Aruba / Bonaire
From a different perspective

Dutch Antilles

Aruba and Bonaire largely lack the Spanish rule: the islands have little to offer. 

Aruba and Curaçao have benefited from their American and Dutch refineries for decades; Bonaire misses that. Cruise tourism also largely ignores Bonaire.

In 1954, Aruba and Curaçao become sovereign countries within the Kingdom; Aruba receives a "status aparte". In 2010, Bonaire becomes a municipality of the Netherlands.

These three different governance models mean that a joint approach to economic problems is lacking. With that background, we start one of the most difficult jobs ever.


Trade then and now

About 4000 years ago, Arawak Indians came from Venezuela to the islands for gold and aloe vera. From the Venezuelan peninsula of Paraganuá it is only 18 miles by boat to Aruba.

Around 1500, the Spaniards arrive on the 'Islas inutiles' - useless islands, because there is no gold or silver to be found and they are also unsuitable for agriculture. The Spaniards deport the entire Indian population to work as slaves in the copper mines of Santo Domingo. But gradually people from the mainland settle again in Aruba.

The WIC

Trade routes of the Dutch West Indies Company

Two hundred years later, the West India Company neither shows any interest in Aruba: the WIC concentrates the slave trade in Curaçao, which becomes a hub between West Africa and the south of the USA:

Crude oil

Another two hundred years later, the first oil is found in nearby Lake Maracaibo, but access to the lake is impossible for large tankers. The PanAmerican Petroleum and Transport Company builds an oil terminal in Aruba. Later, Standard Oil (Esso) buys the terminal and constructs a refinery to produce paraffin, among other things, for the most important markets in Latin America, where electricity is not yet widespread. In Curaçao we see the same scenario with the Shell refinery.

Lago refinery in Aruba

But in 1985 Exxon closes the refinery in Aruba. In Curaçao, Shell -with the help of the Dutch prime minister- sells the refinery to Venezuela for 1 guilder, including indemnification from soil contamination. 

In 2000, Venezuela enters in one of the most bizarre political upheavals in its history and oil production plummets. At both refineries, the torch flame is slowly dying out and when the US finally introduces an embargo on Venezuelan crude oil, the golden era of oil comes to an end.

Tourism

New visitors arrive. In 1934, KLM makes its first flight to Aruba. A solid network is built up in the "West Indies", first for business travellers, but gradually for well-to-do tourists as well.

In 1955, the first American cruise ship -"Tradewind"- with 300 passengers docks in the port of Oranjestad. A new chapter in the economy of Aruba is dawning: tourism

Tourism displacing oil as a pillar of the Aruban and Curaçao economy

Our experiences

"Our experiences" are impressions gained during my work for Dutch and international government agencies, which deal with economic development in emerging countries, especially in the field of trade promotion. To better interpret those experiences, it is advisable to first read "Trade, not aid".

In 2012, the CBI* requests me to prepare a reconnaissance mission to Aruba and Bonaire. To be honest, we have no business in the Antilles - it is domestic territory- but the management of the agency likes to explore the limits of its mandate.

*Agency of the Ministry of Economic Affairs

Moreover, there are sufficient starting points, because Aruba promotes itself as a hub for the Dutch business community towards Latin American markets and that gives us an opportunity to present an alternative.

Actual trade model of Aruba

During our reconnaissance, it appears that many conferences and promising reports have been produced on "economic development" in both islands. This also involved a lot of travel from The Hague civil servants, most of them to Bonaire, since Aruba has decided to stop receiving subsidies - and snoopers - from the Netherlands.

From one of the promising reports on economy

Upon arrival in Oranjestad, it turns out that the conventional idea of Aruba as a hub for the Dutch business community towards Latin America still plays a leading role. But in practice, it is hardly ever used. There is also quite a bit of pie in the sky, such as the idea for the assembly of buses from a Dutch company for Central America and the Caribbean.

Trade, but different

Let's talk to Mike Eman, Prime Minister of Aruba from 2009-2017. He proudly talks about the new TNO* office in Aruba, which should give the knowledge economy a strong boost.

