Selling Private Islands In The Caribbean: Who Really Benefits?

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SELLING PRIVATE ISLANDS IN THE CARIBBEAN: WHO REALLY BENEFITS? Royal Caribbean this year opened CocoCay on the island formerly known as Little Stirrup Cay, in the Bahamas. Operating on land, the cruise line had leased the sleepy locale within the Berry Island chain before announcing in March 2018 that it would be subject to a US$250 million transformation. CocoCay has created a great new drawcard for Royal Caribbean and has added another destination to the Bahamas’ many tourism attractions, but controversy has also raged.

IN THIS EDITION OF

SBW THE STAR BUSINESSWEEK

Is the Caribbean Brand in Trouble?

There’s a lot of talk in tourism about the ‘Caribbean brand’ but what exactly is the region’s calling card?

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BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT Continued on page 2

Ever since billionaire Jeffrey Epstein was arrested on July 6 on charges of sex trafficking, the media have been scrambling to make sense of what happened on Little St. James, his 70-acre private island in the Caribbean. (Credit: left, by Alston; right,

by Rick Friedman/Corbis via Getty Images.)

Co-operation and Connectivity — the Commonwealth launches a new trade agenda Growth in South-South trade, globalised value chains, regional trading blocs, increasing digitalisation and rising protectionism — world trade has changed dramatically since the Commonwealth was founded seven decades ago.

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In 1986 Admiral Cruises purchased the lease to own and operate Little Stirrup Cay as an “out-island” for its cruises. (This followed the 1977 purchase of neighbouring Great Stirrup Cay by the company now known as Norwegian Cruise Line, which operated it as the first private cruise destination.) Little Stirrup Cay later came under the umbrella of Royal Caribbean Cruises Ltd., and was renamed CocoCay.

Commonwealth leaders meet for CHOGM 2018, held in London.

Photo courtesy Commonwealth Heads of Government Meeting.

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SELLING PRIVATE ISLANDS IN THE CARIBBEAN: WHO REALLY BENEFITS? Continued from page 1

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t surrounds whether CocoCay should truly be considered a Bahamas destination in light of Royal Caribbean’s exclusive use of the island.

Also whether the Caribbean family can trust cruise lines with use of sovereign territory, or whether these are the early days of a worrying new trend.

THE DRAWCARDS OF COCOCAY CocoCay is a cutting-edge island of commercial attractions. From massive water slides and zip-lines, to wave pools, swim-up bars and private cabanas, CocoCay has something for every Royal Caribbean visitor to enjoy.

For many prospective passengers weighing up which cruise line to choose for a trip through the region, the lure of access to CocoCay offers Royal Caribbean a major selling point.

Though CocoCay has won the lion’s share of headlines in this space lately, Royal Caribbean is not the only cruise line to operate a private island, nor even the only one in the Bahamas. CocoCay is joined by Half Moon Cay (AKA Little San Salvador Island) purchased

by Holland America Line, Great Stirrup Cay held by Norwegian Cruise Line, and Castaway Cay, now in the hands of The Walt Disney Company.

For many prospective passengers weighing up which cruise line to choose for a trip through the region, the lure of access to CocoCay offers Royal Caribbean a major selling point.

Though CocoCay has won the lion’s share of headlines in this space lately, Royal Caribbean is not the only cruise line to operate a private island, nor even the only one in the Bahamas.

THE BUSINESS OF BUYING IN THE CARIBBEAN The purchasing power of a global corporation like Disney Cruise Line offers some perspective. The Disney Group earned US$59.43 billion revenue in 2018, clocking $12.6 billion of that in profits. Not only was this up on figures for the previous year ($55.14 billion and $8.98 billion respectively) but it represented a record profit all over. By way of contrast, the Bahamas’ annual GDP during 2017 was US$12.16 billion.

These numbers evidence that there can be no comparison between the wealth of a global corporation and a small Caribbean nation. Of course, making direct comparisons isn’t appropriate. After all, Disney does not boast a navy like the Royal Bahamas Defence Force, and the Bahamas does not operate theme parks around the world. But comparisons and contrasts must be considered when they surround the growing reach and ambition of corporate cruise lines globally, and especially among regions with many smaller nations, like the Caribbean.

In this scenario, the potential for immense economic benefits is offset by the risks of imbalance in the relationship, to the detriment of a nation and its citizens, ie the parties who ultimately should reap the first and largest benefit from their land and its development.

