The traded world price of commodities, be it Sugar or Crude Oil, is the
starting point for industrial refining viability. If an organization (CARONI or
PETROTRIN) cannot produce, a competitive product at a competitive price, it
will die a natural or unnatural death. Wining down operations in any sector or
industry is based on a level of understanding of the global issues: The
industrial revolution, which saw manufacturing operations moving parts to its product,
change to move products to its parts. The Information revolution which moved
people to research now moves research to people. And further, the Knowledge-Based
revolution which brings the best opportunities to the market, adjusting ideas,
inventions, innovations and investments to a global marketplace. Hence,
Decision-Makers, armed with facts, the political will and sensitive to the pain
of change, must look forward benefiting the majority of the population.
A natural death will occur in operations; where
market requirements have surpassed what is presently produced, where raw
material and other inputs are not economical (in volume and at price)
available, where technology has advanced passed what is currently in use, where
costing, inclusive of salaries and wages, has exceeded sale prices. In such a
case, good money is thrown after bad only to maintain jobs and pensions
(votes), with no possibility of restructuring. As opposed to an unnatural death;
where markets are loss, raw materials are unavailable, technology is old, and
cost is higher than price. Closure will allow for new investments in better
structured, not restructured, profitable, sustainable operations.
It needs to be clearly explained and understood, not
as political policy but as economic decisions. Such situations do not come out
of thin air, forecasting economists are hired by Industrial associations or
Sector leaders to project growth and predict disruptions within particular
global environments, plotting changes which will sustain growth and worn off demise.
While, Investment Bankers analyze bad projects and act as change agents to
measure successes and quickly abandon failures. In today’s world, where everybody
is a mass media reporter, badly planned and executed projects are open to
political criticism and further, easily researched to an accurate calculation
of financial loss.
Henceforth, who produces the Goods and Services the
best, globally will win the business. No longer will any nation be all things
to its population, its people must be seen as its primary natural resource; its
talents and skills must be sold globally. Trained people, with numerous years
of experience, in the Sugar or Oil refining industries, must seek and share
their skills internationally. With the nation concentrating on its basic needs;
Healthcare, Education, Infrastructure and its own competitive advantages (Economic
Drivers) and operating locally Cargo and People Transportation, Trade and
Distribution, Retailing and Servicing, and exporting Goods to earn hard
currency. In addition, inviting visitors to Entertainment and Relaxing
activities and promoting food, culture and arts, to bring in more foreign
exchange. While, purchasing the best cost-efficient essential products, with
the said hard currency, but not having to operate or prop up losing ventures, whose
time has gone.
Lessons from the Financial and Banking Sectors
should ripple throughout society, as top officers now operate like commission
agents, branches are consolidated, and slow job reductions are hardly
noticeable as retirees are replaced by systems. The so-called Public Service
must be next as numerous overlap (red tape) slows processes, technology is well
advance to deliver accurate results, and pay scales must be mathematically tied
to economic performance. The law-makers, policy-makers and regulators
overseeing sectors and industries must lead the way by merging more efficient
and effective ministries. Market Demand is the only true source of
productivity, which in turn creates jobs, for trained and retained people.
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.
