PHILIPSBURG:--- Foreign direct investment (FDI), historically a lifeline for St. Maarten’s economy, is now constrained by lengthy procedures, inconsistent messaging, and a perception that the jurisdiction is unfriendly to business. Investors operate in a competitive global environment; when faced with uncertainty in St. Maarten, they redirect resources to other Caribbean nations where frameworks are clearer, and timelines are respected. This is not just a missed opportunity; it is a direct threat to fiscal stability.
The consequences of these policies extend beyond the business community. Reduced investment translates into fewer jobs, slower income growth, and increased household vulnerability. Meanwhile, the government faces growing fiscal pressure, as expenditures increase while revenues stagnate. This imbalance limits the ability to invest in education, healthcare, and infrastructure, all of which are essential to long-term development.
In my opinion, St. Maarten’s economic slowdown is not accidental; it is the result of deliberate policy choices and an inability to align government priorities with long-term national interests. A struggle for a $200 million investment to obtain what they need from the government to proceed should never happen, especially with all the challenges our economy has faced in recent years and the threat of even more challenges given the current situation in the US and its possible impact on our economy. This appears to be a government that is not aligned with its people.
The emphasis on restrictive or cautious attitudes toward development and hesitancy on foreign direct investment has created an environment of uncertainty. While our government aims to satisfy environmental advocates or those concerned about corruption, it fails to account for the broader socio-economic consequences, particularly the availability of jobs, household income, and fiscal stability.
The irony is that by trying to shield ourselves from the risk of corruption, we may be fostering the very conditions that make corruption thrive—closed doors, slow approvals, and desperate businesses seeking shortcuts. What the island needs is not paralysis, but stronger systems of accountability, clearer rules, and leadership willing to make hard but necessary decisions. However, the mentality that “while we develop those rules, we should not eat” seems to come from a government that is not in tune with the realities of everyday life.
Construction remains a prime example. An entrepreneur will receive a notice to pay outstanding dues urgently when there is no construction work for months due to the unaddressed delay in building permits. As a sector that contributes roughly 16% of GDP, its importance to economic growth and employment cannot be overstated. The conclusion of the airport reconstruction project and the stalling of World Bank initiatives illustrate the risks of overdependence on limited development streams. Without new projects coming online, there will be little to sustain employment levels or stimulate secondary industries such as transport, retail, and professional services.
St. Maarten is at an intersection, and I can only invite the current government to “look pon the gully side,” in the famous words of Morgan Heritage. The damage being caused does not have equal consequences for all.