When she was 12, she moved from her native Haiti to the United States.
At 25 her first novel, "Breath, Eyes, Memory," was published. This was soon followed by Krik? Krak!, a story collection that was nominated for the National Book Award.
By age 30, "The Farming of Bones," her third novel, was climbing the best seller list.
So who is this young woman with such a mature voice? Her name is Edwidge Danticat.
A graduate of Barnard College with a Masters of Fine Arts from Brown University, Danticat was named as one of the 20 "Best Young American Novelists" by Granta in 1996. She is also a recipient of a Lila Wallace-Readers Digest Foundation grant.
After reading two of her books, it is easy to understand how Danticat received such early acclaim. "Breath, Eyes, Memory" begins in Haiti. Sophie Caco is preparing for her journey to New York City, where she will be reunited with her mother. Aunt Atie, who has raised her since infancy, is helping her come to terms with why she must leave the only home she has ever known and live with a woman she barely remembers.
However, Sophie's real journey begins with relearning what it is to be a daughter. As she travels along the road from childhood to motherhood, we shares the secrets of her family and the political violence of the world she was born into.
Along the way we are introduced to the Haitian culture, traditions and to a country that is as beautiful as it is dangerous. We become involved with the conflicts between her two sets of beliefs and her struggle to make them one. Danticat's third novel is also set in this politically scarred, supernatural region. "The Farming of Bones" is a fictional account, based on history, told to us by a Haitian orphan.
Amabelle grew up in the Dominican household of wealthy landowner Don Ingacio as a servant to his daughter, Valencia. Her saga begins just prior to the 1937 massacre of Haitian immigrants by the military forces of President Trujillo.
Through Amabelle's eyes we experience this modern chapter of Caribbean history. We live with her through the indignity and barbarity of one people against another. We also learn about love, endurance and possibilities of a given lifetime. Again, Danticat paints a picture with her words that is intriguing and inspiring. It is a beautiful narrative of survival in a harsh environment. Both novels are a tribute to the strength and wisdom of Haitian women and to her native Haiti.
LOCKHART SIGNS WITH GUARDIAN, HERITAGE
Lockhart Caribbean Corp. expects to double its revenues with the acquisition of two insurance companies.
Lockhart bought Guardian Insurance Co. Inc., a U.S. Virgin Islands-based insurance company, and Heritage Insurance Ltd., British Virgin Islands company, on Dec. 31 for an undisclosed amount of cash and stock of Lockhart Caribbean, according to a press release from Lockhart Caribbean.
The two acquisitions had been announced previously.
They expand the financial services arm of Lockhart, which also includes Premium Finance Co. (Caribbean) Ltd. and Premium Finance Co. (E.C.) Ltd.
"The purchase of Guardian and Heritage is another important step in Lockhart's diversification into the financial services business in the U.S.V.I and throughout the Eastern Caribbean," said John P. de Jongh Jr., president and chief operating officer of Lockhart Caribbean Corp. Lockhart Caribbean is one of the oldest and largest real estate companies in the Virgin Islands.
Along with increasing revenues, the acquisitions advance Lockhart's planned expansion into the Eastern Caribbean, according to de Jongh.
Lockhart bought Guardian Insurance Co. Inc., a U.S. Virgin Islands-based insurance company, and Heritage Insurance Ltd., British Virgin Islands company, on Dec. 31 for an undisclosed amount of cash and stock of Lockhart Caribbean, according to a press release from Lockhart Caribbean.
The two acquisitions had been announced previously.
They expand the financial services arm of Lockhart, which also includes Premium Finance Co. (Caribbean) Ltd. and Premium Finance Co. (E.C.) Ltd.
"The purchase of Guardian and Heritage is another important step in Lockhart's diversification into the financial services business in the U.S.V.I and throughout the Eastern Caribbean," said John P. de Jongh Jr., president and chief operating officer of Lockhart Caribbean Corp. Lockhart Caribbean is one of the oldest and largest real estate companies in the Virgin Islands.
Along with increasing revenues, the acquisitions advance Lockhart's planned expansion into the Eastern Caribbean, according to de Jongh.
