STAR Businessweek - 7 October 2017

THE STAR BUSINESSWEEK OCTOBER 7, 2017

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Photo y Bill Mortley

Assets of $1.5tn wash up in British Virgin Islands

HOW CAN BUSINESSES RESPOND EFFECTIVELY TO EACH HURRICANE?

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approaches and methods for dealing with the hurricane season. The ways in which business has changed shows this, especially with the rise of online, globalised business. It’s recognised that taking steps to secure the immediate assets of a business is stressful, but generally straightforward. Ensuring electricity is switched off‚ doors are locked‚ and no heavy furniture could collapse are all familiar steps to anyone living in the Caribbean.

What about once this is done? What then for a business that needs to operate after the storm passes‚ and may do so amidst great difficulty?

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Hurricane Tomas unleashed its force as it crossed Saint Lucia on October 30, 2010 , killing 14 people.

BY STAR BUSINESSWEEK CORRESPONDENT

ecent weeks have proved once again just how vulnerable the Caribbean is to hurricanes. Hurricane Irma caused immense damage throughout the Caribbean and North America. Thereafter, Hurricane Maria swept through, delivering another round of devastation. Even if hurricanes are accepted as ‘a way of life’ in the region, these have been testing times for all. The work is still underway and it will be many months, and even years, before our local communities feel normalcy.

Yet, we are also not helpless. Each year brings new

Offshore companies in the British Virgin Islands have assets of more than $1.5tn, more than twice the sum estimated in 2010.

Venezuelan politicians seek refuge abroad

After a month in hiding and a clandestine three-day road trip through the jungle, Venezuelan politician David Smolansky arrived in New York last week — one more exile from the oppressive regime of president Nicolás Maduro.

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Knowing What Matters … and Why.

Continued from page 1

BY CHRISTIAN WAYNE – EDITOR AT LARGE Photo y Bill Mortley

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Hurricane Tomas left a trail of devastation.

STEP 1: BE AGILE BEFOREHAND

THE WORLD IS NOT WHAT THEY TELL YOU IT IS. THE MONEY GAME - ADAM SMITH

Nothing is inevitable. The world keeps changing and the future is irredeemably uncertain. Views shift.

There are no history ending truths.

We have to discard many of the “for and against” views of the world. “Are you for globalization or against it?” is not a useful question. Globalization, like all major social movements, brings both good and bad.

We have been unconscious islands for far too long, drifting in our own sublime. Who has become the trailblazer? And who the Byzantine?

We have split the atom, but seem unable to enfranchise the 4 billion people of the world who live on less than $2 a day.

Man has been to the moon, yet we have made very little effort in preserving the environment here on planet earth.

Our leaders séance in a forgotten tongue, untouched by and unconcerned with the hands of the market.

Sir Arthur Lewis’s treatise on labour transition still remains often cited, but seldom read.

There is much to be proud of, but even more to which we should aspire. The Renaissance is not far. We must not lose sight. What’s best for the country will always make a compelling political narrative but, much like pornography, it is difficult to identify.

It is my impression that we unknowingly engage in a grand charade. In a state of delusional hope, much like the Jazz era of the 1920s. Jazz is dead. We aspire to ‘development’ but have little appreciation for the language of business. We live in an obsession, a romantic yearning for something in which we are wholly ignorant.

We are not near the finale. This is just the second act.

Part 1 of The STAR is politics. Part 2 is business.

How can Caribbean businesses weather the storm without sustaining crippling interruptions to their operations? Start with our lead story on page 1. The paradigm has shifted in the international development community. Traditional partners like the Inter-American Development Bank have lost faith in the ability of local governments to effectively spur growth in the economy. In an effort to combat global inequality, aid agencies have turned to an unlikely partner—the private-sector.

Many are beginning to ask: Can we eradicate poverty through profits? Learn more on page 4.

The right question can be a powerful force. Here’s to our readers. Here’s to empowerment. Here’s to development. Here’s to the engine of growth. Here’s to trade. Here’s to diversity.

Here’s to the future. Here’s to The STAR Businessweek.

Businesses talk about the value of being agile.

