming is nog hangende. Daarnaast is een nieuwe commerciële rechts kader, meer aangepast aan de WTO-criteria en de eisen van de markt, nodig.

Er bestaat een Anticorruptie Wet en een Anti-Corruptie Werkgroep. Suriname heeft het Inter-Amerikaans Verdrag tegen corruptie geratificeerd.

Update

Revitalisering van het Arbitrage Instituut Foundation (AIF). Vaststelling van een moderne wetgeving inzake alternatieve geschillenbeslechting (arbitrage). Verbeter de mogelijkheden voor juridische acties, maatregelen en beroepsprocedures. Ontwikkeling van een moderne ethiek-code. Het opzetten van een trainingsprogramma voor magistraten en hulpfunctionarissen van justitie. Rust de rechtsgebieden toe met bibliotheken en moderne apparatuur. Benoeming van gespecialiseerde rechters (belastingen, administratieve geschillen, enz.). Overwegen de oprichting van gespecialiseerde kamers. Analyseer de gerechtelijke procedure en maatregelen treffen om de efficiëntie te verhogen.

Nodige maatregelen treffen om de transparantie in het justitiële systeem en produceer verifieerbare prestatie-indicatoren; Opleiding van magistraten en justitie hulpfunctionarissen; Nemen van maatregelen om daadwerkelijke scheiding der machten te verzekeren en de uitvoering van justitiele besluiten.

Aanbevelingen

Veel dingen moeten nog worden gedaan met het oog op de verwezenlijking van deze hervormingen. Het Suriname Business Forum is van oordeel dat ongeveer 200 wetten moeten worden hervormd.

Er bestaat een wetgeving op het gebied van anti-corruptie. Bovendien,ondersteunt UNDP het Ministerie van Justitie met een project, waarvan de doelstellingen zijn het verbeteren van de mensenrechten en de corruptie te bestrijden, de opleiding van rechters en het rechterlijke macht systeem transparanter te maken.

Update

126


Diagnose

De valutamarkt regels beperken de beschikbaarheid van leningen in vreemde valuta en het vrije verkeer van kapitaal.

Vreemde valuta

Corporate finance, welke nu hoofdzakelijk voor korte termijn doeleinden wordt verstrekt, wordt belemmerd door de afwezigheid van bepaalde financiële instrumenten, zoals leasing, en de beperkte beschikbaarheid van termijn middelen.

Corporate finance

Een verouderde (en onvoldoende op vele gebieden) wetgeving voor de sector (verschillende wetten, met name de Centrale Bank Wet van 1956, Prudentiële Wet op de banken en kredietinstellingen van 1968, Foreign Exchange Act van 1947).

Regulerend raamwerk

De financiële sector is onderontwikkeld, met slechts een paar banken (een buitenlandse en een paar lokale banken).

Deviezen betrekkingen zijn voornamelijk in contant geld. Suriname is momenteel gekoppeld aan de dollar. De rest van de vreemde valuta zweeft in de markt. De mate van dollarisatie van de economie is nog steeds hoog.

De capaciteit van banken voor de financiering van lange termijn leningen of grote leningen is nog steeds zeer beperkt. In feite, kijken grote ondernemingen in het buitenland, wanneer zij geld willen lenen.

Het juridisch financieel kader is gedeeltelijk hervormd en nieuwe financiële wetgeving is aanvaardbaar. Bovendien is de financiële wetgeving in afwachting van een volledige implementatie.

Duitsland en China hebben om informatie gevraagd over de oprichting van filialen in Suriname, maar de financiële sector is nog altijd onderontwikkeld en worden beheerst door slechts drie belangrijkste banken.

Update

Bedrijfs financiering

Financiele sector

3.

Voortzetten van de liberalisering van kapitaalstromen, rekening houdend met de stabiliteit van de macro-economie.

Een actieplan moet worden uitgewerkt met als doel de verbetering van het aanbod van financiering en toegankelijker maken van met name termijn financiering.

Een nieuw regelgevend kader zou moeten worden vastgesteld voor banken en andere financiële instellingen, terwijl de verdere versterking van de toezichthoudende rol van de Centrale Bank in lijn is met de Basel Core Principles.

Het bevorderen van de concurrentie in de sector door middel van nieuwe wetgeving op het bankwezen en de effectenbeurs en de opheffing van knelpunten en inefficiënties zoals staatsbanken.

Beleid

Sommige maatregelen zijn genomen door de huidige regering met het oog op de regulering van de economie, zoals de wisselkoers inificatie, de invoering van een Overheids-schuld plafond, de vermindering van de controle op de prijzen en de handels beperkingen en de uitwerking van de nationale strategie voor de ontwikkeling van de particuliere sector.

Er bestaat nog geen geconsolideerd financiële sector lange termijn plan voor versoepeling van de toegang tot kredietverlening aan de particuliere sector en voor de monitoren en het meten van het concurrentievermogen en de efficiëntie van de financiële sector.

Dankzij de Bankwet is de capaciteit van de regering om geld te lenen van de Centrale Bank nu meer gereguleerd en beperkt. Aan de andere kant,is de Centrale Bank nu onafhankelijker.

De nieuwe Bankwet heeft bijgedragen tot reguleren en verbeteren van het financieel stelsel van Suriname, maar veel knelpunten en inefficiënties blijven, net zoals de staatsbanken.

Update

Stel vreemde valuta wetten bij, wet-en regelgeving en de liberalisering van de kapitaalstromen (in overeenstemming met de CARICOM Protocol II inzake de opheffing van de beperkingen op het kapitaalverkeer).

Bevordering van nieuwe instrumenten en financiële diensten (kredietgaranties, leasing, obligaties, risico-kapitaal), teneinde te zorgen voor de lange termijn financiering van investeringen.

Herziening van het wettelijk en regelgevend kader voor de financiële sector, met name volgens het CARICOM model. Herziening van de belastingheffing van financiële activa, zoals de dividendbelasting, vermogenswinst en andere activacategorieën van belastingen.

Stimuleer concurrentie door toetreding van nieuwe (buitenlandse) banken en andere financiële instellingen. Privatiseer staatsbanken waaronder de Nationale Ontwikkelingsbank.

Aanbevelingen

Zoals reeds vermeld, Suriname is geslaagd in de stabilisatie van de wisselkoers

Veel meer dingen moeten worden gedaan ter bevordering van deze nieuwe instrumenten en financiële diensten.

Het herziene financiel kader heeft rekening gehouden met de CARICOM regelgeving; niettemin is het aanpassingsproces van de Britse CARICOM Common Law aan de Suriname-wetgeving, is erg traag.

Niet veel maatregelen zijn genomen voor het stimuleren van de ingang van andere buitenlandse banken. Daarnaast is de privatisering van de staatsbanken erg traag en de Nationale Ontwikkelings Bank blijft beheert door de staat.

Update


127

Diagnose

Particuliere sector organisaties zijn er niet in geslaagd om samen te werken bij het verlenen van ondersteunende diensten aan hun constituenten.

Private sector organisaties

De levering van Business Development Services (BDS) is in wezen op het bord van de particuliere sector, maar sommige overheidsinstellingen en kunnen ook diensten die zich inzetten voor ontwikkeling van het bedrijfsleven aanbieden. Deze instellingen spelen nog geen belangrijke rol in de private-sector en het ontbreekt ze aan de juiste atittude.

De bewegingen van Particuliere sector organisaties zijn nog steeds zwak en dit is een van de aspecten die moeten worden verbeterd in de toekomst. Het Business Centre kan de kleine en middelgrote ondernemingen helpen bij samen te werken, in het ontvangen van de gemeenschappelijke diensten, en in trainingen hoe te organiseren om de gemeenschappelijke behoeften te kunnen lenigen.

Suriname is in het proces van het creëren van mechanismen voor het verlenen van diensten die zich inzetten voor de ontwikkeling van de particuliere sector. De Kamer van Koophandel en Fabrieken heeft de one-stop-window en het EG-PublicPrivate Partnership Project is in uitvoering. Een van haar activiteiten is om Business-centrum op te zetten.

Update

Beleid

Particuliere sector organisaties moeten onderzoeken hoe de markt van de BDS te versterken.

De regering dient te streven naar een beleid dat verenigbaar is met de richtlijnen inzake BDS afgegeven door de donorgemeenschap op basis van best practices.

Bedrijfs Ontwikkelings Diensten

Overheids onderssteuning

4.

Dit is een aspect dat nog moet worden versterkt in de toekomst

De regering heeft Meerjaren Ontwikkelings Plan 2006-2011, waarin de versterking van de binnenlandse particuliere sector een van haar prioriteiten is. Aan de andere kant, heeft het Suriname Business Forum de Nationale Strategie voor de Ontwikkeling van de Binnenlandse Particuliere sector uitgewerkt, en het SBF bestuur is geinstalleerd vanaf 2007.

Update

Evalueren van de effectiviteit van ondersteunende instellingen zoals STPO. Beschouw het opzetten van een schema voor BDS, gericht op de bevordering van de BDS markt. Particuliere sector organisaties moeten hun leden helpen om toegang te krijgen tot programma’s die ondersteuning bieden aan BDS, zoals EBAS, Proinvest en anderen.

Steun voor de oprichting van een Business Center, zou voorzien in, onder andere, commerciële informatie, opleiding, begeleiding van ondernemers en andere diensten. Opzetten van een One-Stop-Shop voor de verwerking en het registreren van aanverwante diensten. Installeer een effectieve Investerings Promotie Agentschap, met name om de particuliere sector te promoten. Bevordering van de dialoog tussen het Bureau voor de Statistiek en andere overheidsinstanties om de economische en commerciële gegevens te verbeteren. Analyseer de levering van BDS en het ontwikkel een strategie ter bevordering van onderwijs en beroepsopleidingen dat de levering van BDS zal verhogen.

Aanbevelingen

Dit is een werk dat nog gedaan moet worden. De regering bevordering van de particuliere ondernemingen is nog steeds zeer laag. Veel meer veel dingen moeten gebeuren door de prive-sector organisaties ter ondersteuning van hun leden om toegang te krijgen tot deze internationale regelingen.

EG Public-Private Partnership Project is in voorbereiding van de hoofdzaken voor de oprichting van het Business Centre binnen een paar maanden. Dit Business-centrum zal worden belast met het verstrekken gebruikelijke diensten aan de private sector die door dit soort instellingen normaliter worden aangeboden. De KKF voert de onestop-shop-window uit ter versoepeling van de administratieve procedures aan de investeerders en de ondernemersactiviteiten. Sommige beperkingen blijven, zoals de uitvoering van de Investerings Promotie Agentschap; de nieuwe Investerings Wet voorschriften zijn nog niet vastgesteld; sommige knelpunten vinden hun herkomst in de statistische informatie, hoewel het Algemeen Bureau voor de Statistiek de kwaliteit van de statistische gegevens verbetert, met de ondersteuning van de samenwerking met Nederland. Onderwijs en trainingsprogramma’s blijven een prioriteit, ter verbetering van de technische kennis van de menselijke hulpbronnen.

Update

128


Diagnose

Specifieke verplichtingen worden gedaan volgens de sector van de activiteit, met betrekking tot het verkrijgen van een vergunning, licentie of authorisatie. De procedures voor het verkrijgen van dergelijke documenten zijn vaak lastig en verwarrend. Sommige vergunningen worden foutief (goede of kwader trouw). De procedure kan vaak meer dan 6 maanden, met aanzienlijke vertragingen op het niveau van de adviezen en registratie en publicatie van de vergunningen.

Authorisaties

Vergunnings-procedures zijn nog steeds moeilijk. De Wereldbank Doing Business 2008 rapport plaatst Suriname op positie 97 uit 178 geanalyseerde landen, onder het aspect van “het verkrijgen van vergunningen.”

Meer dingen zijn nodig om de douaneprocedures te hervormen.

Update

Overheid en instituten

Handels- en douaneprocedures zijn verouderde procedures (vergunningen, zonder precieze classificerings regels, software-problemen). Douane personeel heeft gebrek aan professionele vaardigheden, onafhankelijkheid en onpartijdigheid (sommige douane ambtenaren vullen de douane verklaringen zelf in).

Handel

5.

Hoewel richtlijnen moeten worden afgegeven voor specifieke voorwaarden waaraan beleggers moeten voldoen, zou de algemene regel moeten zijn, dat voorafgaande authorisaties tot een minimum worden beperkt en administratieve procedures eenvoudig zijn.

Een Comite op hoog niveau moet worden opgericht ter voorbereiding van de uitwerking van een actieplan gericht op de versterking van de capaciteit van de douane door middel van modernisering, verbetering van de procedures en de ontwikkeling van menselijke hulpbronnen.

