Better Business Climate, Crime Reduction and Infrastructure for Agriculture among IMF Structural Reforms

Jaime Guajardo

When looking at long term solutions to Belize’s crisis, the I.M.F. recommends several growth enhancement structural reforms. According to Doctor Guajardo, these are changes Belize can implement to boost the nation’s economic activity over time.  I.M.F. recommendations include improving the business climate to promote investment, addressing crime, and building resilience to climate change.  

Dr. Jaime Guajardo, I.M.F. Mission Chief of Belize

“The first one is the need to improve the business climate to promote private investment. Here the key initiative is improved access to credit, also lowering barrier to enter the produce market. So, if someone wants to create a new company and wants to produce, they should be able to do it quickly and bring competition. There is also need to invest in key infrastructure. For example, another discussion that we had during the mission, it was mentioned that the agricultural sector gets affected because infrastructure is not adequate. Not only is the development of the agriculture is being harmed by this, but also the connectiveness between tourism sector and agriculture. Hotels, for example, are importing products because they do not have the assurance local products are going to be distributed in their due date with the quality that is required. Part of that is because of infrastructure. Then for the medium term there is a social need to improve education and the human capital, and that will lead to high growth. The last point on improving the business climate. Something that we also have mentioned for several years now is the need to implement policies to reduce crime.”