Competitiveness and long-term growth of the Suriname economy

Abstract

This chapter examines the structural changes in the Suriname economy during the 20th century, from an essentially agro-based economy up to the 1940s towards a mining economy, dominated by the bauxite sector. The boombust cycle of the bauxite and aluminium market has had a significant impact on the economy since the Second World War. Suriname's golden years, with strong investment and production expansion in the bauxite sector, occurred during the 1940-1980 period. Since 1980, real income per capita has tended to decline, and the performance of the economy has been unsatisfactory. The chapter argues that poor macroeconomic management and the overall political and governance context has hampered growth and competitiveness of the private sector, and consequently of the economy at large. Comprehensive reform will be required to meet the formidable challenges ahead.