STAR Businessweek - 16 December 2017

THE STAR BUSINESSWEEK DECEMBER 16, 2017

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Beyond issues of diplomatic crisis, certain passports can simply make travelling easier

China signs 99-year lease on Sri Lanka’s Hambantota port Sri Lanka has formally handed over its southern port of Hambantota to China on a 99-year lease, which government critics have denounced as an erosion of the country’s sovereignty.

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CITIZENSHIP ARBITRAGE

THE CIP INDUSTRY AT A GLANCE

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

Not all CIP programmes are made equal. This, especially so in the Caribbean. The region is a global epicentre for CIP programmes. It is also attractive as, across our many nations, stable democracies, open economies - even a great climate and diverse cultures! - all attract investors. But how do CIP programmes actually work in-depth?

And how does someone actually use one?

Continued on page 4

World Bank warns of ‘global learning crisis’

The drive to get more children in developing countries into schools has failed to deliver real educational improvement, with the achievement of children in poor countries still lagging far behind that of their peers in the rich world, according to the World Bank.

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THE ORANGE ECONOMY Leveraging Caribbean culture for economic growth

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

The STAR Businessweek

BY CHRISTIAN WAYNE – EDITOR AT LARGE

The Caribbean’s experiences with imperial colonisation and the brutal history of the Transatlantic Slave Trade that saw millions of people from across the globe relocated—forcibly and otherwise—to the unchartered islands and continents of the New World, is why the region is one of the most diverse on the planet today.

Sure, we have the amazing beaches, rainforests and year-round sun but it’s that shared history that bonds each of our islands together and our cultural diversity that makes our region unique.

Together, culture and the creative industries are known as the ‘Orange Economy’ and, according to a new Inter-American Development Bank report, the Latin American and Caribbean orange economy was worth US$175bn in 2011, with Saint Lucia having one of the strongest creative sectors in the Caribbean! See The Orange Economy here on page 2.

In the second instalment of our series on Citizenship by Investment Programmes, The STAR Businessweek poses the rudimentary question: Who is actually taking advantage of Caribbean CIP programmes and what is the typical customer motivation for purchasing a second (or third!) citizenship? Be sure to read Citizenship Arbitrage on pages 1 and 4.

Happy belated National Day Saint Lucia!

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The Caribbean is one of the most diverse regions in the world thanks to its unique history. Over the years the islands have been home to native Tainos, Arawak Indians, and the colonial Dutch, Spanish, French and English. Today this melting pot of influences can be seen and felt in the region’s architecture, art, cuisine and music.

Capitalising on this rich culture is a must, given that cultural and creative industries (also known as the ‘orange economy’) have the potential to generate billions for the Caribbean each year.

WHAT IS THE ORANGE ECONOMY?

Professor John Howkins was the first to popularise the notion of the creative economy in 2001 when he published a book outlining how economies could be based on imaginative ideas, rather than traditional resources. He further defined it as all sectors whose goods or services are based on intellectual property, such as architecture, advertising, crafts, publishing, performing arts, music and design.

Creative goods and services are the fifth most traded commodity on the planet, worth an estimated US$646bn in 2011. It is also a less volatile market than most industries, capable of weathering the financial crisis as well as fluctuating oil prices and energy costs. Harnessing the region’s heritage not only generates employment and capital in an often overlooked area, it can also strengthen regional and domestic economies.

In 2011 the Latin American and Caribbean orange economy was worth US$175bn according to the Inter-American Development Bank (IDB), and had exports totaling US$18.8bn. Saint Lucia had one of the strongest creative sectors in the Caribbean, contributing 8 per cent to the country’s overall economy and boosting employment by 4.4 per cent.

SUPPORTING INNOVATION

Writers, musicians, actors, entrepreneurs, investors and curators - the orange economy has a wide reach and encompasses people from all walks of life. The uniting feature of these orange producers, however, is innovation.