WORKING THE HOLIDAYS The advent of projects like CocoCay can certainly bring more revenue to the national coffers but does this ultimately translate into the best model of revenue dispersion for a nation?

Governments can champion more revenue around budget time (and doubtless put forward a new policy or infrastructure upgrade, based on the extra income, to sell with glitzy PR) but, if the end result is fewer cruise passengers visiting tourism providers at the grassroots level, then the risk grows that cruise line-only islands begin to look less like an economic boon for a nation, and more like a cancer that eats away at the profits tourism providers once relied on.

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CARIBBEAN TOURISM

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IS THE CARIBBEAN BRAND IN TROUBLE?

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

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in bookings from people wanting to cruise around the island and get a glimpse of the property at the centre of so many disturbing allegations.

here’s a lot of talk in tourism about the ‘Caribbean brand’ but what exactly is the region’s calling card? Opinions differ and, as the Caribbean moves on from its reliance on year-round sun to embrace on-trend niches, the Caribbean brand is getting harder to pin down.

The brand may be more complicated in today’s tourism economy, but it’s also more vulnerable. The region’s reputation has taken a hit in recent years thanks to an array of factors both preventable and unavoidable such as hurricanes, shark attacks, escalating crime, poor infrastructure and international scandals.

NICHE MARKETING Early Caribbean tourism was built on three things: sun, sand, and sea. While this three-pronged formula seems tired, overdone and uncompetitive in the modern era, when tropical climates are now easily accessible to all kinds of travellers regardless of income or origin, it was once the bedrock of the regional industry.

But the brand is no longer reliant on the weather. It has broken out of the box to encompass many aspects of today’s changing tourism market.

From wellness to eco-tourism, savvy stakeholders are learning how to use the region’s natural attributes to target on-trend sub-sectors.

In one sense, Caribbean tourism has come full circle. As the health and wellness sector enjoys renewed attention, Caribbean islands once again find themselves the destination for visitors looking to relax, detox and heal. Except that today’s visitors are no longer content to just soak up the sun to cure their ailments.

Health and wellness consumers want a fully-immersive experience, heading to spas that use natural, local ingredients in their products, staying at environmentally-ethical resorts that eschew chemicals and seeking out meditative spaces where they can disconnect.

Visitors looking for wellness are also likely to favour ‘green’ getaways where they can enjoy the destination’s unique flora and fauna, whether through diving trips, bird-watching excursions or kayaking tours. This growing interest in nature vacations, combined with the region’s unique biodiversity, has made eco-tourism

Endemic to St Lucia, the Amazona versicolor, otherwise known as the St Lucian Jacquot or parrot, is the national bird of the island. Its population has been steadily increasing as a result of successful conservation efforts, with an estimated current population of 350-500 mature birds. (Photo: Mikko Pyhälä Source: https://www.iucnredlist.org)

an important part of today’s Caribbean branding.

REPUTATIONAL RISK The brand may be broadening its base, but it’s also at risk. The Caribbean has been making the headlines for all the wrong reasons lately. First came the spate of alleged poisonings in the Dominican Republic. According to the US State Department, three Americans died of respiratory failure while staying at the exclusive Bahia Principe hotel, while several others complained of being poisoned by drinks. The international press had a field day and speculation ranged from tampered alcohol to heavy pesticide use. The island’s Tourism Minister pushed back, claiming that the number of deaths was “statistically normal” and pointing out that autopsies showed the victims died of natural causes.

Investigations continue but the story, which spread fast and wide over social media, had already done its damage, with the American Society of Travel Advisors telling Forbes that 60 per cent of its members had cancelled trips to the DR. In June, the media were again in a frenzy, this time over a horrific shark attack in the Bahamas. College student Jordan Lindsey was ripped apart by three sharks during a snorkelling trip and died at a Nassau hospital. The family of the 21-year-old claimed the tour operators had no basic medical equipment and were slow to respond in the immediate aftermath of the tragedy. Shark attacks are rare and sometimes unavoidable, but the incident raised questions about the training and oversight of tour providers.

From one kind of predator to another.

As the FBI continues to investigate sex trafficking claims against the now deceased billionaire Jeffrey Epstein, law enforcement has zeroed in on the financier’s private island . . . in the Caribbean. Already tarnished by its image as a tax haven for the world’s wealthiest, the Caribbean now appears to provide shelter for those who want to commit heinous crimes in the safe isolation of their tropical hideaways.

