‘Seychelles took the right decision,’ says President

After five years of macro-economic reforms endorsed by the International Monetary Fund (IMF) and at a time when the country has been evaluating the reforms, President James Michel has said that Seychelles did the right thing by deciding to adopt the programme.

The president made the declaration while delivering his key note address at the conference on Seychelles’ economic reform experience organised by the IMF, under the theme ‘From Stabilisation to Sustained Growth: Five Years of Successful Reforms and the Challenges Ahead’. The conference held last Thursday at Le Méridien Barbarons Hotel, was attended by Vice-President Danny Faure, ministers, members of the National Assembly, government officials as well as representatives from the private sector, while the IMF was represented by its deputy director for African affairs David Robinson and mission chief for Seychelles Marshall Mills. 

The aim of the conference was to address the successes, challenges and lessons learnt from the reforms and explore policy actions and options on the way forward. 

Describing the reform as one of the most complete and comprehensive macro-economic and structural reform programmes that the world has experienced in recent times and at the same time a journey to change Seychelles’ socio-economic landscape, President Michel said that the decision to embark on the programme was without political considerations but rather for common good and in the public interest.

“It was about ushering Seychelles into a new era of modernity, profound change, accountability, responsibility and transparency.  It was about reassuring the people that, notwithstanding the harsh realities of the macro-economic reform programme that we were about to enter into, no Seychellois would be left behind. My message was also about the need to change our mindset. That as much as government would look after the needy, the most vulnerable in our society, those who were capable of working had to get up and fend for themselves,” the President said.

Comparing the economic situation five years ago to now, President Michel said that Seychelles has evolved from a country with imbalances which had weakened its fundamentals to a respected nation which has done the right thing.

“The signs were there for all to see. An over-valued rupee, empty shelves in the shops, a flourishing black market, queuing up to buy $400 for travel overseas … Our resilience against international shocks had been eroded and we could no longer honour our commitments to our international creditors. [...] Seychelles is today respected as a nation which has done the right thing. We have a track record that is recognised by the international community at large, from the multilateral to bilateral partners, rating agencies, as well as commercial financial organisations,” he said.

On the way forward, the President has identified the promotion of sustainable growth and macro-economic stability as the key ingredients:

“We need to promote inclusive growth that provides equal opportunities, that reduces inequality, and promotes social justice.

Growth should not leave any Seychellois behind. As we focus on the way forward, let us not forget one fundamental pre-condition for sustainable growth, which has been crucial for taking us to where we are today, five years after the introduction of the reform programme: that is macro-economic stability. 

The president concluded by thanking Seychelles’ multilateral and bilateral partners such as the IMF, World Bank, European Union, African Development Bank and Abu Dhabi for supporting the reform programme. He reassured them that Seychelles remains committed to a stable and sustainable economy and will continue to pursue prudent and strong macro-economic and social policies, for example by bringing down our debt level to a more sustainable target and by  continuing to invest in education, health and decent housing. 

In a presentation made during the conference, the Minister for Finance, Trade and Investment Pierre Laporte, echoed President Michel’s statement by summarising the macro-economic reforms as “a successful case of reforms in a small island economy”. Minister Laporte has stressed on the need to sustain economic gains through structural reforms and to increase wealth. This, he believes, will raise the country from an upper middle income one to the next level. 

After the conference, which also marked the end of the 15-day final review under the IMF’s Extended Fund Facility (EEF), the institution’s head of mission Marshall Mills declared that the Seychelles government has successfully implemented the IMF-supported programme and that the Seychellois economy continues to perform well despite weak global growth. He said that the planned policies will continue to strengthen stability and resilience. 

The IMF chief of mission however warned that challenges remain and that Seychelles’ open economy remains highly vulnerable, especially to external shocks.

Forrás: www.nation.sc