Amid the mix of perennial, long-term issues and new ideas, the administration’s Strategic Policy Statement plans to build infrastructure that will diversify the economy. It’s a combination of physical projects, such as building new roads, with theoretical concepts, like the digital transformation.
The Submarine Cable Modernisation Project aims to find a long-term solution to Cayman’s dependence on two ageing subsea data cables. By enhancing the “resilience of critical information and communications technology infrastructure”, the project could also enable a key economic diversification aim: “implement digital transformation”.
Likewise, the National Beach Resilience Plan is an infrastructure project that will support the proposed update to the National Tourism Plan. Other tourist-related concepts that will overlay the infrastructure support include eco-tourism, a focus on the Sister Islands and cultural tourism.
Long-term challenges
Much of the document, which focuses on 2026 to 2028, repeats long-standing aims that were mentioned in previous administrations’ policy statements.
Affordable housing remains a key challenge for this government, just as it did for governments past. One way this administration hopes to help lower-income Caymanians buy houses is by offering government guarantees to make mortgages more accessible. Another measure in the document is to build more affordable housing.
Again, this will be underpinned by infrastructure, with multiple real estate experts highlighting the need for the East-West Arterial extension to open up less expensive land for the development of affordable housing. However, environmentalists and government bodies are still in disagreement over the potential route.
Other perennial challenges mentioned in the Strategic Policy Statement is renewable energy adoption and the need to find a solution for the landfill.
Upgrading general infrastructure to make it more climate-resilient is also an ongoing issue.
Ambitious concepts
Not all of the government’s plans are underpinned by infrastructure. There are many regulatory or conceptual improvements identified in the statement that could have even greater impact than a new road or cable.
The Strategic Policy Statement highlights a cluster of policies to make Cayman’s external trade more efficient. There is a plan to “enhance existing trade routes and explore the establishment of new trade partners”. A Trade Development Framework will look to reduce import costs while commerce legislation will be improved. Finally, a proposed ‘Made in Cayman’ certificate aims to support local producers.
“All of the government trade suggestions make sense,” says Simon Cawdery, director at HLX Management. “The quickest, simplest way to reduce import costs and make trade more efficient would be to cut the import duty on the everyday items that people consume, for example, fruit and vegetables.”
Another lofty target is to earn qualified jurisdictional status from the US National Association of Insurance Commissioners.
“[Status] is important because it affirms that Cayman’s regulatory framework meets US standards for solvency, oversight and cooperation,” said Steven Papciak, of the Cayman International Reinsurance Companies Association. “It strengthens confidence among US regulators and insurers, making it easier for Cayman reinsurers to do business with US counterparties and reinforcing the jurisdiction’s credibility as a well-regulated international reinsurance centre.”
Overall, the Strategic Policy Statement outlines a comprehensive vision that would improve Cayman’s economy, says Cawdery. But the true challenge isn’t writing the ideas down but making them happen.
“Goals and ambitions are great,” said Cawdery, “but will government also recognise that the public and private sector (both domestic and foreign) is not an endless fountain of taxation opportunity. It needs to recognise the inefficiency within the system, cut costs and streamline processes that currently hamper economic activity and then the public will give more credibility and respect for government spending plans.”
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