Beleid

Volgens het zojuist genoemde WB verslag, betekent aanvragen van vergunningen in Suriname 14 te volgen procedures inhoudt, met een duur van 431 dagen en het kost 158% van het inkomen per inwoner. Het verkrijgen van een handelsvergunning duurt zes maanden en kost SRD 550 (gelijktijdig met vorige procedures) en vele andere bijkomende kosten.

Dit plan moet worden opgezet en uitgevoerd ter versterking van de douane-capaciteit.

Update

Herziening van de licentie-eisen en maatregelen treffen die gericht zijn op verbetering van de procedures voor het verkrijgen van vergunningen.

Zorg ervoor dat de juiste software (ASYCUDA) is geïnstalleerd en dat de douane-medewerkers zijn opgeleid voor het gebruik ervan. Breng onder de aandacht van de CARICOM elk onderwerp dat verband houdt met de douane terminologie en particuliere richtlijnen om willekeurige interpretatie van de classificatie regels te voorkomen. Heroverweeg de negatieve lijst voor de export die de vrijheid van uitvoer, met uitzondering van verdovende middelen toestaat. Aangepaste opleidingen voor douane ambtenaren, en verduidelijking van regels voor toegang tot de post. Toezien op de naleving en verbetering van procedures.

Aanbevelingen

Suriname moet voldoen aan de inspecties, vergunningen en regelgeving van CARICOM-landen.

Meer dingen moeten worden gedaan ter verbetering van de hoogwaardige technologieën bij de douane en voor de opleiding van de douanestafleden.

Update


129

Diagnose

De Overheid wordt geplaagd met uiteenlopende en willekeurige toepassing van de administratieve regels en procedures, het ontbreken van controle en beroepsmogelijkheden, overweldiging van de macht van sommige ambtenaren, gebrek aan professioneel onderwijs en vaardigheden, het ontbreken van gestroomlijnde administratieve behandeling, vooral wanneer er meer dan een overheidsinstantie is betrokken.

Administratieve procedures

Investeringen worden belemmerd door een administratieve chaos, bureaucratie, en almachtig ambtenaren. Belastingvoordelen zijn willekeurig. Registratie van bedrijven vereist een aantal vergunningen en procedures die moeten worden ingediend op verschillende plaatsen

Investerings promotie

Administratieve regels en procedures zijn beperkingen voor de normale ontwikkeling van de particuliere sector bedrijven. De deelname van de Staat in de economie, door middel van de Staatsbedrijven is nog steeds hoog.

Volgens het WB verslag, is Suriname op positie 174, uit 178 landen onderzocht in 2008, in “ bescherming van beleggers.” De WB stelt drie beleggers vast van 0 tot 10, hogere waarden geven meer bescherming aan of openbaarmaking. In het geval van Suriname, is bescherming van de belegger index 2.3; de openbaarmaking index 2; de directeurs aansprakelijkheid index is 0 en de aandeelhouder past in index 5.

Update

Een herziening van de administratieve procedures moet worden uitgevoerd met het doel vereenvoudiging van de procedures, het scheppen van een One-Stop-Shop voor investeerders en personen uit het bedrijfsleven en verhoging van de efficiëntie van de administratie.

Definieer de rol van de overheid in investerings- en handelsbevordering, de uitwerking van een duidelijk beleid en de strategie en het actieplan, met inbegrip van het opzetten van effectieve organisaties ter bevordering van investeringen.

Beleid

KKF heeft al de one-stop-shop window voor investeerders en personen uit het bedrijfsleven.

Er zijn nog meer verbeteringen nodig voor het definiëren van de rol van de Overheid in investerings en handels promotie. Commerciële en handelskantoren moeten worden geopend in de belangrijkste landen van de Surinaamse export bestemming. De bevordering van investeringen moet beter worden gedefinieerd in een actieplan.

Update

Modernisering van de administratie en het opzetten van elektronische uitwisseling met de private-sector. Start een breed kader voor de herziening van administratieve procedures met het oog op de afschaffing van bureaucratische rompslomp, de verbeteren en stroomlijnen van procedures en de modernisering van de administratie. Geef aandacht aan opleidingen voor ambtenaren door middel van het opzetten van opleidingsprogramma’s en het opzetten van een systeem voor het beheer van vraag en aanbod van opleidingen. Het opzetten van een One-StopShop die ondernemers in staat stelt aan alle administratieve vereisten te voldoen. Ontwikkeling en actualisering van de procedures door een partnerschap van de Overheid aan de ene kant en de Business Promotion Instituten en organisaties van de particuliere sector aan de andere kant.

Voorbereiding van een reeks brochures, met inbegrip van “Zaken doen in Suriname”, met duidelijke investeringsrichtlijnen Organiseer een one-stop shop dienstverlening aan investeerders, en versnelde registratie. De shop moet informatie verstrekken aan potentiële investeerders, hen helpen bij het verkrijgen van vergunningen, machtigingen en ook in het maken van de noodzakelijke contacten. De shop moet toegang geven tot de Centrale Bank, de ministeries, de Vreemdelingendienst, de Toerisme commissie.

Aanbevelingen

De oprichting van het Suriname Business Forum, als een multi-institutioneel platform voor de samenwerking en dialoog tussen de Overheid en de particuliere sector, kan een goede gelegenheid zijn voor het uitwisselen van meningen en voor bespreking van beperkingen bij het openbaar bestuur, en de manier hoe het te hervormen en te moderniseren.

Deze vorm van promotie-activiteiten moeten worden verbeterd. Suriname moet af van de huidige beperkingen voor het aantrekken van meer buitenlandse directe investeringen. One-stop-window is opgericht door de KKF om particuliere ondernemers en investeerders te helpen.

Update

130


Diagnose

Twee belangrijke professionele organisaties (ASFA en VSB) en de Kamer van Koophandel en Fabrieken (KKF) verdedigen de belangen van de particuliere sector en / of bieden ondersteuning aan hun leden. Deze instellingen zijn zwak en het ervaren problemen bij de samenwerking.

Private sector organisaties

Er is een ongemakkelijk dialoog tussen de particuliere sector en de Overheid. De particuliere sector kan haar bezorgdheid niet kanaliseren naar de Overheid, en de Overheids-maatregelen die van invloed zijn op de particuliere sector krijgen onvoldoende input van belanghebbenden. De Het Meerjaren Ontwikkelings Plan erkent niet voldoende de rol van de particuliere sector.

Raakvlakken met private sector

De huidige organisatie van de overheid en de administratie komen niet overeenkomt met de rol en de behoeften van een overheid in een moderne staat, en schept onvoldoende wisselkoersen en het monetair beleid. [Relatie niet duidelijk]

Organische structuur

Deze instellingen blijven de belangrijkste in het verdedigen van de belangen van de particuliere sector. De betrekkingen en de samenwerking tussen deze instellingen is verbeterd. Hun deelname aan het SBF kan bijdragen tot wederzijdse versterking.

Er zijn nog steeds misverstanden tussen de publieke en de private sector, maar de dialoog tussen beide sectoren is verbeterd in de afgelopen jaren en nu het vertrouwen tussen beide partijen groter.

De fiscale en monetaire maatregelen getroffen door de huidige regering hebben bijgedragen aan de stabilisering van de economie in de afgelopen jaren.? Relatie met de biologische structuur niet duidelijk.

Update

Particuliere sector organisaties moeten trachten financiering voor de institutionele versterking te mobiliseren ,samen te werken ter verdediging van de belangen van en de dienstverlening aan de particuliere sector en worden betrokken bij de programmering, de monitoring en evaluatie van de EU-steun aan Suriname.

De belangrijkste beleids kwestie is om de dialoog tussen de particuliere sector en de Overheid te institutionaliseren.

Er is dringend behoefte aan herdefiniëring van de rol van de staat, die zich moet richten op defensie, justitie, onderwijs en gezondheidszorg, en terugtrekken van productieve activiteiten, die beter zouden kunnen worden uitgevoerd door de particuliere sector.

Beleid

Deze particuliere instellingen zijn overkoepelende organisaties (VSB, ASFA). Zij zijn werkzaam in het verdedigen van de belangen en behoeften van de private sector Zij zijn werkzaam in opleidingen (VSB) en ook het werken met internationale organisaties (KKF). 85% van de VSB-begroting komt van vergoedingen en verplichtingen van haar leden Niettemin, ging VSB in 2008, op zoek naar andere financiële middelen: verkoop van eigen publicaties, inkomsten uit projecten, enzovoort.

Het Suriname Business Forum is het multi-institutioneel platform voor de verbetering van de samenwerking en de dialoog tussen de publieke en private sector.

Sommige acties zijn reeds getroffen door de Staat, in deze betekenis. De telecommunicatie-sector is reeds in particuliere handen. De regering is in de onderhandeling met een Franse onderneming voor de privatisering van de bananen sector. Maar nog steeds is het gewicht van de Staat in de productieve economie zeer hoog. In 2007 representeerden ondernemingen in handen van de staat bijna 30% van de totale binnenlandse investeringen.

Update

Richt een lichaam op waarin een bundeling van alle particuliere sector representerende organisaties. Mobiliseer financiering voor de capaciteitsopbouw van de particuliere sector representerende organisaties. Herzie de rol van KKF, haar statuten en functies.

Stel een centraal orgaan in dat de particuliere sector (Private Sector Foundation, Particuliere sector Commissie) vertegenwoordigt. De installatie van een Sociaal-Economische Raad op tripartiete basis.

Implementeer een nieuwe, slanke, efficiënte Overheids structuur Bevrijd de Overheid van niet-openbare diensten (zie macro hierboven) en privatiseer diensten waar nodig Herziening en aanpassing van wet-en regelgeving om de Overheid te ontheffen van niet-strategische diensten zoals auto-keuring, vuilophaal, openbaar vervoer, telecommunicatie, haven.

Aanbevelingen

De rol van de KKF is niet helemaal herzien.

Er bestaat nog geen federatieve organisatie die alle particuliere organisaties vertegenwoordigt. Instellingen uit de particuliere sector zijn nog steeds op zoek naar meer externe financiële middelen.

Er is nog geen centraal orgaan dat de hele private-sector vertegenwoordigt. De particuliere sector netwerk organisaties zijn nog steeds zwak, maar de bedoeling om deze instelling op te richten bestaat en nu is het beste moment en de beste kans om het te doen. De Sociaal-Economische Raad nog niet is nog niet ingesteld. Dit orgaan zou de juiste kunnen zijn voor verbetering van de dialoog tussen de arbeids-sector en de publieke en private sector.

De Staat moet begrijpen en accepteren om een faciliterende rol te spelen in de economie en om de productieve economie te laten leiden door de particuliere sector. In die zin is de hervorming van het openbaar bestuur erg nodig voor de nieuwe rol te spelen door de Staat in de economie.

Update


131

Diagnose

Procedures

Het fiscale systeem lijkt te reageren op de bezorgdheid van de regering over het inzamelen van inkomsten, zonder inachtneming van de economische en sociale ontwikkelingsoverwegingen. De negatieve perceptie over belastingheffing wordt verergerd door slecht beheer van openbare middelen. De fiscale wetgeving is ontoereikend. Zo is het bijvoorbeeld niet toegestaan om compensatie voor verliezen binnen een holding te krijgen. Wisselkoersschommelingen genereren schijnbare winst die onderworpen zijn aan belastingen. Er zijn geen algemeen aanvaarde richtlijnen voor accounting, auditing en rapportage van wisselkoersschommelingen.

Het belasting systeem is moeizaam en moet worden geherstructureerd. Suriname heeft hoge belastingen. Het top inkomstenbelasting tarief is 38% en het percentage van de vennootschapsbelasting is 36%.

Update

Beleid In de vennootschapsbelasting, worden niet-ingezeten vennootschappen belast op de inkomsten verkregen door middel van een permanente vestiging in Suriname. In principe worden de uitgezonden werknemers niet geconfronteerd met andere belastingen in Suriname dan de inkomstenbelasting. Als de werkgever van de uitgezonden werknemers een vaste aanstelling heeft in Suriname, is de werkgever verplicht loonbelasting bij de reguliere loon in te houden.

Update

Belasting en douane

Er is behoefte aan herziening van het totale fiscale stelsel, met het oog op de vereenvoudiging en de aanpassing van het fiscale systeem naar een moderne markteconomie en sociale behoeften.

Belasting system en andere prikkels

Belasting systeem

6.

