Caribbean countries could benefit from proposed NYC Pension Fund

PM Thomas & NYC Comptroller Liu

NEW YORK, January 11, 2012 - A major investment initiative designed to spur economic and social development in the Caribbean and boost New Yorkers’ public pensions is being considered by the office of New York City comptroller.

And it is being done at the urging of the Caribbean American Chamber of Commerce and Industry, CACCI and with the active interest of Caricom.

A statement from the CACCI said the proposed scheme “is an initiative which, if successfully launched, would involve the use of pension funds in profitable and employment generating ventures in the Caribbean, and bring healthy returns to the City.”

The proposal was made when Grenada’s Prime Minister, Tillman Thomas, then chairman of Caricom, visited New York to address a high-level United Nations meeting on HIV/AIDS, and participate in the Caribbean Tourism Organisation’s week of marketing activities that promoted the region’s lucrative tourism industry, and to be honoured by the chamber.

During his visit, he met with New York City Comptroller, John Liu, and discussed the potential financial benefits to the City and the prospects of development in the Caribbean through the investment of pension funds. “The New York City comptroller has fiduciary responsibility for the efficient management of billions of dollars in New York City pension funds and therefore must ensure that due diligence is done before any steps are taken,” said Dr Roy Hastick, the chamber’s founder, president and a driving force behind the initiative.

“The proposal to invest some of the funds was first articulated by William Bill Thompson and it is being considered by Mr. Liu, his successor. When the Grenada leader and Caricom chairman came to the City, we were able to schedule a meeting with him and the comptroller, during which we explored the feasibility of providing interest-bearing loans to the Caribbean nations, in much the same way that pension funds are being used for investment purposes in Europe and elsewhere.

“We at the chamber had previously discussed the proposal with both Mr Thompson and Mr Liu, and we are convinced that if implemented, it can be mutually beneficial to the City and to the Caribbean,” Hastick added. During the meeting which was also attended by New York City Council member Jumaane Williams, a Democrat of Brooklyn, the prime minister spoke about the economic benefits the low-interest loans would create in the region.

“It was a productive session and the chamber is happy with the results,” said the CACCI president. It was agreed that follow-up sessions would be held with stakeholders to develop a sustainable and practical plan of action. “It was recognised that the highest possible financial management standards must be adhered to at every step.”

With more than a million people from across the Caribbean now living and working as taxpayers in the New York metropolitan area, many of them contributing to the pension funds, the Caribbean nations and territories should be considered as an area of investment by pension fund managers, added Dr Hastick.

”The chamber and the broader Caribbean immigrant community in and out of New York City believe it represents a realistic and viable proposal which should be pursued,” he said. “Our organisation considers an honor to have been able to facilitate the meeting with the assistance of council member Jumaane Williams, and to have both the Caricom chairman and the comptroller explore the chances of taking such investment possibilities to the Caribbean.

The prime minister was certainly satisfied with the outcome. “We believe the Caribbean Development Bank could be used as a channel for the investment. The Caribbean Development Bank (CDB) has an investment grade rating from Wall Street.”