Nevertheless, the analysis has shown that (for) the Carnival industry the balance between financial inputs and financial/economic gains is positive. The overall economic impacts are: increased commercial activity; an expanded tourism product which has led to increased tourist receipts; and a diversification in foreignexchange.
Jo-anne Tull, Money Matters–T&T Carnival 2005
One of the more positive measures adopted by the People's Partnership administration is the recognition that the Carnival business model which has evolved over the past five decades does not meet the needs of the 21st Century producers and consumers of the Carnival product and is in dire need of re-engineering.
Soon after his elevation to the Cabinet as Culture Minister, Dr Lincoln Douglas announced his recognition of the problem and said he was open to proposals for privatising and franchising Carnival operations, including foreign ones. And when his suggestion was immediately met with opposition from the state-appointed chairman of the National Carnival Commission, a representative of the Carnival status quo, Douglas quickly had him fired. That was a good start.
But while it is an important first step, recognising that you have a problem is not the same thing as doing something about it.
The Carnival measures announced this year, including changes to the format of the Dimanche Gras competition, the Kings and Queens of Carnival competitions and the Calypso Monarch are piecemeal and fall far short of the radical overhaul needed if Carnival is to become the major economic contributor it needs to be.
Carnival attracts approximately 71,036 visitors last year's official AATT figures. Hundreds of thousands of participants take part in some form of Carnival activity even if it is just listening to calypsoes. Despite this, the creative talent behind what has been described as a billion-dollar Carnival industry, struggles to make ends meet even as its premier shows have been suffering declining audience participation for several years. Their plight has given much comfort to a small but virulent lobby which seeks to deny the significance of Carnival on grounds that are both ahistorical and unintellectual. It does not help, however, that Government keeps throwing millions of dollars into the festival without providing any justification save that "it's for the Carnival."
This year Douglas has announced the second largest ever allocation for the annual festival. On January 17, at a post-Cabinet media conference, the minister announced a $27 million increase in the allocation (originally $197 million) for Carnival 2013, taking the annual subvention to $224 million, from the $237 million approved for last year. This is almost double the $123 million allocated in 2009 and 2010 and the $122 million voted for 2011.
What Carnival needs is less government money, not more, and if Douglas is serious about creating a Carnival industry, then the first step which needs to be taken is for the Government to get out of Carnival and simply become the regulator. This will create a proper legal framework for the industry, enforces the applicable laws and transfers the management of the Carnival industry, including the determination of prizes, to the market.
An appropriate legal framework would ensure the pan players and calypsonians are rewarded for the use of their intellectual property; that masqueraders are recognised for their roles as players and consumers; spectators actually pay for the entertainment they enjoy; and businesses contribute a realistic rent for their ambush marketing during the festival.
Government's involvement in Carnival with easy money for prizes, tents, shows and all manner of activity has crowded out innovation and stultified the industry. The Panorama competition is more or less the same as it was when I first attended more than 25 years ago, and one suspects the model has remained relatively unchanged over its 50 years. It is the same for the Calypso Monarch competition, and the now-subsidised tents have become so heavily dependent on the State as to stifle the leading proponents. And what has been touted as the most successful event, the Soca Monarch, is now so heavily subsidised by government ministries that it makes a mockery of its status as an NGO which pays no taxes.
But the failure of the Carnival enterprise is not just a failure of the governments, past and present, but a failure of the business community. The latter has allowed itself to be crowded out by state largesse and has been slow to capitalise on the potential for an experience good which attracts thousands of consumers and has significant export potential. The academic community as well has produced a paucity of quantitative research on such a major driver of economic activity for a quarter of the financial year.
The biggest failure is, however, actually the Carnival fraternity, which is remarkably slow to adapt to change. A good example is the pan official who argued that through the absence of a television broadcast, old panmen were denied seeing the Panorama free, rather than see the revenue loss to the current panmen from a television station's reluctance to pay for the broadcast.
There will always be myopic views on Carnival, like objections to its contribution to the increase in the country's birth rate. One would think that as a country with an ageing population, a low birth rate, and considerable financial resources, we should welcome any activity that would realise an increase in the number of citizens. The high birth rate attributed to Carnival, although not borne out by any empirical data, is therefore not an "opportunity cost" of the annual staging of the festival but a positive externality for which the State should be grateful.
Douglas' first step, instead of throwing more bad money into the festival, should be to commission a business case study of Carnival, as a prelude to consulting with stakeholders for the radical changes required. Without it, all the allocations will amount to nothing more than money jumping up in steelband.
Maxie Cuffie runs a media consultancy, Integrated Media Company Ltd, is an economics graduate of the UWI and holds an MPA from the Harvard Kennedy School as a Mason Fellow in Public Policy and Management.
