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Aruba's National Debt Is $1.1 billion Posted by Eddy: Thu Jun 01, 2006
ORANJESTAD-President of the Dutch Bank in The Netherlands, Nout Wellink says that government finances have entered the critical phase. In his speech during a meeting organised by the Aruba Chamber of Commerce, he called on the government to do its utmost best to win back the confidence of the public and associations on the island in regard to their policies.
Wellink advises the government to cut back on spending by lowering salaries of government employees and pension. If that does not happen there will be gigantic problems in the mid and long term says Wellink.
Wellink also showed understanding for the present situation on the island. Aruba is by far not the only country in the World facing difficulties in its finances. Governments of small countries are especially under constant pressure from those that have elected them. They want politicians to solve their problems, but they do not want to pay for the solutions says Wellink.
The national debt of Aruba has grown from
28 percent of the Gross Domestic Product (GDP) in
1999 to
46 percent of the GDP in
2005, approaching percentage levels of that of the U.S. and The Netherlands.
The national debt of Aruba equals an amount of little over $1 billion.
Wellink says that the growing number of people mainly the baby-boomers reaching retirement age, in combination with low growth rates in employee productivity and a lack of measures will lead to an explosive growth in national debt in the next 20 to 30 years.
http://www.aruba-bb.com/viewtopic.php?t=31812&sid=23b113e1f82a21ba8c1a513447171a50
Measures Disastrous For Island Economy Posted by Eddy: June 1st 2006, Aruba.
ORANJESTAD-The increase of import duties on luxury products effective as of today will have a negative affect on tourism, the economy and the population, that is the conclusion of the Aruba Trade & Industry Association (ATIA).
According to ATIA it is time for the government to sit down at the table with social partners and together find a solution for the growing problems facing Aruba today. The solution does not lie in increasing import duties on luxury products.
The Aruban community is beginning to absorb the high oil prices on the global market which has already weakened consumer spending and slowed economic growth on the island. It is irresponsible to add more measures on the Aruban community without taking into account the micro and macro economic consequences of such according to ATIA.
ATIA acknowledges that there are external factors that have negatively influenced the island economy. The
Natalee Holloway affair plays a major role in that according to the association.
Nevertheless government spending is very high for such a small island according to ATIA. The association refers to the large number of people employed by the government. The International Monetary Fund, the World Bank, the Central Bank of Aruba and a number of independent local and international associations have warned the government for employing too many people.
ATIA believes that the measures now effective will have disastrous consequences for the island economy and should be revoked. Aruba will be expensive for its own citizens and more so for tourists. Clothing, jewellery and watches are the most popular products purchased by cruise passengers. It is very likely that they will all buy the products at cheaper islands included in their cruise itinerary according to ATIA.