Caribbean News Now!

By D. Markie Spring, MBA. BComm
Turks and Caicos Islands

Pessimism directs the thoughts of our prime minister, as he expects our economy to fail for the fourth consecutive year.

His pessimism stems from the fact that the world over is experiencing declining economies and a shifts in the overall monetary systems. In this sense, the leader shows no real concern for local recovery, but often blames his failure on this recessionary period.

The author of a number of published works, D. Markie Spring was born in St Vincent and the Grenadines and now resides in Providenciales in the Turks and Caicos Islands. He has an MBA from the University of Leicester, England, and a BA from Saint Mary's University, Canada

By now the world is informed about the recession and its impact; therefore, there is no concrete reason to mention this set back – repeatedly. However, economic sustainability could be gained if we develop the right strategies.

At the beginning of the year, the managing director of the International Monetary Fund (IMF) Christine Lagarde, told the world that the world’s economy is expected to decline further; hence, no economy is immune to this deficiency. Later, the chief economist of the World Bank, Justin Lin uttered a similar warning to the world. In so doing, our PM, since, has made this his signature speech.

Conversely, the difference between our leader, and Justin Lin and Christine Lagarde is that our PM is waiting for the global crisis to defuse itself, while the other two prominent figures recommended that all the leaders must sit with their cabinet and develop effective plans to combat this bubble – our PM seemed not to understand this phenomenon!

On this particular note, it is extremely difficult for St Vincent and the Grenadines (SVG) to obtain real economic growth, since the government allowed the once booming agriculture industry to faint into the practical ground work of nuisance – a lack of value added!

Hitherto, in fixing this horrendous calamity the PM has done the unthinkable – first, he raised much talks about introducing the cocoa Industry and, second, he reshuffled the cabinet, thinking that he has corrected the situation, but behold he has just transferred the problem to another ministry. Opinionatedly, the agriculture dilemma is not an act of sabotage, but a suicidal lack of know-how; hence, the reason our country is constantly eroding like heavy rain on a hillside slope.

It is obvious that leaders around the world are working tirelessly to correct disaster. The United States now has 8.3 percent unemployment – the lowest in three years -- and an economy that added more than 240,000 jobs in January alone.

I am obliged, however, to assist with our economy, since we have not experienced positive growth for three consecutive years and have entered into another.

Today, I want to re-assure farmers in SVG that there are existing markets for their products. Simply take a lesson from Erica McIntosh, the owner and manager of Erica Country Styles. She tirelessly fought her way into the Barbados market, where she is selling her home manufactured products.

I also want to inform them that enough Vincentians live in North America – the United States and Canada -- and Great Britain to secure a market for home grown products such as yams, breadfruits, potatoes, seasonings and the like. As a matter of fact, there are enough West Indians in those parts of the world to secure an even bigger market.

Ideally, during my residence in Canada, I noticed quite a few West Indian stores on Danforth Avenue alone. These stores carry only, and I repeat only Caribbean products, mainly from Jamaica and sometimes there is the availability of other products from Trinidad and Tobago and Guyana – hence, this gave West Indians the opportunity to buy products as if they were at home.

Furthermore, in the Turks and Caicos Islands there are many stores from other parts of the Caribbean – the Dominican Republic, Haiti and Jamaica, to serve their resident populations. On a weekly basis boats with containers come to the Turks and Caicos from those countries with products to serve the local Haitian, Dominican and Jamaican Diasporas. At times, we wish we could have the same service out of SVG; nevertheless, we are able to purchase similar products from these stores.

This has not only produced economies of scales in the Turks and Caicos but created ongoing employment, entrepreneurship, market share, competitive and absolute advantage, exports and monetary exchange for the home states.

In this case, the government is supposed to assist the private sector in securing local, regional and international markets, which will in turn direct other entities to grow through investments and trade.

Farmers stop waiting, search for markets, push for creativity, innovate and succeed.

Good luck!

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Agustus Carr:

Marky, we both have so much in common in our way of thinking. Most of the current politicians serving St. Vincent and the Grenadines (SVG) seem not to be up to the task. The cabinet reshuffle was a good decision by the Prime Minister Dr. Gonsalves. Sabotto Ceaser is the ideal candidate for tourism but I think Senator Julian Francis should have been assigned the portfolio of the Ministry of Agriculture. I also think the Prime Minister might be micro managing his government, which does give the other ministers enough room to become innovation and use their own initiative.

