The Turks and Caicos Islands Government (TCIG) Department of Strategic Policy and Planning (SPPU) is forecasting a 3.4 percent growth for the TCI economy in 2013. This growth is underpinned by a recovery in the tourism and construction sectors with spillovers into the wholesale and retail sectors. The Department cautions, however, that actual growth will depend on strength of the recovery in the US and success of the TCI government in finding ways of diversifying the economy.
Although the TCI economy experienced a slight decline of 2.1 percent in 2012, evidence shows that the economy is stable and though fragile, has recovered from the disastrous 19.6 percent decline in 2009, which might be seen in the context of the state of the world economy at that time.
Adjusting for indirect taxes and subsidies, GDP in constant market prices was estimated to have decreased by 2.1 percent to $540.6 million in 2012, but is expected to grow by 3.4 percent to $558.9 million in 2013.
Projections beyond 2013 show a continuous positive growth rate as people adjust to new standards of living and become more comfortable with their purchasing power, the further strengthening of the industrial sectors and the emergence of new industries take the lead in contributing to the growth of the TCI economy.
Increasing investment and trade
TCIG is undertaking a campaign to attract inward investment, simultaneously putting mechanisms in place to support the continued growth of existing business and investments which have already taken root within the Islands.
In partnership with the Private Sector, the Government has launched, coordinated and participated in several international investment conferences. TCIG used the AVALON Invest Caribbean Now Conference in New York as a platform to broadcast to the investment community its interest in sustainable and economically prudent investment opportunities in TCI.
In terms of reforming domestic policy, a Business Transformation project is currently underway to identify potential barriers to inward investment and produce comprehensive strategies to mitigate their effect. The TCI Cabinet has approved an amendment to the Immigration Regulations to permit Permanent Residence Certificates to be granted to certain categories of investors.
In addition work is underway to reform and implement policies that will:
a. allow economic diversification and controlled population growth for a sustainable economy;
b. permit the re-establishment of an investment agency that will act to promote TCI and act as a one stop shop for investors;
c. collaborate with the EU under the EDF 10 grant to improve business systems in the TCI;
d. streamline business licensing procedures whilst ensuring TC Islanders are empowered and provide some level of protection in some industries;
e. Attract and retain more TC Islanders in the Public
Sector and improve public sector productivity.
Developing entrepreneurship and small businesses
TCIG is in the early stages of developing a manufacturing policy to encourage SMEs in TCI, which is likely to include tax breaks and incentives for certain types of business.
Infrastructure investment
Work is underway to reform policies to enable the development of infrastructure projects, and encourage public private partnership arrangements with the UK and other interested parties.
Construction is projected to increase in the final quarter of 2013 and is expected to surge in 2014 as a result of foreign direct investment in large-scale tourism projects. Such projects include the JW Marriot, the West Caicos Project and the Third Turtle Club, as well as the revitalization of stalled projects and other proposed private sector projects.
Significant public spending on capital works will complement private construction activity, including road works, ongoing expansion of the airport, and classroom blocks around the islands.
Building materials have been explicitly exempted from recent increases in customs and freight duty in order to encourage activity in the construction sector.
Meeting international standards on tax co-operation and financial sector regulation and combating financial crime, bribery and corruption TCI has met their G8 commitments and demonstrated their commitment to achieving the highest international standards of tax transparency.
They signed up to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and published an Action Plan on Beneficial Ownership. TCI is also an active member of the Caribbean Financial Action Task Force (CFATF), and regularly attends and contributes to the group’s regional forums.
TCI is working with the UK to have the UN Convention on Corruption extended to TCI. A compliance review is currently being carried out by UK consultants.
TCI is also working with the UK to have the OECD Anti-Bribery Convention extended to TCI and will work to the ‘road-map’ currently being developed by UK Government Departments to extend the Convention to all OTs.
TCIG is undertaking an exercise to identify which aspects of the UN Convention against Trans- national Organized Crime (Palermo Convention) and UN Terrorist Financing Convention are currently accounted for in domestic legislation and which will require new provisions. Extension will be sought following completion of the review.