From increased growth to carving out a status as a market leader‚ a dynamic and responsive operation is something every business should aspire to. It is when a hurricane hits that the real value of this is seen.

Being agile is not only advantageous for productivity and profits, it is essential to protect against a business ceasing operations outright during a storm, and also being unable to reopen and operate for a long period after. A hurricane can wreak havoc on a business’s balance sheet, so every effort to defend against the long-term impact must be pursued.

In order to do so effectively, businesses need to ensure there is a clear plan of communication in place before the storm lands. Beyond securing safe accommodation and accounting for all staff, a clear line of communication between all personnel (incountry and globally if required) guarantees a business can cease operations before a storm with peace of mind surrounding its staff.

This preparation beforehand can serve to make a huge difference when seeking to operate effectively after the storm. By no means is this an easy feat to achieve in the best of times. Nonetheless‚ the failure to do so can prove very costly‚ even to a business that operates outside the impact zone of a natural disaster.

STEP 2: BE RESPONSIVE AFTER

Just as it is important to communicate clearly before a storm, so too is it vital a business remains communicable throughout it. This may not be possible within a local capacity as a storm hits, but assigning the responsibility to a regional or international office can help ensure operations continue (where possible) even amidst a hurricane.

Once the storm has passed, resumption of regular business is a priority. Not only does this seek to restore the business, but it begins to provide essential services and support to the local community. It also assists staff members and clients to return to a sense of regular life and routine; and this factor alone can prove vital to sustaining operations now and into the future.

It is important in the immediate aftermath of a hurricane that such services align with the recovery needs of a community - no Caribbean dismayed by a category 5 hurricane would feel delighted to hear there’s 20% off a tax return with their local accountant. With proper sensitivity to the situation, a business can build anew as it seeks to rebuild its local community.

STEP 3: GUARD AGAINST SECURITY RISKS - THE DATA DANGER

Because business data is usually stored in the cloud, a hurricane is unlikely to do any major damage.

Provided there are off-site servers that can serve as a backup in the event a local server is brought down, there is the capacity for a business to continue online operations without change. Yet, it can be a big mistake to think losing power or dealing with lost data are the sole concerns.

The greater threat is the potential for the emergency situation to attract scammers. The reality is many of these scammers are sizeable, sophisticated, and prey equally upon businesses and their clients. This means the potential for a massive data breach, theft or act of extortion can be greater when a hurricane has arrived in the region.

Not only is the risk increased during this time, but the capacity for victims to combat scammers is diminished, with local business personnel often evacuated, and police resources strained attending to urgent matters elsewhere.

SUMMARY

However much you prepare, it is a reality that Mother Nature will always have the greatest power.

As time and technology progress, the hope is that any community regularly facing the threat of hurricanes will find new ways to address the situation.

Ultimately, while our efforts to minimise the damage among our businesses, families, and communities grow stronger alongside our resourcefulness, there is little capacity to ever resist the raw power of a hurricane making landfall. In these circumstances, businesses that seek new ways to be proactive will always find opportunities to serve within their local community.

Each hurricane takes our theories surrounding natural disaster management and tests them. There are never any victories in such a circumstance.

Instead it’s simply a matter of determining whether or not systems put in place beforehand did sustain throughout an emergency.

It also cannot be understated just how expensive hurricanes can be. Yet‚ with Hurricane Irma having caused over $10 billion dollars’ worth of damage in the Caribbean alone, once emergency work has been carried out‚ attention will ultimately turn to a rebuild of the impacted area. That process will always be longer and more protracted, as meeting the immediate needs of the community is succeeded by the need to rebuild the community, and return its life to ‘business as usual’.

A business that is able to sustain and remain in operation can serve as an essential cornerstone in these efforts‚ but only in so far as it remains in effective operation itself.

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The British overseas territory derives more than three-fifths of government revenues from its financial sector.

ASSETS OF $1.5TN WASH UP IN BRITISH VIRGIN ISLANDS

BY FT CORRESPONDENT

Offshore companies in the British Virgin Islands have assets of more than $1.5tn, more than twice the sum estimated in 2010.

