Restructure economywhile there is still time

THE EDITOR: Trinidad and Tobago is blessed – and lucky. Covid19 restrictions reduced commercial activity and some of the Government’s costs over the period, while energy prices almost doubled the anticipated or budgeted amounts. Those factors allowed the Government to see positive economic growth for short periods.

This is a golden opportunity to look at restructuring the economy for the long term and to prepare for what is certainly going to be difficult economic periods. The only way to gain income outside of relying on taxes from the business sector is to invest.

It must be noted that government investment, unlike that of the private sector, involves the use of public funds and therefore cannot be exposed to similar risks of other businesses. Here are some suggestions that can guide the Government in preparing for the future in a rapidly changing world.

The first and most important step is to encourage private-sector investment. That would require investment in infrastructure, good roads and bridges, reliable water and electricity supply and a realistic strategic approach to reducing criminal activity in every community.

Secondly, to invite investment there must be a structured approach to reducing barriers to investment, specifically unnecessary red tape and paperwork. It must be noted that in most cases the Government’s changeover to some electronic operations is still supported by loads of unnecessary paper. Forms dating back to pre-independence times are still required to be submitted along with electronic filing. That is extremely backward and discouraging to modern business endeavours.

The Government must be strategic in its investment in tourism. The tourism business is best managed by those with experience in the industry. Thus, long-term leases for the management of our Gasparee caves, the tours associated with our swamps and the required infrastructure like parking and gift shops, the construction and management of hiking trails to our mountains, rivers and waterfalls should all be done in partnership with experienced tourism management companies.

That model of tourism being a major contributor to the economy when done in tandem with the private sector is a proven success. The economic gains of the many Carnival bands, fete organisers, local nature resorts and tour organisers are just a small example of what is possible when properly organised.

Agriculture would never be a profitable sector, mainly because TT does not have the terrain and required acreage to be competitive on the world stage. But a vibrant agriculture sector is necessary to reduce food importation and gain some levels of foreign exchange. Therefore, targeted crops like cocoa and coffee, avocados, coconuts, corn and rice need to be subsidised. The Government should immediately take steps to encourage the recultivation of sugar cane for local sugar consumption and to restore our excellent rum industry.

Restructuring an economy in order to be successful requires the co-operation and input of the business sector. The Government must act now.

STEVE ALVAREZ

via e-mail