National Economic and Investment Forum starts today
March 12, 2024 10:10 pm | Posted in Business News | Share now TwitterFacebook
By Ezra Toara & Kizzy Kalsakau.
The highly anticipated National Economic and Investment Forum for 2024 will take place this week, starting today on Tuesday, 12th, and continuing until Wednesday, 13th of March.
This important event aims to develop a comprehensive national vision to navigate economic stability and growth, addressing various challenges posed by the current global climate.
Leading this discussion is Mr. Howard Aru, the General Manager (GM) of the Vanuatu Chamber of Commerce and Industry (VCCI).
GM Aru reflected on economic strategies, tracing back 26 years to a time when the prevailing approach advocated for private-sector-led growth.
The focus then was on allowing the private sector to serve as the main engine driving progress in the nation. Aru notes this enduring trend, not only in Vanuatu but also across Pacific Island nations and worldwide.
The GM stressed the importance for dialogue between Government and the private sector in navigating the complexities of the business world, particularly the weight of the government listening attentively, given its role in shaping policies that can either support progress or hinder growth.
Aru warned against harmful actions, emphasising that harming the private sector would ultimately hurt the nation’s finances, including tax revenue, Valued Added Tax (VAT), duties, and other essential financial aspects.
He acknowledged that Vanuatu achieved a major milestone in December 2020 by transitioning from a Least Developed Country (LDC) to a developing country.
Mr. Aru explained that this transition requires the nation to become economically self-reliant.
As development assistance diminishes, there’s a need for Vanuatu to foster an environment conducive to private sector growth to sustain economic development.
Aru argued that reforms are essential to support economic expansion by nurturing the private sector, which he sees as the key driver of policies for growth and development.
According to the VCCI GM, policymaking should involve collaboration, with the government consulting extensively with the private sector.
He acknowledged recent instances where government policy formulation mistakes required corrective consultations with the private sector.
Director of Economics and Research at Pacific Consulting Limited (Ltd), Peter Judge, shared insights from a recent report generated by their team.
The report, based on 152 interviews with various businesses in Vanuatu, explores the challenges the private sector face during the ongoing impact of COVID-19.
Mr. Judge explained the varied methodology used, including extensive interviews conducted across the archipelago from the provinces of TORBA to TAFEA.
While most interviews were in populous areas like Efate Port Vila, Santo, and Tanna, efforts were made to capture the national sentiment.
Business sentiments, as revealed in these interviews, show the resilience of many enterprises amid the ongoing pandemic.
Despite initial uncertainties and struggles, there is optimism as businesses have seen an uptick in economic activity.
The injection of money into the economy has aided recovery, but challenges such as the high cost of doing business and an inflation rate of approximately 14% persist. Businesses are grappling with decisions on whether to increase prices or improve profit margins.
The report points out the importance of thoughtful policymaking that considers economic realities and the goals of the private sector.