Two-thirds of the offshore companies registered in the BVI are used for “corporate structuring”, and more than 140 listed businesses in London, New York and Hong Kong have a unit in the BVI, according to research carried out on behalf of the BVI government.

These units can be used for tax planning, but can also be useful as a taxneutral hub for investors from different locations. Companies are also attracted by the BVI’s legal system, which mirrors British law.

A further quarter of the companies represent funds and investment vehicles, while property holdings and family wealth each account for 5 per cent of the overall number.

The BVI, which derives more than three-fifths of government revenues from its financial sector, has been hit by the global financial crisis and the ensuing backlash against offshore finance. Nevertheless, the total assets of its companies are now twice as high as they were when estimated at $615bn in 2010 by the International Monetary Fund.

Capital Economics, the consultancy that carried out the research,

acknowledged that “the scale of financial activity carried out on the islands may appear incongruous in a small jurisdiction with a population no greater than an English market town”. But it said the perception it was a tax haven was based on a misunderstanding.

Mark Pragnell, the author of the report, said globalisation had led to a greater use of cross-border structures by multinationals, while the use of BVI companies to contain private wealth was becoming less prominent.

Mr Pragnell said it was unclear how much of the flow through BVI companies represented “roundtripping” — sending money offshore that is later brought back to its country of origin.

This is often seen as a way to get around regulations and taxes but Mr Pragnell said the main rationale for routing money through the BVI was to take advantage of its secure legal framework.

Capital Economics estimates that BVI companies could be used to avoid up to $750m of tax, including stamp duty on the transfer of properties and the deferral of taxes on interest income. The purchases of large commercial properties in central London account for the

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majority of the top 10 property deals by value carried out through BVI companies.

The research also highlighted the popularity of BVI companies in Asia.

Two-fifths of BVI-held assets are in Hong Kong and China, which also accounts for a third of the owners of BVI companies, by value.

Lorna Smith, interim executive director of BVI Finance, said: “The BVI has never been a secrecy jurisdiction. We adhere to privacy for clients.”

The BVI stressed its “substantial efforts”, which it said exceeded many large nations, to strike out criminality and ensure transparency.

But Tax Justice Network, a campaign group, said although it had made significant improvements in transparency, secrecy remained a salient feature of its offshore sector.

Alex Cobham, director, said: “Time is up for the business model of selling secrecy to non-residents, for tax abuse and other corrupt purposes. If the BVI wants to stop being known as a tax haven, it should follow the emerging international standard by establishing a public register of the ultimate beneficial owners of all BVI companies and trusts.”

Copyright The Financial Times Limited 2017

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first phase there may have been less knowledge about what we were doing.”

GROWING THE PIE

Placencia, Belize - the Belize Shrimp Growers Association has increased production by 144% since receiving a cluster grant from Compete Caribbean.

CLUSTERING TO COMPETE Compete Caribbean looks to leverage link between collaboration and innovation

I

BY STAR BUSINESSWEEK CORRESPONDENT

nnovation, a key driver of growth, has long posed a challenge for the Caribbean economy. Vital to all aspects of the region’s finances, from trade to tourism, the ability to innovate is crucial in a competitive global market but budding Caribbean entrepreneurs are often beset with obstacles. Limited access to capital, inadequate resources and a lack of institutional support are just some of the issues the region’s innovators must overcome.

Compete Caribbean, jointly funded by the Inter-American Development Bank (IDB), the UK Department for International Development and the Caribbean Development Bank, is working to address this through its own innovative scheme - the cluster development programme which grants up to US$400,000 to private sector firms collaborating to grow

their market. Since its first call for proposals in 2012, the initiative has gained ground in the region, supporting eight clusters and impacting 525 firms. Now Compete Caribbean is looking to build on that growth, particularly in Eastern Caribbean countries such as Saint Lucia where, it says, interest is low and need is great.

“The Eastern Caribbean is particularly suited to this type of support because most of the businesses there are very small [but] Grenada has been the only country from the Eastern Caribbean to get a cluster grant,” says Compete Caribbean’s Executive Director Dr Sylvia Dohnert who suggests that the IDB’s limited presence in the area may be to blame, as well as a general lack of awareness about the project.

