Contact Magazine Geopolitics Issue by Eureka Communications Limited

Contents

19 An Overview of T&T’s Foreign Policy 22 Challenges to Brazil as an Emerging Regional Hegemon 24 Change and the SIDS 28 The Cloud Wars 30 Public-Private Partnerships: Closing the Infrastructural Gap

A quarterly publication of The Trinidad and Tobago Chamber of Industry and Commerce

Governing Intermestic Complexity

Why “geopolitics”?

The definition of the term “geopolitics” has We are living in a postitself undergone Cold War period that changes since it was is marked by the first coined by Rudolf intensification of Kjellén in the early globalization, complex 20th century. I interdependence, and daresay, however, that the game has not what can only be described as a new world changed very much. dis-order.

Making the EPA work for CARICOM Businesses

Hegemonic Shifts and the Caribbean

We live, therefore, in The EPA provides a an era of instability host of opportunities and upheaval. New for CARICOM powers, both big and exporters yet there small have begun to appears to be little supplant historically dominant ones. Emerging technologies have interest in penetrating the European Union rendered existing ways of doing business (EU) market, whether on the goods or services fronts. obsolete almost overnight.

32 Geopolitics: Old or New Dynamics in the Global System? 34 Trade Balance CARICOM-Cuba 2004-2013 36 Migration & Development 38 What every business person should know 40 Economic and Financial Statistics 42 Economic Outlook 43 Half Year 2014 Review 46 The Battle for the Caribbean Gas Market 48 Energy Statistics

Editor: Halima Khan Editorial Board: Communications Committee: Moonilal Lalchan, Catherine Kumar, Hugh Ferreira, Anthony Agostini, Andrew Johnson Design & Layout JG Design Caribbean Published by Eureka Communications Limited Suite #2 No.9 Avenue First, St. James, Trinidad W.I. Tel: (868) 622-2017 • (868) 628-1555 Fax: • (868) 622-4475 E-mail: • contacteureka@yahoo.com • lanny5052@gmail.com • jasong@tstt.net.tt For The Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637-6966 Fax: (868) 637-7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt For this magazine contact: Tel: (868) 637-6966 Tobago Division:Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639-2669 Fax: (868) 639-2669 E-mail: tobagochamber@chamber.org.tt

52 Implementing Local Content Policies in Oil, Gas and Mining Getting to Common Ground, Pt.1 59 Quarterly Report - Tobago Division Welcome to New Members 60 Advertisers

Information on Trinidad & Tobago

Bamboo Cathedral, Chaguaramas

rinidad and Tobago (T&T) has a population of approximately 1.3 million people who inhabit 4,827 square kilometers (1,886 miles) in Trinidad and 300 square kilometers (117 miles) in Tobago. Trinidad is located between 10º 2’ and 11º12’ N latitude and 60º 30’ and 61º 56’ W longitude or 11 Kilometers (6.8 miles) of the eastern coast of Venezuela. Tobago is located 32.2 Kilometers (20 miles) to the north-east of Trinidad. There are two international sea ports in Trinidad, Port-of-Spain and in Point Lisas. The International airports are located in Piarco, Trinidad and Crown Point, Tobago.

Trinidad’s economy is primarily dependent on the petrochemical sector, while the island of Tobago is mainly dependent on tourism. The twin island republic boasts a multi-ethnic people, diverse culture and unique cuisine. As a result of its cosmopolitan population, the country celebrates a significant number of festivals around the year including carnival, Phagwa or Holi, Divali and Eid-Ul-Fitr. Tobago the smaller island, has a population of just over 54,000 and has an interesting history in that, during the colonial period, French, Dutch and British Forces fought for the possession of Tobago and the Island changed hands more than 22 times – more than any other Caribbean Island.

ERRATA AND CLARIFICATIONS: Puncuation corrected for article titled “Law’s Promising Future” on page 54 of quarter three publication. Original published in quarter two 2014 publication page 56.

Contact • Vol.14 No.3 2014

Trinidad and Tobago Chamber of Industry and Commerce

VISION STATEMENT We are the Voice of Business. MISSION STATEMENT To be the voice of business in the development towards a strong, sustainable national economy. BOARD OF DIRECTORS Moonilal Lalchan, President Andrew Sabga – Immediate Past President Robert Trestrail – Senior Vice President Christopher Mack – Vice President Ronald Hinds – Vice President Rakesh Goswami – Vice President Wade George – Director Luana Boyack – Director Paula Rajkumarsingh – Director Jacqueline Francois – Director Jean-Pierre Du Coudray – Director Reyaz Ahamad – Director Diane Hadad – Chairman, Tobago Division Catherine Kumar – Corporate Secretary & Chief Executive Officer COMMITTEES - TRINIDAD • Communications • Corporate Social Responsibility

• Facilities Management & Maintenance

• Crime & Justice • E-Business, Information Technology & Telecommunications (EBITT) • Energy

• NOVA • Trade & Business Development • Health, Safety & Environment

COMMITTEES - TOBAGO • Business Development & Tourism • Inter-island Transport

• Security • Environment

HOW TO CONTACT US Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637 6966 Fax: (868) 637 7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt Tobago Division of the Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor, ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639 2669 Fax: (868) 639 2669 E-mail: tobagochamber@chamber.org.tt

Contact • Vol.14 No.3 2014

An Editorial Note from the President

Why “geopolitics”? By Moonilal Lalchan

Moonilal Lalchan, President, Trinidad and Tobago Chamber of Industry and Commerce

can well imagine that our theme might cause some in our business community to ask of what relevance is geopolitics to us, especially here in the Caribbean? The definition of the term “geopolitics” has itself undergone changes since it was first coined by Rudolf Kjellén in the early 20th century. I daresay, however, that the game has not changed very much.

Despite having for the most part, relative prosperity, economic stability, easy access to education and democratic systems of Government, the interplay of politics and economics on a worldwide scale remains crucial to T&T’s development. For several hundred years, what has been called the Western World has been the dominant world power. Indeed, the very establishment of the nations of the Caribbean was a result of the expansionist agenda of the “Old World” of Europe.There have been many pivotal points in history since then, when the powerful nations of the world, in vying for power or rich new resources have changed the course of human history. A glance around our world today reveals an alarming picture. The era of peace, stability and economic prosperity that characterised the

and Tobago’s singular dependence on the petrochemical sector, the exploitation of shale gas in the USA, one of our biggest markets, must be of some concern; it is a sad irony that events in the Middle East have been to our benefit thus far. Caribbean-wide, the effects of international criminal activity have reached into the very homes as the drug trade fuels the gamut of criminal activity, while the effects of climate change can literally be seen along Just weeks ago, Pope Francis warned of a our coastlines. And that is to cite but a few….. ‘piecemeal’ Third World War. The conflagration in the oil-rich Middle East which As we negotiate bilateral trade agreements, deposed several leaders has left infrastructure develop law and policy and set our foreign in shambles and anarchy rampant. Political policy agenda, it is a necessity for us in the instability in many countries is sending business community to be aware of, and unprecedented numbers across the globe in examine the international issues that stand to search of work and refuge, while transnational affect us as a country and a region, as well as crime has taken on a new meaning in the age the critical role of CARICOM in any such of information technologyas criminal systems exercise. It is for this reason that the Chamber become more sophisticated. We are also seeing approached the UWI’s Institute of International a resurgence of ethnic and religious Relations to collaborate on this issue and was fundamentalism in Europe, the Middle East, indeed fortunate to have the input of the IIR’s Africa and America. It would seem, only a Director, Professor Andy Knight who is on few parts of the world, including the Caribbean, secondment from the University of Alberta and who provided invaluable guidance in has been immune thus far. developing the issue. We hope that the stories Yet we are far from immune. Perhaps war is in this issue of CONTACT will serve to bring not at our doorstep, but world events must have understanding and alert the business community an impact on our own existence. With Trinidad not just to crises, but possibilities. post-World War II era is seemingly crumbling all around us. The demise of Soviet communism may have overtly ended the cold war, but the hoped-for new dawn of cooperation - with the USA carving a benevolent, democratic path for the world - has not materialised. In fact, the USA, as the single superpower, finds itself engaged in wars on several fronts as it secures its economic and political interests globally.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Criteria for student selection - Each student must: • Be unable financially to pursue further education upon graduation, • Demonstrate potential and a willingness to learn, • Attend all scheduled training sessions, and • Complete a data entry form outlining goals, skills & identifing areas requiring development. The Chamber’s NOVA Committee’s Jumpstart Programme was established in 1998 and seeks to assist school-leavers to learn about the working environment and to access opportunities for employment. Selected schools and institutions across the country are invited to nominate graduating students to participate in this highly regarded ‘youth development programme’.

Participating company requirements - Each company must: • Pay a weekly recommended stipend, • Assign a mentor to the apprentice and • Complete an assessment review at the end of the apprenticeship.

Further information is available on the Jumpstart Programme from the Chamber’s Secretariat or Cheryl-Lyn Kurban, Project Assistant at 637-6966 ext 228 or ckurban@chamber.org.tt

Feature

Governing Intermestic Complexity By Prof. W. Andy Knight, PhD, FRSC (Director of the Institute of International Relations of the University of the West Indies)

e are living in a post-Cold War period that is marked by the intensification of globalization, complex interdependence, and what can only be described as a new world dis-order. This new world dis-order is putting a strain on existing and established forms of governance – at the local, national, regional, and global level. The situation is compounded by the fact that much of 21st century politics are taking place in an intermestic environment – that space that blurs the line between ‘the international’ and ‘the domestic’. What the world desperately needs is a novel form of governance to deal with this new environment. The intermestic space is an ungovernable space that challenges traditional notions of state governance and the Westphalian form of international or inter-state governance. What we are witnessing in that intermestic space is an environment characterized by forces of turbulence, flux, fragmentation, disequilibrium, terrorism, intense civil conflicts, global economic crises, and uncertainty (in fact, I would go so far as to describe it as ‘chaos’). Clearly, our current period of history is beginning to reveal cracks, if not a total breakdown, in the prevailing world order. How did we get here?

Well, during the immediate post-Cold War period we witnessed the removal of some of the structural and ideological underpinnings of the post- World War II world order. This changed structural condition ostensibly reduced the major security threat that the world faced at that time, namely the threat of nuclear war (Mutual Assured Destruction – MAD) between two heavily armed military camps – the United States (US) and the Union of Soviet Socialist Republics (USSR). But the end of that precarious balance of power between the world’s superpowers did not make the world any safer. In fact, it created a climate of uncertainty with the rise of a large number of civil conflicts and the spread of internecine violence in places like Afghanistan, the Democratic Republic of the Congo (DRC), Rwanda, Somalia, Sri Lanka, Sudan, the

Former Yugoslavia, etc. In the aftermath of the collapse of the Soviet Union, there have been approximately 93 conflicts around the world in which 5.5 million people were killed – 75% of whom were civilians (See Thomas Keating & W. Andy Knight (eds.), Building Sustainable Peace (Tokyo: United Nations University Press and Edmonton: University of Alberta Press, 2004), pp.1-4). The immediate post-Cold War was also characterized by an exponential increase in transnational challenges. Some of these challenges included: the horizontal proliferation of weapons of mass destruction (WMDs); the spread of hate material; proliferation of child pornography; cyber attacks; drug trafficking; trafficking in children and women; an increase in the illicit trade in small arms and light weapons (SALW); an increase in mass and illegal migration; a rise in the number of internally displaced persons (IDPs); an increase in sex slavery, forced labour and other organized criminal activity; financial and market collapses; a massive return to piracy on the high seas (especially in the Malacca Straits and of the coasts of Somalia and Nigeria; the circumvention of national regulatory policies and national taxes, and so on. Clearly, national institutions of governance had a difficult time coping with these transnational and increasingly intermestic problems (See Amitai Etzioni, “Beyond Transnational Governance,” International Journal (Autumn 2001), pp.595-610) As well, the post-World War II governance institutions (like the United Nations, the World Bank, the International Monetary Fund, the International Development Agency) that were essentially designed to address inter-state issues, were all of a sudden showing signs not only of ineffectiveness but also irrelevance. This raised a signal alarm amongst scholars and practitioners of IR for a new global governance architecture that would be better able to handle these intermestic and transnational issues.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

The debacle in Somalia, the Rwandan genocide, the indiscriminate slaughter of thousands in the Africa (especially in the DRC, Sierra Leone, Sudan, Liberia, Mozambique, and Cote D’Ivoire), the utilization of child soldiers in civil conflicts, and the continued violence in the Middle East, Asia, Chechnya, and parts of Latin America, all indicated a persistent adherence to a culture of violence as hypernationalism and long supressed ethnic conflicts reared their ugly heads in the latter part of the twentieth century. Other human tragedies and gross human rights violations occurred within so-called failed states (like Haiti) and ‘terrorist’ states (like Iran), making civilians in those states particularly vulnerable to harm. The destruction of national infrastructures and of governmental and societal institutions worth billions of dollars was due not only to these cases of internecine violence but at times also to man-made and natural disasters. Basically, the narrative of the new world disorder painted above cries out for the establishment of novel forms of governance. After all, the existing forms of governance, at every level, have proven to be ineffectual. But the turbulence and fragmentation is only part of the picture. The late James Rosenau used to say that the advent of dynamic technologies has resulted in a decline of distances in the modern world. In his inventive style, he termed this ‘distant proximities.’ (For further elaboration see James Rosenau, Distant Proximities: Dynamics beyond Globalization (New Jersey: Princeton University Press, 2003) Technological advances in communication and transportation have resulted in an increase in the level of complex interdependence. Modern communications (in the form of television, radio, newspapers, telephones, fax machines, computers, digital phones, the internet, electronic mail, and various social media) appear to be producing contradictory outcomes: uniting and fragmenting audiences; exacerbating social cleavages as well as bringing formerly disparate groups together;

Feature heightening existing antagonisms as well as providing a means through which such friction can be resolved; eroding national boundaries as well as propelling nationalist fervour; increasing political cynicism as well as raising the level of civil society’s political consciousness. Individual citizens have been empowered vis-à-vis their governments as a result of the media’s influence. At the same time, because of their adeptness at utilizing the media, state leaders have also been empowered vis-à-vis their civil society. Modern transportation has allowed people of formerly distant societies to interact more frequently. But at the same time, it has also served to facilitate transnational criminal activity. The overall effect of the above forces (what James Rosenau coined as ‘fragmegration’) has been a shrinkage in social, political, economic and cultural distances. As a result, formerly dense and opaque frontiers are being dissolved, thus breaking down the Westphalian notion of ‘inside and outside’. National boundaries are no longer able to

divide friend from foe, as we are witnessing now in Syria and Iraq. Indeed, the technological revolution has the potential of creating in the minds of people around the world a sense of global citizenship (either in the Western liberal sense, or in the extremist al Qaeda/ISIS sense). The virtual collapse of the dividing line that separated public and private spheres, domestic and external spheres seems to suggest that we have moved beyond the Westphalian structure of nationallydelineated sovereign states to a more fluid structure requiring a different form of governance. This explains why the world has been groping for novel ways to govern this unruly globe – from unipolarity to multipolarity, from multilateralism to plurilateralism, from the G2 to the G3; from the G5 to the G7/8; from the G20 to the G22; from the G77 to the G90. The global stage in the 21st century is crowded with actors, large and small, traditional and emerging, formal and informal, economic and social, political and cultural, national and transnational,

international and subnational, aggressive and peaceful, liberal and authoritarian, secular and religious. These actors are collectively contributing to what one can describe as a highly complex system of multi-level governance. The large number and vast range of collectivities that clamber onto the global stage exhibit both organized and disorganized complexity. Literally, thousands of factions, associations, organizations, movements and interest groups, along with states, now form a network pattern of interactions, which reminds one of John Burton’s ‘cobweb’ metaphor. What we see emerging at this stage of the 21st century is a network form of governance with many centres of authority at multiple levels (universal, continental, trans-regional, regional, trans-national, national, sub-national). It is a governance that is groping to deal with an amorphous new world dis-order. But it is a governance that lacks “steering” – the kind of leadership that can bring coherence and ‘order’ to a world that so desperately needs it. Contact • Vol.14 No.3 2014

Feature

Hegemonic Shifts and the Caribbean Dr. Matthew Louis Bishop (Senior Lecturer & Coordinator of the MPhil/PhD in IR Programmes at the IIR)

he contemporary world is undergoing a profound series of structural changes. Old certainties that held sway since the end of the Cold War - notably the idea that we had reached the ‘end of history’ and entered a period in which the United States, as the world’s remaining ‘superpower’, would reign over a secure and prosperous liberal world order - has begun to disintegrate.

equipped to resolve today’s problems. They were designed to govern what was then a genuinely Western world order, in which the US, as by far the most powerful state - the ‘hegemon’, in the language of International Relations (IR) - could shape and enforce the rules of the global game.

