THE STAR Businessweek APRIL 6, 2019
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in this edition of
Middle Eastern Investors Look To The Caribbean By Catherine Morris, STAR Businessweek Correspondent
SBW THE STAR Businessweek
Appealing to the Crowd: Public Sector Crowdfunding in the Caribbean It’s often said about a citizen’s relationship with government, that ‘nothing in life is certain except death and taxes’. Page 3
The Caribbean has always attracted international investors keen to park their wealth offshore, but the source of those capital inflows has been subject to change as the global economy fluctuates. Governments in the Middle East, especially the United Arab Emirates (UAE), are increasingly looking to the region as a way to diversify their portfolios, protect their funds and secure influence. For the Caribbean, partnering with Arab States can bring much-needed investment in infrastructure, training and technology. Continued on page 4
Small and medium-sized enterprises are playing a vital role in expanding trade ties between the UAE and Caribbean region, according to the heads of chambers of commerce who spoke at the inaugural UAE-Caribbean Cooperation Forum in Dubai last November
The State of Water Scarcity in the Caribbean and Beyond Today nations exist in a difficult environment within the international community, one where nationalism and the apparent threat of conflict between leading countries are higher than they have been in decades. Pages 7
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The STAR Businessweek BY Christian Wayne – Editor at Large
South-South Cooperation has been a buzzword in international development circles for as long as I can remember. More of a philosophy than a political ideology, south-south cooperation describes bilateral or multilateral relationships between developing nations, largely those located in what we refer to as the Global South. The United Nations describes southsouth cooperation as “a process whereby two or more developing countries pursue their individual and/or shared national capacity development objectives through exchanges of knowledge, skills, resources and technical know-how, and through regional and interregional collective actions. SouthSouth cooperation is not a substitute for, but rather a complement to, North-South cooperation (emphasis mine)”. South-south cooperation is an unofficial, informal movement— unlike political organizations like the Non-Aligned Movement or UN working groups like the Group of 77—that has fallen somewhat out of favor since the shuffling of political alliances during the zenith and conclusion of the Cold War. In the past, south-south cooperation was driven mostly by political ambition, a quest for security alliances rather than one for shared economic value. In the current era of globalization, however, we’ve seen the movement’s popularity surge as former emerging market nations have transcended squalor and achieved admirable status as a ‘breakout nation’. China is a notable example, having achieved astonishing economic growth that has gone on to fuel the country’s global shopping spree in Africa, Latin America, and the Caribbean, but China is not the only nation/region that sees south-south cooperation as an effective vehicle to win friends and influence people. Our lead story this week “Middle Eastern Investors Look To The Caribbean” profiles a slew of recent Caribbean-focused investment projects funded by Middle Eastern governments, particularly petro-rich nations like the United Arab Emirates. Beyond the news headlines, the Middle East and North Africa (MENA) is a region that holds areas of remarkable economic growth and is home to countries with global ambitions, countries like the UAE and the Kingdom of Morocco. The realm of Caribbean-Middle Eastern relations is an extremely underreported topic and should definitely be a must-watch area for Businessweek readers. Start today with this week’s cover story!
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CROWDFUNDING
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Appealing to the Crowd: Public Sector Crowdfunding in the Caribbean By ED Kennedy, STAR Businessweek Correspondent
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but evasion. They are unlikely to be at the front of the queue in advancing a crowdfunding model, but instead find new ways to drag their feet in the process.
Obligations and Evasions
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While undoubtedly a shift to a model of raising public funds via crowdfunding would see some positive stories emerge, it would also create an issue of equality in spending. Presently a national government will receive tax centrally, and then reinvest the money across the country, depending on a variety of factors. A public sector crowdfunding model that allows citizens to invest directly could be tremendous, but also grows the risk that affluent communities prioritise spending locally whereas less affluent locales struggle to get sufficient funds to retain local services. On this basis, a government seeking to utilise a crowdfunding model could find greater civic engagement and participation as a result; and that is surely a positive. But, like most interactions between citizens and government, it would ideally come with some boundaries. For example, interactions that allow a citizen to put forward capital for better roads or schools or hospitals would show the treasury where money should be allocated, but government would do so on a national level exclusively, avoiding the ability for communities to separate funding and grow unequally.
t’s often said about a citizen’s relationship with government, that ‘nothing in life is certain except death and taxes’. This saying political scientists point to regularly as not only offering a whimsical take on society’s operation but also a (sometimes) bitter truth about the inevitability of seeing good, hard-earned money spent easily and foolishly. It’s long been this way but things may now be changing thanks to the emergence of crowdfunding in the public sector, with the online arena providing a path for stronger public dialogue, alongside direct funding and commissioning of public works and spending. But is public sector crowdfunding really the way of the future? And could it be utilised around the Caribbean? Let’s look in-depth now.
