Country Chapter Summary from Health in the Americas, 1998.
ARUBA
GENERAL SITUATION AND TRENDS
Socioeconomic, Political, and Demographic
Overview
Aruba is an island in the Antilles located 24 km from the
northern coast of Venezuela. It is the smallest (194 km2) and
westernmost of three Dutch islands. Aruba is divided into
eight regions: Noord/Tank Leendert, Oranjestad (West),
Oranjestad (East), Paradera, Santa Cruz, Savaneta, Sint
Nicolaas (North), and Sint Nicolaas (South).
The official language is Dutch, which is used in the school
system and civil service. Papiamento, which is spoken on
Aruba, Bonaire, and Curaçao, is the language of the
Parliament and the mass media. English and Spanish are
mandatory languages taught in the upper grades of primary
school and are widely spoken.
As an autonomous entity within the Kingdom of the Netherlands
since 1 January 1986, Aruba is responsible for its own
political affairs and administration, with the exception of
defense, foreign affairs, and the Supreme Court. Its
constitution provides for free and democratic elections every
four years to elect the 21 members of Parliament. The
Cabinet, headed by the Prime Minister, consists of a maximum
of nine ministers. Officially, the head of state is the Dutch
monarch, represented by a Governor.
The service
sectorespecially tourismis the mainstay of the
economy, although the oil refinery has reopened and several
small industries, notably construction, are developing.
The per capita gross national product (GNP) in 1993 was US$
12,900. In 1994, the gross domestic product (GDP) was US$
16,630. This index makes Aruba more similar to Western Europe
and the United States of America than to other countries of
the region; nevertheless, these numbers should be viewed with
caution because they were calculated for a relatively short
period and are estimates. A study is currently under way to
determine the GNP; preliminary data indicate that it probably
represents 60% of the GDP. The inflation rates in 1990, 1993,
and 1994 were 7.1%, 6.0%, and 4.7%, respectively.
Between the census of
1991 and the Labor Force Survey (LFS) of October 1994, the
population of the island grew from 66,687 to 79,837, an
increase of almost 20%. This growth has affected employment
and unemployment in Aruba. Proportionally, in 1994 the number
of non-Aruban employees was higher than it was in 1991.
According to the LFS, of the 2,722 persons employed in 1994,
28% were not from Aruba. Between 1991 and 1994, employment
increased more among women than among men.
After the LAGO refinery was closed, unemployment levels
climbed to 28% in 1985. Since then, the Government has
adopted a series of measures aimed at improving the national
economy. In particular, it has promoted strengthening the
tourism industry, whose growth, together with that of
parallel activities in the construction and service sectors,
has helped to bring down unemployment. The growth of tourism
led to a 6.5% increase in the transient population between
1994 and 1995. In the latter year, the number of visitors to
the island totaled 618,915, which is 7.3 times the population
of Aruba.
According to the 1994 LFS, Arubas total unemployment
rate was 6.4%. Among women the rate was 7.8%, and among men
it was 5.3%.
The estimated population in 1995 was 83,652. Of that number,
41,592 (49.7%) are male and 42,060 (50.3%) are female. The
population density was 445 inhabitants per km2. Oranjestad,
with approximately 20,045 inhabitants, is the most densely
populated region.
The highest registered population growth rate (9.35%) was in
1993. In 1994 the rate decreased to 3.03%, and in 1995 it was
4.13%. These fluctuations basically are due to migration. Net
migration between 1984 and 1987 was negative, with values
ranging from 264 in 1984 to 501 in 1987. Net
migration became positive in 1989, with a value of 586 for
that year, and since then it has risen steadily, reaching a
high point in 1993 (5,734). According to the 1991 census,
immigrants made up about 23.9% of the resident population of
Aruba.
The total fertility rates for the years between 1993 and
1995, respectively, were 6.7, 6.5, and 6.8 per 1,000 women
1444 years of age. No figures on age-specific fertility
are available. The crude birth rate in 1995 was 17.0 per
1,000 people; this rate has remained relatively stable since
1991. In 1991, life expectancy at birth was 77.1 years for
females and 71.0 years for males.
