T&T is one of the most attractive places for investment in the Caribbean, says Dr Warren Smith, president of the Caribbean Development Bank (CDB). "Trinidad, of all the Caribbean economies, is one of the most attractive of places for foreign companies, whether they are involved in the financial sector or they are involved in the petroleum-related sectors," he said. "It is a relatively diversified economy and T&T has experienced high rates of growth in the last ten years. The numbers I have seen suggest that T&T has been able to almost triple per capita growth domestic product (GDP) over the last ten years, which a very impressive performance. What that does is provide a domestic market for new products. That's an important attraction for investors," he said.
Smith said investment in the Caribbean is unevenly divided. "The Caribbean has invested a relatively high level of investment that has happened in ten to 15 years. This investment has not been even across the region and across sectors. It has tended to be in tourism sectors and also in the mining and commodity sectors." He suggested that Caribbean countries need to create the environment where investment can be attracted in other areas, especially in areas that involve innovative and are related to production. "I mentioned, for example, broadband where studies have shown that there is the opportunity to boost economic growth and development and attract young people who have a capacity for this type of activity." Smith was speaking two Wednesdays ago at the Fourth Biennial International Conference on Business, Banking and Finance at the Hilton Trinidad hotel, St Ann's.
Obstacles to integration
Smith said Caribbean integration is a process that will take time. "The CDB holds the view that, ultimately, the regional economy, an integrated regional economy and regional markets are the desirable objectives. There are many steps that needs to be taken before we arrive at that. "Recently, Caribbean heads met in Guyana and had a discussion around the matter and a decision was taken to have a pause and this pause will be giving them an opportunity to re-examine the progress and to look at obstacles that have been encountered and new initiatives will be launched," he said. Smith said integration in Europe took decades. "We in the Caribbean get very impatient about integration, but we need to learn from the progress of the European Union (EU). It took 60 years to get to where they are, and at the core of that union was very well developed countries, economies and societies. "What we are trying to integrate here are relatively underdeveloped economies, so I think we should keep the faith and put in place the institutions which would form the basis of that."
Beyond Caricom
Martin Pritchard, managing director of the Barbados-based conglomerate, Goddard Enterprises, said it is good for Caricom companies to look for growth beyond the region. "If we want growth, we have to look beyond the region. There's one T&T company with a manufacturing plant in Malta, where they manufacture biscuits, I think it's Associated Brands. They have obviously seen a niche there and gone for it," said Pritchard, who spoke at the conference. He said the Caricom Single Market and Economy (CSME) would aid in growing businesses in the Caribbean. "I would like to see the CSME up and running. In the Caribbean, we need to take more risks and be more aggressive. You can lose in taking risks, but there are also rewards," Pritchard said.