CABINET CHOICES REPORTEDLY NOT FINALIZED
Gov. Charles W. Turnbull has made no final decisions on Cabinet positions, a person close to his inner circle said Tuesday.
"Nothing's finalized," said this person, who spoke on condition of anonymity. "I believe Charles has put the names out there" — or allowed others to do so — "to get feedback. It's a political litmus test."
Reaction to many names that have surfaced, in print and privately, has been "mixed," this person said.
"But Charles hasn't called any of the people on the list yet, and until he calls you….."
People close to Turnbull expected him to announce several Cabinet-level nominations Saturday. When that didn't happen, they told people to look for them Sunday — including announcements of acting heads of some departments. But Sunday came and went with no announcements, and Monday and today have been consumed by inaugural activities.
Today is a holiday for St. Croix government employees but St. Thomas and St. John workers are supposed to be on the job. Neither Government House nor the Turnbull transition team has announced who's now in charge of various departments and agencies. Most Cabinet-level officials reportedly submitted their resignations last week.
Among those whose names have surfaced for Cabinet positions:
— Ruby Simmonds for Education commissioner. Reaction generally has been positive, including within the department.
— Clement "Cain" Magras for Tourism commissioner. Reaction has been mixed, with concern raised that he has no experience in tourism and, on St. Croix, that he might not be as sensitive to that island's needs as residents expect.
— Iver Stridiron or Arturo Watlington Jr. for attorney general. Reaction has been mixed to both.
— Keith Richards or Brian Turnbull for Planning and Natural Resources commissioner. Reaction has been negative to Richards from the business community, and mixed toward Turnbull.
— Ira Hobson for Housing, Parks and Recreation commissioner and — if Turnbull decides to consolidate departments and agencies — the Housing Finance Authority. Many people see this as a political payoff for his strong and early support of the Turnbull-James team but note that Hobson did not win accolades for his handling of the same post in the Schneider administration before he resigned in June.
"Nothing's finalized," said this person, who spoke on condition of anonymity. "I believe Charles has put the names out there" — or allowed others to do so — "to get feedback. It's a political litmus test."
Reaction to many names that have surfaced, in print and privately, has been "mixed," this person said.
"But Charles hasn't called any of the people on the list yet, and until he calls you….."
People close to Turnbull expected him to announce several Cabinet-level nominations Saturday. When that didn't happen, they told people to look for them Sunday — including announcements of acting heads of some departments. But Sunday came and went with no announcements, and Monday and today have been consumed by inaugural activities.
Today is a holiday for St. Croix government employees but St. Thomas and St. John workers are supposed to be on the job. Neither Government House nor the Turnbull transition team has announced who's now in charge of various departments and agencies. Most Cabinet-level officials reportedly submitted their resignations last week.
Among those whose names have surfaced for Cabinet positions:
— Ruby Simmonds for Education commissioner. Reaction generally has been positive, including within the department.
— Clement "Cain" Magras for Tourism commissioner. Reaction has been mixed, with concern raised that he has no experience in tourism and, on St. Croix, that he might not be as sensitive to that island's needs as residents expect.
— Iver Stridiron or Arturo Watlington Jr. for attorney general. Reaction has been mixed to both.
— Keith Richards or Brian Turnbull for Planning and Natural Resources commissioner. Reaction has been negative to Richards from the business community, and mixed toward Turnbull.
— Ira Hobson for Housing, Parks and Recreation commissioner and — if Turnbull decides to consolidate departments and agencies — the Housing Finance Authority. Many people see this as a political payoff for his strong and early support of the Turnbull-James team but note that Hobson did not win accolades for his handling of the same post in the Schneider administration before he resigned in June.
REGION REGISTERED 622 TREMORS IN 1998
The earthquake-prone Virgin Islands-Puerto Rico region reported 622 small tremors in 1998, the Associated Press has reported.
The strongest, on Dec. 7, registered 5.6 and was centered six miles south of Anegada. Most were so small that only seismographs could detect them. Thirteen were strong enough to be felt by residents of Puerto Rico, the U.S. Virgin Islands or the British Virgin Islands.
Most of the 1998 quakes were centered north of the Virgin Islands, in the Mona Passage between the Dominican Republic and Puerto Rico, and in southern Puerto Rico, the AP reported.