Other actors – from individual firms, emerging states or even masterminds of transnational criminal networks - are also interacting both We live, therefore, in an era of instability and with and against the state to wield power too. upheaval. New powers, both big and small have begun to supplant historically dominant The Decline of American Hegemony ones. Emerging technologies have rendered The world that is unfolding today is one in existing ways of doing business obsolete which power is far more widely distributed. almost overnight. Companies that barely As a consequence, although the US existed a decade ago are now some of the undeniably remains dominant in certain world’s largest. Global value chains are respects, many thinkers believe that it is no transforming patterns of trade in complex longer truly hegemonic. At its most simple, ways, and creating important centres of this means that its power does not exceed that commerce outside of the traditional heartlands of all of the other major states across every of capitalism. Many regions, notably Asia, dimension of hegemony: military, but also much of Latin America and Africa, technological, financial, political, cultural, are enjoying blistering levels of growth. and ideological. In fact, only in the military domain does the country exhibit genuinely Yet economic crisis has eviscerated living hegemonic attributes.. standards in many places, and provoked the return of chauvinistic, atavistic - and even Perhaps most importantly, relative US decline fascist - politics in a European continent where p o t e n t i a l l y m a k e s t h e s t r u c t u r a l old rivalries are re-emerging to redraw the transformations through which we are living boundaries of nation states. A confrontation even more difficult to manage and govern. between West and East, which has been Only the G20 has been institutionalised, unthinkable for almost three decades, is once principally as an ad hoc response to the initial again looming. In parts of the Arab world, the phase of the financial crisis, and today, half spectacular collapse of dictatorships and a decade on, many troubling question marks expectations of democratic change have given still hover over it (See the upcoming issue of way to a more sobering reality of emaciated the Caribbean Journal of International s t a t e s , p o w e r v a c u u m s , r e l i g i o u s Relations & Diplomacy (Vol. 2, No. 3, 2014) fundamentalism and medieval warlordism. There has been no sign of the ambitious ‘Bretton Woods II’ that many, including But how should we comprehend the President Obama, called for towards the end significance of this confusing and contradictory of the 2000s. We have no serious, picture? We are operating with a set of representative (let alone democratic) global institutions - the UN, the IMF, World Bank, institutions governing the environmental crisis, and WTO - which were essentially established the growth of transnational crime, the internet, at Bretton Woods in 1944/5 to deal with the multinational corporations, or indeed finance distinctly narrower range of challenges that (including the pernicious influence of the faced the world then, and they are plainly ill- shadowy offshore world).

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Unstable Transitions Many American analysts are deeply worried about the power transitions that are currently underway. They do not fear the rise of both China and other influential states simply because they wish to maintain US preeminence (although they may well do). Rather, they genuinely believe that a worsening imbalance of power will necessarily lead to a potentially devastating conflict of some kind, as the incumbent superpower declines and its successor rises. Until one is able to emerge as an undisputed hegemon and impose order on the system, we will experience a period of intense instability, so the argument goes. Of course, there are plenty of people who reject such gloomy propositions. For example, liberals emphasise the ability of powerful states to work together, either because of culture (i.e. China’s ‘peaceful rise’) or simply because their economies and societies are so interconnected that armed conflict would be nonsensical. Notably, China has not sought to reject the existing order, but rather accommodate itself to it (by joining the WTO, sharing responsibility for leading the G20 and so on). Yet even liberals tend to be disappointed with the governing bodies that we have, and they consequently argue for much stronger institutions of global governance to help embed conflicts arising from power disparities under an enforceable legal framework. The Caribbean Amidst Global Structural Change Regardless of where we might stand on these debates, what does the contemporary era of change mean for the Caribbean? There are three issues that the region needs to consider: First, the financial crisis has shown two things clearly: the collapse of the hyper-financialised Western model of development, and the deep problems of neoliberalism. The increased acceptance of the work of heterodox economists like Paul Krugman, Ha-Joon Chang and Thomas Piketty further highlights

Feature this tendency. Unfortunately too many of the region’s political and economic elite remain in a structural adjustment mind-set, expecting the private sector alone to generate growth, even though much of the world has long moved on from this hollow notion. All of the countries that are developing rapidly today have complex, mutually supportive relationships between the private sector and the state, with the latter often the only actor with the capacity to take on the kind of risk required to expand a country’s industrial frontier and panorama of development options. Caribbean countries will only be able to create regionally and internationally competitive industries, climb global value chains, or reduce their dependence on the West, if they reject 1980s orthodoxy and rediscover and build, what Mariana Mazzucato has termed, ‘the entrepreneurial state’.

the region does not – at present, at least – appear to be particularly contentious. Thankfully, it is highly unlikely that the Caribbean will be a site of contestation even if conflict were to break out between the two hegemons, with the South China Sea, for example, representing a much more plausible flashpoint. So, on the one hand, Beijing has provided, in just a few years, a striking amount of investment, much of it in upgrading infrastructure, which is broadly welcome given the increasing decline in US and European aid, assistance and investment. Yet the unanswered question is, quite simply, why? If the answer is that certain Caribbean countries are being constructed anew as offshore platforms for future Asian trade through the Americas, question marks surely hang over the extent to which this will generate meaningful development in the region.

Second, shifting power has to be taken seriously. In some respects, the Caribbean occupies an odd position. It famously finds itself in Washington’s ‘backyard’, but also remains deeply neglected. China’s entry to

Finally, the most troubling aspect of the contemporary picture is the environmental threat. Even though it rarely finds itself at the top of the regional political agenda, climate change is, in many ways, potentially

far more deleterious to Caribbean society than either shifting power or economic crisis alone. Indeed, as I have argued elsewhere, it actually imperils the very existence of some territories and communities in the region (Matthew Louis Bishop and Anthony Payne, ‘Climate Change and the Future of Caribbean Development’, Journal of Development Studies, Vol. 48, No. 10, 2012). Moreover, the Caribbean is also more powerless in the face of this threat than just about any other major challenge that it faces. One small nugget of good news is that by 2020 China will be producing 30 per cent of its electricity renewably (and growing). (John Mathews, ‘What does China’s renewable energy revolution mean?’ SPERI Comment, 20th August 2014 - http://speri.dept. shef.ac.uk/2014/08/20/chinas-renewableenergy-revolution-mean/). If Caribbean policymakers and businesspeople are currently mulling over the issues upon which they should base their engagements with their new Asian friends, surely climate and clean energy diplomacy would be as good a place to start as any other. Contact • Vol.14 No.3 2014

Feature

Making the EPA work for CARICOM Businesses Dr. Debbie Mohammed (Lecturer in International Trade at the IIR and Arthur Lok Jack Graduate School of Business)

he CARIFORUM–EU Economic Partnership Agreement (EPA) is now in its sixth year of existence, yet this Agreement, which evoked such intense emotions and opinions as to its intentions and real benefits to CARICOM countries, now seems to be on most countries’ “backburners” as they focus on new trade agreements with other partners. The EPA provides a host of opportunities for CARICOM exporters yet there appears to be little interest in penetrating the European Union (EU) market, whether on the goods or services fronts, leaving the region in the same predicament it was in before the EPA. CARICOM governments have been busy negotiating new trade agreements with countries of Latin America and Asia among others, ostensibly to facilitate market expansion and stimulate exports which hopefully will drive economic growth, but there has been little export activity to the EU. This begs the question: how useful are negotiated agreements without the interest of the business sector? More specifically, how can already negotiated agreements such as the EPA work for regional business?

What is the EPA? Simply put, the EPA is a trade partnership aimed at promoting development amongst its CARIFORUM (i.e. the 15 states of CARICOM plus the Dominican Republic) and EU members. It subscribes to the model that free trade is the principal vehicle for growth and development and so is deemed WTO (World Trade Organization) plus, as it covers goods, services, investment and E-commerce, as well as trade-related issues such as competition, procurement, innovation and intellectual property rights and the environment. The Agreement also provides a development component to assist CARIFORUM countries in building trade capacity and developing requisite scale and product diversity though

stronger regional integration. The EPA is seen both as a tangible manifestation of the new trading system in which preferential trade will no longer be tolerated by a global community committed to free trade, as well as the “success” of this partnership to include a comprehensive list of issues/sectors which the WTO has been unable to negotiate to date. Export Performance The emphasis on a trade partnership and connotations of reciprocal trade has not been lost on certain sectors including academia, labour unions and business. The EPA, which replaced decades of preferential trade and aid to CARICOM countries under the Lomé Conventions with a commitment to progressively liberalize all sectors, has been a source of contention from the beginning. For many businesses, moving beyond the predictable business model of quotas and guaranteed prices, or expanding beyond the CARICOM market, requires new business strategies, uniquely differentiated products/services and incorporation of requisite EU standards and regulations which are viewed as both costly and risky. This is not to suggest that some major regional brands e.g. Angostura, S.M Jaleel & Company, El Dorado Rum and Grace Kennedy, have not utilized the EPA. However, the contention is that these large firms were already exporting to the EU market prior to the EPA and so the real value in the EPA has to be its ability to attract new/other exporters in a diverse range of goods and services segments. A recent report notes that the overall performance of CARIFORUM goods exports to the EU has declined when compared to overall terms of trade under the Lomé and Cotonou periods. In fact, CARIFORUM states have recorded negative balances of trade with the EU under the EPA, except for 2008 when a positive balance of US $118.m was achieved. In the area of services where CARICOM

governments, trade negotiators and business felt the greatest potential existed, the overall export pattern has also been disappointing. Some national service associations such as the T&T Coalition of Service Industries and regional organizations such as Caribbean Export have organized trade missions to the EU in segments such as tourism and creative industries which have yielded positive results. The T&T Chamber of Industry and Commerce also conducted a Trade Mission to three EU countries - UK, Germany and Netherlands, which was funded by the Trade.com facility. The Sectors included ICT Services, construction and food and beverage. However, these are more exceptions than the norm, and so there have been little marked service exports in a range of industries and translating to consistent exports. The poor export performance of most CARIFORUM countries and efforts made to address specific contributory factors will undoubtedly take centre stage at the stipulated 5-year EPA review carded for late 2014. Difficulty accessing funds under the European Development Fund (EDF) has been identified as a major factor impeding timely EPA implementation at the national level. Reduction in aid for trade funds has also negatively impacted the scale of EPA implementation while domestically, supply side challenges including transportation, innovation, productivity, efficiency and private sector financing challenges are identified as key inhibitors in exporting to the EU markets. These tend to be the typical explanations advanced by both private sector and government as they coyly play the blame game. The business sector appears less prone to venturing outside of the domestic or CARICOM markets and continues to rely heavily on governments for sector identification and development. Governments’ slow pace of streamlining procedures, such

Contact • Vol.14 No.3 2014

Feature as customs, standards/testing and improving infrastructure - particularly transportation adds to the cost of doing business which further pigeonholes an already risk-averse private sector. Making the EPA work for business There are specific roles for both the governments and private sectors of the region to play in extracting benefits of the EPA or any other trade agreement. Government: Careful consideration must be given when negotiating trade agreements to the types of goods and services being negotiated to ensure there is 1) trade complementarity and 2) that supply side factors support a consistent, competitive supply. It makes little sense to secure trade

agreements which essentially involve a one- strengthening industry associations to share way flow of goods and services. latest information on industry standards or invest in areas such as testing. In this era of There are several assistance programmes increased competition, expansion of markets under the EDF which can be utilized to and improving competitiveness is essential facilitate trade, including upgrade of customs for the sustainability of businesses. facilities and procedures, establishment of SPS testing labs, introducing the latest The opportunity afforded to exporters to meet industry-specific regulations, standards and the higher standards of the EU facilitates labeling requirements as well as legal preparation for other world markets. requirements for doing business in EU Businesses wil therefore have to 1) develop markets. the confidence to look beyond the domestic/regional markets and the security Private sector: The private sectors must of government protection; 2) identify new reorganize themselves more along the lines products or customize existing products and of North American and European business 3) devise new business strategies, including entities. While it is true that businesses in alliances and partnerships in order to the region are very small, this does not successfully withstand the competitions which preclude them from utilising and accompany such trade agreements.

Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt

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Feature

An Overview of T&T’s Foreign Policy Dr. Anthony Peter Gonzales (Honorary Senior Fellow & Former Interim Director of the IIR)

he foreign policy of Trinidad and Tobago (T&T) has been oriented towards consolidating longstanding relationships with traditional partners such as CARICOM, the USA, Canada, the UK, and the European Union as well as initiating and expanding trade relations with Latin American states and a number of African and Asian countries which provide opportunities for stronger economic links with T&T. Some emphasis is put on Brazil, Russia, India, China, and South Africa in view of their growing importance in world trade and investment flows.

As a country heavily dependent on external economic factors and seeking to gain maximum benefit from the globalization of trade and investment in particular, T&T continued to pursue a policy of economic openness in its search of more market access and foreign investment. Initiatives were taken to boost relations with Brazil, India, China, some African countries and regionally expand trade links with Central America through negotiating partial scope agreements with Panama, Guatemala and El Salvador that would build on the existing Free Trade Agreement with Costa Rica. Some advances were made with Venezuela, the major one being the Memorandum of Understanding to promote jointly the development of oil and gas fields that are shared on the maritime boundaries of both countries. Energy diplomacy was also employed to position T&T energy service providers in Brazil and some African countries, and through energy supply and financial assistance, T&T sought to enhance energy cooperation in CARICOM. Technical assistance in the energy

sector was also extended to some African countries to facilitate achievement of the United Nations Millennium Development Goals. The new relationship with China is probably the most noteworthy of these economic responses. Chinese investment in the energy sector is on the rise as well as Chinese imports of energy products from T&T. The involvement of Chinese companies in construction projects locally has been a major feature of this new relationship which was reinforced with the establishment of a T&T embassy in China. In addressing the unhealthy state of the region, T&T provided assistance through the Caribbean Development Fund and the Petroleum Fund as well as through international advocacy, working with CARICOM and the Commonwealth, to try and advance the case of Small, Vulnerable Economies (SVEs) for special treatment from international financial bodies in line with their economic plight. T&T responded to security threats by assuming leadership in CARICOM on regional security. Initially, this involved a commitment to the acquisition of offshore patrol vehicles, fast boats or interceptors, and radar essentially to stem the tide of small arms and human trafficking, organized crime, narco-trafficking and money laundering. In the context of the success of the single domestic travel space created for the 2007 ICC Cricket World Cup, T&T continues to promote ideas such as the adoption of a regional crime and security strategy, the ratification of the outstanding agreements as well as a new and improved Implementation Agency for Crime and Security (IMPACS).

In addition, T&T has recently proposed the establishment of a Regional Security Coordination Centre. At the multilateral level, T&T is an advocate for the reform of the Security Council, the lifting of the blockade on Cuba, the full implementation of obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, and a radical shift in the design of the post 2015 development agenda towards cooperation in sustainable development that would assist Small Island Developing Countries (SIDS) to overcome their peculiar vulnerabilities. It adopted the Resolution on the Arms Trade Treaty and is seeking to be the headquarters for its implementation. Other important issues being pursued through the UN relate to gender and child issues and development. Success or Failure Success on the economic front has to be assessed largely by the extent to which T&T has been able to open up new markets outside of CARICOM and attract investments from non-traditional sources. In its effort to pivot to other areas, particularly Latin America, Africa and Asia to secure new economic partners, T&T has had modest success so far. While energy exports have grown to some of these markets and increased investment received from them, the amount is not significant enough to be considered attaining the desired target of market diversification. In addition, non-energy exports have remained stuck in CARICOM in spite of the stagnation of this market. In spite of the successes noted above, T&T’s relations with Venezuela still fall far below its potential in terms of trade and security cooperation. Trinidad and Tobago is also yet to fully exploit the scope for increasing trade,

Contact • Vol.14 No.3 2014

Feature investment and political cooperation with on its own bilateral front and in a limited way Latin America as a whole. since its ability to expand markets beyond CARICOM is restricted by the inherent On the regional front and on CARICOM conflict between the need for wider extramore specifically, Trinidad and Tobago was regional market access and meeting the committed to re-engage fully with the regional requirements of the Common External Tariff integration process and contribute to the (CET). strengthening of the overall CARICOM framework, including the CSME. There is Despite retreating from a high-profile and however, no appetite to strengthen the CSME costly regional security imitative, T&T has in CARICOM in a context of debt and continued to advance proposals to strengthen macroeconomic instability and uncertainty. the region’s security apparatus. Getting the US back on board with its financial On widening CARICOM to include the commitment to the Caribbean Basin Security Dominican Republic (DR) and some of Initiative (CBSI) ensured that the programme Europe’s overseas dependencies, Trinidad went ahead with some steam. Success in this and Tobago has had no success in area is still to be determined over a long haul. CARICOM. Expanding CARICOM trade agreements has also been problematic as Efforts to re-energize relations with the US evidenced by the long, protracted and has paid some dividends such as a stronger unfinished negotiations with Canada. Even US commitment to CBSI; extension of the attempts at deepening of existing trade Caribbean Basin Initiative (CBI) to include agreements with regional neighbours as the some energy products of interest to T&T; the DR and Cuba have proven futile. T&T has provision of US technical assistance in had to pursue extra-CARICOM market access healthcare, customs administration and

security; an agreement to create a renewable energy research center; and a new framework agreement to overcome barriers to trade and investment. On the multilateral front, concrete progress is painstakingly slow in line with the complexity of UN diplomacy on the issues outlined above. T&T can however remain hopeful that its focus on the small arms treaty, cooperation on climate change, and a post20I5 development agenda to take account of the problems of SIDS could bear some fruit in the near future. In conclusion, the idea of an activist foreign policy based on greater transparency and accountability as well as formulated and implemented by a wider democratic participation and representation with greater emphasis on the commercial side has set the bar for new and improved foreign policy outcomes. Its successful implementation still however remains a challenge, and greater efforts at foreign policy planning, formulation and implementation with stakeholders would be required to achieve the desired success.

