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The base allocation to each line ministry will represent between 90 and 100% of the previous year’s recurrent budget, in addition to an amount to be expended on ongoing capital activity, plus an amount to cover minor capital expenditure. During the budget formulation process, each line ministry will present the programmes that it will pursue over the budget year as well as for two indicative years thereafter, utilizing its base allocation.
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Each ministry’s budget will reflect the targets that will be pursued under the ministry’s programme in relation to its mandate and consistent with the descriptions of the necessary conditions for achieving the various sustainable development dimensions set out in the MTDS, to which the ministry contributes. Thus, ministries’ capacity for programme budgeting will be strengthened in order to improve the degree of achievement of development results.
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This will also require strengthening the monitoring and evaluation framework and this is addressed in Chapter VII. All line ministries are expected to make significant efforts to better utilize available resources, and to arrive at in- budget solutions for pursuing results that are ambitious but realistic. Any resources projected to be available for non-debt servicing spending over and above the consolidated base expenditure allocation, will be the strategic spending allocation.
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The strategic allocation will be assigned priorities that will be determined under the prioritization framework set out in the section immediately below. These strategic priorities, among which choices will have to be made, are those set out in Chapter III of this MTDS as the core programme of actions, and also include other supporting or indirect actions set out elsewhere in the document.
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Thus, in addition to the programmes related to the use of its base allocation, each line ministry will also indicate the element of its programme for additional strategic initiatives or actions that are aimed at achieving the necessary conditions for the various SDDs to which the ministry contributes.
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GoAB Medium-Term Development Strategy 2016-2020 Page 13 These additional strategic actions may represent new initiatives, ramped-up efforts of core activity, institutional strengthening, or other indirect actions necessary to improve the attainment of results. Ministries will indicate the additional degree to which result targets will be achieved based on the additional strategic allocation that it may receive.
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The budget approval process will thus be appropriately adjusted to allow for the assignment of base and strategic expenditure allocations and for their appropriate reflection in line ministry’s programme budget. B. The Prioritization Framework While the proceeding Prioritization Framework applies principally to the Strategic Spending Allocations, it can also be used for assessing Base Expenditure Allocations in cases of significant resource scarcity.
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The approach builds on the general principle of pursuing an integrated, systemic, sustainable development approach to national planning. The strategy is to apply (1) a simplified multi- criteria assessment framework in assessing implementation decisions and allocating scarce resources to new strategic initiatives; combined with (2) a general phasing approach that takes account of the country’s stage of development. The framework will be applied by the MoFCG as part of the annual budgeting exercise.
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The framework could also be used by technical bodies reviewing a set of issues for high-level decision-making, as appropriate. The framework is applicable to the full range of growth and sustainable development issues elaborated in this MTDS, including medium-term policies to reposition tourism, strategies to facilitate access by citizens to adequate housing and decent wages, measures to restore the health of critical ecosystems, and those actions needed to improve performance.
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The latter includes actions related to building and realigning human resource capacity. The Framework The MTDS Prioritization Framework considers four critical aspects of policy implementation: 1. Level of Urgency: The degree to which an action is required in order to avoid near- term, system-critical disruptions or missed opportunities. Actions deemed urgent receive higher priority. 2.
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Actions deemed urgent receive higher priority. 2. Level of Impact: The degree to which an action leads to visible and measurable improvements in quality of life for Antiguans and Barbudans in the Medium-Term. High-impact actions receive higher priority. 3. Availability of Resources: The extent to which resources (either internally generated or external) have already been or can be easily committed to the action.
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“Resources” include financial as well as human resources necessary to implement the policy. Actions linked to existing or easily mobilized resources receive higher priority. 4. Net Systemic Contribution: The extent to which an action contributes, over time, to the integrated or systemic achievement of the Sustainable Development Dimensions. This criterion involves assessing whether the action contributes to multiple SDDs, or whether its implementation comes at a cost (trade-off) to other SDDs.