The most active month was April with 73 tremors.
The most active year this decade was 1993 with 820 tremors, followed by 1994 with 819.
Puerto Rico and the Virgin Islands are close to the boundary of two pieces of the Earth's crust, the North American plate and the Caribbean plate, the AP story noted. Pressure between the plates causes tremors.
The strongest, on Dec. 7, registered 5.6 and was centered six miles south of Anegada. Most were so small that only seismographs could detect them. Thirteen were strong enough to be felt by residents of Puerto Rico, the U.S. Virgin Islands or the British Virgin Islands.
Most of the 1998 quakes were centered north of the Virgin Islands, in the Mona Passage between the Dominican Republic and Puerto Rico, and in southern Puerto Rico, the AP reported.
The most active month was April with 73 tremors.
The most active year this decade was 1993 with 820 tremors, followed by 1994 with 819.
Puerto Rico and the Virgin Islands are close to the boundary of two pieces of the Earth's crust, the North American plate and the Caribbean plate, the AP story noted. Pressure between the plates causes tremors.
GOVERNOR TURNBULL'S CHALLENGE
Dr. Charles Wesley Turnbull was sworn in Monday as the sixth elected governor of the Virgin Islands.
His inaugural message focused on the theme he rode to victory in November: unity, respect, service.
It is a theme that has resonated with Virgin Islanders, as evidenced by his resounding two-to-one victory over Gov. Roy L. Schneider.
But Gov. Turnbull's challenge will be to translate his fine words and excellent sentiments into action.
Virgin Islanders want change.
They want radical change in the way this government does business, something Gov. Turnbull has promised to deliver. They don't want empty promises — we've heard enough of those over the years — and they don't want more studies — we've had more than enough of those — they want action.
They want the reins put on fiscal profligacy. Not mass layoffs, of course, but a systematic reduction in the cost of this government: a reduction in the workforce by attrition and by cutting all that fat at the top; elimination of all frills such as fancy cars and unchecked travel; a halt to double-dipping (including contracts for retirees who are collecting handsome pensions); and the introduction of government efficiencies such as privatized services that work elsewhere but have never been seriously tried here. They want an end to contracts for people who do little or nothing to earn those taxpayer dollars. They want an end to politics as usual.
They want basic services delivered regularly and reliably.
They want potholes filled. They want roadside brush cut and garbage collected and reliable electrical service. They want a competent, trustworthy police force that will protect them, inform them and solve any serious crimes that do occur.
They want more than lip service paid to our children. They want an educational system that educates its students well and doesn't make excuses for failure. They want productive, constructive after-school activities for children that will expand their horizons and keep them out of trouble. They want programs that will ensure that our children develop to their fullest potential — emotionally, intellectually, academically and socially — from birth to adulthood.
They want civility restored to the halls of government, and to our streets. They want an end to the bickering and arrogance and nastiness that too often have become the norm in our daily interactions.
Gov. Turnbull, a true and gracious gentleman, has promised to initiate these changes, and he has asked for the community's help. He seems to understand how important it is for him to set the tone and he says he will do just that.
He has promised to be the most humble and most respectful public servant in the V.I. government so that other workers will follow his example. He has promised to work hard, and to demand that others who collect public paychecks work hard too. He has promised to be open and accountable, and to make sure others in his administration are open and accountable too.
We, like many, many others, fervently hope he will succeed in every area beyond anyone's expectations.
His inaugural message focused on the theme he rode to victory in November: unity, respect, service.
It is a theme that has resonated with Virgin Islanders, as evidenced by his resounding two-to-one victory over Gov. Roy L. Schneider.
But Gov. Turnbull's challenge will be to translate his fine words and excellent sentiments into action.
Virgin Islanders want change.
They want radical change in the way this government does business, something Gov. Turnbull has promised to deliver. They don't want empty promises — we've heard enough of those over the years — and they don't want more studies — we've had more than enough of those — they want action.