The population of Aruba is mainly urban and can be considered
predominantly young55.2% of the inhabitants are under
35 years of age. The population over the age of 65 represents
6.6% of the total.
Mortality
Profile
The crude death rate ranged from 5.2 per 1,000 inhabitants in
1993 to 6.0 per 1,000 in 1995.
The five leading causes of death in the period 19871993
were diseases of the circulatory system; malignant neoplasms;
endocrine, nutritional, metabolic, and immunological
disorders; external causes; and diseases of the respiratory
system. In 1993, the last year for which figures on causes of
death are available, of a total of 402 deaths, 25.6% were
attributed to ill-defined causes. Of the deaths from defined
causes, 138 (46.1%) were due to diseases of the circulatory
system; 47 (15.7%) to malignant neoplasms; 30 (10%) to
endocrine, nutritional, metabolic, and immunological
disorders; 30 (10%) to external causes; and 12 (4%) to
infectious and parasitic diseases.
Conditions that originate in the perinatal period are the
leading cause of death among children under 1 year old. Among
males aged 144 years, external causes are the leading
cause of death. Heart disease is the primary cause of death
for both sexes over the age of 45.
For the 19911993 period, the leading specific causes of
death were diseases of pulmonary circulation and other forms
of heart disease, ischemic heart disease, diabetes mellitus,
cerebrovascular diseases, and malignant neoplasms of the
breast and stomach.
SPECIFIC HEALTH PROBLEMS
Analysis by Population Group
Health of Children
The child health service of the Department of Public Health
seeks to promote the well-being of and provide care for
children and adolescents aged 012 years. The physicians
employed by the service provide medical care through the
Yellow and White Cross Foundation and administer vaccines to
schoolchildren.
Mortality among children under 1 year old has decreased since
1991, when 10 deaths were certified. Between 1993 and 1995,
four, five, and one infant deaths, respectively, were
registered. All four deaths in 1993 were attributed to
conditions that originated in the perinatal period; two (50%)
were due to intrauterine hypoxia and birth asphyxia.
In the 14 age group, in 1991 one male child died of a
malignant neoplasm, no children died in 1992, and one died in
1993 due to an unspecified accident. In the group aged
514 years old, four deaths were certified in
1991three from diseases of the respiratory system and
one from an accident. No deaths occurred in this age group in
1992, and in 1993 there was only one death, which was due to
infectious disease.
Health of Adults
The Family Planning Foundation, created in 1970, aims to
promote parental responsibility, bearing in mind the cultural
and religious traditions of the population. The Foundation
provides contraceptive services through the Aruban Family
Planning Clinic. According to data from 1994, the most widely
used methods were oral contraceptives (41.7%), condoms
(41.1%), sterilization (5.7%), injectable contraceptives
(5.2%), intrauterine devices (4.8%), and others (1.4%).
Although there are no data on coverage, it is known that the
number of women coming to the Foundation is on the rise:
5,005 visits in 1988 and 7,178 in 1994, an increase of 43%.
Aruban women can opt to receive care during pregnancy and
childbirth from a general practitioner, a midwife, or an
obstetrician/gynecologist, but in practice this choice is
somewhat limited. Women who have private health insurance and
those who are employed in the public or private sector have
the greatest freedom of choice. Those who have PPK
("pro-paupere kaart"), a special card for persons
of limited economic means, are required to use the services
of a midwife. To prepare for the birth, women may take a
prenatal exercise course. The Yellow and White Cross
(community nursing service) also offers a full range of
parenting courses for future mothers and fathers, teaching
them about diet and nutrition for mother and baby, growth and
development of the fetus, hygiene, nursing, labor and
delivery, and postnatal care. Delivery usually takes place at
the General Hospital, although women may elect to give birth
at home.
Premature births are relatively rare, but when it is
suspected that one may occur, the mother is transferred to
Curaçao (Netherlands Antilles), where the necessary services
are available. If a premature birth does occur on Aruba, the
infant is transferred to Curaçao as soon as his/her medical
condition permits.
Abortion is a crime prosecutable under the Aruban Penal Code.
No data on abortion are available.
No maternity deaths were recorded for the period
19911993.