Herzie fiscale regelgeving en rapportage in overeenstemming met internationale standaarden voor jaarrekeningen en de huidige zakelijke realiteit. Duidelijke en transparante informatie moet worden verstrekt aan het grote publiek Beroepslichaam moet worden ingesteld voor transparant en efficiënt fiscaal beroep indien nodig. Implementeer een nieuw vereenvoudigd fiscaal systeem dat rekening houdt met de ontwikkeling en internationale best practices. Bij het voorbereiden van een algemene herziening van het belastingstelsel, neem mee aanpassingen en verduidelijkingen van onduidelijke belasting of omstreden bepalingen.

Aanbevelingen

Ondernemers in de Particuliere sector vragen nog steeds naar een duidelijker en simpeler belasting systeem in Suriname.

Update

132


Update

Het fiscale systeem is samengesteld door de volgende fiscale structuur: 1. Belasting op de netto inkomen en winst, samengesteld uit: Winstbelasting voor ondernemingen, vennootschappen en firma’s, en belastingen op personen (inkomstenbelasting en dividendbelasting). 2. Belastingen op onroerend goed, dat is samengesteld uit: huurwaarde belasting en de eigendoms belasting. 3. Belastingen op goederen en diensten, samengesteld uit: omzetbelasting, likeur, bier, tabak, niet-alcoholische dranken, entertainment, loterij, casino, motorvoertuigen en belasting op de productie van aluminiumoxide). 4. Belasting op internationale handel en transacties, samengesteld uit: douanerechten, statistiek kosten, consent recht en hout export belasting 5. Werknemers bijdrage bestaat uit: gemeenschappelijke oudedags voorzienings fonds, pensioenfonds en medisch fonds.

Diagnose

Procedures voor de belasting indiening en voor de douane zijn niet gebruiksvriendelijk. Een aantal bepalingen staan verschillende interpretaties toe (verschillende tarieven voor goederen kunnen worden toegepast in overeenstemming met de verschillende mogelijke classificaties. Betitelings tarieven worden nog steeds in rekening gebracht, ondanks het ontbreken van een rechtsgrondslag; koersmarge bij het importeren van goederen). Er is geen systematische benadering (bijvoorbeeld een ondernemer die wordt beschouwd als een producent in het kader van de omzetbelasting wordt niet beschouwd als een producent op grond van de douane verordening). Classificaties);

Beleid Een FIAS-achtige studie moet worden verricht om aan te bevelen vereenvoudiging en rationalisatie van de administratieve procedures. Ook een bewustmakingscampagne en opleiding van ambtenaren is nodig ter verbetering van raakvlakken tussen de belastingplichtige en de Belastingdienst.

Update Meer verbeteringen die nog moeten worden gedaan, bij de vereenvoudiging en rationalisatie van de administratieve procedures, in overeenstemming met de aanbevelingen van de FIAS.

Aanbevelingen Vereenvoudig procedures, zowel voor het indienen van belastingen als douane inklaring. Train personeel bij de Belastingdienst om gebruikersvriendelijker (??) te worden en geinformeerd over de laatste ontwikkelingen op fiscaal gebied en systemen in het buitenland. Verbeter communicatie tussen verschillende overheids lichamen om overlapping te voorkomen.

Update Meer acties moten worden ondernomen in het belasting systeem vereenvoudigings proces.


133

Diagnose

De regering is bezig met de uitbreiding van de haven-faciliteiten. Veel infrastructurele beperkingen zijn overgebleven van de koloniale periode.

De meeste nutsbedrijven zijn nog steeds Staatseigendom en bieden slechte dienstverlening, met een slechte prestaties. In sommige gevallen hebben zij een quasimonopolie, (bijvoorbeeld telecom). Kosten van de lokale infrastructuur (bijvoorbeeld elektriciteit) worden vaak gedragen door de klant.

Telecommunicatie is geen Staats bedrijf meer. Niettemin zijn nutsbedrijven en andere belangrijke sectoren nog steeds in handen van Staats-ondernemingen.

Private Participatie in Infrastructuur (PPI)

De huidige regelgeving maakt het mogelijk voor inefficiënties, hoge prijzen en slechte infrastructuur.

Regulerend raamwerk

Suriname heeft gefaald in het handhaven en verbetering van haar infrastructuur. Als gevolg daarvan zijn, infrastructurele diensten pover, terwijl de hoge prijzen een zware last zijn. Haven en luchthaven voorzieningen zijn niet efficiënt en vormen een belangrijke belemmering voor de handel, het toerisme en het bedrijfsleven.

Update

Beleid

Overheid en de particuliere sector moeten samenwerken om een beleid en strategie voor de bevordering van particuliere deelname in de infrastructuur te definieren.

Een modern regelgevend kader zou moeten worden opgezet, met inbegrip van wetten en institutioneel beheer.

Update

Dit gemeenschappelijk beleid is nodig. In sommige gevallen werkt de particuliere sector, op eigen initiatief, in de verbetering van de infrastructuur op het platteland wanneer deze infrastructuur volledig in verband staat met haar activiteiten.

Regeringsbeleid en de investeringen in infrastructuur zijn verbonden in het binnenland met de ontwikkeling van de mijnbouwsector.

Infrastructuur

De rol van de Overheid moet worden versterkt in de planning van infrastructuur, beleidsformulering en bevordering van investeringen in infrastructuur.

Infrastructuur en voorzieningen

Bedrijfs wet & registratatie

7.

Herzie wet-en regelgeving, om particuliere exploitanten in staat te stellen om infrastructurele diensten aan te bieden. Bevorder energiebesparing. Privatisering van Staatsbedrijven Instituut one-stopwindow voor particuliere deelname in de infrastructuur toestaan van concessies, BOT / BOO, enz.

Verordeningen vaststellen voor de belangrijkste infrastructuur sub-sectoren (havens, luchthavens, wegen, energie, water, telecommunicatie, elektriciteit).

Verbeter de planning en programmering van de investeringen in infrastructuur.

Aanbevelingen

Het wetgeving hervormings proces is traag, evenals het privatiseringsproces.

Suriname heeft de belangrijkste internationale eigendomsrechten verdragen, maar de bescherming van intellectuele-eigendomsrechten is niet-bestaand omdat de eigendomsrechten niet zijn opgenomen in het nationale recht.

De Kamer van Koophandel en Industrie heeft een “one-stop-shop”- voor het eenvoudiger maken van de registratie procedures.

Meer verbeteringen zijn nog nodig voor de vereenvoudiging van de juridische procedures voor het verkrijgen van vergunningen en voor de vereenvoudiging van de procedures voor registratie.

Update

Annex 3. Belangrijkste geanalyseerde bibliografie Bibliografie alleen in de Nederlandse taal 1. ABS (2008a): Algemene Bedrijventelling in Suriname 2007. Definitieve Resultaten. Geheel Suriname en per District. Algemeen Bureau voor de Statistiek. Juni 2008. Paramaribo. Suriname. 2. ABS (2008b): Vormen van Ongelijkheid. Bevolkingsprojecties 2006-2024. Algemeen Bureau voor de Statistiek. Juni 2008. Paramaribo. Suriname. 3. ABS (2002-2008): ConsumentenPrijsindexcijfers en inflatie over 2002-2008. Algemeen Bureau voor de Statistiek. Juni 2008. Paramaribo. Suriname. (12 pages) 4. CBVS (2008): De Economische Ontwikkeling in het Derde Kwartaal van 2007. Centrale Bank van Suriname. Directoraat Monetaire Zaken & Economische Aangelegenheden. 25 Maart. Paramaribo. Suriname. (45 pags) 5. KKF (2008): Het Handelsregister. Kamer van Koophandel en Fabrieken. Suriname. Paramaribo (1page) 6. MVF (2008): Memorie Van Toelichting. Wet van tot Vaststelling van de 7-E Afdeling. Van de Begroting van Uitgaven en Ontvangsten voor het Dienstjaar 2008 Betreffende het Ministerie van Finacien. Paramaribo Suriname. (7 pages) 7. VSB (2003): Suriname Arbeidswetgeving. Vereniging Surinaams Bedrijfsleven. Uitgave: Oktober 2003. Paramaribo. Suriname (6 pages) 8. VVRE (2008): Het Perspectief Van Financiering Van de Rijstsector in Suriname. Vereniging Van Rijst Exporteurs. Februari 2008. Paramaribo. Suriname (12 pages)

134


Bibliografie in de Engelse taal 9. ABS (2008c): Geselecteerde Economische Statistieken van grote ondernemingen. Jaarrekening en kwartaalcijfers. Algemeen Bureau voor de Statistiek. Juli 2008. Paramaribo. Suriname. 10. ABS (2008d): Suriname, basisindicatoren. Algemeen Bureau voor de Statistiek. April 2008. Paramaribo. Suriname. 11. ABS (2008e): Statistical Papers 6. Algemeen Bureau voor de Statistiek. Juni 2008. Paramaribo. Suriname. 12. ABS (2007a): Statistisch Jaarboek 2006. Algemeen Bureau voor de Statistiek. November 2007. Paramaribo. Suriname. 13. ABS (2007b): Statistieken van lonen en prijzen in de bouwsector. Algemeen Bureau voor de Statistiek. September 2007. Paramaribo. Suriname. 14. ABS (2007c): Geselecteerde genderstatistieken Suriname. Algemeen Bureau voor de Statistiek. November 2007. Paramaribo. Suriname. 15. ABS (2007d): Handelsstatistieken 2001-2006-Trade Statistics. Algemeen Bureau voor de Statistiek. September 2007. Paramaribo. Suriname. 16. ABS (2007e): Statistical Papers 5. Algemeen Bureau voor de Statistiek. Oktober 2007. Paramaribo. Suriname. 17. ABS (2006): Statistisch Jaarboek 2005. Algemeen Bureau voor de Statistiek. November 2006. Paramaribo. Suriname. 18. ABS (2005): Statistisch Jaarboek 2004. Algemeen Bureau voor de Statistiek. November 2005. Paramaribo. Suriname. 19. ABS (2004): Statistisch Jaarboek 2003. Algemeen Bureau voor de Statistiek. November 2004. Paramaribo. Suriname. 20. ABS (2002): Handelsstatistieken 1996-2001-Trade Statistics. Algemeen Bureau voor de Statistiek. Juni 2002. Paramaribo. Suriname. 21. DIAGNOS (2001): Suriname Diagnos. Private Sector Development Strategy. De Europese Commissie en de Afrikaanse, Caribische en Pacifische landen. Diagnos. Suriname Business Forum. Unit. Maart 2001. Brussel, België. “Macro-Economic Review of Suriname 1999-2008”

135

22. EIU (2004): Suriname Country Report. De Economist Intelligence Unit. November 2004. Verenigd Koninkrijk. 23. FIAS (2003): Herziening van het “Investsur” initiatief ter versterking van Suriname’s investeringsklimaat. Foreign Investment Advisory Service. International Finance Corporation en de Wereldbank. Mei 2003. Washington. Verenigde Staten. 24. GBS (2006): Handels Balans van Suriname in US $ per HS-afdeling, 2000.Publieke Betrekkingen en Informatie. Algemeen Bureau voor de Statistiek. 30, augustus 2006. Paramaribo. Suriname. 25. GRS (2006): Multi-Annual Development Plan 2006-2011 (MOP). Strategie voor Duurzame Ontwikkeling. Regering van de Republiek Suriname. Juni 2006. Paramaribo. Suriname. 26. IADB (2001): Governance in Suriname: Economische en Sector Studie serie. RE3-01-001. REGIO 3. Inter-American Development Bank. April 2001. 27. IADB (-): Trade Sector Support Program. SU-L1002. Lening voorstel. Inter-American Development Bank. 28. IMF (2008): Suriname Statistische Bijlage,Lening voorstel. Internationaal Monetair Fonds. Augustus, 2008. 29. KKF (2008): TIO jaarlijkse Country Report. Suriname 2008. Suriname Kamer van Koophandel en Industrie, Paramaribo, Suriname. Juli 2008. 30. KKF (2007): Kleine en middelgrote ondernemingen in Suriname. Hoofdstuk 3. Suriname Kamer van Koophandel en Industrie, Paramaribo, Suriname. 2007. 31. KLINKERS, Leo EM (2007): Gaps and Opportunities for New Business Creation and Small and Micro-enterprise Development in Suriname. Directeur Klinkers Public Policy Consultants. Paramaribo / Den Haag, april 2007. 32. KRASNAPOLSY (2005): Capacity Building ter ondersteuning van de voorbereiding van de economische partnerschapsovereenkomst. Krasnapolsky Seminar. EPA Impact Study. Juni 2005. Paramaribo. Suriname. 33. MLVV (2008): Landbouwstatistieken 2004-2007. Ministerie van Landbouw, veeteelt en Visserij. Mei 2008. Paramaribo. Suriname.