They want the reins put on fiscal profligacy. Not mass layoffs, of course, but a systematic reduction in the cost of this government: a reduction in the workforce by attrition and by cutting all that fat at the top; elimination of all frills such as fancy cars and unchecked travel; a halt to double-dipping (including contracts for retirees who are collecting handsome pensions); and the introduction of government efficiencies such as privatized services that work elsewhere but have never been seriously tried here. They want an end to contracts for people who do little or nothing to earn those taxpayer dollars. They want an end to politics as usual.
They want basic services delivered regularly and reliably.
They want potholes filled. They want roadside brush cut and garbage collected and reliable electrical service. They want a competent, trustworthy police force that will protect them, inform them and solve any serious crimes that do occur.
They want more than lip service paid to our children. They want an educational system that educates its students well and doesn't make excuses for failure. They want productive, constructive after-school activities for children that will expand their horizons and keep them out of trouble. They want programs that will ensure that our children develop to their fullest potential — emotionally, intellectually, academically and socially — from birth to adulthood.
They want civility restored to the halls of government, and to our streets. They want an end to the bickering and arrogance and nastiness that too often have become the norm in our daily interactions.
Gov. Turnbull, a true and gracious gentleman, has promised to initiate these changes, and he has asked for the community's help. He seems to understand how important it is for him to set the tone and he says he will do just that.
He has promised to be the most humble and most respectful public servant in the V.I. government so that other workers will follow his example. He has promised to work hard, and to demand that others who collect public paychecks work hard too. He has promised to be open and accountable, and to make sure others in his administration are open and accountable too.
We, like many, many others, fervently hope he will succeed in every area beyond anyone's expectations.
TURNBULL BECOMES 6TH ELECTED GOVERNOR
Amidst downpours and dignitaries, Dr. Charles W. Turnbull and Gerard Luz James II were sworn in Monday as governor and lieutenant governor of the U.S. Virgin Islands.
Heavy intermittent showers did not dampen the enthusiasm of the crowd gathered at Emancipation Garden to witness the swearing-in of the territory's sixth elected governor just after noon.
Turnbull's address recalled his campaign promise of a "grander vision."
He reiterated the three pillars of that vision — unity, respect and service. He said that since these islands are home to people from all parts of the Caribbean and the world, we must all work together to achieve our goals.
"We must respect God, ourselves and everyone else," Turnbull said. "We cannot have unity without respect."
Service, he said, is the third pillar: "Service, first to God and then to fellow human beings."
Turnbull referred to himself as the "chief humble servant" and to the lieutenant governor as the second chief humble servant.
He also promised to protect the freedoms guaranteed by the First Amendment.
"You have freedom to speak against this administration or any other government agency," he said.
He also made a commitment to raise the standard of living for all Virgin Islanders, but said in order to do that we must be prepared to do things differently.
"New economic alliances are being formed around the world," he said, and the Virgin Islands must do the same thing.
Turnbull expressed the hope that when history judged him, it would not be as a great governor, but as a "good governor."
The inaugural ceremony got under way at about 10:30 a.m. when mistress of ceremonies Dr. Gwen-Marie Moolenaar announced the arrival of Gov. Roy L. Schneider and Gov.-elect Turnbull and their entourages to the grandstand.
After viewing the motorcade and military parade, the outgoing and incoming governors and their parties moved to the bandstand.
The Rt. Rev. Elliott G. Thomas, bishop of the Catholic Diocese of the Virgin Islands, gave the invocation. The 666th Army Band played the National Anthem and the Virgin Islands Anthem, which was sung by Lorna Freeman.
Inauguration Committee Co-Chair James O'Bryan introduced visiting dignitaries, including Chief Minister Ralph O'Neal of the British Virgin Islands; Wilma Lewis, U.S. Attorney for the District of Columbia, and Puerto Rico Gov. Pedro Rossello.
The joint choirs of Charlotte Amalie and Eudora Kean High Schools performed "Lift Every Voice and Sing" and finished, despite falling rain, with "Unity."
Senate President Lorraine Berry then presented the traditional Gubernatorial Memento to Gov. Schneider. Moolenaar surprised the crowd by asking Berry to return to the podium and present the same memento to former Gov. Alexander Farrelly, who never got it when he left office in 1995. The presentation to Farrelly met with some of the loudest applause of the morning.