Health of the Elderly
The most frequent causes of death in the group 65 years old
and older are diseases of the circulatory system and
malignant neoplasms, which account for 51% and 15% of all
deaths, respectively. Sixty-five percent of the deaths
attributed to ill-defined causes occur in this age group,
which has grown considerably as a proportion of the total
population over the past three decades: in 1960, persons 65
and older made up 3.1% of the population; in 1991, 7%; and in
1995, 6.6%.
According to the 1991 census, the employed population who
were older than age 60 years decreased from 1,187 (5% of the
employed population) to 887 (3%). At the time the census was
conducted, 13% of the population aged 60 and over was
working. This proportion is considerably less than the
numbers registered in the 1981 census (20.5%). One possible
explanation is the recent decision (1 July 1992) to reduce
the age at which persons are eligible to begin collecting
their pensions, from 62 to 60 years. Aruba has an officially
regulated old-age pension program designed to ensure a
minimum income for the elderly.
Stichting Algemene Bejaardenzorg Aruba (SABA), an
organization that provides services for adults aged 60 and
over, manages three residences for the elderly with a total
capacity of 236 beds, which is insufficient. The Government
subsidizes the personnel costs of foundations that provide
social assistance services to elderly persons in the
community.
The Yellow and White Cross Foundation at the district level
offers home care for the elderly. There are also two day-care
centers that provide services only in the mornings; their
programs are mainly recreational.
Workers Health
A public-sector service provides pre-employment medical
examinations for workers as well as monitoring and following
up on sick workers. This service also is responsible for
prevention and control of occupational risks, health
education for workers, and management of data on occupational
accidents and illnesses.
In 1995, 40% of all workers in the public sector were women,
and this percentage has been increasing. Participation in the
labor market by people under the age of 20 has declined
dramatically as the number of years spent in school has
increased, and currently the percentage of employed young
people under 20 is quite small. In the group aged 2024
years, the rate of participation is considerably higher
(70.2% for males, 62.7% for females).
Studies of the years 1994 and 1995 reveal that the causes of
morbidity that lead to the greatest absenteeism among workers
are colds and flu, digestive disorders, and headaches.
Health of the Disabled
According to data from the 1991 census, the prevalence of
disability (including both physical and mental disability)
was 5.5% (3,700). The most frequent form of disability was
impairment of a limb (28.7%), followed by motor and visual
impairments (18.3% and 13.2%, respectively). Disabilities
were slightly more frequent in males (5.7%) than in females
(5.4%).
Analysis by Type of Disease
Communicable Diseases
In May 1995 the first case in an eight-month dengue outbreak
was reported. A total of 67 suspected cases were reported (57
in 1995 and 10 in 1996) and 45 were confirmed through
serological testing, in which serotype 2 was isolated. No
deaths or cases of hemorrhagic dengue were reported. This
dengue epidemic is the second that has occurred in Aruba; the
first occurred in 19841985 and affected 24,000 persons.
There were two deaths. Serotype 1 was isolated in that
epidemic. No other cases of vector-borne disease have been
reported.
Aruba has had no reported cases of poliomyelitis or acute
flaccid paralysis, diphtheria, whooping cough, or tetanus.
Four cases of measles were reported in 1994, none in 1995,
and four suspected cases in 1996; serological studies of the
latter four cases revealed that three were rubella, and
measles was ruled out in the fourth case. Another five cases
of rubella were reported during 1996. One case of mumps was
reported in 1994, two in 1995, and none in 1996.
There are no consolidated data on vaccination coverage, but
estimates indicate 80% coverage with vaccines against
diphtheria, tetanus, and pertussis, (DTP), and against
poliomyelitis for 1.5-year-old children and 100% coverage for
6-year-olds.
Three cases of hepatitis B were reported in 1994, one in
1995, and one in 1996.
The island has had no cases of cholera. Between 1981 and
1996, the number of cases of shigellosis ranged from 10
(1981) to 89 (1990). During the past three years the numbers
have fallen from 24 (0.3 per 1,000 inhabitants) to 20 (0.2
per 1,000 inhabitants) to 13 (0.1 per 1,000 inhabitants), but
this reduction is attributed to underreporting. During the
same period, the number of reported cases of intestinal
infectious diseases caused by other salmonella organisms
ranged from 23 (1985) to 116 (1989).