The Environment and Green Growth
Management and protection of the natural environment
Section 18 of the 2011 TCI Constitution mandates that “the Legislature and the Government shall, in all their decisions, have due regard to the need to foster and protect an environment that is not harmful to the health or well-being of present and future generations, while promoting justifiable economic and social development”. TCI has several pieces of draft legislation which would serve to protect the environment of the TCI, which will facilitate development and allow TCIG to ratify the multilateral environment agreement. Of noteworthy is an environmental management ordinance.
Sustainable fisheries
TCI currently manages the primary fisheries of queen conch (Strombus gigas) and Caribbean spiny lobster (Panulirus argus) through a Total Allowable Catch (TAC) system. As a result of a decline in catch levels following two hurricanes (Ike and Hannah in 2008), TCIG is funding a conch visual survey to obtain accurate scientific data on conch levels. In addition, the Government has taken a proactive step in line with the UN Precautionary Principle Code of Conduct for Sustainable Fisheries, and established legislation to shorten the season for Caribbean spiny lobster by 15 days, in order to enable greater stock recovery.
Recognizing the heavy reliance on the two fisheries mentioned above, TCIG has secured UK funding for a feasibility study for the development of a deep water pelagic fishery in TCI’s Exclusive Economic Zone. The study will also build the capacity of local fishers in the methods of deep water fishing. The diversification of the fisheries industry will take pressure off conch and lobster stocks, thereby improving sustainable harvest of all stocks and increasing economic resilience across the sector. The UK has also recently agreed to fund a project that will teach local fisher folk to construct and deploy artificial habitats for the spiny lobster in order to increase the species numbers around the islands.
Having sufficient capacity to monitor and enforce the sustainable management of TCI fisheries remains a challenge. Rampant illegal fishing in TCI territorial waters also continues to exacerbate this.
Renewable energy
TCI is currently bound by a restrictive Development Agreement with the primary electrical producer, Fortis (formerly PPC), which inhibits private sector investment in renewable energy. For example, no net metering policy exists. Current high electricity costs make renewable energy an economically attractive option but negative incentives discourage private individuals from generating their own electricity from renewable sources. TCIG is currently looking into re-negotiating the Development Agreement.
Discussions have begun with electricity service providers to reform the energy sector to ensure effective measures are in place to improve operational efficiency, prudent management and to promote least cost expansion planning; include renewable energy generation in the energy mix, improve customer service and quality standards, and revise utility profitability to a reasonable level. Work is underway to source a consultant and draft legislation to put into effect these measures.

TCIG have also undertaken additional measures, including;
Revision of the Building Code to incorporate energy sustainable best practice and design. This has been done as part of the Hurricane Ike Reconstruction and Rehabilitation Project;
collection of data for a Long Range Alternative Plan;
holding discussions with the electricity service provider to implement an incandescent to
compact fluorescent bulb exchange programme;
resuming discussions with the electricity supplier to engage in a pilot renewable energy programme as part of the Hurricane IKE EU-TCIG Reconstruction Project.
Funding and human resource remain the main challenge to meet the Government’s objectives.
Sustainable Development
The Government remains committed to the principle of sustainable development, using its natural resources to promote the economic and social development of the islands, and taking care to preserve and minimize impact on the natural ecological environment.
A review of TCI’s Protected Areas was undertaken in 2005. This review determined that the existing Protected Areas, with few exceptions, were well-designated. Since that time, there has been some erosion of Protected Area boundaries by development interests. With continued pressure to privatize public land, it is conceivable that within a very short time period, the only lands remaining in the public sector will be those contained within Protected Areas. A review of the boundaries of national parks is currently underway, and the results of this will be put out to public consultation in early 2014. The National Parks Ordinance may be revised subject to the outcome of this review.
TCIG is working with a consultant to review building codes and update the National Physical Development Plan to ensure that developments are planned and sustainable. The Government has also initiated a tendering process to develop a Tourism Plan to serve as a roadmap towards sustainable development of the economy and people of TCI.
Sustainable Commercial Use of Natural Resources
An Environmental Impact Assessment (EIA) is compulsory for all large-scale developments. Fisheries are sustainably managed with science-based management plans. An extensive network of Protected Areas ensures that ecologically important areas are conserved in TCI. To some extent, the necessary legislative and policy framework is in place to ensure the sustainable use of natural resources in TCI; however, in practice, existing measures are limited in their application due to limited budget, and technical and practical capacity. The current legislative framework does not provide any penalties for failure to comply with mitigation measures and other recommendations arising from the EIA.