Governing a country is like running a business. It is about making money to improve the lives of your citizens. Unfortunately, it is sad to say most of our Politicians lacks the technical know how to run a small business needless to say a country. You cannot take teachers and former principals and make them politicians. They may be best suited to function in the capacities as Permanent Secretaries and as Minister of Education. We need more businessmen and women to become involved in politics; those who knows how to leverage risk and individuals who are innovative thinkers. We also need more academics to advise our ministers.

Additionally, the job of a cabinet minister is extremely hard work. You have to get up off "your royal" and travel around to meet entrepreneurs and propose investment opportunities. So take for example, the Minister Tourism. He must form a delegation comprising the Chairman of the Chamber of Commerce, himself, the Director of Tourism and a secretary, travel to North America and perhaps the Middle East (Dubai and UAE) and Asia and meet with the various Chambers Commerce and hoteliers to sell SVG. The Minister has to make a presentation to Chamber of commerce and the hoteliers, letting them know we are seeking investment in tourism and other sectors. These are the opportunities and incentives we are willing to offer. A smart investor may ask, why invest in SVG when we can invest in the Bahamas, Jamaica or the Dominican Republic, which is closer to North America and cheaper for the tourist. The Minister and his delegation must be prepared to respond and sell SVG as if it is the best country in the world. This is how you solicit investment. If you sit down and hope that the investors will come to you, you are dead wrong and if you think that by travelling to the Caribbean Tourism Organization (CTO) Annual Exhibition will somehow help you attract investment you are dead wrong as well. The CTO is too competitive and to many Caribbean countries overly rely on it for tourism investment. It's a good organization but other avenues should be vigorously pursued.

On the issue of Agriculture I have always held the view that Cooperatives are the way forward. We have very little farmers in comparison to other countries and we are too individualistic. I believe the decline in SVG agriculture industry was avoidable. Unfortunately, this came about because of miss management and mediocre policies. In order to succeed we must pursue a proper model of diversification and establish proper organizations to serve our farmers. I would stop short of blaming the Prime Minister for the decline in the Agriculture industry in SVG. There was a Minister responsible portfolio and he should be held to account.

The St. Banana Growers Association under the management of Norma Keizer was the perfect model of what a cooperative should be. This was the ideal model for Agricultural Development in St. Vincent and the Grenadines. Unfortunately, someone dropped the ball. The advantage of a cooperative is that farmers can collectively sell their products into the cooperative who then market products locally, regionally and internationally. The cooperative in return purchases fertilizer and whatever raw materials are required. This will allow these materials to be acquired more cheaply as compared to an individual farmer purchasing them.

Take for example Poultry. There is no reason why SVG should be importing Twenty five million (25,000,000) pounds of chicken annually when there are local poultry farmers and feed sources. This is where the cooperative comes in. The cooperative builds the processing plant through a subvention or grant from the government Import and incubate the eggs, produce the feed and distribute them to the farmers. This would have to be a sustainable process; so some farmers will focus on producing eggs while others will focus on chicken. Finally, the cooperative pluck, clean, package and sell the chickens. Even large countries like France, Italy and USA still rely on cooperative to serve their rural agro communities.

We have for too long concentrate on mono cropping. The issue is, while we grow other crops we seem to be very focused on Bananas, which is very vulnerable to hurricane damage. We are now talking about producing cocoa. What about tea and coffee? Of all the countries in the Caribbean SVG is perhaps the most fertile. The underutilized hill sides can be used for producing tea and coffee. Meat and Meat products also has tremendous potential. There no one who produce hams, sausages or even cheese. All these products are imported. There are many opportunities that can be person which will also help reduce the unemployment rate.

Finally, I would like to talk about packaging. Finding cheap materials to package your products is one most difficult challenge. If your packaging material is too expensive then your product will be too expensive too. Therefore, you will not be able to competitively price your products because your overheads and cost of production may be too high. The issue is, it is pointless marketing a poorly packaged product. In order to allow the farmers and other businesses to package their products at very high standard we must provide duty free concession on packaging materials. We must also give duty free exemption and Agro processing equipment. Duties are monies you never had so it will be missed.