However, following the adage that all press is good press, ‘paedophile island’, as the outcrop in the US Virgin Islands is now known, has attracted a macabre type of tourism. Boat charter companies in nearby St Thomas have noticed an uptick

In one sense, Caribbean tourism has come full circle. As the health and wellness sector enjoys renewed attention, Caribbean islands once again find themselves the destination for visitors looking to relax, detox and heal. Except that today’s visitors are no longer content to just soak up the sun to cure their ailments

PROTECTING THE BRAND Despite these various controversies, there’s no doubt that Caribbean tourism is on the upswing. Just under 30 million tourists poured into the islands last year, according to the Caribbean Tourism Organisation (CTO), and the Caribbean took a 2.1 per cent share of the global tourism market.

Tourism as an industry has always been known for its resilience and flexibility. The beauty of a brand is that it can change over time in response to demand. As new niches come to the fore — cannabis tourism, medical tourism, experiential tourism — the Caribbean can carve out a place in these new sectors; provided it avoids more negative press.

While there are some hits to the brand that Caribbean tourism leaders simply cannot prevent (devastation wreaked by hurricanes, outbreaks of tropical diseases such as Dengue Fever, tourist accidents), there are many more that they can.

The Caribbean is well-known as a high crime area and the deaths in the DR, along with claims of tourist assaults, only add to its dangerous reputation. Saint Lucia has also had its fair share of lurid headlines, with the high-profile murders of British citizens Robert Hathaway and Roger Pratt.

In 2014 the island was named one of the Top 10 Most Dangerous Cruise Destinations in the World by Cruise Law News.

The high crime has led the US to issue yearly crime warnings, covering almost the entire region. While Saint Lucia has avoided inclusion on the latest list, other destinations haven’t been so lucky. The State Department urges tourists travelling to the Bahamas, Jamaica, the Dominican Republic and Trinidad and Tobago to “exercise increased caution”.

Addressing crime, modernising infrastructure, tightening oversight of tourism operators and having effective disaster preparedness and response strategies in place — these are all steps that destinations can take to not only increase their own share of the market, but also present a united front when building a regional brand. The CTO slogan ‘One Caribbean’ isn’t just a marketing gimmick, it’s a reminder that a blight on one destination SBW affects all islands.

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SELLING PRIVATE ISLANDS IN THE CARIBBEAN: WHO REALLY BENEFITS? Continued from page 2

The Bahamas has been badly affected by the violations of Carnival Corporation & pic, mainly related to sewage and food waste. In one July 2017 instance, the Carnival Pride ship dumped 15 pounds of food waste by Half Moon Cay, the company’s private island used as a beach for cruise ship passengers. One month later, the Grand Princess cruise ship (operated by Princess Cruises, which is owned by Carnival Corp.) arrived at port in Ketchikan, Alaska with a dead humpback whale on its bow. The incident report noted that Carnival Corp. ships have a history of striking whales in Alaskan waters.

PUBLIC AND PRIVATE PARTNERSHIPS New developments can drive new interest in visiting a destination. With plane travel, save for a stopover or two in an airport, the end-destination is always the locale for primary spending of the tourism dollar. However, many cruise passengers will happily visit an island like CocoCay alongside other destinations, aiding the flow-on effect of the tourism dollar. But recent research indicates that cruise passengers are spending more money onboard cruise ships, at stores and casinos, and less money in the actual cruise destinations.

One benefit of cruise-line islands has already been seen this month. While the carnage of Hurricane Dorian has been harrowing, the ongoing presence of Royal Caribbean, via CocoCay, ensured it would be present as a stakeholder in hurricane preparations, and thereafter in the management of recovery and return to trading. Were it not for CocoCay, such resources would not be on-hand, and administration in such events would typically reside with public authorities alone.

INDIVIDUALS AND CORPORATIONS Private island ownership and use in the Caribbean isn’t new. Many celebrities,

such as Richard Branson and Johnny Depp, have expanded their real estate portfolios with private island ownership.

But the private use of an island by a visiting celebrity — even when allowing

New developments can drive new interest in visiting a destination.

