Small States can reduce red tape to attract foreign investment
7 September 2004
Despite their vulnerabilities, small states can have an edge over larger states in promoting trade and investment by cutting red tape, said Commonwealth Secretary-General Don McKinnon.
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| Don McKinnon with Mrs Eloise Gonsalves. |
The Secretary-General said: "Small countries have a greater ability to cut red tape than big countries. We believe you can have a comparative advantage because you are more capable of speeding up processes in your bureaucratic structures."
Mr McKinnon noted that the majority of Commonwealth countries are small states. These countries are vulnerable in a number of areas, including global trade.
"Wherever we can, we help our member countries benefit from the opportunities of globalisation. But globalisation has become a tough master. The opportunities are there, but many countries miss out, especially when they are up against large tariff barriers and rich countries' trade subsidies."
The Secretary-General said that small states face many challenges in the areas of international trade and investment.
"The international community is becoming increasingly competitive. We work with many of our members to help them renew their business environment so they are in a better position to attract foreign investment."
St Vincent and the Grenadines is keen to attract investment capital, international business linkages, technology and skilled manpower by promoting foreign direct investment. Prime Minister Ralph Gonsalves of St Vincent and the Grenadines said this in a message delivered on his behalf by Mrs Eloise Gonsalves.
Prime Minister Gonsalves stated that his country needs the support of regional and international investors to diversify and transform the economy. His country, he said, has a stable currency, low inflation, balanced economic growth and fiscal prudence.
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