136


34. RAMHIT, Hemkaran en RIBBINK, Gerrit (2008): Private Sector Assessment Capaciteit Suriname. Eindverslag (ontwerp). Triodos, Facet. Maart 2008. Paramaribo. Suriname. 35. SBF (2008): Notulen vergadering. Suriname Business Forum en B & S Europe. Juli 10th, 2008. Paramaribo. Suriname. 36. STF (2005): Maandbericht inzake toerisme Statistieken. Vol II. N º 7. Toerisme Suriname Staqtistics. Regering van Suriname. Ministerie van Transport, Communicatie en Toerisme. Juli 2005. Paramaribo. Suriname. 37. STF (2005): Business Plan voor het Suriname Toerisme Bestuur Suriname Integrated Development Programme. Stichting Toerisme Suriname. Mei 2005. Paramaribo. Suriname. 38. TELTING, Andre (2007): Suriname: evolución Económica. Diplomacia, Estrategia y Política. Julio / Septiembre 2007. 39. VSB (2008): Beperkingen binnen sectoren vertegenwoordigd door het VSB in de scope van de SBF / SBC ‘Start-up programma raming “. Vereniging Surinaams Bedrijfsleven juni 2008. Paramaribo. Suriname. 40. VSB (2007): Jaarverslag 207. Vereniging Surinaams Bedrijfsleven. Paramaribo. Suriname, 2007. 41. WBG (2005): Business Guide 2005. Women’s Business Group Foundation. Paramaribo. Suriname, 2005.


137

Annex 4. List of contacts NAME

138

INSTITUTION

POSITION

CELULAR PH.

DESK PHONE/FAX

E-MAIL/ WWW

BERENSTEIN Mr.

Labour Union AssociationVakbonds Associatie-RAVAKSUR

voorzitter

8644682

BILKERDIJK, Wilgo F.

Billy´s

CEO

BOEDHOE, Wonnie W.

Nationale Ontwikkelings Bank Suriname-NOB

BRAHIM, Michel

Fernandes Company

BRIENBURG, Gerrit

Min.van Landbouw,Veeteelt en Visserij

directeur van agrarische planning en ontwikkeling

DP. 476654 / F. 470301

[email protected]

CAMERON, Sandy S.

Nationale Ontwikkelings Bank Suriname-NOB

manager kredieten

DP. 465000 - 465061 / F. 497192

<[email protected]> <[email protected]

KARAM, ANTHONY

Institute for Graduate Studies and Research. Anton de Kom University of Suriname

docent Economie

DP. 490900 - 465558 / F.4911022

CICILSON, Wendy

Algemeen Bureau Statistiek

onderdirecteur Statistieken

DP. 422410 / F.425004

COMPAIN, Ramona


public relation en informatie

DP. 422410 / F.425004

DE ROOIJ, Christine

United Nations Development Programme

Programme Manager

DP 421417 - 425148 420030 / F. 425136

Christine.de.rooij@undp. org.sr

DJOSETIKO, Henna

Ministerie van Handel en Industrie

onderdirecteur Handel

DP. 402692 - 402080 Ext. 2250 / F. 402692 - 402602

DOEKHIE, Rahid V.

Suriname Business Forum (en ASFA)

SBF voorzitter

DP 425030 (direct) / F. 470348

[email protected]

Ezechiëls, Otto H.

Centrale Bank van Suriname

Directeur, bancaire caken

DP. 411183 - 473741 / F. 476444 - 426769

oezechiels@cbvs,sr

GRAANOOGST, Eline

EC Project Unit

Jurist

HARNANDAM, Nancy


public relation en informatie

DP. 471543 / F. 425004

<statistics@ statistics-suriname. org.sr>,

HOF, Peter-Derrek

Ambassade van Nederland in Suriname

Hoofd Ontwikkelings samenwerking en economische zaken

DP. 477211 ext. 352 / F. 421412

[email protected]

ISSELE, Ernie

EC Project Unit

Nationaal directeur

KHODABAKS, Zevoera

Ambassade van Nederland in Suriname

beleidsadviseur economie en handel

DP. 477211 ext. 333 / F. 421412

LI E A. YOUNG, Armand

Stichting Toerisme Suriname

voorzitter

DP. 424878 - 475165

LONT, Julius

Nationaal Planburo

Directeur afdeling Geografische planning

DP. 475775 - 477408 / F. 475001

MAX D. MAN, A. Hing

Kamer van Koophandel en Fabrieken

Uitvoerend bestuurslid

MENKE-TANGALI, Lilian

Nationaal Planburo

Hoofd afdeling macro economie

DP. 477408 / F. 475001

MEYER, Marcel A.

Vereniging Surinaams Bedrijfsleven

voorzitter

DP. 475286 - 475287 / F.472287

[email protected]

MONSELS-THOMPSON, Lilian

Nationaal Planburo

Algemeen directeur

DP. 477408 / F. 475001

,
DP. 434060 - 434114 F. 434129

[email protected]

DP. 465000 - 465061 465881 / F. 497192

<[email protected]> <[email protected]

DP. 471313

8503878

8817248

8109107

8575552

<[email protected]> www.statistics-suriname. org

DP. 459752 ext. 753

DP. 459752 / 753

DP. 530311 - 474536 / F. 474779 - 472111


zevora.khodabaks@ minbuza.nl

, [email protected]

NAME

INSTITUTION

POSITION

CELULAR PH. 8937309

DESK PHONE/FAX DP. 490900 ext. 120 465558 / F. 4911022

E-MAIL/ WWW

MUNGRA, Subhas Ch.

Institute for Graduate Studies and Research. Anton de Kom University of Suriname

docent Economie

<[email protected]> <schmungra@yahoo. com>

MUNGROO, Albert

EC Project Unit

deskundige administratieve procedures

NAAREDORP, Henk

Suriname Business Forum (and KKF)

Executief lid SBF en KKF, voorzitter

8743993

DP. 459751 - 459752 / F. 474779 - 421266

, [email protected]

NUBOER, STEVE

N.V. Nuprocess, melkproducten

voorzitter

8676309

DP. 433557

[email protected]

OLIVIEIRA, Cornelly

Women's Bussiness Group -WBG

voorzitter

8587242

PANDAY, Martin


bestuurslid

SCHOLLAERT, Jan

Inter-American Development Bank

SEXSTONE, Darrell

European Commission Delegation

Hoofd Economische Afdeling

TJALIM, Georgetine

Ministerie van Financien

onderdirecteur afdeling Economische Zaken

URGARTE, Ernesto

EC Project Unit

VAN ESSEN, René WIEBERS, Mrs.

DP. 459752 / 753

DP. 424878 - 475165 [email protected] DP. 499322 - 499349 492185 / F. 493076

darrell.sexstone@ ec.europa.eu

8712206

DP. 475491 - 475490 - 475617 - 476030 478801 / F. 475614

[email protected]

Permanente Internationaal technisch assistant

8109108

DP. 459752 / 753

Vereniging Surinaams Bedrijfsleven

directeur

8598556

DP. 475286 - 475287 / F. 472287

Women's Bussiness Group -WBG

ondervoorzitter

8540048


139

140


Dag

Europa-Spanje

15:00-18:00

Middag

Europa-Spanje

15:00-18:00

Ochtend

Middag

Europa-Spanje

09:00-13:00

15:00-18:00

Ochtend

Middag

Madrid-Amsterdam-Paramaribo

07:00 - 13:00

13:00 - 16:15

Ochtend

Middag

consultant's hotel in Paramaribo

15:00 - 22:00

Ochtend

Middag

Verslag bijeenkomsten

Nanas Resort-SBC-EC Project Unit


11:00 - 12:00

12:00 - 13:00

Maandag 18

Ochtend


Aanvangs rapport

09:00 - 13:00

Zondag 17

Madrid-Amsterdam-Paramaribo

voorwerk van de missie

Zaterdag 16

Europa-Spanje


Vrijdag 15

Europe-Spain


09:00-13:00

Donderdag 14

Europa-Spanje


09:00-13:00

Plaats

Ochtend

Tijd

Woensdag 13

WEEK 1

Verslag aan de Local Permanent LTA van de Project Unit

Verslag aan de Permanente ITA van de EC Project Unit

Analyse van documentatie en aanvangs rapport

Analyse van documentatie en aanvangs rapport

Veldbezoek-consultant reist van Europa naar Suriname

Veldbezoek-consultant reist van Europa naar Suriname

Herzien van Diagnos Rapport en andere informatie






Mensen

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Status (contact)

Technical Assistance Mission to Suriname - Socio-economic Study EC Project « Public Private Partnership – Support to the Domestic Private Sector – Suriname Business Forum (SBF)”

AGENDA JESÚS-CARLOS CORRAL FUENTES- 16/8 - 20/9

Annex 5. Schema-werk week agenda


141

UNDP kantoor

Trip naar Min.Financien

11:30 - 13:00

13:00 - 15:00

VSB kantoor

13:30 - 15:30

Consultant´s hotel in Paramaribo

Ochtend

09:00 - 13:00

Missie's intern werk

Zaterdag 23


Centrale Bank gebouw

11:00 - 13:00

15:30 - 20:30

Planburo

09:00 - 11:00

Ochtend

Middag

Vergaderingen

Vrijdag 22


Trip naar Min.PLOS

15:30 - 20:30

EC project Unit kantoor

10:00 - 12:00

Middag

Vergaderingen

08:00 - 10:00

Ochtend


Donderdag 21

Trip naar Min.PLOS

15:30 - 20:30


11:00 - 12:15

14:30 - 16:30


09:00 - 11:00

Ochtend

Middag

Afspraken arrangeren

Woensdag 20


EC project Unit Office

11:00 - 12:15

14:00 - 20:30

EC project Unit Office

Middag

Afspraken arrangeren

09:00 - 11:00

consultant´s hotel in Paramaribo


Plaats

Ochtend

15:00 - 20:30

13:00 - 14:00

Tijd

Dinsdag 19

Middag

Dag

Analyse van documentatie en gehouden vergaderingen

Analyse van de ontvangen documenten

VSB voorzitter Dhr. M. Meyer en Dhr. R. Van Essen

Vergadering met exec.directeur Bankzaken- Mr. Ezechiëls

Planburo directeur Mrs. Monsels


Vergadering met Mevr. Khedoe

Vergadering met Programme Manager - Mrs. C. De Rooij

Planburo directeur Mrs. Monsels

Telefoontjes ter voorbereiding van de vergaderingen


Projectadviseur dhr. René V. Essen


uitwerken van de agenda voor de vergaderingen



uitwerken van de agenda voor de vergaderingen

Analyse van ontvangen documentatie en te houden vergaderingen

Verslag aan de BSE directeur en bestuursleden

Mensen

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Afgezegd en uitgesteld

Uitgevoerd


Uitgevoerd

Uitgevoerd


Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Status (contact)

142


Minv.Financien

13:00 - 15:00

Nationale Ontwikkelings Bank

13:00 - 15:00

Vergaderingen

Mini.van Justitie

Consultant ´s hotel in Paramaribo

08:00 - 10:00

11:00 - 13:00

Donderdag 28

Ochtend



12:30 - 13:00

15:00 - 22:00

Unit Project Office

09:00 - 12:30

Ochtend

middag

Vergaderingen

Woensdag 27


IADB gebouw

11:00 - 13:00

15:00 - 22:00

Min.van Handel en Industrie

middag

Vergaderingen

09:00 - 11:00

Ochtend


Dinsdag 26

ASFA gebouw

15:00 - 22:00

Nederlandse Ambassade

14:00 - 16:00


10:30 - 12:30

Ochtend

middag

Vergaderingen

08:00 - 10:30

Maandag 25

WEEK 2

15:00 - 22:00

Middag

Consultant t´s hotel in Paramaribo


09:00 - 13:00

Ochtend


Plaats


15:00 - 22:00

Tijd

Zondag 24

Middag

Dag

Telefoontjes ter voorbereiding v.d. vergad. En analyse documenten

Beleidfsadviseur - Mrs. Moeniralam

Analyse van documentatie en concept van studie maken

Vergadering met Mrs. Bhoedoe, Yvonne

verzamelen van statistische data in het Openbaar Informatie kantoor

Telefoontjes ter voorbereiding v.d. vergad. En analyse documenten

Analyse van de documentatie en conceptueren studie

Vergadering met mevr. Khedoe

Programme Officer Jan Schollaert en residerend vertegenwoordiger

Onder directeur Handel Mevr. Djosetiko

Analyse van documentatie en conceptueren van studie

ASFA voorzitter dhr. Doekhie en andere fabrikanten

Mrs. Zevoera Khodabaks

analyse van documentatie en planning v.d. volgende week



Mensen

Uitgevoerd

afgezegd en uitgesteld

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Uitgevoerd

Status (contact)