After the ceremonial presentation of flowers to the first ladies of the territory, Lt. Gov. Gerard Luz James II was introduced by Sen.-elect George Goodwin and sworn in by Territorial Court Judge Maria Cabret.
James promised to work to serve the best interests of the people and to "never let you down."
James recalled being identified along with Turnbull as "the bull and the undertaker" — James owns a funeral home on St. Croix — and said it was the rallying cry for change.
He said one goal of the Turnbull-James administration is to restore economic stability to the territory by training and retraining employees, by encouraging more Foreign Sales Corporations to locate here and by prudence at all times.
The new lieutenant governor brought laughter and applause when he said he would aim to make peace while he was at the top, which would serve him well "on the way down."
Moolenaar made a program change after James' swearing-in, saying that by law the governor must be sworn in by noon — though by then it was minutes after the midday hour.
Dr. Marilyn F. Krigger, a professor at the University of the Virgin Islands with Turnbull, introduced the governor-elect who was sworn in by Verne A. Hodge, presiding judge of the Territorial Court.
After the inaugural address the program resumed with the singing of "The Holy City" by. Jacqueline Harrigan, accompanied by Dr. Lorna Young-Wright of UVI.
Wanda Mills then read an inaugural poem, followed by the rest of the musical presentation. The ceremony ended at about 1:15 p.m. with the benediction by the Rev. Dr. H. Clifton Niles, superintendent minister of the Methodist Church in St. Thomas/St. John.
Heavy intermittent showers did not dampen the enthusiasm of the crowd gathered at Emancipation Garden to witness the swearing-in of the territory's sixth elected governor just after noon.
Turnbull's address recalled his campaign promise of a "grander vision."
He reiterated the three pillars of that vision — unity, respect and service. He said that since these islands are home to people from all parts of the Caribbean and the world, we must all work together to achieve our goals.
"We must respect God, ourselves and everyone else," Turnbull said. "We cannot have unity without respect."
Service, he said, is the third pillar: "Service, first to God and then to fellow human beings."
Turnbull referred to himself as the "chief humble servant" and to the lieutenant governor as the second chief humble servant.
He also promised to protect the freedoms guaranteed by the First Amendment.
"You have freedom to speak against this administration or any other government agency," he said.
He also made a commitment to raise the standard of living for all Virgin Islanders, but said in order to do that we must be prepared to do things differently.
"New economic alliances are being formed around the world," he said, and the Virgin Islands must do the same thing.
Turnbull expressed the hope that when history judged him, it would not be as a great governor, but as a "good governor."
The inaugural ceremony got under way at about 10:30 a.m. when mistress of ceremonies Dr. Gwen-Marie Moolenaar announced the arrival of Gov. Roy L. Schneider and Gov.-elect Turnbull and their entourages to the grandstand.
After viewing the motorcade and military parade, the outgoing and incoming governors and their parties moved to the bandstand.
The Rt. Rev. Elliott G. Thomas, bishop of the Catholic Diocese of the Virgin Islands, gave the invocation. The 666th Army Band played the National Anthem and the Virgin Islands Anthem, which was sung by Lorna Freeman.
Inauguration Committee Co-Chair James O'Bryan introduced visiting dignitaries, including Chief Minister Ralph O'Neal of the British Virgin Islands; Wilma Lewis, U.S. Attorney for the District of Columbia, and Puerto Rico Gov. Pedro Rossello.
The joint choirs of Charlotte Amalie and Eudora Kean High Schools performed "Lift Every Voice and Sing" and finished, despite falling rain, with "Unity."
Senate President Lorraine Berry then presented the traditional Gubernatorial Memento to Gov. Schneider. Moolenaar surprised the crowd by asking Berry to return to the podium and present the same memento to former Gov. Alexander Farrelly, who never got it when he left office in 1995. The presentation to Farrelly met with some of the loudest applause of the morning.
After the ceremonial presentation of flowers to the first ladies of the territory, Lt. Gov. Gerard Luz James II was introduced by Sen.-elect George Goodwin and sworn in by Territorial Court Judge Maria Cabret.
James promised to work to serve the best interests of the people and to "never let you down."