Data from the period 19811996 indicate that the highest
incidences of tuberculosis were registered in 1992, when
seven cases occurred, and in 1995, when eight cases were
reported, and most of those were foreigners. No drug
resistance has been detected, and no association with AIDS
has been found. Aruba had only one case of leprosy, which was
diagnosed in 1994.
Although there is no information on the number of medical
visits for acute respiratory infections (ARIs), it is
estimated that they are a major cause of morbidity; a review
of hospital discharge records for 1994 reveals that the
likelihood of being hospitalized for a clinical picture
consistent with ARI was 2.9 per 1,000 inhabitants. Children
aged 14 years and adults aged 65 and over were three
times more likely than other age groups to be hospitalized
for ARI.
During the 19871996 period, 25 cases of AIDS were
reported, 18 in males and 7 in females; 22 people have died.
Epidemiological studies indicate that 94.4% of the males were
infected through sexual transmission and 5.6% (one case)
through blood that was probably infected (as a result of
intravenous drug use). All HIV-positive individuals who
report to the Division of Infectious Diseases receive medical
and psychological counseling following detection. In addition
to counseling and clinical care for HIV-infected patients,
control measures include education and screening, especially
of prostitutes, patients with sexually transmitted diseases,
and blood donors. During the 19861995 period, blood
testing for HIV detected one seropositive case in 1986, three
in 1987, and one in 1995. There were no positive tests in the
other years. Approximately 50% of the seropositive
individuals were immigrants who had applied for work permits.
Most returned to their native countries, which made it
impossible to determine how many later developed or died from
AIDS.
The number of physician-reported syphilis cases ranged from
14 (the highest number reported) in 1990 to 7 in 1995. In
1996, it was decided that laboratories would be asked to
submit information on seropositive cases directly and 86
cases were thus detected, which suggests that the previous
numbers reflect a significant degree of underreporting.
There is also underreporting in the case of gonorrhea; the
highest number (53 cases) was reported in 1990. In 1996 only
three cases were detected.
No cases of rabies or any other zoonoses were reported.
Noncommunicable Diseases and Other Health-Related
Problems
A nutritional survey conducted in 19911992
(Kappel/Kock) indicated that 67% of the Aruban population was
overweight, with a body mass index (BMI) of 25 or more, and
52% of the population had a BMI of more than 27. The mean BMI
found among persons aged 2264 was 27.8. Overweight
affects both sexes equally. Significantly higher BMIs were
found in low-income than in upper-income groups. The BMI
among persons aged 50 and over was 28.5, while among younger
adults aged 2134 it was 27.
In 19951996, first- and fifth-graders were screened for
overweight and the results were compared with screening
results obtained in 19941995. It was found that the
percentage of overweight among first-grade children had
declined from 13.4% to 12.0%. Among fifth graders, an
increase from 26.1% to 29.4% was observed. No data are
available on protein-energy malnutrition among children under
the age of 5.
Aruban authorities have not established an official policy on
promotion of breast-feeding. In practice, many mothers do
breast-feed their children, although they generally use
bottle-feeding as a supplement.
The 1990 National Health Survey was a descriptive study of
the general population aimed at obtaining information on
health status, alcohol consumption, demand for medical
services, and degree of satisfaction with those services. The
results of the survey indicated that 66% of the population
felt healthy and that hypertension and diabetes were the most
prevalent diseases (affecting 9.8% and 4.3%, respectively, of
the population).
Hospital admissions for diabetes mellitus were more frequent
among females than males, which may indicate that the disease
is more prevalent among females. The risk of requiring
hospitalization for this cause increases with age and is
three times higher in the group aged 65 and over than in the
4564 age group. Diabetes mellitus was the fourth
leading cause of death during the 19871993 period, and
the rate has tended to remain stable. In 1993, the risk of
dying from this cause was twice as high among females.
Ischemic heart disease ranked first or second as a cause of
death in the 19911993 period.