Food Security and Best Practices for Agriculture/Aquaculture to share knowledge and best practice in the areas of food security and agricultural and aqua-cultural production.
Legislation for Plant and Animal Health has been passed, which provides the basis for bio-security to ensure that pests and diseases are kept out of the country. A Nationwide Pest and Disease
Surveillance has been implemented in several islands to strengthen the pest and disease containment and exclusion programmes. A Food Safety Bill has been drafted after consultation with key stakeholders. Farm Inspection and Farm Registration Programmes have commenced which provide farmers with the technical advice and necessary support for agricultural production.
There is also greater collaboration between the Business Licence Department, Customs, Immigration and the Investment Unit to offer as much assistance by way of import duty reduction on farm equipment, business licence fee reduction, capital and human resources to prospective farmers. The Government Farm will be transformed into a research facility to demonstrate to farmers best agricultural practices in crop and animal production and the most suitable varieties to achieve maximum yield.
The legislative framework is in place to accommodate aquaculture ventures. However, it must be noted that aquaculture is not prominent in the TCI except the conch farm. There are only a few people involved in hydroponics.
Meeting international obligations
Participation in biodiversity initiatives and greater emphasis on the protection of the reef systems.
TCIG is working with CDEMA to mainstream climate change into the Government’s decision making process. Plans are underway to revisit TCI’s climate change initiatives.
Areas of particular concern in this area include continued proliferation of development in vulnerable coastal areas, vulnerable food security based on a heavy reliance on imported food, and limited generation of energy from renewable sources.
Strengthening relationships with the EU, Commonwealth and other international organisations
TCIG is currently working to meet requirements for disbursement of the 10th European Development Fund (EDF), which is largely focused on building a better business environment and improving service delivery across government, particularly in relation to business and investment.

Better Government
Developing democratic institutions
As per the TCI 2011 Constitution Order, the following Institutions of Good Governance have been established, with the aim of ensuring accountability and the protection of the rights and freedoms of people of the islands:
• Office of the Auditor General (National Audit Office) established October 2012 • Office of the Director of Public Prosecutions established October 2012
• Human Rights Commission established 2008 (legislation currently being revised) • Integrity Commission established 2010
• Supervisor of Elections — major election reform carried out to facilitate Elections 2012 • Complaints Commissioner established September 2013
Integrity in public life
The principles of Public Life are set out in the Integrity Commission’s Code of Conduct for Persons in Public Life. It is a requirement that all persons in public life (including not just Ministers and Members of the House of Assembly, but also senior public servants and members of Statutory Boards) subscribe to these principles. It is the responsibility of the Integrity Commission to review, amend or replace the Code as it deems necessary, and, in accordance with any Ordinance, to investigate any alleged failures to abide by the Code, either in response to a complaint or on its own initiative.
Strengthening the public service
TCIG underwent a major public service reform during 2009-12. The focus of the reform was not just to reduce the size and cost of the civil service, but also to improve service delivery and the provision of effective and efficient public services across government.
Ministries were restructured and given clear strategic goals.
The role of Permanent Secretary was enhanced to include more strategic oversight and policy development, and Permanent Secretaries participated in several training programs to enhance their strategic managerial skills. This included a Mentorship Program with the Norfolk County Council, which gave managers a better understanding of best practice in other territories and provided training led by UK Technical Advisors and other key personnel. Ministries now possess annual business plans and risk registers.
A Permanent Secretary Board (PSB), chaired by the Deputy Governor, has been established to strengthen corporate management of the public service. The PSB reviews and approves policies before submission to Cabinet. This has greatly assisted with providing more comprehensive analysis of policy documents before final approval.
General Orders have been reviewed, and a new Public Service Ordinance and Handbook has been developed and implemented. The role of the Public Service Commission has been substantially
reformed to place greater emphasis on their oversight responsibility to uphold the principles of merit, neutrality and integrity, and to move away from previous micro-management of the service. New legislation has empowered senior management to be responsible and accountable for the management of their staff.
The 2012 Public Service Ordinance sets out the principles of recruitment and requires that all positions are filled through a fair and open recruitment process. All positions below Head of Department are based on approved recommendations by the Public Service Commission. Positions above Head of Department are the responsibility of the Governor who has delegated certain responsibilities to the Deputy Governor.