Going All-in On Crowdfunding
Crowdfunding has found considerable popularity within the United States in recent years. Thanks to its emergence, bike lanes have been paid for in Denver, a youth garden has sprung up in Philadelphia, and a downtown park now exists in Royal Oak, Michigan. In the latter especially, the potential for crowdfunding to create a new avenue for public investment has been pioneered. Operating on a ‘dollar for dollar’ matching principle, Michigan has enabled citizens, via its “Public Spaces & Community Places”, to donate to not-for-profits that they are most interested in seeing prioritised. Then, once a certain threshold is reached, the government matches the money put forward by the general public. The benefits of this approach are often very easy for taxpayers to identify when bulldozers and construction crews are brought in. But when it comes to the delivery on critical services, those who point to the positives of crowdfunding ask us to look over many hurdles ahead, and to change how we’ve viewed for centuries the relationship between taxpayer and tax department.
Just as it’s a citizen’s obligation to pay taxes to ensure that essential services are maintained, it’s the government’s obligation to formulate effective economic policy that sees those services delivered. This is more complex than simply raising or lowering taxes, and can involve a whole host of economic factors and decisions. Ultimately, any rise in crowdfunding that relieves government of the expectation is not so much a good thing as a way for them to ‘get off the hook’. After all, though Saint Lucians would surely welcome greater injection of capital into road, schools and hospitals, none would welcome any announcement that the government was bowing out of providing them. However popular crowdfunding may become, government’s role as society’s chief investor must remain.
Dollars and Sense
A Taxing Issue
While crowdfunding offers some real advantages, there are some considerations that are inescapable. Though it’s fair that governments are critiqued for how they spend money (and sometimes the waste and poor spending decisions are indeed shameful) ultimately they collect tax and reinvest it into the running of a country with the understanding that it is part of a ‘social contract’.
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The iSupport Jamaica team joined forces with the Bob Marley Foundation as they raised funds to renovate the music room at the Haile Selassie High School
Similarly, when it runs in the ideal way, public sector crowdfunding could be an avenue for citizens to directly fund essential services to a higher level, and speed up commencement of critical infrastructure well ahead of a slow government roll-out. In these circumstances it’s easy to look upon the growth of crowdfunding, from the citizen’s side of the fence, as a positive. But this perspective must also recognise that comparatively few citizens in any
While undoubtedly a shift to a model of raising public funds via crowdfunding would see some really positive stories emerge, it would also create an issue of equality in spending country are so affluent as to be in a position to pay tax, and then readily pay even more thereafter to ‘pick up the tab’ on what the government isn’t paying. Particularly so because many people for a variety of reasons - whether due to being too young, retired, having special needs, or otherwise perhaps earning an amount lower than the mandatory tax-paying threshold - may not pay taxes at all. Then there’s the reality that many high net worth individuals (HNWIs) and highearning businesses engage in global tax minimisation strategies that governments increasingly view not as minimisation,
Making It a Private Matter
While the current issues with crowdfunding in the public sector are unlikely to disappear anytime soon, the private sector across the region has previously been flagged as one that’s opportune for future growth and investment. The World Bank’s innovation and entrepreneurship programme, infoDev, has cited the achievements in recent years in Barbados, with VisionFunder and Pitch & Choose, and in Jamaica, with JN Bank’s iSupportJamaica and Jamaica Diaspora Connect portal, making these countries leaders in the region. These operations may evidence that crowdfunding has a natural home in the private sector, but government certainly still has an important role to play. By promoting, regulating and securing the crowdfunding industry so that citizens invest with greater confidence, and by pursuing these reforms with the onhand expertise surrounding its already established financial industry, Caribbean nations can pursue a ‘best of both worlds’ strategy, one that seeks to see crowdfunding thrive, and sees government reap the rewards in additional revenue. The growth in crowdfunding won’t solve all public sector issues in Caribbean nations, but promoting its growth, alongside implementing more effective taxation, could be a win- SBW win for all.