Communications Committee The Communications Committee is a Boardappointed Committee of the Chamber, chaired by the sitting President. Its role is to conceptualise and execute the Chamber’s communications strategy as guided by the Board of Directors. As such the committee oversees the publication of CONTACT magazine, three weekly newspaper columns, a weekly radio programme, media releases and other electronic newsletters and bulletins. Each CONTACT magazine is thematic so that two thirds of the articles explore the issues related to the particular theme. The magazine is distributed free of charge to Chamber members. Complimentary copies are given to Members of Parliament, diplomatic missions, hotels and subscribers to the

Guardian newspaper. CONTACT may be read online at www.contact-tt.com. The weekly “CONTACT with the Chamber” radio programme airs on I95.5 FM at 7:25 a.m. each Tuesday. It represents a Chamber editorial and is voiced by the Chamber’s Chief Executive Officer, Catherine Kumar. Programmes are available on the Chamber’s website www.chamber.org.tt. The main issues that form the basis of the Chamber’s lobbies are largely reflected in the newspaper columns. Since 2004, the Chamber has maintained three weekly newspaper columns - Wednesdays in the Business Express and Thursdays in both the Guardian Business and the Newsdays Business Day. Writing on the premise that all issues which affect the

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national landscape also affect business, the columns serve to express Chamber opinion and policy. Topics for articles have included the economy, trade, crime, education, agriculture, health, the environment and culture. The committee encourages Chamber members to submit columns or ideas for columns on topics of interest. Columns may be between 700-900 words in length and the Chamber reserves the right to publish, subject to review by the Committee. The weekly columns may be accessed on the Chamber’s website at www.chamber.org.tt. For further information on this committee kindly contact Halima Khan, Communications Officer, Marketing and Communications, at 637-6966 x 227 or email hkhan@chamber.org.tt.

Feature

Challenges to Brazil as an Emerging Regional Hegemon Dr. Mark Kirton (Senior Lecturer at the IIR)

ince the early twentieth century, Brazil developed a national vision of future prominence in world affairs and a self-perception of ‘grandeza’ or greatness, which was tempered during the last century by challenges related to authoritarian rule, shifts in its economic fortunes and concerns about continued social, economic and ethnic inequality. However, Brazilian domestic and foreign policy has been redefined over the last decade reflecting an assertive strategy for the attainment of international prominence through a regional agenda.

Brazil has been classified as an emerging middle power within the BRICS- Brazil, Russia, India, China and South Africa, one of the fastest rising emerging powers and the seventh largest economy in the world. The country’s global ambitions include the attainment of a permanent seat on the United Nations Security Council, a goal not supported by some Latin states, and the active pursuit of South-South collaborations as a means of strengthening its global reach. Indeed, Brazil has made significant strides in its establishment as a South American leader, advocating for strengthened regional integration and leadership through a soft power strategy within the framework of the Common Market of the South (Mercosur) and the larger UNASUR (Union of South American Nations) which unites the South American continent.

in becoming a member and contributor of the Caribbean Development Bank (CDB) and demonstrating a mutual desire for enhanced inter-regional collaboration through the First CARICOM-Brazil Summit in April 2010 and the development of cultural, health, education, agriculture, tourism, energy and security cooperation. The Brazilian backed Initiative for the Integration of Regional Infrastructure in South America (IIRSA) established in 2000 further demonstrated a commitment to the development of transportation, energy and communication infrastructure for the physical integration of South America, broadening its scope to provide opportunities for increased cooperation with the Caribbean via the gateways of Guyana and Suriname (ECLAC (2007). “Promoting Economic Links between the Integration Schemes of Latin America and the Caribbean : A CARICOM Perspective on Selected Issues” Available at http://www.eclac.org/publicaciones /xml/0/28150 /L.111 .pdf) Although there were increased ties and Trade Expansion between Brazil and CARICOM between 1999-2008,there has been a significant imbalance in trade flows which has been negative for CARICOM. Accordingly, exports to Brazil from the Caribbean increased annually by 27.4%, while imports grew by an estimated 39.8%. Additionally, 2009 data portrayed the imbalance with CARICOM’s imports from Brazil 16 times higher than its exports, resulting in a trade deficit of US $3 billion with Brazil, falling from a recorded US $4.4 billion in 2008. An assessment of the export of merchandise to Brazil between 2001 and 2009 revealed increases by more than 31% per year, while the import of merchandise from Brazil grew by 32%, worsening the trade deficit.

Fundamentally, Brazil has positioned itself as a bridge between the North and the South, maintaining key relationships with the US and Europe and simultaneously strengthening bonds of collaboration within the BRICS, the IBSA Dialogue Forum (India, Brazil, South Africa) and the G-20 as a voice and advocate for developing states. Additionally, Brazil has served as the head of the United Nations Stabilization Mission (MINUSTAH) in Haiti and has actively sought the establishment of stronger linkages with the Caribbean Data from the Office of Trade Negotiations Community (CARICOM), expressing interest for 2009 on CARICOM-Brazil trade relations Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

presented Trinidad and Tobago as the main exporter to Brazil, with over 92% of the total export earnings, followed by Suriname at 4%. The top CARICOM exports to Brazil were classified as extractive resources such as Ammonia, LNG, Urea and Aluminium Oxide. St. Lucia was identified as the top importer from Brazil representing more than 75% of the region’s imports, followed by Trinidad and Tobago with 10% and Jamaica 7%. CARICOM’s main import was identified as crude petroleum oils, capturing more than 77% of import expenditure. It was noted with significance that CARICOM’s imports from Brazil are regionally produced products such as poultry, sugar, wooden doors and frames, paper and tobacco products, which are prone to competition. The foregoing data suggest that Brazil’s engagement within the region remains in its embryonic stages, constrained by traditional challenges such as differences in market size and high transaction costs, which have traditionally impacted the emergence of strong linkages. The view has been advanced that associating Brazil with hegemony and hegemonic intent is to interpret its actions in the region as being driven by coercion and imposition. Instead, Brazil is credited with the capacity for regional leadership, without the use of an impositional approach. Brazil has also been reluctant to impose any strong, coercive dominance in the hemisphere and has been seen as having a preference for the use of ‘soft power’. Further, the lack of the instruments of ‘hard power’, including a strong, well-entrenched military force, and overwhelming economic strength, along with competition from regional rivals such as Mexico and Venezuela, have served to limit Brazil’s regional power projection. In 2014, as elections in Brazil draw closer, the possibility of a change in government has appeared on the horizon, with indications that the incumbent, President

Feature Dilma Roussef, being strongly challenged by Marina Silva, may not win in her re-election bid, if the polls continue to indicate major preferences by voters to Silva’s promises of more investment-friendly economic policies aimed at moving Brazil from its current economic challenges. Additionally, the potential for a reordering of priorities away from South-South cooperation in a Silva-led government, may also impact relations between Brazil and its regional neighbours. Other challenges exist for the emerging regional leader in the 21st century, including the increasing presence and influence of China in the region, limitations to the broadening of IIRSA’s infrastructure development programme to the Caribbean, the dual lack of support and competition from traditional rivals such as Argentina and Mexico , the loss of

with Brazil, multi-destination tourism packages could have been developed and significant financial benefits derived. It is therefore hoped that sustained and timely efforts be made to develop tourism packages While these challenges remain, there is the in order to benefit from the 2016 Olympic need for CARICOM states to develop a Games, which will also be held in Brazil. structured and well-managed engagement with Brazil, which now has resident In conclusion, therefore, Caribbean states, ambassadors in every CARICOM member and in particular the private sector, should be state. Since the first Brazil-CARICOM encouraged to engage Brazil in a more Summit, where more than fifty agreements structured manner through the establishment were signed in areas such as trade, health, of relations with similar organizations in education, security and the environment, Brazil, and through the search for niche among others, there appears to be but a slow markets, the development of production movement towards implementation. Indeed, complementarities along with a robust the Caribbean tourism sector appears to have investment promotion strategy. It is an lost an important opportunity to benefit from opportune time for Caribbean states to move Brazil’s hosting of the recent World Cup the relationship from one of low-level football tournament, since, in collaboration engagement to a mature partnership. momentum in the regional integration schemes as well as cultural and linguistic barriers which have traditionally constrained the emergence of strong linkages.

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Feature

Climate Change and the SIDS By Dr. Michelle Scobie (Lecturer and Coordinator of the MSc in Global Studies Programme at the IIR)

limate change is perhaps the largest threat to the livelihoods and in some cases, the very existence of many small island developing states (SIDS). The litany is long: increasing intensity of natural disasters such as hurricanes, flooding and storm surges; the growing threats of sea incursions in coastal areas that cause erosion, destroy sea walls, coastal infrastructure, contaminate fresh water lenses and threaten coastal populations; the lack of resources to replace and improve sea walls; the vulnerability of the tourism and agriculture sectors that can quickly be out of commission by annually intensifying natural disasters and higher temperatures; the threat to terrestrial and marine biodiversity because of the changing climatic conditions. The regional agriculture, energy, coastal and marine, tourism, health, water, human settlements and transportation sectors all require two main policy responses: adaptation (learning to deal with the climatic and regulatory consequences of climatic change) and mitigation (finding ways to reduce our carbon footprint).

development priorities and having a shared sense of responsibility to achieve them. What does this mean for the regional private sector and climate change? Much of the effort for climate change is on reducing its physical effects through adaptation and mitigation. The Samoa Conference will press for the adoption of risk financing instruments as part of spatial and development planning initiatives (including for example insurance and contingency funds) (IISD 2014). Mechanisms for reducing SIDS’ dependence on fossil fuel imports, promoting sustainable energy markets and improving access to energy services for rural households are also on the agenda.

Regional actors have been involved in initiatives like the SIDS Dockiand the Sustainable Energy for All (SEF4ALL) initiative of the UN Secretary General, the Caribbean Centre for Renewable Energy and Energy Efficiency and through the Caribbean Community Centre for Climate Change. The Alliance of Small Island States (AOSIS) statement at the end of the last round of the The climate change challenge Intergovernmental Panel on Climate Change The United Nations (UN) Global Conference (IPCC) negotiations in June 2014 stressed on Small Island Developing States takes place the need for funding, “finance is an integral in Samoa during September 2014. The theme building block of the (IPCC) 2015 agreement. of the Conference is Partnerships - The 2015 agreement MUST contain Cooperation for sustainable development. commitments by developed country Parties This in the context of the UN’s post 2015 and provisions to ensure scaled-up, adequate Development Agenda with new Sustainable long term, predictable, new and additional Development Goals (that replace the finance to support mitigation and adaptation Millennium Development Goals). to the adverse effects of climate change in It is 20 years since the first SIDS meeting in developing countries”. Barbados in 1994 and the resultant Barbados Programme of Action that turned international The private sector can find new opportunities recognition to the special needs of SIDS as for investment but should also be concerned a subset of developing states and set the about the loss in competitiveness of regional SIDS’ agenda. Twenty years later many of goods the new low-carbon world. the problems then highlighted continue and are aggravated while targets set in 1994 Climate change and trade? remain largely unachieved. Caribbean exports will be less competitive in the global climate regime. The private The new global development discourse is sector lobby in the United States is pushing around SIDS taking leadership for sustainable Senate towards adoption of import duties on

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goods with a high carbon footprint to avoid giving imports into the US an unfair advantage over local goods that have been forced by government regulations to have lower levels of carbon in their manufacture. This means that though under the UN Framework Convention on Climate Change (UNFCCC) developing states were not obliged to reduce emissions, their manufacturers may have to pay for not doing so if their exports are to pass the border. Transport costs. The International Aviation Authority and the International Maritime Organisation (IMO) have been looking into ways to reduce transport fuel and emissions costs. One way is to impose carbon to deter long haul transport, encouraging persons to buy local and avoid transferring goods from across the globe. This is not good news for relatively distant island states’ export and tourism sectors. Interestingly some Caribbean states have voted in favour of increasing fuel costs in international shipping at the level of the IMO while China for example argues that taking the mitigation argument into the IMO is a way that developed states are reneging on the principles of common but differentiated responsibilities (CBDR) that they accepted at the level of the UNFCCC. Ecolabeling. As consumer sensitivity to carbon emissions increases, carbon ecolabels (that certify that the product’s manufacture, delivery and use have a low carbon footprint) will become more common- making Caribbean products and services- and Caribbean holidays- a less attractive option for Europe, Asia. Manufacturers should look for closer markets (in North and South American rather than Europe or further afield) to ply products and services and find ways to make greener products in the medium to long term. But… a word of caution on mitigation. SIDS’ greenhouse gas emission levels are insignificant (less than 1 percent of global emissions). Under the UNFCCC and in

Feature keeping with the common but differentiated responsibilities principle only developed states (Annex 1 Countries) commit to emission reductions. Green technology to reduce emissions is not always affordable for states with limited resources. China and India argue for mitigation on their own terms: they will not be forced to adopt mitigation targets because fossil fuels (often still cheaper than renewable energy sources and green technologies) are needed to develop their economies just as the developed countries did in the past. Caribbean policy makers should be savvy: support local

mitigation initiatives where they bring net benefits to their economies (reducing fuel import costs in non-petroleum producing countries â&#x20AC;Śprovided cheaper energy alternatives are available for example). The Samoa Global Conference on Small Island Developing States (SIDS) brings growing international recognition of the plight of SIDS in the face of climate change. Getting more financial help for individual climate change adaptation and mitigation projects is always a plus, but solving the systemic conditions that lead to the loss of global competitiveness should be a priority for the

private sector. Like China at the World Trade Organisation (WTO) and the IMO, the principled stance of SIDS on trade and the environment should be that CBDR should be applied to all market measures to reduce emissions- at global and local border. This would mean excluding our exports and imports from carbon penalising regimes while we aggressively find markets where delivery of our goods will have a lower carbon footprint. Is this a losing battle? Perhaps, but it throws light on another important way that SIDS are highly vulnerable to the (indirect and economic) effects of climate change. Contact â&#x20AC;˘ Vol.14 No.3 2014

Feature

The Cloud Wars By Atiba Phillips

ata is the life-blood of any company, or organisation. If a company were to lose its HR, newproduct research, accounting or customer data, this would represent a major blow to the company. It may even mean that the organisation may lose its place in the marketplace and be put out of business altogether. On a larger scale, data represents knowledge, ideas and innovations, all of which are the bases of competitiveness and sovereignty in the modern world. Data also represents intelligence. This is particularly interesting as it intersects with the concept of security intelligence, at the personal, organizational, as well as the national level.

This criticality and multifaceted-ness in terms of the utility of data has not been lost on the technology giants and leading governments of the world. As such, over the last decade, there has been an accelerating rush to put systems, infrastructure and business arrangements in place to enable the collation and harvesting of this information – this “new gold” or “new oil” of our global “new economy”. It’s being referred to in business language today as “the Cloud”. In response we are being offered new types of advertising, as well as ‘apps’ and information services that predict our requests and seek to proactively cater to our information needs, so that we, as consumers, can get on the bandwagon. We see companies like Google, Facebook, and others, actually giving away service for free so that they can get access to, and own our data.

technology’ (e.g. internet-enabled eye-ware, wrist-watches) as well as connected devices in the home (such as thermostats, security cameras and even refrigerators), we are collectively being encouraged to “upload the human experience” and share it via various “cloud” services which are now available. Think about it. If you don’t pay a company to use their service then technically, you are not their customer. What you are is their product; and your data – that you freely give – is what they sell to their clients. Who’s in the Market for Your Data? So who is it that is in the market for your data? The answers may surprise you. Advertisers yes; but foreign Governments are one of the biggest users of on-line data. More than 80 percent of online search, for example, is controlled by U.S.-based companies;1 as such, the world's data available to the US government. As a casein-point, US District Judge Loretta Preska recently in June 2014, ruled on a case ordering that Microsoft is compelled to hand over overseas e-mail, thereby over-throwing and over-riding considerations of foreign privacy laws. The ruling has the effect of requiring US-based tech giants to facilitate the bulk acquisition of data from foreign (and often friendly) states for intelligence purposes. It should be stated that Microsoft quickly appealed the judgment. The ruling follows one from an earlier lower court, in which U.S. Magistrate Judge James Francis in New York ruled that a search warrant can be applied outside the country.

personal e-mail and phone data of the President of Brazil as well as the Chancellor of Germany were being spied on. The German Chancellor recently expelled American intelligence personnel from Germany following the scandal, and it is now legend that the Brazil president cancelled a trip to the US where she was supposed to be a guest of honour at a State sponsored dinner, once the news broke3. Brazil subsequently passed a law to compel Facebook, Google and all companies to store data generated by Brazilians on servers physically located inside Brazil in order to shield it from the National Security Agency (NSA), as a requirement of stay. This stance by the US, however, is not new. Legislative and other arrangements to facilitate US tapping of foreign data have been in place for quite some time. Both the Surveillance Act and the Patriot Act specifically allow a US court or government Agency to order the handover of data on any person or organisation which in its opinion may constitute a threat to the US for any cause. Until now however, that data needed to reside in the US. An August 2013 study by a respected U.S. technology policy nonprofit, estimated the fallout from the NSA spying scandal could cost the U.S. cloud computing industry, which stores data remotely, to give users easy access from any device, as much as $35 billion by 2016 in lost business.