In 1989, a study of a sample of the population aged
1574 yielded information on the prevalence of coronary
risk factors. The prevalence of arterial hypertension was
found to be 17% with no significant differences associated
with sex, nor were cholesterol levels significantly different
in the two sexes (12% of males and 11% of females showed
seriously high cholesterol levels, and 23% of males and 28
% of females had moderately high levels of 5.26.4
mmol/l). The study showed the prevalence of diabetes to be 6
% and that of smoking to be 32% among males and 13% among
females. Overweight was detected in 60% of the sample; 35
% were moderately overweight and 23% were severely overweight.
Significantly more females than males were overweight.
Malignant neoplasms were the second leading cause of death
during the period 19871993. The most frequent tumor
sites were the stomach and breast. A decline in mortality
from this cause was noted between 1991 and 1993, which may be
due to the fact that a high percentage of deaths was
attributed to ill-defined causes in the latter year.
According to anatomopathology reports for 1995 and 1996, in
100% of the cases of cervical cancer diagnosed, the carcinoma
was in situ, but of 49 cases of breast cancer, 45 (92%) had
progressed to an invasive stage at the time of diagnosis.
During the 19871993 period, accidents ranked third as a
cause of death. In 1993, the only death in the 14 age
group was attributable to this cause. Among males aged
1544, accidents (specifically, motor vehicle accidents)
were the leading cause of death. The only death among females
aged 1524 years was due to a violent cause (homicide).
According to hospital discharge records, at least 8 of every
1,000 persons required hospitalization each year as a result
of an accident, a number 2.8 times higher than the rate of
hospitalization for acute respiratory infections.
With regard to behavioral disorders, during the
19951996 school year, the Drug Abuse Foundation carried
out a survey among secondary school students. Of a sample of
625 students, a response rate of 98% was obtained. Of those
who responded, 25% admitted using legal or illegal drugs. Of
those who admitted to drug use, 19.3% indicated they drank
beer, 16.5% drank wine, 12.2% drank rum or whiskey, 9.1
% smoked cigarettes, 5.6% used marijuana, and 0.4% used
cocaine. The students were more aware of the harmful effects
of legal than of illegal drugs. The latter most often were
obtained on the street, in discotheques, and at friends
houses.
With respect to oral health, in 1990 the School Oral Health
Division of the Department of Public Health conducted a study
of oral health among schoolchildren aged 4, 6, 9, and 12 and
found that 66% had dental caries, while 34% were caries-free.
The average DMFT (decayed, missing, filled teeth) index for
the sample was 2.9. Dental caries were the most frequent oral
health problem found, followed by extractions. Of the 37
schools surveyed, 17 had a DMFT index below 2.9, 6 had an
index of 2.9, and 14 had an index above 2.9. Both the extent
and the seriousness of caries were greater in Santa Cruz and
Sabaneta than in other parts of the country. Oranjestad, the
capital, was where the dental caries problem was least
severe. The DMFT index was lower among females than males.
Higher percentages of deficient oral hygiene were found in
Sabaneta.
As for emerging and re-emerging diseases, no cases of
meningococcal meningitis, hantavirus, or Venezuelan equine
encephalitis have been reported.
No natural disasters or industrial accidents have been
reported.
RESPONSE OF THE HEALTH SYSTEM
National Health Plans and Policies
The current Government is committed to reorganizing public
health services, ensuring efficient and coordinated
management of health activities, distributing financial
resources appropriately, providing information to the
population about the importance of preventive medicine, and
maintaining and improving medical and paramedical care.
Reorganizing the public health sector means revising existing
laws; applying the general insurance law, the aim of which is
to reduce and control medical costs; inventorying and
coordinating the areas related to public health; promoting
good health and accentuating health education, including
primary, secondary, and tertiary prevention; and introducing
a system of inspection of public health services.
The Public Health Law (1952) comprises a set of general
lawsalso known as organizational regulations, which
deal with matters relating to organization and supervision of
health services as well as promotion of healthand
specific laws, grouped according to whether they concern the
health professionsmental health, sanitation, diseases,
health inspection of animals and plants, meat inspection,
livestock and marketing of meat products, and burials and
cemeteries. The specific laws were enacted between 1917 and
1969.
Health
Services and Resources
Organization of Services for Care of the
Population
The Department of Public Health of Aruba is responsible for
promotion of public health, mental health, and psychiatric
care; administration of the public laboratory; and
application and enforcement of laws relating to public
health.