With plane travel, save for a stopover or two in an airport, the enddestination is always the locale for primary spending of the tourism dollar. However, many cruise passengers will happily visit an island like CocoCay alongside other destinations, aiding the flow-on effect of the tourism dollar

for their entourage and collection of A-list friends — is unlikely to render the environmental damage that mass commercial use of an island could do.

The concerns voiced surrounding the acquisition and private use of islands by cruise lines has come alongside numerous pollution scandals in the industry, from the use of fuel with excessive sulphur levels, to the $40 million fine levied on Princess Cruises in the US in 2016 for the use of a ‘magic pipe’ to illegally dump fuel in the ocean.

There is no suggestion here that any illegal conduct is currently occurring among any of the privately used islands listed in this article. Yet, many in the Caribbean family watch the growth of infrastructure in these privately held islands, with optimism about the economic benefits it can bring, but anxiety about the long-term damage any mismanagement could cause.

A PRIVATE ISSUE FOR THE PEOPLE It is estimated that there are over 7,000 islands within the Caribbean archipelago. It’s no quip to suggest that many Caribbean nations would hardly notice if a small number were to be leased away for a couple of decades.

And doing so could help drive new

development of infrastructure, economic growth and stronger ties between tourism departments and cruise lines in a region of hot competition.

However one looks at such a dynamic, the agreement to lease comes with a substantial weight behind it, even if the territory involved is small. Indeed, any time a nation travels this path in any commercial venture, it can raise the same questions and anxiety surrounding security that the establishment of a foreign power’s military base can generate.

For the Caribbean this issue is particularly vivid. Local governments and business communities recognise that the future must involve the pursuit and greater anchoring of global commercial links within the region in order to maintain economic growth, and build upon it further. Yet should this progress come at the expense of territorial sovereignty, especially when coupled with concerns surrounding citizenship by investment programmes, then support for such a course of action would be limited.

In any future arrangements with cruise lines for private islands, the challenge for regional leaders is to make the case that deals can be done without risking or diminishing territory. This will please the optimists but, watching operations on islands currently in private use, will it be enough to dispel anxiety?

COMMERCIAL WHALING

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THE DEPTHS OF THE CARIBBEAN’S WHALING ISSUE

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

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ecent months have seen the resumption of commercial whaling by Japanese ships. For prowhaling authorities in Japan, this is a return to normalcy after three decades when the Asian nation continued to whale under the auspices of ‘scientific research’, but did so in more limited quantities owing to international pressure.

For critics, this is a horrific return to the bad, old days of whaling when the practice occurred with no consideration of the environmental effects — something that is recognized even more in 2019 than it was in 1989.

Whaling today is an issue whereby international trends are driving new dynamics in the Caribbean. In order to understand where the region goes from here, it’s crucial to understand the local impact of global changes.

HOW WE GOT HERE In the late 1980s commercial whaling largely ceased within the international community. Despite this, some nations continued, for varying reasons. While Japan argubally bears the brunt of international outcry given the prominence of its programme, it is not the only nation that has continued to whale.

The reasons the Japanese government supports commercial whaling are complex. Over time, substantial opposition to the practice has grown among Japanese, especially younger generations, yet Japan’s present advocacy for commercial whaling is an issue of anguish for many globally.

Of the nations that have continued whaling, only Norway has direct comparisons to Japan, issuing a permit to catch 1,278 whales in 2018.

Other countries, such as the United States (within Alaska), Canada and Denmark’s self-governing territory of the Faroe Islands, have continued hunting under the umbrella of ‘tradition’. The number hunted by each nation varies each year, but typically is around 500 or under.

Countries that allow aboriginal whaling as part of tradition may not be supported by people abroad but the link between tradition and the justification for whaling on the part of its supporters is generally pretty clear. Many of the tribes that continue to whale live a deeply traditional way of life.

Within the Caribbean, whaling has continued in some instances beyond the 1980s, yet the justification for it, based on tradition, has been challenged in recent years, especially

Shocking pictures show orcas chopped up for food in St. Vincent after being harpooned in front of horrified whale-watching cruise-goers (Source: Adam Gravel)

given the real risks that tradition poses to the present and future generations of the Caribbean family.

THE ST VINCENT AND THE GRENADINES STORY St Vincent and the Grenadines is the most prominent example of the whaling debate in the Caribbean today, owing to aboriginal whaling clashing with tourism. It has also delivered up damaging scenes for the nation’s tourism industry, as in 2017 when tourists on a whale sightseeing boat witnessed three whaler men kill two orcas.