143


09:00 - 13:00

15:00 - 22:00

Ochtend

middag

15:00 - 22:00

middag

EC Project Unit

13:00 - 15:00



11:00 - 15:00

15:00 - 22:00

Min.van LVV

09:00 - 11:00

Ochtend

middag

Vergaderingen

Dinsdag 2


VSB kantoor (Min.PLOS)

11:00 - 13:00

15:00 - 22:00

WBG kantoor

Ochtend

middag

Vergaderingen

09:00 - 11:00

Maandag 1

WEEK 3


Ochtend



09:00 - 13:00

Zondag 31




16:00 - 22:00

zaterdag 30

KKF kantoor

Universiteit van Suriname

11:00 - 13:00

12:00 - 16:00

EC Project Unit Office

middag

Vergaderingen

09:00 - 11:00



Plaats

Ochtend

15:00 - 22:00

13:00 - 15:00

Tijd

vrijdag 29

middag

Dag

Analyse van de documentatie en concept van studie maken


Vergadering met dhr. Breinburg


Vergadering met de ITA en NTA leden

Beleidsadviseur van Min PLOS- dhr. Rene Van Essen

Women Business Group Foundation - Mrs. Olivieira

Analyse van documentatie en planning v.d. volgende week


Voorbereiding Programma Memorandum

Analyse van documentatie en planning v.d. volgende week




Vergadering met KKF directeur en bestuursleden

Institute for Graduated Students & Research - Mr. Subhas Mungra

Analyse van de situatie rond de missie en telefoontjes voor new vergaderingen



Mensen

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Status (contact)

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15:00 - 22:00

Ochtend

middag



Maandag 8

Ochtend

09:00 - 11:00

15:00 - 22:00

middag

WEEK 4


09:00 - 13:00

Ochtend


Mission´s internal work

Zondag 7


Missie's Intern werk

09:00 - 13:00

Zaterdag 6


EC Project Unit

13:00 - 15:00

15:00 - 22:00


09:00 - 13:00

Ochtend

middag

Follow-up vergaderingen

Vrijdag 5


Universiteit van Suriname

13:00 - 15:00

15:00 - 22:00

Vakbondsassociatie

11:00 - 13:00

middag


09:00 - 11:00

Ochtend


17:00 - 22:00

Feedback vergaderingen

Fernandesgebouw

Nationaal Planburo

13:00 - 15:00

16.00 - 17.00


Feedback vergaderingen

Plaats

09:00 - 13:00

Tijd

Donderdag 4

middag

Woensdag 3

Dag

Voorbereiding van de presentatie / workshop


Analyse van de documentatie en consept van studie maken

Voorbereiding van het Programma Memorandum


Analyse van de documentatie en conseptueren van studie

Voorbereiding van het Programma Memorandum


Meeting wih the ITA and NTA members

Analyse van de documentatie en consept van studie maken


Institute for Graduated Students & Research - Mr. Subhas Mungra

RAVAKSUR- Mr. Berenstein

Vergadering met STF staflid - Martin Panday


Fernandes Commercial Company - Mr. Michel Brahim

NPO staflid - Mrs. L. Menke-Tangali

Analyse van de documentatie en conseptueren van studie

Mensen

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Afgezegd

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14:00 - 22:00

Middag


09:00 - 13:00

15:00 - 22:00

Ochtend

Middag


15:00 - 22:00

Ochtend

Middag



09:00 - 13:00

Zondag 14



Zaterdag 13



13:00 - 14:00

14:00 - 22:00


09:00 - 13:00

Ochtend

Middag

Feedback meetings

Vrijdag 12



14:00 - 16:00

16:00 - 22:00


Ochtend

Middag

Follow-up of the Mission

09:00 - 14:00

Donderdag 11



13:00 - 15:00

15:00 - 22:00


09:00 - 13:00

Ochtend

Middag

Feedback meetings

Woensdag 10


Feedback meetings

09:00 - 13:00



Plaats

Ochtend

14:00 - 22:00

11:00 - 13:00

Tijd

dinsdag 9

Middag

Dag

werken aan concept studie en voorber.afsl.vergaderingen






Concept van studie maken

Voorbereiding van de conferentie presentatie


Concept van studie maken

Follow-up workshop met de EC en de SBF authoriteiten








Vergadering met dhr. Waaldijk

Mensen

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Afgezegd

Status (contact)

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09:00 - 14:00

14:00 - 22:00

Ochtend

Middag


09:00 - 14:00

14:00 - 22:00

Ochtend

Middag


14:00 - 22:00

Ochtend

Middag


09:00 - 14:00

14:00 - 22:00

Ochtend

Middag

Consultant´s huis in Europa

09:00 - 14:00

14:00 - 22:00

Ochtend

Middag

Consultant´s huis in Europa

Eind rapport

Zaterdag 20


Eind rapport

Vrijdag 19


Eind rapport

09:00 - 14:00

Donderdag 18


Eind rapport

Woensdag 17


Einde van de veld missie


Dinsdag 16

16:00 - 20:00

Hotel Conference Room

14:00 - 16:00

Middag


08:00 - 14:00

Ochtend

Plaats

Afsluitings vergadering

Tijd

Maandag 15

WEEK 5

Dag

Schrijven eindrapport










Werken aan concept studie en terugreis naar Europa

Afsluitings conferencie met publieke en private sector


Mensen

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Status (contact)


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Annex 6.

Public Private Partnership – Support to the Domestic Private Sector – Suriname Business Forum (SBF)”

“het opbouwen van een social-economisch profiel van de Domestic Private Sector (DPS), inclusief demografisch en regional profiel” AANVANGSRAPPORT (BIJLAGE 6) Geschreven door: Jesús-Carlos Corral-Fuentes Datum: 18 augustus, 2008

148


Content

1. Korte introductie van het project

149

2.

Doelstellingen van het project

149

3.

Doel, activiteiten en verwachte resultaten van de missie

149

4.

Methodologische aanpak

150

5.

Werkagenda

151

6.

Steun aan het missie werk

153

7.

Belangrijkste voorgestelde gebieden

153

8.

Voorstel van de vergaderingen

155

9.

Documenten, wetgeving,statistische gegevens en andere informatie die

157

nodig is voor deze missie 10.

Vragen voor de interviews

159

Dit document kwam tot stand met financiele assistentie van de Europese Unie. Haar inhoud reflecteert de opinie van de auteur en niet noodzakelijkerwijs de officiele opinie van de Europese Unie. Daaruit voortvloeiend verwijst dit document alleen naar de auteur “Macro-Economic Review of Suriname 1999-2008”

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Aanvangsrapport 1. Korte introductie van het project. Deze huidige korte termijn, internationale technische bijstand behoort tot de internationale technische bijstand van het EG-project in Suriname, getiteld: “Public Private Partnership - Ondersteuning aan de binnenlandse particuliere sector - Suriname Business Forum (SBF)”. Dit project is een gevolg van de Nationale Strategie voor de ontwikkeling van een duurzame Binnenlandse Particuliere Sector (DPS), geformuleerd in 1999 door het Suriname Business Forum (SBF), waarin het zich richt op de belangrijkste structurele tekortkomingen betreffende Suriname’s DPS, evenals op de prioriteits acties nodig om deze zwakke punten aan te pakken. In dit proces werd het SBF in 2001 bijgestaan door het EG gefinancierde programma Diagnos. Dit document heeft beperkingen en belemmeringen opgesteld die in zeven belangrijkste gebieden zijn geidentificeerd(macro-economisch beleid, wetgeving en juridische setor, de onderneming financiering, ontwikkeling van diensten voor bedrijven, de administratie en instellingen, fiscale en andere prikkels en infrastructuur en nutsvoorzieningen) en de vastgestelde methodologie voor de weg voorwaarts.

2.

Doelstellingen van het project

De algemene doelstelling van dit project is het ontwikkelen van een concurrerende Binnenlandse Particuliere Sector in Suriname, dat kan bijdragen aan een duurzame ontwikkeling, en om de geleidelijke integratie van Suriname in de regionale economie en de wereldeconomie te faciliteren.

3. Doel, activiteiten en verwachte resultaten van de missie Het doel van deze internationale missie voor technische bijstand aan dit project is volgens de taakomschrijving (ToR), het bijwerken van het Diagnos Rapport geproduceerd in 2001, waarin opgenomen de meest recente economische en sociale kwesties van dit moment in Suriname. Deze studie zal impliceren, de herziening van de strategie van het land en sector profielen en om zich voor te bereiden op macro- en sector statistische informatie die gebruikt zal worden door de toekomstige werkzaamheden en studies van de SBC. De activiteiten zoals vermeld in de taakomschrijving zullen impliceren, naast andere aspecten, het evalueren en actualiseren van het Diagnos Rapport 2001, het aanpassen van het landen-profiel, herziening van de Suriname Landen Strategie en op te nemen strategische gebieden die in het rapport 150


zijn geidentificeerd en om relevante sociaal-economische statistische bijlagen voor te bereiden met de meest recente beschikbare informatie in en buiten Suriname. In overeenstemming met de taakomschrijving, zullen de verwachte resultaten van deze missie moeten inhouden de identificatie van onderwerpen en platformen voor de discussies over regionale en mondiale handel, investerings-prioriteiten te omschrijven, het opbouwen van een sociaal-economisch profiel van de DPS, en om analyses van de resultaten van de sociaal-economische studies te herzien. Maar ook om beleids aanbevelingen te doen aan SBF, de invoering van de SMART-actieplan voor de Overheid, ter uitvoering van de aanbevelingen van de sociaal-economische studie, en om na te gaan in welke producten en / of sub-sectoren Suriname een vergelijkbaar voordeel heeft.

4.

Methodologische aanpak

De methodologische aanpak van het onderzoek is het opbouwen van een sociaal-economisch profiel van de binnenlandse particuliere sector, met inbegrip van een demografisch en regionaal profiel. Met dit besef dat in studie rekening zal worden gehouden met de twee belangrijkste doelstellingen van het project: a) het bevorderen van de dialoog tussen de publieke en private sector, en b) het versterken van de deelname van de particuliere sector in de economie. De studie zal een echte macro-economische visie geven van de zwakke punten, sterke punten en prioriteiten van de sociaal-economische situatie, gebaseerd op de afgenomen interviews gehouden en de bestaande statistische gegevens. Als we kijken naar de verwachte globale structuur van het project,dan moeten de resultaten van deze missie een belangrijke input zijn voor de formatie van het macro-niveau, maar tegelijkertijd zullen de resultaten daarvan een belangrijke invloed hebben op de sectorale, markt-en bedrijfs niveaus van het project. Het werk van de missie zal worden opgesplitst in drie blokken: de interviews, de analyse van de documentatie en de systematisering van de informatie. - Interviews Rond de eerste 10 dagen, zal de missie worden gewijd aan meerdere vergaderingen met overheids instituten, de particuliere ondernemers verenigingen, de universiteits- specialisten en de internationale organisaties. Het is de bedoeling om een gemiddelde van drie vergaderingen per dag te hebben, met een interval van twee uur tussen elke meeting vanaf 08.00 uur tot 15.00 uur. In al deze bijeenkomsten zal de deskundige de geinterviewden vragen naar de nodige en juiste actuele informatie ter voorbereiding van de studie. “Macro-Economic Review of Suriname 1999-2008”

151

Tijdens deze bijeenkomsten zal aandacht worden besteed aan de analyse van het Diagnos 2001 rapport, de evolutie van haar aanbevelingen observerend en de analyse van de huidige veranderingen opgetreden in de editie van dat document. Maar, tegelijkertijd, zullen de zwakke punten, sterke punten en prioriteiten van de economie worden geanalyseerd. De analyse van de Diagnos voedingsbodem (matrix) en de opmerkingen en commentaren verkregen uit deze interviews zullen de basis zijn voor de actualisering van het Diagnos Rapport, overwegende welke van deze aanbevelingen in dit document werden toegepast in de praktijk en welke van deze nog niet zijn toegepast. - Informatie Rond de tweede 10 dagen, zal de missie meer worden gewijd aan de analyse van de ontvangen informatie, het verzamelen van aanvullende informatie, het opbouwen van tabellen en grafieken, en het schrijven van de eerste ontwerpen van het document. De missie zal de instellingen naar twee soorten informatie vragen: a) statistische gegevens, en b) bestaande monografische documenten. - Systematisering Het laatste (derde) deel van 10 dagen van de missie in Suriname zal worden gewijd aan de systematisering van het geheel aan informatie verkregen tijdens de missie, alsmede aan een tweede ronde van de feedback interviews met een aantal heel specifieke instellingen, om eerder verkregen opmerkingen, waarnemingen en overeenkomsten in lijn te brengen met de missie. Meer details van deze methodologische aanpak worden gegeven in de tabel van het wekelijkse werkplan van de missie.

