Seychelles shares successful economic reform experiences at global forums |16 September 2013

Seychelles is once again being hailed as an example of successful economic reforms in small islands states by the international community.

At the invitation of the International Monetary Fund (IMF) and the World Bank, Seychelles' Finance, Trade and Investment Minister Pierre Laporte is giving lectures at two major international forums on economic reforms and challenges in small island economies.

Minister Laporte first took part in a High-level Seminar on Lessons and Experiences of Small Island States in São Tome and Principe from September 10-12. This seminar, which was co-sponsored by the World Bank and the Government of São Tome, covered two main themes – economic diversification and transformation focusing on specific country/sector experiences; and trade and regional integration – with economic vulnerability and resilience as a cross-cutting underpinning.

In his invitation to Minister Laporte, São Tome and Principe Planning and Finance Minister Helio Silva Almeida described Seychelles as “one of the exemplary small islands states which has managed to diversify, grow and transform itself”.

In a similar event, this time under the theme ‘Building Growth into the Caribbean Sustainability Agenda – A Concerted Approach’, Minister Laporte will again be showcasing Seychelles' successful macroeconomic reform experiences at the 2013 High-level Caribbean Forum to be held in the Bahamas from September 19-20. This conference is a result of collaboration between the IMF, the Caribbean Development Group, the Inter-American Development Bank, and the World Bank.
 
In his invitation, IMF deputy managing director Min Zhu expressed his appreciation for Minister Laporte's willingness to share his experience with “Seychelles' return to growth in the wake of exchange rate liberalisation, fiscal adjustment, and debt restructuring”.

Many Caribbean islands have in recent years suffered from low growth and high indebtedness, a trap which these islands continue to struggle to get out of. The latest available data from the IMF shows that in some cases the gross public debt-to-GDP ratio in those islands exceed 100%, including St. Kitts and Nevis (145%) Jamaica (143%), and Grenada (105%).

In 2008, Seychelles found itself in similar territory with a ratio of close to 150%. Successful reforms and debt restructuring has brought Seychelles' ratio to 70% at end-June 2013 and the country remains on course to attaining its target of 50% by 2018.

Minister Laporte said he was pleased to be representing Seychelles on the world stage and hopes that the experience he will share on the topic of sustainable economic growth and reform will help other small island nations to find solutions to their challenges.

“Sharing the experiences of Seychelles as a leader among other small island developing states is a richly rewarding experience, and it is only by working together that we can solve the challenges that face us as island nations,” he said.