Foreign Direct Investment

At the beginning of the last budget presentation, a few weeks after national elections and the resulting change in the executive, Politics continued with the Minister of Finance painting a negative picture and blaming the previous executive with financial mismanagement, more so in their last three months in office; spending tax payers’ funds on electioneering, leaving massive unpaid bills and running into a negative cash flow position. It is worth mentioning that the Speaker of the House needed to bring order to the chamber several times during the budget presentation, indicating that the previous executive now in opposition were not pleased with many statement attributed to their 2010 – 2015 term in office. This trend is again expected after any national election which results in regime change but is certainly preferred and more acceptable than any Violent Insurrection.

The reduction in, hydrocarbons and other raw materials, international prices has a sound upside; to create numerous opportunities, to improve efficiencies and balance inputs, to define and measure the related benefits to ‘All the People verses the People in Need’. The main prospect that such circumstance offers, is in Governance, rebooting the system from bottom up to move decisions and responsibilities closer to recognized delivery points. This clearly speaks to local government geographical services but must also address national issues, which will influence eco-socioeconomic and sustainable development.

Traditionally, decision-makers have achieved objectives based on the financial component (throwing money at needs, wants or problems) with limited or accidental success. Under current circumstances, the alternative must be considered, innovating, testing and implementing strategies that have been proven successful under similar conditions, no matter the cost, only based on results. Decisions and Responsibilities; diagnosed, defended, prescribed, taken and owned, based on historical data, across political terms, and trending statistics, adjusting to present circumstances, by perceived independent boards, in close proximity to the situation, charged to achieve clear, attainable and measurable results.

On speaking to international investors, seeking long-term competitive returns, out of geographic locations with very low rates of conflict and of crime, the feedback is specifically on Governance, Fiscal and Monetary Policies. Hence, public investments, in Resource Preservation, Human Development and Infrastructure Management, are expected and critical toward investor confidence and generating the anticipated competitive returns. Foreign Direct Investment is being invited by and safeguarded through private equity, which traditionally views weaknesses as opportunities, and its portfolio managers are guiding participation across numerous Economic Drivers.

The portfolio managers are being reminded of the nation’s Competitive Advantages; a small and maneuverable economy, a central geographic location, low incidents of natural disasters, a peaceful political environment, relatively low crime rates, an energy producer and strong foreign currency financial reserves. Also, these investors are being kept informed of numerous adjustments that are being proposed and would ultimately have an effect on their investment. Of greater importance, to such investors, are The Opportunities being proposed, which can generate the desired long-term Returns On Investment (ROI), realize the nation’s development and significantly improve living standards.

The Executive Cabinet is being asked to take the lead, by insulating its Auditor General, Central Bank, Budgetary Division and Statistical Office from the politics, by strengthening the nation’s financial laws and its Security & Exchange Commission to meet international standards, enhance its local Stock Exchange with new low risks listings that will offer steady capital gains to offset inflationary pressures and pay a modest but dependable quarterly dividend, and to utilize IPO gains to Diversify the Economy.

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.