[{"bbox": [81, 121, 1148, 203], "category": "Text", "text": "Bonaire recognises the importance of producing good quality progress reports and data and may need to be supported by external expertise. In this respect, complementary measures may support to ensure that the policy is strengthened with a quality monitoring and evaluation framework and a reporting system."}, {"bbox": [81, 222, 1163, 280], "category": "Text", "text": "A current weakness and key recommendation to follow-up is that there are currently no policy implementation progress reports done. The relevant policy documents related to the water are still under preparation."}, {"bbox": [81, 294, 1163, 385], "category": "Text", "text": "As evidenced by the successful implementation of the 10th EDF budget support programme in the same sector, the policy is assessed as credible in terms of the track record in implementation, financing, institutional capacity, ownership and the quality of data and analysis underlying the sector strategy."}, {"bbox": [81, 399, 1163, 489], "category": "Text", "text": "**In conclusion, the policy is sufficiently relevant and credible for budget support contract objectives to be largely achieved. Therefore the policy can be supported by the Commission with the proposed budget support programme.**"}, {"bbox": [81, 516, 376, 545], "category": "Section-header", "text": "### 2.3.2 Macroeconomic Policy"}, {"bbox": [81, 561, 1163, 711], "category": "Text", "text": "The Government of Bonaire pursues policies oriented to maintain macroeconomic stability, in coordination with the Dutch Ministry of Interior and Kingdom Relations. Monetary policies are limited (Bonaire uses the United States dollar) so securing fiscal stability is the main instrument. Another stability-oriented policy is the monitoring of Bonaire's competitive position among the neighbouring Caribbean islands in terms of attractiveness, investment climate and environmental protection."}, {"bbox": [81, 726, 1163, 816], "category": "Text", "text": "The key economic sectors in Bonaire are the public sector, real estate, tourism and financial services, with tourism as the driver of the economy. Of all private businesses on Bonaire, 77% serve the tourist industry.²¹ Tourism consists of two segments: the stay-over tourists; and the day-tourists disembarking cruise ships."}, {"bbox": [81, 831, 1163, 1042], "category": "Text", "text": "Due to its heavy reliance on tourism, Bonaire's economy is vulnerable to external shocks, as evidenced by the COVID-19 pandemic that made tourism grind to a halt in March 2020. Between 2012 and 2019, the GDP per capita had increased from USD 21700 (approx. EUR 16 439)²² to USD 25 400 (approx. EUR 22 883), but it dropped in 2020 by 8%, before recovering again in 2021 to USD 23700²³ (EUR 20 881). A World Bank Study²⁴ calculated that the Bonaire economy lost USD 58 000 000 (EUR 47 000 000) in income from tourism over the year 2020. The economy is also vulnerable due to the goods it has to import. The consumer price index showed an average increase of 1.8% per year between 2010 and 2019, but prices increased by 9.2% in 2022, in particular fuel, gas and food products.²⁵"}, {"bbox": [81, 1056, 1163, 1238], "category": "Text", "text": "The financial support provided by the Dutch central government during the COVID-19 period (approx. USD 67 400 000 [approx. EUR 59 500 000], or 12.9% of GDP) has proven to be effective at counteracting a deeper recession. Approximately 1,100 businesses (37% of the total) made use of the support measures. Apart from such a sudden shock, the island's economy is sensitive to a variety of external threats, such as the world economic situation, especially tourism and prices of imports, the economic and political situation in Venezuela and climate change consequences. Changing rainfall patterns and seawater temperatures degrade coral reefs and indirectly impact the tourism sector."}, {"bbox": [81, 1252, 1163, 1372], "category": "Text", "text": "Bonaire's trade deficit (USD 282 000 000 [approx. EUR 249 100 000] in 2021) is increasing, due to limited exports (mainly salt for USD 10 000 000 – 12 000 000 [approx. EUR 8 800 000 – 10 600 000] annually). In 2020, Bonaire experienced larger trade deficits for most categories of goods, including goods for dealing with the crisis. The trade deficit rose by 40% over a period of five years."}, {"bbox": [114, 1416, 1144, 1513], "category": "Text", "text": "With regards to water quality: analysis is done on a daily basis by the WEBB itself. Currently there are no norms regarding quality of (treated) wastewater; these norms form part of the Wastewater Vision and the subsequent Wastewater Plan (to be elaborated). Water quality of surface and seawater is done at regular intervals. Improvement of equipment and facilities to that end form part of the budget support programme."}, {"bbox": [85, 1512, 1143, 1560], "category": "Footnote", "text": "²¹ Source: World Bank Business Survey 2020. In: World Bank (2021). COVID-19. Post-Disaster Needs Assessment Bonaire. Socioeconomic Assessment, March–December 2020. P.15."}, {"bbox": [85, 1560, 543, 1585], "category": "Footnote", "text": "²² Exchange rate: end of year European Central Bank."}, {"bbox": [85, 1584, 498, 1609], "category": "Footnote", "text": "²³ Source: CBS Caribbean Netherlands. Statline."}, {"bbox": [85, 1608, 1143, 1656], "category": "Footnote", "text": "²⁴ Source: World Bank (2021). COVID-19. Post-Disaster Needs Assessment Bonaire. Socioeconomic Assessment, March–December 2020. P.28."}, {"bbox": [85, 1656, 494, 1681], "category": "Footnote", "text": "²⁵ Source: CBS Caribbean Netherlands. Statline."}, {"bbox": [1038, 1682, 1143, 1707], "category": "Page-footer", "text": "Page 8 of 25"}]