“This is a programme executed by the IDB and they are active in the Eastern Caribbean but have no country offices there. During the

What Compete Caribbean is doing is encouraging businesses to work together in a way that will eventually benefit the entire region.

What Compete Caribbean is doing is encouraging businesses to work together in a way that will eventually benefit the entire region.

The organisation defines cluster development as businesses in the same sector, or supply chain, working together to export their products. This has many benefits for the participating firms including shared costs, the ability to build a brand together, collaborate on marketing and jointly invest in quality standards testing.

“There are a number of opportunities in clusters,” says Brian Louisy, Executive Director of the Saint Lucia Chamber of Commerce, Industry and Agriculture. “They can build skill where there is none, provide an opportunity to bring firms together and build industry cooperation. They give you the opportunity to have a different type of conversation, one where everyone gets a better understanding of each other’s needs.”

In July 2017 Compete Caribbean cohosted a forum in Saint Lucia with the country’s National Competitiveness and Productivity Council to discuss ways of stimulating private sector development.

Louisy says that, although the issue is complex, these type of discussions are important and initiatives such as the cluster development programme are something Saint Lucia’s private sector is exploring. “Programmes like this can be of tremendous value. With the right resources and the right leadership you can use clusters in a wide range of sectors. It is not something that is unique or specific to any one industry.

It is a way of thinking, developing and bringing people together to find areas of commonality so you get economies of scale and value chains being built up.

“There are opportunities in clusters but it does not just happen, you have to make it happen. It requires you to examine very closely what you are doing.”

One of Compete’s first, and most profitable projects, was that of the Belize Shrimp Growers Association who were granted funding in 2012 to obtain Aquaculture Stewardship Council (ASC) certification and increase their export market base. All ten of Belize’s shrimp firms came onboard and now it is the

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only country in the world where all firms have the coveted ASC standard giving them the opportunity to create a Belizean brand.

It is success stories like this that help Compete Caribbean overcome some reticence within the private sector, according to Dr Dohnert who says, “The difficulty in a cluster project is that businesses may feel they are competing and not collaborating. The most successful projects are those that show where firms can collaborate and make the pie bigger, rather than being of the mindset that this person is going to get a bigger slice.

“The idea is to discover how you make the pie bigger for everyone.”

Compete’s current call for cluster proposals closes at the end of October. To be successful, applicants must demonstrate the potential to generate employment, with particular consideration given to those who can stimulate job creation among vulnerable groups or women. A cluster consists of a minimum of three firms. Once the winning bid is chosen, Compete will link that group with a professional consultant and provide 80 per cent of the project’s total budget (to a maximum of US$400,000) with the private sector participants contributing the remaining 20 per cent.

dampening effect of insufficient capital, which spells trouble for the region given that they are often the economy’s innovators. More than 75 per cent of the Saint Lucia Chamber of Commerce members are SMEs, and all operate in a challenging environment.

“There are a whole range of issues confronting them,” says Louisy. “There

are few SME-specific financial products available which meet their needs; they often cannot find the right skill set or recruit those skills to make their businesses competitive. There are many challenges, depending on the sector, and SMEs contribute so much - providing employment, ensuring social stability - you name it, they do it. They are the

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essence of our economy.”

Coming together for cluster grants can afford SMEs some protection against the vagaries of the market which is good news for the Caribbean’s overall economic health, according to Dr Dohnert.

“SMEs generate a large number of jobs in the Caribbean. In every developed country in the world we see a large role for SMEs in generating economic development. They are more nimble, more innovative and therefore sometimes have an advantage over larger firms.”

FULFILLING POTENTIAL

First conceived in 2009, Compete Caribbean is now entering its second strategic phase. Its first phase, which generated 12,000 jobs in the region and helped private sector firms increase their revenues by 43 per cent and exports by 21 per cent, will be a tough act to follow but Dr Dohnert says her team is ready for the challenge.

She is pleased and proud of the progress so far and wants to build on this solid foundation by continuing to deliver on the organisation’s core mandate. “In our second phase we want to support sustainability of the kind of efforts we have been pushing in the region. That entails encouraging innovation and working more closely with institutions that support the private sector.