James recalled being identified along with Turnbull as "the bull and the undertaker" — James owns a funeral home on St. Croix — and said it was the rallying cry for change.
He said one goal of the Turnbull-James administration is to restore economic stability to the territory by training and retraining employees, by encouraging more Foreign Sales Corporations to locate here and by prudence at all times.
The new lieutenant governor brought laughter and applause when he said he would aim to make peace while he was at the top, which would serve him well "on the way down."
Moolenaar made a program change after James' swearing-in, saying that by law the governor must be sworn in by noon — though by then it was minutes after the midday hour.
Dr. Marilyn F. Krigger, a professor at the University of the Virgin Islands with Turnbull, introduced the governor-elect who was sworn in by Verne A. Hodge, presiding judge of the Territorial Court.
After the inaugural address the program resumed with the singing of "The Holy City" by. Jacqueline Harrigan, accompanied by Dr. Lorna Young-Wright of UVI.
Wanda Mills then read an inaugural poem, followed by the rest of the musical presentation. The ceremony ended at about 1:15 p.m. with the benediction by the Rev. Dr. H. Clifton Niles, superintendent minister of the Methodist Church in St. Thomas/St. John.
TURNBULL-JAMES GET STARTED IN ST. JOHN
Dr. Charles Wesley Turnbull and Gerard Luz James II launched their inaugural activities on St. John over the weekend before taking the oath of office Monday.
An inaugural ecumenical service Sunday at St. Ursula's Anglican Church in Cruz Bay was followed by a reception in Cruz Bay Park.
St. Johnians began their celebration of the Turnbull-James inauguration with a ball Saturday night at the Westin Resort. Three balls are scheduled tonight in St. Thomas, a decision that some critics have said sends the wrong message when the territory's coffers are bare.
Inaugural festivities shift Tuesday to St. Croix where Gov. Roy L. Schneider gave administrative leave to non-essential workers. Schneider granted leave to non-essential workers on all three islands for today's inaugural activities.
Turnbull has not yet announced any Cabinet appointments. However, the names of some nominees have begun to surface. Among them:
— Ruby Simmonds, a former senator and University of the Virgin Islands professor, as Education commissioner.
— Clement "Cain" Magras, another former senator and now executive director of the Legislature, as Tourism commissioner. Magras was Licensing and Consumer Affairs commissioner in the Farrelly administration.
— Ira Hobson as Housing, Parks and Recreation commissioner, the post he held in the Schneider administration before resigning in June, citing disrespectful treatment from Scheider. Hobson was an early and fervent Turnbull-James supporter.
Juel T.R. Molloy, who also resigned from the Schneider administration, is expected to be Turnbull's chief of staff, though Rudolph Krigger, a former Finance commissioner, is expected to play a key role at Government House too. Both have been instrumental in the transition process.
An inaugural ecumenical service Sunday at St. Ursula's Anglican Church in Cruz Bay was followed by a reception in Cruz Bay Park.
St. Johnians began their celebration of the Turnbull-James inauguration with a ball Saturday night at the Westin Resort. Three balls are scheduled tonight in St. Thomas, a decision that some critics have said sends the wrong message when the territory's coffers are bare.
Inaugural festivities shift Tuesday to St. Croix where Gov. Roy L. Schneider gave administrative leave to non-essential workers. Schneider granted leave to non-essential workers on all three islands for today's inaugural activities.
Turnbull has not yet announced any Cabinet appointments. However, the names of some nominees have begun to surface. Among them:
— Ruby Simmonds, a former senator and University of the Virgin Islands professor, as Education commissioner.
— Clement "Cain" Magras, another former senator and now executive director of the Legislature, as Tourism commissioner. Magras was Licensing and Consumer Affairs commissioner in the Farrelly administration.
— Ira Hobson as Housing, Parks and Recreation commissioner, the post he held in the Schneider administration before resigning in June, citing disrespectful treatment from Scheider. Hobson was an early and fervent Turnbull-James supporter.
Juel T.R. Molloy, who also resigned from the Schneider administration, is expected to be Turnbull's chief of staff, though Rudolph Krigger, a former Finance commissioner, is expected to play a key role at Government House too. Both have been instrumental in the transition process.
