Economic Drivers 2018

(An extract from Foreign Direct Investment 2018)

Operating on 5.90% of the nation’s total expenditure, as reported by the office of the Auditor General 2016 and 4.39% in the 2017 revised estimates, while estimating 3.84% for 2018 down by 13.44%, as published by the Ministry of Finance. Economic Drivers are administered by the Ministries of Energy and Energy Industries, Agriculture, Lands and Fisheries, Planning and Development, Foreign and CARICOM Affairs, Labour and Small Enterprise Development, Trade and Industries, and Tourism. The nation's revenue, to offset its total annual expenditure, comes from the collections of taxes, duties and royalties; taxes on (personal income) salaries and wages, on (consumption) sales and value added, on (operations) business levy and green fund, on (corporation) profits, etc. Such revenue generating activities are encouraged and facilitated via Economic Drivers, which designs, implements and reviews the conditions for investment, employment and, the resulting, taxation.

Infrastructure Management 2018

(An extract from Foreign Direct Investment 2018)

Utilizing 20.38% of the nation’s total expenditure, as reported by the office of the Auditor General 2016 and 20.39% in the 2017 revised estimates, while estimating 20.60% for 2018 down by 0.17%, as published by the Ministry of Finance, to maintain and expand public spaces. Such Infrastructure expenditure has widely been realized and accepted to directly impact productivity; outputs, driven by comfortable and safe, work and play environments, for example; organizations to produce and deliver water and electricity, industrial parks, courts, police stations, hospital, schools, housing, administration offices, communications, community centers, open parks, transport hubs, roads and bridges, etc. This Infrastructure Management category consist of the Ministries of Public Utilities, Works and Transport, Rural Development and Local Government, Housing and Urban Development and the Tobago House of Assembly.

Foreign Direct Investment 2017

As global Politics grapples with issues surrounding Open Markets versus Close immigration, investments are kept and driven into the largest economies, which have the strength of market size and numerous trade agreements, increasing access and influence, to record superior returns. Small economies, with much the same issues, have the advantage of granting greater access to decision-making, so investors, far removed from board rooms in large economies, are invited in, to participate, in small economy decisions and development, guiding their own returns on investment (ROI).

SEED Structuring

SEED, the Society for Entrepreneur and Economic Development, which has targeted grant funds of US$4,000,000 from international donor agencies to incubate 100 startups per annum, with success stories refunding the process, making resources available for other opportunities, was officially launched on Wednesday, June 1, 2011, to assist in structuring the necessary processes and plans to move ideas into industries.

Economic Drivers 2017

(An extract from Foreign Direct Investment 2017)

The nation's revenue, to offset its total annual expenditure, comes from the collections of taxes, duties and royalties; taxes on (personal income) salaries and wages, on (consumption) sales and value added, on (operations) business levy and green fund, on (corporation) profits, etc. Such revenue generating activities are encouraged and facilitated via Economic Drivers, which designs, implement and review the conditions for investment, employment and, the resulting, taxation. Operating on 5.48% of the nation's total current expenditure budget, Economic Drivers are administered by the Ministries of Energy and Energy Industries, Agriculture, Lands and Fisheries, Planning and Development, Foreign and CARICOM Affairs, Labour and Small Enterprise Development, Trade and Industries, and Tourism.

Infrastructure Management 2017

(An extract from Foreign Direct Investment 2017)

It has been long realized and accepted that Infrastructure Management directly affects productivity; outputs driven by comfortable and safe work and play spaces, such as; water and electricity, industrial parks, administration offices, community centers, open parks, transport hubs, roads and bridges, etc. Utilizing 19.97% of the nation's total annual allocated expenditure to maintain and expand public spaces, the Infrastructure Management category consist of the ministries of Public Utilities, Works and Transport, the Tobago House of Assembly, the ministries of Rural Development and Local Government, and Housing and Urban Development.

No small BUSINESS

For numerous years, I have stated that size, Big or Small, does not matter in terms of business success. Back in the 1980's while delivering many talks on starting your own business, the mainstream media called such advice; becoming self employed or managing a small business. In the 1990's Government programs adopted the most commonly known titles; small business grants and loans, to promote its socioeconomic assistance. By the decade of 2000, I truly believed that it was much more widely accepted that a strong plan with sound market fundamentals and correctly calculated financial projections addressing relevant risks, was the root to determining the most efficient size and model of business operation and would lead to eventual success. In addition, 2010 I founded the Society for Entrepreneur and Economic Development (SEED) to better understand and support business growth. 2011, I leant my skills to structure a Governmental initiative; Enterprise Development through Business Incubation Policy Document, to incubate ideas into industries.