The US is not alone A Canadian news service on July 29, 2014, Further, with the proliferation of new tools These developments follow the revelations reported that, “A ‘highly sophisticated such as smartphones - but also with more of Edward Snowden and the infamous “wiki Chinese state-sponsored actor is responsible recent developments such as ‘wearable leaks” debacle in which it was alleged that for a recent data breach at the National Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Feature Research Council of Canada, according to Canada's chief information officer.”5 A July 10 2014 report states that Chinese hackers broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees who had applied for top-secret security clearances, according to The New York Times. Accusations of hacking by China and counterclaims of such activity by the U.S. government have strained U.S.-Chinese relations in recent times. BEIJING (Reuters) reports that China will investigate US providers of important IT products and services to protect "national security" and "economic and social development", the official Xinhua news agency said, amid a row over cyber spying with the United States. The State Internet Information Office was cited as saying that products that don’t meet security requirements will “no longer be allowed to supply products and services in China”.

From media sites for daily newspapers, to consumer goods businesses, and sometimes to banks, much of Caribbean data is either stored or backed–up in data-centres which are located in “the Cloud” in the USA. Additionally, a number of the services, including e-mail, that many of us use day-today are also provisioned by data-centers located in the US. Further, much of the network to network switching capability that we leverage, physically resides also in the US (at the Network Access Point of the Americas).

compelling business case, or sovereignty case, to invest in our own Caribbean infrastructure and internet governance arrangements so as to take greater control of our own destinies, as a Region. Many other Regions of the world have done it, including the EU, Asia Pacific, Japan as well as countries in the Middle East and Latin America. They have all put mechanisms in place to promote the continuity of the network arrangements in their Region, even if there were issues in other jurisdictions. The way the Caribbean interacts with the internet at the moment is precarious at best.

What this means is that a great percentage of the bits and bytes that represent our businesses, communications, financial transactions and daily activities either pass through or are physically stored in the US. While this topology may have been adopted initially for purposes of expediency – to leverage infrastructure that is already in place – we need to take a second look at the level of dependency which we have, and may have What are the implications for the Caribbean? in the future, on the internet. The Caribbean Most Caribbean content is stored in the US. must determine whether or not there is a

What if there were to be a dispute over communications between a Prime Minister, her Attorney General and the Leader of the Opposition – how would that be determined? Would a sovereign country have to send to ask Google what were the facts of the matter? How long would that take to resolve? – as high-level and consequential as that would be - 18 months? More? Surely that is a situation and a scenario that no Caribbean nation, or sovereign nation anywhere should condone.

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Feature

Public-Private Partnerships: Closing the Infrastructural Gap By Dave Seerattan (Lecturer at the IIR) ublic-private partnerships (PPPs) refers as any contractual relationship between a government agency and a private sector company to finance, develop and operate services or infrastructure for the public. The limited financial resources of governments in the Caribbean relative to need have meant that gaps have developed in public services and infrastructure over time and the private sector is increasingly looked to as an option to help fill these gaps - with PPPs seen as an ideal vehicle to facilitate this process. The increasing plethora and importance of private sector business associations and their activism in terms of influencing government policy have also helped build momentum for the use of PPPs in the region.

in education, health and security but is most popularly used to develop public infrastructure in areas such as transport, electricity and water infrastructure. There are also many different forms PPPs can take along the public to private sector spectrum ranging from licencing and regulation for mostly private sector assets to construction contracts for the development of new publicly owned infrastructural assets (See Figure 1).

Caribbean spending less on infrastructure relative to the past and, very importantly, relative to many countries with which it competes. The Caribbean has therefore fallen behind in infrastructure development.

This infrastructure deficit lowers the productivity and competitiveness of Caribbean firms leading to slower growth. The Caribbean Development Bank (CDB) (Public-Private Partnerships in the The public sector development of Caribbean: Building on early lessons. CDB infrastructure in the Caribbean has been beset 2014) has estimated that the Caribbean needs by problems such as cost overruns, poor approximately US $21.4 billion over the next quality and poor maintenance of assets. The 11 years to bring infrastructure stocks up to public sector investment programmes in the acceptable international standards. regions has therefore generally failed to Governments in the region would, however, deliver “value for money”. The traditional only be able to finance about US $10.8 billion public sector infrastructural development of this amount, leaving a financing gap of PPPs can be used to meet a variety of public programmes in the region have also led to about US $10.6 billion over the next decade. needs such as the provision of public services under-investment in infrastructure with the The majority of this infrastructural gap is in Figure 1: Common Types of PPP Arrangements

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Feature the electricity, transport and water and sanitation sectors, sectors critical to the competitiveness of Caribbean countries. Moreover, approximately 88% of current infrastructure investment in the Caribbean is done by the public sector with only 12% accounted for by the private sector implying that here is much scope for increased private sector participation in filling the infrastructure gap in the Caribbean.

Governments therefore need to know how PPPs can deliver value for money while avoiding common risks, and, very importantly, the kinds of projects and PPP models that allows PPPs to add more value relative to purely publicly developed assets. In the last 20 years private infrastructure companies have invested more than US $8.5 billion in 11 countries in the region, however, of these 95 projects only about half has been conducted through PPP arrangements. Only 7 of 11 countries have used PPP arrangements with the Dominican Republic and Jamaica being the major recipients. Most PPP investments have been concentrated in the electricity and transport sectors with a few in water and sanitation but none in the information technology sector (Caribbean Infrastructure Road Map: Public-Private Infrastructure Advisory Facility, World Bank 2014).

The largest absolute infrastructure gaps exist in Haiti, Jamaica, Belize and The Bahamas. This large infrastructural gap in the Caribbean in the context of weak fiscal accounts and high debt burdens implies that the public sector is unlikely to make up this deficit. The private sector will therefore have to play a much more important role in infrastructure development in the future with PPPs being used to deal simultaneously with fiscal constraints and the infrastructure deficit in The Caribbeanâ&#x20AC;&#x2122;s experience with PPP has the region. been mixed. Many PPP arrangements have PPPs can help deliver projects on time and operated for years providing high quality, within costs, provide capital resources, as well reliable and reasonably cost infrastructure as revenue streams which helps to fund proper services. The problems with PPP maintenance over the life of assets. It can arrangements when they have occurred in also lead to better designed infrastructure the region have centred on unexpected fiscal which facilitates longevity and lower operating costs, questionable value for money and costs by building in better environmental significant implementation delays. The main features, better drainage and resilience to reason for these problems has been because extreme weather events. On the other hand, none of the PPP arrangements were these arrangements have certain risks which implemented under a formal PPP policy include a lack of competition if there is direct framework and therefore did not benefit from negotiations rather than a bidding process for the appropriate institutional framework and projects, hidden fiscal costs especially if management that comes with these government negotiators do not have expertise frameworks, in large part because on projects and flawed risk sharing between governments are often unwilling to fund these the government and private sector. systems.

Addressing these institutional weaknesses would go a long way in increasing the efficiency of PPP programmes. This is important since the World Bank PublicPrivate Infrastructure Advisory Facility has identified approximately 33 potential future PPP projects in the region valued at US $2 billion which would go some way in addressing the infrastructure deficit in the Caribbean if properly managed. Another major problem has been the fact that investors are usually interested in large PPP projects which precludes the development of smaller scale projects. One solution to this is to use a regional approach to PPP especially in areas such as energy generation and supply, air transport and the telecommunications infrastructure where a regional approach might be appropriate. Regional solutions have, however, proven to be very time consuming and difficult to implement especially in the recent past. In any case, for this to work a regional architecture to facilitate regional PPPs (institutional, legislative and funding) would have to be put in place and this should be more of a longer-term goal. To fully exploit the potential of PPPs to close the infrastructure gap in the Caribbean will require the development of the institutional framework both at the national and regional level to guide PPP development, the support from multilateral institutions such as the the World Bank, the Inter-American Development Bank and the Caribbean Development Bank both in terms of technical assistance and funding and a focus on regional PPPs in sectors such as telecommunications, energy and air transport. Contact â&#x20AC;˘ Vol.14 No.3 2014

Feature

Geopolitics: Old or New Dynamics in the Global System? By Georgina Chami (Research Fellow at the IIR)

ver the last few years, there have been numerous discussions on the new form of geopolitics emerging which threatens to unseat the old model of a Western system influenced by hard power and State supremacy. In the aftermath of World War II, the world was highly influenced by the dictates of the superpower rivalry (Cold War). This rivalry reflected the standoff between the US and USSR over ideological beliefs and military capabilities. At that time, decision-makers and diplomats conditioned their policies and views in sync with the bipolar structure in place. Emphasis was also placed towards hard power with an overwhelming military build-up, threat of nuclear warfare, and non-intervention in domestic affairs of a State. Both superpowers used the old ‘carrot and stick’ method to persuade States to align with them in order to safeguard their sovereignty and guarantee their survival. This was reinforced through the proxy wars which at times almost climaxed into ‘hot war’ between the two superpowers as observed in the Cuban Missile Crisis (1962) and Korean War (1950-53).

Bretton Woods Institutions also reflected the inequality among States. For example, the Heads of the Bretton Woods system (IMF and World Bank) is always appointed from Europe and the United States respectively. Presently, Ms. Christine Lagarde (France) heads the IMF and Mr. Jim Yong Kim heads the World Bank. Similarly, within the UN Security Council, we observe the veto power is granted only to the Permanent Five members - United Kingdom, France, US, USSR and China. These countries were the victor nations in World War II. With the end of the Cold War came systemic changes such as the end of bipolarity, rise of non-state actors, diminishing eminence of the State, predominance of intrastate conflicts and the hegemonic power of the United States. But the Old Geopolitics continued to survive despite these changes. The United States continued to influence peace and security initiatives. This also heralded a new dawn for the UN Security Council which became functional again to collectively act on peace and security matters. This was seen with the Iraqi invasion of Kuwait in 1990. This incursion was condemned by the UN and action taken to quell it. This was a new stage of the Old Geopolitics that interpreted peace/security almost exclusively by reference to the distribution of hard power capabilities among states. The Old Geopolitics, remained Westernized and this remains evident in the decision-making processes of the more powerful States in the in the global arena. It is this interplay between the Old and New Geopolitics that continues to characterize the contemporary global landscape and peace initiatives.

This global political landscape emerged out of the balance of power system which existed for years prior and used to maintain peace among sovereign States. ‘Balance of power’ referred to the power relationships in the European state system from the end of the Napoleonic Wars to World War I. Then, peace was defined as an absence of war between States. Within this framework, some features became normative: primacy of the State, uneven hierarchical system among sovereign states, coercion and ideological war (communism vs capitalism). Thus, the old Geopolitics was war-based: triumph in conflicts, advanced weaponry and military With the onset of globalization and superiority. Moreover, international consequently the growing interdependence organizations such as the United Nations and between States, international community is Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

faced with an upsurge of issues which are transnational in nature. Some of these ‘new’ issues are insecurities across the social, economic and political spheres. Evidently, they have are not ‘new’ but at the end of the Cold War, are now tabled for global discussions. These include increased ethnic and sectarian violence, rise in transnational organized criminal activities, refugee crises, political uprisings to name a few. The Middle East and Ukraine crises are illustrations of refugee and political crises. As a result, there is growing support for protecting vulnerable peoples against atrocities of despotic governmental regimes, insurgent groups and terrorist networks. For example, the US ‘War on Terror’ was to avenge the 9/11 attack and address terrorism globally. Likewise, there is growing need to comprehend how to sustain peace while simultaneously ensuring development in the 21st century. The nature of contemporary crises has seen peace evolved into a multidimensional process. Thus, these demands can only be resolved by exploring a blend of both soft and hard power (smart power). Therefore, it is the engagement of both military force and all forms of diplomacy. Parallel to these developments, is the emerging powers within the global system. With the rising powers such as the BRICs nations, we are witnessing a new type of Geopolitics. State superiority is no longer based purely on military capability but economic endowments. Consequently, this is reflected with the expansion of the Group of Seven to Eight and now Group of Twenty. Emerging powerful states: Brazil, China and India have different cultural, political, and socio-economic experiences. They do not share the same concerns as the developed countries and are advancing their own ideas and agenda for the global system. Likewise,

Feature we see States forming alliances and blocs in an attempt to survive in an ever shrinking global system and not live up to the expectations of multilateralism as enshrined in the United Nations. Examples include NAFTA and European Union. It is clear that the old order dominated by the United States and Europe is giving way to one increasingly shared with non-Western rising states.

resources to European countries and the USA which allowed their societies to become advanced economies quickly. But as a region, more work is required on identifying who we are, what makes us unique and how we can become power players in these forums. With diminishing empathy for less developed countries and more so for remittances, foreign aid and ‘handouts,’ it is crucial that CARICOM revisit this area. We must adopt Consequently, in an increasingly globalized a proactive role in these processes and provide world, the CARICOM region is presented insightful and intellectual input to influence with opportunities and challenges for and shape these processes. enhancing trade and overcoming socioeconomic challenges. Caribbean leaders For Caribbean leaders, the time has come for must become a part of the decision-making them to derive development solutions. In this tables at international forums such as the IMF, regard, we can better appreciate solutions to G20, United Nations and World Bank. our problems as opposed to imported ideas Decisions within these Institutions may have and perceptions that are ahistorical and a direct or indirect impact upon their acultural to our circumstances. In addition, economies. Drawing from history, CARICOM we must attract and stimulate our people both has played a crucial role in providing natural abroad and locally who possess the ingenuity

to facilitate its growth. Since these factors are not in place, then we provide no rationale to the most powerful countries globally to hear our concerns and or even consider them seriously. Perhaps, we should shift our focus towards rethinking how to fashion our destiny, from the inside out, while not dismissing the supreme value of finding relevant global partners to harness mutually beneficial interests. With the increasing interplay between the Old and New geopolitics, CARICOM must lobby in its outreach efforts, hosting consultative meetings with civil society, business leaders which would incorporate the interests and opinions of both excluded countries and non-state actors. In this regard, CARICOM must explore initiatives at both the regional and international levels that can increase its visibility and power to be a global trading partner.

Corporate Social Responsibility The Corporate Social Responsibility (CSR) Committee was established in November 2007 as one of the Chamber’s special focus committees providing support and assistance in areas relevant to its members. The Committee’s mission is to build a platform for learning, advocacy and technical assistance that enables every business to be an active partner in creating a socially and environmentally sustainable Trinidad and Tobago.

The Committee’s mandate is to serve the learning needs of its members, as well as to provide advocacy and technical assistance using practical, realistic and adapted approaches that enable these organisations and individuals to maximise the efficiency and effectiveness with which they undertake CSR activities. This approach encompasses working not only with members, but engaging other Chambers, civil society, public sector and international organizations.

Corporate Social Responsibility is a commitment by companies to contribute to sustainable development by working with employees, their families, other organisations, communities, government, and the society at large, to improve the quality of life and the environment in ways that are good for both business and social development.

Objectives: • Learning The CSR Committee provides members and other stakeholders with access to relevant CSR related course materials to assist in developing an understanding and appreciation of CSR, both conceptually and in practice. This enables members to better incorporate

CSR into their organisations and foster more responsible business practices. • Advocacy The CSR Committee provides a forum for advocacy with key stakeholders to facilitate an enabling environment that encourages private sector investment in CSR related activities. • Technical Assistance The CSR Committee is working with its members through outreach forums, workshops and individual meetings to assist in the implementation of CSR activities and initiatives that are strategic in nature, in line with their core business practices and focused towards sustainable development.

Contact • Vol.14 No.3 2014

Feature

Trade Balance CARICOM-Cuba 2004-2013 By Nazma Muller This article is based on an interview conducted by our correspondent with Dr. Jacqueline Laguardia-Martinez, lecturer at the IIR

Courtesy Dr Jennifer Laguardia Martinez - Based on International Trade Centre data. http://comtrade.un.org/data/ CARICOM’s relationship with its Spanishspeaking socialist neighbour Cuba has not advanced as much economically as it has in the field of foreign policy. Although Cuba is not a member state of CARICOM, the relationship between the island and the regional bloc has advanced in the last decades. CARICOM’s 15 members - the majority of whom are Small Island Developing States and Cuba share similar challenges and promote their common interests in international forums. Triennial summits, together with a sustained cooperation in health and education, among other sectors, illustrate the positive relationship that has blossomed between Cuba and its Caribbean neighbours. CARICOM has denounced the United States’ economic sanctions against Cuba and has voted repeatedly in the United Nations General Assembly to end the embargo. An existing Trade and Economic Cooperation Agreement between Cuba and CARICOM is being applied on a bilateral individual basis with countries that have ratified it. Notwithstanding the dormant status of the trade agreement, trade between CARICOM and Cuba has expanded in favour of CARICOM since 2000, according to Dr. Jacqueline LaGuardia Martinez, a Cuban lecturer at the Institute of International Relations at the University of the West Indies in St. Augustine.

in 2008. The negative effects of the global economic crisis hit the trade exchange and declined in 2009, with a partial recovery in 2010 when exports reached US $25 million. In 2011 the trend in decreasing exports reoccurred and attained level s similar to those of 2009. The Cuban policy of limiting imports, which has hardened in recent years - together with the global economic crisis have contributed to a significant lessening of Cuban imports from the region. CARICOM’s imports from Cuba, on the other hand, show a peak in 2007, equivalent to US $107 million, followed by a steady decrease, with a partial recovery in 2009. From 2010 the contraction has sharpened and imports have not surpassed US $10 million ever since. The trade flows between Cuba and CARICOM members is of less significance if compared with the trade that they share respectively with other partners. CARICOM’s main trade partners are the USA, European Union and China, while Cuba’s main trading partners are Venezuela, China, Canada, Spain and Brazil. The value of that trade is much higher than its current exchange with CARICOM.

