Economy - Belize's current state

Belize’s Economic Growth and Development

As defined by Wikipedia, “Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product or GDP”. In other words, in a less complex term, economic development is simply a measurement of countries GDP sometime refer to as national output or GNI, however this does not tells us anything about the actual well being of the people in the country. This is where the Economic development plays an important role of a county. Economic development is a measurement that focuses on the welfare of the people of a county. Similarly stated by Wikipedia, “Economic development is the process by which a nation improves the economic, political, and social well-being of its people”. As it is important to not only look at the monetary or economy of a county but other indicator such as education, health, social values and living standards of its people.  

                 Looking at the Economic growth and development of our county Belize, it is safe to say that Belize need to accelerate its economic growth.  “CDB says Belize’s Economic growth below regional average”, sited from a news articles dates Wed. Feb 7^th, 2018. From 2000 – 2017, our country GDP has decrease drastically to 2.1% from that of 10.5% growth rate; which has been provided by SIB.  Of the last report given by statician of SIB from July – September 2017 Belize’s economy saw a 0.5% increase in all overall level of production when compared to the same period of that of 2016. In CDB release, the Bank’s president and Chief Economist stated that the region’s performance as a whole was far from stellar and Belize’s economy with .5% growth was bringing up the rear which is just about the regional average. This clearly shows the potential we have as a country, but there are many factors that contribute to our country not being able to grow systematically. Some of the factors are access to finance, corruption, tax rates, transportation, customs and trade, business licensing etc.

                     In December of 2017 import is at $167.2Million and export $15.7M. In doing the difference that’s a huge gap for a county like Belize. Our export might never increase our import but there’s a lot of improvement to increase export production and lower import. In the agricultural sector Belize economy depends on citrus, banana and sugar cane for export among other locally grown products such as onions, potatoes, corn, beans, rice and other type of vegetation. Many may argue that our citrus industry is declining and having face with citrus greening but that’s where our government should be looking for alternative crop. One other product that we clearly can see is a money market value is the cocoa industry. 

The most suitable areas for cocoa production are here in the south, especially in Toledo district. Within Punta Gorda itself we have approximately, 6 operational cocoa companies manage and operated by both local and foreigners. Most of these companies as newly operational, the only longest standing is the Toledo Cacao Growers Association better known as TCGA. Of all the 6 companies it is estimated that after the sale and shipping of cacao they round up roughly about $100,000 annually. That’s on the production of about 50 tons of cocoa. Belize’s production and export of cocoa remains at a fraction of its potential. There are potential for growth but from the government side there has been little or no support. Belize’s cocoa production is actually below one, this is clearly indicative of the industry not being able to tap on the economy of our country.  Let’s say we focus on value added products, still focusing on the cocoa industry, we could get an even higher market value. Then seize the import of chocolate bars such as snickers, kisses etc. having the country supporting our local. Belize’s cocoa is of high quality with desirable flavours; consequently, it commands a high price on world markets. Moreover, the price is supplemented by premiums for organic production methods and Fair Trade certifications. International demand for Belizean cocoa considerably exceeds the country’s production due to lack of support from government which  indicate that production is constrained by supply, which should not be since we have the land and man power to increase production. Now, if  Belizean  do not take advantage this industry foreigners will.   

  Now looking at the point of decreasing import we can do so by supporting local farmers. Of recent, potatoes and onion farmers called out for protection from the government to seize from giving out special permits to import these produce which is already available and could be sold within Belize on the local market.  These producers are from San Carlos village in the north, where there about 35 families that produce countless bushels of potatoes and bunches of onions. It was report that last year many of their crops was left in the field to rotten, which could have been avoided but our minister and CEO in the ministry failed to do their due diligences and issue special permit which allowed imports of these produce. Looking at this year 2018 it is estimates that a total of 3.7 million pound of potatoes will be harvested and available on the local market by the first week of February and I am hoping the MOA as was said in a press release dated January 24^th 2018, will seize special permit in order to give farmers the opportunity to sell their produce.  More export of Belize’s products means more income for the country. Another product that is of high demand is Belizean beef. As was reported on Friday February 2, 2018 Mexico wants Belizean Beef.  As stated by H.E Carlos Quesnel - Mexican Ambassador to Belize, “We need your meat; we have a huge market there. We import meat from other countries, so we are not against bringing meat from Belize on the contrary we need the meat from Belize and we would like the meat form Belize”.  But what is stopping us from export this product? As we all know many Belizean travels to Chetumal annually and spend tens of thousands of dollars especially around the Christmas season. So why not vice versa when it comes to trade? It was made aware that out trade agreement is the barrier to having Belizean export to Mexico and the subject of a partial scope trade agreement that's been on the negotiating table for many years. What is taking our government so long in resolving this issue? I am talking about present and past government. Why is it that we cannot set up something similar to that of the CSME?                                                                               
         CSME is a single enlarged economic space agreement which allows for the free trade of goods, services, person, capital and technology among the participating CSME Member States, including Belize. The CSME is an essential element of integration in the Caribbean Communities. It is intended to benefit the people of the region by providing more and better opportunities.  I can elaborate on example of the other factor; however I will leave that for further class discussion. 

Moving on to Belize’s Development we have seen a lot of changes both physically and as a people, nevertheless, there is still room for improvement in respective categories. When we look at infrastructure for the country of Belize we are doing pretty well. Many may argue why money is spend on roads and infrastructure but if they may know, tourism is our number one source of income and in order for us to have the numbers of tourist increase we need our country to look attractable and welcoming. Our government has shown focus on our education system. There are many contribution on their part in terms of the subsistence that have been given to 1 and 2^nd form students as well as in the infrastructure of new building and classroom with in the country, from North to South. On the health care system, there has been and still existing is the implementation of NHI. Many of us have access this system and benefited.

When we look at the employment rate of the country, information release from the last SIB labour force survey conducted in September 2017, the national unemployment rate for that month was 9.7%, which is a decline of 1.4% from that of 11.1% in September 2016. Two categories that have a negative impact on our country are Crime and teenage pregnancy. In fact, Belize has been listed as one of the deadliest countries in the world, based on the number of murders which occurs in this very small population of almost 390,000 people. In a press release dated December 29, 2017 Police Commissioner Allen Whylie told the media, and I quote, “Well, we had an upsurge in terms of gang rivalry, as well as inter-gang rivalry fuelled by the fight over turf for the sale of drugs.” Mr. Whylie believes the majority of the incidents were gang-related. 

In conclusion Belize is a very diverse country and is rich in terms of heritage, culture, resources, etc. Everyone has a part to play, and our political leaders are the ones to ensure that as a country we are growing, both in Development and Economically. 

Reference: 

Belize Electricity Limited (n.d.). BEL annual report. Retrieved from: http://www.bel.com.bz/annual_reports.aspx

Channel 7news. (2018) Potato and onion farmers call out for protection. Retrieved from:

http://www.7newsbelize.com/sstory.php?nid=43598&frmsrch=1

Chenery, H. and A. Strout. (1966). Foreign Assistance and Economic Development.    American  Economic Review. 

Government of Belize. (2010). Country Poverty Assessment 2009. Belmopan, Belize: Retrieved from:  http://www.7newsbelize.com/sstory.php?nid=43640&frmsrch=1

Statistical Institute of Belize (n.d.) Belize’s high murder rate should not remain status. Retrieved from: http://sib.org.bz/