The week that has passed was titled Caribbean Investment week. The first part of the week consisted of the Caribbean Investment Forum, a two-day conference organised by the Commonwealth Business Council but for which much of the work was done by the Ministry of Trade and the staff of the Trade and Investment Conference (TIC) as well as various ministries and Business Support Organisations.The second event, which ended only yesterday, was the TIC, the largest trade show in the English Speaking Caribbean.Speaking at the opening of the event, TIC Chairman Anthony Aboud praised the Government as having done more to promote investment into T&T than any other government. The Prime Minister has been emphasising that T&T is investor friendly. In addition, she has been using political fora to promote business. These are positive developments.
However, a survey of the participants of the TIC, reveals a minuscule number of truly indigenous businesses. Importers, distributors, retailers of foreign-made goods dominated the list of local businesses. The pavilions of Panama, Brazil, Costa Rica and China all showcase products-from food to machinery- made in those countries; more products to buy with foreign exchange and sell on the local market with almost no value being added locally.After decades of being investor-friendly-a policy which has been consistent over the terms of several governments-the country must ask itself if it is content with the current levels of local production. Arguments for total food security and buy local campaigns must be tempered but certainly this country has to do much more to develop businesses and industries which utilise local inputs (including people) to a greater extent.
In this context, the aligning of the country's investment policy with the industrial policy is important. In addition, land use and environmental policies must be used as inputs into the former two.The tertiary education strategy must support these and all must be linked to the country's foreign policy. The country must develop a meaningful brand T&T. This cannot just be a tourism oriented branding campaign; it must be relevant to business as well.While this is being done, mechanisms to make financing available to non-traditional businesses, particularly those that have the potential to be high impact have to be further developed.
In tandem with this, the aspects of government operations which impact business competitiveness must be addressed.It should be acknowledged however, that a complete overhaul or rapid, radical changes in any sector of the society could have disastrous consequences not only for the government but for the country.Admittedly, with so many competing interests and mistrust of politicians and political interests running high, a delicate balancing act is required. In the UK, the junior partner in the governing Coalition is taking a beating. It lost ground in local elections and its leader is under fire from several quarters for reneging on campaign promises.
One could argue that the situation in T&T is similar in some ways as there is a perception that the PP continues PNM dole programmes and there is an attempt to 'out PNM the PNM' as someone described it recently. However an article in the May 14 edition of the Economist asserts that the inner circle of the Deputy Prime Minister of the UK is willing to take the beating in favour of stability as "the British public needed convincing, from the start, that a Coalition government works."In this case, the country needs convincing not only that the Coalition Government will work but also that the Coalition Government will not take away overnight those things on which people had become dependent.
Having done that to some extent, the policy must change from sustenance to empowerment. The Cepep programme should be returned to its original objective of creating entrepreneurs and developing skills. The URP should be there only for temporary employment and twinned with a job placement scheme linked to private sector needs. It is unconscionable that while T&T engages in deficit financing, the Government spends hundreds of millions of dollars on 'unemployment relief' while the private sector complains of labour shortages.Make no mistake, Government has much work to do to create the enabling and facilitative business environment of which they speak.
But the business community has a responsibility to do more as well. In a period where financial institutions complain of excess liquidity-too much cash in the banks-and interest rates are below the rate of inflation in most countries, local businesspeople have to make a statement that they are committed to T&T for the long haul. More local investment is required.Having acknowledged that the Government is working to make the business environment more conducive to business activity and seeing a (small) dent in crime business people must come forward, too. After all, one hand doh clap.