Improving productivity across the region key to growth and development

In recent times, productivity has risen to the top of the agenda of groups such as G7 and G20. The Italian President is fiercely pushing for better social equality and growth, in spite of Brussels currently ranking Italy as having the lowest productivity in the EU. Whilst the UK has a somewhat enhanced its position, it still lags significantly behind the rest of other peers in the Group of Seven.

Productivity is a concern in the Caribbean also. In Jamaica alone, the local private sector has been labelled as inefficient as the Government by Therese Turner-Jones, the Inter- American Development Bank (IDB) country representative in Jamaica.

The Caribbean is a dynamic region with an array of countries that all vary in their standards of living. As the global economy is off to a good start so far for 2017, countries across the Caribbean will be able to benefit from stronger economic growth. According to the latest quarterly Global Economic Conditions Survey (GECS) by ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants), global business confidence rebounded in the first quarter of 2017 and is now at its highest level since the second quarter of 2015. But for productivity to improve across a nation, there are key areas within the economy that the government can intervene on to create a positive effect: 1. Necessity of international and domestic investment Whether foreign or domestic, inward investment is instrumental in both jumpstarting and building on activity within business communities. The Caribbean receives some of the highest levels of Foreign Direct Investment (FDI) in the world. By pairing investor priorities with regional business strengths, local administrations can establish investors within communities and improve attractiveness to other potential investors by promoting ‘success stories’. Through the stimulus of inward investment, businesses build their capability to win contracts, scale-up operations and discover opportunities in collaborative business clusters that form around the inflow of funding.

2. Skills progression Education is a key foundation for gaining skills. Over the last 50 years, on average public investment on education has been increasing across the Caribbean. According to the United Nations Educational, Scientific and Cultural Organisation (UNESCO) Education for All 2015 Regional Review, public spending on education as a percentage of GDP, rose from 4.6% in 2000 to 5.2% in 2013. But training must also be offered in the workplace in order to embed the necessary skills for a more proficient workforce.

Students, increasingly, need to prepare for versatile careers, adapting to new trends – for example, digital fluency will become a central element of day-to-day working practices.

Digitisation and greater telecommunications capabilities will also widen the talent pool of remote workers from which recruiters can source talent. This also opens up international borders, whereby workers can take advantage of global opportunities. Accountancy functions are increasingly being performed remotely via digital platforms, removing geographical barriers for business, which previously existed.

3. Changing the way we measure productivity Tracking productivity should look beyond traditional measurements and consider others such as new ways of working and the quality of the outcomes and output, which would provide a more accurate picture.

Creating new jobs further increases productivity in the region. To improve the quality of the data, newly created jobs must also be viewed in terms of output quality and longevity of roles, and net job creation in the wider economy, rather than solely considering onedimensional job creation figures.

For sustained productivity growth across businesses, supply chains and regions, it is important to identify a way to track measures of meaningful impact on the Caribbean’s productivity.

4. Looking beyond the present The Internet alone has revolutionised the way we all work, socialise, create and share information. In the coming years, the Caribbean will need to increase its digital abilities to further promote itself on the world stage to attract international investment, global trade partners and world-class skilled workers.

Thinking ahead and adapting to modern trends, will allow the Caribbean to meet and exceed global productivity performance in boosting the country’s growth.

Tackling these areas is a positive step towards meeting the challenges facing the Caribbean’s economy as a whole. T he business and finance sector account for a large part of GDP and governments must prioritise industries such as this as a key area to improve productivity. The accounting profession is an important part of this sector and the government must wake up to the economic benefits will accrue through it.