Marky, these are the kinds of strategies we have to pursue. We must firstly select the right candidates to become politician who upon assuming office must work sensibly and tirelessly to advance the nations business. SVG has to pursue a model of sustainable agricultural diversification. Cooperatives must be must be pursued more vigorously as a means of obtaining raw materials, processing and sale of Agricultural products. There must be delegations sent abroad to frequently solicit investment. This is the only way we can succeed and overcome this negative economic growth.

D. Markie Spring, MBA, B.Comm:

Bravo Augustus Carr!

I do hope that the authorities have enough time and space to digest this foresight. You have explained it well and there is no need to rediscover and pursue the phenomenal course you took. Again breath-taking and inspirational!

However, some of your data stands out, which I would like to stress on. The first you spoke about monocropping! Ideally, the government has been warned about this haughty agricultural practice. For too long we have encouraged the government to pursue diversity within the agriculture sector; yet this calling-out shows no sign of positive reaction. Having assessed the whole dilemma I do not think the government has shown much concern about correcting this distaste.

SVG has some of the most fertile soils and yet we are at the bottom of the table in agriculture and manufacturing. Carr you are spot on when you said we only visualized the banana industry as being worthwhile; knowing its vulnerability to natural disasters. What happened to the other crops?

Barbados whose soils could hardly grow a tree has planned to reduce its imports by growing and manufacturing more at home. Can you imagine?

The reshuffle of the Cabinet came at a time when the Agriculture Minister failed. Opinionatedly, all the PM did here was to transfer that problem. The Reshuffle is good, but not for that purpose! If the act of the minister was a sabotage he should be fired; if he is best suited for the present ministry he controls now, why wasn't he placed there in the first place -- where he has expertise?

Carr you also spoke about stopping short of blaming the PM for the Agriculture mess. Well I won't blame him either, he should be held accountable as he is the PM who oversees everything. If the agriculture sector has problems and the minister in charge is not doing his job, the PM should have confronted him before the situation got worse. Not doing anything -- he is as guilty as the minister.

While on this issues, I believe that the PM should not hold a portfolio. This is taking away from what he is supposed to be doing by overseeing the entire operation of country. The ministries should be advisors to him; hence, at the end of the day he has the last say.

PM does not demonstrate any form of interest in the lives of Vincentians. Reports received that he has just won another sum of money in the court. As far as he is concerned Vincentians could die -- he has money to survive even in difficult times.

As his "comaradees" say -- "What a government!"

Agustus Carr:

Captain the ship is sinking!

Marky, if the Unity Labour Party (ULP) does not change its course it will loose the next general election. This is guaranteed if they fail to complete the international airport by the next election date and reverse the spate of hardship in SVG. The ULP is onboard a sinking ship. The strategy they are pursuing seems to be causing the poor to become poorer. More taxes and fees seem to be their watch word along with Non profitable public expenditure.

To alleviate poverty, we must provide what I called a “zero base model” for the poor. Near zero tax for the extremely poor and zero tax on business start up along with exemption on Government fees. You cannot alleviate poverty without empowering the poor. This means providing business and employment opportunities for them as well as improved access to education along with very flexible borrowing. The hardest thing to do is to start a business. Therefore, we must make starting and owning businesses very simple and easy. There must be a grace period for those who choose this route; when the business reaches a stage of profitability then we will start taxing. It's amazing how countries talk about reducing poverty but there are no clear strategies to do so.
In our style of democracy the rich seems to be the ones who get ahead. They pay fewer duties on vehicles because they are only ones who can purchase them new and the new vehicles carry a lower duties than the older ones. They get tax holidays and duty free exemptions on their businesses because only their businesses are able to meet the minimum requirements for such exemptions. They are the ones who can source funding easily because they have the required security to do so. We need a Muhammad Yunus to start a Grameen Bank who will provide micro-credit for the poor. That's how you alleviate poverty. This is an article from the Grameen Bank Website.

"Sunday, February 16, 1997 Anyone who scoffs at the value of 62 cents should talk to Muhammad Yunus. In 1976, the Bangladeshi economics professor tried an experiment. From his pocket, he lent the equivalent of $26 to a group of 42 workers. With that 62 cents per person, they bought the materials for a day's work weaving chairs or making pots. At the end of their first day as independent business owners, they sold their work and soon paid back loan.

