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GEORGE TOWN - Caribbean economist Marla Dukharan says Cayman’s economy is strong right now, but its eggs are in a handful of baskets.    Presenting at this year’s RF Cayman Economic Outlook conference, Dukharan said, "I have demonstrated Cayman's success at financial services, but also its overdependence on this sector, which is a risk and a source of vulnerability. "

Diversification is generally the first answer we hear when seeking a way to mitigate that risk, but Dukharan proposes another idea.  “If we treat this sector and the real estate sector as if we are an oil exporting nation, as if this sector is .. is a finite and depleting resource and the earnings from this sector, these sectors will not always be so buoyant. Then what we should do is perhaps set some of the revenue aside in an independent sovereign wealth fund with the highest levels of transparency and governance standards and use that fund to finance Cayman's vision.”

The islands right now have at least as many imported workers as Caymanian ones.  Ms Dukharan says that imported labor will always be a factor, but more can be done to break through the glass ceiling for Caymanians.   “Caymanians can stand to dominate the top slice too, not just the middle, she said. “We can protect those below and do a better job at supporting women and families and we can achieve all of this with the right policies and if any country can do this, Cayman can do it.”

The RF Cayman Economic Outlook is an annual conference. This year’s theme is Evolving Risks, the way forward.