Policy Development Plan 2017

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Policy Development Plan 2017 2017-2021 POLICY DEVELOPMENT PLAN Part 1 Development priorities of Suriname By consensus, jointly building a diversified Surinamese economy, which is competitive in the competitive global market, has significantly more sustainable development, generates employment and equality, and keeps the environment livable Government of the Republic of Suriname Publication of the Stichting Planbureau Suriname [Suriname Planning Bureau Foundation] January 2017 TABLE OF CONTENTS Introduction ........................................................................................................................ 6 Technical note ..................................................................................................................... 8 List of Abbreviations .........................................................................................................11 Chapter I: The Point of Departure ...................................................................................14 I.1 Macro Economic Considerations ...............................................................................14 I.1.1. International Economic Developments 2012-2016............................................. 14 I.1.2. National Economic Developments 2005-2016 ................................................... 16 I.1.2.1 Production and Income ...........................................................................16 I.1.2.2 Role Mineral Sector within the Economy ...............................................17 I.1.2.3 Monetary Developments: Exchange rate and Inflation .............................19 I.1.2.4 Government Finance and National debt ..................................................19 I.2 “Commodity Crisis” and “Great Slowdown” in the World trade .............................21 I.3 Challenges and Opportunities ....................................................................................21 I.4 Simulations of the Development in Planning Period 2017-2021.................................21 I.4.1. Introduction .......................................................................................................21 I.4.2. The Baseline.......................................................................................................22 I.4.3. Desired growth projections ................................................................................23 I.4.4. Pessimistic growth projections ...........................................................................24 Chapter II: The Strategic Vision........................................................................................27 II.1 What is Development?.................................................................................................27 Three “preliminary questions” and the Responses ....................................................28 II.2.1. Who and what will the ‘Surinamese People’ be in 2030?..................................29 II.2.2. Can we do it on our own or are strategic partnerships necessary? ......................30 II.2.3. How can we preserve the stability of the Surinamese currency? ........................32 II.2 The Need for a Strategic long-term Vision ................................................................33 Chapter III: Points of departure of the Development Plan 2017-2021............................34 III.1. Formal Development Goals.......................................................................................34 III.2. Committing to the Principles of the UN-SDG ..........................................................36 III.3. The four Pillars of the Development Plan 2017-2021 and Development Goals ......36 III.4. Principles and the Normative Approach of the Development Process ...................38 II.5. Decentralization of Sectoral and Regional Policy and Action Programs .................39 Chapter IV: Institutional Development and Structural Change ......................................41 IV.1 Strengthening and Reforming the Political Administrative Machinery .................41 IV.1.1. Approach ........................................................................................................41 IV.1.2. Implementation Capacity of the Government Machinery ................................41 IV.1.3. Public Sector Reform.......................................................................................42 IV.1.4. Better demarcation of Central and Regional Administration ............................43 IV.1.5. Public-Private Partnerships ..............................................................................44 IV.1.6. Privatization of State-owned enterprises .........................................................45 IV.1.7. Legal Certainty ...............................................................................................45 IV.1.8. National Security ............................................................................................45 IV.2 Consensus on and Reform of the National Planning Machinery ............................47 IV.3 State, Private Sector and Institutional Change ........................................................51 IV.3.1. Encouraging and facilitating Private Entrepreneurship .....................................51 IV.3.2. Privatization of State-owned Enterprises .........................................................52 IV.3.3. Promoting Investments, Entrepreneurship and Export ......................................54 IV.3.3.1 Institutional Framework to Promote and Facilitate Investments ........ 55 IV.3.3.2 Promoting Entrepreneurship ..............................................................57 IV.4 Trade..........................................................................................................................59 IV.4.1. Participation in the International Trade ............................................................60 IV.4.2. Local Trade: Market Institutions and Market Structure ...................................60 IV.4.3. Consumer Affairs and Competition Policy ......................................................62 IV.4.4. Input Market for the Export Production ..........................................................64 Chapter V: Encouraging Sectors .....................................................................................65 V.1 Physical Infrastructure ............................................................................................65 V.2 Transport sector ........................................................................................................67 V.3 Energy and Water sources .......................................................................................70 V.3.1. Energy ..............................................................................................................70 V.3.2. Water................................................................................................................72 V.4 Knowledge sector.......................................................................................................73 V.5 ICT Sector..................................................................................................................74 V.6 Technical and Vocational Education ........................................................................75 Chapter VI: Strategic Plans for the Production Clusters ................................................77 VI.1 Production Clusters as “Priority Sectors” and as Strategic Concept......................77 VI.2 Production Clusters in the Mining and Extractive Industry ...................................78 VI.2.1. Gold ................................................................................................................78 VI.2.2. Oil ...................................................................................................................81 VI.2.3. Bauxite, Alumina and Aluminium ...................................................................82 VI.3 Two-track strategy in agriculture: Large-scale and Small-scale Agriculture.........85 VI.3.1. Small-scale agriculture and Agro-industry .......................................................85 VI.3.2. Large-scale agriculture and Agro-industry .......................................................86 VI.4 Current Production Clusters Agrarian Sector and Agro-industry .........................87 VI.4.1. General............................................................................................................87 VI.4.2. Implementation Principles of the Strategy........................................................88 VI.4.3. Crop cultivation...............................................................................................89 VI.4.3.1 Rice....................................................................................................89 VI.4.3.2 Banana ...............................................................................................92 VI.4.4. Animal Husbandry...........................................................................................92 VI.4.5. Fisheries ..........................................................................................................94 VI.5 New Production Clusters in the Agriculture and Agro-Industry ............................95 VI.6 Production Cluster Forestry and Related Industry .................................................97 VI.7 Production Cluster Export Industry: Food, Beverages and Chemical Products ...99 VI.8 Production Cluster Tourism and the Creative Industries ....................................100
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