WILLEMSTAD - The Curaçao country package as part of the Caribbean reform plans of the Netherlands has four thematic areas: government and finance, economic reform, healthcare and strengthening the rule of law.
The yet to be established Entity for Reform and Development will implement the Curaçao country package as coherent programs. Although prioritization in implementation is desirable and necessary, and there are differences in the magnitude of the effects of reforms, only an integrated approach will be able to provide the necessary trend break with the past.
Economic reforms
The IMF, research reports from various institutions, the CFT, and civil society organizations have long and insistently pointed to the need for economic reforms. The rigid labor market and unfavorable business climate are structural obstacles to economic growth.
The social security systems do not contain enough incentives to encourage labor participation, nor the securities to manage social problems. They also become (in the long term) unaffordable. These obstacles must be removed so that the countries' economic potential can be better utilized.
The reforms and measures related to the economic reforms must lead to a resilient, dynamic, and strong economy and a robust affordable social security system, which puts the incentives in the right place.
Measures
An integral analysis of the current labor market policy, legislation and regulations will be carried out, on which the labor market policy will be updated and modernized.
Measures such as reduced working hours, part-time working, fixed-term contracts, relaxation of dismissal law, removal of obstacles to recruiting foreign workers, illegal employment and combating youth unemployment will be included in the analysis.
Based on this, proposals are developed and implemented. In any case, it will be discussed that the informal economy and illegal labor are being combated. Illegal employment of foreign workers must also be combated.
The provision of social security will have an activation function, with the right incentives, while at the same time ensuring an adequate social safety net. Proposals will be developed and implemented based on existing and / or additional research.
The retirement age will be raised to 67 years (66 years in 2023 and 67 in 2025) and pension schemes will be based on average salary instead of final salary.
Entrepreneurship and the investment climate will be promoted. Among other things, it is important that the licensing system is optimized, the cost of doing business is reduced, and bureaucracy (red tape) is removed.
Proposals will be developed and implemented based on an integral review of (among other things) legislation and regulations.
Country policy and spatial planning policy will also be developed and implemented.
