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Where are Businesses in Caribbean Business?

Like-pressure-cookers-waiting-to-explodeThe countries of the Caribbean Community and Common Market (CARICOM), with the exception of Guyana and Suriname, are each experiencing severe decline in their economies. The small Leeward and Windward Islands are worst affected, and so too is Barbados

Governments are struggling to find ways in which to spur economic activity that could produce growth. 

Meanwhile, unemployment and poverty are growing. Unemployment is highest amongst the youth, making for an alarming situation.

Presenting a lecture to students of the University of the West Indies recently, I received the greatest applause and nods of approval when I lamented the fact that there were now many graduates of the University who were unable to find jobs that correspond to their level of qualifications, if they could find any jobs at all.

Many Caribbean countries are like pressure cookers, waiting to explode. Only migration and remittances from family abroad are easing the pressure. But, even these valves are not sufficient to relieve discontent completely.



In many cases, this has led to borrowing from local statutory bodies, such as national insurance and social security schemes, to fund capital projects and even to pay wages and salaries. Governments have also borrowed from local banks, causing them to carry the greatest risk if there is a default.

A few governments have also borrowed from the Government of the People's Republic of China, and while many of these loan agreements have not been made public but are said to be concessionary, they have added to the burden of national debt and will have to repaid in the future.

Where is the Caribbean business community in all this?

They appear not to be involved at all. Indeed, in some CARICOM countries, the only involvement of the business community in the present difficulties is that some of them are seeking greater concessions from governments.

The recent Landell Mills report to CARICOM Heads of Government on the restructuring of the CARICOM Secretariat points out that the regional private sector is “fragmented and divided” and many “key private sector players do not even bother to get involved”.

This situation is not good for the region or for the private sector. It is not governments that trade; it is businesses.  Therefore, the business community throughout the region should have a keen interest in the meetings of CARICOM trade ministers and meetings of heads of government. The decisions they reach have a major impact on business and on the capacity of businesses to contribute to economic growth and development.

Yet, there are no regular and structured meetings between Caribbean governments and the Caribbean private sector.  In other words, governments reach decisions with little or no input from the private sector which they all proclaim is “the engine of growth”.

It is telling that the member countries of the Organization for Economic Co-operation and Development (OECD) and the European Union Commission regularly consult the private sector of their countries recognising fully that the rules to which they agree, or set, are meant to facilitate businesses on which their economies depend for growth, employment and prosperity.

The Landell Mills report states what should be obvious to all: “The private sector’s views on what works and what does not and on where priorities lie would be invaluable”.  For some reason, it does not appear obvious to many CARICOM governments. They treat the private sector with suspicion. Only Barbados has a system of structured consultations with the private sector in joint meetings with trade unions, but even these meetings are not attended by the “key private sector players”.

As the report says, the officials who attend these meetings “are often not business people themselves”.  The latter point suggests that serious business people see little point in engaging governments which fail to act on the proposals they put forward.

The report recommends “regular small and informal meetings, possibly over dinner. In our experience an informal arrangement is the best way of building up relationships and getting busy executives to open up on a freewheeling basis”. There is merit in this idea provided it is done in an open and transparent manner. 



If not, it will lead to allegations of favouritism, discrimination, and marginalisation from others who are not invited. There should be no guessing about who is coming to dinner. The report also dismisses the notion of structured meetings, including a council of representatives of governments and the private sector.

But such a council is necessary, and it would be well attended if it comprised heads of government and leading business figures from across the region. Both groups would want to be sure they are dealing with persons who can make and implement decisions.

Of course, businessmen will cease to attend meetings, whether it be small working dinners or a council, as soon as they get the first inkling that nothing is done as a result of the discussions.

How to achieve a higher level of confidence between governments and the private sector is a challenge. Each group needs the other if the economies in which they operate – and indeed the Caribbean Single Market – are to be advanced so as to create jobs, reduce poverty and to grow.

In 2009, as head of the Jamaican-based company Grace Kennedy, Douglas Orane told a regional private sector body: “The CARICOM region needs to go through a process of self transformation."

The vibrant Jamaican private sector is well placed to propose a basic plan for the regional business community’s involvement in, and contribution to, the region’s economic progress. With the help of the new Jamaica government, such a plan could be a basis for wider regional discussion, refinement and adoption at the regional level.
 
Businesses cannot be left out of business.

Sir Ronald Sanders is a consultant and former Caribbean diplomat.
 