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Actions that contribute more highly to multiple SDDs, without trade-offs, receive higher priority. GoAB Medium-Term Development Strategy 2016-2020 Page 14 Actions and initiatives designed to be cross-cutting should score highly on this criterion, by design. Given Antigua and Barbuda’s resource constraints and the complexity of the issues involved, this framework is not being presented as a requirement for formal Multi-Criteria Decision Analysis (MCDA).
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The framework will generally be used to inform deliberative, qualitative discussion and decision-making about priorities. More technical MCDA, including quantitative analysis, should only be implemented in those cases where structured, formal, and precise approaches to prioritization are essential (e.g. assessing and sequencing infrastructure investments). Table 2 provides a more detailed description of the framework using a “High, Medium, Low” scoring approach.
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A more detailed scoring approach, following this general architecture, can (and in some instances should) be developed for individual ministries or project areas. Table 2: A simplified multi-criteria prioritization framework for implementation of the MTDS.
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A more detailed and formal scoring system, following this general architecture, should be devised for specific ministries or policy areas in those cases where there are more complex considerations or where there are a large number of items requiring prioritization, and finer distinctions must be made. The framework can also be used as a discussion tool without formal scoring.
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In all events, use of the framework will bring to light points of consensus and/or disagreement among policy-makers regarding priority considerations, and difficult decisions can be remanded to a higher level (e.g. the Technical Committees, Committee of PSs, or Cabinet) if deemed necessary. 1. Level of Urgency 2. Level of Impact 3.
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Availability of Resources Table 2: MTDS Prioritization Framework Degree to which an action is required in order to avoid near-term, system-critical disruptions or missed opportunities Degree to which an action leads to visible and measurable improvements in quality of life in the Medium- Term Extent to which resources (budgetary or external) have already been, or can be, committed to the action High = Failure to implement the action in the near-term is likely to result in serious damage to the current and future prospects of Antigua and Barbuda, as reflected in the Necessary Conditions (NCs).
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High = The action will lead to quick, visible, and measureable improvements in quality of life for Antiguans and Barbudans Medium = The action is desirable in the Medium- Term and delay in implementation significantly increases the risk that objectives will not be met in a timely fashion Medium = The action will have a noticeable and measureable positive effect on quality of life in the Medium-Term, but the effects will be more noticeable in subsequent periods High = Funds and human resources are already allocated, can easily be allocated, or can (with high levels of certainty) be mobilized from extra- governmental sources Medium = Resources are expected to be available for allocation, with lower levels of certainty 4.
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Net Systemic Contribution Extent to which an action contributes, over time, to the integrated achievement of the Necessary Conditions High = The action contributes to advancing multiple (or even all) Necessary Conditions in the medium and long term Medium = The action contributes to advancing one or two Necessary Conditions (NCs), with little to no trade- off required regarding the other NCs Low = The action can be postponed at low risk to the current and future prospects of Antigua and Barbuda Low = The positive effects of the action on quality of life will not be felt or be measurable until after the current planning period Low = Political and economic circumstances make it very difficult to identify and/or allocate resources at this time Low = The action advances only one Necessary Condition, at the expense of progress on (or at the cost of damage to) other NCs GoAB Medium-Term Development Strategy 2016-2020 Page 15 Applying the Framework In general terms, the framework will be applied in budgeting by (1) determining the budget allocation available for new Strategic Allocations, and (2) applying the framework (or a more detailed version of it, as described in the notes to Table 2 above) to set priority rankings in place.
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The prioritization exercise will be undertaken by the MoFCG for recommendation to the Minister of Finance. However, MoFCG will hold consultations with line ministries, other public sector bodies and SOEs to help inform priorities (see Chapter IV re the planning framework). The MoFCG will also consult with the private sector and civil society organizations in that regard.
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Actions scoring lower in overall ranking would be sequenced for implementation as funding and other necessary resources become available. From time to time an action may be deemed a “Quick Win”, in the political judgement of the Government of Antigua and Barbuda, meaning that it is easy to implement and worth prioritizing, even if it does not appear to score better than other choices in the context of this multi-criteria evaluation.
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In other instances, an action may be deemed of high strategic importance, in the political judgement of the GoAB, and may be considered for priority implementation as an exception, though it may not appear to score well in the context of this multi-criteria evaluation, or in those cases where evaluation is considered ambiguous or difficult to determine.