Funding the Future

The nation, which finds itself overdrawn in its current account, needing to raise funds to pay, public sector salaries back pay, overdue bills, recurrent expenditure, finance its infrastructural maintenance and new facilities, and is desperate to diversify its economy, must carefully examine and educate its population about all options. The executive can decide to continue borrowings, locally to finance budget deficits inclusive of capital expenditure, and internationally to meet its foreign currencies import bills and preserve its local currency strength, projecting long-term debt repayments, which would, unless revenues rebound, further grow the current public debt into an unmanageable size. The cabinet can also withdraw from the nation's cash reserves, savings, stabilizing or sovereign funds, invested in foreign low risks, low yield instruments, to finance its previously mentioned needs. Noting that, both borrowings and withdrawals together can solve the nation’s immediate cash flow problems.

Trust the Data

Data generating information and leading to intelligence coming out of the nation's Auditor General Office, Central Statistical Office and Central Bank, which is used to formulate ecological, social and economic development strategies, make knowledge based decisions and set implementation timelines, must be trusted by all groups of the society. Groups intended to distribute profits to its single or many owners via dividend payouts, so called (Profit-Sharing) private or public companies. Groups organized to keep profits for its future operations, so called Non-Profits or (Profit-Retaining). Groups that negotiate for working conditions, via individual or collective bargaining, so called Workers' Unions. Noting that, all such groups are and must be Profit-Making, as it is such profits that offer that crucially needed continuance, for Business must generate growth to paid salaries, taxes and continue, Unions must protect jobs and fair trade, and Government must balance its budget to improve living standards and protect the nation's most vulnerable.

Selling State Assets

There is no need to dispose of state owed assets, new listings on the stock exchange can bring much needed cash into the treasury without losing the assets' future earnings capabilities, at the same time, forcing greater efficiencies by adding more regulations from the Securities Exchange Commission. Protecting employment, both Workers and Management jobs in line with performance, from threats associated with state funding and offering Investors peace of mind as to future annual returns.

Economic Drivers (An extract from Foreign Direct Investment)

With energy and commodities international prices drastically declining and forecasted to fall even further, extractive industries especially petroleum exporting nations, must focus on other sectors and industries to generate its foreign earnings. A Ministry of Energy and Energy Industries, responsible for monitoring, controlling and regulating the energy and mineral sectors, developed over the last century, cannot easily be replaced as the main earner, but the effort to do so must start NOW! Not just by investment in renewables but through a mixed of economic drivers.

Infrastructure Management (An extract from Foreign Direct Investment)

In times of surpluses, savings and investments, especially in infrastructure should be expanded. In times of deficits, infrastructure must be preserved; efficiently utilized and maintained. The nation’s housing stock, buildings and general monuments, public utilities, works and transport, and other miscellaneous items needs urgent attention.

The Ministry of Public Utilities facilitates the effective delivery of efficient, affordable and quality public utilities services through a committed, resourceful team of professionals in close collaboration with all stakeholders. It provides meteorological information and advice consistent with international standards towards the pursuit of national, scientific, social, economic and cultural goals and sustainable development. It is responsible for the inspection and certification of electrical works. Directs and regulates the fare distribution of electricity, water and the management of waste through its allocation to and oversight of State Enterprises. And through its Community-based Environment Protection and Enhancement Programme (CEPEP), focuses on environmental protection, enhancement and beautification in communities.

Capital Revenue

Serendipitously, the 2009 CLICO bailout or investment brought substantial capital revenue to the Republic of Trinidad & Tobago, in 2013, 4 years after. And in 2014, as oil and gas prices decline, CLICO along with the listing of First Citizens’ shares on the local stock exchange grew these extraordinary revenue items by over 200% from the previous year. The listing of NGL and the sale of key property assets formed part of the revised estimates in Apr 2015, budgeted at over 300% from 2014 actual figures. This trend was continued in the 2015-2016 budget projecting $7,300,000,000 in revenue a further 50% increase from the 2015 revised estimates.

