Caribbean & Central America - October 2012 (ISSN 1741-4458)

 *** POLITICAL TURMOIL IN CURAÇAO. The former Dutch colony, Curaçao, (pop. 145,619), is experiencing considerable turmoil ahead of parliamentary elections scheduled for 19 October. The problems escalated when Prime Minister Gerrit Schotte resigned and dissolved the 21-member unicameral legislature on 3 August after the ruling coalition, comprising the Movementu Futuro Kòrsou (MFK), Pueblo Soberano (PS) and Partido Movishon Antia Nobo (MAN) lost its majority. Subsequently, Schotte faced allegations from the majority in parliament that he was continuing to start new projects and misuse public funds. The majority called for Governor Frits Goedgedrag to appoint an interim government.

On 29 September, acting governor Adeel van der Pluijm-Vrede duly swore in a new administration to replace Schotte’s under the interim leadership of Stanley Betrian. Schotte responded by calling the move a “coup”, adding that “there is some hidden agenda to stop the election or manipulate the election”. Schotte is planning to run in the election as leader of the MFK.

The background to the turmoil is Curaçao’s budget deficit, which is set to triple from NAf.130m (US$73m) in 2012 to NAf.420m (US$235m) in 2014. The Dutch Kingdom Council of Ministers (Landsadvocaat - the executive council of the Kingdom of the Netherlands, which comprises representatives from Aruba, Curaçao, the Netherlands, and St Maarten) and the financial supervision agency (CFT) warned that Curaçao is heading for bankruptcy by 2013 if no measures are taken”. Curaçao became an autonomous county within the Kingdom of the Netherlands in October 2010 following a referendum [RC-10-10].

*** GRENADA’S NDC CONTINUES TO STRUGGLE. Grenada’s ruling National Democratic Congress (NDC) confirmed the dire state of the party by expelling its general secretary and a number of other senior members on 30 September during its postponed annual party convention.

Peter David, the outgoing general secretary, has been at odds with the NDC leadership for some time, resigning as tourism minister in April and announcing at the beginning of September that he would not be seeking re-election to the party’s executive. Others expelled included four other former cabinet ministers.

Prime Minister Tillman Thomas has faced two no-confidence motions in parliament in three months, with the latest one tabled by former NDC cabinet minister, Karl Hood. This led Thomas to ask the governor-general to prorogue parliament in order to avoid the vote. Three days later, on 20 September, Thomas then lost another cabinet minister with the resignation of Environment Minister Glynis Roberts.

The NDC came to power in 2008, with a landslide 11-4 seats victory over the New National Party (NNP), which had ruled Grenada for 13 years. An election must be held next year, but once a new session of parliament is called, a no-confidence motion may again be tabled, leading to an early election.

• IMF positive about Suriname

On 7 September, the International Monetary Fund (IMF) completed an Article IV consultation with Suriname, concluding that economic activity remains strong and inflation pressures have abated. GDP growth in 2011 is said to have been 4.5%, up from 4% in 2010. The main driver has been “robust activity” in the oil and gold sectors along with public investment. Inflation has been driven by a 20% devaluation in January 2011 and increases in domestic fuel taxes. This led to a spike in annual inflation at 22.6% in April 2011. Inflation is now down to 4.5% after falling to 3.6% in May 2012. The fiscal balance has also improved, going from a deficit of 3% of GDP in 2010 to an estimated surplus of just under 1%.