In the fallout, Thomson Cruises cancelled all future whale tours in St Vincent and the Grenadines and said it would not offer such tours again until whaling is banned by the government. Like so many other Caribbean countries, tourism is an essential lifeblood to the economy of St Vincent and the Grenadines.

Given the competition in the region for the tourism dollar — based on the promise of pristine beaches, luxury accommodation and a vibrant culture to explore — any bad press or setback to a country’s image can have a damaging impact on income, given the abundance of choice of tourist destinations.

Beyond simply shielding tourists from a bloody sight, there has also been concern surrounding the effective

regulation and administration of whale hunting. For example, claims were put forward in 2001 that hunters had illegally killed numerous calves, which they were not authorised to do.

JAPAN AND THE CARIBBEAN The resumption of commercial whaling

by Japan comes after many years of aid from the Japanese International Cooperation Agency (JICA) to members of the International Whaling Commission that are classified as microstates, such as Saint Lucia (which joined the IWC in 1981 following independence from Great Britain), St Vincent and the Grenadines and Grenada.

JICA has, by many measures, been a positive force for good in the Caribbean.

Indeed, in the 1990s JICA was the single biggest distributor of official development assistance in the world.

Although it was subsequently surpassed by other nations in this field, Japan has remained an important contributor, providing more than US$5 billion in loans during 2012 alone. As a result, JICA has been a prominent wing of Japan’s foreign relationships abroad, and is a key reason why many citizens of countries that are a great geographical distance from Tokyo hold a personal affinity with the Land of the Rising Sun. On the perception of Japanese influence and ‘aid for votes’, Dr.

James Fletcher made comment in 2001 when he was Saint Lucia’s Permanent Secretary in the Ministry of Agriculture, Forestry and Fisheries. Dr Fletcher noted, “Much has been made of the aid provided by the Government of Japan to St. Lucia and other Caribbean countries, including accusations that this aid is offered as bribes for the votes of the Caribbean . . . the fact is that Japan extends economic aid to over 150 countries, among these being very strong anti-whaling nations like Brazil and India.”

Even allowing for different respective relationships between regional nations and Japan, official linkages have been made between aid and votes, such as in 2015 when Prime Minister Gaston Browne of Antigua & Barbuda said that his government continued to support Japan internationally “even on the controversial issue of whaling” and that it did so “knowing that you [Japan] have been a good development partner”.

Nations in the Caribbean will increasingly face a growing chasm between the traditional whaling practices in the region and support for Japan. They have aspirations to keep growing the region’s economy via tourism and, in turn, promote strong action on combatting climate change which threatens the future viability of Continued from page 6

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COMMERCIAL WHALING / COMPANIES OFFICE commercial whaling but there are some aspects that could offer a measure of hope.

Having done away with the auspices of ‘scientific whaling’, Japan now faces direct criticism and pressure from the international community. What’s more, Japan will focus its whaling efforts within its own territorial waters (including the surrounding 320 kilometres of waters that serve as an exclusive economic zone).

There are also doubts about whether commercial whaling is even sustainable in 2019, with an expected lower market demand. It won’t be clear for some time whether this is the case but, as opposed to Japan’s resumption kicking off a whole new era, it could ultimately become a decisive last chapter in its commercial whaling history.

THE DEPTHS OF THE CARIBBEAN’S WHALING ISSUE Continued from page 5

St Vincent and the Grenadines, 2017: Fishermen butchering orcas, drying the flesh and boiling excess blubber down to extract oil. Captains of cruise ships attempted to steer away from the scene as loud explosions were heard when harpoons were fired into the killer whales. Onlooking whale-watching tourists were brought to tears.

the Caribbean as a whole. On this basis, Japan’s aid work in the region can be seen as counterproductive, on the one hand granting aid that

helps local fisheries, and on the other, seeking to enhance whaling that would fundamentally alter the ecosystem and cause immeasurable damage.

A NEW BEGINNING OF THE END? Conservationists and animal rights activists may be anguished over Japan’s return to

WHALING FOOD FOR THOUGHT For Caribbean nations, the ongoing whaling is a difficult issue when it comes to the broader efforts within the region to promote conservation and combat climate change.

