Purchasing Power Model: New tool to measure the impact of policy on purchasing power
ORANJESTAD – The Council of Ministers recently approved a purchasing power model, "Koopkrachtmodel," to discern how government management affects purchasing power.
The process for the purchasing power model began in January 2024, when Minister of Economic Affairs Geoffrey Wever allocated funds from his budget to create the Koopkrachtmodel. There was a need to add this to the existing governmental tools, and now, government departments must consider the possible impact of management on purchasing power.
The Economic Bureau of Amsterdam developed the Koopkrachtmodel this year and gave a presentation to the Parliament of Aruba, the Council of Ministers, and commercial guilds. The management and execution of the purchasing power model are in the hands of the Department of Economic Affairs, Trade, and Industry (DAECI). Furthermore, DAECI will be responsible for the macroeconomic model MARUBA to ensure the use of the purchasing power model.
Given the direct connection between economic development, purchasing power, and poverty, the Council of Ministers expanded the MacroModel Commission to include the Department of Social Affairs' participation. The Koopkrachtmodel, as a management tool, will contribute to greater transparency when implementing policies.