While there may be a wealth of innovation and ingenuity in the Caribbean, it is not always easy to monetize that talent. The region’s innovative entrepreneurs have long been stifled by lack of access to capital, unfavourable business processes, the high cost of energy, a lack of resources and inadequate infrastructure. It is difficult to

convince financial institutions to invest in creative endeavours as they are typically seen as very high-risk. Banks find the high sunk costs off-putting, and are unwilling to invest in ideas, especially given the unpredictability of the market. Orange economy consumers can be a tough sell, with many unable to recognize the cultural value of a product.

To overcome these obstacles and truly grow the orange economy, it is vital that it receives institutional support from governments and public policy bodies at both the local and regional level. However, a sector characterized by creativity and innovation can be difficult to fit into the traditional economic template. Developing an adequate framework for the creative industries means adopting an equally creative approach.

One of the top priorities for Caribbean states must be developing strong Intellectual Property law to protect producers. Saint Lucia has been progressive in this regard with a suite of legislation including the Trade Marks Act 2001, Patents Act 2001, Industrial Designs Act 2000 and the Copyright Act 1995, which was amended and updated in 2000.

Once the necessary legislation is in place, governments must then look at what they can do to fiscally support the sector. This can take the form of grants, training, tax incentives, investment in R&D efforts and creating accelerators and incubators to support entrepreneurs. It’s also important to showcase each island’s talents with national festivals and other arts and culture-related events.

In Saint Lucia many of these activities fall under the purview of the Cultural Development Foundation (CDF) which was established in 2002 under the Cultural Development Foundation Act 2000. The CDF’s mandate is to celebrate Saint Lucia’s culture, while simultaneously growing it as a business. It does this through training initiatives, promotional activities and marketing. The Foundation also hosts a number of events including Carnival, Festival of Flowers and the National Arts Festival.

All of which helps to spread the word about the opportunities available in the orange economy. Growing jobs in this area is a priority for Saint Lucia, whose unemployment rate hit 21.6 per cent in 2016. It also dovetails with the country’s new push for more heritage tourism. With the Saint Lucia Tourism Authority (SLTA) reviving the concept of ‘village tourism’, it is hoping to open up more opportunities

for small, creative producers who are able to offer tourists something uniquely Saint Lucian. The new generation of millennial travellers want history and culture along with their beach getaway, and this shift in consumer attitude opens up a profitable avenue for island creatives.

DIGITAL DRIVERS

Producers and supporters of the orange economy will have to work fast, however, as the landscape is already changing. As we head into a more digital age, the widespread use of technology, and its constant evolution, is shaping every aspect of life in the region - from how we bank to how we create. The internet gives creative producers access to a global market, as well as fostering collaboration between artists, producers and creative communities. It also offers artists a digital toolbox. The art, architecture, music, fashion and film of the future will use innovative technologies such as 3D printing, Artificial Intelligence and virtual reality. In a competitive market, the ones most at ease with the new media will be the ones who succeed.

So what does this mean for the Caribbean?

The region has to ensure it understands, implements and gives its artists access to digital infrastructure. It must capture traditional knowledge, and learn how to repackage it for a new generation. This will include improved data collection and analysis to give governments a better picture of how the orange economy has developed, and enable them to identify further areas of growth. A new regional marketplace should be explored, which will help countries build their own brand and collaborate, where possible, with other producers across the Caribbean. Social media is also a crucial area that can yield further growth by giving artists a wider audience and new pathways to their consumers.

In the past, creative industries were often sidelined as a ‘luxury’ product - something that took a back seat to basic goods and services. Now countries across the world are waking up to the potential in the orange economy. For too many years culture in the Caribbean meant carnival, but times are changing. In the past decade, the region’s innovators, entrepreneurs and creative producers have made a huge and growing contribution to the Caribbean economy.

This growth can only continue with the correct institutional support. Governments, businesses and communities must work together to leverage their homegrown talent, and ensure a sustainable and inclusive future.

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© The Financial Times Limited [2017]. All Rights Reserved. Not to be redistributed, copied or modified in anyway. Star Publishing Company is solely responsible for providing this translated content and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation

CHINA SIGNS 99-YEAR LEASE ON SRI LANKA’S HAMBANTOTA PORT

BY FT CORRESPONDENT

But some have accused Beijing of using projects such as this to increase its regional political power, noting the length of the lease agreed by Sri Lanka is the same as that which gave Britain control over Hong Kong in the 19th century.

