Restructured Dutch Caribbean:

New horizons, new opportunities

Key note address by the Prime Minister of the Netherlands Antilles, Mrs. Emily S. de Jongh-Elhage on the occasion of the Annual Dinner of the Chamber of Commerce of Aruba

Oranjestad, Aruba, 1 June 2007

Ladies and Gentlemen,

It is for me a great pleasure to address you on this occasion and I thank you for the invitation.

I am also very pleased that the people of Aruba are interested in the constitutional changes, which are in progress in the Netherlands Antilles. This interest attests to the solidarity, which exists between the Netherlands Antilles and Aruba. Both our countries have expressed their fundamental right to self-determination within the legal framework of the Kingdom of the Netherlands. I trust that, in spite of the development of our constitutional relationship, in the future our relationship will be one of friendship and respect. As you know the ties between our islands are many and they bind us together.

Ladies and Gentlemen,

In order to acquaint you with the process that has been going on in the Netherlands Antilles, allow me to return to the past. This I will do briefly as most of the facts are known or, at least I believe, that most of you have witnessed the events that I will be relating to you.

For a long time Aruba was one of the islands of the Netherlands Antilles. Already in the 1930’s Aruba showed a natural need for emancipation and the realization of the right to self-determination. This need also increased on the other islands, especially in Curaçao and St. Maarten. Eventually the right balance had to be found between the urge towards greater autonomy on the one hand and the explicit desire of the people to maintain a constitutional bond with shared responsibilities on the other hand. Historic and emotional aspects also play a role, as well as the awareness of the undeniable importance of economies scale for the social and economic development of our islands. As a matter a fact this is a trend for many years in our globalized world: while maintaining their independence states are increasingly entering into supranational arrangements with each other.

Ladies and gentlemen, let’s now go back to our history. The Charter of the Kingdom of 1954 sought to establish equilibrium between the further autonomous development of our islands and the maintenance of the constitutional bond. Not for nothing it is written on the monument located on the Rijkseenheid Boulevard in Curaçao: “Supported by one’s own strength, but with the will to assist each other”.

After the signing of the Charter of the Kingdom in 1954 we did our best to convert the Netherlands Antilles into a real country while at the same time acknowledging the differences, which exist between the islands. We tried to strengthen the mutual bond with a policy that did justice to all of the islands and in which the cohesion between the islands could be expressed.

The developments in the process of self-determination of our peoples, to which I just referred, demand a constant reflection on the existing constitutional situation. It became increasingly evident, that the constitutional cohesion in our country that consists of islands, needed to be revised. It was as if this cohesion had to be confirmed and proved time and again. A country comprised of islands with a lot of sea in between them has its own dynamics. That geographical reality cannot be denied. The centrifugal forces were and are still strong. The Caribbean region has lots of these examples. In that sense the Aruban desire for a separate status within the Kingdom fitted well in the portrait of the era.

Each evolution has its counterforce. Initially the other partners of the Kingdom had a different view on the way in which the Aruban aspiration for more autonomy had to be dealt with. In the end everybody agreed with the Aruban wishes. The will of the people had to be respected. On the first of January of 1986 Aruba withdrew from the Netherlands Antilles and entered into a new relationship with the partners of the Kingdom of the Netherlands.

Ladies and Gentlemen,

In those days one of my illustrious predecessors spoke prophetic words: six minus one is zero. He foresaw that when Aruba abandoned the Netherlands Antilles this fact would only fuel the urge, in specifically Curaçao and St. Maarten, for more autonomy. As a consequence the viability of the Netherlands Antilles would be endangered. In the end Mr. Juancho Evertsz was proven to be right.

At the beginning of the 1990’s the political parties in Curaçao tried with combined efforts to acquire a separate status for our island. In 1993 the movement of “Antia Restruktura” came into existence. That movement acknowledged that the existing structure of the Netherlands Antilles did not conform to the requirements of the present age and that our country had to be “restructured”. A balance was sought between the urge for more autonomy and the desire to maintain the constitutional relationship between the islands. A referendum was held first on Curaçao in November 1993, followed by referenda on the other 4 islands in 1994. With an overwhelming majority the people voted to maintain the Netherlands Antilles as a country.

The severe economic slump of the 1990’s as well as the destruction in the Windward Islands, specifically in St. Maarten, brought about by different hurricanes, placed several proposals

- especially the report “Make it work”-, aimed at giving a renewed content to the unity between the islands, on the back burner. The government had other priorities. The momentum for a restructured Netherlands Antilles was lost.