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Such actions should generally be discussed thoroughly by the GoAB in concert with an appropriate advisory body before a determination is made regarding exceptional prioritization. C. Flagship Priorities Seven “flagship” priorities have been identified for implementation over the Medium-Term. Actions within these areas are fully discussed in Chapter III The Core Programme of Actions and are only summarized here.
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These areas represent the highest priorities to be focused on over the Medium-Term as they are deemed to be highly strategic areas or have been assessed as having the potential to significantly transform the state of development of Antigua and Barbuda.
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Actions in these areas will be pursued through existing ministerial or institutional arrangements, but close inter-ministerial co-ordination will be required and pursued under the development planning and MTDS implementation framework discussed in Chapter IV. Where necessary special co-ordination committees will be established to oversee the pursuit of these flagship priorities within the framework outlined in Chapter IV.
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Actions related to the flagship priorities will be closely monitored and evaluated and progress on them will be thoroughly communicated to citizens and stakeholders. Actions within these flagship priority areas will still be subjected to review and revision under the prioritization framework discussed above, but special attention will be paid to these areas.
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Flagship Priority One: Adequate infrastructure Renewing and upgrading critical infrastructure, especially sea ports and airports, and improving waste disposal systems as a foundation for maintaining and enhancing the country’s GoAB Medium-Term Development Strategy 2016-2020 Page 16 competitiveness. This is particularly critical to repositioning our tourism sector and for enhancing its competitiveness regionally and internationally.
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Flagship Priority Two: Strong Tourism Industry as an Economic Anchor Our aim is to reposition Antigua and Barbuda as a premier world class destination that is sufficiently differentiated from other destinations. This will enable us to restore, maintain and enhance our competitive advantage.
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This will require continued efforts to: expand the room stock; reinvigorate much of the existing aging plant and equipment; engage in adequate marketing; establish adequate air and sea access; improve aesthetics (especially in high tourist traffic areas); enhance and enforce standards and regulations; restore and maintain historical and cultural sites; and protect the environment, including coastal and marine ecosystems. This area is detailed under NC 1.4.1.
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This area is detailed under NC 1.4.1. Flagship Priority Three: Transform Barbuda into a Green, Low Density, High-End Tourism Destination Barbuda is a natural paradise with unique pink sand beaches, lagoons, salt ponds and unique flora and fauna species, including one of the world’s largest bird sanctuaries.
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Barbuda is virtually untouched with significant growth potential which, if exploited in a sustainable manner, can substantially transform the way of life for Barbudans while at the same time, protecting and preserving its natural beauty. Flagship Priority Four: Better Utilization of our Marine Space Antigua and Barbuda’s economic zone is 200 times larger than its land mass, but we only significantly exploit the tourism related aspects of our marine space.
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Thus, we will pursue strategies to expand existing efforts and explore new opportunities to utilize our marine space and resources. New opportunities could include the generation of energy from ocean currents, wave motion and temperature differences as well as exploration and sustainable extraction of minerals. There will also be greater emphasis on the yachting sector and the ports. Actions towards more fully and sustainably exploiting our marine space are captured under NC 1.4.2.
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Flagship Priority Five: Export of Non-Tourism Services Antigua and Barbuda’s greatest asset is its human capital. Over the years we have invested much in human resource development. While remittances have contributed much to our economy, there is much more potential that can be exploited from the supply of our human capital to other countries. In order to reap greater benefits we will thus move to better organize the supply of trained individuals to meet international demand.
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This will include developing entrepreneurial opportunities for nationals. Further, details are discussed under NC 1.4.2. Flagship Priority Six: Reducing the Cost of Energy and Improving Energy Security This flagship priority is important as it contributes to improving the competitiveness of Antigua and Barbuda as an investment destination as well as to improving our economic resilience and reducing our carbon footprint. Actions related to this area are captured under various areas of Chapter III.