Constantino Xavier, a fellow at foreign policy think-tank Carnegie, said: “This is part of a larger modus operandi by China in the region.

“Beijing typically finds a local partner, makes that local partner accept investment plans that are detrimental to their country in the long term, and then uses the debts to either acquire the project altogether or to acquire political leverage in that country.”

Struggling to pay its debt to Chinese firms, the nation of Sri Lanka last week formally handed over to China the strategic port of Hambantota on a 99-year lease

Sri Lanka has formally handed over its southern port of Hambantota to China on a 99-year lease, which government critics have denounced as an erosion of the country’s sovereignty.

The US$1.3bn port was opened seven years ago using debt from Chinese state-controlled entities. But it has since struggled under heavy losses, making it impossible for Colombo to repay its debts.

In 2016 Sri Lankan ministers struck a deal to sell an 80 per cent stake in the port to the state-controlled China Merchants Port Holdings.

But that agreement sparked protests from unions and opposition groups, forcing the government to renegotiate it. Under the new plan, signed in July,

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the Chinese company will hold a 70 per cent stake in a joint venture with the state-run Sri Lanka Ports Authority.

Ranil Wickremesinghe, Sri Lanka’s prime minister, welcomed the deal during the official handing over ceremony at the weekend. He said: “With this agreement we have started to pay back the loans.

Hambantota will be converted to a major port in the Indian Ocean.

“There will be an economic zone and industrialisation in the area which will lead to economic development and promote tourism.”

But the renegotiated plan has failed to quell dissent within Sri Lanka. When it was first signed Namal Rajapaksa, Hambantota’s MP and son of former president Mahinda Rajapaksa, tweeted: “Government is playing

10.5%

year on year increases US, UK, FRANCE, CANADA & THE CARIBBEAN markets all recorded increases

geopolitics with national assets? #stopsellingSL”.

For Beijing, the Hambantota project is a lynchpin of the “One Belt One Road” project, which aims to build a new Silk Road of trade routes between China and more than 60 countries in Asia, the Middle East, Africa and Europe.

That project is underpinned by a network of harbours across the world that have put China in a position to challenge the US as the world’s most important maritime superpower. Other similar developments in the region include the Gwadar port in Pakistan, which is the centrepiece of the $55bn China-Pakistan Economic Corridor.

39% 61%

for the Caribbean

for France

6th consecutive month of double digit % increases

For Beijing, the Hambantota project is a lynchpin of the “One Belt One Road” project, which aims to build a new Silk Road of trade routes between China and more than 60 countries in Asia, the Middle East, Africa and Europe New Delhi has become so concerned about Beijing’s plans at Hambantota that it has entered into talks with Sri Lanka to operate an airport nearby.

In recent months, however, there have been signs that China’s partners are starting to become wary over the terms being dictated to build projects under the One Road banner.

Pakistan, Nepal and Myanmar have all recently cancelled or sidelined major hydroelectricity projects planned

by Chinese companies. The projects would have been worth a total of US$20bn.

19% increase in Stayover arrivals from November 2016

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CITIZENSHIP ARBITRAGE

Beyond business alone, CIPs also offer some benefits that might otherwise not be apparent

The CIP Industry at a Glance

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

Continued from page 1

These questions are vital to any fair assessment of the world of CIPs. For while it is not breaking news that such programmes are controversial, they can also have benefits. Further, given the profit many CIP programmes have generated for local governments in the region, many nations would rue the lost profits were their CIP programmes cancelled. The key issue is, at what cost do CIP programmes come to a nation’s business community, and national life as a whole? For Caribbean nations, identifying the virtues and potential issues for reform are essential to the future of CIP programmes.

CITIZENSHIP RECAP

As discussed in a previous article (From Westphalia to the West Indies) on November 4, the concept of citizenship is fluid. The strength of each nation’s passport can also be fluid. While essentially every nation will seek to offer some form of consular support to a citizen abroad in trouble, the strength of that support can vary.