“It is important to me that we continue to have success. I’m personally committed to this, I love the Caribbean, it is a fantastic region. Projects like the cluster programme are important so we can provide people with much better futures. The Caribbean has so much potential.”

DIVERSITY IN THE MIX

Clustering feeds into Compete’s central aim - innovation. “Just the fact that the firms are working together opens the opportunity for innovation because there is now diversity in the mix,” says Dr Dohnert. “They are using new processes, new technology, new products.

“Productivity in the Caribbean at the country level has stagnated over the past two to three decades. One really impactful way to drive productivity is innovation.”

Dr Dohnert believes that offering clusters funding is the best way to ensure innovative ideas make it to market, adding, “The main barrier for the private sector is access to finance.

Commercial banks are not the ideal means to fund innovation because it is a risky process. There are a lot of firms with very interesting ideas but their capacity to implement is cut short by lack of funding.”

Small and Medium-sized Enterprises (SMEs) are most vulnerable to the

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Belize’s shrimp cluster is the only one in the world where all firms have an ASC certification.

Castries, Saint Lucia Brian Louisy, Executive Director of the Saint Lucia Chamber of Commerce, Industry and Agriculture.

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CORPORATE

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HANDS

Junior Achievement of Saint Lucia winners from the Babonneau Secondary School.

Flow Gifts Junior Achievement Winners Saint Lucian innovation was rewarded last week when Junior Achievement of Saint Lucia held its annual awards ceremony. Scores of secondary school students from schools around the island took part in the Junior Achievement programme, a project of the Saint Lucia Chamber of Commerce, Industry and Agriculture. The big winners came from Entrepot Secondary, Choiseul Secondary, and Babonneau Secondary. The most outstanding achiever as well as the top performing team received prizes including trophies and gifts from Saint Lucia and the Caribbean’s leading telecommunications service provider, Flow.

La Vie De Coco, a company established at the Choiseul Secondary School, created hair accessories from coconut shells and sold them to schoolmates and residents of the community. Emerle Tisson, president of La Vie De Coco, was named Achiever of the Year. The 16-year-old fifth form student was presented with an LG K8 4G LTE handset from Flow. The company which took home the lion’s share of the awards, including the one for best company, was Decoration De Bambou from Babonneau Secondary. Students were beaming with pride as they received a number of prizes including Flow schoolbags, mugs and water bottles.

Scholarship and bursary recipients with staff and board members of the Civil Service Credit Union.

Civil Service Credit Union Awards Scholarships and Bursaries Last month the Saint Lucia Civil Service Credit Union extended its educational outreach initiatives to the benefit of seven more students. At a ceremony at the company’s office, three scholarships were presented to Jusila Gittens (St. Joseph’s Convent), Mikaela-Shae Casimir (SJC), Krystal Lacan (SJC), and Kimson Chitolie (Vieux Fort Comprehensive). The scholarships run for the duration of the students’ two-year tenure at Sir Arthur Lewis Community College and include transportation and examination allowances. Three bursaries were also presented to SALCC students Jadell Edmunds, Kurtania Dore and Francis Moffat, and one staff scholarship to Petal Jn Charles. The new awards bring to 14 the number of SALCC students currently being assisted by the Credit Union. Notably, the Civil Service Credit Union spends over $130,000 on scholarships and bursaries for the children of members annually.

The Saint Lucia Government Gazette

Company Registration

Trademark Applications: Logistics & Brokerage Services Inc “Beyond the boundaries of expectations”

File No (210): TM/2017/ 000127 Mark name: OPPO Applicant (730): Sky Capital Limited Filing date (220): 19/05/2017 Agent (740): Gordon, Gordon & Co. Class (511): 9 Tablet computers; Integrated circuit cards [smart cards]; Computer game software; Computer software applications, downloadable; Computer

TUI File No (210): TM/2017/ 000154 Mark name: TUI Applicant (730): TUI AG Filing date (220): 19/06/2017 Agent (740): Peter I. Foster & Associates Class (511): 39 Transport; packaging and storage of goods; transport of persons and goods, in particular by road, rail, sea and air; river transport; porterage; transport of money and valuables; transportation logistics; organization, booking and arrangement of travels, excursions and cruises; arrangement of transport services

