The state enterprise EtecK, charged with the non-energy diversification of the economy, has spent some $1 billion on its flagship project, the Tamana Science and Technology Park. This funding is made up of government spending and loans. There is very little to show for this spending (while loans have to be serviced). According to the current chairman, Brian Frontin, "If you want to see the $1 billion you can't see, walk into EtecK Tamana!" The chairman recommends that this Government should not invest anymore into the Tamana project but look at marketing the area.
The chairman says that two companies are interested in locating in Tamana, one of which is a data centre. It is useful to note that these data centres are huge consumers of electricity and concessionary pricing of gas-derived electricity may be the carrot. Further, he sees that our trade agreements, especially with Latin America, which can make us a gateway into the region, can attract the Indian companies-the focus of the last visit to India. Also, EtecK plans on engaging consultants from the US and India to help us chart a course of action for Tamana.
The Tamana Park project spans both a UNC and a PNM regime. Both sets of planners based their ideas for Tamana (initially Wallerfield Park) on the premise that if certain amenities existed, foreign investment would flock to Tamana. The park was supposed to offer good telecommunications (now standard anywhere of note), nearness to South America and our trade agreements (but the major countries/investors are doing business directly with South America), skilled human resource (with no record of industrial inventiveness or innovation) and whatever.
The consultants the UNC government employed had a track record in constructing a park somewhere in the world-they were experts in construction. They were concerned with enticing IBM, GE and the like to locate at Wallerfield. With the change in government to the PNM, construction still remained the premier goal with the addition of a UTT flagship campus that was supposed to add a knowledge flavour to the park. The approach to development of the subscribers to this technology park remind us of such successes in Singapore, Shannon in Ireland and the many such parks in the US, particularly Silicon Valley. What they fail to discuss or consider is that these parks developed because other major drawing cards existed and not vice versa.
For example, Shannon and its neighbours were truly gateways for the US into the EU given the large market that was developing in Europe; Singapore was a major transshipment port for Asia and of course Silicon Valley was the hub that connected the stellar University of California, Berkeley, the large company Hewlett Packard and the highly skilled digital engineers of the area. The lesson here is that a technology park makes sense if the basic economic entities and their interconnections exist. Hence attracting foreign investment into Tamana would have been at the production level (as is our current manufacturing) and this would depend on the kind of tax and resource concessions we were willing to give-subsidised electricity and natural gas prices, for example. This is not sustainable development.
EtecK's chairman and the Ministry of Trade should try to understand what is government's role in economic diversification; today the accent is on innovation. Recognise that given our poor technological expertise in a world where technology drives global competitiveness and hence economic development, government's role is to centrally drive economic development through its centralised thrust into creating these economic entities and their interconnections via the building of an innovation system. Building new infrastructure (eg a high-speed Big Broadband network) and international marketing may be part of the innovation system but this includes, for example, the establishment of centres of excellence that focus on specialised knowledge acquisition, application, its creation (R&D) and the resultant world leading products and services for export.
Mary King
Via e-mail