A program for professional development has been developed in the TCI civil service. A Training Unit was re-established in 2012, led by a Training Manager who facilitates structured training programs across government.
TCIG has launched the UK Civil Service Online Learning Program on island. HR Directorate is currently working on the challenges associated with monitoring staff progress.
TCIG also benefits from professional development programs through partnerships with the Caribbean Technical Assistance Center (CARTAC), the Caribbean Centre for Development Administration (CARICAD) and the Caribbean Development Bank (CDB), among others.
Improving service delivery, including through e-government
Great strides have been made on service delivery over the last three years. However, there is still much more work to be done, particularly with regards to e-government. E-government is a priority for TCIG and it has begun preparatory work to focus on rebuilding the government website, improving the telecommunication network and establishing a secure network across government to facilitate the provision of more services and payment of fees online.
A Business Transformation Technical Advisor will focus on streamlining and improving TCI’s business licensing, work permit, and planning and development procedures.
TCI is also in the process of establishing a new partnership with the Isle of Man.
TCI has previously benefited from support from the Isle of Man, which hosted a Post Election Seminar for Ministers and Members of the House of Assembly earlier this year in TCI and facilitated a visit by the TCI Clerk of the House of Assembly and Deputy Speaker to the Isle of Man in May 2013. The Head of Secretariat from the Premier’s Office undertook a programme with the Isle of Man in August 2013.
The Ministry of Border Control and Labour has established ties with UKBA, which has provided training on island to Immigration Officers and facilitated a Train the Trainers Program for two senior TCI Immigration Officers in the UK. The Director of Education also spent six weeks in the UK on an exchange and mentorship program.
TCI has a three year Technical Assistance Program, funded by the UK. Technical Advisors are working to build capacity in the territory and to support TCIG to improve services across government. The programme is closely aligned with the Public Sector Reform Programme. A Senior Leadership Development Programme is currently under development.
Strengthening Public financial management
In addition to the Principles of Public Financial Management set out in the 2011 Constitution Order, a new Public Financial Management Ordinance and Handbook was established in 2012. The Public Financial Management Ordinance is built on the principles of openness, transparency and accountability and seeks to ensure that finances are managed in an efficient and prudent manner.
The Constitution requires TCIG to ensure the delivery of a surplus budget every year; any deviation from this must be set out and approved by the House of Assembly, prior to the budget being tabled. The budget must be based on the parameters of the Fiscal and Strategic Policy Statement (FSPS), which must be updated and approved by the UK Government on an annual basis.
The PFM Ordinance requires TCIG to publish quarterly budget reports and present to the House of Assembly a mid-year budget forecast for the financial year. End of year financial statements must be submitted by the Treasury to the National Audit Office (NAO). The NAO must present to the House of Assembly the audited financial statements.
Audit reports are reviewed by the Public Accounts Committee.
The FSPS 2013—2017 sets out TCIG’s fiscal priorities for the next four years. The FSPS sets out TCIG’s intention over the medium term to increase revenue generation, while at the same time ensuring prudent and conservative expenditure growth, to facilitate the generation of significant surpluses over the medium term.
As per the Public Financial Management Ordinance of 2012, all surpluses over US $2m are to be transferred at the end of the financial year into the Sinking Fund. The Sinking Fund, managed by the Governor, was created in 2012 to build reserves to reduce and repay outstanding debt. It currently contains $44m, which is over 20% of TCIG’s debt.
TCIG has a unique debt situation, whereby the UK has guaranteed $260m worth of loans. It is the intention that TCIG will through pay down of debt and generate fiscal surplus each year to make deposits to the Sinking Fund and reduce its debt level to approx. US $85m by 2016. At which time TCIG will be required to refinance this debt on its own through private financing.
TCIG recently established a “Blue Ribbon Commission”, comprised of representatives from various business sectors in TCI, to review the current tax structure and to make recommendations on a possible new sustainable tax structure.
The Ministry of Finance has established procedures to embed the PFM Ordinance and ensure effective budgeting and expenditure management. Budget Management reports are distributed on a monthly basis by the Ministry of Finance to ensure adherence to the budget and to put in place corrective action if there are deviations from the budget.
The Ministry of Finance has well-established fiscal monitoring procedures in place to monitor and mitigate fiscal risks and to ensure that liabilities are sustainable.