Find us in Corinth, Gros Islet P.O. Box 1506, Castries, St. Lucia Tel: (758) 450-4869 • Fax: (758) 450-3799 • Mobile: (758)484-6700 Email: logistics.kpl@gmail.com • Website: www.kpllogistics.co

File No (210): TM/2017/ 000124 Mark name: SERENITY Applicant (730): National Continental Hotels Limited Filing date (220): 18/05/2017 Agent (740): Gordon, Gordon & Co. Class (511): 39 Transportation of travellers; transportation reservations; provision of information about journeys via tourist agencies. Hotel information and reservation services; hotel and restaurant services; services for providing food and drink; provision of temporary accommodation.

Name: Island ATV Limited Description: Provide ATV tours to tourists and locals Directors: Wendell Richards Date Filed: 21-Sept-17

Name: QTC Construction & Real Estate Limited Description: Construction and Real Estate Directors: Nathaniel Joseph Date Filed: 21-Sept-17

Name: Breezeway Villa Limited Description: Property Holding Directors: Marcus Joseph Date Filed: 21-Sept-17

Name: Ontrac Telematics Corporation Description: Fleet and Asset Tracking Directors: Lenee Paulraj; Gary Cabral Date Filed: 15-Sept-17

Name: Cascara Residents Limited Description: Property Holding Company Directors: Amanda Jane Cotta Date Filed: 14-Sept-17

Name: Tecnix Construction Inc. Description: Consulting, Contracting, Constructing Directors: Benjamin Drakes; Beverly Drakes Date Filed: 8-Sept-17

Name: Beyond Infinity Investments Limited Description: Citizenship by Investment, Real Estate Investments, Property Holding and Development Directors: Lorne D.C. Theophilus Date Filed: 8-Sept-17

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David Smolansky: “I had to pass through 30 road checks to get out.”

VENEZUELAN POLITICIANS SEEK REFUGE ABROAD

Mr Smolansky’s supposed crime was failing to allow free circulation in his municipality. That was a veiled way of saying he allowed antigovernment street protests this year, when a four-month long series of nationwide confrontations left more than 125 dead and drew international condemnation of government abuses.

“Venezuela is moving from an authoritarian state towards a totalitarian one,” says Mr Smolansky, looking shell-shocked and disorientated amid the skyscrapers of New York. “I have no idea where I will settle. Exile is not easy.”

Mr Smolansky is not alone. As part of Mr Maduro’s clampdown, 11 other mayors have been removed from their posts on trumped-up charges. Five are already in jail, says Mr Smolansky, while seven are on the run or in exile.

Magistrates have gone underground, too. In July, just before the opposition-controlled parliament was usurped by a “constituent assembly”, it nominated 33 independent judges to the Supreme Court. Mr Maduro vowed to arrest them “one by one”.

Within days, the secret police had picked up the first, Ángel Zerpa.

The rest went into hiding. Seven turned up in Colombia last month and have requested asylum. Six more are holed up in the Chilean ambassador’s residence in Caracas. The Chileans have offered asylum but the Venezuelan government refuses to let them leave.

It is the stuff of old-fashioned Latin American dictatorships. “Judicial persecution is being used as a weapon to silence dissent,” says Luisa Ortega, the former attorney-general. A government insider who was stripped of her post in August after she broke with Mr Maduro, she too is now on the run.

After a slow start, the international community has begun to respond.

Big Latin American nations such as Brazil and Mexico, historically reluctant to criticise their neighbours, have taken a tough, united stance.

The US has sanctioned officials suspected of abuses and has said it

BY FT CORRESPONDENTS IN NEW YORK

After a month in hiding and a clandestine three-day road trip through the jungle, Venezuelan politician David Smolansky arrived in New York last week — one more exile from the oppressive regime of president Nicolás Maduro.

