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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.