OPENING REMARKS BY
GOVERNOR OF THE EASTERN CARIBBEAN CENTRAL BANK
TIMOTHY N. J. ANTOINE
Delivered at Launch of the ECCB's 40th Anniversary Celebrations
ECCB Headquarters, Saint Christopher (St Kitts) and Nevis
19 January 2023
Salutations:
Heads of State
Heads of Government
Hon. Philip J. Pierre, Prime Minister and Minister of Finance of St Lucia and
Chairman of the Monetary Council
The Honourable Dr Terrance M. Drew, Prime Minister of St. Kitts and Nevis
and Council Member for St. Kitts and Nevis
Other members of the Monetary Council
Ministers of Government
The Rt. Excellent and Rt. Honourable Dr Sir Kennedy Simmonds, former
prime minister of St. Kitts and Nevis, National Hero and the sole surviving
signatory of the ECCB Agreement in Trinidad on July 05, 1983.
Members of the Diplomatic and Consular Corps
Dr. Valda Henry, Deputy Governor, ECCB
Ms. Tracy Polius, Chief Director (Policy)
ECCB Board members
ECCB Management and Staff
Retirees
Specially invited guests
President and Members of the St. Kitts-Nevis Youth Parliamentary
Association
Competition Winners
Members of the Media
Citizens, Residents and Friends of our Currency Union
ECCB Family, Greetings.
Introduction
On this glorious evening, we launch our year-long celebrations for our
40th anniversary.
Let this be a year of joyous celebration of our many successes en route to this
milestone.
Let this be a year of reflection on the difficult road we have travelled together.
And let this be a year of vision and imagination (of what could be and should
be) as we set our sights on the next decade and beyond.
But let these celebrations begin with a pause for applause to Almighty God
"for in Him, we live and move and have our being" (Acts 17:28).
Let us shout "Ebenezer" for "thus far the Lord has helped us" (1 Samuel
7:12, NIV).
Forty years on:
 Our foreign reserves have grown from under EC$150 million to over
EC$5 billion (Slide 1)
 Bank deposits have risen from EC$1 billion to over EC$24 billion;
(Slide 2) and
 Our staff complement has increased from 55 to 272 with
representation from every member country.
This evening, I confirm that our EC dollar remains strong with a
foreign reserves backing of 91 percent.
Our celebration of this milestone is especially gratifying because the past 40
years have been anything but smooth sailing. We have endured external
economic shocks, hurricanes, volcanoes, recessions and mostly recently, a
pandemic. But here we are, still standing.
Lest we forget, our fair isles were not given much hope or help (hence our
argument for reparatory justice) to survive. After the demise of the British
Caribbean Currency Board, the territories in the Eastern Caribbean pitched
tent with Barbados and formed the Eastern Caribbean Currency Authority in
1965. However, when Barbados attained independence in 1966 and
subsequently set up its own central bank in 1972, we were on our own. Sir
Arthur Lewis' article styled "the Agony of the Eight" paints a vivid picture of
the constitutional crisis and psychological pain of that moment.
It is said, in challenge, there is opportunity.
So what did we do?
Fighting for survival, we came together and eventually formed the
Organisation of Eastern Caribbean States in 1981 and the Eastern Caribbean
Central Bank in 1983. The rest is history.
Look at us now. The ECCU is one of the strongest monetary unions in the
world.
Over this 40-year adventure, the ECCB has entertained and educated visitors
from the European Union, the Bank of Central African States (which
comprise 6 countries) and the Gulf Council (which includes Saudi Arabia,
Kuwait and UAE), all of which have sought the ECCB's counsel on the making
and sustaining of a successful monetary union.
What vital lessons might we take away from this rich historical record?
First, as small states, we always give ourselves a fighting chance when we
come together for common cause and take collective action. For when we do,
we are an irrepressible force of ingenuity, resilience and public good. Indeed,
we are well capable of crafting arrangements that work for us. Second, we
are model for the rest of the world and possess a record of which we can be
justifiably proud.
Over the past five years, the ECCB has received five global awards, all
recognition of our initiatives and innovations as we continue to build on the
rich legacy of our framers and founders.
At this juncture, I pay homage to the pioneers and first leaders including Sir
Cecil Jacobs, our first governor (6 years), Sir K. Dwight Venner, our second
and longest serving Governor (26 years). Sir Errol Allen, our first and longest
serving Deputy Governor (22 years) and Mr. Trevor Brathwaite, our second
Deputy Governor (15 years).
Of course, it ought to be recalled that both Sir Cecil and Sir Errol were leaders
in the East Caribbean Currency Authority, the forerunner to the ECCB and
were key architects of the transition to a full-fledged central bank.
I wish to pay tribute to past and current members of the Monetary Council
and past and current members of our Board.
As I survey our Auditorium, I see many retirees, all of whom have helped
make our Central Bank what it is today. Indeed, we stand on your shoulders.
I also see many of my current colleagues. Let us applaud all of them.
I also place on record, appreciation of our development partners especially
the International Monetary Fund and the World Bank.
