Policy Options & Examples for Diversified & Resilient Livelihoods Keeley Holder July 3 rd, 2013 Building Economic Resilience through Agriculture & Trade

The BIG Question? How do we as SIDS each develop a macro-economic growth strategy that can be adaptable & responsive to the ever changing global environment?

POLICY DECISION 1 Export goods

5 Reasons to Export Goods 1.Goods producing sector & services sector are inseparable & complementary. 2.Inter-sectoral relationship between goods & services generally show asymmetrical dependence. 3.Goods producing sector has a greater multiplier effect than services. 4.Exporting builds trust & cooperation in small populations. volume 5.Exporting volume reduces the cost of inputs & makes export products more competitive.

Example: Goods-Exporting SIDS Singapore Malta What else do they have in common?

POLICY DECISION 2 Increase goods competitiveness by becoming a trans-shipment point

What’s Shaping Global Trade? C i r c u m - H e m i s p h e r i c C i r c u l a t i o n  Strait of Malacca (Singapore)  Strait of Gibraltar & Suez Canal (Malta)  Panama Canal (Caribbean)

POLICY DECISION 3 Develop a “smart agriculture” strategy “New generation of agriculture that is heavily dependent on information and communication technologies (ICTs), knowledge management, mechanisation & skilled professionals.”

Why SMART Agriculture? Singapore & Malta closer to commercial centres & large landmasses, food security is not as big an issue; most Caribbean SIDS not as close. Most Caribbean SIDS not trans-shipment hubs. Many Caribbean SIDS have competitive advantages in agriculture that can be easily maximised. Agriculture can put quick wins on table in recession. Health & Wellness MEGA Trend Health & Wellness MEGA Trend.

Smart Agriculture: The Macro Level 1.Separation of commercial growers from backyard gardeners/subsistence farmers (e.g. Brazil). Provide policies, framework & infrastructure for both to thrive

Smart Agriculture: The Macro Level 2.Select 2/3 higher-value products based on competitive advantage, (e.g. Grenada nutmeg, cocoa), do them well Today’s business: market segmentation, niche marketing → practice price discrimination, enhance opportunities for growth & retain customers Shopping is an EXPERIENCE What do consumers VALUE?

80% saturated 2.Export volume, target: domestic market 80% saturated Smart Agriculture: The Macro Level

competitive 3.Use export products to build competitive agro- processing industries abundant supply low costAssures processors abundant supply of low cost raw materials Make sure you’ve worked out kinks in agricultural production first! Smart Agriculture: The Macro Level