Previous commentaries at: www.sirronaldsanders.com

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18 Comments In This Article   

HEADER   

@ Dig IT - Of Humans, Birth, Growth,Change & Death. PT2

#18 John French II » 2012-03-31 21:49

Notes From A Native Son Of the Rock. History teaches that Most successful Nations are a culmination of the Visions of several small states, provinces, districts, external territories and peoples. Most English Speaking Caribbean Peoples embrace the West Indies Cricket Team as their own. They embrace their respective National teams but are willing to check their egos, whether the team is enjoying the joys of victory or the agonies of defeat. The People, notwithstanding their differences are ready. The Politiocos and Business Leaders are not. It is not in their interest of trappings of pomp and power. Any "Irrational Fool" knows beyond a shadow of doubt that states with less that 300K people cannot sustain the size of government and the attendant involvement in international bodies. Yet they persist. What exists for Business is akin to the African Slave Traders, who traded slaves but had none of the logistics to ensure its success. This they ceded to the North Atlantic Businesses. Ships, Merchant Seamen, Markets, Auctioneers, Insurance, Banking ad nauseum. Has the situation changed in today's Enterprises. Salute to Your Steady Transformation. Much Respect.
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John French II

@ Dig IT - Of Humans, Birth, Growth,Change & Death. PT1

#17 John French II » 2012-03-31 21:27

Notes From A Native Son Of The Rock. That Xenophobia exists and will persist is without question. In understanding Change, it is critical that those who wish to initiate Change must understand the Human Dynamics of Change and at the same time educate those fearful of Change of the human and range of emotions they must endure. Most people understand the range of emotions they must and will expeience in the death of a loved one. We must learn to Quote:
Accept fate, and move on. Don't yield to the seductive pull of sel-pity, at least for any extended period of time. Acting like a victim threatens your future. You're better off if you appear resilient and remain productive. Just stand proud, pick up the pieces, and start putting (things) back together.
This exhortation, many decades before it became a dictum of Srvival Guide to Organizational Change, was understood, developed and practiced by VC Bird in his singular and visionary effort to encourage a smaller Caribbean Nation of the "Little Eight" and his success in getting Barbados & Guyana to embrace his vision of CARIFTA. This was long before NAFTA, EU, ECOAS, ACP and The Great Leap Forward.
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John French II

@Morris

#16 Dig It » 2012-03-31 21:14

Morris, agreed indeed! With that said, I will take the next bus out! Bless.
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Dig It

@ Dig It

#15 Morris » 2012-03-31 20:06

I do believe that the biggest hurdle is "trust." For an integration of this scale to succeed trust must be the foundation of the alliance, and they way we tear each other down clearly shows this.

Another thing based on the way things are looking, I doubt those islands that are doing better in some regards would be willing to make the necessary compromises to help bring the not-so-fortunat e islands up to par. As John French II so rightfully puts it, "They need a transformationa l/long-term mindset instead of the current transactional/s hort-term system of operation."
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Morris

@Pompey, M Habib, Skyewill, French II, Morris pt 2

#14 Dig It » 2012-03-31 19:49

As the SVG PM said new immigration policies against “illegal Caribbean immigrants” could put the “dagger” in CARICOM. He continues that Quote:
It is sad to note that in the 21st century, some responsible persons, including some political leaders are stoking chauvinistic fires which are latent in our Caribbean societies.This has led here and there to an outpouring of a malignant xenophobia particularly against Guyanese, Jamaicans, Vincentians, St. Lucians and Grenadians.
www.antillean.org/2009/05/14/ralph-gonzalves-blasts-barbados%e2%80%99-new-immigration-policy-may-consider-withdrawing-from-csme/
Since there is little/nil “cooperation,” how can these member countries “pool-their-res ources” and stop living a “life of total subjection?”
It just "defeats" the purpose to think that, besides playing WI Cricket, these islands will be "united!"
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Dig It

@Pompey, M Habib, Skyewill, French II, Morris pt 1

#13 Dig It » 2012-03-31 19:42

As far as I know (correct me if I am wrong) the strategies of completing the plan of full “economic integration” of CARICOM is 2015. And, I am yet to see the member countries recognize the “vision” and “goals” of CARICOM through CSME! Most of us there is no “oneness” is the region because almost all these islands think that they are the “cream-of the-crop,” and will not hesitant to chase their Caribbean brothers and sisters off their shores into the blue seas!
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Dig It

RE: Where are Businesses in Caribbean Business?