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Efforts in this area will focus on improving energy efficiency through the use of GoAB Medium-Term Development Strategy 2016-2020 Page 17 better technology; significantly increasing the use of renewable energy (including from marine sources); improving the business structure for the generation and distribution of energy; incentivizing the use of more efficient and more environmentally friendly technology and energy sources; and enhancing the tariff framework and the framework for public sector regulation, among other areas.
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Flagship Priority Seven: Better Access to Adequate Housing Despite the country’s high level of human development, many citizens, including government employees such as teachers, nurses and police officers, still cannot afford decent housing. We will take action to correct this situation. Moreover, we will continue to address urban congestion and unacceptable living conditions in some communities.
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In addition, the aesthetics associated with housing are also of concern as they impact the quality of the tourism product. Initiatives in these areas are also important for building national pride and promoting high self-esteem among citizens, and are an essential aspect of the strategy to ensure that the benefits of growth are adequately shared. GoAB Medium-Term Development Strategy 2016-2020 Page 18 Chapter III Core Programme of Action A.
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Sustainable Development Dimension I: Optimal Generation of National Wealth Antigua and Barbuda currently relies heavily on the tourism sector as the main engine of growth. The strong performance of the industry and the closely related construction activity in previous years contributed to a relatively high standard of living in the domestic economy. The economy of Antigua and Barbuda experienced average real growth of 6.82% during the period 2003 to 2007.
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However, the onset of the global financial crisis and recession in our major source markets, contributed to a steep decline of 10.7% in Gross Domestic Product (GDP) in 2009 from growth of 1.5% in 2008, while growth has remained weak thereafter. Prior weak investment choices contributed in part to competitiveness, fiscal and debt sustainability challenges.
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Furthermore, unsustainable debt levels (96.3% of GDP in 2009), have stifled our ability to effectively respond to the crisis and to address competitiveness issues, while severe structural and governance weaknesses have reduced our resilience. There is therefore an urgent need to re-invigorate growth in the domestic economy and to place it on a more sustainable path in the medium to long-term.
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This is critical if the country is to recover lost ground with respect to social and economic development; maintain its high level of human development; and reduce poverty and vulnerability. The GoAB will target growth in real GDP of 5% over a sustained period, and a decline in unemployment towards full employment levels.
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Accelerating growth will require, among others, stabilizing the economy (including resolving challenges in the financial sector); expanding the fiscal space for pursuing growth strategy; developing alternative financing vehicles; improving the competitiveness of enterprises; improving the organization of productive activity; and strengthening the capacity of the domestic private sector to play a greater role in absorbing labour in order to relieve employment pressure within the public sector.
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Strengthening the capacity of the domestic private sector will in turn better position the public sector to finance important public sector investments and to pursue its growth strategy. Improving competitiveness will require efforts aimed at entrenching the tourism industry as a lead sector and improving its competitiveness.
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This will involve improving the visibility of Antigua and Barbuda, attracting significant investments to expand the tourism plant; attracting investment and financing for the renewal and upgrade of the aging tourism plant; and making the Antigua and Barbuda’s product offering more diverse and attractive to different market segments.
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Beyond tourism, efforts will continue to boost the production of goods and the provision of services in which Antigua and Barbuda is competitive or can become competitive, particularly where there is good export market access. Such economic transitioning will require us to strengthen the capacity of the private sector.
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Thus, much attention will be paid to putting in place the framework to help enterprises (tourism and non-tourism) improve competitiveness and to identify and support the development of enterprises with export potential, including those in the agro and manufacturing sectors.
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GoAB Medium-Term Development Strategy 2016-2020 Page 19 Alongside its importance for providing greater equity of opportunity for economic and social advancement among citizens, education will continue to be a tool to engender greater economic competitiveness, but focus will be placed on better aligning education to meet the needs of the economy. This will facilitate greater economic transitioning including the emergence of a strong services industry.
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Moreover, strategies which increase the competitiveness and resilience of the economy, while at the same time enhancing the health of the environment will be pursued. This will include efforts in the area of renewable energy generation. Our strategic efforts to unlock our growth potential, encompassing the above discussion as well as other areas, are reflected below in relation to the necessary conditions that will be pursued to optimize the generation of wealth.
