Transforming TT to being competitive

In the fiscal 2017 presentation, projects aimed at increasing the competitive capacity of this country were highlighted. These outlined a schedule of tax reliefs for agro-processing and related operations; for an entrepreneurial talent grant and for encouraging greater Public- Private Partnerships.

Stimulus infrastructural plans are also in the pipeline, with respect to the Sandals Resort, for example, and the upgrade of the airlift and port facilities in Tobago to support that mega project. Together, these Public-Private Partnership initiatives are projected to yield approximately $500 million year in revenue and about 2,000 jobs over the short to medium term.

These initiatives are welcome; but do they strike deep enough to make a serious impact on the country’s consistently low ranking over successive years on the GCI?

Currently, poor work ethic in the labour force is identified as the most problematic factor for doing business in Trinidad and Tobago. It ranks as a bigger challenge over corruption, inefficient government bureaucracy, and crime. This clearly points to the fact that if TT is to become more competitive in the international arena, the very way we do business must change. Key areas such as labour productivity, innovation and governance will need to be seriously addressed.

At present, there is no comprehensive industrial relations system in TT, although there are laws that address certain aspects of the employer-employee relationship. Legislation pertaining to the Industrial Relations Act, for example, still requires amendments to meet the needs of a modern-day society.

Rather than growth prospects being facilitated, inefficient government bureaucracy looms largely as a hindrance to legitimate business activity. This is very unfortunate at a time when there are hopes that SMEs and the manufacturing sector could help close some of the revenue gaps.

While many would agree that raw talent abounds in TT, we need to place greater emphasis on research and development. Education will therefore play a critical role in this process in terms of recognising and encouraging creative approaches; government will need to provide an enabling environment and the private sector has been challenged to become less risk-averse.

In the final analysis, however, matters of governance have the power to make or break a country’s competitive thrust. Trinidad and Tobago will not readily attract investment unless there are accountable, transparent, equitable and inclusive governance structures firmly entrenched in our society.

Switzerland, the world’s most competitive country demonstrates, among other things, that stable and transparent institutions, a flexible labour market, excellent infrastructure and connectivity and an outstanding innovative capacity are vital to remaining at the top of the rankings. Theirs is a model worth emulating.

In context of the developmental thrust for Tobago’s tourism economy, the TT was pleased to secure Mr. Gordon ‘Butch’ Stewart as the feature speaker at this year’s Champions of Business which comes off on November 12, 2016 at the Hyatt Regency.

To reserve your seats for this signature event, call the T&T Chamber today on 637-6966.