Increasingly cities are being seen as centres of dynamic growth and development as opposed to mere places of commerce with an important component comprising the cultural ethos of the city and host community. In Trinidad and Tobago’s renewed focus on changing its development mindset and announced objective of achieving a high level of development, is the role of culture seen as a key stimulus? Cities have always held a significant place in the evolution of humankind and we are still discovering traits of the past which emphasise the city’s role in acculturation. The great archaeological discovery of the city of Cambia is a case in point. This lost city dating to 7500 BC suggests the tantalising possibility of a civilisation that predates the previously oldest known one by 2000 years. It helps us understand the growth of villages and cities in the world. Prior to this discovery the first major urban settlements in the world were believed to have appeared in the river valleys of ancient Mesopotamia around 4000 – 3500 BC They were followed by the Nile Valley civilisation in Egypt, which produced the great Pharaonic culture. The Indus Valley settlements flourished 1000 years later around 2500 BC (Raj Chengappa). However, in the Gulf of Cambia oceanographers discovered the ruins of a vast ancient city submerged under the sea with striking similarities to Indus Valley civilisation sites on the mainland. Mammoth constructions included one the size of an Olympic swimming pool with a series of sunken steps resembling the Great Bath of Mohenjodaro. Another rectangular platform was as large as the acropolis found in Harappa. There was a large granary-like structure made of mud plaster.

A short distance away were rows of rectangular basements resembling the foundations of crumbled homesteads with outlines of a drainage system and mud roads. Artefacts recovered included polished stone tools, ornaments, semi-precious stones, ivory and the fossilised remains of a human vertebra. If we leap to modern times, we observe the evolution of cities as cultural centres taking place in unlikely places. By the close of the 19th century great European cities such as London and Paris were regarded as meccas of great culture. Typically creative communities were confined to the sprawling capital cities of leading powers. They had the wealth and the means of distribution to attract a large cross-section of artists from around the world. Increasingly, this is no longer true. Recently, new kinds of creative laboratories have emerged — in small university towns like Austin, Texas and Antwerp, Belgium, in the impoverished neighbourhoods of Marseilles, France, and Gateshead, England (Adam Piore). Driven out by the high rents of cities like London and Paris, and aided by technology and the growing ease of travel, more artists and thinkers are congregating in smaller, far-flung communities around the world. Technology has assisted a new generation of artists in Tijuana, Mexico, to upload its work onto the internet for the world to see. Technology has permitted transmission of copy from Cape Town and from someone sitting at a sidewalk cafe to an advertising agency in London. “Just as culture has become decentralised, so has creativity. We see avant-garde cultures in smaller places with young, hip bases.”

Piore alleges that the forces which draw artistes to unusual locales are the same. They come to live life to the fullest, to be a “player”, to be where the action is. Creativity emerges from chaos, pushing people to take new risks. Disorder shakes up old ideas. And nowadays, the sites of greatest ferment are often far from the rich, comfortable cultural capitals. Post-war Kabul for example, is alive with painters, film-makers, and musicians, all streaming back to the city after years in exile. Poverty is another spur to creativity. In our own TT the steel pan, the only new musical instrument in the twentieth century, developed in the poor neighbourhood of Laventille. A creative spark is needed to fuel the rise of a genuine community, such as a great name, the development of a cafe culture or the founding of a new art school. Then the cities begin to attract secondary and tertiary levels of creative people, artists in other fields, small businesses, technology start-ups, academics and design firms. Creative people want to be around other creative people. Thus a city with artists, nightlife, diversity, will attract entrepreneurs, academics, technology enthusiasts who are the people able to drive economic growth in this new age. We in TT claim to be culturally rich with artists, dancers, comedians, painters and musicians. Can this cultural evolution fuel our development as an international cultural and commercial centre as is happening in other places far less endowed with artistic talent? Further, can we develop the capacity for creating the environment in which such a development can blossom?