At the time, the switch to a knowledge economy is the "flavor of the day" on all Caribbean islands. Practically all are mono-economies (tourism) that seek to limit their dependence on one sector. In itself a good strategy - think of Covid - but difficult to implement in practice.

*TNO - Dutch Organization for Applied technology


We introduce the CBI to the Prime Minister: promoting trade from emerging economies to Europe. And we explain how Aruba can play a role in this.

Aruba should look over its shoulder: medium-sized companies in Colombia, Ecuador, Venezuela, Costa Rica, Suriname and other Latin American countries want to enter the European and American markets, but encounter all kinds of problems. Aruba can play a role in that. Not so much logistically, but through commercial, financial and technical instruments - the latter with the help of TNO's office in Aruba. And foreign investment, which creates employment.

Trade from a different perspective

"A different perspective"
Mike Eman moves to the edge of his seat: "Interesting. We haven't looked at it yet from this perspective".

We agree that we will use our network in Latin America to identify companies that can practice what we preach:

In Ecuador we discuss the idea with two major shrimp exporters. Shipping raw shrimps to Aruba, process them, package them and sell them as clean, deep-frozen "Caribbean shrimps" to Europe and the US. The idea is well received: most shrimps now end up in Vietnam as a "commodity" at dumping prices. Moreover, there are interesting tax advantages in the Aruba route.

In Honduras we get the same reaction from avocado growers: processing in Aruba and selling it as guacamole to distributors in Florida, for example.

San Vicente Fundación clinic in Medellín, Colombia

In Colombia we talk to the San Vicente Fundación clinic near Medellín. It prospered with "medical tourism" from the US and the Antilles. "Setting up a clinic in Aruba? Yes, of course". With its specialization in plastic surgery, it will reach more Americans and Europeans, particularly the ones afraid of an operation in Colombia. That is unjustified: Colombia has a solid international reputation in the medical field. Colombian doctors would like to work in Aruba for a few years.

A sudden end

We are connecting the companies with the Aruban Minister of Economic Affairs and the TNO representative in Aruba. But as far as we're concerned, that's it: The Hague will not give us a budget for a program in Aruba.

In any case, the idea has sunk in with both parties.

Bonaire
From a different perspective

Bonaire, its capital Kralendijk with "Little Bonaire" opposite, the salt pans in the South 

A short history

The history of Bonaire can be compared to that of Aruba, although the Spaniards did not ignore this island; they remain there for more than a century. But when Spain starts blocking the Dutch supply routes of salt from the Cape Verde islands, the Netherlands must search for sources of salt at the Caribbean islands. Hence, the WIC -West Indian Company conquers Bonaire in a few hours from a handful of Spaniards.

Slave houses close to the salt pans

For three centuries, Bonaire's salt finds its way to fisheries in Newfoundland and the Baltic Sea. But the abolition of slavery means a significant reduction in production and exports.

From then on, Bonaire's economy depends on Curaçao, legally and logistically alike. There are hardly any direct connections with the rest of the Caribbean, South America or the USA. The supply of fresh fruit and vegetables from Venezuela also largely goes via Curaçao.

A unique initiative

Schunck garments factory

In 1948 Pierre Schunck starts a clothing company in Bonaire: there were enough young wives of men who worked at the refineries in Curaçao and Aruba. . . . . .

It is a risk: everything has to be imported, from machines and building materials to the simplest screws. This is problematic because of the long supply lines and the obligation to route all shipping via Curaçao. When Schunck asks for the same tax benefits that the Dutch government grants Shell and Esso - no import tax on materials for 25 years - Dutch government refuses.

Production focuses on corporate clothing for Shell, Esso, police and customs. Initially, things go well. In 1950, Schunk opens an office in La Victoria near Caracas to promote sales in Venezuela. The export of the company's production rises to $ 100,000, half of Bonaire's total exports. At its peak, the company employed 110 people.

But productivity is low: Bonaireans are not industrially oriented, the climate is uncooperative and there is poverty and malnutrition. Schunck's wife introduces free meals, health care and home care, which significantly reduces the mortality rate among young women, but the outcome for the company is almost predictable:

*Outsourcing to low-wage countries in Asia

In the 20th century, commodity trader Cargill purchases the salt pans with exclusive rights to production and export.

