There are many global issues facing the world today, from the present financial crisis to the change in the world’s climate. A financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value (Wikipedia, 2009). Climate change, on the other hand, is described as the buildup of man-made gases in the atmosphere that trap the sun’s heat, causing changes in weather patterns on a global scale (Enviro- glossary). Larger countries are not the only ones that have been affected by these two issues, as smaller islands have also been affected. One such country is the small island state of Grenada. Developing countries and developed countries are all inter-connected, in that, any effect whether positive or negative on the economies developed countries affects the economy of developing countries. The first and second world countries have felt the ‘thump’ of the global financial crisis which have caused an increase in the rate of unemployment, decrease in consumer demand and spending and investments into developing markets. “The current global financial crisis is having an adverse impact on our country and on the performance of its economy” (Hon Tillman Thomas, 2009). The financial crisis has forced the Grenadian government to focus on ways to boost the economy from within, spending excessive amounts of money on stimulation packages for the economy. Unfortunately, because of this same crisis, investors have withdrawn their funds from the country because of their loss of confidence in its financial assets. One can say that they are ‘playing it safe’ by avoiding risks. Many investments have been put on pause other foreign direct investors have decided to withdraw their investments. The Grenadian economy benefits directly from the migration of its citizens. Remittances, as a part of GDP, increased by 3.7% at the end of 2000 for Caribbean countries (Roberts, 2007). According to the Human Development Report in 2009, Grenada’s emigration rate is 40.3 %. Remittances of US fifty- five million dollars were sent to Grenada in 2007 and the average remittances per person were US $524.00. Consequently because the financial crisis is also affecting other larger countries, migrants are also among the people loosing their jobs resulting in a decrease the remittances sent to Grenada, reducing the gross domestic product of Grenada. The financial crisis has also reduced the spending power of consumers of the developed countries. In other words, they are holding onto their wallets tightly, and travelling less. The number of tourist arrivals dropped from 136,510 in 2002 to 123,475 in 2006, which is a 9.55 % drop in tourist arrivals (Board of tourism, 2006). This drop in tourist arrivals into Grenada decreases the business opportunities for this tourism-dependent country whose economy is highly dependent on the tourism sector. Market vendors and tourism dependent businesses such as the beach vendors market, gift shops and spice markets would be subjected to reduction in income and in some extreme cases the closing down of their businesses, which leads to a higher unemployment rate. AOSIS Leaders stress that the provision of finance for adaption by small island states and other vulnerable countries must be an urgent and immediate global priority (The Grenadian Voice, 2009). The Alliance of Small Island States is an intergovernmental organization of low-lying coastal and small island countries whose main purpose is to consolidate the voices of the small island developing states to address climate change. Adverse climate change affects some of the most important risk factors for health, such as the availability of fresh water and food. It also affects several climate sensitive diseases including those with the highest disease burden such as malnutrition, diarrhea and malaria (Pan American Health Organization, 2008). Therefore, climate change will be disastrous for small island states such as Grenada; which could very well be exposed to many climate sensitive diseases such as dengue malaria and yellow fever. Rises in sea levels, longer dry seasons, potential droughts, a change in weather patterns and heat stress are some of the anticipated results of the climate change on Grenada. Mr. Aaron Francois, a featured speaker, at the National Youth consultation on climate change and its implications for water resources in May 2007, expressed his concerns for Grenada’s water supply. He stated that “Grenada’s total water supply is expected to reduce with increased potential for water shortages, especially during the longer dry seasons”. The sea level in the Caribbean is expected to rise by as much as 5 millimeters per year, for the next 100 years (Burnham, 2007). The rising sea levels will increase salt water intrusion risk within wells that are in close proximity to the coast of the island. There would also be a reduction in the quality and quantity of fresh water for the small island due to the salinisation of wells in the southern peninsular. In addition, rising sea levels would result in loss of coastal infrastructure such as roads, residential and tourist accommodation and utilities. Climate change, therefore, would indisputably affect Grenada’s tourism sector - a major revenue earner and also a generator of significant employment. With already much man-made erosion such as sand mining and construction in active beach zones, the beaches arguably are on their way to ‘eradication’. The rising of sea levels amplifies the erosion of these beaches- the jewels of Grenada’s tourism industry. The agricultural sector also has the potential to be affected by the present climate changes. There were only few experiments and studies undertaken for the Caribbean but it is suggested that there would be lower yields of crops due to the higher temperature and salinity intrusion. Salinity intrusion would reduce soil fertility and an increase in the temperature would cause shorter growth duration and increased sterility for the crops. Agriculture is an important fuel to Grenada’s economy and is considered a livelihood for many small farmers; therefore climate changes would increase unemployment rates and decrease food availability.

