REPORT #35 Jan 1999

Produced by the Belize Development Trust
A lesson for Belize?

Ireland 1999

  • 18% unemployment reduced to 7% and still going down rapidly.
  • Economy had been based on third world agriculture. Talented people had to immigrate.
  • Ireland slashed corporate taxes to 10%, attracting foreign investment.
  • Ireland was a cheap beachhead for establishing an entrance into the EU for small multinational corporations. By 1998, over 1100 companies had set up shop in Ireland.
  • Large source of University trained skilled unemployed helped.
  • Education was free, and 60% of educated had business, engineering and science educations.
  • Ireland today reaps the benefit of an emerging knowledge based, high tech economy.
  • Corporate tax revenue for government has doubled, even though reduced to corporations.
  • Economy is expanding at a whopping 8% a year. Limited only by the pool of unemployed skilled educated workers.
  • Irish people are now richer than Britain. Per capita income exceeds Britiain's.
  • December budget cut taxes in 1998 again.
  • Government spending has been reduced from 54% in 1987 to 33% in 1998 of it's part of the economy.
  • leading edge third world economies pay off when post secondary education becomes relevant to a changing world based on technology and knowledge.
  • shift the educational institutions and government departments to a performance based compensation. Flexible tenure instead of guaranteed pension security. Outsourcing of government functions like licensing.
  • Elementary controlled education by government has no place in the future. A matching GRANT Award performance based, skills
  • intensive system outsourced is better. Restoring school choice to parents and students.
  • When the economy prospers government should shrink.
Rod Flaman, Belize Culture List post.
Article by Peter Holle, Frontier Centre for Public Policy 1/11/99


Technological Colleges in Belize teaching mechanics should be cancelled and a new exclusive Aircraft and Powerplant College for FAA licensing introduced. A two year course for the A&P license, with additional options in English, Math and business to go to other Belize institutions to gain credits for an engineering Bachelors Degree after the USA FAA license exam has been passed. Why? Because such a course teaches all facets of mechanics, from gasoline, to jets, to turbos, to hydraulics, etc. Any such mechanic can become a heavy equipment bulldozer mechanic, a car mechanic and airconditioning repairman and also an exclusive aircraft mechanic (which is cream of the crop and requires the license to work).

The Income Tax Law should be repealed and cancelled. Belize needs to become an income tax free country, like Virgin Is., Cayman, Bermuda, Bahamas, etc. The amount of money income for government from Income Tax receipts would be better borrowed in soft foreign loans, despite the deficit. Why? Because the emmigration to Belize of rich individuals would stimulate the economy. Such individuals with multi millions, billions of dollars at their disposal are driven persons, with an innate need to always be creating businesses. Living in Belize, keeping their money in Belize would have a spinoff of creating local business employment and jobs and industry, similar to a person shopping in a supermarket, that goes with a list of 5 items and comes back with a basket full of two dozen purchase. It is the impulse effect. You need those individuals living and keeping their money in Belize. The impulse effect of a 1000 such individuals would do more for Growth Economics than any other factor dreamed of by our government. Creating the conditions for it to happen. The (Belizean Mr. Dart living in Cayman Is. and the Mr. Ashcroft living in Bermuda) does not have to be. Panade shops, small farms are important for the economy because they provide self employment and jobs, but they do not promote Growth Economics. Policies geared to small local business are important for the job situation, but Growth Economics, government treasury receipts and new infra structure can only be created by large influxes of expertise and money from wealthy individuals. With a proven financial track record. This means creating a situation to encourage such persons to live in Belize.

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