The influence and resources of a nation like the US, France or Japan means holding one of their passports can dramatically raise your odds of obtaining practical help in a crisis. Or at least be the difference between getting sent home or put in a jail.

This is not only due to the diplomatic and economic power of these nations, but also simple logistics.

Many of the world’s smallest countries don’t maintain official embassies and consulates in nations around the world, instead often relying on a friendly nation for diplomatic support. For example, a citizen from Malta travelling in a remote part of the world may be directed by the Maltese Ministry for Foreign Affairs to visit the Italian embassy in the event of

a crisis. From there a diplomatic solution could be sought through appropriate channels.

CAN I GET IN?

Beyond issues of diplomatic crisis, certain passports can simply make travelling easier.

It’s not news that many nations in the Middle East hold some strained relations with their neighbours. In some instances, this has seen an outright ban imposed on travellers looking to enter nation A if travelling under a passport from nation B. The politics of these bans are complex, but the impact on business is clear.

So, whether an applicant is from a Middle East nation or elsewhere, a passport acquired via a Caribbean nation offers the potential to circumvent a ban. A passport from this region can also provide greater freedom and peace of mind to its owner than is available in their native nation.

Though President Xi may herald China’s ruling Communist Party as the key driver of China’s economy, Chinese citizens are presently the biggest national market for CIP programmes.

With over 100,000 Chinese spending in excess of US$24 billion on CIPs in the past 10 years, it’s clear that many affluent Chinese hold concerns about the long-term security of their wealth in China. So, too, potentially their personal safety in a Xi-led China, by many measures growing more authoritarian year by year.

WHAT DOES IT MEAN FOR THE CARIBBEAN ON A LOCAL LEVEL?

These factors have shown the attraction of the Caribbean and CIPs generally to global citizens.

The two key questions now are: What it is about CIPs that entice Caribbean governments to create them? What issues exist that need to be addressed surrounding them?

The first question sees some slight

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variation between regional nations but there is a common trend throughout. As a whole, the Caribbean region draws significant revenue from the tourism and finance industries. As recent months have painfully shown across many nations, tourism is not immune from the initial impact, or economic aftershocks, of a natural disaster.

Similarly, while Caribbean banks may market themselves as secure and discreet institutions, they are less secure in this status than they were just a year or two ago. After revelations of the Panama Papers in 2015, and the Paradise Papers in November of this year, on December 5 the European Union published a ‘blacklist’ of 17 nations it held to be tax havens. True, this list has been labelled a paper tiger by critics but it’s far better that a country is absent from the list than on it.

Caribbean nations that were named included Saint Lucia, Barbados, Grenada and Trinidad & Tobago. Brussels says they hold outdated or unacceptable tax policies.

The list was released in an effort to ‘name and shame’ these nations, and pressure for financial reforms that would align with

global standards, specifically around tax minimisation.

To be clear, tax minimisation is legal in many nations, and there is no suggestion any party involved in it has broken the law. Nonetheless, while it may be legal, tax minimisation is certainly unpopular among the masses. It is also unpalatable to many governments around the world, facing pressure from their voting public to address a global economy that at present holds the greatest rich-poor gap since the Gilded Age of the early 1900s. It is no surprise, with the vulnerability of the tourism industry, and the increasing pressure on local banks, that many Caribbean governments are seeking new avenues for growth.

THE CIP INDUSTRY IN THE CARIBBEAN

CIPs offer a Caribbean government the chance to build on existing industry, and expand anew. Regional governments can create a CIP that complements the tourism and finance industries, while also helping expansion in new areas. The benefits of

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Beyond issues of diplomatic crisis, certain passports can simply make travelling easier. It’s not news that many nations in the Middle East hold some strained relations with their neighbours

expansion can be huge for nations otherwise embattled in economic growth by their small population and small geographical size.

Growing a large logistics industry may not be possible for a small regional nation with a small port but having a logistics company CEO pursue a CIP could provide many benefits to the nation: from investment in local maritime infrastructure, to the reassignment of jobs in administration and HR locally, and even the diplomatic ‘soft power’ a nation can use in promoting a magnate’s residence and business operations, to draw other investors to the country.

