52 First National Report | <strong>Curaçao</strong> <strong>and</strong> <strong>Sint</strong> <strong>Maarten</strong> Millennium Development Goals | 2011 Report
Goal 1: Eradicate extreme poverty <strong>and</strong> hunger Netherl<strong>and</strong>s Antilles perspective Quote: “Let me consider the status of poverty in our society. It is true that we have a nation unemployment rate of over 15% <strong>and</strong> that more than one third of our youngsters are without a decent job. On the other h<strong>and</strong>, our per capita income is more than US$15,000 per year. One can draw the conclusion that although there is enough wealth in our country, some segments of society have limited access to it. Nevertheless, it’s obvious that poverty in the Netherl<strong>and</strong>s Antilles is not absolute. Practically everybody has access to fresh drinking water, food, healthcare <strong>and</strong> shelter. In that sense we are much better off than some of our neighbors where large numbers of people live in the most squalid conditions. In the suburbs of some Latin-American cities or in many remote <strong>and</strong> poorly developed rural areas, people really have to cope on a daily basis with situations that might make the difference between life <strong>and</strong> death. Even in our Caribbean region there are countries with a GDP per capita of less than one third of ours. In this comparison helpful? Comparing ourselves to countries in the region will lead to the conclusion that we aren’t doing badly at all. But is that what we want? Is that satisfactory? Can we afford to lean back, is it ok to continue as before <strong>and</strong> wish for nothing better than to sit back <strong>and</strong> enjoy life under the tree? I know you will agree with me that that is not enough. ……” (Source: 2nd Summit on Poverty Alleviation Key Note Address by: The Governor of the former Netherl<strong>and</strong>s Antilles Mr. Frits Goedgedrag, 2005). <strong>Curaçao</strong> The process of capital accumulation in <strong>Curaçao</strong> is dependent on major trading partnerships with Venezuela, the U.S <strong>and</strong> the Netherl<strong>and</strong>s. With the global financial crisis of 2008 <strong>and</strong> its impact on the housing <strong>and</strong> credit market sectors in the U.S. with spillovers to European markets, the result is reduced tourism. According to the 2009 Annual Report of the Central Bank of the Netherl<strong>and</strong>s Antilles, <strong>Curaçao</strong>’s tourism shrank by 8.9%, contrasting sharply with a 34.1% growth in 2008. All markets posted a drop, except for the European market, which was supported largely by Dutch visitors. The overall weak tourism performance was due mainly to decreases in the North American <strong>and</strong> South American markets. Following a buoyant performance in the last two years, the number of Venezuelan travelers fell sharply in 2009. The number of Venezuelan visitors comprised 2.5% of the decrease in <strong>Curaçao</strong>’s tourism. A combination of other factors including volatile oil prices, increases in food prices, appreciation of the Euro against the dollar, rapid growth of money supply in China <strong>and</strong> India, resulted in reduced foreign exchange generation, foreign investment flows <strong>and</strong> remittances. The Central Bank report further shows that hotel occupancy rates dropped by 10.2 percentage points from 2008 to 74.8% in 2009. Inflation rose from 3% in 2007 to 6.9% in 2008, prompting a slowdown in the GDP growth of 3.5% in 2007 to 2.2% in 2008 (<strong>Curaçao</strong> Economic Outlook 2010). This substantial growth in tourism led to a rise in consumption of 8%, in turn spurning a boost to the trade, hotel <strong>and</strong> restaurant sectors recording a 12% growth <strong>and</strong> a real investment of 9% measured in terms of gravel <strong>and</strong> cement sold over this period (a 2.8% increase from the previous year 2006). The structure of investment improved for the vulnerable, particularly young people, resulting in reduction of youth unemployment in <strong>Curaçao</strong> from 37.8% in 2006 to 26.3% in 2008 <strong>and</strong> to 24.7% in 2009 according to the Labor Force Survey of <strong>Curaçao</strong>. Specifically, construction activity, a major contributor to capital formation <strong>and</strong> a significant employer of the poor <strong>and</strong> vulnerable, registered an increase of real investments by more than 4% due to the construction of major hotel chains in <strong>Curaçao</strong>. Corresponding to the other sectors, transport <strong>and</strong> telecommunications recorded an increment in turnover of 2%, health 3% <strong>and</strong> the financial sector 3.5%. First National Report | <strong>Curaçao</strong> <strong>and</strong> <strong>Sint</strong> <strong>Maarten</strong> Millennium Development Goals | 2011 Report 53