5.

Werkagenda

De missie zal worden gehouden door middel van een participatieve methodologie, samenwerkend met het Suriname Business Forum, met de internationale permanente deskundige van het project, en met de Delegatie van de Europese Commissie in Suriname. Het werk van deze missie zal worden ontwikkeld gedurende 5 weken, in overeenstemming met het volgende schema: Week 1: voorwerk, briefings en openbare vergaderingen Week 2: publieke en private sector en vergaderingen met de Universiteit Week 3: midden termijn, vergaderingen met de particuliere sector en internationale organisatie.

Eerdere commentaren Week 4: tweede maal feedback vergadering Week 5: nabesprekingen en terug naar huis Eindverslag schrijven.

152


WORKING WEEKLY PLAN EC Technical Assistance Mission for the Ɯ Public Private Partnership Š Support to the Domestic Private Sector Š Suriname Business Forum (SBF)Ó Days

Dates

Weekly Plan

Week 1: prework, briefings and public sector meetings* August Pre work to the field mission 1 W 13 Review of the Diagnos Report and getting other information 2 T 14 Review of the Diagnos Report and getting other information 3 F 15 Review of the Diagnos Report and getting other information 4 S 16 Expert travel from Europe to Suriname 5 D 17 Drafting the inception report and working methodology Briefings with the ECD, Project Unit and the beneficiary 6 M 18 Prepare-discuss with SBF / SBC A methodology-areas to review 7 T 19 Prepare-discuss with SBF / SBC A methodology-areas to review Meetings with the public sector 8 W 20 Meetings with Ministries, Legal, Financial and Statistic Institutions 9 T 21 Meetings with Ministries, Legal, Financial and Statistic Institutions 10 F 22 Meetings with Ministries, Legal, Financial and Statistic Institutions Mission´s internal work 11 S 23 Analyse of documentation and meetings held 12 D 24 Analyse of documentation and meetings held Week 2: public and private sector and University meetings* 13 M 25 Meetings with Ministries, Legal, Financial and Statistic Institutions Meetings with the Universities 14 T 26 Meetings with professors and university´s teachers. Meetings with the private sector 15 W 27 Meetings with KKF, ASFA, Industry Association and STPO 16 T 28 Meetings with IDOS, VSB and STS 17 F 29 Meetings with FTBPS, CDI and CARTF Mission´s internal work 18 S 30 Analyse of documentation and meetings held 19 D 31 Analyse of documentation and meetings held Week 3: mid term, private sector and international organizations meetings* September 20 M 1 Meetings with international and local banks 21 T 2 Meetings with Caribbean Export, SME and other institutions Meetings with the International Organizations 22 W 3 Meeetings with WB and IMF 23 T 4 Meetings with IADB, ECLA and other international organizations Mid-Term meetings with the ECD and the beneficiary 24 F 5 Mid-Term meetings with ECD, Project Unit and beneficiary Mission´s internal work 25 S 6 Prelimary report writing 26 D 7 Prelimary report writing Week 4: second turn feedback meetings* Second turn feedback meetings 27 M 8 Feedback meetings with the public sector 28 T 9 Feedback meetings with the public sector 29 W 10 Feedback meetings with the private sector 30 T 11 Feedback meetings with the private sector Mission´s internal work 31 F 12 Preliminary Report writing. Prepare debriefing meeting 32 S 13 Preliminary Report writing. Prepare debriefing meeting 33 D 14 Preliminary Report writing. Prepare debriefing meeting Week 5: debriefings and home Final Report writing Debriefings with the ECD and the beneficiary 34 M 15 Debriefings with the ECD and the Project Unit 35 T 16 Debriefings with the beneficiary and Return flight to Europe Mission´s internal work 36 W 17 Final Report writing 37 T 18 Final Report writing 38 F 19 Final Report writing 39 S 20 Final Report writing (Submision the 23rth of September) * All meetings will be held from 8.00h to 16h. A maximum of thre meetings each day. (four meetings only in exceptional cases). Two hours period from one to another. Evenings only for internal work of the mission: reading documents and writing.


153

6.

Steun aan het missie werk

Gezien de zeer korte periode van het veldwerk van de missie in Suriname, is het handig dat de internationale deskundige sterke ondersteuning ontvangt van het Suriname Business Forum, in de vorm van bijstand door een secretaris die hem kan helpen, speciaal in het organiseren van het tijdschema van de vergaderingen, en in de vertaling of verklaring van de belangrijkste statistische gegevens en andere relevante informatie geschreven in de Nederlandse taal.

7.

Belangrijkste voorgestelde gebieden

Na uit de analyse van het Diagnos rapport en andere documenten gelezen te hebben over de economische situatie van Suriname, is de missie van mening dat meer aandacht kan worden gegeven aan de volgende aspecten: • Publieke-private sectoren: »» Versterking van dialoog tussen publieke en private sector, partnerschap en wederzijdse communicatie voor de bevordering van het ondernemingsklimaat en om de houding van het openbaar bestuur te veranderen naar de particuliere sector en het ondernemerschap toe. • Publieke sector: »» Herdefinieer de rol van de Staat en verminder het gewicht als controleur van de economie, door slechts een faciliterende rol te spelen »» Verbeter de organisatie, het beheer en de efficiëntie van de openbare/publieke sector, schep voorwaarden voor een goed en adequaat overheidsbeleid (monetair, fiscaal ... enz.) »» Verminder het begrotingstekort en verbeter de inning van de belastingen »» Verbeter de procedures voor de vergroting van de import en export, de douane-procedures en training van de douane-ambtenaren »» Verbeter de statistische gegevens, procedures en diensten, alsmede het Algemeen Bureau voor de Statistiek en de Centrale Bank statistieken »» Verbeter de transparantie, het goed bestuur en de efficiëntie van de publieke sector, waarbij willekeurige beslissingsprocessen worden vermeden »» Werken een beleid uit voor de ontwikkeling van het belastingstelsel »» Breng de tarieven in lijn met de gemeenschappelijke externe CARICOM tarieven »» Verbeter de ruimtelijke ordening en de infrastructuur. • Private-sector »» Bevorder de Bedrijfs Ontwikkelings Diensten »» Bevorder het platform van het Bedrijfs en Handels Informatie Centrum »» Verbeter de Kamer van Koophandel en Industrie, evenals andere associaties, die de belangen van de particuliere sector kunnen behartigen. 154


»» Breidt de capaciteit en de aanwezigheid van de particuliere sector uit in de controle en het richting geven aan de economie »» Bevorder de aanwezigheid van buitenlandse investeringen, beperkingen op de zakelijke omgeving verwijderend. • Handel »» Bevorder de internationale handel, door middel van liberalisering van de wisselkoers op weg naar een vrije converteerbaarheid. • Monetaire en financiële vraagstukken: »» Verbeter de capaciteit en de ontwikkeling van het financiële stelsel »» Bevorder de hervorming van de financiële en bancaire wetgeving »» Verbeter de Centrale Bank autonomie »» Bevorder het creeeren van nieuwe financiële instrumenten »» Creeer een echte vrije kapitaalmarkt. »» Maak het kapitaalverkeer flexibeler. • Economie: »» Verbeter de vrije competentie en vermijdt monopolistische economische situaties »» Bevorder de ontwikkeling van de strategische en prioriteits-sectoren waarin het land een vergelijkbaar voordeel heeft »» Reguleer de economie en verbeter de macro-economische indicatoren »» Verander de mentaliteit van de samenleving naar een cultuur, die bevorderlijk is voor productie, ontwikkeling en vooruitgang. • Wetgeving: »» Actualiseer en pas de wetgeving aan naar de huidige regels van de mondiale economie voor de verbetering van de internationale handel »» Verbeter de capaciteit en de efficiëntie van de rechterlijke macht »» Ga door met de bedrijfs- en handelsrecht hervormingen: de financiële en bancaire wetgeving, investerings-code, bemiddelings-code ...etc.


155

8.

Voorstel van de vergaderingen

De missie bepaalt de volgende vergaderingen a) Ontmoetingen met de SBF b) Ontmoetingen met de ECD. Op z’n minst zullen er drie bijeenkomsten worden gehouden met de SBF en de ECD tijdens de missie: de voorlichtings- vergadering, de tussentijdse vergadering en de afsluitende vergadering. Daarnaast zullen de SBF en de ECD via e-mail, een korte wekelijkse update ontvangen van de deskundige over de lopende zaken van de missie. c) Ontmoetingen met de meest representatieve instellingen in elk van de zeven Diagnos sectoren. Het doel van deze bijeenkomsten is het analyseren van de Diagnos strategie en om de evolutie van de sector vanaf 2001 gade te slaan, om een onderscheid te maken van wat nog steeds geldig is en wat nu al verouderd is. - Gesprekken met de Publieke Sector De missie vindt het belangrijk om bijeenkomsten met de volgende instellingen in de publieke sector te hebben: • Het Business Forum • Centrum voor de Ontwikkeling van Industrie • Suriname Trade Promotion Organisatie • Het Investeringsfonds - 3, • Fiscale afdeling van de Overheid - 6, • Het Ministerie van O.W. & V. - 7, • Telesur (telefoon, internet etc ...) - 7, • Energie en Water Bedrijven - 7, • Algemeen Bureau voor de Statistiek - 1, • Ministerie van Financiën,Directoraat Planning - 1, 5, 6, • Ministerie van Handel en Industrie - 1, 5, 6, • Centrale Bank - 1, 3, • Ministerie van Justitie - 2, • Ministerie van Handel en Industrie en het Directoraat Industrie -2, • Algemeen Directoraat van de Intellectuele Eigendommen 2 • Nationale Assemblee - 2, • Hoge Raad - 2, • Constitutioneel Hof - 2, • Ombudsman (indien het al bestaat) - 2 • De nummers komen overeen met de sectorcijfers in het Diagnos Rapport. 156


- Vergaderingen met de private-sector * De missie acht het ook belangrijk dat er bijeenkomsten zijn met de volgende instellingen uit de particuliere sector: • De Kamer van Koophandel en Fabrieken (KKF) - 4, 5, • De Industry Association - 4, 5, • De Surinaamse Fabrikanten Associatie-ASFA - 4, 5 • De Suriname Trade Promotion Organisation (STPO) - 4, 5 • Kleine en Middelgrote Ondernemingen (vergadering met de associatie, als deze bestaat) - 4, 5 • Institute for Development Oriented Studies-IDOS - 4, 5 • Vereniging Surinaams Bedrijfsleven (VSB) (een particuliere vereniging van ondernemingen) - 4, 5 • Stichting Toerisme in Suriname-STS - 4, 5, • Caribbean Export - 4, 5, • Fonds Technische Bijstand Particuliere Sector-FTBPS - 4, 5, • Centrum voor de ontwikkeling van industrie-CDI - 4, 5, • Caribbean Agriculture Training and Research Fund- CARTF - 4, 5, • Andere particuliere instellingen die betrokken zijn bij activiteiten en promotie - 4, 5, • Twee buitenlandse en twee lokale banken - 3, • Stichting Arbitrage Instituut * De nummers komen overeen met de cijfers in het sector Diagnos Rapport. - Vergaderingen met de universiteit • Universiteits hoogleraren en docenten op het gebied van sociaal-economische vraagstukken. - Vergaderingen met de internationale organisaties • Wereldbank • Internationaal Monetair Fonds, • Inter-American Development Bank • Economische Commissie voor Latijns-Amerika en het Caribisch gebied (ECLAC) • Delegatie van de Europese Commissie in Suriname • Het United Nations Development Programme


157

9.

