TT sliding down the charts a sign of the times

It has frequently been said that cricket is a metaphor for life in the Caribbean. In his Thank God It’s Friday Column titled “Mental Slavery” on March 26 last, BC Pires analysed the reasons for the performance of the West Indian cricket team with observations that resonate for the wider management community. He says that “the team needs really hard work and acute mental concentration; and Caribbean people dread both of those like a month in jail;” adding “in the West Indies we rely on prayer books not technical manuals;” and “there is little focus on technique, a lot of fervent hope, and no attention at all to will.”

We have continued to have world class talent on our teams, but this has not slowed our inexorable slide. Inability to compete effectively is a deadly malaise in this rapidly evolving world that we live in, where no quarter is given. If we cannot take care of ourselves, globalisation and free trade will cause the ruthless elimination of our institutions and enterprises that cannot make the grade.

Slipping, Sliding

In its recently released Business Competitiveness Index for 2003, the World Economic Forum reported that Trinidad and Tobago has experienced declining competitiveness since its entry into the rankings in 2001. Starting at position 31 in 2001, we have slid to position 44 in 2002 and position 52 in 2003. Of the 21 countries that have eclipsed us since 2001, two did not participate in the survey previously, leaving 19 who overtook us, including the 8 who passed us in 2003.

The Forum’s Business Competitiveness ranking has two components — the Company Operations and Strategy Ranking and the Quality of the National Business Environment Ranking. Trinidad and Tobago has slid in both rankings, with the slide in the first being more precipitous, from position 27 in 2001 to position 53 in 2003. The Forum also publishes the Growth Competitiveness Index that ranks countries’ potential to attain sustained economic growth over the medium and long term. The indices have been revised in 2003 with 2002 recomputed, and Trinidad and Tobago has slid from position 42 in 2002 to position 47 in 2003.

The components of this index include the Macroeconomic Environment Ranking, where we slid three positions from 41 to 44; the Public Institutions Ranking, where we slid nine positions from 43 to 52; and the Technology Ranking where we slid two positions from 43 to 45. It is possible that there is a common cause for our slide. The areas of greatest deterioration in the two indices are Company Operations and Strategy and Public Institutions. The areas that are assessed for the Company Operations and Strategy ranking include production process sophistication, value chain presence, and extent of branding and breadth of international markets. The areas that are examined for the Public Institutions Ranking include the independence of the Judiciary, transparency in the award of Government contracts and corruption. The common cause for our performance may be undeveloped or weak management systems in both our private and public sectors.

Paying lip service

Very few of our companies pay more than lip service to the necessity for establishing themselves firmly on the international markets. In the manufacturing sector, when the going gets tough some close up shop and retreat into distribution. In the public sector we have had continual delays in the liberalisation of the telecommunications market, the revamping of our educational systems, and the revamping of our health delivery systems. This is in spite of many boldly announced intentions and carefully crafted plans. It is a widely shared view that though we can be intelligent and creative, we frequently run out of steam in implementation. In addition to the demands of competitiveness, it has been widely noted that rich countries do not play the free trade game fairly. Farm subsidies for cotton and sugar in the US enable their farmers to compete at prices that are uneconomic for farmers in poor tropical countries to match.

Flying first class

In 2003, the CEO of Nestle calculated that in the US farm subsidies for dairy cows amounted to US$9,240 per cow, with the similar figure for Europe being US$6,190. He joked “that would allow each milk cow to fly first class around the world, or three cows to take along one bull for free.” While the rich countries may provide aid to help the poorer countries, they take care of their own first. The Executive Director of Oxfam, a UK charity, estimated that while international aid flows amounted to US$30 billion, rich countries provide their own economies with subsidies totaling US$300 billion.

None of us can afford to be complacent in the light of this scenario. As with our cricket team we all have to become disciplined and focused in what we do, whatever the level of contribution that we make in the society. God is not a Trinidadian, and as we can see from our continuing slide, he only helps those who help themselves.

The views expressed in this column are not necessarily those of Guardian Life. You are invited to send your comments to guardianlife@ghl.co.tt