This Government has taken up office in very constrained financial circumstances caused by the fall in oil and gas prices and the local production of both. In fact, after playing a bit with words the Government has accepted that we are in a recession, a situation confirmed by the Central Bank Governor.
In typical fashion of a government that has negotiated during all of its time in office with foreign direct investors in the energy sector–given out licences and production sharing contracts, built and sold Pt Lisas, engaged in the production of LNG–now plans a highway to Toco and another to Mayaro, a fast ferry port at Toco constructed to facilitate transport to Tobago and a Sandals hotel there to attract tourists and hopefully another in Chaguaramas, a plywood factory and a restart on the aluminium products factory with vague talk about the CSME bringing wealth to the region.
In all of this the Government appears to be awaiting the increases in oil and gas prices and new petroleum finds in the deep.
Though we profess to live in a democracy, these projects, which are meant to help diversify the economy are handed down from on high without any proper consultation with the public. The opposition of this public to the aluminium smelter, the destruction of our forests and killing of its monkeys, part of the Point Fortin highway that would destroy the associated ecosystem, is all forgotten, ignored.
Government plans for economic development do not encourage nor include any attempt at political freedom, policy input, on the part of the population; we can demonstrate as in the past, a posteori.
In a properly functioning democracy the way to appreciate, understand, the economic needs of the population is by public consultation, discussion and ideas exchange–via panchayats. These activities are crucial to the formulation of our values, knowledge, priorities and hence commitment.
The population should not simply accept that what is best for us are government preferences, which received no public discussion and acclaim. It is interesting to note that this government went through the public ceremony of creating a tri-partite body, yet the unions are complaining that related government decisions are/have been taken without reference to this body.
We also have a government Economic Advisory Board which, without public panchyats, the Minister of Finance tells us that we will hear of its advice in the next Budget, ie the Government's decisions already taken, would be announced.
There is indeed a view, the Lee thesis (named after Lee Kuan Yew), that this political freedom to be consulted, to discuss proposals of government, to solicit different approaches from the public, is in conflict with efficient and effective economic development in emerging countries. Singapore, South Korea and even China are quoted as examples where it appears that stifling/denial of such political freedom gave high economic growth. Yet there is the opposite in Botswana's consultative economy, one of the fastest growing economies the world has ever seen.
The recession which the Central Bank Governor tells us to read as long standing, with our depleting natural resources and expensive reserves in the deep, catapults the need to diversify the economy to the top of our development agenda. This cannot be done, say, by government decree, announced in Parliament and the economy constructed-Vision 2020 turned out to be a farce. The main objective of this diversification has to be the creation of on-shore companies that produce globally competitive tradables–giving us both economic growth and development.
Many of my articles have discussed the procedure and processes needed to accomplish this diversification and at all times the population is expected to express its democratic and political freedom by its involvement in the decision making of our imagined future.
Quickly: The first step is a public consultation on how we are going to go about this, possibly based on an outline prepared by government or even the private sector or academia, after which a plan is accepted–legitimation. The second step is to decide, via a public discussion, on the technologies and other resources/areas we can exploit given the demands of the global economy–foresighting. The third is a well-informed decision on how this is going to be implemented; for example it is important to create a cadre of bright and passionate inventors/innovators/entrepreneurs who will build the required companies. The fourth step is the building of a national innovation system which has to be proactive and dynamic, designed to take us where the population envisaged.
If we do this we may even be able to emulate Botswana.
Mary K King
St Augustine