Cuban trade within the Caribbean region is concentrated in a few countries - Trinidad and Tobago, Jamaica, Belize, Barbados, CARICOM exports to Cuba climbed from Guyana and Suriname, with T&T accounting US $13.7 million in 2000 to US $46 million for the biggest share. The main exogenous

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factors that block the increase in trade exchange and investments flows between Cuba and CARICOM, besides the economic crisis worldwide, are the high cost of transportation (both sea and air); legal and institutional differences; insufficient finance and credit mechanisms; and the 54-year-old United States blockade against Cuba. These factors are more important obstacles than the language barrier. Hay problemas (There are problems) Cuba’s unsatisfactory recent economic performance has negatively affected its export capacity which has, in turn, prompted changes on the island. In 2010 President Raul Castro announced a slew of economic reforms, including 18 new categories of independent employment, which had been illegal since 1959. Real estate agents, auto body workers and home builders have come out of the shadows in Cuba's expanding private economy. The number of approved independent employment activities has risen to 200. In all, more than 430,000 private employment licenses have been issued since the reforms, and 436,342 independent workers are currently operating, according to the country’s State newspaper, Granma. However, many educated professionals such as lawyers, health care workers or scientists continue to work for the state. The new rules bar the resale of imported goods such as clothing. Also prohibited will be the resale of goods bought in state-run retail stores.

Feature Travel restrictions by the US and Cuban governments over the past five years also eased, which hundreds of thousands of Cubans and Cuban-Americans quickly cashed in on by flying to places like Miami and Spain to bring in nearly $2bn (£1.2bn) of products from razor blades to rice cookers – in their luggage. But in early September the Cuban government enacted new rules that sharply limit the amount of goods that can be brought into the country in luggage, and shipped by boat from abroad. The government said the restrictions are meant to curb abuses that have turned air travel in particular into a way for “mules” to illegally import supplies for black-market businesses and legal private enterprises, which are supposed to buy their supplies from the state. However, the quality of Cuban goods is not the best, and most Cubans prefer foreign-made commodities. Travellers are now only allowed to bring in up to four car tyres; 10kg of detergent; one set of hand tools; 24 bras; two pieces of baby furniture; and two flatscreen televisions. Cuban customs also bars passengers from bringing

in items worth more than US $1,000. Rather than examining receipts, customs agents are given a long list assigning pre-set values to certain goods ($250 for a video-game console, for example.) Those prices rise sharply under the new rules, making it far easier to reach that $1,000 limit.

to intensify the Cuba-CARICOM relations are only partially employed. Both CARICOM and Cuba share economic vulnerabilities arising from similar economic structures and dependence on external trade, she pointed out. Opportunities for trade and economic cooperation exist beyond trade in goods.

The new rules also increase the duties paid on goods shipped from abroad, which is another major source of foreign merchandise for ordinary Cubans with family and friends living in Miami.

There is potential for expansion of trade in services, which accounts for the most dynamic sectors in CARICOM. Regarding professional services, it could be useful to establish mutual recognition agreements since many CARICOM professionals were trained in With foreign reserves dropping sharply over Cuba and are already fluent in Spanish and the past two years as Cuba tries to pay off familiar with the culture, she pointed out. sovereign debt and make itself a more attractive destination for foreign investment, “Opportunities also exist for further expansion the government is desperate to reduce the of investments in tourism, especially through flow of goods and push for cash remittances, expansion of existing marketing arrangements which are subjected to hefty government fees. for multi-destination tourism and the Limiting informal imports also would development of health tourism and sports presumably help boost business in state- tourism joint initiatives,” said LaGuardia controlled stores. Martinez. “The existence of Cuba-CARICOM agreements should be fully utilised in order Opportunities for CARICOM to enhance trade relations.” In spite of the difficulties, it is the opinion of Dr LaGuardia Martinez that some possibilities

Contact • Vol.14 No.3 2014

Are you looking for an ideal location to host your Private Meetings, Training Sessions, Product or Media Launches, Christmas Cocktails or even your Wedding Receptions?

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Duncan Campbell Meeting Room

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Events have become the hallmark for many Corporate Communications and Marketing Divisions and finding that ideal venue is perhaps one of the most important aspects to the success of all activities. At the Trinidad and Tobago Chamber of Industry and Commerce we pride ourselves in providing rooms for small and medium sized functions. Our venue, at Columbus Circle, Westmoorings, has been rented by many members and non-members.

Named after the Chamber’s first President, our Leon Agostini Conference Hall, accommodates Theatre seating up to 200 persons and Banquet seating of 180 (rectangular tables) or 120 (round tables). Our Duncan Campbell Meeting Room can accommodate Theatre seating up to 40 persons and Round table seating up to a maximum of 16 persons. Our special offer to weekend clients is the WM Gordon Gordon Board Room which accommodates up to 14 persons in comfortable executive style.

As a “One Stop Shop” we provide complete services - Wheel-chair access, Parking, High Speed Internet access, Catering, Audio and Video, all in our air- The Chamber’s staff stands ready to assist and will work with you in ensuring the conditioned facility. Our rates are among the lowest, given our secure and scenic success of your event. Upon request we will assist with the coordination at a location. As a member of the Chamber your rental fee is discounted by 10%. reasonable fee.

We invite you to contact Eustace Pierre at 637-6966 ext. 286 or epierre@chamber.org.tt so that a tour of our facilities can be arranged. Thank you for your continued support and we look forward to welcoming you.

Feature

Migration & Development By Dr. Annita Monotute (Lecturer at the IIR)

p to the end of the 1990s, international migration was a marginal issue on the global development agenda and the subject of little international cooperation. This is illustrated by the silence of the Millennium Development Goals on international migration. This stemmed from divisions between developed and developing countries on the issue; developed countries viewing irregular migration from the South as a threat to their territorial sovereignty while developing countries felt their economic sovereignty was under threat from the brain drain to the North (see Jonathan Crush “Between North and South: The EU-ACP Migration Relationship, CIGI Papers No. 16 2013).

From the 2000s, progress began to take place, with large numbers of initiatives at various levels and in different forms, for cooperation on migration, thereby increasing the prominence of the issue on the global agenda. Although some elements of migration as a threat remain, there is increasing consensus that migration can be used as a tool for development (see Jonathan Crush “Between North and South: The EU-ACP Migration Relationship, CIGI Papers No. 16 2013). The serious consideration being given to migration in the post-2015 development agenda discussions, is evidence of the progress being made in this regard. Although progress is being made, debate continues on the migration-development nexus. In the 1990s, migration was seen to result from lack of economic opportunities and if under- development (root causes of migration), was addressed, the ‘problem’ would be solved. This has been used as a tool by some developed countries to promote the migration-as-threat approach and to lessen

the number of migrants to the North. However, research suggests that the link between migration and development is more complex and nuanced. For instance, there is not always a correlation between lack of economic opportunity and migration; “and migration is not necessarily a bad thing for development,” (Jonathan Crush, Inside the Issues 2.19 - International Migration and Development, February 22, 2012 (podcast). In this article we offer a two part argument: migration presents opportunities, some of which are disguised as risks; and the challenges associated with migration are sometimes about one’s perspective and frame of reference as well as the management of migration and other factors, rather than migration itself. It provides a brief overview of recent global and Caribbean migration trends; discusses the benefits of migration and highlights that the risks are not inherent to migration and in some cases, risks are disguised opportunities. We conclude with the way forward for migration policy and practice. Recent migration figures reveal that there has been a phenomenal rise in international migration and a large percentage are women; most migrants are of working age and SouthSouth migration is as prominent as NorthSouth migration. In 2013, there were 232 million people living abroad, compared to 175 million in 2000 and 154 million in 1990, most of whom (74%) are of working age; and women account for 48% of the total migration figures.1 South - South migration outweighs North South migration, albeit slightly; in 2013, South - South migration totaled 82.3 million compared to 81.9 million for North South migration.2

Caribbean receives large numbers of foreign workers, mainly from within the region; CARICOM nationals accounting for just over 50% of these flows.3 Migrants are also moving to North America and other countries and about 10-40% of the labour force has moved to OECD countries since the 1960s, many of whom are highly skilled and are women. Notwithstanding the nuances, it is generally acknowledged that properly managed and approached strategically, migration could have tremendous benefits for migrants4, business and the economy. 1. Migrants can fill gaps in the labour force of receiving countries and provide an outlet for surplus labour. Unskilled workers can take up jobs sometimes locals do not want to perform and skilled workers could provide expertise and innovative ideas.5 Migration also could relieve sending countries of surplus labour, where this exists. 6 2. Migrants could help transfer skills and knowledge. In cases where opportunities are not available or limited in the home country, returning migrants who acquire new skills and knowledge abroad apply and transfer their newly acquired skills and expertise to the business environment. 7

3. Migrants can contribute to economic development in both receiving and home country. In the case of the former, migrants could do so through “spending, investment and tax contributions;” and skilled migrants could “stimulate business development and innovation.” For the latter, remittances could fund development projects. 8 Remittances are a significant source of revenue to For the Caribbean, both extra-regional and developing countries, outstripping Official intra-regional migration are important. The Development Assistance (ODA). Remittances

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Feature to developing countries increased from $404 billion in 2013, a 3.5% jump from 2012 and is projected to increase to $436 billion in 2014 and $516 billion in 2016.9 Also, skilled returning migrants tend to initiate “entrepreneurial activity” which attracts additional FDI and “creates a virtuous cycle of economic growth.”10 4. Migrants can help firms become globally competitive by providing “a cost-effective workforce where low-skilled labour is required or by increasing cultural diversity and with it the potential for new ideas.” Seventy one per cent of global corporate leaders thought that they gained a competitive edge because of foreign workers.11 5. Migrants can generate the demand for new products and services and consequently new business opportunities (including SMEs), in both sending and receiving countries, notably, in financial services, telecommunications, travel and the food and beverage sectors. Because of their culturally diverse tastes,

migrants are a good market for global companies.12 The benefits presented above, are in essence, turning risks13 into opportunities; brain drain, for example, can instead be framed as opportunities for revenue generation, skills and knowledge transfer and new business ideas; low skilled workers are not a burden on social services if their contributions are considered and properly managed; Arguments about poor working conditions, threat to employment for nationals, discrimination and exploitation are sometimes related to inadequate planning, poor attitudes, ignorance about migration and suspicion of migrants, having little to do with migration itself. The way forward is for migration policy to be situated into the global debates and frameworks which are moving towards the migration - as -development approach, as well as strategic planning by both the receiving and sending country in collaboration with relevant stakeholders to make migration a genuine tool for development.

1 2 3

5 6 7 8 9

10 11 12 13

UN, International Migration, Department of Economic and Social Affairs, Population Division, September 2013. ibid Andrew Pienkos, Caribbean Labour Migration: Minimizing Losses and Optimizing Benefits, Port of Spain: ILO Subregional Office for the Caribbean, 2006. Statistics for the Caribbean are not as recent as global migration trends. For the purpose of this article a migrant refers to a migrant worker - “a person who is to be engaged, is engaged or has been engaged in a remunerated activity in a State of which he or she is not a national.” Article 2 (1), International Convention on Migrant Workers, 2003. International Business Leaders Forum (IBLF), Business and Migration: From Risk to Opportunity, March 2010 ibid ibid Ibid, p. 6. World Bank, Migration and Remittances Team, Development Prospects Group, Migration and Development Brief, April 11, 2014 ILBF, 2010, p. 6. ibid ibid The risks were drawn from the IBLF, 2010

Contact • Vol.14 No.3 2014

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Feature

What every business person should know EU launches negotiations on environmental trade agreement The EU, together with 13 other WTO members (Australia, Canada, China, Costa Rica, Chinese Taipei, Hong Kong (China), Japan, Korea, New Zealand, Norway, Switzerland, Singapore and the US) have formally opened plurilateral negotiations in the WTO on liberalization of trade in so-called ’green goods’. At the first stage, the members of this initiative will aim to eliminate tariffs or customs duties on a broad list of green goods that help clean the air and water, help manage waste, are energy efficient, control air pollution, and help generate renewable energy like solar, wind, or hydroelectric. At the second stage, the negotiations could also address non-tariff barriers and environmental services. The EU is particularly interested to reduce barriers to trade in services ancillary to goods exported. E.g. to produce wind energy, it is not enough just to buy the wind turbine: companies also need to have access to the maintenance and engineering services necessary to keep it running smoothly in the world of global value chains. TRADE SHOWS AND EXHIBITIONS United Kingdom National Wedding Show, London, Birmingham and Manchester 26th-28th Sept, London; 3rd-5th Oct, Birmingham; 11th-12th Oct, Manchester 2014 The UK'S largest wedding event presents an opportunity to promote your products and services directly to thousands of potential customers, take bookings, build relationships and create tailor made solutions to shape each bride’s special day. 63% of visitors marry in a venue/location as opposed to a church. For further information please contact: Alex Butler Sales Manager Email: alex.butler@oceanmedia.co.uk Tel: +44 (0) 207 772 8319

Website: http://www.nationalweddingshow Please contact for information on Exhibiting .co.uk/page/view/exhibit and costings: innovateuk@ukti.gsi.gov.uk Contract Management for Ship Website: https://www.events.ukti.gov.uk/tsbConstruction, Repair and Design Course i n n o v a t e / e v e n t - d a y / i n n o v a t e - u k - 1 / - 7th-9th October, 2014 Germany This conference will provide a forum for World Energy & Water - 10th-12th materials manufacturers, shipbuilders, repair February, 2015 yards, contractors, operators and owners, coating manufacturers, and classification Event open to manufacturers, distributors and societies. traders the products and services from the field of the electricity, gas and water industries, For further information: energy technology & energy efficiency. It is Email: conference@rina.org.uk the leading sectoral meeting place in the W e b s i t e : c o n f e r e n c e @ r i n a . o r g . u k European energy and water industries with over 20,000 visitors in 2012. The Annual Hotel Conference, Manchester - 15th-16th October 2014 For further information: The UK's leading event for the independent, Christian Forstmann boutique and consortium hotel owners, +49 201 1022-110 operators and managers +49 201 1022-333 forstmann@conenergy.com If you are interested in participating as a delegate, speaker or sponsor please Denmark contact emily.newman@theahc.co.uk Copenhagen Food Fair - 22 - 24 February Website: http://www.theahc.co.uk/ 2015 A 3 day event showcasing products like meat Innovate UK - 5th-6th November, 2014 and meat products, dairy products, canned This year’s event includes an international and frozen food, fast food or convenience trade and investment programme to help foods, bake,-off, fish and shellfish, fruit and visitors capitalise on the UK’s reputation as vegetables, bakery products or confectionery, a global business partner. Innovate will chocolate and candy, coffee, tea and spices, feature intensive seminars, workshops and wines and spirits, ber and soft drinks, hotel one to one meetings to help identify new and restaurant fittings, conference fittings and export and partnership opportunities. equipment, bar and pub fitting and equipment, shop fitting and decoration, music, sound & Organizations in markets including Bahrain, lighting, entertainment machines, vending & Canada, Chile, China and France have already coffee machines, clothing & uniforms, office expressed interest in attending innovate to administration & IT in the food and beverage collaborate with UK companies. Aerospace, industry. Communications, Electronics and IT Hardware, Energy, Environment, Food and For further information please contact: Drink, Healthcare and Medical, ICT, Mass Senior Exhibition Coordinator Merete Transport, Ports and Logistics, Power, Bartholdy - Exhibition Secretariat Railways, Renewable Energy, Software and Phone: +45 3247 2207 Computer Services Business to Business E-mail: mba@bellacenter.dk (B2B). Website: http://www.copenhagenfoodfair.dk/

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Finance & Economy

Economic and Financial Statistics Domestic Indicators Table 1: Summary of Economic Indicators INDICATOR

2013p

2012

2011

Real Sector Activity Real GDP (y-o-y % change)

-0.5*

1.2

-2.6

Energy (y-o-y % change)

-4.1*

-1.0

-3.9

1.9*

1.9

-0.5

Headline Inflation (y-o-y % change)

5.6

7.2

5.3

Headline Inflation (% average)

5.2

9.3

5.2

Core Inflation (% average)

2.4

2.5

1.7

Unemployment Rate (% average)

n.a.

