Caribbean News Now!

By Melanius Alphonse

State capitalism harbours statutory corporations, favours companies and, in some discrete localities, development foundations.

These state owned corporations have enormous state resources at their disposal, such as financial guarantees, state clout, idealistic talking points, bureaucrats, and well connected insiders.

Melanius Alphonse is a management and development consultant. He is an advocate for community development, social justice, economic freedom and equality

In ordinary times, this model helped develop incubators and was allowed to grow, and accommodate communities.

In so doing, this model of transformation to growth and development bankrolled by state capital never saw the need to prepare the infrastructure, both tangible and intangible.

And in essence never grew-up, much less face the consequence of the new reality -- that would have been a win-win situation, to a sustainable “magnet” model.

This conclusion is in keeping with the argument that state corporations are no more than a government department with the entire accolade.

The truth is such that, in the new priorities of the 21st century, there is still too little to show for all the talk and state resources – perhaps it is an ideal opportunity to defer from idealism to realism, and convert state corporations into the realm of private enterprise.

How about getting into the real world and earning their worth.

What started as a handout should have multiplied as a sustainable hand up to deliver economic growth for communities and entrepreneurs alike.

But the fact is the dream of an improvement in the quality of life has evaded an adequate workable alternative.

As a result, the failure to create a people centric marketplace that is in line with emerging economies, developing skills and increasing productivity, is not where it should have been.

And in so doing the desperation of individualism has propagated the “I” syndrome.

This requires urgent restoration for the sustainability and enlargement of trade and investment, joint ventures, foreign direct investments, and job creation for the economic dependence of small developing states like Saint Lucia.

To make matters worse, private enterprise is struggling to raise capital in order to have the liquidity to attract the best and brightest in small developing economies; meanwhile, state corporations are sucking large sums of capital and distributing wealth that might have been better used in the private sector.

In furtherance of this, the old method by way of state capitalism to jump start growth is unsustainable – this is an exercise with obvious appeal, pitted towards a nucleus, as a simple proffer of a singular infatuation.

At this time, the national interest of small developing states could be best served, to provide solutions that enable global trade; public policies and investments that will enable growth and innovation to come about in this economic transition.

We’re not there yet – will state capitalism or private enterprise deliver such prosperity?

In preparation for the next era, small developing states like Saint Lucia may very well look to transition its historic villages, towns and city in accordance with its heritage, ambiance, and creative industries – into a renewed powerhouse that is unique in its fusion heritage of being seven times French and British.

This is not hard to convince a physically strong and mentally resilient people that are enthusiastic about the future.

What makes this remarkable is the scope for a renewed urban plan of architecture, social and economic development that is emblematic of an emerging economy that grasps the economic viability of heritage and creative industry – that is second to none.

Will state capitalism or private enterprise make this transition in defining the next economic era?

Collectively, now is an ideal opportunity to engage private enterprise by means of a principle renewal that inspires hope, attracts investors, corporate headquarters and Fortune 500 companies as the holy grail of commerce to impact Inland Revenue.

Perhaps this performance would create an appearance of fiscal responsibility to citizens, many of whom are worried about their jobs, businesses and communities.

So, let’s figure this out.

As business people, as citizens, which vision to prosperity would you prefer in the 21st century -- state capitalism or private enterprise?

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