Amidst our celebrations, we must undertake honest and sober reflections.
Indeed, the truth must always be our friend.
Listen to this:
Per capita income is a commonly used, albeit, flawed measure of living
standards. Its attraction is its ease of comparability. As an economist and
development practitioner, I readily concede it does not speak to the social
condition of our people of which there are significant concerns in respect of
mind-sets and skillsets, health and education outcomes and social
pathologies such as crime.
(Slide 3)
In 1983, per capita income in the USA was approximately US$30,000. In
comparison, per capita in the ECCU was about US$3,600 (EC$9,720) or 12
percent of US per capita income. That differential is a simple measure
of the wealth gap between the ECCU and the USA, our major
trading partner and to which our dollar is pegged. (Slide 3).
Today, per capita income in the USA is approximately US$60,000. In
comparison, per capita income in the ECCU is approximately US$9,000
(EC$24,300) or 15 percent of US per capita income.
A 2.5 times increase of ECCU per capita income over 40 years and the lack
of faster convergence of the ECCU to US living standards is a very
disappointing outcome. This performance is reflective of the many
exogenous shocks our region has endured, as well as some policy choices.
The key takeaway, then, is that we must revamp our development strategy to
relentlessly pursue resilience and transformation. Indeed, this shift is
essential if we are to minimise the yo-yo syndrome and risk of lost decades
that have befallen our region. For in a world pregnant with volatility and
uncertainty, we can be certain of one thing - the shocks will keep coming;
foremost of which is the climate crisis.
The volatility to which I alluded is easily seen in the ECCU growth
performance by decade (Slide 4):
1983 - 1992: 6.0 percent
1993 - 2002: 2.5 percent
2003 - 2012: 2.3 percent
2013 - 2021: 1.7 percent (the ECCU contracted by almost 17 percent in 2020)
A Call for Collective Action
Tonight, I issue a clarion call for a strong decade of resilience and
transformation - a big push!
What might that look like? Here are four examples: (Slide 5)
Wealth Creation:
At present only 1 in 25 persons or 4 percent of the ECCU population are
invested in the Eastern Caribbean Securities Market. In the USA, the
number invested in the US stock market is almost 3 in 5 or 60 percent. Over
the next decade, we must strive to have at least 1 in 5 persons (20%) invested
in both regional and international capital markets. And let me be clear I am
not speaking of crypto assets.
Food and Nutrition Security
Our region imports about 80 percent of all the food we consume. Meantime,
almost 8 in 10 deaths are from Non-Communicable Diseases (NCDs). As a
critical first step, let us meet the CARICOM target to reduce our food
import bill by 25 percent by 2025.
Energy Security
About 90 percent of our energy needs are powered by fossil fuels which
means only about 10 percent are powered by renewables. As a consequence,
we pay some of the highest electricity rates in the world and are vulnerable
to the volatile oil market. Let us resolve to change that with at least a
tripling of renewables over the next decade. I hope the example of
our Central Bank will be of some inspiration.
Digital Transformation
Estimates indicate that only about 60 percent of our people have broadband
connectivity. The pandemic laid bare the gap between the connected and the
unconnected.
We must accelerate our work to build out a digital economy. That process
starts with ensuring that high speed broadband connectivity is accessible,
affordable and reliable. It also necessitates the development of a wide range
of digital skills to secure the new and emerging jobs.
After all, the future is digital and that future is now. Our children and our
region must not be left behind.
Ultimately, our big push should aim to double per capita income in the
ECCU over the next decade.
The foregoing imperatives are critical even as our Central Bank, inter alia,
discharges its mandates in respect of monetary stability, financial stability
and payments modernisation as per the ECCB Agreement and our strategic
plan.
Are you ready for this big push?
Are you all in?
Conclusion
Without doubt, the ECCB has ennobled our Caribbean civilisation.
As we set our sights on the fifth decade, let us press forward with an
unbridled sense of imagination, determination and collective action.
Let us be ambitious, bold and courageous.
I now conclude with my oft repeated declaration:
"As a region, we cannot change our history, we cannot change our
geography but collectively we can elevate our development
trajectory through innovation and collective action".
I thank you.
References:
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ECCU's Foreign Reserves
(in EC $m)
6,000
$5,044
5,000
Dollars
4,000
EC
of
3,000
2,000
Millions
$148
1,000
In
-
1983 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 2020
Source: ECCB
1/23/2023 1
Transforming The ECCU Together
Commercial Bank Deposits in the ECCU (in EC $m)
25,000
20,000
15,000
10,000
5,000
-
1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022
Total Demand Deposits Total Savings Deposits Total Time Deposits
Transforming The ECCU Together
ECCU and US Per capita Income (1983 to 2022)
Sources: ECCB and https://fred.stlouisfed.org. Note: 2022 US data as at September 2022
Target 5%
Source: ECCB
Key Strategic Imperatives
1.
Wealth Creation
2. Food and Nutrition Security
3. Energy Security
4. Digital Transformation