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

Although closure threatens cash-strapped BWIA, the airline does not see a merger with Caribbean Star as an option. BWIA’s director of corporate communications, Clint Williams, said the airline was focusing on enhancing its alliance with LIAT. “LIAT also has its financial conditions to consider, and in the meantime, we will continue feeding international visitors to them, while they feed us [BWIA] regional traffic,” Williams said. He added that at this time, the BWIA/LIAT arrangement could serve the region well without having to bring another airline into things. “There is currently no significant interest to include Caribbean Star in any alliance. Maybe in the future, but not now,” Williams said. This comes as BWIA awaits official word from the Trinidadian government after submitting a proposal to request financial backing to pay off its US$3 million debt. Until government makes its decision, Tuesday’s planned repossession of the airline’s planes was put on hold by its creditors, International Lease Finance Corporation. Williams said he hoped for a positive response from the government. However, president and chief executive officer of Caribbean Star, Paul Moreira said Tuesday that a merger would eliminate competition in the regional market and affect the consumer and tourism product.

Speaking from his Antiguan office, Moreira said Caribbean Star had extended the “olive branch” to both carriers on four occasions, but was turned down each time. “We had extended an invitation to both BWIA and LIAT to have an inter-line agreement travel with Caribbean Star,” Moreira said. He explained that under such an arrangement, travellers would go to their destination on one carrier and return on another using the same ticket. However, after the offer was declined by LIAT nine months ago, and a year ago by BWIA, there are no new plans to revive it. “If they (BWIA and LIAT) are truly interested in taking up the offer they know who to contact,” he said. Despite the challenges its counterparts are facing, Moreira said Caribbean Star was doing “extremely well,” recording as much as 40 per cent increases in the number of passengers carried. “We have exceeded all targets, and advance bookings for April are already at 40 per cent,” he said. As a result, the airline is looking to increase its seating capacity from 87 passengers on its nine aircraft.

THE INDUSTRIAL Court has upheld the decision of Nestle Trinidad and Tobago to fire a worker who repeatedly violated the company’s cash sales policy and procedures and whose explanation when questioned, lacked credbility. When she was dismissed, Dianne Sookdeo was in receipt of a monthly salary of $4,767. The Oilfields Workers’ Trade Union took up the worker’s case, claiming that she was dismissed in circumstances which were harsh and oppressive and contrary to principles of good industrial relations practice. The union sought an order from the Court for the worker’s reinstatement and payment of damages. But after studying all the circumstances of the case, the Court held that  there were  sufficient grounds for Nestle’s dismissal. “We are to be guided not only by law, but also to act in accordance with equity, good conscience and the substantial merits of the case, having regard to the principles and practices of good industrial relations,” said the Court. While his co-members unanimously agreed that the dispute should be dismissed, another member, B Maharaj dissented, in that he ordered that Sookdeo be reinstated in her former position or in a similar position of equal status with remuneration within 21 days. He also ordered that the company pay to the worker as damages, 75 percent of all salary and allowances which she would have earned. (Full details of Maharaj’s judgement will be given in tomorrow’s Newsday).

The company’s case was that a routine sales audit check commenced on June 5, 2000. During this exercise, several anomalies were observed in the daily balancing and deposits of  cash and cheques, including the application of credit notes by the worker. “The worker repeatedly breached its cash sales policy which was well known to her. That policy was — No cash to be given to credit customers and no credit to be given to cash customers, said Nestle. Some of the anomalies it identified during the period March to May 2000 included failure to collect monies from cash customers on same day of purchases and then invoicing customers on same day (without receipt of cash). In other words, the worker on her own volition, extended credit facilities to cash customers. Based on other discrepancies, the company concluded that the worker was cheating customers of credit to which they were entitled and engaged in “lapping” — an accounting term which refers to manipulation of company’s cash.

It was explained that in this scheme, one delays the timing between the receiving and depositing of the company’s cash for one’s personal gain. The Court found that while it was true the company did not suffer any financial loss, the evidence disclosed that it had discovered breaches of a palpable and sufficiently serious nature to conclude on June 15 that the worker was engaged in serious misconduct. The Court stressed that  misconduct was not confined only to stealing money directly from a company. “The worker’s inappropriate conduct was enough to undermine the confidence imposed on her by the company,” it added. Nestle noted that Sookdeo was afforded a fair opportunity to respond to the breaches.

