Overcoming economic vulnerability and building resilience in Saint Lucia

Abstract

This chapter overviews the major economic issues in St Lucia and shows that most of St Lucia's economic problems arise from a number of inherent characteristics, notably its very small size, its very high dependence on foreign trade and its limited diversification possibilities. These characteristics lead to economic vulnerability. The globalisation process has exacerbated these problems due to the dismantling of preferential trade arrangements and the intensification of international competition. The chapter proposes a number of measures which could strengthen the islands coping ability and build up resilience to withstand its inherent economic vulnerabilities. Although the chapter makes frequent reference to government action, the private sector has a major role to play in resilience building. Recognising that the private sector must become the primary engine of growth, the Government has established an Office of Private Sector Relations (OPSR) to stimulate private sector development. Given that resilience building concerns both the private and public sectors, both should seize the opportunity to restructure themselves to take advantage of the democratisation of technology, finance and investment, embedded in globalisation.