Seychelles Economy:
Small (40 approximately 000 employees) and geographically isolated, the Seychelles economy is based primarily on two sectors of tourism (with more than 120,000 visitors per year and 25.4% of GDP) and fisheries which represents 7.65% of GDP in 2008. The activity of oil transportation is gaining importance as the third sector generator of foreign exchange (35 Million of annual net income).
reinvestment of those revenues and international aid have resulted in a remarkable development in the Seychelles in the 70 and 80. After independence (1976), GDP per capita has increased by 8 in 20 years: it reached U.S. $ 8,600 in 2007, making Seychelles a Middle Income Countries (MICs) of the top. The consequences of the international crisis and the implementation of economic reforms, however, reduced that amount to $ 6,700 per capita in 2008. The level of social development (housing, schooling, social security benefits) is also very high.
For reasons both external and internal, financial situation has deteriorated since the 90s. Seychelles has accumulated arrears vis-à-vis public funders and are heavily indebted to non-concessional terms from private banks (40% of external debt is now a commercial nature), total public debt representing nearly $ 807 million. The Seychelles
having found in mid-2008 in a state of insolvency, the normalization of external financial relations has become inevitable and a reaffirmation agreement was approved by the Board of Directors IMF November 14, 2008, .. Previously, the Seychelles had decided to free conversion of the Seychelles rupee, implemented on 1 November 2008.
James Michel has kept the schedule he had set about the economic actions to take mid-term. This ambitious program implements an immediate way the essential demands of the IMF (whose "resignation" of the Governor of the Central Bank, obtained in October 2008). The program was based in particular on the bet that the price of the rupee would stabilize quickly to a level close to the parallel rate (actually it was quickly stabilized around 20 to 21 SR for 1 € then to 18/19 SR for 1 €, the former parallel exchange rate) and the cost for the population will be manageable and socially acceptable (no social unrest is so far to report).
Given this progress, the IMF agreed in November 2008 the grant of 25.9 MUS Seychelles to help the country meet its financing needs for 2008. On April 16, 2009, the Paris Club has also approved the cancellation of 45% of the public debt of Seychelles in respect of its members.
The economic reform policy has been pursued by a series of internal and external audits major parastatal corporations governed far the Seychelles economy. A major tax reform is announced shortly.
" fishing and tourism" winning duo of Seychelles!
Victoria became the largest transshipment port in the world with more than 200,000 tons of tuna unloaded and canned in a canning last cries " Indian Ocean Tuna Factory". They produce 12% of cans of tuna sold in Europe.
With a consumption of fish 85kg/pers/an Seychellois are world champion material.
Following the colossal country's debt (175% of GDP) "the highest in the world!", Seychelles had to call in the IMF (International Monetary Fund), which allows a country struggling to draw from in order to redress the balance its finances. Without following the devaluation of the rupiah between 2007 and 2008 (1 € = 22srp) To maintain in 2009 to € 1 = 15srp. And the tourist can pay in rupees again all purchases and hotel stays. This has definitely put an end to rampant black market in Seychelles in recent years. Seychellois now having access to foreign currency, but at the same time they have suffered increases in water, gas, electricity and transport. To avoid undermine tourism by increasing the price of tourist services, the government has asked hoteliers not to pass these increases on prices overnight, the influx of tourists is already constrained by the global fiscal crisis.
Remarks by EU Commissioner for Fisheries and Maritime Affairs Joe Borg
My visit to Seychelles made me understand even better the role of the rule of law in setting a framework conducive to sustainable development. The European Union and the Seychelles have maintained long-standing relationships in the field of fisheries: their first agreement in 1987. The partnership agreement currently in force in this sector is at the heart of the provisions governing the activities of the European tuna fleet in the Indian Ocean. It is also the source of substantial benefits for society and the economy of the Seychelles. However, the recent upsurge in acts of piracy committed on the basis of the Somali coastal waters in the whole region begins to threaten not only the fisheries of the Seychelles, but could also undermine the economic security and the country's food. The
fishery products are the primary source of exports of Seychelles. But today, the crews are reluctant to sail to monitor migratory tuna stocks, for fear of being victims of piracy. But effective control of the huge exclusive economic zone of Seychelles would be a daunting task, even for a country much larger and richer. The impact on the entire economy could be significant and might even endanger the courageous economic reform strategy recently adopted by the government. The European Union looks currently the best way to meet the demand of Seychelles, which has requested the extension of the operation of naval protection of the Union to the Somali coast waters.
However, this problem can be solved will be terminated when the anarchy in Somalia and that country's institutions work again. Therefore we must adopt a comprehensive strategy in this regard. That is why the EU is committed to continuing its support to peace efforts in Somalia. In addition to development assistance and humanitarian aid it already provides, the Commission promised additional funds in connection with the international donor conference for Somalia, held in Brussels in April 2009.
I could make my own idea current problems in the control of fishing by going aboard a ship of the regional monitoring and surveillance run by the Indian Ocean Commission and funded by the European Union. In addition to his own use, this program is promising in terms of enhanced regional cooperation.
Experience in the area we serve during the debate that we will take the form future foreign policy and cooperation with our partners, especially developing countries, as part of the forthcoming reform of the CFP.
The problems facing the Seychelles suggests that the path will not be without difficulty. However, interlocutors I met were clearly determined to overcome them. Here, as in other parts of the world, the EU is ready to assist its partners in trouble and I will continue to monitor issues relating to fisheries and maritime affairs.
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