Cargill salt operations 

No mass-tourism

It is the time of mass tourism and Bonaire is getting its share. But poor accessibility and a desire to preserve the island and its coral reefs ensure that Bonaire is spared mass tourism and becomes a paradise for divers. Cruise ships dock in Bonaire on a small scale, but not comparable to the numbers in Aruba and Curaçao.

Recently, all Caribbean islands are recovering from the covid 19 pandemic. In 2023, United Airlines has three flights a week from New York to Bonaire.

Our experiences

"Our experiences" are impressions from my work for . . . . . 

 . . . . Dutch and international government agencies involved in economic development in emerging countries, especially in the field of trade promotion. for a better understanding of these impressions -and their results - I recommend reading "Trade, not aid".

During our preparation in 2013, we noticed a staggering amount of strategies, reports and long-term plans, mostly written by Dutch prophets. So we decide not to add another one. Moreover, our options in Bonaire are limited: Dutch government does not provide a budget for implementation.

It is good that the Chamber of Commerce refers us to Anja Romeijnders. With her husband she runs an ICT company in Kralendijk and is actively involved in employers' associations. She accepts our proposal to join the team. This prevents us from making the classic mistakes that bring Bonaireans to despair every time prying eyes from The Hague pass by.

Quick Scan

We limit ourselves to a Quick Scan, which contains detailed business cases with the introduction "Bonaire 202020", a glimpse into daily life in Bonaire in 2020. The title refers to 10-10-10, the date on which Bonaire became a Dutch municipality . A charged topic in Bonaire.

Unlike Aruba, where we select Latin America as the main market for trade and investment, here we need to identify Dutch companies willing to set up a subsidiary in Bonaire. This is only possible if we find a unique selling proposition -USP-, with which Bonaire can compete with big brothers Aruba and Curaçao.

We soon notice that agricultural initiatives make little sense:

* Supply from Venezuela resumed in 2023

Floating markets of Venezuelan
fruits and vegetables  

Blue Brainport

In islands like Bonaire, all cost items are counterproductive, so if you can't offer a unique product, don't do it. That was the case with Schunck's garments workshop.

Bonaire's unique proposition is "water". Bonaire is the Netherlands, the Netherlands is water, so Bonaire is water. This USP fits in with the image of "Bonaire divers' paradise", with a Dutch "value added" as a leader in water management. This concept can easily be marketed in the Western Hemisphere.

We draft a first sketch of "Blue Brainport", a mini High-Tech Campus

The spin-off in the service sector and catering industry is enormous; not only the happy few will benefit from it.  There is no downside for the environment and nature.

On November 24, 2013, Public Entity of Bonaire (PEB), Chamber of Commerce, Bonaire Business Association and the Center for the Promotion of Imports sign a declaration of intent for the establishment of BTIB, a Trade & Investment Bureau, which will implement Blue Brainport.

Back in the Netherlands we discuss the idea of a franchise with Brainport chairman, who refers us to the management. There we end up in famous Brabant loam layers with no progress at all.

We decide to shift our attention and tackle another hurdle: connections. You cannot fill up Blue Brainport without direct flights to Bonaire from the USA and South America.

Seventh freedom

Daily flights from Amsterdam
via Curaçao

We meet with KLM Vice President Ben Swagerman. Bonaire is not a far-fetched story at KLM. Not surprising, many members of the KLM top management have a house there and Dutch government provides a well-stocked business class on this tourist route.

KLM has flights from Amsterdam via Aruba to Bonaire, so feeding passengers from Latin America is interesting. We hear that KLM has taken a stake in GOL, a Brazilian airline so as to benefit from one special advantage that Bonaire has: the seventh freedom in aviation*. It means that GOL can reach the USA via Bonaire with smaller aircrafts, like the B-737. This applies to many other airlines from Brazil, Argentina, Chile and Peru.

*Includes the right to operate passenger services between two countries outside the airline's country of origin.