On its present course, old age pension, NIS and the civil service pension, will rise from 3.5 percent of gross domestic product (GDP) in 2002 to 4.5 percent of GDP in 2020. Minister in the Ministry of Finance, Conrad Enill said this picture worsens considerably, as by the year 2050, given current demographic trends, expenditure on the public sector pensions will be in the order of ten percent of GDP, when it is expected that there will be fewer contributors than pensioners. He said Government’s focus on pension reform is not new, nor is it unique to TT. He noted that policy makers around the world are struggling to adapt their pension systems to the reality of aging populations, globalisation and tightening budgets. “We recognise that we must act now if we are to pre-empt the disruptive fiscal implications that will surely come our way if we do not do so.” “Today that crisis looms ever clearer as improvements in medicine and technology allow people to live longer, healthier lives. This when coupled with decreasing fertility rates and the attendant declining labour forces worldwide; the increasing trend towards early retirement and early exit from pension systems have rendered traditional pay-as-you-go systems almost obsolete.” He said Government’s challenge is to place the public pension system on a sound financial footing, while at the same time achieving the core social objective of ensuring that the minimum benefits to be received by a pensioner will be at least $1,000 per month.

Enill said Government began work on pension reform, in January 2002, when  they approached the International Monetary Fund (IMF) for technical assistance in evaluating the public sector pension system. A report was submitted in April 2002 and Government circulated the draft report in total to key stakeholders, including the NIB and the representative trade unions. The general consensus on the report was that it was short on detail and did not provide adequate technical support for the assertions and recommendations made. He said the report was a good starting point and has sufficiently emphasised the urgent need to address the issues in a broad-based consensual manner. Enill noted that at the end of 2000, the latest period for which published figures are available from the Supervisor of Insurance, there were 208 registered occupational pension plans of which, 88 were self-administered while the other 120 were insured. The total fund under management from these private occupational pension plans was $11.9 billion with the self-administered plans accounting for over 80 percent of the funds under management. Funds administered under the national insurance system represents an additional $9 billion. Pension funds, therefore, with assets under management of $20 billion are a major component of TT’s financial system.

GOVERNMENT’s restructuring programme for Caroni (1975) Limited is likely to look something like this :  heavy industry will sit next to the Point Lisas Industrial Estate while light industrial development is being targetted for several sites including Dow Village, Reform, Harmony Hall, Preysal, Endeavour and Factory Road, in Chaguanas. According to Uthara Rao, chairman and Chief Executive Officer of the Estate Management and Business Development Company Limited, out of the 77,000 acres of land owned by Caroni, residential and commercial development is being targetted for several sites including Caroni Savannah Road, Egypt Village in Chaguanas, Beaucarro in Mc Bean, Waterloo, Couva, Balmain, and Endeavour. Rao made the comments while addressing a Business Opportunities Seminar organised by the Couva/Point Lisas Chamber of Commerce, at the Cara Suites and Conference Centre, Claxton Bay, last week. He drew attention to the Chamber of an expression of interest from a US-based Company called Moore Ammonia that was keen in establishing a company in the country seeking to acquire land to start construction in order to streamline production by the end of 2004. Rao added that similar opportunities are forthcoming from several other investors and Moore Ammonia is one among them. He noted that this shall create additional jobs and encourage our domestic private sector to take advantage of these downstream opportunities and also to utilise the estate in a more productive manner. 

