The
vision is to reduce revenue dependency
on any single industry or sector and hence, diversifying an economy is to
generate an equivalent amount to balance revenue across numerous sources, as to
spread and lessen the risks associated with one set of matrix.
Common mistakes
are trying to replace strong currency earnings with income of weaker foreign
currencies with less purchasing power. Exchanging one volatile industry for
another; abandoning hydrocarbon energy, heavily dependent on international
pricing, for a tourism gaming industry, which will only grow to depend on
international funding. Moving from extraction into energy processing, transport
into vehicle building and repairs, trade to light manufacturing, which have
similar input/output factors, the value added offers minimal gains while the
risk exposure remains the same.
Opportunities
must be judged, analyzed and considered for initial investment based on
available resources, options available to targeted markets and essentially,
clear and prudent competitive advantages, which make it feasible and offer competitive returns on investment over
the long-term. Available resources must consider the current financial state
and the ability to borrow and attract investors and the human and material
resources necessary and obtainable. Targeted markets are identified by their
needs, wants, and of course, their ability to pay. Competitive advantages,
which are presently in place, must be protected to glue the transactions.
Detail
strategic plans; surrounding the targeted markets, properly resourced using
every competitive advantage, are selected for scaled implementation, incubation and monitoring, ideas into
industries, and upon a predetermined level of success, recapitalize via an IPO
to repay and recycle the initial investment.
The
world markets are clearly described in terms of security, energy, construction,
food, transportation, communication, healthcare, education and entertainment.
Hence, small countries and economies have added advantages of forewarning from
larger economies, the strength of its geographic location, Multicultural,
Peaceful, with Internet infrastructure, current cheap (fuel and lubricant)
energy and being quite Maneuverable can compete
in niche markets, attracting higher prestigious prices for quality, as oppose
to standard prices for quantity. Such small economies can therefore attract
necessary resources; equity and debt financing and skilled creative people, to
win and keep market share in multiple sectors utilizing synergies and economies
of scale.
What
is needed from the executive branch of Government is the political will to
diversify on a small scale. The initial investment, included in the Development
Programme, is to plan and incubate
numerous industries, aiming for a few successes per year that can benefit
from further expansion. Engaging international negotiators and trade lawyers to
strengthen deals made under trade and industry functions. Establish a foreign
revenue collection agency. Transforming foreign missions into sales
representatives; promoting its people, products and places. Using public
resources to file and to protect international copyrights and defend the
country’s brand. Locally, Governmental endorsement is needed to; establish “Buy
All” programs, expedite work permits, buildings approvals and other regulatory
licenses.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