#12 Morris » 2012-03-31 17:22

It is woefully apparent that the respective governments are ill-prepared to clean the valves and replace the seals to "prevent the pressure cooker from exploding." Mr. Sanders have highlighted some points that have been mentioned on this forum many times in the past; especially, the risky positions that governments have placed the banks and the statutory bodies in. As he so rightfully puts it, the countries cannot survive under the burden of excessive and opaque borrowing tactics. The way forward is to have an effective and efficient triad (gov't, business, and people), but how do we get to that common ground when the lust for power by the gov'ts is so great?
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Morris

Politicians & The Aphrodisiac of Power PT3

#11 John French II » 2012-03-31 15:32

Notes From A Native Son Of The Rock. That Governors and PSO are integral Variables in the equation is without Question. Yet in all the discussions the Governed are forgotten. They are the largest Variable but continue to be left out. It as if Governors plus Private Sector equates to Governed. There needs to be a new Paradigm for all three groups IFF(If and only if) there is to be a change in direction and fortunes. That Sir Ron has pointed to Quote:
The vibrant Jamaican private sector is well placed to propose a basic plan for the regional business community’s involvement in, and contribution to, the region’s economic progress. With the help of the new Jamaica government, such a plan could be a basis for wider regional discussion, refinement and adoption at the regional level.
as noble a thought is not the antidote to the "Aphrodisiac of Power". This approach only supports the "echo chamber" that Quote:
the private sector which they all proclaim is “the engine of growth”.
. If it were true, Barbados, Guyana, Jamaica, Suriname, T&T would be shining examples of economic success. Governors, PSO's & Governed together are the Drivers. Respect.
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John French II

Politicians & The Aphrodisiac of Power PT2

#10 John French II » 2012-03-31 15:06

Notes From A Native Son Of the Rock. Can any Politician, steeped in the "First Past The Post System", control themselves? Absolutely Not! That Quote:
this (lack of control) has led to borrowing from local statutory bodies, such as national insurance and social security schemes, to fund capital projects and even to pay wages and salaries. Governments have also borrowed from local banks, causing them to carry the greatest risk if there is a default....governments reach decisions with little or no input from the private sector
is evident throughout the English Speaking Caribbean.
That Sir Ron, Pompey, Habib and Dig It are correct in their **sment of what has been governments' foreplay is without question. It has been attributed to Kissiger that Quote:
Power is the ultimate aphrodisiac
who also reminded that Quote:
Blessed are the people whose leaders can look destiny in the eye without flinching but also without attempting to play God
Where is the Governed in this equation? Where is the other partner of faceless women, men and children 'The wretched of the earth" for whom Quote:
unemployment and poverty are growing
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John French II

Politicians & The Aphrodisiac of Power PT1

#9 John French II » 2012-03-31 14:32

Notes From A Native Son Of The Rock. With the dissolution of the West Indies Federation, VC Bird attempted to resuscitate the dying hopes and aspirations of many outside of Jamaica and Trinidad with some form of unification of the remaining Eight. Unfortunately, it died on the embers of the "Little Eight." Not to be undone, he persuaded two other B's - Barrow, who had served as the ATLU consiglieri and Burnham of Guyana, which was not part of the WI Federation to give serious thought to CARIFTA - another Vision.
Get Serious! None is prepared to yield the trappings of Pomp & Power.
Quote:
"Disinhibition is the very root of power," said Stanford Professor Deborah Gruenfeld, a social p** who focuses on the study of power. "For most people, what we think of as 'power plays' aren't calculated and Machiavellian -- they happen at the subconscious level. Many of those internal regulators that hold most of us back from bold or bad behavior diminish or disappear. When people feel powerful, they stop trying to 'control themselves.' "
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/11/19/INGT9MCJHJ1.DTL&ao=all#ixzz1qii3gYMb
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John French II

I think you got it

#8 skyewill » 2012-03-31 14:01

One of the reasons we have so little investments is because business want to do business with business and not government officials who are always about the political and not business first. There is too much govrnment is business.
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skyewill

Businesses are in hiding pt. 3

#7 Dig It » 2012-03-31 10:23

Lastly, when the Finance Minister said last year he has a some measures "designed" in "leapfrogging" the national economy and off-set the negative growth, he was basically trying to keep the fire off his feet. The Minister said
Quote:
We expect that this initiative will create employment in the construction sector, and stimulate economic activity in general through the multiplier effect
http://www.caribarena.com/antigua/news/economy/97905-government-announces-economic-stimulus.html
Up to date, our local and skilled workers can't find jobs or even work along the Chinese in nation-building ! With all the loans and grants agreements with the Chinese (without parliament approval), it is yet to see what is in it for them?
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Dig It