He told the breakfast gathering that some 25,000 acres of land out of the 72,000 acres would be leased to the restructured sugar manufacturing company to meet the requirements of the downsized operations. He projected that the sugar industry will be looking at an annual target of 75,000 tonnes of sugar. Rao stressed that the Government of Trinidad and Tobago had agreed in principle to restructure Caroni so that the sugar industry would be scaled down with Caroni being “confined to its core function as a sugar manufacturer only and with all sugar cane to be cultivated by farmers.” “This is necessarily only a first step in the right direction,” Rao stressed. The Chairman and CEO of the Estate Management Company said that the EMBDC would now have available approximately 52,000 acres of land for utilisation by way of investment in various developmental projects. As a first phase approximately 11,000 acres have been earmarked for the development of small businesses in order to fulfil the mandate and discharge the responsibility by the EMBDC, he said. Rao noted that as part of the initial component of the restructuring programme, this company has been quick off the mark developing strategic alliances with the Point Lisas Industrial Port Development Corporation Limited (Plipdeco) and the Tourism and Industrial Development Company of Trinidad and Tobago Limited (TIDCO) in order to fast track the initiatives of the Estate.

Rao told the audience that the EMBDC has been moving aggressively to implement its mandate and has already identified strategic locations for land development. He explained that this would no doubt facilitate new business activity not only in the Couva and Point Lisas areas but in the country as a whole. In the first phase of development some 175 acres have been earmarked for commercial development, 250 acres for industrial and light manufacturing , 400 acres for residential estates and 600 acres for agricultural estates. All of these sites will be established in South and Central on Caroni Lands, he said. He stressed that the EMBDC would undertake the necessary infrastructural development and in the process would meet all the Environmental and Town and Country Planning requirements for such projects. Rao explained that the distribution of lands for agricultural, industrial, residential and commercial purposes would follow basically the procedure as laid down by the EMBDC which includes – circulation of an invitation to request for land acquisition; provision of documents to potential investors; submission of proposals by potential investors. It will also involve technical and financial evaluation of proposals by the company, notification to bidders of their selection; and allotment of sites and the execution of an agreement. He explained that the EMBDC has been taking steps to have the necessary legislation drafted for the vesting of the Caroni lands in the State.

The Ministry of Science, Technology and Tertiary Education has created committees geared towards eliminating areas of duplication and possibly compiling various government initiatives, such as Dollar For Dollar and the SRL plan, into one overall scheme. This newer committee, called The Committee on Tertiary Education Policy, was started in May 2003 and is chaired by Teresa Davidson, Director of Research, Planning and Technical Services in that Ministry. Other members include representatives from the Ministry of Education, the Ministry of Finance, the Tobago House of Assembly and private tertiary education institutions. The current committee, which was initiated by Cabinet decision, was given a three month deadline for making recommendations therefore no concrete resolutions will be available in  mid-July. There may also be a public forum for discussion but this is yet undecided. According to Michelle Boyd, Advisor to the Minister, the committee will be looking at “financing, management and co-ordination of the system as well as widening access.” “The government is very concerned about equity in the system” explains Boyd. “The Dollar For Dollar plan assumes the student has a dollar. What about those who don’t?” The committee is expected to be highly instrumental in the Ministry’s attempts to attain the goal set out by Minister/Senator Danny Montano to have a tertiary education graduate in every household.

It was not so long ago that the pager was cutting edge technology. No longer exclusively used by doctors, the pager was everyman’s communication device of choice. This useful little gadget has apparently fallen from popular demand, however. Indeed, the experts confirm what the man on the street has long suspected. The era of the cell phone has usurped the market power of the pager. Marketing Director of Lisa Communications Ltd, Jerry Chin Lee, confirms that the paging market fell off quite a bit since TSTT made “calling party pays” on cellular. Before, both the caller and the receiving party would be charged for a mobile-phone call. Now, with only the individual who initiates contact paying for the call, this even more attractive package really inflicts a bullpistle lash on the already faltering pager marketability. Chin Lee noted though  that pagers are not the mainstay of Lisa Communications Ltd. About two years ago, he says, Lisa began to focus on internet business and the use of high-speed band width or broad band technology. “We aren’t ignoring our paging customers” he says. “Paging is still strong with the large corporations.”

