March 2016


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Diversifying our economy is a necessity

The first reaction to economic uncertainty is to curb spending, almost to adopt a state of economic hibernation, as an option to mitigate financial risks and vulnerability. The current fiscal landscape is an opportunity to change our thinking, and in some ways to force our hands, to pursue the economic diversification we have been talking about for many years. Our economic circumstances demand greater efficiency, productivity, creativity and competitiveness. But we must not view the current economic climate with trepidation, for in every situation of struggle lies opportunity, and we must continue on a trajectory of national development.

In advancing infrastructural development, we must identify needs and opportunities for wealth creation. Changing the mindset in how we use and benefit from our major capital infrastructure projects is necessary. Should we be thinking about a “cost-sharing model” to finance major infrastructure projects?

Neighbouring countries are building infrastructure through creative design, finance, build and operate schemes; and some have already embarked on the collection of tolls on highways and bridges. And while it is imperative that we find creative paths to funding such as accessing the capital market or attracting investors to pursue such projects, we must always bear in mind that we have to repay.

Nonetheless, we must find a way forward as our traffic woes continue, on the East-West and North-South corridors, a tremendous waste of human time and energy. While a light-transit system is favoured by many, myself included, the cost to develop it needs to be ascertained. Light-transit systems exist in many cities around the world. Infrastructure development can stimulate growth in our economy and the proposed highway to Toco and a port in that area, to link Tobago, can stimulate growth in our north-east peninsula as well as growth of domestic and international tourism in Tobago. So too can a highway to Mayaro/Guayaguayare, stimulating possibilities for the development of our south-east coast in tourism, agriculture, industry, and so on.

Educational tourism is another area of potential growth in this globalized world.

The UWI St. Augustine Campus is well positioned to attract ‘full-fee’ paying students from all around the world; especially in the areas of medicine, engineering, agriculture and law. We need to capitalize on this, considering our geographic proximity to South and Central America, coupled with our strong diaspora linkages with North America, Europe and Asia. Students bring income not only to universities but create vibrant communities.

Many of our Caribbean islands are experiencing the benefits of attracting such students. Our Faculty of Medical Sciences, with new facilities at the South Campus, the new hospitals in San Fernando and Couva and others can make this vision a reality.

Another point I wish to make is that this is the century of the green economy. The use of our natural resources in more meaningful, sustainable ways, creates opportunities for growth, with greater value addition for new industries like furniture from our prized teak for example, or processed fish from our marine environment. Alternative energy technology, such as solar and wind energy, forms part of the green economy, and needs policy support. So too does solid waste management – collection, recycling and the development of new products. The management of our natural environment, like our watersheds, must not be taken for granted.

We also need to work towards food security. This is a time for us to change our eating habits, grow more of what we eat, and eat more of what we grow, and there are real possibilities here, like plantain and cassava chips instead of french fries. Agriculture, with production, mechanisation, transportation, agro-industries, marketing and distribution, including exports can generate employment, wealth and import substitution.

We created the Department of Mechanical and Manufacturing Engineering, with IT/computer-aided design and manufacture, and industrial engineering at the centre, so as to bring advanced training in manufacturing technologies/systems of production. It is the best way in an environment of scarce and expensive labour, and the need for consistent high quality. With energy/oil prices down, our competitiveness in manufacturing will be challenged, as others will ramp up their manufacturing.

Finally, our arts, culture, festivals and their diversity are areas demanding critical attention. Our creative industries are a woefully untapped aspect of income. Service industries, especially a global and regional entertainment industry should be a logical step for us. However, we must begin to adopt a culture of service excellence. A separate Tobago Carnival, on a fixed date, has always had appeal. Our Department of Creative and Festival Arts (DCFA) and our film makers, are well equipped to support this development.

I believe we must create new business, new wealth, and reduce the level of poverty; ultimately to achieve an overall better quality of life for our citizens. The value of what we are able to accomplish tomorrow, depends on the choices we make today.

EDITORIAL TEAM

Campus Principal: Professor Clement Sankat
Director of Marketing and Communications: Dr. Dawn-Marie De Four-Gill
Editor: Ms. Vaneisa Baksh [vaneisa.baksh@sta.uwi.edu]

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The UWI Marketing and Communications Office
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