Reform cooperation is working, SXM still faces major capacity constraints

GREAT BAY--The Evaluation Committee reviewing the Mutual Regulation for Cooperation on Reforms has concluded that the reform framework has helped structure cooperation and move reform processes forward, but warned that many reforms across the Kingdom remain in the transition from planning to implementation and still require more time, stronger execution capacity, and continuity in key positions. For St. Maarten, the report makes clear that the country’s limited institutional base and implementation capacity remain major constraints, and that continued cooperation is necessary if reforms are to be properly embedded and sustained.

The March 2026 interim evaluation found that the reform agenda launched in connection with COVID-19 liquidity support was exceptionally broad and ambitious from the start. Even so, the committee said the cooperation framework, including support through the Temporary Work Organization (TWO), has helped mobilize expertise, structure implementation agendas, and strengthen the foundations of economic resilience and public administration. At the same time, the committee stressed that progress remains heavily dependent on administrative prioritization, execution capacity, and continuity in leadership.

For St. Maarten specifically, the committee found that the country has made progress in several reform tracks and that reforms are gradually being prepared and implemented. However, it said St. Maarten has the most vulnerable institutional starting position of the three Caribbean countries, with a small government apparatus, limited implementation capacity, and short administrative cycles that often make reforms slower and harder to carry through. The report said this means reform in St. Maarten is closely tied to strengthening the institutional base of government itself.

The committee said that for St. Maarten, the immediate focus should be on building execution capacity, improving organizational structures, strengthening support processes within government, and getting the country’s data management in order. It also noted that St. Maarten is dealing not only with the reform agenda under the Country Package, but also with the parallel recovery program under the National Recovery Program Bureau, a combination that places disproportionate pressure on the country’s already limited absorption capacity. The evaluation further found that this overlap has so far produced little synergy.

Against that background, the committee recommended that cooperation with St. Maarten continue for an additional two years after the current arrangement expires, and urged the parties to reach administrative agreement on that extension by the second quarter of 2026 so there is clarity on the way forward. It said this next period should focus primarily on implementing ongoing reforms, strengthening national execution capacity, and ensuring durable institutional embedding of reforms within government, with clear prioritization and phasing of the most essential reform tracks.

The report also called for special attention to the further professionalization of the civil service, including stronger personnel policy and HR capacity. In addition, it said St. Maarten should view the eventual release of capacity from NRPB as an opportunity to strengthen the government’s own execution capacity. The committee further advised that the expertise, resources, and implementation support built up through cooperation with TWO should be maintained during this period, with a clear focus on realistic prioritization.

More broadly, the committee recommended continuing the cooperation framework overall, noting that structural reforms need a longer time horizon and that autonomy should not be used as a reason to avoid cooperation. It also called for a broader political and administrative discussion, in the near term, on the future design of reform cooperation within the Kingdom. For St. Maarten, the committee said it is important that the country actively participate in those discussions and begin timely talks with the Netherlands on how cooperation and support could be shaped beyond 2029.

The report underscores that St. Maarten, Curaçao, and Aruba have all been part of a shared reform framework within the Kingdom, one designed to strengthen economic resilience and administrative capacity while respecting each country’s autonomy. Under the Mutual Regulation for Cooperation on Reforms, the three countries remain owners of their own reform processes, while working within a common structure built around country packages, implementation agendas, plans of approach, and regular reporting. The evaluation notes that this model has created a more structured form of cooperation, grounded in the principles of ownership, equality, and common purpose.

At the practical level, the committee found that cooperation among the countries, supported by the Netherlands through expertise, financing, and implementation support, has helped get reform processes moving. Joint implementation agendas, structural coordination, and the support of the Temporary Work Organization have helped mobilize capacity and bring greater organization to reform efforts in Aruba, Curaçao, and St. Maarten. While the report makes clear that each country faces different institutional realities and reform stages, it concludes that cooperation within the Kingdom has contributed to knowledge sharing, institutional development, and stronger execution support, and should therefore continue rather than be allowed to fall away.

The full report can be found below.

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