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To accompany these efforts, every attempt will be made to enable the vast majority of Antiguans and Barbudans to meaningfully participate in the economy and to share in the national vision. Building such social cohesion requires a range of strategies that are addressed under SDD 2. Consistent with these, strategies to grow the economy will be imbued with considerations to accompany growth with equity.
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This includes strategies to enhance the ability of persons to earn wages that are sufficient to have a good quality of life, as well as strategies to encourage significant participation of citizens in the ownership of economic assets and private enterprise. Furthermore, crime must be kept in check to enable citizens to enjoy the fruits of their labour, but importantly as well, to preserve and enhance our competitiveness and our attractiveness as a tourism and investment destination.
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In that regard actions to enhance citizen security are dealt with under SDD 4. Moreover, we must ensure that our country continues to have a natural resource base that can sustain tourism and other economic activity. Further, it will be important to improve the health of the environment in order to set Antigua and Barbuda apart as a first class tourism destination. Actions in relation to these are dealt with in more details under SDD 3.
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NC 1.1 Macroeconomic Stability Macroeconomic stability is a necessary foundation for encouraging investment and economic activity. In that regard, while we have typically operated in a low inflation and fixed exchange rate environment that have served us well, significant actions will be taken to address debt sustainability and financial sector stability, in order to improve business and investor confidence.
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GoAB will target reducing debt to 60% of GDP by 2030 ( from a high of 98.7% in 2014 in line with the prudential guidelines set by the Eastern Caribbean Central Bank (ECCB), while concerted efforts will be made to resolve banking soundness issues by end of 2015. We however resolve not to leave a huge burden of debt on future generations. Further, lower debt will not only improve confidence in economy, but will also, ultimately free resources to address development needs.
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The initial resourcing implications of our pursuing our debt target mean that we will need to carefully craft the remainder of our growth strategy, as this represents the other side of the coin for arriving at debt sustainability. The following actions will thus be taken in the Medium-Term to address debt sustainability and financial sector soundness.
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GoAB Medium-Term Development Strategy 2016-2020 Page 20 Action 1: Pursue debt relief and debt restructuring The MoFCG will lead efforts to accelerate the implementation of a Medium-Term Debt Strategy that will focus on: borrowing and refinancing at international market rates; pursuing concessional multilateral and bilateral financing; managing foreign currency exchange rate risks and giving priority to financially viable projects.
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Action 2: Adjust fiscal operations toward reducing debt to 60% of GDP by 2030 Beyond debt relief and debt restructuring contributions, the MoFCG will lead efforts to make adequate fiscal adjustments that would result in a steady reduction in debt towards the 2030 target. Action 3: Complete ABI Bank Resolution The MoFCG will lead efforts towards the Resolution of the ABI bank as part of efforts to improve the soundness of the regional banking system.
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In that regard GoAB will work closely with ECCB, and where necessary, will seek financing support from multilateral development banks including the Caribbean Development Bank. Action 1 and Action 2 above are discussed in greater details under Chapter V Resource Mobilization, under which specific measures to address the resource constraints are set out.
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NC 1.2 Penetrating Export Markets As a small open economy, sustaining and increasing trade with the rest of the world lies at the heart of our efforts to generate wealth. Tourism currently is our main export and is the primary driver of economic growth. Accelerating economic growth requires us to improve the competitiveness of the tourism industry, as well that of other industries.
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Core strategies for doing so which address the direct cost of production of goods and services are reflected under NC 1.4 Effective Industrial Policy, as well as under various other NCs, and these will contribute to the greater penetration of export markets.
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This subsection focuses on actions to foster greater penetration of export markets which relate more directly to addressing trade constraints that may have cost implications (trade related), but that are not associated with the direct cost of producing goods and services.
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Antigua and Barbuda enjoys good relations with its major tourism source markets (the USA, Canada, Europe and the Caribbean), and while there could be incremental improvements with respect to other markets, visitor access the island from the major source market is acceptable. With respect to other goods and services, there are trade agreements in place which give us access to several markets, including OECS, CARICOM and the European Union, on a reciprocal basis.
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Therefore, our ability to expand exports of goods and services relate mostly to the extent to which we can take advantage of these export opportunities.
