With just a few weeks left until the presentation of the national budget for 2017/2018, two former ministers have shared their opinions and offered suggestions on varying aspects of the T&T economy.
Former Minister in the Ministry of Finance Mariano Browne and Former Planning Minister Dr Bhoe Tewarie were among a list of speakers at a conference titled, Breakthrough Strategy for a Sustainable Nation—Action Today for a Better Tomorrow, which was held at the Arthur Lok Jack Graduate School of Business, Mt Hope on August 9.
“The time has come for T&T to behave as though the country is in an oil bust and no longer in a boom,” Tewarie said.
He added that to begin the process of moving toward an economy that is in a “bust,” there is need to identify what the problems are; postponing this process was not an option.
Asked to expand on what strategising would entail in the time of a bust Tewarie said: “T&T needs to stop engaging in combat every morning between one force and the other, and we really have to make a concerted attempt to manage the country to sustainability through having a medium-term strategy for sustainable development.
“Sustainability can only be achieved through blending the economy, the environment and the people. So focus must be placed on how do you build a cohesive nation in which you can build trust, in which you can build harmony, in which you can have commitment to larger goals. A society in which you can have enlightened self-interest.”
In his presentation, Tewarie said in order to diversify the economy the first step involved building on what was already in place such as T&T’s energy, manufacturing, services, agriculture, tourism and entertainment and ensure that those sectors are competitively positioned.
“The second (step) is to reduce our dependence on fossil fuels and generate renewable energy and renewable industries. So there is an opportunity to fast track a green economy here. The third is what should we do with the new energy income from Juniper, Angelin etc? Should we put it in the HSF or should we support diversification with it, and how?
“One would assume that private investment would be attracted to opportunities for diversification and that, as a country, we would want to support that.”
Tewarie added that the right level of investment took place, new and innovative industries could develop
“Once industries such as alternative energy, renewable energy, food production, food processing have started, clusters would form and a greener economy would evolve. There is need to grow the Blue economy as well which comprise of business such as shipping and port facilities.”
In an interview after the event, Browne—who was critical of the measures in place to deal with the slow down in T&T’s economy—said he did not believe that enough was being done to cushion the slow down and that was unlikely to change.
“We are in the middle of what is a secular problem for T&T and it’s a competitive business problem. Even if we improve the volume of gas and solve the shortfall, the real issue is that the price of LNG has declined and we now have competition. North America is moving from an importer and the outlook is for it to be a very high volume exporter of LNG and gas.
“That situation has implications for price and openness of market, as well as T&T’s productivity capacity presently and how we use gas.”
He questioned if the current approach to maximise the value from gas was optimal.
“Should we continue to ship LNG in the form that we are doing it or should we spend more time on methanol? How do we deepen the petrochemical sector, those are critical questions none of which have been posed by this administration.”
Browne added that the country’s future had to be carefully considered and it could no longer be business as usual as the external environment had changed.
Asked whether he was satisfied that the government had done enough when it comes to diversifying the economy, he said in order for diversification to occur there is need to have a list of priority sectors/initiatives, but, at present, he does not see any.
“What are the priorities? If you say tourism, point to me the examples of how we are strengthening and reinforcing our tourism product. You can’t tell me Sandals because, by itself, that cannot work. If we found Sandals what about the other brand-named hotels? Were they invited (to tender/bid to start a hotel in Tobago)?”
Browne added that T&T has not really begun to focus on any real alternative to energy.
Regarding the ongoing problem of foreign exchange shortage, he said it could not be solved given “the mechanisms that we are using.
“We are exactly in the same position that we were in 1986. We are doing exactly what we did then, which did not work, and it’s not going to work now.”
On the issue of retrenchments, Browne said this was inevitable given the current economic realities.
Touching on the crime situation, Browne pointed out that the economics of the day was not the main driver behind the current crime situation.
“Between 1998/1999, crime has been at a pace so you can’t say job cuts will cause crime. Crime has been a problem for the last 20 years; that has to point to a social problem and a difficulty with our education system. It has to point to a lot of inefficiencies in the system.”
