Prime Minister Drew Promotes World Bank-backed Fair Share Initiative Originally Proposed by Dr. Hon. Timothy Harris

The dual-island nation of St. Kitts and Nevis is embarking on a significant journey towards establishing a more equitable revenue sharing agreement between its two constituent islands. This move, spearheaded by Prime Minister Hon. Dr. Terrance Drew, aims to solidify the bond between St. Kitts and Nevis by ensuring a fairer distribution of the nation’s wealth, thereby promoting long-term stability and shared prosperity. The government has enlisted the expertise of the World Bank to oversee this crucial process, lending an air of impartiality and international best practices to the proceedings. An independent body, facilitated by the World Bank, will be entrusted with the task of developing the fair share agreement, ensuring that the final outcome reflects the best interests of all citizens of both islands.

The impetus for this initiative stems from the evolving economic landscape of the Federation, particularly the rise of non-taxable revenue streams, most notably from the Citizenship by Investment (CBI) program. While the existing constitutional framework addresses the distribution of taxable revenue, the advent of the CBI program and other similar non-taxable sources has created a gap in the existing framework. This necessitates a revised agreement that comprehensively addresses the allocation of all revenue streams, both taxable and non-taxable, ensuring that both St. Kitts and Nevis benefit proportionally from the nation’s economic growth. The government’s commitment to good governance and fiscal responsibility underscores the importance of this initiative.

The decision to involve the World Bank represents a significant step towards transparency and fairness. The World Bank’s role is to facilitate the creation of an independent body that will develop the fair share agreement, bringing a level of neutrality and international expertise to the process. This move is expected to instill confidence in the outcome, ensuring that the final agreement is perceived as legitimate and equitable by all stakeholders. The involvement of an independent body will also provide a platform for open dialogue and collaboration between the two islands, allowing for a more comprehensive and inclusive approach to resolving this long-standing issue.

The journey towards a fair share agreement has not been without its challenges. A similar proposal was put forth in 2022 by former Prime Minister Dr. Hon. Timothy Harris, but it faced resistance from then-Premier Mark Brantley. Premier Brantley initially downplayed the complexity of the issue, suggesting that a simple agreement could be drafted without external intervention. However, in a notable shift in perspective, Premier Brantley now fully supports the involvement of the World Bank, recognizing the complexities of developing a robust and sustainable revenue sharing framework. This change in stance underscores the growing consensus on the need for a comprehensive and impartially crafted agreement.

The Prime Minister acknowledges the significance of this undertaking and has appealed to the citizens of both islands for patience as the process unfolds. He emphasizes that the government’s commitment to getting it right outweighs the need for haste. The engagement of the World Bank and the establishment of an independent body signifies the government’s dedication to creating a lasting solution that reflects the principles of fairness and equity. The Prime Minister’s message highlights the importance of transparency and collaboration in addressing this complex issue, emphasizing the long-term benefits of a well-structured and equitable revenue sharing agreement.

In sum, the pursuit of a fair share agreement between St. Kitts and Nevis represents a pivotal moment in the nation’s history. The government’s commitment to transparency, evidenced by the involvement of the World Bank, is a testament to its dedication to good governance and equitable resource allocation. The creation of an independent body to spearhead the development of the agreement further strengthens the integrity of the process, ensuring that the final outcome is both sustainable and reflective of the needs of both islands. This initiative underscores the importance of collaboration and open dialogue in addressing complex national issues and sets the stage for a future of shared prosperity and strengthened ties between St. Kitts and Nevis. The government’s commitment to getting it right, coupled with the expertise of the World Bank and the collaborative spirit of both islands, promises a fair and sustainable outcome that will benefit generations to come.