THE BENEFITS OF A CIP

Beyond business alone, CIPs offer some benefits that might otherwise not be apparent.

Many nations have an asylum seeker or refugee programme that will accept residents on a humanitarian basis. Then, after a time, these residents can seek a path to citizenship.

While this process is always an option, for some it will not be a suitable one. Via a CIP,

an applicant can pursue a path to citizenship immediately. This could potentially offer a quicker and more seamless process, as well as protection. While protection should be provided to an asylum seeker regardless, the rise of CIPs opens up a new path beyond the traditional route.

Dominica’s cost of US$100,000 for citizenship is not small change but, for someone fleeing a political crisis or another conflict at home that may not qualify them quickly - or at all - for asylum, this option could literally be a life-saving alternative.

Yet, despite the many positive aspects of a CIP, the issues surrounding it can easily outweigh the positives.

WHAT ARE THE CHIEF ISSUES WITH A CIP?

There are three major issues that are common across all CIP programmes.

The first is the risk of a ‘race to the bottom’.

As CIPs grow more popular - especially in a region like the Caribbean where many governments in small nations are enticed by the significant capital a CIP brings - there is

the risk of huge competition.

As it is in business, generally competition among nations is a good thing, encouraging innovation and growth among nations.

But even though they resemble them in some aspects, governments are ultimately not businesses. If governments end up competing for who offers the greatest perks in a CIP at the lowest cost, that could quickly become a dangerous issue.

The second issue follows on from this.

As our world becomes more globalised, it is a reality that the tools of conflict and espionage have become more overt.

We have seen this in recent times, as many nations around the world wrestle with foreign donation scandals, foreign government-backed fake news, and high-level hacking of vital institutions of government. It is with some irony, then, that many democracies are seeking to shore up their borders in one way, while making it easier than ever for a resident of a foreign power to quickly become a citizen.

While anyone who is a person of

good character would surely not be unwelcome if they seek to build a new life in a Caribbean nation, the risk is real of a foreign power using the CIP programme to quickly invest substantial money into a local nation to exert undue influence on its politics.

This is where the third factor comes in: the expectation that the CIP industry does in practice what it is supposed to do in theory. Every reasonable person recognises that what is a rule on paper is not always applied rigidly in practice.

Nonetheless, the risk to a whole nation is significant if a local CIP industry is not precise and prudent with its CIP programme but, instead, uses it as a rubber stamp for anyone with the capital to invest, no questions asked.

These are the three major issues in play within the Caribbean at large when it comes to CIPs. In our next piece on this issue we’ll look at the industry in-depth and how each Caribbean nation’s CIP programme compares, for better and worse.

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COCONUT BAY STAFF GIVEN CELEBRITY TREATMENT AT ANNUAL STAFF AWARDS

Coconut Bay Beach Resort & Spa staged another successful annual Staff Awards ceremony on Friday, December 1, 2017 under the theme ‘Bring out the Celebrity in You’. The awards ceremony, which has been staged every year since the inception of the property in March 2005, provides a platform for staff to be recognized for their outstanding service.

The annual ceremony is the resort’s Grammy Awards, of sorts: a grand occasion when people, achievements and excellence are celebrated. This year the awards were:

(L to R, front) CEO Mark Adams, GM Zachary Frangos and resort owner Gary Hendrickson with some awardees in the background.

• Spirit of Coconut Bay - Carlyle Prowell • GM’s Award - Gina Esnard • Best Smile of the Year - Hannah Cooper • Front of House Employee of the Year (Coconut Bay) - Rose Satenay • Front of House Employee of the Year (Serenity) - Ernest Auguste • Back of House Employee of the Year (Coconut Bay) - Keyvan Dornelly • Back of House Employee of the Year (Serenity) - Sharie Simon • Manager of the Year - Roger Jn Baptiste • Rookie of the Year - Richard Popo • Unsung Hero - Clius Charlery/Sonson Phillip • Department of the Year - Grounds

The range of impressive prizes included monetary awards, televisions, stoves, tablets, weekend resort passes, etc.