WAYS TO MAKE THE IDC PROGRAM WORK
This is the first of a series on the best practices for our community to consider in revitalizing the Virgin Islands industrial incentive — or IDC — program.
It is clearly evident that any company engaged exclusively in the business of exporting commodities or services, with virtually no market in the location where the production occurs, must receive a set of tax/fee incentives sufficient to induce that company to operate there.
Such is the case with HOVENSA, Globalvest or any other similarly situated IDC beneficiary. These companies have no other reason to operate in the Virgin Islands, given that taxes and fees do exist.
Other factors, such as beautiful beaches, labor supply quality or onerous labor market legislation, may support or devalue the forgiveness of certain taxes/fees.
The balance of benefits offered to these companies and those received by the V.I. are unrelated. The benefits to be offered allow them to earn a level of profit greater than could be earned at any other feasible location.
That is the reason for locating in the Virgin Islands. If such were not true, the company would be obliged to locate wherever their profits are highest.
The analysis for determining the level of benefits to be provided rests not on a comparison between the benefits that would accrue to the Virgin Islands and the benefits that would accrue to the company.
Rather, the analysis must be based on a comparison between the cost of doing business in the Virgin Islands as opposed to the cost of doing business in another location. The bargaining is implicitly and truly between competing locations and not between a company and any particular country, state or territory.
It is possible to offer (more/less) benefits than are sufficient. If the benefit package results in the company earning a profit (higher/lower) than could be earned at the next best location, the (excess/deficiency) in benefits provided equals the difference in the benefit package available in the V.I. and the next best locations, plus one dollar; not between the value of benefits offered to the company and those received by the jurisdiction.
This perspective is the correct guide for use in deliberating the appropriateness of any benefit package offered to a new company or in considering a renewal/renegotiation of same.
Unfortunately, this perspective was extravagantly violated by the U.S. Interior Department, in what is inaccurately titled an "Audit Report" on the Hess Oil Virgin Islands Corp.'s Economic Impact on the Virgin Islands; Report No. 92-I-384, February 1992.
Beyond a number of factual errors that should have been caught during editing, the report reveals a misguided understanding of regional economic development programming.
The report's most damaging assertion is "We believe that the (V.I.) Government should attempt to negotiate additional tax concessions from Hess Oil in order to reach an agreement that more equitably balances Hess Oil's tax exemptions with benefits provided to the Virgin Islands." (par. 2 cover letter from Harold Bloom).
As shown above, this perspective and comparison is patently incorrect and damages the image of the Virgin Islands as a community able to negotiate tax/fee forgiveness packages beneficial to both parties.
In the next article, I'll offer a view on the implications regarding the export orientation of the company.
Richard W. Moore is a consulting economist in the Virgin Islands. He can be reached at 340- 774-4272.
It is clearly evident that any company engaged exclusively in the business of exporting commodities or services, with virtually no market in the location where the production occurs, must receive a set of tax/fee incentives sufficient to induce that company to operate there.
Such is the case with HOVENSA, Globalvest or any other similarly situated IDC beneficiary. These companies have no other reason to operate in the Virgin Islands, given that taxes and fees do exist.
Other factors, such as beautiful beaches, labor supply quality or onerous labor market legislation, may support or devalue the forgiveness of certain taxes/fees.
The balance of benefits offered to these companies and those received by the V.I. are unrelated. The benefits to be offered allow them to earn a level of profit greater than could be earned at any other feasible location.
That is the reason for locating in the Virgin Islands. If such were not true, the company would be obliged to locate wherever their profits are highest.
The analysis for determining the level of benefits to be provided rests not on a comparison between the benefits that would accrue to the Virgin Islands and the benefits that would accrue to the company.
Rather, the analysis must be based on a comparison between the cost of doing business in the Virgin Islands as opposed to the cost of doing business in another location. The bargaining is implicitly and truly between competing locations and not between a company and any particular country, state or territory.
It is possible to offer (more/less) benefits than are sufficient. If the benefit package results in the company earning a profit (higher/lower) than could be earned at the next best location, the (excess/deficiency) in benefits provided equals the difference in the benefit package available in the V.I. and the next best locations, plus one dollar; not between the value of benefits offered to the company and those received by the jurisdiction.