5.0

4.9

Non Energy (y-o-y % change)

Source: Economic Bulletin January 2014, Central Bank of Trinidad and Tobago

*Year-on-Year Change for QIII 2013

Regional Indicators COUNTRY

RANK

SCORE

Panama

4.43

Costa Rica

4.42

Barbados

4.36

Jamaica

3.98

Trinidad and Tobago

3.95

Dominican Republic

101

3.82

Guyana

117

3.65

Venezuela

131

3.32

Haiti

137

3.14

Source: The Global Competitiveness Index 2014-2015

International Indicators COUNTRY

RANK

SCORE

Switzerland

5.70

Singapore

5.65

United States

5.54

Finland

5.50

Germany

5.49

Japan

5.47

Hong Kong SAR

5.46

Netherlands

5.45

United Kingdom

5.41

Sweden

5.41

Source: The Global Competitiveness Index 2014-2015

Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt

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For more information contact: THE DISPUTE RESOLUTION CENTRE, Ground Floor, Trinidad and Tobago Chamber of Industry and Commerce Building, Columbus Circle, Westmoorings. Tel: (868) 632 4051 or 637 6966 Fax: (868) 632 4046 or 637 7425 E-mail: drc@chamber.org.tt

Finance & Economy

Economic Outlook International The International Monetary Fund (IMF) in its most recent World Economic Outlook (WEO) indicated that the global recovery continues but at an uneven pace, and that downside risks remain. In the United States, earlier optimism about growth prospects has moderated following an unanticipated sharp contraction in the first quarter of 2014, even though a rebound in activity is already underway. Growth is improving for some economies in the Euro Zone, while the economic recovery in the United Kingdom appears to be sustainable. Growth in most emerging markets, including China, remains at a slower pace than before, partly due to softer external demand. Domestic Results from the Central Bank’s second Business Confidence Survey conducted in the second quarter of 2014 in conjunction with the Arthur Lok Jack Graduate School of Business, showed that almost 80% of firms expect to increase their production levels over the next six months. More firms were also confident that the local economy would improve over the next 12 months than in the first survey. On the other hand, 66% of all businesses expect their financial position to improve in the next 12 months, down from 75% of firms in the first quarter of 2014.

Inflation Core inflation remained relatively stable in the first half of 2014. On a year-on-year basis, core inflation stood at 2.5% by the end of June 2014. Headline inflation slowed to 3.0% while food inflation eased for the third consecutive month to 3.0% in June 2014. Rising consumer demand, higher Government spending and second round effects from the recent increase in cement prices could help to accelerate inflationary pressure later in the year. Monetary Policy Excess liquidity in the banking system fell below $5 billion in the first three weeks of July 2014. Commercial banks’ excess reserves dropped to a daily average of around $5.0 billion over the period July 1-21, 2014 from a little over $7.5 billion in June and close to $8.5 billion in May 2014. In June 2014, the Central Bank issued a seven-year, 2.2% coupon, liquidity sterilisation Treasury bond, which removed approximately $1.0 billion from the financial system. Central Bank’s support to the foreign exchange market in July also indirectly withdrew $1.1 billion from the system. Source: Monetary Policy Announcement (July 2014) , Central Bank of Trinidad and Tobago

The Chamber’s “CONTACT with the Chamber” radio series The Chamber's "CONTACT with the Chamber" radio series is a five minute programme which airs every Tuesday at 7:25 a.m. on the I95.5FM morning show. This programme is voiced by the CEO of the Chamber, Catherine Kumar and is one of the means by which the Chamber communicates with members and the public at large. The series focuses on business-oriented subjects, social responsibility and other issues affecting our country.

views on matters affecting our community. They are: First.com for July, Strictly FX Ltd for August and Debt Recovery Administrative Services Ltd for September 2014.

We also open our doors to all members interested in coming on board as short-term sponsors of “CONTACT with the Chamber”, for packages of one, two or three months. Sponsorship is at a cost of TT $900.00 per programme. Your organization will be credited on I95.5FM and recognized through The Chamber wishes to thank the most recent other communications produced by the sponsors of its programme which has made it Chamber. possible for us to continue expressing our

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

For more information on sponsorship and branding opportunities please contact: Sherise Stewart, Membership Assistant, Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle Westmoorings P.O Box 499 Port of Spain. Tel: (868) 637-6966 Ext. 1251 Fax: (868) 637-7425 Email: sstewart@chamber.org.tt Website: www.chamber.org.tt

Finance & Economy

Half Year 2014 Review Local Market Summary For the First Half of 2014 (HY14), both the Composite and Cross Listed Indices posted declines while the All Trinidad and Tobago Index closed the six month period higher. The Composite Index slipped 1.56 per cent or 18.46 points to close the half year period at 1,166.59, the All Trinidad and Tobago Index advanced 0.96 per cent or 19.19 points to 2,012.91 and the Cross Listed Index fell 15.17 per cent or 7.50 points to end HY14 at 41.93. In the Second Quarter (Q214) alone, the Composite and Cross Listed Indices registered declines of 0.40 per cent and 10.06 per cent respectively and the All Trinidad and Tobago Index rose 1.29 per cent.

$592,944,512.13 in HY14. Comparing Q214 on Q213, despite the significant decline in trading activity, the value of shares traded was up 10.35 per cent from $240,188,959.06 in Q213 to $265,054,911.85 in Q214. National Commercial Bank Jamaica Limited (NCBJ) was the volume leader in HY14 accounting for 44.78 per cent of the total volume traded with 22,356,176 shares crossing the floor. This was followed by Jamaica Money Market Brokers Limited (JMMB) with 8.53 per cent of the market or 4,259,283 shares changing hands. The third volume leader was National Flour Mills Limited (NFM), with 5.22 per cent of all trades or 2,606,462 shares changing ownership.

The major decline in HY14 was FirstCaribbean International Bank (FCI), which fell 23.08 per cent or $1.50 to end the six month period at $5.00. Following was Flavorite Foods Limited (FFL) which dropped 18.39 per cent or $1.51 to $6.70. First Citizens Bank Limited (FIRST) was the third major decline, down 13.07 per cent or $5.26 to $34.99.

On the TTD Mutual Fund Market, a total of Dividend Payments 5,745,790 CLICO Investment Fund (CIF) units traded in HY14 with a value of $125,956,651.77. CIF closed HY14 at $21.50, down 2.23 per cent or $0.49. In addition, 91,758 Praetorian Property Mutual Fund (PPMF) units traded with a total value of $312,257.00. PPMF’s price remained unchanged to close HY14 at $3.55. In HY14, there were 13 stocks advancing and 13 stocks declining. The top performer was L.J. Williams ‘B’ Limited (LJWB), up 38.46 per cent or $0.25 to close the period under review at $0.90. The second major advance was One Caribbean Media Limited (OCM) with a 24.43 per cent gain or $4.52 to end HY14 at $23.02. Next was Neal & Massy Holdings Limited (NML), rising 14.90 per cent or $8.94 to $68.95. The First Tier Market saw a 23.14 per cent increase in trading activity for HY14 with 49,927,173 shares traded compared to 40,544,540 shares in the comparable period in 2013. However, Q214 on Q213, volumes traded were down a substantial 43.60 per cent from 24,022,574 shares (Q213) to 13,549,385 in (Q214). When compared to the previous quarter (Q114), market activity fell 62.75 per cent from 36,377,788 shares. The value of shares traded rose a considerable 21.53 per cent from $487,902,783.84 in HY13 to

Highlights for the Second Quarter of 2014 June 2014 • Republic Bank confirmed that it, along with Ghana’s Securities and Exchange Commission, has been named as a Defendant in proceedings brought on behalf of HFC Bank in the High Court of Ghana. These proceedings seek an injunction to prevent Republic Bank from Contact • Vol.14 No.3 2014

Finance & Economy

continuing the process for a mandatory offer to all shareholders of HFC Bank Ghana. • 843,145 Ordinary Shares of GraceKennedy Limited were removed from the Company’s issued share capital effective Friday June 6, 2014, thus reducing the issued share capital to 332,477,565 Ordinary Shares. This withdrawal is pursuant to the “GraceKennedy Repurchase Programme”. • One Caribbean Media Limited (OCM) announced that on May 29, 2014 the Group acquired a 60% interest in a small, innovative digital media company. This acquisition represents less than 0.02% of OCM’s net book value. • National Enterprises Limited (NEL) has been advised by way of correspondence received on May 22nd, 2014 and May 23rd, 2014, from one of our investee companies, Telecommunication Services of Trinidad and Tobago Limited (TSTT), in which we are a 51% shareholder, of the status of a VOLUNTARY SEPARATION PROGRAMME (VSEP/VEERP) open to participation by all employees of TSTT. This offer closed on April 30, 2014 and 608 employees have applied under these plans. In accordance with International Accounting Standards, TSTT has made provision for the cost of this VSEP programme in its financial statements for the year ended March 31, 2014. The draft, unaudited financial statements of TSTT for the year ended March 31, 2014 indicates that the financial impact of the VSEP programme is a provision of approximately $650M Trinidad and Tobago (TT) dollars. Based on our 51% shareholding, NEL’s share of this provision will be $331.5M Trinidad and Tobago (TT) dollars for the year ended March 31, 2014.

through RBC Merchant Bank (Caribbean) Limited (RBCMB), to issue Fixed Rate Bonds in Trinidad & Tobago not exceeding the total aggregate amount of One Billion, Two Hundred Million Trinidad & Tobago Dollars (TT$1,200,000,000) Fixed Income Market Summary According to the May 2014 Monetary Policy Announcement released by the Central Bank of Trinidad & Tobago, headline inflation slowed to 3.30 per cent in April 2014 from 3.90 per cent as at February 2014. Core inflation, which excludes the impact of food prices, slipped to 2.60 per cent in April 2014 from 2.70 per cent in March. In June 2014, the yield on the 1-year Open Market Operations (OMOs) rose to 0.64 per cent from 0.55 per cent in May. The Central Bank has maintained the Repo Rate, the rate at which it lends to commercial banks, at 2.75 per cent. Key Rates

Energy Prices

Global Market Indices April 2014 • The GraceKennedy Group CEO, Don Wehby, has announced that subsidiary, First Global Holdings Limited (FGH), has entered into an agreement dated April 24, 2014 for the sale of its 100% shareholding in First Global Financial Services Limited (“FGFS”) to Proven Investments Limited (“Proven”), subject to regulatory approval with a transaction value of over J$3.05 billion. Proven will change the name of the company on completion of the sale. • Notice of Intent by Neal & Massy Holdings Limited (Neal & Massy or the Company), Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Jamaica Market Summary The downward trend of the equity market in Jamaica continued from Q114 into Q214 with the major benchmark, the JSE Market Index, ending HY14 lower than its opening value. For the six month period under review, the JSE Market Index declined 9,894.97 points or 12.27 per cent to 70,738.58. A total of 1,142,165,484 shares traded on the Jamaica Stock Exchange in HY14. This represented an increase of 76.17 per cent on the 648,330,697 shares traded in HY13. Comparing Q214 on Q114, market activity was down a significant 68.08 per cent from 865,794,267 shares traded in Q114 to 276,371,217 shares in Q214. The value of shares traded for HY14 amounted to J$5,781,042,380.11. The major advance for the half year under review was LIME, which increased 106.25 per cent or J$0.17 to close the period at J$0.33. The second major advance was Ciboney Group Limited (CBNY), up 60.00 per cent or J$0.03 to J$0.08. Hardware & Lumber (HL) followed, up 55.74 per cent or J$3.40 to end HY14 at J$9.50. For HY14, Pulse Investments (PULS) was the major decline, down 65.52 per cent or J$0.57 to J$0.30. Caribbean Cement Company Limited (CCC) was next in line, falling 28.57 per cent or J$1.00 to J$2.50. The third major decline was Supreme Ventures Limited (SVL), which dropped 28.06 per cent or J$0.78 to J$2.00.

Energy Update

The Battle for the Caribbean Gas Market By David Renwick, Energy Journalist HBM (Gold)

here is an enticing new market for natural gas emerging in the insular Caribbean and Central America, which, in liquefied natural gas (LNG) delivery terms, could total as much as 3.5 million tonnes a year in 20 states and territories.

This was followed by a feasibility study by another consultant, Castalia Ltd., released in May, 2014 and though the pre-feasibility report hinted broadly at what the authors preference was, Castalia came down firmly on the side of LNG. “We determined that LNG would be the best technical solution for creating a regional gas market,” it declared. “It is likely to be cheaper than the alternatives because it is a mature technology that is technically feasible for all the countries of emphasis.” A regional market for LNG, Castalia concluded, “...would lead to much lower fuel and electricity costs than continuing to depend on fuel oil.”

This is the estimate of Gasfin Development SA, a Luxembourg/UK company whose chief executive officer (CEO) is Roland Fisher and which has been in the forefront of developing such a trade in response to the anguished cries of regional electricity utilities who have had to face mounting bills for the heavy fuel oil (HFO) and light fuel oil (diesel) they currently use as a generation source. It would seem to be a no-brainer of the part of Caribbean utilities that they should ditch It has been estimated that gas could be oil in favour of natural gas. When a power provided at least at a 20-30% discount to oil, company is forced to charge its customers an which utilities agree would trigger the decision average of US $0.44 per kilowatt hour (kwh), on their part to make the switch. Though it as in Dominica or US $0.41 as in Grenada, would cost them some money to retrofit their (compare US $0.06 in Trinidad and Tobago, equipment, the medium to long-term fuel where the electricity system has long been savings – and fuel is one of the major costs gasified), principally because of the impact of power generation – are considered to be of fuel costs, then the incentive for switching more than worth it. should be obvious. Of course, there are other ways of delivering gas to a market – by pipeline is the one most extensively used in the world at large, with compressed natural gas (CNG) now being seriously pursued as another option. But as far as the Caribbean and Central America are concerned, because of its flexibility and historical reliability, LNG is regarded as the best delivery method. The Washington-based Inter-American Development Bank (IDB) engaged consultants to prepare an exhaustively detailed “PreFeasibility Study of the Potential Market for Natural Gas as a fuel for power generation in the Caribbean” in December, 2013.

The Caribbean and Central America are unlikely to be immune from that movement, especially since, as Castalia pointed out, “new advances in technology have made natural gas cheaper to transport – especially to smaller markets – and allow Caribbean countries to contract natural gas at a competitive price. Until now, most Caribbean countries have been too small to be able to contract natural gas economically.” Gasfin has never bought the argument against small markets and its “guiding premise,” as it says, is that “if the LNG infrastructure system is scaled to the right size for the market, then natural gas can be delivered efficiently, safely and economically to smaller markets.” Demand for LNG as low as 10,000 tonnes a year, which a 10MW generating unit would need, can be accomplished to the satisfaction of all concerned, the company insists. That would fit neatly into the requirements of places like Anguilla (13MW), Dominica (15MW), St. Vincent (19MW) and Grenada, Carriacou and Petit Martinique (26MW). Gasfin has actually been eyeing as its first targets territories with somewhat larger demand than that – specifically the French Caribbean departments of Martinique and Guadeloupe, where the power provider, Electricite de France (EdF), is in the process of switching its engines from burning HFO to natural gas and requires 400,000 tonnes of LNG a year for both locations.

The CARICOM Energy Policy (CEP), endorsed by regional governments in early 2013, also accords a key place to natural gas in power generation, since it is seen as the essential “bridging fuel” in the eventual transition to renewable energy (RE). Cynics doubt, however, that RE will take off as swiftly as the idealists would like and accept that natural gas will be the main alternative to oil The LNG will, of course, be shipped from for many decades to come. Trinidad and Tobago, where Gasfin, which has been working closely with two stateEven the Energy Information Administration owned firms, the National Gas Co. (NGC) (EIA) in the United States projects that global and its subsidiary, National Energy (NE), has demand for natural gas will grow from 117 set up a local company, Caribbean LNG. The trillion cubic feet (tcf) in 2012 to 132 tcf in partnership has also been joined by Martin 2020. Houston, former chief operating officer (COO)

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Update of international gas trader, the BP Group in London. Mr. Houston, who parted company with BG on less than amicable terms, has since set up his own firm, Parallax, which is described as “an integrated energy investment company with an LNG focus.” He will function as chairman of Caribbean LNG. For geo-political reasons, Caribbean LNG, whose plant is envisaged as 500,000 t/y in size, with the possibility of being doubled eventually, should be favoured as the gas source by most insular Caribbean states and even those in Central America (Panama and Honduras are both said to be in the market for LNG). But attractive pricing is probably likely to be the over-riding factor and the 2030% discount to oil, mentioned earlier in this story, could be the clincher. At US $16-18 per million British thermal units (mmbtu) for fuel oil in its gas price equivalent, the Gasfin CEO estimates that the price for gas itself could be between US $14-15 per mmbtu. Caribbean LNG plans to sell LNG on an FOB basis, so a small charge should be added for shipping.

LNG complex on the Gulf Coast, at Corpus Christi, Texas, for which three trains are envisaged, with overall design capacity of 13.5 million tonnes a year (t/y). If Cheniere does try to access the Caribbean market in a major way, it plans to use Corpus Christi for that purpose. As far back as 2011, it had already agreed a deal with a company called Basic Energy in the Dominican Republic, to supply it with 600,000 t/y of LNG, so it is already involved in the Caribbean market but whether it will go ahead with it is uncertain. 2. Canada’s Pacific Rubiales is establishing a 500,000 t/y barge-based LNG plant at Covenas, based on gas from its La Creciente field onshore. This is the first floating LNG facility under construction whose cargo tanks, ironically, have been designed by Gasfin subsidiary TGE Engineering. In case Colombia’s internal demand for gas needs to be satisfied in preference to exports, the barge, being built by Belgium’s Exmar, will also contain a re-gasification facility.

