National ICT Strategic Plan Government of St Kitts and Nevis 9. Loss of competitiveness: There is increasing evidence of loss of international competitiveness, especially in the manufacturing and agricultural sectors. 10. Lack of food security: As a physically small developing country with limited capacity for producing food to satisfy domestic demand, St Kitts and Nevis is categorised as a Net Food Importing Developing Country. 11. Demographic trends: St Kitts and Nevis has an ageing population with almost zero growth. This means that the work force will be required to support an increasing number of retired persons. Our ageing population therefore makes for a large dependency ratio. Threats 1. Trade liberalisation: This poses a number of competitive challenges to St Kitts and Nevis, especially in the sectors of manufacturing and agriculture because of the availability of cheaper imports. 2. Financial and capital market liberalisation: This presents a challenge to St Kitts and Nevis’ fixed exchange rate regime and the degree of monetary autonomy. In addition, it provides greater avenues for money laundering and other financial crimes. 3. Global degradation of the environment: Greenhouse gas emissions contribute to global warming which has a very negative effect on our climate. The rise in sea levels is a distinct possibility with frightening adverse impacts for small island states such as St Kitts and Nevis. St Kitts and Nevis’ marine ecosystem is also threatened by the passage of radioactive materials through the Caribbean Sea. 4. HIV/AIDS, chronic non-communicable diseases, crime and drug abuse: These pose a serious challenge to the development of social capital, the linchpin of further economic growth. HIV/AIDS, although appearing in about 1% of the population is undoubtedly a critical health Ministry of Finance, Sustainable Development, Information and Technology November, 2006 13