Sustainable Economic Development Plan 2012/13 - St Helena

Sustainable Economic Development Plan P a g e | 4
Saint Helena’s SDP is the island’s highest level planning document. It sets out the strategic vision for
the island over the next ten years. It outlines how over the next ten years the island will have an
unparalleled opportunity to improve standards of living and the island should strive for:
“Strengthened community and family life through vibrant economic growth, a healthy
environment and with opportunities for all to participate, within a framework of effective
government and law.”
In order to achieve this, three National Goals have been set:
1. A vibrant economy providing opportunities for all to participate
2. Strong community and family life
3. Effective management of the environment
Vibrant economic growth with opportunities for all to participate is highlighted as the key to
achieving the vision of strengthened community and family life. Within this, developing the
private sector is viewed as the vital ingredient. Furthermore, the tourism sector – through large
scale investment – is seen as critical to developing the private sector.
Therefore, an Sustainable Economic Development Plan is needed to implement National Goal 1
of the SDP.
Memorandum of Understanding (“MOU”)
In July 2010 SHG and DFID signed a MOU. In it DFID agreed to fund the airport on Saint Helena
providing four conditions were met. Three of those conditions were related to technical aspects of
the airport. The fourth condition, however, requires SHG to:
“Implement the reforms needed to open the island’s economy to inward investment and increased
tourism” 4 .
As such, the fourth MOU condition and Goal 1 of the SDP align and support each other, both
recognising that it is growth in the private sector that will stimulate improvements in the standard of
living on Saint Helena, provide the basis to reverse recent social and economic decline and put the
island on a new path to prosperity.
This Sustainable Economic Development Plan is designed to build on recent reforms, in areas such
as:
Tourism: Recognising that Tourism will be the key driver of economic growth, a Tourism
Development Project and a five year Tourism Strategic Plan have been introduced. The latter
document sets out in detail how Saint Helena will develop its “high value low volume” tourism
product and how the island will “maximise the visitor experience and develop a desirable,
sustainable tourist destination”. This includes details of the approach to branding, products,
standards, to the environment and heritage, infrastructure and the labour market. The SEDP has
built on this by outlining a plan to developing an economy which can support this type of tourism.
Investment: With investment critically important for maximising the benefits arising from air access,
a revised Investment Policy was introduced, which aims to remove barriers, promote investment
and improve fairness, transparency and consistency in decision making.
The Policy sets out five basic principles. Saint Helena must step up efforts to achieve all of these
principles and the SEDP aims to support it in doing to. The principles are:
Make Saint Helena a desirable and competitive destination to do business by removing
barriers to investment.
Consultations with stakeholders suggest that this is a key issue on Saint Helena. Barriers to
investment can mean that some investments don’t take place, or that the benefits of them are not
4 MOU on Condition 4, December 2010, SHG & DFID
Saint Helena a tourism driven economy: Small Footprint, Huge Step Forward