New era for Caribbean services sector

BAVINA SOOKDEO

In a significant move to transform the landscape of the Caribbean's service industries, prominent figures from the realms of business, government, and entrepreneurship came together for the Caribbean Services Exporters Symposium 2023 (CSES23).

Held in a virtual setting on October 17-18, this event became a crucible of inventive concepts, charting a fresh course toward sustainable expansion and global competitiveness within the region’s service sector.

Under the theme Reimaging the Caribbean: Positioning the Future Driven by Knowledge Services Growth, the symposium was orchestrated by the TT Coalition of Services Industries (TTCSI), alongside major regional counterparts from Barbados, Belize, Jamaica and Latin America.

Vashti Guyadeen, TTCSI’s CEO, said, “This collaborative initiative marked a progressive step towards harnessing collective expertise, addressing sectoral challenges, and maximising the inherent potential of the Caribbean’s services landscape.”

The symposium, which attracted around 500 participants, featured 50 virtual exhibitor booths, interactive networking segments, and strategic matchmaking sessions. These elements were integrated to facilitate potential joint ventures, setting a solid foundation for long-term business relationships and regional economic fortification.

One of the pivotal discussions, the Trade Ministers Roundtable – led by Barbados’ Minister of State Sandra Husbands, underscored critical agendas. These included formulating a regional services register, enhancing standards and accreditation through collaborative educational initiatives, focus on non-mutual recognition agreement (MRA) sectors, strategic market-penetration tactics, and digital transformation through e-commerce and IT services.

The conversation also delved into the significance of positioning the Caribbean services industry as a cohesive “regional brand,” a concept further supported by insights from industry leaders.

They highlighted resilience and adaptability as prime components for thriving in the global business arena.

In the spotlight was the critical narrative of environmental sustainability, driven by Guyadeen.

Emphasising the sector’s significant ecological footprint, she advocated for integrating green practices within operational paradigms.

“Transitioning towards sustainable modalities is not solely about ecological preservation. It also promises economic viability, distinguishing Caribbean services in the global marketplace,” Guyadeen said.

In an interview with Business Day, Guyadeen elaborated on the transformative journey ahead for Caribbean services sectors.

She said the symposium was not an end but a beginning, signalling the dawn of a revitalised era when opportunities, particularly after the Caricom milestone, would abound for service providers across member states.

She added that the symposium’s role is a conduit for empowering regional micro, small, and medium enterprises (MSMEs), particularly the women-led entities that form a substantial segment of the entrepreneurial framework. Technology-driven platforms like V-Fairs have revolutionised engagement modalities, offering these enterprises a window to the global stage.

"The TTCSI’s commitment to steering this ship is unequivocal. The goal is to create an environment conducive to innovation, skill enhancement, and global market access, with a harmonised approach replacing isolated efforts. The symposium has set the stage; the onus now lies in sustained collaborative effort and strategic execution," she said.

Recommendations

Guyadeen said her recommendations going forward are:

– Sustained engagement: Continual dialogue and engagement among stakeholders are vital. Regular follow-ups on the initiatives and strategies discussed during the symposium will ensure accountability and momentum.

– Embracing technology: Digital platforms should be further integrated into business models to facilitate continuous regional and global engagement, especially in showcasing the Caribbean's service offerings.

– Skills and knowledge enhancement: Continued investment in professional development, including leveraging regional academic institutions for accreditation and skill development, is necessary to maintain international competitiveness.

– Environmental stewardship: Companies should rapidly adopt and integrate green practices, contributing to sustainability and differentiating their services in the global marketplace.

– Unified market strategies: Collaborative approaches in marketing and market penetration need to be refined and implemented, reducing individual market entry costs and strengthening the region’s competitive stance.

Guyadeen also shared the views articulated by the CEO of the Caricom Private Sector Organization (CPSO) Dr Patrick Antoine.

She noted that after the comprehensive deliberations at the CSES23, several critical recommendations and strategies have been outlined to invigorate and sustain the services sector in the Caribbean. The symposium, underscored by collaborative dialogue and visionary discourse, emphasised the transformative role of collective action in reshaping the Caribbean’s economic landscape.

CPSO's key recommendations:

– Strategic regional integration: Strengthen intra-regional co-operation, ensuring streamlined services trade within member states, with external trade partners, and globally. This strategy demands a nuanced approach, recognising the unique challenges and opportunities present in markets with and without formal free trade agreements (FTAs).

– Holistic market development: Advocate for a consolidated Caribbean market to enhance global competitiveness. Service providers must strategically navigate global trade dynamics, capitalising on established FTAs, and innovatively penetrating markets without existing agreements.

– Active role of CPSO in trade statistics: Endorse the active participation of the Caribbean professional services in enhancing the accuracy and comprehensiveness of trade-in-services data collection.

– Collaboration with Caricom Secretariat: Unify efforts with the Caricom Secretariat’s statistics division to augment capacities for services statistics, reflecting the sector’s influence on broader economic dynamics.

– Addressing ICT infrastructure and 5G transition: Confront the impending ICT crisis, particularly the transition to 5G, acknowledging its prohibitive costs and integral role in future digital endeavours. CPSO engages with stakeholders to facilitate the region’s business case for 5G, essential for remaining technologically relevant on the global stage.

– Monetising services: Implement strategic measures to overcome barriers in service monetisation, enhancing profitability. CPSO commits to fostering scalability and fortifying collective bargaining power within the sector.

– Support for the coalition of service industries (CSIs): Extend support to nations with underdeveloped CSIs, leveraging experiences from countries with established frameworks. This initiative promotes balanced regional development, ensuring no member state is left behind.

– Optimising special economic zones (SEZs): Use SEZs more effectively, linking service providers with available incentives, thereby stimulating sectoral growth and economic diversification.

– Facilitating MSME financing: Collaborate with domestic, regional and international partners to enhance MSMEs’ access to finance, fostering innovation and entrepreneurial growth within the services sector.

– Strengthening CSIs: CPSO envisages a pivotal role in fortifying CSIs, enriching the support structure and developmental strategies across the region.

– Harmonisation and free movement support: Emphasise harmonising business registries and endorse the free movement protocol, scheduled for implementation by March 2024.

– Advocate for a robust public procurement protocol within Caricom: Provide a fertile ground for service diversification and growth.

– Linkage to emerging opportunities: CPSO reaffirms its commitment to connecting service providers with burgeoning opportunities, thus playing a critical role in the region’s economic renaissance.

Guyadeen concluded that in essence, the symposium crystallised the imperative of strategic alliances, technological readiness, and structural reforms in redefining the Caribbean’s services sector.

These recommendations, pivoting around collaboration, innovation and integration, are not just growth-oriented but sustainability-driven, marking a new chapter in the Caribbean’s economic narrative. They call for urgent action, hinting at the vast potential awaiting realisation in this sun-blessed region.

Furthermore, the TTCSI has for the past five years focused on addressing the challenge of trade-in-services statistics and is prepared to take the lead on a unified regional framework for collecting trade-in-services statistics, necessitating the bolstering of national infrastructures and methodologies.

She noted that up-to-date service statistics are vital for strategic planning and attracting potential investors.