Just as commercial whaling is a bloody exception to Japan’s image as bubbly and friendly, regional nations seeking to raise international awareness of environmental issues may increasingly find that continued whaling practices diminish the sympathy for their wider cause of sustainability.

The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: Patriot Liquidating Ltd. Description: Retail of construction, power and heavy-duty equipment Directors: Jason Lee Wilson Date Incorporated: 7/8/19 Chamber: Brickstone Law

Name: The Education Station Inc. Description: Learning centre for children ages 5-12 Directors: Sylvester Clauzel, Cypriani Norville, Damian Adjodha Date Incorporated: 23/8/19 Chamber: The Jacobian Law Office

Name: FAYE Gastronomie Caraibes Ltd. Description: Import and retail of fine food and beverages Directors: Sophie Chretien, Louis Faye Date Incorporated: 19/8/19 Chamber: John & John Name: MAS Premium Paints Ltd. Description: Retailing of paint and consumables Directors: Adam Rostant, Matthew Devaux Date Incorporated: 22/8/19 Chamber: RDM Chambers Name: Allcools Inc. Description: Installing, maintaining and repairing of air-conditioning equipment Directors: Calixtus Lorde Date Incorporated: 23/819 Chamber: Brickstone Law

Name: Pearl Consulting Group Inc. Description: Housing solar energy, promoting energy through waste management associated with its activity Directors: Earl Francis, Elisha Hunte Date Incorporated: 23/8/19 Chamber: Messrs. Monplaisir & Company Name: Seraphine Bay Front Inc. Description: Hospitality services Directors: Karen Peter Date Incorporated: 28/8/19 Chamber: Gaillard-St. Rose Chambers Name: Mitchell’s Investment Limited Description: Property holding Directors: Clive Mitchell, Janella Mitchell, Ryan Mohammed, Janqiue Mitchell, Aldwyne Alexander, Gregory Raveneau Date Incorporated: 30/8/19 Chamber: Fosters Chambers

INTERNATIONAL TRADE

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CO-OPERATION AND CONNECTIVITY — THE COMMONWEALTH LAUNCHES A NEW TRADE AGENDA

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

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rowth in South-South trade, globalised value chains, regional trading blocs, increasing digitalisation and rising protectionism — world trade has changed dramatically since the Commonwealth was founded seven decades ago.

While not a formal trading bloc, Commonwealth members have always enjoyed mutually beneficial trade links.

Commonwealth countries trade around 20 per cent more between themselves than externally and generate 10 per cent more investment with each other than with non-members. Within the Commonwealth, bilateral trade costs are, on average, 19 per cent lower. Building on this long-shared history of economic partnership, Intra-Commonwealth trade is projected to reach US$700 billion by 2020. To ensure this level of growth is sustainable, and the benefits widely felt across all member countries, the Commonwealth is introducing a new trade strategy that aims to increase cohesion and target new opportunities.

PRIORITY AREAS The most recent Commonwealth Heads of Government Meeting (CHOGM) took place in April last year and trade took a central role in the discussions.

Launching the Commonwealth Connectivity Agenda for Trade and Investment (CCA), the CHOGM chose to focus on six priority areas: digital, physical, regulatory, supply side and business-to-business connectivity, and sustainability and inclusivity.

“These areas were chosen because they represent the building blocks of success in the Fourth Industrial Revolution,” explains Kirk Haywood, Legal Adviser Trade & Lead for the Commonwealth Connectivity Agenda, Trade, Oceans and Natural Resources Directorate. ‘The objective is to ensure that the Caribbean is not left behind. As Caribbean governments deal with the issues of today, the Agenda provides a pathway to future-proof their economies by seeing what is going on in other Commonwealth countries so that lessons can be learned from both the success and failures of others.”

As the Agenda is rolled out, over 75 ministries and regulators from 35 Commonwealth countries will collaborate on establishing good regulatory practices, supporting medium and small-sized enterprises in agriculture and fisheries, engaging with the private sector and attracting investment in digital infrastructure to better build digital economies.

Commonwealth leaders meet for CHOGM 2018, held in London. Photo courtesy Commonwealth Heads of Government Meeting.

It’s the last component that can be a sticking point in the Caribbean where digital capacity is not as fully developed.

Haywood says Saint Lucia is above average in terms of the number of internet users in the country (52 per 100 people compared with the Commonwealth average of 43 per 100) and fixed broadband subscription (15 per 100, above the 10 per 100 average).

