CORPORATE PLUS AND MINUS

The findings, a mixture of the negative and positive embodied in the school’s latest Corporate Confidence Index (CCI), were an indication of how executives and business leaders saw the way the economy was heading. But while several of the influences identified as responsible for the loss in business confidence, for example, weakening of the United States dollar, decreasing exports and the anticipated increase in energy and commodity prices globally, were external in origin, nonetheless rising inflation, lower investment returns and a shortage of skilled labour were clearly the result of both external and internal factors. One of the factors pointed out, that of “exorbitant Government spending,” was distinctly internal and note taken of it by the Administration.

All of the external factors have either sprung from a tightening of the World Trade Organisation’s rules and regulations with respect to free trade or the continuing increases in international prices for crude oil and natural gas as well as of commodities. These have impacted, adversely, on the price of goods on domestic market shelves even as the rising prices for our crude and natural gas have added to Trinidad and Tobago’s foreign exchange earnings and reserves.

Trinidad and Tobago should act with dispatch to reduce the level of imported inflation as well as tackle the question of increased competion from overseas producers in the domestic market and the issue of lower investment returns. To deal with the issue of growing foreign competition TT should lobby fellow members of the Caribbean Community of Nations [Caricom] to have Caricom seek to have its special position on tariffs on foreign imports not only extended but brought back to its original level. The English speaking Caribbean needs additional special tariff time if its non energy and energy based industries are not to be swamped by cheaply produced goods and services from China and India, among others. In turn, this can increase the capacity of Caricom member States, Trinidad and Tobago’s second largest export market, to purchase goods and services from this country

The Arthur Lok Jack Graduate School of Business’ latest Corporate Confidence Index should be viewed not as cause for despair, but rather should be examined to see what measures, in addition to those suggested earlier, are needed to increase business confidence in the national economy.