Documenten, wetgeving, statistische gegevens en andere informatie die nodig is voor deze missie

Zoals werd vermeld, is het belangrijk dat de begunstigde en andere publieke en particuliere instellingen zo spoedig mogelijk aan de deskundige doet toekomen, de volgende monografische documenten, statistische gegevens evenals andere documenten die hij zou kunnen opvragen: - Monografisch documenten De missie is van mening dat het noodzakelijk is om toegang te hebben tot de volgende monografische documenten: • EU-Suriname Country Strategy Paper 2007-2013. • EU-Suriname Nationaal Indicatief Programma • Meerjaren Ontwikkelings Plan (MOP) en Meerjaren Oriëntatie Plan (beiden, indien het verschillende documenten zijn) • Papers geschreven door elke groep voor het opstellen van het Diagnos Rapport • BIZA studie • Toespraak van de President aan de Natie over het Regeringsbeleid van 2001 en de volgende jaren, indien bestaand. • Documenten ter ondersteuning van de voorbereiding van de Economische Partnerschappen Overeenkomst (EPA) • Sociaal-economische statistieken (vooral uit het Algemeen Bureau voor de Statistiek en de Centrale Bank) - Bepalende Wetgeving De missie vindt het ook noodzakelijk om toegang te hebben tot de tekst van de volgende wetten (als ze zijn vastgesteld): • Caricom Wet inzake Beëindiging van Arbeidsverhoudingen • Caricom Protocol inzake Fiscale Stimulansen • Nieuw Land Bezit wet • Anti-Corruptie wet • Nieuwe Vennootschaps Akte • Bankwet van 1956 • Prudentiële wet op de Bank en Kredietinstellingen • Wet op de buitenlandse wisselkoersen • Investerings-Code • Publieke Bemiddelings-Code • Anti-dumpingcode 158


- Statistische gegevens Om een macro-economische visie van de sociaal-economische situatie van Suriname te verkrijgen, is de missie ook van mening dat het noodzakelijk is om de statistische gegevens van de volgende sociaaleconomische indicatoren te ontvangen: • Handels-statistieken voor goederen en diensten • Belangrijkste economische indicatoren:TVA, GNP, GDP... enz. • GDP per hoofd van de bevolking en andere macro-economische indicatoren: productie, consumptie, export en import, de besparingen en de interne vraag. • Betalingsbalans • Invoer en uitvoer per sector voor twee SH cijfers • Handel per regio: geografische bestemming van de uitvoer en de geografische oorsprong van de invoer • De nationale begroting en de Financiën van de Publieke Sector: kredieten en deposito’s • Jaarlijkse kosten voor consumptie • Inflatiepercentage • Wisselkoers • Rentevoet van de particuliere banken • Openbare investeringen per sector • Bevolkingscijfers naar geslacht en geografische gebieden • Werkgelegenheids gegevens per sector • Actieve bevolking en werkloze bevolking • Andere indicatoren: jaarlijks vlucht verkeer, jaarlijkse cijfers over weg en maritiem verkeer, vis, energie, water, telecommunicatie, toerisme. • Alle andere statistische gegevens die van belang geacht worden door de Surinaamse instituten. Andere documenten Naast de reeds genoemde documenten,is de missie ook ingenomen met andere documenten die door de instellingen van de publieke en private sector nodig achten, speciaal die welke verband houden met de • Binnenlandse particuliere sector • Suriname Business Forum • Eerste programma ramingen • En strategieën voor de toekomstige Tweede programma ramingen


159

10.

Vragen voor de interviews

Voor een diepgaande analyse van het Diagnos Rapport en voor een betere kennis van de zwakke punten, sterke punten en prioriteiten van de Surinaamse economie,zijn hierna volgend voorbeelden van verschillende groepen van vragen die worden ingediend voor behandeling door de instellingen die geïnterviewd worden door de missie. Elke groep van deze vragen zal worden voorgelegd aan de instellingen om uit te kiezen, in elk geval, overeenkomstig de rol en taken van de instelling: - Vragen aan de publieke en private sector a) Algemene vragen • Voornaamste gebieden om bij te werken in de Diagnos 2001 • Betere methode voor het bijwerken van de Diagnos 2001 • Gebieden van toevalligheden en meningsverschillen tussen de Suriname Landen Strategie en het Diagnos Rapport • Voornaamste strategische gebieden voor de versterking van de binnenlandse particuliere sector in Suriname • Voornaamste meest recente en relevante sociaal-economische statistische informatie • Belangrijkste kwesties en betere platformen voor discussie over regionale en mondiale handel • Investerings-prioriteiten voor de FDI en binnenlandse investeringen • Belangrijkste aspecten om een sociaal-economisch profiel van de binnenlandse particuliere sector te overwegen (met inbegrip van een demografisch en regionaal profiel) • Belangrijkste aspecten om te overwegen voor de uitvoering van de sociaal-economische studie (gebaseerd op de uitwerking van SMART actieplan) • Belangrijkste producten en sub-sectoren waarin Suriname een comparatief/vergelijkbaar voordeel heeft b) Vragen gerelateerd aan het Business Forum • Belangrijkste zwakke punten, sterke punten en prioriteiten in het Business Forum • Wat is gebeurd en moet nog worden gedaan aan de volgende aspecten? »» De publieke-private dialoog in het Strategische Meerjaren Orienterings Plan (MOP) »» De ondersteunende rol van de regering in de economie »» De herpositionering van de particuliere sector in de economie, in overeenstemming met het MOP »» Om een mentaliteitsverandering in de hele gemeenschap te bewerkstelligen. • Zijn er andere aspecten die moeten worden overwogen in de publieke-private dialoog?

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- Vragen voornamelijk gericht op de Publieke Sector b) Vragen over de macro-economische omgeving • Macro-economisch milieu »» Welke van de genoemde aspecten in het Diagnos Rapport op het macro-economisch mileu waren al bereikt. Vermeld de belangrijkste verbeteringen van de Diagnos Rapport »» Welke van deze macro-economische aspecten moeten nog worden uitgevoerd? »» Wat zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor het macro- economisch milieu in de toekomst? »» Is er al een centraal plannings proces bij de Overheid? »» Zijn nu de macro-economische kwesties meer gestabiliseerd? In welke zin? »» Belangrijkste aspecten van de BIZA studie »» Welke van de korte-en snelle acties vermeld in de Diagnos zijn uitgevoerd? • Fiscaal en monetair beleid »» Hoe is de huidige situatie van het fiscaal en monetair beleid? »» Hoe is de situatie van het begrotingstekort en de nationale begroting? »» Is de fiscale discipline nu veel beter? »» Wat zijn nu de belangrijkste instrumenten van het monetair beleid? »» Hoe is de huidige situatie en de rol van de Centrale Bank? • Wisselkoers »» Hoe is de huidige situatie van het wisselkoersbeleid? »» Welke maatregelen zijn genomen om een vaste wisselkoers concurrerend en duurzaam te maken? • Personeel in de publieke sector »» Is er nog steeds een te overladen personeelsbestand in de publieke sector en in de overheidsondernemingen? Is dit personeel nog steeds laag gekwalificeerd? »» Hoe is nu het gewicht van de salarissen van de ambtenaren op de kosten van de overheid? • Openbare statistieken »» Tekortkomingen, sterktes en prioriteiten van het Algemeen Bureau voor de Statistiek? • Rol van de Staat »» Zijn nog steeds de publieke sector, staatsbanken en staatsbedrijven inefficiënt? »» Maatregelen genomen ter verbetering van hun efficiëntie. »» Welke maatregelen zijn genomen om de rol van de Staat en de verbetering van de organisatie en het beheer van de publieke sector te herdefiniëren?


161

b) Vragen over Wetgeving,Juridisch Milieu en Bedrijfswetgeving • Juridisch Milieu »» Welke van de korte-en snelle acties vermeld in het Diagnos Rapport met betrekking tot Bedrijfswetgeving zijn genomen? Vermeld de belangrijkste verbeteringen. »» Welke van ze moeten nog worden gedaan? »» Wat zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor de toekomst? »» Welke zijn de belangrijkste problemen van de huidige rechtspraak? »» Zijn corruptie zaken in de rechtspraak sinds 2001 sterk verminderd? »» Hoe zijn de huidige normen van onpartijdigheid, transparantie, verantwoordelijkheid en onafhankelijkheid van de rechtspraak? »» Belangrijkste activiteiten van de Stichting Arbitrage Instituut. • Hervorming Juridische Bedrijfswetten »» Hoe is het huidige wetgeving hervormingsproces? »» Hoe is de huidige situatie van de investerings code?, de inkoop-code? de anti-dumping-code?, het recht inzake intellectuele eigendom, de anticorruptie wetgeving, de wet op bezit van land, de CARICOM Wet op Beëindiging van de Arbeidsovereenkomst?, Akte op Nieuwe Bedrijven, het Caricom Protocol inzake fiscale stimulansen. »» De maatregelen genomen om de internationale verplichtingen uit te voeren. »» Maatregelen om een zakelijke transactie vast te stellen. Zijn ze verbeterd? »» Maatregelen ter voorkoming van de inmenging van de regering in de rechterlijke macht. »» Is het justitiëel beleid nu efficiënter? »» Verbeteringen in het proces van de oprichting van de Ombudsman en het Constitutioneel Hof? • Bepalende wetgeving »» Lijst van de belangrijkste bestaande commerciële en zakelijke besluiten. »» Lijst van de verordende wetten van het Diagnos Rapport. Verbeteringen verkregen met deze Bedrijfs wetten. b) Vragen over Bedrijfs Financiering • Bedrijfs financiering »» Welke van de korte-en snelle acties vermeld in het Diagnos rapport over de financiering van ondernemingen zijn genomen? Vermeld de belangrijkste verbeteringen. »» Welke van ze moeten nog worden uitgevoerd? »» Wat zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor de toekomst? »» De belangrijkste problemen voor ondernemingen om toegang te hebben tot financiering bij banken.

162


• Financiële sector »» Welke zijn de belangrijkste problemen voor de financiering van ondernemingen? »» Welke zijn de belangrijkste knelpunten en inefficiënties van de financiële sector? »» Verbeteringen van 2001 in de liberalisering van de kapitaalstromen en de stabilisatie van het wisselkoers-beleid. Wat is nog meer nodig? »» Hoe de financiele markten efficienter en prestatiegerichter te maken?Welke nieuwe financiële instrumenten en diensten moeten worden bevorderd? »» Welke zijn de belangrijkste fiscale beperkingen? »» Problemen en verbeteringen van de beurs. »» Belangrijkste bestaande financiële wetten. Welke wetten zijn er nog meer nodig in de financiële / bancaire sector? • Banken »» Rol van de Centrale Bank. »» Belangrijkste financiëel beleid van de staats- en particuliere banken. »» Maatregelen van de regering voor het stimuleren van de concurrentie door toetreding van nieuwe banken en financiële instellingen. »» Verbeteringen vanaf 2001 op de kapitaalmarkt en in de Centrale Bank autonomie. • Investeringsfonds »» Hoe de banken en andere financiële instellingen te versterken? »» Verbeteringen verkregen bij de uitvoering van het Investeringsfonds. »» Hoe de toegang tot het Investeringsfonds voor de ondernemers te vereenvoudigen? b) Vragen over belastingssysteem en douane-en andere prikkels • Verbeteringen vanuit het Diagnos Rapport »» Welke van de korte-en snelle acties vermeld in het Diagnos Rapport inzake belasting systeem en douane zijn genomen? Vermeld de belangrijkste verbeteringen. »» Welke daarvan moeten nog worden uitgevoerd? »» Welke zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor de toekomst? • Fiscaal stelsel »» Welke zijn de belangrijkste problemen met betrekking tot het belasting systeem? »» Zijn nu de fiscale bepalingen duidelijker zoals vermeld in de Diagnos 2001? »» Hoe een duidelijk beleid met betrekking tot de fiscaliteit te verbeteren? »» Is een nieuw vereenvoudigd fiscaal systeem uitgevoerd? »» Zijn de huidige gevestigde belastingen nu meer aangepast aan de zakelijke realiteit dan in 2001? »» Is de belasting op arbeid nog steeds discriminerend? • Fiscaal personeel »» Heeft het personeel van de Belastingdienst opleidingen volgens een nieuwe fiscale situatie ontvangen? »» Zijn de verstoringen tussen overheids werknemers en andere werknemers geëlimineerd? “Macro-Economic Review of Suriname 1999-2008”

