KEEPING AN EYE ON THE PEOPLE’S BUSINESS
Written by WE THE PEOPLE on July 31, 2017
THE GRENADA CO-OPERATIVE NUTMEG ASSOCIATION AND THE STRUCTURAL ADJUSTMENT PROGRAMME
1. Liberalization of Cocoa and Nutmeg Sectors:In its Memorandum of Economic and Financial Policies annexed to the Letter of Intent of June 12th, 2014 through which Grenada entered into an agreement with the IMF, Grenada committed “to liberalize certain sectors to boost private sector participation and expand capacity.” Among those sectors identified for liberalization were the nutmeg and cocoa sectors: – “the Government will support the liberalization of the nutmeg and cocoa sectors, so as to encourage increased efficiency, and boost farmers’ incomes. This was categorized as a measure intended to “boost growth and social protection”
2. Liberalizing Slightly the Monopoly of the GCNA and the GCA: The report of the IMF sixth, end of programme review noted as follows:“………… The authorities are taking steps to boost private sector participation and capacity in agriculture, including commercializing remaining estates… and passing amendments to liberalize slightly the monopoly marketing boards for nutmeg and cocoa. Staff encourages the government to continue in that direction and, based on past production volumes, notes that deeper reforms are needed to promote investment and employment in this sector.”
3. Progress re “Growth Boosting Structural Reforms:The first review of December 2014 , reported on progress in respect of “growth boosting structural reforms” re the liberalization of the nutmeg and cocoa sectors. The following was reported: –
3.1 Modernizing Nutmeg and Cocoa Sector: • Enhance the investment environment, competitiveness and productivity: With the support of a Compete Caribbean Project, Grenada was working to “modernize” the sectors to “enhance the investment environment, competitiveness and productivity” of the sectors.• Reforming the 1947 Nutmeg Industry Act: Efforts would focus on “reforming the 1947 legal and administrative framework” governing the sectors to strengthen their governance and institutional capacity, and introduce export quality standards for the sectors.
3.1.1. Compete Caribbean Project: Strengthening Export Competitiveness in the Grenada Agriculture SectorThe Terms of Reference circulated for a Consultancy to develop Legal Drafts of Reforms re Legislation/Regulations to Strengthen Cooperative Association Governance and Institutional Capacity for the GCA, GCNA and the Minor Spices Association noted the following in its background: GCNA SAP