Thus began the microcredit movement, which has become the world's hot idea for reducing poverty. This month, microcredit backers met in Washington to began to broaden the program's reach and raise money from developed nations and institutions such as the World Bank. Eight million people are now getting microcredit, half of them in Bangladesh. Microcredit proponents want to expand that to 100 million people by 2005. It is a worthy goal that the United States should support."

Source :(http://www.grameeninfo.org/index.php?option=com_content&task=view&id=336&Itemid=373).

This is a worthy strategy that the ULP should pursue. Ideas and policies like these that give poor people opportunities to succeed and emerge from poverty. Micro-credit is one of the best poverty alleviating strategies and a way to grow your economy. That's what I am talking about. Not taxation, taxation but opportunities and more opportunities.

D. Markie Spring, MBA, B.Comm:

Another great article by Augustus Carr!

I have actually learned a few things here. However, there is no need for me to expand on most of what Carr had said already.

His article is not great, because most of his ideologies complement those that I hold firm, but he explains well and make references to ideologies that worked.

Augustus, you highlighted, again, some points worth debating. Firstly, you mentioned that the government cannot alleviate poverty by increasing taxes – very well, austerity does not work in our case. This confirmed the point I made earlier that the actions of our government is like milking a cow that does not have milk. Taxing people who do not have jobs makes one ask the question, "Does the government know they are doing or they just don't care?"
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The "Zero based tax" program should be ideal for the country. I believe it would benefit especially the poor. In this sense, the government cannot provide all the jobs needed in the labor market (we are not a Communist state). The private sector has to play their part. It makes sense providing concessions or tax free benefits for people who want to start their own businesses. These entrepreneurs will employ people and give them the opportunity to help others. SVG could be better off only if our government has the right vision. I bet you that if the government assists the private sector that the government would not have to worry about high unemployment rates.

Concerning the issues about vehicles and duties -- the system in SVG is designed for the rich people. Less duty on new vehicles makes no sense! In essence, only the rich can afford to buy a vehicle on the year. When the question is asked, "Why is this so?" the government excuse is normally that they do not want old vehicles in the country. Well let's wake up our government! People like you, Augustus and I who cannot buy a vehicle on the year, are we supposed to build a donkey cart? This system is too flawed!

August is right again when he said that the farmers in SVG need a corporation. It is needed and I encouraged all farmers to be members. If any farmer in SVG want to acquire a market here in the Turks and Caicos Islands, I am ready to submit a proposal on your behave to the companies around here --supermarkets, hotels and other stores. Since the government is inaccessible when it comes to this, I am ready to assist.

Farmers get up and ask your corporation to sponsor tickets, go to US and Canada and look for markets. It's the only way forward. Your PM is too busy suing and making money on his behalf.

Start planting your crops there are sustainable markets, unlike your government, I guarantee!

Simon Anderson:

WHAT ON EARTH IS MARKIE SRRING STILL SMOKING?

Spring fails to accept the fact that St Vincent comparatively, has done the best economically of all the East Caribbean countries in the last ten years.

St Lucia is outstanding, but they have always been ahead anyway.

St Vincent, before Ralph Gonsalves, was absolutely LAST in the entire Caribbean regarding economic growth, with the exception of Haiti.

Today that is no longer the case.

In fact, we have the least debt AND the least debt to GDP in the region.

Spring is such a liar, that this nonsensical garbage is not surprising to anyone.

Spring continually lies from both sides of his mouth. He lies like when a horse is trotting!

If the Managing Director of he IMF and the Chief Economist of the World Bank clearly state that the world's economy is declining, then what is Spring's problem?

Isn't St Vincent a part of the world?

If the world shrinks, wouldn't St Vincent be affected as well?

Spring attempts to give the impression that he is an economist -- but nothing could be further from the truth. Yes, he may have taken ONE economics class... but that does not an economist make.

Ralph Gonsalves is an economics (first degree)graduate, so before Spring opens his mouth, he should learn from the economic wisdom of the Prime Minister.

Does Spring have any idea what is happening in the great USA?

Is Spring aware that the USA has an official unemployment rate of 8.5% and an unofficial rate of close to 15%?

Is Spring aware that the USA has been having severe economic problems? In fact several countries around the world are suffering economically. Is Spring aware of this?

If he is......then he is also a deceitful liar as well.

If that situation exists in the great USA, what does lying Spring expect to happen in the Caribbean.

Spring is simply a lying, self-seeking, moronic ignoramus.