A Statement of liabilities is prepared and included in the budget every financial year. Each Ministry is required to maintain a risk register, which is shared with the Deputy Governor and PS Group.

Procurement
The principles and procedures for procurement are set out in the Public Financial Management Ordinance and the Procurement Ordinance of 2012. The Procurement Ordinance has been developed based on model legislation in the UK and other Overseas Territories and requires that procurement is carried out through a fair and transparent tendering process. The Procurement Board chaired by the Director of the Governor’s Office, is responsible for reviewing and approving tender bids. A Contract Manager has also been recruited under the Deputy Governor’s Office to oversee procurement within government. It is the intention to hire additional staff in the medium term and to set up a full-fledged Contract Management Unit.
Stronger and Healthier communities
Sport and healthy lifestyles
TCIG is working with a Consultant to work with the British Olympic Committee and others to assess TCI eligibility and make representation for establishment of a local Olympic Committee or Associate member status. The President of the TCI Commonwealth Games Association has visited Glasgow ahead of the Commonwealth Games. A small TCI team will attend the Games, taking part in track and field, shooting and weightlifting. TCI are also looking forward to and making plans to celebrate the Queen’s Baton Relay which arrives in TCI in April 2014.
Disability
TCIG is working to improve health for the disabled and children with learning disabilities in collaboration with One World Foundation, Ministry of Health and Ministry of Home Affairs.
Older people
The Department of Social Development and Gender Affairs provides assistance to the elderly, vulnerable and disadvantaged persons in the community through various initiatives.
Children
The Department of Social Development and Gender Affairs continues to partner with UNICEF, UNDP and UNIFEM to address issues of child abuse and domestic violence, and gender related issues. TCI has zero tolerance for child and elder abuse as well as domestic violence matters. TCI celebrated International Women’s Day and Child Abuse Prevention Month and there was a noticeable increase in attendance and awareness throughout the islands. Legislations (Family Laws, Domestic Violence Legislation, etc.) have been reviewed and as a result of the reviews, a Family Court has been suggested for implementation. The reviewed Legislations are currently awaiting passage through the House of Assembly. A National Parenting and Mentorship Program is under development and will be implemented in the coming year.
Tackling Discrimination
The Equality Ordinance was developed in 2012 to address issues of inequality and discrimination. The Bill is being implemented in phases in alignment with International Covenants and Conventions.

Safer Communities
There is little gang culture, gun or violent crime in TCI.
Strengthening coordination on tackling crime
Discussions have taken place between the police, prisons, Attorney General Chambers, Director of Public Prosecution, Governor’s Office, judiciary and immigration to re-introduce the Criminal Justice Advisory Group, to include representation from the Department of Social Development and Gender Affairs and Youth Services. The first meeting is due to take place before the end of the year.
Prisons and probation
Work is in hand to recruit a Rehabilitation Manager for the prison to focus on developing and implementing key programs for incarcerated persons to become model citizens for re-entry into the community. The role will support work in the pre and post stages of offender releases and focus on recognised pathways to reduce re offending.
The prison will continue to engage Ministries and Departments, Non-Government Organisations, and the private sector to fund rehabilitative programs and provide opportunities for persons reintegrating into society. Developments are also planned in pre-release skills and resettlement opportunities and community engagement programs.
The FCO Prisons Reform Coordinator will continue to support and enhance cognitive therapy; sentence management needs analysis and current planning for the delivery of victim awareness. Prison staffs are being trained to ensure operational efficiency according to regional and international best practices.
Draft legislation and policies have been developed to guide the Independent Monitoring Board whose focus is to monitor and ensure that the care and welfare of those detained is congruent with national and international standards.
Alternative Sentencing and Probation Service Assessments have been conducted. Key policy documents have been drafted for the Ministry’s approval and action. The establishment of the Probation Department will be key to the functioning of the prison’s rehabilitation program.
Disaster preparation and resilience
The TCI is at a juncture in implementation of the Comprehensive Disaster Management Strategy and Framework. There is an urgent need to develop sectoral disaster risk management plans that will better hone preparedness and response interventions.
