DEFINING THE RE-LAUNCHING POINT St. Vincent and the Grenadines is an archipelago in the Eastern Caribbean Sea comprising of 32 islands and cays. SVG is spread over 340 square kilometres. The population is concentrated in St. Vincent itself and dispersed across other islands such as Bequia, Union Island, Canouan, Mayreau, Mustique, Palm Island, and Petit St. Vincent. The country is a traditional small open economy which is highly susceptible to external economic shocks and natural disasters such as hurricanes. It relies heavily on agriculture, tourism, and construction as the major contributors to the economy. The population, estimated at 106,000 in the 2001 census and 118,000 (estimated) in July 2009, has a flat growth rate with migration matching natural growth. Unemployment was officially estimated at 15% and the country has a per capita GDP of US$ 5,335 (2009). The total labour force has been estimated in 2009, as 53,888. Foreign direct investment and domestic investment account for some 32% of GDP, which grew from just over US$ 1 billion in 2003 at an annual growth rate of about 11%, to an estimated US$ 1.5 billion in 2007. The country’s mainstay continues to be agriculture, predominantly bananas, which contribute about 50% of the total goods exported. However, over the last few years, agriculture and particularly the banana industry, declined significantly due to the erosion of European Union (EU) preferential market access for bananas, the impact of negative weather shocks, and disease. Despite the introduction of better irrigation and upgraded infrastructure, banana export earnings and volumes continued to fall, from EC$ 89.51 million in 2003 to EC$ 28.83 million in 2004. Agriculture is being gradually replaced by improved growth in the services sector - largely through developments in tourism. The % contribution of the agricultural sector to Real Gross Domestic Product fell from 11.66% in 2002 to 9.28 in 2006. The country’s main revenue is now determined by the level of tourism receipts and some foreign direct investment, and as such, the expansion of the tourism sector is being accelerated as part of the national development agenda. SVG has a small manufacturing sector and a small offshore financial sector. Fisheries and manufacturing production have also expanded and are contributing to economic growth. NATIONAL STRATEGY AND ACTION PLAN 2002-2007 Recognising these challenges, Government has for many years been actively pursuing the 1.1 development of alternate mechanisms to promote economic development, including the use of ICT. In 2001, the Government of St. Vincent & the Grenadines developed its first National Strategy and Action Plan 2002 – 2007. During the development process, assessments were conducted to establish the status of ICT development In SVG. Some of the resulting highlights are now presented below. Governance is a critical pillar of any national ICT plan. With the change in Government on 28th March 2001, a new Ministry for Telecommunications, Science, Technology and Innovation was established. Government appointed an Information Communication Technology Advisory Council (ICTAC) as the lead advisory agency on development and implementation of ICT. Both of these organisations are critical contributors to successful implementation. By 2002, the regulatory framework for telecommunications was well underway. An agreement was achieved with the incumbent, licenses were issued and regulations published. The regulator began pursuing internal capacity building and engaging in knowledge transfer. “Strategies for the use of ICT are not universal. St. Vincent and the Grenadines faces different circumstances, financial means and priorities and will need a specifically tailored strategy. Nevertheless a strategy that focuses its ICT interventions towards achieving developmental goals is more likely to achieve marked socioeconomic development.” Defining the Re-launching Point P a g e | 15