SideBar: Co-chairs of the driver group Diversify the Economy 

This is the fifth and final installment in a series of interviews highlighting the people involved in the Future of Cayman Economic Development initiative. Interview with Jonathan Piercy and Johann Moxam, co-chairs, Diversify the Economy driver group.

Q: Why do we need to diversify the economy?

Johann: Diversifying the economy makes sound business sense. We must continue to improve our attractiveness and competitiveness in the financial services and tourism sectors, but we must also accept that these industries will continue to be impacted by the changing global environment.

We are all experiencing the fall-out from the prolonged global recession and we cannot continue to rely exclusively on financial services and tourism. Economic diversification is critical in today’s market and we need to examine new industries that will enhance our existing economy and create new jobs and business opportunities for Caymanians.

There is a need to develop a national investment strategy and that is one of the actions that our group will be working to develop along with key government policy makers. Our islands enjoy excellent infrastructure, professional and legal services and accommodations so we can leverage these strengths to attract new industries.


Q: What are the main objectives of your driver?

Jonathan: There are three main objectives that our group is meeting to achieve. We are working to promote business development as a vital strategy for Cayman future success. We believe we can leverage Cayman’s legal and physical infrastructure to attract and retain investment and business development.

We are also trying to attract new industries and grow globally competitive
business, investment and tourism that can create new jobs and business opportunities. The three Cayman Islands have much to offer to investors.


Q: What are the next steps to achieving the objectives?

Johann: The driver group members will be meeting this month to develop a work plan so we can complete the actions identified in the strategic report for each objective. There will be a fact finding period so that the group is fully informed of the existing policies that have been introduced and adopted by Government for inward investment and business development locally.


Q: What are the benefits of diversifying the economy?

Jonathan: Diversifying the economy broadens the business base for the Cayman Islands. It opens up new business and career paths for Caymanians. We have discussed ways to diversify the economy for years but because our two main industry sectors have performed so well until recently there was no urgency to examine new industries.

There are also benefits of examining our existing sectors with the view of introducing new policies and procedures that would be attractive to segments of the financial services and tourism and development sectors. The ultimate benefit is that more jobs will be created in all areas of the economy that are important to the skilled and unskilled segments of our society.

Any diversification strategy must accommodate all audiences so that the wealth is shared across the islands.

Johann: Diversification benefits everyone. It is never smart to place all the emphasis on three pillars that are constantly exposed to the global shocks that seem to occur on a regular basis. Our objective is to retain and expand existing industries while at the same time attracting new industries that can be introduced gradually to soften the external shocks. Another benefit of diversification is that the process forces us to examine the current conditions for business and investment. Are we competitive in our existing industries?

• What policies and procedures need to be put in place to attract new industries?
• What are the infrastructural requirements?
• Do we have business friendly policies and procedures?
• Will the new industry be appealing and beneficial to the local workforce and business community?
• Diversification will also allow us to develop growth and human capital strategies so that we can put in place the required funding for any required infrastructure that will be necessary to accept new industries.

These are all questions that the group will be examining. Several of our objectives relate to the other driver groups. Each of the five drivers is dependent on each other if we are going to develop a society that is appealing for everyone.


Q: Are you still accepting volunteers to serve on the driver group?

Johann: Anyone wishing to volunteer to serve on the group can contact either Jonathan or myself or contact the Chamber of Commerce office.  We welcome individuals from the public and private sectors to become involved.

There is a considerable amount of work to be completed, but we are already seeing progress on several fronts including the recent passage of legislation establishing special economic zones. Medical tourism is also progressing so it will be important for us to understand the implications of adding these new sectors to our economy.


Q: Why have you become involved in the initiative?

Jonathan: Diversification is our future. We must think outside the box and expand our traditional product lines and attract new industries that will create sustainable jobs and opportunities for Caymanians and residents.

This is our home and we must work together to ensure that we remain successful and prosperous. I believe that this strategy relates well with my new role at the Department of Commerce and Investment. It allows me to interact with the private sector at a much more strategic level and to discuss issues and concerns and to develop solutions.

This initiative also allows the public and private sectors to meet more regularly and to agree on some key objectives that will produce lasting results. It is an exciting initiative and I’d encourage anyone who is interested in developing new and improving our existing sectors to get involved.