activities around the port such as ship repair and freight transshipment are also important. Curaçao has a reasonably well developed infrastructure (telecommunications, road, harbour, airport, electricity and water).
Curaçao’s Gross Domestic Product (GDP) amounted to US$ 3.0 billion40 in 2011. The island had in that year a per capita Gross National Product (GNP) of US$ 20,800. During the past five years, the economy grew by an average annual rate of 1.2 per cent, but it has recently suffered from the global recession, reflected by a contraction in real GDP of 0.4 per cent in 2011.41 Despite the fact that the island enjoys a high per capita income compared with other countries in the region, the distribution of income in Curaçao is uneven and the cost of living is high. Twenty per cent of the households with the highest income receive half of the total income of all households in the country. 42 About 30 per cent of the population is living below the established poverty line.43 According to a recent report by Unicef, women earn less than men and the majority of single parents may have more than one job in order to support the family. Despite this, there is no policy to assist women to fulfill their dual role as caregivers and guarantors of the household economy. 44
The dismantling of the Netherlands Antilles was accompanied by a restructuring of the debt position of the islands. To reach a healthy financial start, the Netherlands assumed the national debt of the Netherlands Antilles (including Curaçao) to an amount of about €1.7 billion. At the same time (December 2008) a Board of Financial Supervision (CFT – College financieel toezicht) was installed to monitor the public financial administration. Although the financial sector in Curaçao fared relatively well during the financial crisis and Curaçao has a much more healthy debt situation than many other countries,45 the country faces huge budgetary challenges. In July 2012, the government of Curaçao was instructed by the Council of Ministers of the Kingdom to improve financial management.46 One concern relates to the suspension of donor support by the Netherlands. Since the 1980s, Curaçao has received subsidies from the Netherlands47 to support the local economy, social and educational projects, cultural events, and so on. As a result of its newly-acquired country status, this financial support is suspended by 2012. Moreover, in 2019 the contract between the Curaçao government and the oil refinery will terminate, some regulations regarding the financial sector will expire and Curaçao will have to start paying back its debt to the Netherlands. 48
There are also other developments that threaten the sustainability of Curaçao’s economy in the long term. Firstly, there is a serious problem of secondary education dropouts in Curaçao: almost 40 per cent leave school without a diploma49 and crime amongst youth is rising50. Secondly, the country suffers ‘brain drain’ in the age group 20-44 years due to lack of opportunities to study and work in Curaçao.51 The proportion of highly educated citizens is relatively low. The proportion of young people aged 0-14 years has been halved and the proportion of elderly people (aged 65+) has tripled 40
TI takes one billion to refer to one thousand million (1,000,000,000) Annual Report Central Bank Curaçao and Sint Maarten, 2011 (during the writing of this report, the annual report of 2012 was not yet available). 42 Modus Statistic Magazine, Household Income Distribution in Curacao, Volume 8, nr. 1. 43 UNDP, First Millennium Development Goal Report, Curaçao and Sint Maarten 2011. 44 Unicef, The Situation of Children and Adolescents in Curaçao: Key findings and recommendations, 2013. 45 Lecture by Age Bakker, chair of the Board of Financial Supervision (Cft), University of the Netherlands Antilles, 28 January 2013. 46 State Gazette of the Kingdom of the Netherlands, No. 338. Act of 13 July 2012. 47 SONA, previously known as the Netherlands Antilles Development Foundation. 48 Presentation E. Tromp, Annual Report Central Bank Curaçao & Sint Maarten 2011, 6 July 2012. 49 G. Narain, The boy problem, gender differences in educational careers in the Netherlands Antilles, UNESCO, 2009. 50 Korps landelijke politiediensten KLPD, Crimeanalyses Curaçao 2008, (Criminaliteitsbeeld analyse Curaçao 2008) 2009. 51 CBS Census 2011. 41
24
NATIONAL INTEGRITY SYSTEM ASSESSMENT CURAÇAO