In conclusion, “Grenada like the rest of the ECCU and the Caribbean have been hit by the global crisis economic downturn- a negative shock more devastating than the recent hurricanes in terms of employment and growth. Economic activity is slowing faster than expected just a few months ago, reflecting the severe drag of the global crisis on tourism receipts, Foreign Direct Investments, and remittances. Almost all Foreign Direct Investments-financed tourism projects remain on hold” (IMF, 2009). The International Monetary fund’s representative gave a full picture of the current effects of the financial crisis on Grenada. In addition, climate change will also affect Grenada in terms of its water resources, Agricultural and Tourism sectors and alter its already devastated unemployment rate. “All across the world, in every kind of environment and region known to man, increasingly dangerous weather patterns and devastating storms are abruptly putting an end to the long-running debate over whether or not climate change is real……………..” (Obama, 2006). The question now to be asked is “What can be done to alleviate these two global issues that are now affecting the Spice Isle of Grenada?”
Reference:

• The Grenadian Voice (2009). Special significance to AOSIS meeting, Vol. 29 No.39, 01. • Grenada Informer (2009).Statement by an IMF staff mission to Grenada. Vol. 25 No.38, 06.

• Grenada Board of Tourism (2009). Annual Statistics Report 2006. retrieved October 13th , 2009 from http://www.grenadagrenadines.com/upload/Grenada_Annual_Statistical_Report%202006.pdf

• The Caribbean Youth Environment Network-Grenada and the Global Water partnership-Caribbean (2007). National Youth Consultation on Climate Change and its Implication for Water resources. Retrieved on October 13th, 2009 from http://www.cyen.org/innovaeditor/assets/Grenada%20Consultation.pdf

• Human Development Report 2009. Human development report 2009 on Grenada. Retrieved on October 13th, 2009 from http://hdrstats.undp.org/fr/countries/country_fact_sheets/cty_fs_SRB.html

• Pan American Health Organization World Health Organization(2008). 142nd Session of the executive committee. Retrieved on September 25th, 2009 from http://docs.google.com/gview?a=v&q=cache:T_yIFxBKdJgJ:new.paho.org/hq/index.php%3Foption%3Dcom_docman%26task%3Ddoc_download%26gid%3D1093%26Itemid%3D+Pan+American+Health+Organization+World+Health+Organization(2008).+142nd+Session+of+the+executive+committee.&hl=en&sig=AFQjCNEL3iZxy5WTdLdKmF4y9uMMfphm3A

• Caribbean Net News. Grenada PM discusses global economic crisis with trade unions. Retrieved on October 13th, 2009 from http://www.caribbeannetnews.com/news-13735--32-32--.html

• Debra Roberts. The development impact of remittances on Caribbean countries : a Case on Guyana. Retrieved on October 15th from http://docs.google.com/gview?a=v&q=cache:J9wRblH6a3sJ:sta.uwi.edu/conferences/salises/documents/Roberts%2520D.pdf+how+much+of+grenada's+gdp+is+made+up+of+remittances&hl=en&sig=AFQjCNFShPnM7jzBM39by9iwHR_Y3Sy-KA

• Communications with Mr. Steve Nimrod, Scientific researcher at St. George’s University

• Communications with Mr. Rupert Augustini ,Financial analyst and manager of W.R Augustini and Company,

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