This perspective is the correct guide for use in deliberating the appropriateness of any benefit package offered to a new company or in considering a renewal/renegotiation of same.
Unfortunately, this perspective was extravagantly violated by the U.S. Interior Department, in what is inaccurately titled an "Audit Report" on the Hess Oil Virgin Islands Corp.'s Economic Impact on the Virgin Islands; Report No. 92-I-384, February 1992.
Beyond a number of factual errors that should have been caught during editing, the report reveals a misguided understanding of regional economic development programming.
The report's most damaging assertion is "We believe that the (V.I.) Government should attempt to negotiate additional tax concessions from Hess Oil in order to reach an agreement that more equitably balances Hess Oil's tax exemptions with benefits provided to the Virgin Islands." (par. 2 cover letter from Harold Bloom).
As shown above, this perspective and comparison is patently incorrect and damages the image of the Virgin Islands as a community able to negotiate tax/fee forgiveness packages beneficial to both parties.
In the next article, I'll offer a view on the implications regarding the export orientation of the company.
Richard W. Moore is a consulting economist in the Virgin Islands. He can be reached at 340- 774-4272.
A PORTRAIT OF ARTIST EUNICE SUMMER
If you were one of the fortunate people who received Vitelco's Christmas cards this year, you were gazing at the artwork of artist Eunice Summer.
She enhanced the cards with reproductions of waterfront and Carnival scenes — very Caribbean, as is Eunice, who has made St. Thomas her home for 24 years.
It is just in the past six years, since she retired after more than 20 years as a psychotherapist with the Human Services Department, that she has devoted herself to her first love — painting.
Her deep affection for the Caribbean in all its colors and costumes, flora and fauna, is evident in her brilliant work.
Summer said the piece shown, The Three Graces, is the only time the three graces have been portrayed as black women.
Eunice spent time in the British Virgin Islands before coming to St. Thomas, and Virgin Gorda still claims a part of her heart. This is where actor Morgan Freeman first saw Eunice's work, and commissioned her to do his portrait.
Freeman wasn't the easiest person to paint as he didn't want to "sit" for a portrait. Instead, Eunice whose love of the sea is limited to painting it, had to endure a sailboat ride from Virgin Gorda to St. Thomas to get her initial sketch. However, her story had a happy ending.
"You have captured my soul," Freeman said when he saw the portrait.
"But, you know," she added, "he is an actor."
Eunice took first prize for her enamels in the Caribbean Color show earlier this year in St. John. Her paintings hang in many private collections in the Caribbean and the U.S., and 70th Art Gallery at 130 E. 70th St. in Manhattan is now carrying her work. She has a show coming up next spring at Color of Joy on St. Thomas' east end.
She enhanced the cards with reproductions of waterfront and Carnival scenes — very Caribbean, as is Eunice, who has made St. Thomas her home for 24 years.
It is just in the past six years, since she retired after more than 20 years as a psychotherapist with the Human Services Department, that she has devoted herself to her first love — painting.
Her deep affection for the Caribbean in all its colors and costumes, flora and fauna, is evident in her brilliant work.
Summer said the piece shown, The Three Graces, is the only time the three graces have been portrayed as black women.
Eunice spent time in the British Virgin Islands before coming to St. Thomas, and Virgin Gorda still claims a part of her heart. This is where actor Morgan Freeman first saw Eunice's work, and commissioned her to do his portrait.
Freeman wasn't the easiest person to paint as he didn't want to "sit" for a portrait. Instead, Eunice whose love of the sea is limited to painting it, had to endure a sailboat ride from Virgin Gorda to St. Thomas to get her initial sketch. However, her story had a happy ending.
"You have captured my soul," Freeman said when he saw the portrait.
"But, you know," she added, "he is an actor."
Eunice took first prize for her enamels in the Caribbean Color show earlier this year in St. John. Her paintings hang in many private collections in the Caribbean and the U.S., and 70th Art Gallery at 130 E. 70th St. in Manhattan is now carrying her work. She has a show coming up next spring at Color of Joy on St. Thomas' east end.