Chin Lee went on to strongly advocate the use of pagers, noting that  they are both reliable and convenient. He pointed out that at times one might need to turn a cellular phone off, one  might be on a call and have the line engaged or one might be in a low service area, all factors which hinder efficient communication. Pagers, he said, facilitated proper time management. “With cellulars you lose control of your own time. With a pager you could determine the right time to return the call and avoid interruption. You could also prepare yourself.” Chin Lee would not say how much money his company was making from pagers. Some companies still regard the pager as a valuable business tool because of the high cost of cellular. Wireless is responsible for 80% of Open Telecom’s business with pagers bottoming out at a humble 10%. At  Page Communications, one official said, the market is not very good. As for the ubiquitous cell phone, TSTT now has as many as 340,128 active pre-paid TDMA customers, 60,416 active post-paid TDMA customers, and 16,107 active GSM customers. This is a tremendous growth since 1999 when the digital service was introduced and customers numbered a cool 27,864. Mobile service as a whole was first introduced to TT by TSTT in December 1991. Since then the technology has progressed considerably.

Stocks fell this past Monday ahead of the two day United States Federal Open Market Committee meetings held on Tuesday and yesterday. The professional money managers and hard core investors sold off, getting into position for yesterdays announcement from the US FED on short term interest rates as well as their comments as to how the US economy is progressing. The market had already factored in a quarter or half-point cut, but more important are the comments on the economy. We will give you a summary of Alan Greenspan’s comments in next week’s article. Looking back at last week, the global markets made another steady week by week gain on further signs of improvement in the US economy. Since mid March, the major markets have showed steady gains with all equity indexes from Blue Chip to small caps registering similar controlled gains. The German DAX and French CAC, arguably the economies in the worst shape in the European Union, turned in the best equity index performances last week, showing 2.2% and 2.5% rise respectively. The UK and the US logged smaller gains, more in the 1% growth range. We note that the broad-based S&P 500 Index closed above 1,000 last week for the first time in almost a year. For the contrarians, who had the courage in March to invest in equities as we had recommended, are now sitting on substantive gains and some are wondering just how sound the current prices are given the dramatic rise stock prices. To look at the UK’s FTSE 100 as an example, the index gained 28% over the past 14 weeks. The smallest companies on the main market (those in the Fledgling index) have risen by 29.5% since March 12.

The UK Small Cap index is up 31.2% while the best returns of all have been registered by the companies just outside the top 100 tier, the FTSE 250, which is up 33.7% from its low. It all comes home if you look at the historic Price Earnings Ratio for the FTSE 250, which on March 12 was 18.1 and today with the higher stock prices is actually down to 17.7. In the US, economic news this past week, consumer prices, excluding food and energy, rose by 0.3% in May, alleviating investor concerns that deflation might slow economic growth. The rise was three times higher than the median forecast and was boosted by higher consumer sentiment. The Conference Board’s index of leading indicators increased by 1% in May, as production expanded and initial jobless claims fell. The survey raised hopes that the US economy would improve in the next six months. In the UK, inflation slowed in May to a rate of 2.9%, down from 3.0% in April. A lower oil price helped ease the rate, which remained above the Bank of England’s target of 2.5%. UK retail sales fell for the first time in four months during May mostly due to high declines in sales of clothing and foot wear. The news raised speculation that the Monetary Policy Committee might cut interest rates, which remain the highest in Europe by over 2%. The last interest rate decision by the UK Monetary Policy Committee of the Bank of England showed the members voted 6-3 in favour of no change but the outcome was defined as “finely balanced”.

In Europe, European Central Bank economists have aggressively reduced growth forecasts for 2003 to 0.7%, and to 1.6% for next year. The pessimistic prediction together with sympathetic comments from European Central Bank executives have raised hopes that further monetary easing may be provided, particularly if inflation continues to fall away from the banks price stability target of 2.0%. Hong Kong has been removed from the SARS infected list by the World Health Organisation in response to the fast falling number of infected in the region. The Hong Kong authorities have announced HK$1 billion package to promote the territory globally and to build confidence among prospective investors. There appears to be a significant resurgence in positive sentiment towards shares. Positive comments on the US economy from Greenspan this week would set the stage for improved consumer sentiment and business spending, the two key factors which we are watching to indicate improved corporate profits and earnings.
E-mail: darcy@investments-intl.com