Health Promotion. The Department of Public Health makes
information available to the population via radio and
television. Its Public Relations and Health Promotion Section
distributes informational materials (posters, pamphlets,
brochures, and stickers). Other services within the
Department provide information to the general public,
including schools, about various health-related topics.
Disease Prevention and Control. The Youth Health Service
performs physical examinations of all first- to fifth-grade
students each year, and also provides vaccinations.
Vector control is the responsibility of the Departments
Vector Control Division, which monitors all dwellings on the
island for Aedes aegypti.
The Animal Health and Veterinary Public Health Division of
the Department of Public Health conducts research and
analysis in the field and in the veterinary laboratory. These
activities are regulated by veterinary law.
The Communicable Diseases Division ensures epidemiological
surveillance of communicable diseases through a reporting
system in which the health services participate. This service
regularly provides consolidated information to the Division
of Epidemiology and Research. Reporting of communicable
diseases is required by law. Nurses from the Communicable
Diseases Division are responsible for patient monitoring and
follow-up. This division also monitors and counsels patients
with HIV.
Aruba has a public health laboratory, which makes diagnoses
for surveillance purposes. Internal and external controls
ensure the quality of laboratory tests.
Water Supply and Sewerage Systems. Drinking water is supplied
on Aruba by the Water and Energy Company (WEB), which serves
some 26,000 homes. Average per capita consumption of water in
1995 was 9 metric tons a month. Drinking water is produced by
desalinization of sea water. WEB Aruba obtains more than
31,000 metric tons of desalinated water per day, which
represents a total of about 11 million metric tons per year.
On the basis of the water-quality standards of the World
Health Organization, Arubas water is one of the best in
the world; chemical and bacteriological tests are performed
monthly at 20 sites on the island to ensure water quality.
Wastewater is treated through both individual
systemsincluding cesspits, septic tanks, and direct
drainage into the oceanand the collective system, which
may be by central cesspit, purification of wastewater, and
drainage into the ocean.
Municipal Services for Management of Solid Waste, Including
Hospital Waste. For disposal of solid waste, there is a
12.5-hectare refuse dump located in Parkietenbos. Different
types of waste are taken to this site (refuse from homes,
offices, industry, hotels, restaurants and cafes,
construction and demolition sites), but no documentation is
available regarding the exact amounts. Hospital waste also is
transported and disposed of in the municipal dump. Infectious
waste is burned in an incinerator, which may pose operation
and maintenance problems.
Food Safety. The Communicable Diseases Division tests
food-handlers every six months for shigella, salmonella, and
tuberculosis. Food samples are collected regularly and sent
to the laboratory for testing.
Organization and Operation of Personal Health
Care Services
Everyone who legally resides on the island has access to
medical care. Individuals may obtain insurance privately or
through their employers. The unemployed, the elderly, and the
disabled are eligible to receive a PPK card, which entitles
them to receive care from government physicians. The
Government also furnishes any drugs that PPK cardholders
require.
The main hospital on Aruba is the Doctor Horacio Oduber
Hospital, which is a private, nonprofit institution managed
by a foundation. It has 253 beds for inpatients and 26 beds
for psychiatric care. In 1994 the hospital had 9,970
admissions, with an occupancy rate of 87.2%. The hospital
possesses radiology equipment and performs 2,000 imaging
studies and 40,000 X-ray studies annually. Other services
provided include internal medicine, surgery, urology,
gynecology and obstetrics, pediatrics, otorhinolaryngology,
ophthalmology, neurology, psychiatry, and rehabilitation. The
emergency room operates 24 hours a day and in 1994 attended
25,293 patients, of whom 2,516 (9.9%) were tourists.
The Dr. Rudy Engelbrecht Medical Center is centrally located
in Sint Nicolaas to provide medical care for the citys
residents as well as those from Savaneta, Pos Chiquito,
Brasil, and Cura Cabay and the inmates of the Correctional
Institute. The Center provides mainly primary care. It has an
emergency room that operates 24 hours a day under the
supervision of a general practitioner. Except for pregnant
women in labor, who may be admitted by their general
practitioners, only patients referred by a specialist are
admitted.
