Download 28th SMALL BRANCHES CONFERENCE

29th SMALL BRANCHES CONFERENCE
Arusha, Tanzania – 30th September 2009
1st Plenary Session – Policy Responses to the Global Financial Crisis in
Small Economies
BRIEF SUMMARY
Chairperson: Senator Mrs. Carol A.M. Bassett, JP, President of the Senate, Bermuda
Discussion Leaders: Connétable Len Norman, Jersey
Dr. the Hon. D. Orlando Smith, OBE, MHA, British Virgin Islands
Rapporteur
Michael de la Haye, Jersey
Delegates attending the 29th Small Branches Conference agreed that the global financial
crisis had affected all countries represented, albeit in very differing ways as the
economic base of the jurisdictions represented was extremely varied. The 2 Discussion
Leaders, Connétable Len Norman (Jersey) and Dr. the Hon. D. Orlando Smith, OBE,
MHA (British Virgin Islands) summarised how the downturn had affected their respective
jurisdictions and what response government had made.
Several small jurisdictions at the conference explained how economic stimulus
programmes had been put in place to respond to the global financial crisis for matters
such as infrastructure improvement, aid to the tourism industry or assistance to banks.
Some of these had been possible because funds had been set aside during periods of
economic prosperity so that money was available in any downturn. The stimulus
programmes varied according to the jurisdictions represented but were all designed to
create employment and stimulate the economy while waiting for a global economic
recovery. Delegates nevertheless agreed that it was essential that any such stimulus
packages should be carefully targeted, timely and temporary to ensure that they did not
create long term revenue costs which would have to be met on an on-going basis or
simply increase dependence on imported labour in countries where relevant expertise
was not available to undertake the project chosen.
It was recognised during the Session that many small branches represented were
extremely vulnerable to matters outside their control such as international commodity
prices for their exports or the price of imported goods such as fuel. It was therefore
important for countries to work together through the downturn and smaller jurisdictions
looked for support and assistance from larger nations.
Many delegates pointed out that it was important for government and the private sector
to work closely together through the downturn and examples of this included assistance
given to the private sector to improve the infrastructure of the tourism industry. It was
also recognised by delegates that large multi-national companies might use the
downturn as an unjustified excuse for increasing prices of goods for sale or reducing the
price of goods purchased for commodities such as milk thereby impacting greatly on the
economies of small states.