Following the presentation of awards, staff were treated to high quality entertainment from some of the island’s best artistes including Ricky T, Q Pid, Shervon Sealy and Sir Lancealot.

The owner of the resort, Mr. Gary Hendrickson, attaches much significance to the annual Staff Awards as he goes all out to reward staff in a major way. He always sets time aside from his busy schedule to attend the ceremony

HOUSE & LAND FOR SALE

Fond Cacao Development S O U F R I E R E - S T. L U C I A

and to mingle with staff at the event. Joining Mr. Hendrickson this year were CEO Mr. Mark Adams and General Manager Mr. Zachary Frangos.

The 2017 Coconut Bay annual Staff Awards ceremony was certainly a grand occasion to reward, express appreciation to and celebrate staff in true celebrity style. The owner, CEO and management congratulate all staff who won an award, believing that such awards contribute to motivating staff towards excellence in service.

The Saint Lucia Company Government Gazette Registration Trademarks

Name: Branford Electrical Services Inc. Description: Electrician Services Directors: Rufus Branford Date Incorporated: 22-Nov-17 Chamber: Deterville, Tomas & Co. - Saint Lucia

Mark name: CAESARS PALACE

Lot Area/Size Building Area Open Area Bedrooms

Name: GV Capital Ltd.

Filing date: 27/09/2017

Description: Property Ownership

Agent: Glitzenhirn Augustin & Co.

Directors: Martina Mladenova

Class: 9 Computer Game Software; 41 Entertainment

Date Incorporated: 4-Dec-17

Services 43 Hotel, Motel, and Resort Services

Chamber: Floissac, Fleming & Associates - Saint Lucia

11,335 sqft 1,726.66 sqft 9,608.34 sqft 13.8 sqft

The house is located in the south-western section of Saint Lucia in Fond Cacao Development (part of the Debuolay Estate), in the Quarter of Soufriere. The property (which was built and designed by Consolidated Designs), is in an upmarket private residential development & commercial area and is ideally situated with easy access off a paved road, leading to the Diamond Falls.

The house comprises 2 master bedrooms with en-suite, a spacious open plan lounge / dining area and kitchen. The property has ceramic tiled floors and jalousie windows throughout with exposed timber frame ‘high’ ceilings (with a varnish finish). The property and land has open space for future expansion and is ideal for residence and as a weekend country home.

Pearl Moore

Applicant: Caesars World LLC.

For further information Contact: Mobile: +44 (0)790 181 4140 Email: pearl.moore@sonymusic.com

Name: NYS Caribbean Ltd. Description: Retail (Sunglasses, Cosmetics, and Accessories) Directors: Avishay Cohen Mark name: tourxpert Applicant: TourXpert S.A. Filing date: 28/11/2016 Agent: McNamara & Co., Chambers Class: 39 Travel Agency Services; 41 Entertainment Services

Date Incorporated: 4-Dec-17 Chamber: TM Antoine Partners - Saint Lucia Name: Industrial Engineering Services Ltd. Description: Mechanical and Engineering Services Directors: Andrey Orlando Hussein; Iva-Lisa Laomi Mendes-Hussein Date Incorporated: 6-Dec-17 Chamber: Greene, Nelson & Associates - Saint Lucia

Mark name: Salvatore Ferragamo

Name: Caribbean Seafood Cuisine Ltd.

Applicant: Salvatore Ferragamo S.p.A.

Description: Food & Beverage

Filing date: 23/10/2017

Directors: Angela Felicien; Imran Felicien;

Agent: Gordon, Gordon & Co.

Adolph Charles Duplesis

Class: 18 Leather and imitations of leather;

Date Incorporated: 7-Dec-17

25 Clothing and Footwear

Chamber: Leevie, Herelle & Associates - Saint Lucia

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WORLD BANK WARNS OF ‘GLOBAL LEARNING CRISIS’

BY FT CORRESPONDENT

Education for children in poor countries still lags far behind that in the rich world

The drive to get more children in developing countries into schools has failed to deliver real educational improvement, with the achievement of children in poor countries still lagging far behind that of their peers in the rich world, according to the World Bank.