Necessity, the mother of Action

Another reaction, by energy policy-makers of the Caribbean region, to the very predictable crisis of increasing energy (oil and gas) prices, at the end of a one-day Special Meeting of the Council for Trade and Economic Development (COTED) held in Guyana on March 24, 2011. A media release acknowledged that the energy situation remained dire, for the net oil importing Members of the Community, given the recent surge in oil prices intensified by the ongoing political turmoil in the Northern African and Middle Eastern Region. “Having identified gaps and areas for strengthening, including those related to renewable energy and climate change issues, the Ministers mandated that the finalization of the CARICOM Energy Policy be expedited.

Business Education

Most developing economies put very little emphasis on developing new industries or sectors, focusing instead on strengthening existing revenue streams. Business is the driver of economic expansion, investing funds, time and effort into opportunities for a calculated return. Yet, so call business educational program produces mostly managers and other specialists in management such as, accountants, HR, procurement, etc., conservative by nature. Risk is at the root of returns, and without risk-takers, an economy is at the mercy of current foreign and domestic market forces without the essential component, hope.

Rewarding Risk

In the present global economic situation, where vast amounts of monies are chasing very few viable opportunities, country’s traditional export and tourism revenues are drastically down and declining, driving Governments to seek to diversify and find new niche markets. Some experts are promoting think tanks, business incubators and entrepreneurship as a solution to increase foreign revenues and create jobs.

In every aspect of society, risk taking has been rewarded as a natural course of events. Soldiers and other security personnel being awarded medals and promotions, sport and culture personality winning endorsement contracts and others, who perform above the call of duty, are given bonuses in some form or another. These rewards are primarily used to motivate others, hence the lavish presentation ceremonies, to be creative, innovative and analytical.

Choosing Associates

Every business must have a highly, confidential plan containing market intelligence and marketing strategies that gives an organization its competitive advantage. Addressing present market conditions, analyzing the market to spot viable opportunities and planning detail actions to respond to and win market share.

The Business Consultancy and Management Services sector is a multi-discipline, highly competitive field which, due to advances in technology, is no longer restricted by geographical borders and is presently experiencing growth across cultures, religions and many other social boundaries. Led by economists specializing in international marketing, seeking and identifying new and feasible opportunities, to win or increase market share. Followed by financial experts, involved in venture capital, private equity and other forms of mezzanine funding, who are in search of superior returns on investment, and supported by corporate lawyers and accountants, strategies are designed and implemented to penetrate, merge or acquire a market presents.

Hard Times

As major economies’ national budgets try to address existing high levels of debt, brought on by the essential financial sector bail-out and the current unsustainable growth in social programs investment, Governments must facilitate public sector reform. Effecting change toward higher efficiency levels, reducing waste and corruption, while increasing sustainable jobs, changes that politicians would instinctively avoid.

Poor wealth distribution systems have always encouraged people to seek power, political power with control of the public purse, to invest in strategies and programs that would benefit their supporters and keep them in power. Of course, the supporters of the group not in power, wishes to be and many recent elections have brought about that change. Reality, however, brings a different change, change to campaign promises, change in responses from assigning blame to taking responsibility and change from “Yes We Can” to “We are looking into it”.

Marketing

An economist focusing on a particular company, not on a country or a sector, is practicing marketing. Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. And very much like the public misuses of the terms ‘Management’ and ‘Business’, ‘Marketing’ is generally misunderstood and mistakenly used for ‘Public Relations’, ‘Promotions’ and ‘Sales’. The practice of marketing focuses on information processing, strategic planning, communications and distribution.

True Development

Building a society is not as simple as providing well paying long-term jobs, modern basic infrastructure or support services. Developing a society involves, raising the level of poverty. Housing the homeless, training the unskilled, treating the addicts, is only part of the journey. Giving hope, where none exist, is a tried and tested motivator used by criminal enterprises to recruit and keep members. Social scientists, having studied the criminal enterprises, have recommended such a give-hope program. This technique involves make-work, training, treatment and reward programs, without all components, especially the reward portion it simply does not work as intended. Relocating from a high crime area to a newly designed community with jobs, training and treatment, in which five year old workers are rewarded with their own rental apartment and after resident for ten years, a house, designed with the possible effects of earthquakes, hurricanes, climate change and on indigenous people in mind. These new residents will help reduce crime both in their old and new communities.