“I had to pass through 30 road checks to get out,” says Mr Smolansky, recounting his epic escape across the Orinoco Basin, through the wilderness of southern Venezuela and across the border into Brazil. “I had to

disguise myself. I cut my hair, shaved off my beard and I wore a cap.”

In Venezuela, Mr Smolansky was mayor of El Hatillo, a well-to-do Caracas district. Elected in 2013 as Venezuela’s youngest mayor, he is still only 32. But in August the government-stacked Supreme Court sentenced him to 15 months in jail in summary hearings that New York-based Human Rights Watch said “lacked all due process and guarantees”.

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As part of Mr Maduro’s clampdown, 11 other mayors have been removed from their posts on trumped-up charges.

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is prepared to raise the pressure.

Europe has said it would follow suit unless Caracas moves to restore Venezuela’s subverted constitutional order.

“The international community is finally waking up,” said Tamara Taraciuk, a senior HRW researcher with a special focus on Venezuela.

For Mr Smolansky’s family, though, exile in the face of leftwing persecution is a depressingly familiar theme. His grandparents fled the Soviet Union in the 1920s and settled in Cuba, only to leave half a century later to escape Fidel Castro for the apparent safety of Venezuela, then a rich and democratic country.

When Hugo Chávez came to power in 1999 and set Venezuela on its “revolutionary socialist” course, it was Mr Smolansky’s father who saw the writing on the wall.

“I was only a teenager but I remember his words,” Mr Smolansky recalls. “He said, ‘When someone like that gets into power and is sympathetic to Fidel Castro and communism and prone to demagoguery it will be difficult to get rid of him.’”

So it has proved. Although isolated, Mr Maduro’s government has survived this year’s protests, leaving the opposition on the back foot. The economy is mired in recession, but the “constituent assembly” seems securely installed as a puppet parliament.

To begin to find a way through the impasse, the opposition and the government will supposedly begin a series of mediated talks in the Dominican Republic this week.

“Maduro is getting a strong message from the world,” Panamanian president Juan Carlos Varela told reporters in New York last week. “This time he cannot only use them [the talks] to buy time.”

But few Venezuelans have much hope of significant progress. The opposition’s demand for free and fair presidential elections, due by the end of 2018, seems incompatible with the dictatorial government. Mr Maduro has used previous negotiations to present a façade of dialogue but no more.

Indeed, last week the opposition coalition said it would not attend the talks for fear of a timewasting show.

“It’s tough to be separated from your country and see how the world continues to turn even as your country suffers,” reflects Mr Smolansky as the possibility of his protracted exile dawns.

Copyright The Financial Times Limited 2017

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MAKING

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ALGAS ORGANICS: THE WINNING FORMULA

F

BY KAYRA WILLIAMS

every challenge or problem which confronts us is merely an opportunity, if we take action. This is what inspired me to take the step to start the business.

I had no idea how far it would go.

WHAT MAKES YOUR COMPANY DIFFERENT? JOHANAN: Our story. We are the

Caribbean’s first biotechnology company so when you think of Monsanto and Syngenta and these big agricultural brands, we are right up there, and that’s what makes us different.

When I say our story, it extends even beyond that. We partnered with the Saint Lucia Fisher Folk Co-operative Society to remove Sargassum seaweed which plagues the beaches of Saint Lucia and the wider Caribbean, and convert it to fertilizer. We were able to create a bio-fertilizer, which is internationally tested and even better than some of the imported chemicals.

We’re not just a seaweed company, or a company that makes fertilizer; we work with fishermen in the community who

WHERE ARE YOU EXPORTING TO NOW? JOHANAN: Presently we are cementing distributorship agreements in three Caribbean territories.

North American and African Markets within the next three years.

ARE YOU CURRENTLY LOOKING FOR INVESTORS? JOHANAN: To be frank, yes. The right

investors. As we scale and we start to export and penetrate larger markets, that would be important.

HOW DID THE HURRICANES IMPACT YOUR BUSINESS? JOHANAN: Thankfully we were not

affected by the hurricanes. My heart goes out to Dominica and the other affected territories. We are working on forwarding aid to Dominica through our Caribbean Entrepreneur Group as early as next week.