The result, the bank said in a report released in September, is a global “learning” crisis that raises questions about the capability of governments in Africa and south Asia to prepare children for a future in which even simple jobs demand greater skills.

“This learning crisis is a moral crisis,” the authors of the World Development Report write. “When delivered well, education cures a host of societal ills . . . But these benefits depend largely on learning. Schooling without learning is a wasted opportunity. More than that, it is a great injustice: the children whom society is failing most are the ones who most need a good education to succeed in life.”

Thanks to a combination of corruption and poorly paid and badly trained teachers the report finds that while more students in the developing

world are attending school, they are often learning little while they are there. The result is a daunting gap in skills with their peers in the rich world.

When primary school pupils in Kenya, Tanzania and Uganda were asked to read a simple sentence such as: “The name of the dog is Puppy,” three-quarters could not understand it. In Brazil studies show that at the current rate of progress it will be 75 years before its 15-year-olds have the same maths skills as the average OECD country, while in reading it will take more than 260 years.

Even in middle-income countries where the gap is smaller, students are trailing significantly. In countries such as Indonesia, Jordan and Peru students in the 75th percentile in maths barely meet, or even lag behind, the 25th percentile in OECD countries.

The study points to the effects of income inequality within countries. In Uruguay students in the lowest income quintile were five times as likely to lack maths proficiency as those in the highest quintile.

But it also highlights the way some governments in east Asia in particular have addressed the problem. China has built

a strong record on education in recent years. So, too, have countries such as Vietnam where a 2012 OECD test measuring achievement in maths, science and reading showed 15-year-old students scoring as highly as their peers in Germany.

Researchers at the World Bank argue that the learning crisis has only begun to come to light in recent years as more poor countries conduct achievement tests.

But the paucity of data remains a problem in many parts of the developing world. For that reason one of the main recommendations of the World Bank report is for countries to do more to assess learning achievement rather than rely simply on school enrolment figures.

Paul Romer, the World Bank’s chief economist, said: “The only way to make progress is to find truth from facts. If we let them, the facts about education reveal a painful truth. For too many children, schooling does not mean learning.”

Thanks to a combination of corruption and poorly paid and badly trained teachers the report finds that while more students in the developing world are attending school, they are often learning little while they are there

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MOVES

COLLETTA’S STILL GOING STRONG

C

BY KAYRA WILLIAMS, STAR BUSINESSWEEK CORRESPONDENT

tell them, ‘But I want your money!’ I would be there with some customers one hour, two hours . . . and that’s primarily because I don’t only sell to my customers. I’m teaching them how to dress, how to put things together, how to wear their clothes. Some of them would call me at home to ask me questions. I always say it’s a calling and, if that’s the case, so be it. I enjoy doing it.

olletta has managed several retail locations of her own across the island over the last 40 years. As with most else, it all started with a dream.

Only, Colletta’s dream then involved scrubs, stethoscopes and a whole lot of patience; patience that for her quickly ran short upon realizing that what she’d imagined to be the career of her dreams was anything but. A career in nursing was, after all, not for the faint of heart, and if she had any hopes of ever being able to eat at all, she needed to find a new path!

A passion for sewing and selling clothes led to her ambitions taking off in a new direction in her 20s. By the time she hit 30, she had made up her mind to invest in her first clothing store. Her plans materialised soon after, opening her first store, Colletta’s Boutique, on Micoud Street, Castries in 1977. She recalls it like it was yesterday: “I was the only boutique other than ‘Rain’ . . .

‘Rain’ had a restaurant on the opposite side of Columbus Square, and I was on the other side, near Kimlan’s.”

When it comes to the retail arena, Colletta has certainly done something right, and she’s got lots to share about just how much perseverance pays off in the end!