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The core of our strategy to position the country to take advantage of these access opportunities will revolve around leveraging regional integration movements – OECS, CARICOM; exploiting opportunities under the Economic Partnership Agreement (EPA) by putting in place appropriate institutional arrangements including through information sharing; improving intelligence GoAB Medium-Term Development Strategy 2016-2020 Page 21 gathering and the dissemination of such information to stakeholders; putting in place the capacity to assisting enterprises to improve standards and to meet certification requirements; addressing quality issues beyond the boundaries of the firm; facilitating better access to export financing; enhancing trade facilitation and improving trade promotion.
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Much of the strategy will be guided by the reality that many firms are small and micro businesses, which makes it difficult for them to individually address many of these issues. This reality will also influence the design of industrial policy addressed under NC 1.4. The work of various public sector bodies will contribute to the greater penetration of export markets. In that regard, key strategic efforts to be prioritized over the Medium-Term are outlined below.
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The ministry responsible for tourism and the Antigua and Barbuda Tourism Authority (ABTA) will continue to lead efforts to promote the country as a premier tourism destination and prioritized strategy in that area is addressed under NC 1.4 Effective Industrial Policy. Strategies aimed at helping enterprises grow to the point where they are export ready are also addressed under NC 1.4.
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Action 1: Mount more active efforts to help firms develop branding and labelling and meet other standards and certification requirements The ministry with responsibility for trade will go beyond general sensitization and training efforts, to develop more active approaches with regard to this action. This will require giving careful consideration to how firms are targeted and to how such efforts are to be financed, among others.
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The strategy will be closely tied to efforts to improve access to development financing and to other components of industrial policy addressed under NC 1.4. Action 2: Strengthen the provision of laboratory services Laboratory services are important to support efforts to help individual firms improve standards and attain quality certification.
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They are also critical to support efforts to promote public health and food safety, which are also essential to repositioning the tourism industry as premier destination. The provision of laboratory services, which is currently done through two laboratories, will be consolidated under one laboratory which will perform varied functions including food testing, water quality testing, providing services to the tourism industry and private enterprises, as well as to the police.
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The expected resulting savings from scale will be channelled into the more adequate provision of services. Strengthening the provision of laboratory services will also require the construction of a purpose built facility, while encouraging greater efforts to improve food safety and public health will require putting in place adequate legislation.
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The ministry with responsibility for agriculture (or another agency as appropriate) will lead efforts to improve laboratory services including designing strategies to attain laboratory accreditation, and to adequately recover the full cost of the provision of such services. Action 3: Study the feasibility for strengthening export financing This action will be taken in concert with Action 3 under NC 1.4.4 with respect to the enhancing access to development financing.
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GoAB Medium-Term Development Strategy 2016-2020 Page 22 Action 4: Develop a list of implications of Antigua and Barbuda’s participation in the OECS and CARICOM This action will be led by the ministry responsible for trade in consultation with the Ministry of Legal Affairs, and will serve to inform further actions that will be necessary in order for the country to fulfil its obligations, and to realize opportunities that regional integration affords.
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Action 5: Identify export opportunities that have become available under EPA The ministry responsible for trade will lead on this action and will collaborate with other stakeholders as necessary with respect to the conduct of the study, the necessary follow-up activities that may be necessary to unlock this potential and the institutional framework that may best facilitate these actions.
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Action 6: Continue efforts to improve trade facilitation through the implementation of ASYCUDA World and improvements in port efficiency Efforts led by the Customs and Excise Division are well on the way to implementing ASYCUDA World, which uses an automated web-based platform to facilitate trade and customs operations.
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In addition to the improved trade facilitation, the implementation of the system is also expected to contribute to an enhancement in revenue at the border due to reduced discretion and better risk management. The implementation of this project will be closely monitored to ensure that the full range of expected benefits is realized including the reduction in port clearance times.
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The platform will also provide the opportunity to synchronize a number of other processes critical for trade facilitation including, port functions, food quality and other quality requirements. With respect to sea port operations, the Antigua Port Authority (APA) will continue strong efforts towards improving the efficiency of the port in order to realize greater ease and lower cost of doing business.