In a new referendum of 2000 the majority of the population of St. Maarten chose for an autonomous status for the island. In 2005 also the people of Curaçao chose for an autonomous status in the Kingdom that would be similar to that of Aruba. Bonaire and Saba chose for direct ties with the Netherlands. Only St. Eustatius wanted the Netherlands Antilles to remain together.

Ladies and Gentlemen,

At first the Netherlands was not in favour of the disintegration of the Netherlands Antilles. The political establishment in The Hague feared that the slivering of the country would lead to uncontrollable effects for the legal order and for the quality of governance. Gradually also in the Netherlands it was understood that the desire for another constitutional relationship could no longer be resisted. The report of the working group, led by Edsel (Pappy) Jesurun, which was entitled “Now is the time, let’s go for it” made it clear that the span of life of the Netherlands Antilles in its current form could no longer be prolonged and that the double administration of island governments and central government had to come to an end. Earlier in 2004 the government’s coalition, headed by the then Prime Minister Etienne Ys had already pronounced itself explicitly in favour of the elimination of the central government. The successive Dutch Ministers Remkes, De Graaf and Pechtold decided, though hesitantly at first, to give effect to that desire.

The report Jesurun was neither in The Hague nor in the Netherlands Antilles enthusiastically embraced by everyone. However its points of departure concerning financial management, law enforcement and the necessarily deemed administrative ability proved to be the guiding principles of the Dutch position. All the parties involved, the Netherlands, the Netherlands Antilles and the five separate islands began swiftly with a long and intensive process of consultation and negotiation. Already on 22 October 2005 the parties signed in Bonaire a so-called “Hoofdlijnenakkoord”. In this document the points of departure concerning finance, the restructuring of debts, security, administrative proceedings and so forth were worked out and the necessary co-operation of the different entities were safeguarded.

Subsequently on 26 November 2005 on Curaçao the start-Round Table Conference was held. An Aruban delegation headed by Prime Minister Oduber also participated in this conference. In the concluding declaration it was agreed that the final outcome for Curaçao and St. Maarten would be the status of a country within the Kingdom. Bonaire, St. Eustatius and Saba could count on a new status with a special nature within the Kingdom.

At the urgent request of the Antillean delegations a separate paragraph on the debt problem was included in the concluding declaration of the start-Round Table Conference. This paragraph reads as follows, and I quote:

“In order to achieve a sound starting position attention will be given to the elimination of the debt. In accordance herewith the Netherlands will offer a solution for the debt problem.”, end of quote. This promise plays an important role in the next phase when the points of departure of the “Hoofdlijnenakkoord” are further worked out.

Ladies and Gentlemen,

In July 2006 when Mr. Nicolaï assumed his post as Minister of Administrative Renewal and Kingdom Relations the process was accelerated. On 10 and 11 October 2006 an agreement was reached with the island territories of Bonaire, Saba and St. Eustatius on a detailed plan for implementing the agreements on the direct ties with the Netherlands. These islands will acquire a status that corresponds with that of a Dutch municipality, but whereby their particular circumstances will be taken into account.

In The Hague on 2 November of last year an agreement was reached on the Final Declaration of the consultation with Curaçao and St. Maarten. In this document the agreements made earlier on among other things the administration of justice, law enforcement and on finances (elimination of the debt and financial control) were further elaborated on.

On 29 November 2006 the Island Council of Curaçao rejected the Final Declaration. This meant that the negotiations and talks with Curaçao were frozen. The Island Council of St. Maarten on the other hand accepted the agreement.

Allow me for a moment to dwell on the Final Declaration. I am one of its signers and would like to explain to you why I signed the document.

In the first place, the Final Declaration will eliminate approximately 80% of the total national debt. The current interest burden of more than 300 million guilders annually will accordingly be reduced to less than 100 million guilders on a yearly basis. Consequently the budgets of the Netherlands Antilles and Curaçao will be able to develop a surplus, which will clear the way for real governmental policy. The rate of interest will decrease because the government will borrow less on the capital market. This will stimulate the buying power of citizens and will lead to more investments. This elimination of the majority of the debt will occur on the condition that the Netherlands, the Netherlands Antilles and the Island Territories together will see to it that the different entities have balanced budgets and that loans remain within the agreed limits. This condition was inserted in order to prevent a future repetition of the current financial situation. Tell me, do you believe this to be an unreasonable condition?

In second place, apart from the elimination of the debt the Netherlands will make more money available for poverty eradication, for the stimulation of economic projects, for the improvement of education, and so forth. We are speaking of a few hundred million guilders, which will be made available above the regular development funds. These funds are a welcome and much needed extra investment in the social and economic fields.

Thirdly, extra investments in security and the combating of crime will be made in the framework of the Security Plan, which already is in execution. In a short time this plan has clearly resulted in a noteworthy reduction of crime in the Netherlands Antilles.