163

• Suriname en het Caribisch gebied »» Heeft Suriname haar tarieven afgestemd met de gemeenschappelijke Caricom externe tarieven? »» Is al voldaan aan de verplichtingen in het kader van het gemeenschappelijk douanetarief voor het Caribisch gebied? b) Vragen over de infrastructuur en de nutsvoorzieningen • Ontwikkeling van de situatie uit het Diagnos Rapport »» Welke van de korte-en snelle acties vermeld in de Diagnos m.b.t. infrastructuur en nutsvoorzieningen zijn ondernomen? Vermeld de belangrijkste verbeteringen »» Welke daarvan moeten nog worden uitgevoerd? »» Wat zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor de toekomst? • Ruimtelijke ordening en infrastructuur »» Belangrijkste problemen bij ruimtelijke ordening en infrastructuur »» Maatregelen die moeten worden genomen voor de verbetering van de ruimtelijke ordening en de infrastructurele diensten. • Handel »» Hoe beinvloed de situatie van de infrastructuur de handelsbetrekkingen? • Energie en water »» Hoe beinvloed de energie-en watervoorzienings-situatie de binnenlandse en internationale economische betrekkingen? • Haven en luchthaven »» Hoe de faciliteiten van de haven en de luchthaven te verbeteren? • Wetgeving »» Hervormingen die nodig zijn in de wetgeving op het gebied van communicatie en infrastructuur. • Toerisme »» Maatregelen ter verbetering van de toeristische infrastructuur en diensten. - Vragen voornamelijk gericht aan de particuliere sector b) Vragen over (Bedrijfs ontwikkelings diensten)Business Development Services • Ontwikkeling van het Diagnos verslag »» Welke van de korte-en snelle acties vermeld in het verslag over de Diagnos Business Development Services zijn ondernomen? Vermeld de belangrijkste verbeteringen »» Welke daarvan moeten nog worden uitgevoerd? »» Wat zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor de toekomst? 164


• Publiek-private sector dialoog »» De belangrijkste problemen voor de verbetering van de publieke-private sector dialoog en wijzigen van de negatieve publieke houding ten opzichte van de ondernemers. »» Wat te doen voor de institutionalisering van dit wederzijds dialoog? »» Hoe dit wederzijds dialoog beter te kanaliseren? Hoe maak je een platform voor formeel lange termijn dialoog? »» Welke internet links zijn gemaakt tussen de publieke en de private sector? »» Hoe de positie en de rol van de Business Development Services te verbeteren? • Deelname van de particuliere sector »» Hoe veel beter het beleid tussen de openbare en de private-sector te coördineren? Verbeteringen vanaf 2001. »» Hoe deelname van de particuliere sector in de Meerjaren Oriëntatie Plan te verbeteren? »» Hoe deelname van de particuliere sector in de dialoog met de publieke sector te versterken? • Instellingen voor het wederzijds dialoog »» Is het Trade Information Centre opgericht? »» Is de Nationale Raad van de Particuliere Sector opgericht? b) Vragen over de regering en instellingen • Ontwikkeling van het Diagnos Rapport »» Welke van de korte-en snelle acties vermeld in het verslag van Diagnos over Overheid en instellingen zijn ondernomen? Vermeld de belangrijkste verbeteringen vanaf 2001 in verband met: - De in-en uitvoer van verouderde procedures - De vergunningen en authorisaties voor bedrijven - Het nationaal en internationaal vervoer van personen - Het nationaal en internationaal kapitaalverkeer »» Welke daarvan moeten nog worden uitgevoerd? »» Wat zijn de behoeften, prioriteiten, onderwerpen of gebieden die in aanmerking komen voor de toekomst? • Administratieve problemen »» Belangrijkste administratieve problemen, welke daarvan moeten worden aangepakt voor de ondernemingen bij hun registratie en tijdens hun productie-activiteiten? »» Rol en beperkingen van de ASYCUDA software »» Stappen ondernomen vanaf 2001 voor de hervorming investerings code • Maatregelen genomen door de Overheid (vanuit het oogpunt van de particuliere sector): »» om investeerders aan te trekken »» ter vereenvoudiging van de douanedocumenten en-procedures en training van douanepersoneel »» In de configuratie van een meer transparant en nauwkeurige goederen registratie. »» In de afschaffing van de bureaucratie en de verbetering van transparantie en het terugdringen van transactiekosten, en de versnelling van de registratie- processen. “Macro-Economic Review of Suriname 1999-2008”

165

• Particuliere instellingen »» Verbeteringen gemaakt tussen de belangrijkste organisaties in de particuliere sector op het gebied van zakelijke bijstand en promotie. »» Is de Particuliere Sector Commissie, genoemd in de Diagnos, ingesteld? »» Welke soorten publicaties zijn gemaakt (zoals “zaken doen in Suriname” ... enz.)? • Statistische gegevens van de ondernemingen »» Bestaande Statistische cijfers over de werkgelegenheid en de werkloosheid per sector. »» Belangrijkste tekort van de statistische gegevens van de productieve sector

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Annex 7.

TERMS OF REFERENCE

POSITION: BUILD UP A SOCIO-ECONOMIC PROFILE OF THE DPS, INCLUDING DEMOGRAPHIC AND REGIONAL PROFILE (Activity 2.5)

Days: 39 FOR THE PROJECT ON BUILDING UP A SOCIO-ECONOMIC PROFILE OF THE DPS, INCLUDING DEMOGRAPHIC AND REGIONAL PROFILE FOR THE SURINAME BUSINESS FORUM, IN THE FRAMEWORK OF THE EC CONTRACT: PUBLIC PRIVATE PARTNERSHIP, SUPPORT TO THE DOMESTIC PRIVATE SECTOR

PROJECT: 09 ACPSUR 007.

Ref: 2008/JUL/… B.L. 2.4.2.2


167

I.

INTRODUCTION

An effective private sector is a condition sine qua non to trigger sustainable economic growth and development in the country. In order to materialize this development, the Suriname Business Forum (SBF), set up in 1999, formulated the National Strategy for the development of a sustainable Domestic Private Sector (DPS), which focuses on the main structural weaknesses affecting Suriname’s DPS, as well as on the priority actions needed to address these weaknesses. In this process the SBF was assisted by the EC funded programme Diagnos. In 2001 Diagnos conducted a validation of the constraints and obstacles identified by seven working groups, in several areas such as macro- economic policy, legal and justice sector, enterprise financing, business development services, administration and institutions, tax system and other incentives and finally infrastructure and utilities that hamper the performance of the private sector. In its report Diagnos made a compilation of these obstacles and constraints and presented a methodology for the way forward. Also based on this report the Public and the Private Sector, represented in the SBF integrated in 2003 the abovementioned priority actions into the present project. This project comprises an integrated set of activities to support the development and consolidation of the DPS. Its actions will concentrate on, but not restricted to the following indicative range of activities, viz:

Create SBF as an operational platform for continuous dialogue;

Create the Suriname Business Center (SBC) to co-ordinate and deliver business and trade promotion support services; »» Improvement of the operational environment for the DPS in Suriname; »» Public Sector key officials will have the skills mix to create a DPS enabling environment.

II.

BACKGROUND

To implement the project the SBF and the SBC needed to prepare operational actions plans or Programme Estimates (PE) that were approved and validated by the European Commission Delegation in Suriname and by the Suriname National Authorities. The first Programme Estimate (Start-up Programme Estimate) started on April 4 and lasted until July 3rd, 2008. The start-up programme made possible, to initiate concrete activities in favor of the DPS implemented by the Suriname Business Center. In the middle of June until July 4th the SBF prepared and presented the Programme Estimate PE-2 that entered into execution immediately. The PE 2 will last until the end of the operational period of the project schedule to be September 2009. One of the priorities to be implemented under this Programme Estimate PE-2 is to include SBF representatives with direct involvement in today’s and tomorrow’s DPS. Part of this activity requires building up the capacity of key stakeholders in order to increase and improve the involvement of these key actors in the Public-Private project. 168


III.

OBJECTIVES OF THE PROJECT

The overall objective of this project is to develop a competitive Domestic Private Sector in Suriname that can contribute to a sustainable development, and to facilitate the gradual integration of Suriname into the regional and world economy

IV.

PURPOSE OF THE PROJECT

This project aims at creating an environment that will be conducive to the development of the Domestic Private Sector in Suriname, providing competitive and high quality goods and services. It is envisaged that the right prevailing macro- economic conditions will generate economic growth, development and welfare in Suriname and in the region. More specifically, the purpose of this project is to update the Diagnos Report produced in 2001, incorporating the latest economic and social issues currently happening in Suriname. This study will imply, to review the country’s strategy and sectors profiles and to prepare macro and sector statistical information that will be use by the SBC future work and studies.

V.

ACTIVITIES TO CARRY OUT

It is expected that the consultant (s) will undertake the following activities: 1. Review the Diagnos Report 2001, and propose areas and a methodology for updating the report. 2. Update of the country profile and of the most important sectors’ profiles with available statistics and from interviews to relevant key government officials and members of the business community(including the university and research centers) 3. To review the Suriname Country Strategy and to incorporate the links and the areas of coincidence or disagreements with the Diagnos Report. 4. To incorporate strategic areas identify in the report and in the interviews for further development of the country, and particularly for the strengthening of the domestic private sector in Suriname. 5. To prepare relevant socio-economic statistical annex with the latest available information in Suriname and out of the country (WB, IMF, Economist, IADB, ECLA, etc.)

VI

EXPECTED RESULTS (DELIVERABLES)

The consultant (s) or company conducting this work is expected to prepare a final report in the English language in threefold. The Final Report should comprise a full update of the Diagnos 2001 Study, “Macro-Economic Review of Suriname 1999-2008”

169

incorporating additional chapters addressing, amongst others, the following issues: • Identify issues and platforms for discussions on regional and global trade (Act. 1.6.1) • Define investment priorities for FDI and domestic investment (2.3.1) • Build up a socio-economic profile of the DPS, including demographic and regional profile (Act. 2.5); • Review analysis of results of socio-economic studies (Activity 2.5.3) • Make policy recommendations to SBF based on outcome of the socio-economic study (Activity 2.5.4) • Introduce the SMART Action Plan for Gov to implement recommendations of socio-economic study (Act. 2.5.5) • Identify in which products/sub-sectors Suriname has a comparative advantage (Activity 2.7.1)

VII.

PERIOD OF EXECUTION OF THE PROJECT

The consultant(s) is expected to execute this project within the period of August 15 to September 30, 2008. The final document must be submitted to the Suriname Business Center not later than October 10, 2008.

VIII.

INDICATIVE TIME TABLE Activities

DAYS Suriname

DAYS Europe

Review of the Daignos Report Prepare and discuss with SBF/SBC a methodology and propose critical areas to review in the Diagnos R

2

Review of documents and interviews in Suriname

25

Draft report (including de-briefing)

4

Final Report TOTAL

TOTAL

3

5 31

8

39 DAYS

VIII QUALIFICATIONS TO UNDERTAKE THIS TOR The requirements to carry out the specified tasks are the following: • Economist or related training with at least 15 years of experience in analyzing socio-economic issues. • The consultants should have at least five years of proven International experience. • Familiarity with Suriname and/or with the Suriname region (CARICOM, SICA, etc.) 170


• Proven experience in undertaken projects or works related to the private sector, and of the government environment • Capacity to work in coordination and in complementarity with local and international teams. •

Experience working with EC projects implemented in the CARICOM or in the Latin-American regions.


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Annex 8. Suriname, het land

A. HET LAND SURINAME Suriname is het kleinste land van Zuid-Amerika met een geografische gebied van 163.820 km2. Ten noorden van het land ligt de Atlantische Oceaan, ten zuiden Brazilië, ten oosten de Europese Unie (Frans Guyana) en ten westen,Guyana. Suriname verwierf haar onafhankelijkheid van Nederland op de 25e november 1975. De hoofdstad is Paramaribo. Suriname is een democratisch land met een presidentieel systeem en een eenkamerstelsel Parlement van 51 zetels, die in de Grondwet van 1987 zijn vastgelegd. Vanaf 2000 is de regering in handen van het Nieuw Front Plus (NF Plus) onder leiding van president Ronald Venetiaan die aan het hoofd staat en het kabinet van ministers benoemt. In de laatste verkiezingen van mei 2005 heeft de NF-Plus en haar bondgenoten de macht behouden. Op dit moment heeft het Nieuw Front Plus 23 zetels en is in coalitie met de A-Combinatie (5 zetels) en het Democratisch Alternatief’91 (1 zetel). De oppositie neemt 22 van de 51 parlementaire zetels in, waarvan 15 worden ingenomen door de Nationale Democratische Partij (NDP). De volgende verkiezingen zullen worden gehouden in mei 2010. De officiële taal is Nederlands. Andere talen die gesproken worden zijn: Surinaams, Javaans, Hindi en Engels. De bevolking van Suriname is een mosaique van diverse culturen die overeenkomen met de verschillende landen van oorsprong van de bevolking: de Europeanen, Afrikanen een Aziaten. De Surinaamse cultuur is in de culturele wortels van Nederland bevestigd, hoewel de burgers ook de culturen, talen en tradities van hun voorouders hebben behouden. Het volgende is de lijst van tabellen van sociaal-economische statistische gegevens van het ABS, geanalyseerd in de studie.

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Macro-Economic review of Suriname

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