The Ministry of Telecommunications, Science, Technology and Industry is the principal institution responsible for shaping Government’s policy in respect of the country’s industrial development. Through the Industry Division, it monitors and assesses the national, regional and international business environment, so as to interpret their influence on national efforts and inform policy decision accordingly.

The economy of St. Vincent and the Grenadines has undergone structural changes since the mid 1990s.  The contribution of agriculture to Gross Domestic Product (GDP) declined significantly after 1993 mainly as a result of price and marketing problems faced by the Banana Industry, in addition to the decline in the pound sterling resulting in lower revenue for banana exports.  The advent of the rules based World Trade Organisation (WTO) with doctrines of trade liberalization and the end of protectionism, meant that the country’s major earner of foreign exchange, bananas, which was sold in a protected market in the United Kingdom; now faced competition in price and quality from dollar bananas in Latin America.

Manufacturing, which was never a major contributor to begin with, but nevertheless provided much needed employment in enclave assembly-type industries, declined further as international market conditions for the products and lack of competitiveness led to the closure of several industries at the Campden Park Industrial Estate.

During the latter half of the 1990s the tourism sector began to emerge as both a major employer and earner of foreign exchange.   The Hotels Aid Act of 1989 no doubt provided the fillip for this growth.  Tax-free importation of material for upgrading of plant and services was a major factor in this development.

By the end of the 1990s it became clear that economic diversification must be pursued as a policy initiative in both the medium and long term.  It was seen that the country’s comparative advantage would lie in the area of services and that the non-tourism services sector must play a leading role.  The sector was targeted to provide jobs and government revenue.  Financial and telecommunication services were targeted to lead the diversification thrust.

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