Bonaire's USP: the 7th freedom

We hear that Dutch consultancy firm KPMG has been commissioned by a Venezuelan investor to prepare a position paper for a Marriott with 140 rooms.

The Ministry of Economic Affairs confirms that money is available if we deliver concrete projects. However, Bonaire says it receives zero support from Ronald Plasterk -Minister of Home Affairs.

Trade wind or headwinds?

From left to right: Liaison officer Willem Vanderheul, Secretary-General Maarten Camps, Bonaire public entity Secretary Nereida Gonzalez, Mayor Edison Rijna and Alderman Edsel Winklaar 

It is a difficult road. In one of our meetings in The Hague with Maarten Camps, Secretary General of Home Affairs and representatives from Bonaire, the tension is palpable: Camps' patriarchal attitude and wrong jokes arouse Winklaar's anger.

In Bonaire we go from one meeting to another to bring parties to the table. PEB officials say they are the target of aggression from the business community; the business community stereotypes the inertia of governments. There is mutual misunderstanding of each other's positions.

Public Entity Bonaire
or Town Hall

We stalk PEB. Governor Rijna and deputy Winklaar are cooperating positively, but the loam layers in Bonaire are as thick as those in Brabant.

Island Secretary Nereida Gonzalez - the queen of PEB - is the only one who talks in no uncertain terms “There is a vision based on distrust, a post-colonial trauma” and “Give me an example of where your ideas have turned into reality!”

At the end of 2014, we submit the Quick Scan with a detailed business case for Blue Brainport. This is as far as CBI can go, given its limited mandate and budget in the Caribbean Netherlands. The BTIB must take over.

A notarial draft deed of incorporation of the BTIB is drawn up in 2016, but that's it. We understand that discussions to obtain financing through other sources - such as the EU or World Bank - have come to nothing.

Bonaire today

Masterplan 2030 shrouded in mist

To date, the Chamber of Commerce has a very concise information page about "doing business in Bonaire". Public Entity Bonaire does not mention anything on its official site about trade with - or investing in-  Bonaire.

In 2020, a start is made with "Master Plan 2030", a report that expresses the wishes of the population, without the authors' own opinions. But the brief website shows two things clearly:

Masterplan 2030 :"catch-all"

Finally

The architecture of power,
then and now

It is tempting to give an opinion on the lack of action on both sides. But what also applied to the many reports: no new analysis. The articles below will suffice:


"The Tragedy of Bonaire"

"Dutch inability on a village island where nothing is what it seems is the story of a special island in a remote corner of the Kingdom. A piece of tropical Netherlands since October 10, 2010. Divers' paradise and robbers' nest. Playground for CDA politicians, a leading role for Hans Hillen. The paralyzing culture of silence. But also the story of an idyllic island that has gone into a whirlwind. The invasion of officials in The Hague, led by a Minister, who tells them that everything must be different. Say yes, do no. Geopolitics in the backyard of the United States. But especially the history of the people for whom the island has been the navel of the world for many generations."


NRC June 16, 2015 

"Relations have soured, people are complaining about "recolonization"


De Telegraaf September 12, 2015 

The entire Kingdom Relations department of Ronald Plasterk's ministry went on an exotic trip last week. The 28 civil servants flew to the Caribbean Curaçao for a few days.

On the island, where the temperature currently exceeds 30 degrees, the entire management had to "gain insight into the practice" during a business trip and talk to the employees there. Normally these types of meetings are always held in The Hague, but this year the management chose to hold discussions in the southern Caribbean Sea.

The officials at Kingdom Relations are responsible for relations with the former Antilles, but eyebrows in other ministries are raised when they hear that the entire management of 28 people has traveled to the island. “That can no longer be called a business trip, but a nice team outing,” whispers an official from another department.”

"Everybody was in economy class" a spokesperson said.


NRC November 14, 2022 

"Every year, the islanders hospitably receive the many Dutch politicians who like to come on a sunny working visit; MPs, ministers and also high-ranking civil servants. Every year the conversations turn to the dire poverty. Lip service is always paid to the islanders, but there is no concrete result. The BES municipalities themselves are not allowed to engage in income policy. They are therefore completely dependent on reluctant politicians in The Hague."