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These actions include those necessary to strengthen human resource capacity and reduce costs; improve business processes and arrive at an appropriate structure for public sector vis-à-vis the private sector in relation to the provision of certain port services; and arriving at a competitive pricing structure. Actions toward improving sea port and airport infrastructure are address under NC 1.6.
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NC 1.3 Attracting Foreign Investments Accelerating economic growth in Antigua and Barbuda to the 5% target that we desire over a sustained period will require a significant level of investments. The small size of our economy and the implications for the distribution of investment risks, limited domestic savings, and inadequate financial sector innovation and organization, created the space for the strong role that foreign investments have played in the development of Antigua and Barbuda.
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While much needs to be done to generate more domestic savings, Antigua and Barbuda will continue to require significant foreign investment to fill the investment gap, as well as to serve as a vehicle for the transfer of technology and knowhow. Improving the efficiency of domestic financial intermediation to facilitate the generation of additional domestic savings that may be channelled into investment in the domestic economy will be addressed under the NC 1.5 Efficient markets.
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GoAB Medium-Term Development Strategy 2016-2020 Page 23 Antigua and Barbuda will re-position itself to attract significant levels of foreign investment by addressing several constraints. These constraints relate to the attractiveness of returns to potential investors, the adequacy of physical infrastructure, the level of demand for specific goods and services and the adequacy of export promotion efforts. Many of these areas are addressed under various NCs under SDD 1.
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The focus of the strategy in relation to this NC, is making potential investors aware of opportunities for returns, providing appropriate incentives to attract investments and facilitating such investments. With regard to these, much attention will be paid over the Medium-Term to the actions listed below. Efforts to attract foreign investments, especially in the area of tourism, will be calibrated against business and resource sustainability considerations.
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Such considerations include the capacity for waste disposal and the quality of visitor experience and will have implications for planning and sequencing and are also critical to repositioning our country as a premier tourism destination. Thus these considerations will be thoroughly discussed through the implementation mechanism detailed in Chapter IV.
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Action 1: Continue to intensify efforts to attract foreign investment in order to reposition the tourism industry This action will support GoAB’s drive to reposition the tourism industry. Already, there are a number of new tourism developments on the cards at various locations, including Barbuda, Willoughby Bay, and Dieppe Bay, some of which are geared to the high end of the market. Additionally, efforts are also ongoing to attract investment to redevelop some existing plants.
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Such efforts which are being led by the ministry with responsibility for tourism will continue. Action 2: Closely coordinate CIP programme with tourism investment promotion efforts This action will be the joint responsibility of the CIP Board and the ministry with responsibility for tourism. Action 3: Review the investment incentive regime This action is addressed in further details under NC 1.4.6 below.
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Action 4: Improve the ease of doing business The ministry with responsibility for industry will to lead efforts to improve the ease of doing business. These actions are an important element of efforts to enhance efficiency of domestic markets and to attract more domestic investors. NC 1.4 Effective Industrial Policy A vibrant and dynamic private sector is necessary to optimize economic growth.
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While the traditional role of government generally centres around providing the appropriate enabling environment for private sector activity, our circumstances in Antigua and Barbuda necessitate a more active role for government in the development of a vibrant and dynamic private sector. This requires us to put in place strategies to increase the capacity of the private sector and to assist them to become more competitive.
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Several facets of public sector operations are set up to GoAB Medium-Term Development Strategy 2016-2020 Page 24 do just that, but we need to strengthen our efforts, and closely monitor and evaluate their effectiveness in order to make necessary adjustments. We will build on existing initiatives and adjust as necessary in order to arrive at a broader and more effective mix of measures devised to contribute to the optimization of economic growth. These measures must complement the market mechanism.
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Specifically, the industrial policy of the GoAB includes a range of interrelated strategies as follows: 1. entrenching tourism as a foundation for economic development; 2. facilitating optimal economic transformation; 3. enhancing the competitiveness of firms; 4. increasing access to development finance; 5. supporting technological adaptation and innovation including green technology; 6. providing appropriate incentives; and 7. encouraging growth with equity.
