Prepare for global market competition

President of the Banker’s Association and managing director of Scotiabank,  Richard Young, yesterday urged local businesspeople to prepare themselves for competition in the global market instead of relying on government intervention.

He called on them to begin lobbying for efficient economic infrastructure to  ensure the improvement of TT’s competitiveness. Calling for protection from Government, he said, was “archaic and retrograde.” Young was addressing a gathering of businesspeople at the third annual Trade and Investment Conference Centre at the Hilton Trinidad Hotel and Conference Centre on the topic of fiscal factors that promote TT’s competitiveness. The conference was organised by the American Chamber of Trinidad and Tobago (AMCHAM).

According to Young, the World Competitiveness Yearbook had defined certain “golden rules of competition” which TT needed to achieve to compete in the global market. Among these goals was the ability to attract foreign direct investment, which was important for the exploration and extraction of natural resources. At last check, he revealed, the oil and gas sector had contributed $21.23 billion to the total Gross Domestic Product (GDP) of $67.7 billion — some 30 percent in 2003. A flexible and resilient economic structure was also highly necessary,  but could only be created over a period of time with prudent policies and extensive planning and discipline, Young maintained.

Continuing, he noted that if TT was determined to improve competitiveness on an international level, it had to invest in sound technological infrastructure. He said, “An effort must be made to keep abreast of technological improvements both in our production processes and in our deliveries of service.” Young stressed the importance of promoting private savings and domestic investment, further urging the business community to forge strong relationships between wage levels, productivity and taxation.

However, he expressed his belief that even if this methodology was adopted, the present crime situation was a major obstacle in the way of success. As such, he noted that a comprehensive plan to deal with crime should be utilised. “We have all witnessed how political instability and a spiralling crime situation can hamper economic progress,” he stated. “No one wants to put assets in a place where they are not sure they can get them out.”