However, the country under-performs in other areas, such as firms using email to interact with clients and suppliers — 54 per cent of companies, compared to a Commonwealth average of 67 per cent.

“This mixed picture, which is not unique to Saint Lucia, means that there needs to be targeted actions by all stakeholders,” says Haywood. “The pace and scale of the digital revolution will eventually touch every sector that is involved in exports and growth. For the Caribbean, where creating globally competitive manufacturing and agriculture sectors remains a challenge, and which has a workforce that is highly educated relatively to other developing countries, the current digital revolution presents significant opportunities.”

For Saint Lucia, which exports around 55 per cent of its digitalised products to other Commonwealth members, the biggest opportunities lie in targeting the Asian market as well as the ‘green tech’ agriculture niche. There is also a need to implement new training systems to build digital skills in all industries.

Haywood says the country can learn from its Commonwealth colleagues in devising the best strategies and infrastructure for growth. “The CCA brings the best knowledge from regions of the world the Caribbean has not traditionally been able to hear from directly. Here the experiences from Africa, Asia and the Pacific have particularly good lessons for the Caribbean.

“Once we know what policies work and what doesn’t, then we need to encourage domestic reform. No organisation outside a country can force a country to reform, but the Commonwealth — both the Secretariat and the other members — can act as partners along that journey to ensure that those who are willing are able to undertake the reform journey.”

DISPARITY The Commonwealth comprises 53 countries, adding up to a plethora of trade opportunities. Spread across the globe, the member countries include developed nations, such as Britain, Australia and New Zealand, alongside emerging economies such as South Africa and Small Island Developing States in the Caribbean.

This disparity of development almost ensures an uneven playing field, and such an imbalance can be the death knell for mutually beneficial trading relationships.

The answer, according to Dr Brendan Vickers, Adviser and Head, International Trade Policy Section, Trade, Oceans and Natural Resources Directorate, is to adopt a regional approach. “The Commonwealth is an extremely diverse group. SIDS especially face structural challenges. These include diseconomies of scale, limited human resource capacity, inadequate infrastructure and disproportionately high trade costs.

SIDS need to strengthen regional integration to address the constraints to small market size, take advantage of growing SouthSouth trade; build or deepen comparative advantages in services trade; and, more strategically, direct Aid for Trade resources towards diversifying and developing competitive export sectors. They need to build their productive capacity and tackle supply side bottlenecks to improve their participation in world trade.”

SHIFTING LANDSCAPE Multilateral trade has fallen out of favour in recent years, fuelled by a new spirit of nationalism. In the global context, this is evidenced by President Trump’s desire to pursue bilateral trade rather than multilateral agreements, the WTO struggling to retain its influence, and Britain withdrawing from the European Union. Regionally, CARICOM is not faring much better as it engages in endless back and forth about the merits and implementation of the CSME. “The Commonwealth and its member countries are concerned by the rise in global protectionism and have called on countries to resist such measures,” says Vickers. “The Commonwealth has always championed free trade in a transparent, inclusive, fair and open rules-based multilateral trading system as the foundation for economic growth and sustainable development. Despite the challenges, there have been some important outcomes for the multilateral trading system; these include the Trade Facilitation Agreement, which most Commonwealth members of the WTO have now ratified, and the broader WTO-led Aid for Trade initiative, which Caribbean countries can use to help strengthen their institutional, policy and governance capacities for trade.”

The trading environment has always fluctuated according to attitudes, politics and economic need. Making the Caribbean ready and resilient is a core part of the Commonwealth’s Connectivity Agenda. Before next year’s WTO Ministerial Conference, the Commonwealth Secretariat will convene a regional consultation for Caribbean members where they can discuss and debate the Agenda’s key issues.

Vickers says: “The technologydriven Fourth Industrial Revolution is escalating the fragmentation of production processes; trade in intermediate goods and services is growing; and cross-border relationships between firms, governments and other stakeholders are shifting. All of these are contributing to fundamental — and probably irreversible — changes in the character and composition of global trade.

“Working in partnership with the CARICOM and OECS Secretariats, the Commonwealth is assisting Caribbean member countries to assess the implications of these new dynamics for their national and regional trade policies, and how Caribbean countries can meaningfully participate in this SBW shifting global trade landscape.”

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