||Curaçao launched an ambitious
scheme to privatize State Owned Enterprises (SOEs).
These SOEs are active in a wide variety of sectors, like telecommunications,
infrastructure (harbors, airports, etc.), oil, finance and more.
Privatization is seen by the Government of Curaçao as one of
the major pillars in the attracting foreign investments to the island.
For the actual implementation of the privatization process, the Island
Government of Curaçao established the Commissie Implementatie
Privatisering' (CIP) in December 1999.
Privatization is not an end in itself. It is a means to an end, the
end being economic development and social welfare of Curaçao.
In the government's endeavor to rationalize its functioning, it intends
to concentrate on governing and let the economy be guided by the market
forces as far as possible. Herewith the government of Curaçao
follows the current global trend towards privatization. Besides aforementioned
objective, the government aims to enhance overall efficiency on macro-
as well as micro-level. Through privatization the government strives
to strengthen the forces of national economic development in general
and in particular to increase the competitiveness of the State Owned
Enterprises (SOEs), especially those that are exposed to global competition.
One of the main objectives is to enhance
efficiency. Curaçao is a small island economy, characterized
by (i) small-sized markets served by small-sized enterprises, (ii)
competition from the other Caribbean islands, and (iii) a relatively
high dependence on imports. It is, therefore, essential to introduce
policy reforms that encourage reductions in production costs. These
will flow from the emergence of competition in the market, along with
the inflow of technical know-how and capital from abroad, which acts
as a spur for the new owners of enterprises to operate more efficiently.
In this way the economic efficiency of Curaçao will improve
and will add to its competitive position in the Caribbean.