These are the potential competitors for Trinidad and Tobago in the regional gas trade as known to CONTACT at this time:

3. Shipping giant Crowley Marine’s acquisition of Carib Energy last year was specifically designed to provide it with an instrument for accessing the small Caribbean gas markets, since Carib Energy is the proud possessor of the only small-scale LNG export licence issued by the US Dept of Energy for exporting to free trade agreement (FTA) countries. It has applied for a non-FTA countries LNG export licence too. Carib Energy is said to be eyeing the smallest potential Caribbean gas customers via the carriage of LNG is 10,000 gallon ISO tanks on board any type of ship, rather than bigger shipments via conventional LNG carriers of the kind Caribbean LNG will be using for Trinidad and Tobago.

1. Cheniere Energy, the former US LNG importer that has now turned its hand to exporting by setting up LNG trains fed by low-priced shale gas. Cheniere has already sewn up contracts with major gas importing companies internationally to be serviced from its Sabine Pass, Louisiana, four-plant complex, with a capacity of 18 million tonnes a year. Two additional trains are a possibility. Beyond that, Cheniere is also developing a second

4. AES Corporation in the Dominican Republic which wants to import low-prices shale gas as LNG, then re-export it, using the country as a “hub” for the Caribbean LNG trade. AES has, ironically, received LNG from BP in Trinidad and Tobago to fire its power plant at Andres since 2003, which has allowed the Caribbean country to considerably expand its use of natural gas. It is now popular as a fuel for industry and is used as CNG in motor

Geo-politics, plus a good price, should ensure that utility customers come to Trinidad and Tobago for their LNG first but that is not a foregone conclusion. While Gasfin/Parallax/NGC/NE may have been first out of the blocks, other companies have now recognised that a market for “rightsized” gas in the Caribbean may be in the making and they all want in.

vehicles. AES's president and CEO, Dr. Andres Gluski, has spoken enthusiastically of the Dominican Republic becoming “the centre of a hub-and-spoke system, whereby LNG would be imported from the US in large, efficient tankers and then re-exported in smaller volumes, likely as LNG or compressed natural gas, to various Caribbean countries.” 5. Mention of CNG, brings Canada's electricity company, Emera Inc., into the equation, because it, too, has recently jumped into the fray as a potential gas supplier to the Caribbean, where it owns a number of power stations. So it already has a captive market and has set up a US-based subsidiary, Emera CNG llc, to provide gas to its generating company in Grand Bahama in the first instance and to extend that service in due course “to a number of potential customers, all of whom are expected to be located in the Caribbean.” Why CNG? Emera's explanation is that this will be welcomed by utilities “that represent too small a market to be attractive to companies seeking to export LNG.” The company says it would use “trucks and oceangoing carriers” for transporting CNG, though no special-purpose CNG vessels have yet been built. 6. The UK's Centrica Energy, which holds proven gas reserves offshore Trinidad, has for some time been toying with the idea of exporting gas in CNG form to power stations on the north coast of Puerto Rico, which has long received LNG on its south coast from Trinidad and Tobago. But negotiations with the Puerto Rico Electric Power Authority (Prepa) have been suspended, as Centrica seeks a partner to assist with the investment burden. In addition to all the proposed LNG and CNG investments, there is one that plans to use a pipeline to take gas from Tobago to a particular market, that of Barbados. The Eastern Caribbean Gas Pipeline Co. (ECGPC) project keeps moving along, albeit slowly. As far as is known, the actual construction of the 188mile line between Tobago and Barbados has not yet commenced.

Contact • Vol.14 No.3 2014

Energy Update

Energy Statistics In this THIRD quarter issue of CONTACT for 2014, we continue our evaluation of the current statistical data arising from Trinidad and Tobago’s prosperous energy sector. We place special emphasis on crude oil, and natural gas production under both time-series and crosssectional circumstances. Table E.1 – Crude Oil Production by Companies for March to May 2013 and March to May 2014 (Barrels of oil per day) Company

March

April

May

March

April

May

2013

2014

BG REPSOL BPTT TRINMAR

807

895

796

825

679

552

12,485

12,197

11,708

10,769

11,248

11,364

8,817

7,807

8,850

11,169

9,408

10,010

19,938

22,755

21,700

23,685

23,364

23,410

1,222

851

939

TEPGL EOG

1,746

2,166

2,215

1,412

1,864

1,316

BHP

10,309

10,704

9,927

9,124

8,862

8,555

540

410

414

381

364

368

13,073

13,330

13,277

13,014

13,102

12,982

567

554

564 931

PRIMERA PETROTRIN TEPL BGCB

1,414

1,205

1,262

992

1,046

NHETT

102

113

101

NMHERL

116

121

105

110

PETROTRIN (FO)

832

881

950

742

756

644

PETROTRIN (LO)

5,903

6,331

6,289

6,685

6,379

6,689

512

623

647

1,217

1,192

1,288

PETROTRIN (IPSC) BOLT

424

392

407

312

284

270

LAND SUBTOTAL

22,449

23,020

23,050

23,243

23,009

23,092

MARINE SUBTOTAL

56,576

58,946

57,635

59,085

57,115

56,979

TOTAL

79,075

81,967

80,685

82.329

80,125

80,071

MORA

Table E.4 - Ammonia Production for March to May 2013 and March to May 2014 (Tonnes) Company

March

April

May

March

April

May

2013

2014

YARA

15,009

20,275

16,238

11,501

15,208 19,311

TRINGEN 1

40,251

31,320

34,155

36,865

34,118 31,343

TRINGEN 2

42,377

39,612

38,397

35,777

44,824 44,157

PCS NITROGEN

177,281 152,921 160,300 196,224 167,858 186,466

POINT LISAS NITROGEN

51,369

52,969

54,439

48,823

25,304

49,117

34,900

43,833 48,382

52,428

49,588

43,972

19,714

48,140 43,992

5,374

8,571

633

28,827

CNC NITROGEN 2000 AUM-NH3 TOTAL

14,264 52,129

2,243

843

384,089 380,560 397,251 412,631 370,488 426,623

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-8

Table E.5 - Ammonia Export for March to May 2013 and March to May 2014 (Tonnes) Company

March

April

May

March

April

May

2013

2014

YARA

14,675

11,816

18,000

29,482

13,817

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-8

TRINGEN 1

26,602

40,508

28,422

67,291

27,357

47,759

31,296

13,271

71,610

22,172

Table E.2 – Natural Gas Production by Company for March to May 2013 and March to May 2014 (mmscf/d)

PCS NITROGEN

TRINGEN 2

Company

March

BPTT

April

May

March

April

May

2013

2014

2,306

2,198

2,308

2,329

2,168

2,045

TRINMAR

EOG

PETROTRIN

475

509

504

558

565

551

988

882

1,009

1,006

797

900

BHP

376

418

408

415

394

406

4,195

4,060

4,279

4,363

3,972

3,952

REPSOL TOTAL

Source: Ministry of Energy and Energy Industries, Vol. 50 No2. & Vol 50 No. 1-8 *Figures in red are preliminary

Table E.3 – Natural Gas Utilization by Sector for January to February 2013 and January to February 2014 (mmscf/d)

69,387 168,528

97,785 158,162 156,857

133,450 190,357

POINT LISAS NITROGEN

85,052

46,392

42,967

69,893

29,054

37,512

CNC

19,920

14,880

42,221

28,911

52,762

42,429

NITROGEN 2000

30,109

69,051

52,642

45,910

49,150

31,569

AUM-NH3 TOTAL

414,273

328,191 373,710 411,615

349,843 351,396

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-11

Table E.6 - Methanol Production for March to May 2013 and March to May 2014 (Tonnes) Company

March

April

May

March

April

May

2013

2014

TTMC I

16,543

25,273

22,435

38,115

33,426

34,365

CMC

40,519

33,007

36,183

45,439

43,079

44,698

March

April

May

March

April

May

TTMC II

29,470

41,024

42,246

44,304

39,863

43,161

2013

2014

MIV

46,827

43,483

41,465

42,475

46,090

45,016

Power Generation

288

309

304

300

308

303

TITAN

47,745

51,582

58,406

69,273

72,039

64,439

Ammonia Manufacture

530

596

556

560

556

579

ATLAS

126,088

122,728

97,550

138,739

87,367

138,184

Methanol Manufacture

Sector

510

552

521

597

549

559

M5000

129,946

146,002

154,692

162,218

145,442

131,003

Refinery

TOTAL

437,138

463,100

452,976

540,565

467,306

500,896

Iron & Steel Manufacture

122

103

124

102

104

Cement Manufacture

Ammonia Derivatives

Small Consumers

Gas Processing

Liquified Natural Gas (LNG)

2,342

2,028

2,350

2,356

2,076

2,043

TOTAL

3,903

3,758

3,976

4,051

3,723

3,715

Source: Ministry of Energy and Energy Industries, Vol. 51 No. 2 & Vol. 50 Nos 1-8 *Figures in red are preliminary

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Update

Energy Statistics Table E.7 - Methanol Exports for March to May 2013 and March to May 2014 (Tonnes) Company TTMC I

Chart E.4 Ammonia Production (Tonnes)

March

April

May

March

April

May

2013

2014

16,427

23,295

16,295

27,772

35,135

34,449

153,523

200,954

162,766

120,848

139,345

117,655

TTMC II

33,260

51,465

14,460

MIV

TITAN

84,790

35,987

58,133

34,911

94,362

42,952

ATLAS

179,660

110,463

119,094

125,073

117,358

135,091

M5000

105,961

33,790

133,638

107,641

104,126

104,363

TOTAL

540,361

404,489

489,926

449,504

541,792

449,020

CMC

Source: Ministry of Energy and Energy Industries, Vol. 51 No.2 & Vol. 50 No. 1-8

Chart E.1 - Crude Oil Production by Company (barrels per day)

Chart E.5 Ammonia Export (Tonnes)

Chart E.2 Natural Gas Production (mmscf/d)

Chart E.6 Methanol Production (Tonnes)

Chart E.3 Natural Gas Utilisation by Sector (mmscf/d)

Chart E.7 Methanol Exports (Tonnes)

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Energy Update

Implementing Local Content Policies in Oil, Gas and Mining - Getting to Common Ground, Pt.1 By Anthony Paul

a. Circumstances underpinning local content activities last for many years and can change dramatically in scale and nature over time, objectives and implementation evolving and impacting the local economy and b. Objectives of local content society in different ways along the way. A At any given time and location, the specific variety of factors shape the circumstances that circumstances affect the choice of priorities influence the potential opportunities and impact and strategies. If the differences and of value capture through local content and relationships between the variables are not well dictate the best approach to be taken. Some of articulated and understood the approach to these are illustrated in Table 1. implementation may be complicated and result in a delay of the achievement of desired local Strategy formulation and planning are complicated by the variability of these factors. content objectives. This article does not seek to discuss the impacts of these and the role they may play in local a) Varying Circumstances No two countries or communities experience content. Suffice it to say however that the same circumstances at any given time, nor successful implementation requires an ability This article attempts to address some of the is any one location the same over the duration to monitor, analyse, understand the impact of causes of the variability of expectations and to of the extractives industry life cycle. The sector and respond to these changing situations. suggest clarification as a mechanism to reduce the confusion that may arise, so as to facilitate the process of moving from rhetoric to reality. Country/Region Business Environment This article might help demystify it and lead a) Level of development/ industrialisation a) Capital availability and cost b) Support services and systems to a working definition of local content, b) Capacity of individuals, institutions, businesses and capital markets c) Regulatory and fiscal environment necessary for a consistent method of setting targets and measuring the outcomes and c) Governance institutions & instruments d) Trade agreements & treaties e) Potential for collaboration within and across performance of participants, who will better d) Size (geography & population) sectors be able to understand their roles and determine e) Other industries and resources how best to focus their efforts. Further it can f) Availability of raw materials and manufactured goods Priorities serve as a useful catalyst for speeding up and Change with circumstances: simplifying local content implementation, as g) Location a) Current situation w e l l a s o v e r c o m i n g c o m m o n h) Real or potential impact on local communities b) Development path (vision & strategy) misunderstandings, building trust among stakeholders and aligning expectations with Other Actors reality. In the same way, this synthesis of Sector/ Industry lessons learnt from around the extractives world i) Understanding and Quantity of Resources a) Other government agencies (Finance, Trade, Immigration, Education & other can be applied to other areas in which we seek j) Levels of Activity (current and projected) Ministries, Central Bank, Revenue to increase local content â&#x20AC;&#x201C; construction, media, k) Life Cycle Stage of Activities and remaining duration Authority, etc.) information and communications technologies, l) Maturity of Industry b) Education & skills development for instance. m) Levels of production c) Manufacturing d) Investors 1. Perspectives shaping local content n) Costs & Markets o) Investors & their perspective e) International suppliers implementation An understanding of and approach to the issues that frame local content implementation is Table 1 - Circumstances Impacting Local Content conditioned by two variables:

cross countries of the developing world that are rich in resources extracted from below the earthâ&#x20AC;&#x2122;s surface, the term Local Content has captured the attention of everyone from politicians to students, the unemployed, skilled and unskilled workers, budding entrepreneurs, business owners, civil society, politicians, aid agencies and investors. As exciting as the prospects it appears to hold for residents in producing regions, there is wide variation in the understanding of its meaning, the opportunities it will actually provide, the approaches required to make it happen and how to determine priorities and trade-offs.

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Energy Update b) Varying Objectives The overarching goal of local content and participation is to increase the economic and social benefits to individuals, businesses, communities, countries, regions and investors. To achieve this, stakeholders seek access to the range of benefits provided by the presence and operations of the extractive industries, such as those highlighted in Table 2. Without clarifying and prioritising these objectives, factoring how they relate to and impact each other, what is required to get them and the need for and implications of trade-offs between objectives, there can be confusion, uncertainty and inertia in the implementation of local content policies. Some objectives are dependent on the achievement of others (human capacity development is a pre-cursor to employment, for example) so the 1 2.

8. 9.

10.

implementation strategy requires an i. Preparing for local inputs into the business understanding of the operations of extractives and operations of the extractives sector by: businesses, which is often absent from • Analysing the industry, location and regulators, particularly those new to the industry. market situations Further, some stakeholders have strengths that • Crafting a desired outcome (vision), with are better suited to delivering certain objectives, related goals and objectives so it takes an understanding of stakeholder • Developing a local content strategy for capabilities to manage local content. the industry • Developing policy guidelines 2. Stages in local content implementation • Developing and implementing Describing local content invariably invokes legislation, regulations and contracts to several activities and outcomes, which combine regulate the related activities and monitor to form the local content narrative, as we know and hold actors accountable it. Unfortunately, much of the current discourse ii Building capacity in individuals, institutions considers all the desired activities and outcomes and businesses, including skills as parallel. We suggest that these are in fact development, training and supplier sequential and can be placed into four stages, development; which enable: with preceding ones supporting and enabling iii. Procuring local inputs in productive activity, the subsequent one(s): such as capital, goods and services, resulting in: iv. Capturing local benefits, both direct and Value retention in the local community, country or region; indirect, such as jobs, contributions to the Human capacity development, to increase: economy, better business environment, the • The number, quality and value of jobs for locals multiplier effect on other sectors, increased • the standards of individuals to internationally competitive levels (Internationalization) Business capacity development for: country competitiveness, etc. • Increased local business competitiveness • Internationalization of firms This does not mean to say that one stage can • Sector sustainability; only begin when another is completed, rather Value addition, by way of: to indicate that there are pre-requisites to • inputs to and using outputs from the extractives value chain, through the use of local properly formulating the activities involved in raw materials and manufactured goods (including intermediate products from the resource delivering local content. Given the reality of itself) ongoing operations, while policy is being • forward and backward linkages to other productive activities, industries and/or economic formulated, it is suggested that consideration sectors; should be given to the shape and intent of National/community economic sustainability through: preceding steps, even in their absence or • Improved infrastructure, technology, institutions and services that are required for the completeness, when making operating extractive industry and can also support other businesses and the public decisions. • Enhanced local/national research, development and innovation capacity • Improved balance of trade/import substitution; Often there is confusion, inconsistency and Support for regional integration via joint use, sharing and inputs of resources from lost opportunity, when focus is placed on neighbouring countries (people, businesses, infrastructure, institutions, capital and raw immediate benefits (number of jobs provided materials) by the current level of local capability, for Improved local capital markets, by: instance), without proper consideration of the • Accumulating capital locally long term potential and consequential trade • Reducing the cost of capital offs (training opportunities to enhance local • Facilitating access to capital by businesses; capabilities, by requiring that locals work Institutional capacity development for improved sector governance; alongside outside experts, so as to learn on the Benefiting investors via: job, for instance). This situation is often • Access to a wider talent and services pool compounded by the apparent haste and • Cost reduction • License to operate and grow, domestically and internationally (as a result of the opaqueness of decision making (to engage foreign contractors, for instance, so as to meet impression that they leave locally); Avoiding past mistakes and learning from the experiences and practices of other countries, some pre-determined schedule, while policy is still being formulated.) industries and companies.