DO YOU USE SOCIAL MEDIA IN YOUR BUSINESS? COLLETTA: I have looked into it but I

don’t necessarily think it’s suitable for my kind of business. I sell one-of-a-kind items, and often, when you’re on social media, people want to know about sizes, and that tends to get complicated. I don’t shop styles in bulk so you’re not going to find anyone wearing what you’re wearing when you buy from my store. Everyone is always saying, ‘You must go on Instagram, everything is happening on Instagram,’ but we’re all dealing with different things. If you’re providing a service and you post on IG and advertise where you’re at and what you’re doing, people will come to you. If you’re in retail . . . to sell you need to be in a prime location, where you can advertise your stuff, show your stuff, because people buy what they see. It’s true they can go online to order but there’s problems with that too. Orders get messed up online all the time and the quality isn’t always what you expect it to be.

TELL US THE HISTORY OF COLLETTA’S BOUTIQUE. COLLETTA: Colletta’s Boutique has been around for a while. I’ve had several locations including my first on Micoud Street, two at Gablewoods Mall, the Rodney Bay Marina - I was one of the first shops there. I also had a store in the JQ Mall up until 2016. I am now located at the Yard, in the Star Publishing Compound in Massade Industrial Estate.

I was at JQ from the time it was built, and also at Gablewoods from the time it was built. One of my stores at Gablewoods was called ‘Cushions and Curtains’ and we sold specialty fabric. That store later turned into another one of our locations which specialized in shoes, bags and accessories.

For me it was always a matter of keeping my staff employed, whatever the season.

WHAT WERE YOUR GOALS WHEN YOU STARTED? COLLETTA: I wanted to open a factory

that would produce garments to be supplied to the different stores on-island, in addition to my boutique. I tried to get other people on board who could sew; my plan was to get the Development Bank involved, buy a building and do whatever it took. I also wanted to open a children’s clothing manufacturing company. That didn’t work out for me. People were afraid of merging in those times. People didn’t want to get into partnership with other people for anything, whatever the reason. The Syrians used to be on Micoud Street and they were bigger guys than we were. They were always merging with each other, dealing with each other.

There’s a difference. A lot of these other companies opened their businesses after me, but a sardine cannot compete with a shark,

HAVE PEOPLE’S SHOPPING HABITS CHANGED OVER TIME? COLLETTA: People before looked for quality, and special things. The younger generation . . . they don’t care much about cost or quality. Take Old Year’s Night for instance: back in the day you would have to make sure you stocked up on these nice, flowing, elegant dresses to sell because everyone had to look special on that night.

Things have changed. The way people dress is different, and there are a lot of factors influencing the change.

Colletta knows a thing or two about surviving in a harsh business environment

especially when there are these partnerships that have already been established. I’ve always done everything alone. Despite that, I’ve managed to run my own business, hire and train people, and create jobs for my children.

HOW HAS YOUR BUSINESS STRUCTURE CHANGED OVER THE YEARS? COLLETTA: I started from many shops,

downsized, had more shops and bigger shops, and now I run one shop. When times change, you are forced to adjust.

WHAT WOULD YOU SAY TO A NEW BUSINESS OWNER? COLLETTA: You have to work very hard

and put in a lot of hours; that’s the only way you’ll succeed. When you enjoy what you do, you can bear the patience, and do it properly. You also have to be good to your customers, and be able to interact with them.

Sometimes I would joke with my clients and they would say, ‘You really have patience; I’ve given you so much trouble,’ and I would

You have to work very hard and put in a lot of hours; that’s the only way you’ll succeed.

When you enjoy what you do, you can bear the patience, and do it properly

HOW EASY IS IT TO DO BUSINESS IN SAINT LUCIA? COLLETTA: Things can be difficult.

Everything has its ups and downs. The process of clearing goods at Customs, for example, should be easier and more efficient.

There are times I’d be in an airport and while they’re detaining everything I have, I’m watching someone else sail by. Then they’d tell you the person doesn’t have a business, but that’s often not the case. Some people lie, but they have their connections. Some people aren’t paying the duties they’re supposed to pay while others pay all the time. There are ways of helping businesses get their goods faster so they can make their money back quicker, and that needs to be explored.

Visit Colletta’s Boutique on the properties of STAR Publishing Co. for an exclusive shopping experience today!

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