Small and Micro Enterprises (SMEs) are most likely to be affected by crime, and this fact has contributed even more to the crime scourge than most realise.
This was one of the observations made during the private sector perspective segment on Tuesday during the Regional Symposium: Violence as A Public Health Issue—The Crime Challenge at the Hyatt Regency in Port-of-Spain.
Director of the Caricom Private Sector Organisation (CPSO), Andrew Sabga, explained that SMEs contributed significantly to the regional GDP and, as such, crime’s impact on SMEs had a ripple effect.
“According to the Caribbean Development Bank, SMEs account for approximately 50 per cent of our GDP and 45 per cent of the jobs in the region. The regional private sector is the second and in many member states, the most significant employer and also occupies a complex and highly integrated social and economic positioning among Caricom communities,” said Sabga, adding that these hindrances could impact regional targets such as the 25 by 25 initiative aimed at reducing the region’s food import bill.
President of the Trinidad and Tobago Chamber of Industry and Commerce Charles Pashley also shared the concern that SMEs were most impacted, as he revealed that almost half of the Chamber’s membership had been impacted by crime.
“As Andrew indicated 50 per cent of our businesses in your region are SMEs. And your reality is the smaller businesses are the ones that are most impacted by crime and it goes beyond monetary impacts. It’s also a matter of sustainability as well, whether they can remain in business,” he said, “Therefore it negatively impacts business opportunity and therefore, the economic opportunities of the country. This further impacts the social issues that are causing crime. So, in essence, unless we arrest crime, then the issues that are the underlying cause of crime, which is social inequities continue to get worse.”
Based on public statistics, Sabga noted that crime is more prevalent in inner-city communities. He suggested that greater investment in these communities could spark a turnaround in these areas.
“The evidence suggests that where there are high densities of people living in a community, without the requisite supportive infrastructure, crime and violence were higher. Investment in infrastructure in these challenged communities could have a positive impact on violent crime rates. Such investments would need to be undertaken from a standpoint of urban planning and reengineering which would include recreation spaces, demolition of dilapidated buildings, the construction of social support infrastructure, and institutions,” said Sabga, who explained that these projects could inject these communities with a greater sense of worth and in turn serve as a built-in deterrent to crime in those areas.
“Our collective challenge will be to help communities to restore their dignity through respect, through real opportunities to improve themselves and their fortunes in life. Pride in their environment will be a critical and crucial element in addressing the crime challenge. The restoration of human dignity can only come from truly human leadership and care,” said Sabga.
Pashley explained that economic issues and poverty were, statistically, not the sole driver of crime and agreed that proper investment in challenged areas could drive a turnaround.
“I personally don’t believe that a poor person is a criminal. I think that thesis is not exactly correct. I do think there are socio-economic issues that do cause crime. But this slide would depict their ranges of GDPs and also crime rates throughout the Caribbean. And when you look for instance, at a country, like Belize and Jamaica, both of them have the same sort of GDP. But yet the homicide rate in Jamaica is significantly higher per capita than the homicide rate is in Belize,” said Pashley.
“We have to look at causal effects and on a global basis. I don’t believe that income alone is one of the driving forces underlying when you get into the micro side of it. Income is important in terms of how we invest in our country and in our people.”
