The recent passing to The Great Beyond of Baroness Margaret Thatcher has brought to my mind an article in a daily newspaper in February 1994, which was headed, Thatcherite Disciples Come To Town. This article was written by well-known, respected and competent journalist of long standing, David Renwick, and highlighted a visit to Trinidad and Tobago of two staff members of the Adam Smith Institute Consultancy of London, England (ASI).
Indeed, I remind myself of my own involvement with, and subsequent visit to, the offices of the ASI. What then does the title of the institute convey? What is its relationship with Thatcherism as implied by Mr Renwick? Indeed, what was the possible connection between the "Iron Lady" being reputed internationally as being the "prime mover" in the dismantling of the Soviet Union and state capitalism and the relatively small nation of T&T?
Well, the work of the Adam Smith Institute, as may be gleaned from its title, was based on the basic principles of the great British Classical Economist, Adam Smith, which provided the foundation for the Thatcher\Reagan Economic Philosophy. Here, therefore, we may recall that Adam Smith had postulated that by "free competition" and specialisation in the market for goods and services, total welfare, both individually and nationally, would be maximized, the major limitation being the size of the market itself.
Adam Smith was relentless in his attack on monopoly and monopolistic situations.
It is interesting to note that the offices of the ASI were located within walking distance of the British Houses of Parliament and that among its patrons were such notable personalities as Lord Blake, Viscount Lord Montgomery and Lord Taylor. One sensed a somewhat "crusading spirit" in the work of the Institute, the aim of which being the promulgation of "Thatcherism".
The visit of the "Disciples" to T&T was recommended to the authorities by Prof Kenneth Julien, then Chairman of T&TEC inter alia, who had been on a visit to the UK along with Emile Charles, then CEO. of WASA. "In keeping with their fundamental operating principles, the ASI recommended:
1. The privatisation of T&TEC and TSTT;
2. the establishment of a Competition Authority whose duty would be to provide, as far as practicable, a "level playing field";
3. A revamped regulatory framework the modus operandi of which would, in light of the recommendations at items 1 and 2, be different from those of the then existing PUC .
Here it should be noted that the Port Authority (which one minister had indicated was to be operated by a non- Government entity along commercial lines), as well as the PTSC have, more or less, returned to almost complete ministerial control today leaving the RIC with jurisdiction over the T&TEC and WASA only.
It is clear to this writer that, notwithstanding some initial indications to the contrary, the recommendations of the ASI were accepted and implemented only partially by the Government of T&T. This is clear from the following:
1) The initial splitting of the generation and distribution functions of T&TEC with the former being a part-private Government entity has, in fact, been aborted with the generation function having returned to State ownership, thus leaving a somewhat minuscule private involvement in the national grid in the form of Trinity Power;
(2) The regulatory framework, which had intentionally been fashioned for entities operating in a competitive environment, has found itself having to handle bodies which have remained either as monopolies or near-monopolies:
(3) Mr Assam's Fair Trade Bill on which much work was done, is yet to reach the precincts of the Parliament;
(4) However, it is perhaps in the field of telecommunications that implementation may be said to have been in accordance with those of the consultants. Thus, the TSTT has, no doubt due, in part to technical and international considerations as well , has been opened up to competition, both in its core and ancillary services, with regulation being in the hands of the Telecommunications Authority.
Needless to say, on a general note, that the floating of the TT dollar could be seen as being within the context of the Thatcher\Reagan policies of World Economic Liberalisation. Finally, I venture to say that Mr Renwick's description of the visitors was quite apt.
Errol Benjamin,
Tacarigua