WHAT LESSONS CAN CARIBBEAN START-UPS AND ASPIRING BUSINESS PEOPLE LEARN FROM YOUR EXPERIENCE? JOHANAN: Pull up your bootstraps as

WHAT DO YOU THINK CONTRIBUTED TO YOU WINNING THE YOUNG ENTREPRENEUR OF THE YEAR AWARD THIS YEAR? JOHANAN: A very good team and

WHAT INSPIRED YOU TO START THIS BUSINESS? JOHANAN: I strongly believe that

Sargassum seaweed processing facility, located at La Caye, Dennery.

WHICH MARKETS WILL YOU TARGET NEXT? JOHANAN: Our goal is to penetrate the

irst registered in 2014, the first product from Algas Organics, Algas Total Plant Tonic – a Sargassum seaweed-based plant tonic, hit the market in August 2015. Two years later, Johanan Dujon, the company’s Managing Director and Founder walked away with the Young Entrepreneur of the Year title at the Chamber of Commerce-hosted Saint Lucia Business Awards, an accolade that was tied to Algas’ innovation and environmental consciousness. Since then, Algas’ team of six, who are “mostly family”, according to Dujon, have focused on keeping the wheels in motion and finding ways to tap into larger markets.

This week, the company’s MD shared the secrets to Algas’ success.

support from a number of organisations such as the Saint Lucia Fisher Folk Co-operative Society, the Global Environment Facility’s (GEF) Small Grants Programme, United Nations Development Project (UNDP) and our partnership with the Inter-American Institute for Cooperation on Agriculture (IICA).

MOVES

much as you can. If you can avoid taking on loads of high up-front expenses, then avoid that. Make prototypes of small batches of whatever you’re doing or, if you’re offering a service option to a small quarter of persons, do so at a discounted price, or for free. You really want to get yourself out there without costs being sky-high. Banks are not necessarily going to come to your rescue either.

Johanan Dujon, Managing Director and Founder of Algas Organics accepting the Youth Entrepreneur of the Year award at this year’s Saint Lucia Business Awards.

YOUR RECIPE FOR SUCCESS? JOHANAN: Planning, teamwork, and

are affected. Farmers get employment, and get to resume some form of normalcy in their livelihood.

WHERE IS THIS SEAWEED COMING FROM? JOHANAN: Sargassum seaweed

normally originates from the Sargasso Sea in the North Atlantic Ocean.

Due to increasing ocean acidity and temperatures, this seaweed breaks up into rafts and is carried by currents through the Caribbean and Mexico.

However, more recently, the Sargassum which we are experiencing has been coming from the North Equatorial Recirculation Region (NERR) North of Brazil and not directly from the Sargasso sea.

WHAT CAPITAL INVESTMENT OR FUNDING ENABLED YOU TO START YOUR COMPANY? JOHANAN: Thanks to funding from

the Global Environment Facility’s (GEF) Small Grants Programme, United Nations Development Project (UNDP) and our partnership with the Saint Lucia Fisher Folk Co-operative Society, our product is made from the world’s first

hard work. My team is amazing. I am just the face of a very, very good team.

Algas Total Plant Tonic is now available island-wide.

We are the Caribbean’s first biotechnology company, so when you think of Monsanto and Syngenta and these big agricultural brands, we are right up there, and that’s what makes us different.

YOUR PLANS FOR THE IMMEDIATE FUTURE? JOHANAN: We do continuous research

and development so you can look out for a bio-pesticide, all natural pesticide, coming out soon.

Our plans are for export; the Saint Lucia market is small, and this is our goal, exporting within the next few months or so.

WHERE CAN WE PURCHASE YOUR PRODUCTS AND HOW DO WE MAKE CONTACT? JOHANAN: The Algas Total Plant

Tonic can be purchased island-wide from Renwick & Co (Castries and Vieux Fort), Massy Mega (Choc), M&C Home Depot, Sunbilt, Groo Farm Supplies (Dennery), Belle Vue Farmers Co-operative (Soufriere) and Farm Depot (Vieux Fort).

We can be reached at 1-758-461-5019 or algasorganics@gmail.com. Feel free to check out our website also, at www.algasorganics.com.

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