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Actions related to the above areas are reflected under the sub-components below. NC 1.4.1 Strong Tourism Industry as an Economic Anchor Since the last two decades of the twentieth century GoAB has put in place various strategies to support the growth and development of the tourism industry. Tourism has become the mainstay of our economy and along with tourism related activities, account for in excess of 70% of GDP (according to the World Travel and Tourism Council).
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While we recognize the need to strengthen the competitiveness of other industries and sectors, the tourism sector remains critical to our economic fortunes and there is yet significant potential for growth. Moreover, a vibrant tourism industry will facilitate the development of ancillary services, and generally help create the business environment that can serve as the foundation for the development and growth of other industries.
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However, the industry faces increasing competition from other tourism destinations including neighbouring island states. We must improve the competitiveness of the industry if we are to raise economic growth toward 5% per annum over a consistent period. Our aim is to reposition the industry as a premier world class destination that is sufficiently differentiated from other destinations. This will enable us to restore, maintain and enhance our competitive advantage.
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This will require, continued efforts to expand the room stock; reinvigorate much of the existing aging plant and equipment; engage in adequate marketing; establish adequate air and sea access; improve aesthetics (especially in high tourist traffic areas); enhance and enforce standards and regulations; improve physical planning and coordination; restore and maintain historical and cultural sites; and protect the environment, including coastal and marine ecosystems.
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Clearly, as a priority sector and a foundation sector for the economy, tourism is not just the responsibility of the ministry responsible for tourism; hence the awareness of the central importance of tourism must pervade and directly influence the work of all other public bodies.
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GoAB Medium-Term Development Strategy 2016-2020 Page 25 Hence, towards the repositioning of the tourism industry as a leading sector for economic development and as a foundation on which economic transition will be pursued, the following actions will be prioritized over the Medium-Term. Action 1: Prepare a revised tourism master plan The Ministry of Tourism is in the process of developing a Medium-Term Tourism Strategy. This opportunity will be used to revise the existing Master Plan for Tourism.
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Towards these endeavours, a National Symposium on Tourism is scheduled to be held in 2015 and will expand on the following broad strategies among others: 1. Enhancing and promoting traditional tourism in a sustainable manner focusing on preservation and conservation – beach tourism, residential tourism, weddings and honeymoons 2. Developing Barbuda as a high-end, low-density resort destination 3. Increasing the visibility of Antigua and Barbuda 4. Attracting adequate airlift 5.
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Attracting adequate airlift 5. Promoting sectoral linkages, for example with the Ministries of Agriculture, Education and Public Works, and inter-agency collaboration e.g. with St. John’s Development Corporation 6. Developing standards and regulations for persons involved in the delivery of tourism 7. Attracting new investments 8. Exploring and developing new tourism products – medical tourism, sports tourism, conventions, marine and cruise tourism 9. Building tourism awareness nationally 10.
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Building tourism awareness nationally 10. Stimulating community participation to authenticate the tourism product 11. Easing visa restrictions to help open new markets – example China and India 12. Revamping aspects of the mature product in need of renewal, upgrading, modernization; and rebranding. Much of the above strategies will be incorporated in the work programs of the ministry with responsibility for tourism and the Antigua and Barbuda Tourism Authority (ABTA).
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Action 2: Improve inter-ministerial co-ordination necessary for the repositioning of tourism Several other complementary strategies for the repositioning of the tourism industry are expected to be laid out in the Tourism Master Plan and these are not expected to be directly pursued by the ministry responsible for tourism or the ABTA, but rather by the rest of the public sector.
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This aspect of the master plan will be coordinated by the MoFCG through the Development Planning Unit (DPU) as laid out in the MTDS implementation arrangements in Chapter IV.
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These complementary strategies will include those to address, input costs which are important for competitiveness; human resource development and skills availability; connectivity – roads, ports, airports; aesthetics; transportation; the heath of the environment including waste water treatment and solid waste management; law enforcement and security; and the timely collection and GoAB Medium-Term Development Strategy 2016-2020 Page 26 dissemination of accurate and relevant data.
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