Fourthly, the collaboration between the Kingdom partners is aimed at strengthening the financial and judicial apparatus as well as the civil service. The new countries and entities must have at their disposal a well-trained and effective civil service, which can support adequately the executive branch. Citizens must receive value for their tax money.

Ladies and Gentlemen,

Who would want to withhold such benefits from their citizens? Who would want to take away a better future from their citizens? Aren’t we in the end concerned with the welfare of our people?

Let’s now go back to the present state of affairs, whereby, hopefully not for long, Curaçao sits in the waiting room.

With the other islands the process has been continuing energetically. On 12 February of this year in St. Maarten concrete agreements were made, whereby the Netherlands committed over 1 billion Antillean guilders to be divided among the four islands and the central government. The money is destined for the elimination of debt, the elimination of the backlog in payments and for investments in the economy.

Specifically the position of the central government makes the current situation more complicated than was previously the case when Aruba left the Netherlands Antilles. The Netherlands Antilles must be eliminated and there will emerge simultaneously three new entities: two countries and three islands with their own status, which yet has to be developed. Thus between now and 15 December 2008 a great deal of work has to be done by and between all partners in the Kingdom. 15 December 2008 is the date that on 12 February this year in St. Maarten was set as the date, whereby the restructuring of the Kingdom must be finalized.

For me the elections for the Island Council held on 20 April last were -as least as far as Curaçao was concerned- dominated by the Final Declaration. By accepting the agreements, laid down in the Final Declaration, we will finally be truly able to work at improving the welfare of the population. The other option is in my view disastrous and harmful. Because I am convinced that with the acceptance of the Final Declaration Curaçao will have an excellent starting position both financially and economically as well as socially, provided of course that we apply our financial and human resources well and responsibly.

Ladies and Gentlemen,

What lessons can we in Curaçao learn from the experiences of Aruba?

Aruba was experiencing a difficult time when it acquired its separate status within the Kingdom. The closure of the Lago refinery placed, similar to the case in Curaçao where Shell left the island, a damper on the economic prospects. Aruba’s starting position was not one of much wealth, even though the Netherlands gave some support in the way of guarantees. Through co-operation and an admirable unanimity Aruba was able to overcome its difficulties. During five consecutive years after 1987 its rate of economic growth was between 10 and 15 per cent. That is a remarkable achievement.

Once Curaçao accepts the Final Declaration its starting position will be very favourable. I have already mentioned that because the Netherlands will eliminate a large part of the national debt the overwhelming debt and interest payments will disappear and more funds will be available on the capital market. This will be a stimulus for investors. However one would have to carry out a responsible financial and economic policy, whereby no more debts are acquired.

The title of my presentation “New horizons, new opportunities” refers to the abundant opportunities, that exist, provided that we put a sensible government policy in place, make the right choices and make good use of the talents of our people. We will have to invest especially in education and in a social policy, which does not render our citizens dependent, but on the contrary prepares them for the new developments. We will have to organize and professionalize our administration, so that it can meet the new challenges effectively. We would have to really apply good governance. After years of stagnation we now have a momentum, which offers a perspective. We must not let this chance, this golden opportunity, slip away from us. Thus a new horizon and new opportunities also mean that we must determine our direction, set out a course and apply good resources and instruments. In other words: we must make the right choices.

Ladies and gentlemen,

It is also important that good arrangements are made among the islands. There are a lot of areas in which we can work together. With Aruba there exists the Council for Ministerial Co-operation along with the Common Court of Appeal and the collaboration in meteorological services and in the area of air traffic control.

In the discussions between Curaçao, St. Maarten, Bonaire, Saba and St. Eustatius on the coming constitutional changes the possibilities of collaboration have been considered with regard to such institutions as the central bank, the police force and the penitentiary system as well as regarding such tasks as maritime, aviation and public health inspection. Such an approach is in accordance with the trend in the changing world around us. Worldwide we are seeing more co-operation between countries and regions. Maybe in a while and with good reason we will be able to speak of: “Supported by one’s own strength and with the will to assist each other”. I hope that Aruba will generously support us on our way to an autonomous status within the Kingdom. Your support will give an important impetus to the consolidation of our ties and will also offer new opportunities for economic co-operation.

Ladies and gentlemen,

In closing: I view the future with confidence. We will however have to take the right measures, practice discipline and together determine our direction. The debt alleviation and the social economic initiative are a unique offer, which can end years of muddling along. Together we will have to meet the challenges, which lie before us. That is the only way that we can safeguard a lasting wellbeing and welfare for all of our citizens, be they young or old. It is now up to us to decide on the future of our children and the coming generations.

I thank you most sincerely for your valued attention.