Businesses are in hiding pt. 2

#6 Dig It » 2012-03-31 10:17

While the people of A&B struggle to make ends meet, and, have seen economic decline in the last three years, they are constantly told that the “global crisis” hinders the effort to spur growth or its leaders to make the “wrongs, right!” As Magic nicely puts it Quote:
While I agree that the world is facing an economic crisis, Antigua & Barbuda’s financial woes are mainly due to poor management - bad decisions made possible by a severe lack of accountability.
http://www.caribarena.com/antigua/opinions/opinion-pieces/ian-magic-hughes/100076-other-peoples-money.html
The GOAB, in all its effort to "patch" things-up, will always tell the people that they have used the peoples money wisely but just can't show for it!
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Dig It

Businesses are in hiding pt. 1

#5 Dig It » 2012-03-31 09:46

Sir Ron, a needed and good article! It is very imperative that the Caribbean business community be more “proactive” and “vocal” in working with governments and our communities in setting up the environment to produce “sound” economic growth! You are correct when you said Quote:
unemployment and poverty are growing. Unemployment is highest amongst the youth, making for an alarming situation
. Every child in the region deserves an opportunity to contribute to the economic activities of their respective countries! It is down-right “shame” that many of our youths graduating from universities/co lleges will not find job opportunities in their native lands! Yet, governments continued to “blatantly” LIE to them that they have their futures in their hands! They should know by now that today’s youths are much wiser and informed in what’s going on around them, and know when to call a spade-a-spade when they see one!
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Dig It

Pressure cooker waiting to explode-Pt3

#4 Margaret Habib » 2012-03-31 08:12

We are in quicksand with no way out. Government ministers have closed their eyes to the economic hardship of their countries and it’s going to bite them where the sun doesn’t shine. They will come back crawling with their tails between their legs when they realize that they cannot accomplish economic growth without stimulating growth which comes with ideas. And, these ideas cannot happen because they are incapable to thinking like a businessman.
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Margaret Habib

Pressure cooker waiting to explode-Pt2

#3 Margaret Habib » 2012-03-31 08:12

We have seen first hand of this proof when we look at our tourism sector. Instead of the Eastern Caribbean countries banding together to form one voice for the FCCA, they all gather after the main meeting waiting behind curtains to form back-deals with these cruise operators. The FCCA know this and work it to suit them. If only the governments can get together and agree to stick together the FCCA will be ‘forced’ to switch gears and work with the Caribbean as a whole rather than play one against the other.
We have not learned from our past and it now seems our future is in dire straits given the statistics of our economic meltdown. Businesses will continue to be taxed beyond reason-the very driving force of our economy-forcing many to close their doors. Where does this leave us?
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Margaret Habib

Pressure cooker waiting to explode-Pt1

#2 Margaret Habib » 2012-03-31 08:11

Sir Ron Sanders is absolutely right.
Unfortunately, the CARICOM leaders 'fight' among themselves rather than fight for the good of their countries. Our leaders are well versed in talking the talk, but not delivering on their promises and bringing that talk to fruition.
The local and regional governments have a tendency of continuous talk rather than action. They cannot see beyond their noses and it is impossible for them to relate to those who are the driving force of any country - the businessmen.
They are not usually pro active. Rather, they wait for an incident to happen before taking steps to prevent it.
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Margaret Habib

DIPLOMATICALLY MILD

#1 RAWLSTON POMPEY » 2012-03-31 07:39

Sir Ron,
You have summed it up nicely. Seemingly, the respective "...PSO'S" of the region were infrequently invited to the infrequent "...TALKSHOPS." The Trade Ministers usually drop snippets of news to the media about the discussions and then it was all over until the next "...TALKSHOP."

"They treat the private sector with suspicion?" That appeared "...diplomatica lly mild." Others without diplomacy may frankly say that they were often treated with sheer "...Contempt." They may wish to learn from the "...PSOJ." The Jamaicans rule.

There may be no "...guessing who is coming to dinner." Seemed that the Chinese are already at dinner at every table in the OECS. And if there was further "...guessing," before one may say "...Jesus wept," there may be more eating their supper.
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RAWLSTON POMPEY

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Sir Ronald Sanders

Sir Ronald Sanders is a business executive and former Caribbean diplomat who publishes widely on Small States in the global community.

 

 

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