Economics Paper

Economics

In no more than 700 words and with the use of proper research, discuss: 1) An issue that is plaguing you in St. Vincent and the Grenadines 2) Who that issue directly affects 3) Your proposal to the government if you were to make one.

Done by: Raeisa Byron-Cox
Form: 4 Integrated
Subject: Economics
Presented to: Mrs. De-Roche John
Date: 11-09-12

In my opinion, there are many issues affecting St. Vincent and the Grenadines. The issue however that I have chosen to discuss is, the sudden downturn in the state of this country’s agricultural industry.
As what one would consider a third world country, St. Vincent and the Grenadines is highly dependent on agriculture as a source of food, livelihood and income. As cited by a Wikipedia page (Economy of St. Vincent and the Grenadines) “Bananas alone accounts for upwards of 60% of the work force and 50% of merchandise exports”, this statement is also supported by a quote from The Caricom Regional Transformation Program for Agriculture that states that “St. Vincent and the Grenadines is primarily an agricultural economy with the agriculture sector being the largest productive sector”. The article goes further to say that “Arrowroot, root crops, and marine fishery all make significant contributions to economy, food security and employment”.
With this being said, why has the agricultural industry suddenly taken such a huge downturn? One might argue that, disease, natural disasters and praedial larceny play a vital role in contributing to this. But if this is so, why hasn’t the government placed more emphasis on reviving the agriculture industry if it plays such a tremendous role in the Vincentian society?
According to the ‘Argyle International Airport: Project Update as of 1st June 2012, “The Argyle International Airport is being built at a cost of US $240 million”.
While the Argyle International Airport is an important and ultimately beneficial investment, we must ask ourselves what is the more important of the two in the current state of the economy.
The decline in the agricultural industry in due course is likely to affect every single Vincentian, some more than others. The simple reality of it all is, that whether directly or indirectly, every Vincentian at some point will be affected by this downturn.
Farmers and vendors, whose entire livelihoods depend on the success of the agricultural industry, are directly affected by the decline. Without a successful industry, this populace has no income at all, thus resulting in unpaid bills, being unable to send children to school and financial ruin.
The decline also affects consumers, albeit indirectly.