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May 2012
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Hydrocarbon managementBy Timothy Woolford As a nation, Trinidad and Tobago is considered by many as being blessed in varying capacities. Perhaps most prevalent among these is the blessing of oil and natural gas. It is no secret that the engine of its economy is fuelled by the energy sector, with reports suggesting that as of 2010 approximately 42.5 per cent of the nation’s gross domestic product was accounted for by activity within this sector—which the World Bank has recorded as being approximately US$20.6bn. With this in mind, the Trade and Economic Development Unit (TEDU) of the Department of Economics at The UWI decided to host a conference entitled “Revenue Management in Hydrocarbon Economies”. The conference takes place in light of the fact that small, hydrocarbon-rich exporting economies are typically faced with peculiar challenges in the context of revenue management. Research suggests that very few developing economies with a rich hydrocarbon endowment achieve sustainable development. Over the past three years, Trinidad and Tobago has been characterized as experiencing successive periods of negative economic growth. This is not to suggest that we are incapable of achieving sustainable development, in fact, quite the opposite. Hydrocarbon revenues can provide the resources necessary to achieve our development goals. However, management of these revenues is critical to the process of achieving sustainable development. As the nation prepares to celebrate its fiftieth year of independence, there could be no greater gift than this gathering of intellectuals, policy specialists and experts in the field. With themes speaking to the concepts of corporate social responsibility as well as transparency and accountability in the management of such revenues, this conference will help chart a way forward for the nation. A key major discussion on Dutch Disease and its relevance to the case of Trinidad and Tobago is expected. There is a view that the Dutch Disease, defined as the adverse macroeconomic impact on an economy occasioned by an oil windfall, has undoubtedly affected the country’s economy. Dr. Roger Hosein, the Coordinator of TEDU, highlighted this at the Department of Economics’ recently concluded Conference on the Economy, stating that the dependence of the economy on the hydrocarbon sector has led to the failure of other sectors of the economy to perform at their fullest potential. The conference is meant to appeal to all facets of the society including youths. An essay competition for secondary school students invites them to lend a voice to the discussion of revenue management and sustainable development. Issues such as the historical context of the petroleum industry of Trinidad and Tobago shall be heard, as well as the proposition of an appropriate regulatory regime for economies of our nature. Discussions on macroeconomic implications for the nation’s economy shall also take centre stage. Perhaps of key significance, will be the discussion of potential diversification which promises to be enlightening, given that an issue that has been on the tips of the tongues of many national and regional economists over the years shall be addressed. The conference, “Revenue Management in Hydrocarbon Economies” takes place from June 20th to 22nd, 2012 at the Hyatt Regency Hotel, Port of Spain, Trinidad. For further information, please contact the Trade and Economic Development Unit, Department of Economics, at 662-2002 ext 83233 or 83231 or via e-mail at corm@sta.uwi.edu or visit the conference website at http://sta.uwi.edu/conferences/12/revenue/index.asp Timothy Woolford is a MSc student of Economics. |
