2006 Speeches
American Chamber of Commerce – Belize – Annual General Meeting - May 17, 2006
Thank you for your invitation to the American Chamber of Commerce AGM, and for the opportunity to speak with you this evening on two topics: economic development and education.
The U.S. is fortunate to enjoy strong economic ties with Belize. We are Belize’s number one trading partner, providing 38% of Belizean imports and accounting for 55% of exports. Our new embassy in Belmopan, a US$50 million investment, is a major contributor to the local economy. This construction project has created new jobs and created opportunities for workers to master new trades. At the same time, the U.S. mission in Belize employs over 80 Belizeans. Moreover, the U.S. invests roughly US$2.5 million in direct annual assistance to Belize – and that does not include investments in projects such as New Horizons which constructs and renovates schools and youth hostels, or the MEDRETE team which, from May 8 – 17, provided free medical treatment to some 5,000 residents and 2,000 animals in the Orange Walk District.
The U.S. is committed to expanding trade and promotion economic development in the hemisphere. Thriving international commerce, such as that between the U.S. and Belize, promotes prosperity, job-creation, and maintains peaceful foreign relations. Free-er trade expands individual opportunity and reduces barriers – thereby enabling ideas, goods and people to travel across borders at speeds unknown just a few decades ago. Developing countries’ potential gains from free trade are significant: the World Bank estimates that full trade liberalization would boost the incomes of developing countries by up to $259 billion over the next 10 years. The facts speak for themselves: reduced tariffs create new trade flows and promote development. Indeed, that is why free trade is at the center of President Bush's vision of a world of expanding economic opportunity, prosperity, and freedom.
It is Belize’s natural beauty which stands as one of the nation’s most powerful economic forces. Over 800,000 tourists visit Belize annually – with some 90% of them coming from the U.S. Although there has been a slight decline in the industry of late, tourism continues to be Belize’s single largest foreign exchange earner – BZ$349 million in 2005.
While the country remains a holiday destination for literally hundreds of thousands of Americans, Belize must make, if it wishes to remain competitive, the investment in infrastructure and services necessary to ensure a safe and secure experience for its visitors. Clearly, if tourists are not confident that the host country can provide a safe and secure environment, they will not visit here. If the tourism sector is to remain strong, then sufficient resources must be devoted to creating and maintaining effective safeguards. In short, the experience must match the marketing.
While tourism and agriculture and key components in Belize’s economy, the recent discovery of oil introduces a potentially significant factor in the economy. The discovery of oil has made local headlines, and even garnered international media attention. I look forward to hearing the various perspectives on this developing issue from the guest speakers at your upcoming AMCHAM breakfast in the Cayo District this June.
The economy of Belize faces some serious challenges, however. Debt presently stands at approximately 100% of GDP. This translates to an estimated at $7,000 per person – a considerable figure when compared to per capita income of $3,665. Unemployment remains high, and in October 2005, Moody’s downgraded Belize’s foreign currency bonds citing concerns about the country’s ability to service international debt. How these challenges are addressed, and the resulting impact, remains to be seen.
Good governance is a critical component of strong economies. As noted in the May 14 issue of The Reporter, Belize ranked 62 out of 158 on Transparency International’s 2005 Corruption Perceptions Index. Basically, corruption is a tax on the poor and robs the economy of infrastructure that is a precondition for economic growth. An important component of successful democracies is the existence of transparent, accountable institutions of governance. Good governance is essential for addressing gaps in education, health, and for building stronger systems which hold governments accountable. When countries govern justly, open up their economies, and invest in their people, growth and development follow.
Education is a topic of great importance to me, and I am proud of our nations’ shared interest in advancing this issue. Education is an investment in people capital, and an educated populace is a key factor in promoting good governance.
I have had the privilege of visiting approximately two local schools a month, and speaking with a variety of students. I’ve been impressed by the students– their questions are insightful and sometimes challenging; their behavior is respectful.
Many Belizeans continue to be educated in the United States. The Embassy’s consular section approves an average of 220 student visas annually for Belizeans to attend U.S. colleges and universities. Some colleges offer “in state” tuition rates for Belizean nationals, and there appears to be increasing interest in creating educational partnerships.
Numerous colleges and universities throughout the United States provide scholarship and tuition grant assistance. For example, seven Belizeans are currently studying at, or will begin attending this fall, the U.S. service academies: three at West Point for the Army, two at the Naval Academy in Annapolis, one at the Air Force Academy in Colorado Springs, and one at the Coast Guard Academy in New London. The acceptance process is extremely competitive – candidates from across the globe compete for just a few openings. There are no set quotas for specific countries; therefore, it is especially important to note that, despite a population of less than 300,000, Belize’s total number of candidates in U.S. service academies is more than any other country in the Western Hemisphere. The value of these scholarships is significant - estimated at US$250,000 per student – worth US$1.75 million.
In addition to these seven Belizeans receiving scholarships, two more Belizeans are pursuing graduate studies as Fulbright scholars. It is my hope that we can work together to make even more educational opportunities for educational exchanges between our two countries.
I would like to reiterate that the Embassy appreciates your invitation. We hope that events such as this will continue to foster even closer ties between business communities in the United States and those in Belize.
Thank you again for your time and attention.