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President Michel’s new economic council has its work cut out

President Michel has appointed a new body to be called the National Economic Planning Council (NEPC), according to a government communiqué published Monday. But the new body, which supersedes two previous bodies also appointed by Mr Michel, has its work cut out by the latest IMF report and its recommendations.

The NEPC supersedes a previous body, also appointed by Mr Michel in 2003, called the Economic Commission. That body worked in mysterious ways, while the economy continued to decline. It is reported in the grapevine that it sent recommendations to Mr Michel on how to tackle the worsening economic and monetary crisis but they were totally ignored. The Economic Commission never met again since.

The NEPC also supersedes another body created by President Michel in 2005 called the National Economic Council (NEC) made up of a handful of handpicked local individuals involved in business or managing local companies, which Mr Michel claimed represented the private sector. This body met a couple of times at State House. It turned out to be only a talking shop intended to give the illusion of consultation.

This time the new body will be made up of Michel himself, Vice-President Belmont, the new Finance Minister Danny Faure, Minister Jacquelin Dugasse and the Governor of the Central Bank, as well as a few chosen but rather controversial individuals – two of whom run parastatal monopoly companies while owning and forming part of private businesses on the side, whereas two others manage private sector enterprises that have been given special economic privileges and concessions to operate in Seychelles, to the exclusion of other local enterprises. Other members include an employee of the local Barclays Bank, a foreigner who is the local director of the five star Banyan Tree hotel and another foreigner who heads the new company which bought the interests of Heinz Foods Europe but who resides in Italy.

According to the official communiqué the new body has the following objectives:

- Review the overall economic situations

- Review the implementation of development projects

- Advise on matters relating to the country and global economic policy

- Coordinate national economic policy-making process with respect to domestic and international economic issues

- Ensure that economic policy decisions and programmes are consistent with the national stated goals

- Monitor implementation of the economic policy agenda

- Develop long-term economic strategies

- Coordinate economic policy advice

- Identify sources of growth and devising policies that support and encourage growth in those sectors

- Be responsible for the medium and long-term economic planning.

But the NEPC has had its work cut out by the IMF report. Alongside this story we publish in full the IMF directors own memorandum on the state of the Seychelles economy, submitted to Mr Michel earlier this year. In the coming weeks in these columns we will be publishing further excerpts from the IMF report including their recommendations on what needs to be done immediately and in the medium term.

While President Michel’s NEPC is a body in search of a problem or problems, the real economy of Seychelles, upon which Mr Michel has presided over the last 15 years, is a serious problem in search of serious solutions. Even with his own mandate, it seems, President Michel cannot make the decisions a President must make.

Ultimately, the buck has stopped with James Alix Michel whether he likes it or not. But President Michel ignores the IMF’s findings and recommendations to our country’s, its people’s and his personal integrity’s perils.

Editor: Readers who have internet connections can download the entire IMF report on our website www.seychellesweekly.com.