As of 31 December 1996, Aruba had 32 general practitioners,
50 specialists, 20 dentists, 15 pharmacists, 4 veterinarians,
4 psychologists, and 3 midwives.
Human Resources
Most physicians receive their training in recognized
institutions in the Netherlands or, to a lesser extent, in
Colombia, Costa Rica, the United States, or Venezuela. The
Hospital has a school of nursing, which trains practical
nurses. Nursing degrees are usually obtained from schools on
Curaçao or in the Netherlands.
Health research is considered an important activity for the
development of public health. In 1996, the Public Health
Department budget allocation for research development was US$
29,000.
Investments
Equitable and sustained economic growth is clearly an
objective of Arubas public spending policy. For
example, a specific objective of the Sasaki Development Plan
and many other public investment projects is to promote
sustained and equitable economic development. Public
investment plays an important role in the formation of both
human and physical capital. Public investment in basic
infrastructure is also an essential requirement for the
accumulation of wealth in the private sector.
Investment is one of the factors that has allowed Aruba to
experience rapid growth. Total investment increased from
around US$ 95.3 million, or 20% of GDP, in 1986 to US$ 436
million, or 31% of GDP, in 1991; however, it fell to around
24% of GDP in 1993, but subsequently rose again to
approximately 27% of GDP in 19941995, a level
consistent with the macroeconomic policy objective of 5% real
growth in the GDP.
Three distinct trends can be identified in the period
19801995. Between 1980 and 1985, there was a decline in
investment and in related economic growth, coupled with a
significant rise in unemployment; during the period
19851990 investment increased to an annual average rate
of 31.5%, with the highest rate (32.2%) occurring in private
investment, which provided a strong impetus for the economy
and, more importantly, fueled a recovery of economic growth,
which had stagnated during the crisis years. In the period
19901995, investment increased only slightly, with slow
economic growth.
Analysis of available statistical data shows that the
contribution of private investment to overall growth of the
GDP has been considerable and that there has been an increase
in capital formation efforts in the past 10 years. In January
1991, average private investment as a percentage of GDP
reached a high of 27%, subsequently declined to 20.8% in
1993, and then recovered in 1994, rising to 24.4% of GDP in
1995. Throughout the period, private investment exceeded
public investment. Access to foreign capital was a key factor
in the increase of the gross investment rate. The Government
stimulated investment through a combination of fiscal
incentives. These measures had a significant impact on
private investment, which became the principal motor of
economic growth.
During the period 19861995, average public investment
reached 3.8% of the GDP and 12.8% of total government
spending. Both, however, began to decline in 1987, which
affected public investment in the social sectors, especially
education and health. The drop in public investment was
linked to two main factors: a salary increase in the public
sector and relatively low tax revenues. Public
investmentincluding foreign aid provided through the
Dutch Development Cooperation Program, administered by the
Cabinet of the Netherlands Antilles and Arubawhich
decreased to a relatively lesser extent than private
investment, underwent significant changes in terms of
prioritization. These changes favored state-run companies,
especially in the energy sector. The negative effects
included a decrease in capital outlays, spending on
operations and maintenance, and investment in social programs
(education and health, in particular).
Investment began to rise in 1995 and continued to do so into
the first half of 1996. Public investment is expected to
increase considerably during the period 19962000,
especially as a result of early application of the Sasaki
Development Plan.
With regard to planned investment in health for the next
period, the Ministry has assigned high priority to the
construction of a psychiatric hospital with 6080 beds
by the end of 1996. The objective is to link the psychiatric
hospital to a small general hospital (70 beds) so that they
can share services such as laundry, laboratory, technical
maintenance, and food service.
Under the present plan, the general insurance system will be
implemented in phases. During the first two years, health
expenditures will probably increase, but then they are
expected to decline. It is also expected that the
reorganization of health services, with an emphasis on
prevention, will lead to a reduction in health care spending.
In this connection, the activities of the Yellow and White
Cross Foundation are seen as very important, and it is
considered necessary to enhance and intensify them. Home
health care, which is becoming increasingly prevalent, should
also be expanded so that it becomes a truly viable option.
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