Table 2 – Local Content Objectives

Continued next issue. Contact • Vol.14 No.3 2014

UWI

Lawâ&#x20AC;&#x2122;s Promising Future Lawyers are necessary in a community. Some of you ... take a different view; but as I am a member of that legal profession, or was at one time, and have only lost standing in it to become a politician, I still retain the pride of the profession. And I still insist that it is the Law and the Lawyer that make popular government under a written constitution and written statutes possible. WILLIAM HOWARD TAFT, speech, Nov. 4, 1909

ost people would have heard a derogatory joke about lawyers in their lifetime. This is a pity, since lawyers are irrefutably of immense social utility. This utility comes from them being trained in a thing indispensable to modern societythe law. No area of study touches and facilitates all of life like the law does. Law governs big and farreaching matters like the structure of Government. It directs smaller matters that affect private lives, for instance, the rules of an employment relationship. It dictates the parameters of acceptance of important social arrangements in society. For example, the extent to which unions between unmarried men and women are recognised is decided by the law. Thus law is much more than simple pedantic rules to govern life. A society's laws represent the ethos of that society, and its stage and direction of development. As a nation, we turned 50 years old last year. Age is relative, but by world standards, we are young in our nationhood, still in our identity-crafting years. Prior to taking our big step of independence in 1962, then becoming a republic state in 1976 we were a colony of England, subject to its laws and conventions, which were imposed upon us. Even upon attaining independence, our former Constitution was characterised as an Order in Council of the Queen.

cutting of ties from England, whose constitution is unwritten. The cut was not a clean severance though, as noted in the very wording of our Constitution. The savings law clause found at section 6 retains law that existed immediately before the Constitutionâ&#x20AC;&#x2122;s commencement and is the reason why some laws, which were not passed by any post Republic Legislature, exist today on our law books. At the time of the enactment of our Constitution, it was wise to retain ties with our colonial parent. Indeed, it is far-fetched to imagine a child acting as an autonomous individual without some guidance from their parent. But, even the control of natural parents over their children wanes over time. Before a child attains the age of majority, the law entitles them to make autonomous decisions on important issues. By the same token, as we grow older, we ought to be addressing our views, as a nation, on many of the positions set out on our law books, positions which we oftentimes never established ourselves, but adopted wholesale by imposition.

What more deliberate and effective way to craft the philosophy of a nation than through its laws? The mandate given to Parliament, the legislative branch of Government at section 53 of the Constitution, to make laws for peace order and good government, is thus a heavy one that enables our departure, as we see it, from political, social, cultural and ideological policy received through British Law. No arm of Government is more important than another but the It was a notable time for us then, when in 1976, we legislative branch, comprised mostly of officials enacted the Constitution of the Republic of Trinidad elected by the citizenry, is instrumental in defining and Tobago. For the first time, we were governed who we are and what we believe in as a nation. by our own Law, an indigenous instrument produced by us for us. It determines the structure and functions And who comprises the Legislative branch of of Government, and sets out the fundamental rights Government, or even the Executive and Judiciary, of every citizen as against the State. It represents which comprise the other two branches? Members a relinquishment of our colonial past and a of the Executive can be of disciplines separate from determination to fashion our own nation. The fact the law. But all judges are lawyers, and, even if the that our Constitution is written at all represents a actual members of Parliament are not lawyers,

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certainly the members of the Legislative Drafting Department are lawyers, or at least trained in the law. Currently, the holders of the three highest offices in our land, the President, the Prime Minister and the Chief Justice, are all lawyers. So we come back to lawyers. Love them or hate them, they are very instrumental to modern society. It is excellent, then, that there is now a Faculty of Law at The University of the West Indies (UWI), St Augustine Campus. Before 2012, Trinbagonian students were forced to go to The UWI Faculty of Law at Cave Hill, Barbados to complete the last two years of a Caribbean law degree. This was an economic strain, which could possibly have eliminated the option to study law for some potential students. Now, our future lawyers can be trained on their local soil surrounded by the ongoing, real issues that occur in our nation to provide context for the legal principles they learn. The students are generously exposed to the laws of the other Caribbean countries. The Law program as conducted in St. Augustine is as vibrant and as comparative in its approach as the one conducted at Cave Hill. Further, the program is open to, and attended by, other Caribbean nationals to facilitate a culturally diverse faculty where the students can learn from each other. The future of the law profession in Trinidad and Tobago is therefore promising. A strong mandate rests on the Faculty of Law, law students and qualified lawyers to contribute to our nation's development. We stand on the shoulders of those gone before us; giants in the law, like the late Dana Seetahal, who contributed substantially to defining our nation's ethos with her life's work. The Faculty of Law at The UWI St. Augustine Campus, is well poised to contribute to the delivery of lawyers who will follow similar footsteps. Honourable, service oriented lawyers, who leave the citizenry inspired and encouraged, not with a derogatory joke at the tip of their tongues.

Telecommunications Authority of Trinidad and Tobago

TATT/UWI Launch Cyber-Safety Awareness Project “

e need to consider that our children are growing up in a world where, according to the head of Google, there is no such thing as “delete!” This said Mrs. Alicia Hoyte, Clinical Psychologist and keynote speaker at the launch of the Telecommunications Authority of Trinidad and Tobago (TATT) and The University of the West Indies’ (The UWI) (St. Augustine Campus), Cyber Security project on Wednesday, July 23, 2014.

The primary objective of this project is to improve the safety of children in Trinidad and Tobago by educating both children and their parents of the risks associated with the inappropriate use of Information and Communication Technologies (ICTs), including the Internet. A Memorandum of Agreement was signed in this regard. Signing on behalf of TATT was Mr. Cris Seecheran, Chief Executive Officer, and Principal of The UWI, St. Augustine Campus, Professor Clement Sankat, signed on behalf of the University. Providing advice on how children can be protected Mrs. Hoyte stressed “we need to change the dialogue we have with our young people”. Applauding The UWI / TATT initiative Mrs. Hoyte told the audience that today’s technology cannot be compared with what existed years ago and the model of forced compliance will not meet the need for

teaching how to navigate the dangers of overuse rooms and speak to people they do not know”. He and misuse of modern technology. said some young people add individuals they do not know as friends on different social networking In his opening remarks, Mr. Selby Wilson, Chairman sites. of the Board of TATT told the audience that according to ITU statistics “by the end of 2014 The project was developed by The UWI’s Campus there will be almost 3 billion Internet users. This Information Technology Services (CITS) Department figure accounts for approximately 40% of the world’s and is spearheaded by Mrs. Claire Craig, Senior 7 billion population”. I.T. Officer, Enterprise Applications Support Manager, at The UWI. Mr. Wilson said Trinidad and Tobago stands solidly within that mix. He quoted statistics released by TATT and The UWI will work in conjunction with TATT a few weeks ago which reveal that CyberSafeTT on the project. CyberSafeTT is an approximately 51 out of every 100 persons in organisation that already promotes cyber-safety Trinidad and Tobago had either a fixed Internet awareness in South Trinidad. subscription and/or a mobile Internet subscription at the end of 2013. TATT’s involvement in Cyber security commenced in 2009 with this organization’s commemoration of Also addressing the opening was Mr. Shiraj World Telecommunication and Information Society Mohammed, Manager Transformational Projects Day. The theme for that year was Protecting Children and Commercialization at The UWI. He said cyber in Cyberspace”. WTISD is an annual themed event safety and the appropriate use of the Internet observed by many ITU signatory bodies globally. should be of utmost importance to all of us, but In 2009 TATT developed a range of related audio particularly our young people who may be visual and print material including a 45 minute video considered the most vulnerable in our society. titled “Cyber Danger”. This video continues to be a valuable source of online protection information for Noting that young people spend “an overwhelming children, parents and guardians. Since then TATT’s amount of time on the Internet everyday”, Mr. staff have been involved in conducting cyber security Mohammed pointed out that while in cyberspace seminars for children and teenagers upon requests some young people “post personal information and from a wide variety of entities including schools, pictures that strangers can view, some enter chat libraries and youth groups.

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SERVING THE CARIBBEAN

An Approved Mediation Agency registered with the Mediation Board of Trinidad & Tobago The Centre’s Mediation Programme is Accredited by the Mediation Board of Trinidad and Tobago

The Centre provides public and customized in-house training in ADR & related fields, such as Mediation, Negotiation, Arbitration, Conflict Resolution, Stress & Anger Management, Self Management for the Busy Executive, Dealing with Difficult People, Critical Thinking For more information contact: THE DISPUTE RESOLUTION CENTRE, Ground Floor, Trinidad and Tobago Chamber of Industry and Commerce Building, Columbus Circle, Westmoorings. Tel: (868) 632 4051 or 637 6966 Fax: (868) 632 4046 or 637 7425 E-mail: drc@chamber.org.tt

ACCA

Does finance and entrepreneurism mix? By Brenda Lee Tang, FCCA Head of ACCA Caribbean

et me start this article by posing a simple question:” What makes an entrepreneurial finance function?” The short answer is a business centric approach, one that takes into account the real and pressing financial needs of an organisation now, and in the future. This is the main finding of a soon to be published report by ACCA and IMA called The Entrepreneurial Finance Function, which looks at the progress commercial finance functions are making in business partnering. This report considers the challenges Chief Financial Officers (CFOs) and their finance functions face in delivering effective financial insight. The report also has some interesting insights that are highly relevant to the work and skills of the management accountant. Drawing on the expertise of senior finance executives from some of the world’s leading organisations, as well as a global study with finance leaders and a number of finance executive roundtables, it suggests how some of the opportunities that finance business partnering presents to the finance organisation could be capitalised on and future proofed for an increasingly digital and entrepreneurial age. Partnering makes for success What the report highlights is that successful organisations encourage their business departments to partner with finance department to deliver data insights for better decision support. The report draws on global survey data from finance leadership roundtables held in New York, London, Toronto, Vancouver, Singapore, and Hong Kong; and includes interviews with over 750 senior finance executives from some of the world’s leading organisations. What is reported from these interviews is an agreement that rapidly changing business environments and increasingly complex digital environments are among the main challenges CFOs and their finance functions face in delivering effective financial insight. However, finance organisations that adopt a business-centric approach and emphasise the importance of good finance-business partnering practices can not only meet those challenges, but also capitalise on them by extending their influence and leadership across the enterprise. For the management accountant, yet again, this means managing change within the organisation. It also means ensuring that the management accountant also works within the organisation effectively and efficiently. The working relationships developed by

the management accountant are therefore vital. After all, we are working at a time of immense change, and the finance function has to keep up, regardless of the specialist areas they support or conduct. The rise of technology There is no denying that today’s business operating environment is competitive, complex, volatile, fast changing and entrepreneurial. There are broad social and demographic changes impacting how and where business is done to meet the demands of a changing global consumer generation, amidst the broader economic rebalancing of the world economy and that of China’s. The advent of technology is also having the most profound impact on our working lives. At the heart of creating competitive advantage will be technological innovation, so the management accountant has to grasp this opportunity. . How the business uses the data at its disposal to take more effective decisions is the make or break of corporate success. There are three opportunities to be grasped, and ones which the management accountant can play a significant part in developing and delivering:

Making the right decisions While data is the management accountant’s area of expertise, they can and should also be at the heart of decisions about talent management across the whole finance function. They also need to be adept at building trust and rapport – an issue which also comes across in the report. The success or otherwise of finance insight activities rests on support and “buy in” from executives across the wider enterprise, and this can only be achieved by building understating. So the development of a collaborative culture is essential, and rewiring the perception of finance and its purpose in the minds of business leaders outside of finance, fundamental to its success. This need for a collaborative culture often demands a reappraisal of skill sets and abilities. The skills, capabilities and behaviours brought to the table by the finance function will differentiate the finance winners and losers. Ideas, innovation and customer centricity will be the attributes of the future successful enterprise. To support this, the finance function will be under greater pressure to demonstrate its commercial acumen, its entrepreneurial spirit, its confidence in challenging the business and its capacity and willingness to take calculated collaborative risks. The changing environment is calling into play quite different capabilities and, critically, a different finance mind-set.

• Create a sustainable environment for financebusiness partnering practices to flourish • Fix and rework the quality of data insights provided to the business • Deploy the right finance talent with the right mindset to deliver. Seizing the future The report also predicts that the growing digitisation Perhaps the second point is the most relevant to the of businesses and a highly competitive enterprise world of the management accountant – the ability to landscape will have a profound effect on the future fix, rework and deliver the quality of data insights of businesses and the finance function. In a fastprovided to the business. moving, data-rich business environment, enterprise data insights will be increasingly important in creating In a recent survey by ACCA and IMA, understanding advantage and corporate value. Management the Key Performance Indicators (KPI’s) and activities accountants therefore need to seize the future that have the greatest impact on value was identified agenda and also play a part in shaping that future as the most important attribute that CFOs must be too. Again, this is the management accountant’s able to demonstrate in leading the finance business rightful domain, where providing such information partnering agenda. in collaboration with colleagues will drive success. A business centric approach must be taken to But the report has a key recommendation when it address future challenges. What are needed are comes to data management, and that is to manage the right insights that realise a much more integrated it better; to sort it out: The finance function needs relationship between finance, the management to explain information requirements so it can access accountant and the rest of the business. data which is relevant to the identified important In a data rich future, the opportunity for the metrics and activities of the enterprise. Coding organisation in extending its influence and leadership practices, data hierarchies and taxonomies aren’t across the enterprise is very clear. These keeping up in a rapidly changing environment. opportunities must be grasped.

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Chamber Quarterly Report - Tobago Division ver the course of the second quarter of 2014, the Division followed its projected workplan, namely: to seek a solution that would expedite effective rollout of Government’s Loan guarantee (GLG) in Tobago’s economic space; to improve the quality of the inter-island transport system (both the sea and air bridges) and, to work towards improvement of synergies between principals who generate plastic and other waste and the House of Assembly which manages all Tobago’s municipal solid waste (MSW).

The work of the various sub-committees made for a busy quarter. One quite successful initiative of the Fundraisng sub-committee was the rental of the Division’s Hall. Two Trinidad based-entities serving the financial services held conferences and there was also good a response from the local business and NGO communites for conference type accommodation.

Trinidad and Tobago Port Authority and was afforded the courtesy of contributing its views for better delivery of services on the interisland route. The Division also had representation on the Tobago Disaster Management Committee. There was ongoing representation at the tourism stakeholder meetings, with the goal of building and then sustaining visitor traffic – through timely, sufficient and strategically based airlift and also event creation such as the Jazz, the issue though, remains largely up in the air.

The Division also met to discuss Tobago’s growth and overall development. To support this, the Division’s membership made suggestions. The Division also accepted an At the start of the second quarter of 2014, and invitation to represent the island’s issues on following it’s AGM in late March, the Division the National Social Dialogue Task Force. The Environment sub-committee took an formalised its sub-committees and convenors active part in discussions for improving the as follows: Events and Fundraising (chaired A meeting was held with representatives of lot of Tobago fisherfolk by supporting the by David Ford), Security (chaired by Curtis the Police Service on the re-commission of rebuilding of the haulout facility at Buccoo. Wiliams), Airlift (chaired by Christopher the Tourism Oriented Police Service (TOPS) James), Inter-Island Transport (chaired by and went on to assist with a final proposal that Environment also came into focus as the Diane Hadad), Business Development (chaired included stronger police presence in areas Division launched a web-based initiative to by Brian Frontin) and Environment (chaired where tourists – and locals - could be combat, the escalating issue of noise pollution by Jason Arthur). vulnerable. The Division also hosted the in the Crown Point area.

Welcome to New Members CUTTING EDGE LTD Address: 30 Sandale Avenue , Diego Martin Telephone: 683-9331. Fax: 222-7806 Email: cuttingedgecreations@tstt.co.tt Website: http://cuttingedgecreations@tstt.net.tt BRANFORD GENERAL CONTRACTING SERVICES LTD Address: 150-151 Bon Air Circular Rd., Bon Air Gardens, Arouca Telephone: 221-3127 Email: branfordgen@yahoo.com DEFCO AQUATICS Address: P.O. Box 56 Scarborough, Tobago Telephone: 466-6442 Email: ndefreit@gmail.com Website: http://www.defcoaquatics.com KENSON PRODUCTION SERVICES LTD Address: 64-70 & 72-78 Lady Hailes Avenue, San Fernando Telephone: 657-2457; Fax: 653-9917 Email: cyndee_mcmillan@kenson.co.tt Website: http://www.kenson.co.tt

MEDIA MILL LTD Telephone: 622-4647 Email: shimon@mediamill.tt Website: http://www.mediamill.tt PACKAGING CENTRE TRINDAD LTD Address: 4-B Central Warehousing Complex, Charlieville, Chaguanas Telephone: 675-2641 Email: sales@packagingtnt.com RACHAEL WILLIAMS Address: P.O. Box 2079, National Mail Centre, Piarco Telephone: 760-2079 Email: rachaelw@yahoo.com SYGMA ENVIRONMENTAL Address: 12 Third Street, Maraval Telephone: 622-7114 Email: gerardrajkumar@outlook.com

TOSL ENGINEERING LTD Address: 8-10 Maharaj Avenue, Marabella Telephone: 299-0360 Email: dave.ragoonath@tosl.com Website: www.tosl.com TRINIDAD AND TOBAGO POLICE CREDIT UNION Address: 61 Tenth Street, Barataria Telephone: 674-6514 Fax: 675-8479 Website: http://www.policecreditunion.com ULTIMATE EVENTS LTD Address: 18 Rosalino Street, Woodbrook Telephone: 623-6819 Email: krista@ultimateeventstt.com Website: http://ultimateevents.com WELLS AND COOPER CONSULTANCY LTD Address: 18-20 Pembroke Street, Port of Spain Email: anthonywells@live.com

Contact • Vol.14 No.3 2014

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