The Department for Disaster Management and
Emergencies is seeking funding to recruit a consultant to draft plans in the priority areas of:
Oil Spills
Maritime Emergencies Tsunamis
Maritime/Cruise ship Accidents Evacuation
Disaster Relief
Emergency Shelter
Mass Crowd Events
External Assistance during emergencies
Hazardous Material threats
Transportation emergencies
Emergency Communication
Work is also underway to draft an Ordinance for Disaster Management.
Work to develop a MoU is underway for churches and schools to be used as shelters. This will enable access to private schools and churches as additional shelters; enable a larger percentage of the affected population to be housed; enable better separation of shelterees based on specific characteristics; and enable better catering of the needs of the shelterees.
TCI continues to strengthen links with other Territories in the North Western Caribbean as part of the North Western Sub-Regional Mechanism for CDEMA participating states. As part of this partnership, TCI has benefitted from the exchange of expertise in Disaster Risk Management.
As TCI position itself for growth and development, through the expansion of the international airport, development of cruise port, and aggressive marketing in the tourism industry, it also has to ensure that the Department of Disaster Management and other first responders are equipped in terms of manpower, skill sets and requisite resources to ensure effective and timely response as the government can be held liable if lives are lost.
Health
Strengthening public health systems
The Government has taken steps to improve the delivery of primary healthcare in TCI via the construction of new clinics in the family islands and the provision of emergency medical services.
Tackling chronic non communicable diseases
In collaboration with the Caribbean Public Health Agency (CARPHA), the Government has taken steps to improve communicable disease surveillance, especially hotel and port based surveillance, in an effort to tackle new and emerging communicable diseases. New National Public Health Laboratory established.
TCIG is working to establish healthy lifestyles programmes in schools to fight chronic diseases and childhood obesity through the healthy schools initiative collaboration between Ministry of Health, Ministry of Education, CARPHA and Universities of Saskatchewan and Guelph.
International Health Regulation compliance
The Ministry of Health and Human Services has taken steps to address International Health Regulation compliance. An Action Plan was developed in August 2013 to address current gaps and recommended action e.g. in areas such as national legislation, policy and financing; rapid response capacity and surveillance.
Education
Strengthening participation and attainment
Educational consultation has been completed to revise the national educational curriculum to align it with the country’s developmental needs. The Government has launched an initiative to revise scholarship policies with a view to improve the allocation and management of scholarship programmes.
As part of addressing the goal of education for all, the Ministry is reviewing the need for skills training with the aim of expanding the technical and vocational offerings at the Community College and High School levels.
TCIG benefitted from a grant from UNESCO to review the Education Sector five year plan, in conjunction with the report from the National Consultation, with the objective of launching a fully costed five year education strategy. The strategy is aimed at reduction of overcrowding, enhancing parental involvement, learning and teaching through the use of technology, strengthening data for education planning and addressing violence in schools.
Early childhood education
There are eight early childhood centres in the Government Primary School system and 23 private centres recognized by the Government. TCIG has developed a draft document on standards and regulations for Early Childhood Education in the TCI which is to be ratified by Cabinet by 30 November 2013.
Tertiary education
Tertiary education is provided both locally and abroad. The Government currently provides post- secondary programs to degree level in several programs at the Local Community College. The programs are expected to expand once a critical understanding of the National Development needs is conducted. Tertiary level education is also provided internationally through a Scholarship program which offers the opportunity for young qualified nationals to attend universities and colleges primarily in the UK and Caribbean. The Government provides over two million (2,000,000) in grants.
There is a strict Scholarship Policy being enforced to ensure that recipients are well-deserved and able to return to the islands to make a contribution.
Efforts are ongoing to improve collaboration with the University of the West Indies to maximize access as a contributing nation. Other collaborative initiatives ensure TCIG can benefit from programs at competitive rates.
Lifelong learning
Opportunities for lifelong learning need to be enhanced. Currently the Community College is reviewing its program to address learning needs in critical areas and age groups. Online programs are available through scholarship grants to qualified nationals. Lifelong learning is promoted in government organisations but there are currently no set policies in place.
The Department of Social Development and Gender Affairs, in conjunction with the Education Department, are collaborating to implement an educational program for juveniles in prison and those who are out of school due to suspension for criminal activities. Funding is being sought to establish this program. Educational opportunities already exist for teenage mothers who are no longer in mainstream educational facilities and persons seeking to acquire a technical/vocational skill.
