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International Monetary Fund

development on a few key export sectors—oil refining, offshore finance, tourism, ship repair, and transshipment. Moreover, the country consist of five separate islands, each with their own labor market dynamics, and separated into two geographically distant groups. The limited size of the domestic market and the tendency for skilled workers to become specialized pose additional challenges for adjustment to shocks. 97. The Antillean labor market has been strongly influenced by the link with the Netherlands, but it has some distinctive features as well . Indivisibilities

International Monetary Fund
This Selected Issues paper and Statistical Appendix explores four policy issues—fiscal policy, public sector pension reforms, monetary management, and labor market performance—which are crucial for understanding the recent performance of the economy of the Netherlands Antilles and which will need to be addressed to restore the prospect of durable economic growth. The paper reviews experience with fiscal adjustment in the Netherlands Antilles, focusing in particular on the 1996–97 adjustment program. The paper also analyzes the sustainability of the public pension system of the country.
International Monetary Fund

features of the Antillean labor market. It concludes that a restoration of confidence, investment, and economic growth will need to be accompanied by measures to promote labor market flexibility in order to lower unemployment. 1 The Netherlands Antilles consists of a federation of five Caribbean islands and constitutes an autonomous part of the Kingdom of the Netherlands. The five islands are: Curaçao and Bonaire (the Leeward Islands), comprising about 80 percent of the total population of 211,000 inhabitants, and Saba, St. Eustatius, and the southern part of