1. Kick-off training seminar Brussels, 4-6 November 2014
Innovation & A Green Economy in Anguilla- An Opportunity for Growth and Development
Presented by: Sherma O Hodge
Good Morning, This morning I’ll present to you on Anguilla’s position in innovation and a green economy and our need for such interventions.

2. ANGUILLA Location: Most northerly of the Leeward Islands
Size: 35 square miles
Population (2011): 13,037
GDP (2013): EC$ mil
EEZ: 200 NM
A bit of information on Anguilla

3. Economic Development- Key Issues
Limited economic growth
Over dependence on luxury tourism
Need to diversify the economy
Limited access to capital- Public and Private sectors
Declining FDI
The economy of Anguilla was in decline from Preliminary statistics indicate minimal growth of less than 0.50 per cent for Projections for the next 3 years.
Main Economic Sectors
Tourism
Real Estate, Renting & Business Activities
Public Administration, Defence & Compulsory Social Security
The development of Anguilla is closely linked to tourism. Anguilla is very dependent on tourism, which directly accounts for almost 25 per cent of economic activity. A decline in the tourism sector negatively impacts other sectors due to the linkages that exists. All other sectors in one way or another are connected to tourism.
Recognising the impacts of this mono economy, efforts were made to diversify the economy through financial services. The performance of this sector has been far less than expected. With the recent initiative of the US government and other territories the sector is not expected to pick up with its current offerings. There diversification opportunities in the fisheries sector and through the greening the economy ideology new innovative ideas can be developed.
Limited access to capital due to a crisis in the banking sector. Additionally, institutions like the Anguilla Development Board, is finding difficulty accessing resources to on lend for SME development and business start ups.
Government’s fiscal situation and access to capital is limiting investment in key infrastructure that is necessary to facilitate economic growth. Example road development, air and sea port development, investment in health and education infrastructure.
As a small open economy that is dependent on tourism and foreign direct investment, economic activity is dictated by the events in main source markets such as the US. The wall street crash and economic decline that followed led to a decline in Foreign Direct Investment (FDI), especially in the tourism related construction. Locally, this led to the closure of and delays in completion of major projects. To date several projects cannot begin due to the lack of investment. While smaller investments are coming in slowly, the impact is minimal at this time.

4. Innovation Stakeholders
Government
Ministry & Department of Education
STEM
CAPE Entrepreneurship Course
Get Set Programme
SME Development Project
Financial Institutions
Anguilla’s Innovation and Green Economy Stakeholders:
Government does not currently have a holistic strategy that focuses on innovation and green economy. There are departments that are implementing projects where innovation is a component but not necessarily the focus. Government also offers concessions to business owners that qualify but it is on a case by case basis.
The Ministry & department of Education- recognises the need and importance of innovation in education and the development of a country. To date emphasis has been placed on improving numeracy as math is believed to be the foundation for innovation. The high school has an annual science and technology fair where students show case their talents. The next step is to develop a Science, Technology, Engineering and Mathematics (STEM) programme. The Caribbean Advanced Proficiency Examination (CAPE) has introduced an entrepreneurship course that places emphasis on the individual’s acumen to realize opportunity, assess risk, and apply the skills necessary to transform innovative ideas into viable, sustainable ventures. This course is available in Anguilla.
The Department of Youth and Culture Get set Programme is a youth entrepreneurial programme that focuses on youth development in SMEs. Assistance includes training in development of business plans, financial projections, good business practices. A one off contribution of EC$28,000 is offered to successful applicants. While innovation is not a current focus, given the youth target growth it is very much a component. Innovation is being discussed and will be a focus moving forward in 2015.
SME- The overall objective of the SME project in the OCTs is to contribute to the economic diversification and prosperity of the OCTs by improving competitiveness through innovation. It is anticipated that the Anguilla Chamber of Commerce and Industry will benefit from capacity building efforts through this project. The lessons learnt will then be passed on businesses to help build their own capacity in these areas.
Financial |Institutions - Each commercial bank has a SME unit within its structure. However, the rates being offered are on a commercial basis and strict borrowing requirements that currently exist excludes many SMEs from qualifying for loans. A mechanism will be required to offer lower rates to SMEs. The Development board offers assistance to individuals and small businesses that cannot access traditional sources of financing. However, the Development board cannot adequately fulfil its mandate to assist these businesses until additional sources of financing are located.

5. Opportunities for Innovation
Tourism
Fisheries
Agriculture
Technology Development
Education
Our opportunities for Innovation and a Green Economy is:
Recognising the importance of innovation and greening the economy in moving countries forward, locally there has to be a national conversation about and a holistic approach to innovation and a green economy. Innovation will be necessary to spur economic growth and improve competitiveness. The most recent recession has literally forced countries, especially small countries to look at ways to get out of the down turn. Business as usual would not be enough. It requires new ideas and new processes for achieving whatever the goal is.
Opportunities for innovation and a green economy exists in all sectors of the economy. Areas include tourism, fisheries, agriculture, technology and education. Wherever there is a business opportunity, an idea, there is potential for innovation. Within education emphasis has to be placed on STEM as the backbone of innovation and economic development.
The range of possibilities have not been fully explored but it is anticipated that through this project greater emphasis will be placed on innovation, its necessity and the benefits that accrue to society as a result.

6. THE END
Thank You!