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Middle Eastern Investors Look To The Caribbean Continued from page 1
now targetting sectors other than citizenship and property. The UAE, which has the most diversified economy in the Middle East, has been getting creative in its Caribbean approach. On the sidelines of the November summit, Jamaica and the UAE signed a Memorandum of Understanding to foster “bilateral cooperation in the cultural and creative domains.” This MoU paves the way for coordinated cultural events, exchanges, visits and technical cooperation in the fields of publishing, translation, digital content and the arts. The Caribbean’s burgeoning renewables sector is also an area of interest for UAE investors. In 2017, Reem Al Hashimy, UAE’s Minister of State for International Cooperation launched the UAE Caribbean Renewable Energy Fund which provides US$50 million in funding for green energy projects in 16 Caribbean countries. St Lucia accessed the fund in its second cycle and will launch three projects this year - installation of solar systems at two schools, creation of solar-powered lighting at Hewanorra International Airport and construction of a solar carport and electric vehicle charging stations, also at the airport. Road upgrades are also due to take place in the north of the island, partly funded by Kuwait. In March, the Prime Minister met with the Kuwaiti Ambassador Mohamed Fadel Khalaf to discuss expansion and redevelopment of St Lucia’s highways and secondary roads, courtesy of the OPEC Fund for International Development and the Kuwait Fund for Arab Economic Development.
Mutual benefits
While CIPs are gaining popularity across the world as a way for small countries with little resources to raise large revenues, the programmes have been intensely opposed by multilaterals like the European Union and the OECD
Future growth
It is impossible to talk about Middle East markets without talking about oil. Economies in the region are heavily tied to the price of this precious commodity and four years of downward-trending crude oil prices have taken their toll. The slump, combined with conflict in Syria, Yemen, Libya and Iraq, has contributed to making the Middle East one of the world’s most poorly performing economies. But there are pockets of growth. In its February 2019 report, PwC predicts that the Middle Eastern economy will pick up this year due to stronger oil prices, fiscal reforms and increased M&A activity as banks in the region consolidate and scale up. Overall, the Middle East’s GDP is expected to grow by 3.6 per cent in 2019, according to PwC. Driving this are the region’s fastest growing economies - the International Monetary Fund (IMF) has tagged Oman, Kuwait and United Arab Emitrates (UAE) as the strongest players in 2019 and its the latter that’s currently making waves in the Caribbean.
November 2018 saw a significant milestone in Middle Eastern-Caribbean relationships when Dubai hosted the first UAE-Caribbean Cooperation Forum. The three-day event, which was organised by the Dubai Chamber of Commerce and Industry, discussed how the two regions might partner on issues such as renewable energy, technical assistance and infrastructure development. More than 400 delegates, drawn from both government and the private sector, attended. Labelling the event “highly productive”, UAE Representative to the Association of Caribbean States Ambassador Bader Almatrooshi said: “The momentum created by the Forum and the partnerships forged in this context could result in very positive outcomes taking into account that there is a great potential for growth, in light of the UAE’s and the Caribbean region’s respective economies, natural resources and strategic geographical location.”
Areas of investment
Traditionally, investment from the Arab world into the Caribbean has centred around two
markets - luxury real estate and citizenship. In 2017, Middle Eastern investors spent US$9.1bn on global commercial real estate, according to international property consultancy firm JLL which predicts that these investors will move away from the traditional niches of hospitality and housing into technology centres, industry and retail. And JLL believes that Arab investors are now becoming more innovative with their property portfolios by moving into exotic destinations such as Latin America and the Caribbean. Countries with Citizenship by Investment (CBI) programmes like St Lucia have always attracted substantial interest from this part of the world. St Kitts and Nevis has been particularly proactive in chasing this market, hosting a meet and greet with officials in Dubai in January and unveiling plans to open an embassy in Abu Dhabi later this year. And the island’s efforts are paying off - CBI facilitator Naseba reported a three-fold increase in interest in St KittsNevis passports from the Middle East last year. But a diversified portfolio is a strong portfolio, and Middle Eastern investors are
Non-oil foreign trade between the UAE and the Caribbean was worth US$382.9m in 2017, a 37 per cent increase from the previous year. With greater market access through partnerships, both economies are hoping to further expand this lucrative trade avenue and Chairman of the Dubai Chamber, H.E Majid Saif Al Ghurair, believes stronger trade is a win-win for both partners: “ We see huge potential for UAE businesses to provide the right level of expertise and investment to fill market gaps within the Caribbean’s services, logistics, agriculture, creative and digital sectors. “As businesses and governments in the Caribbean look towards the next phase of growth, development and economic diversification it is important for them to broaden their horizons and build partnerships in new markets.” For its part, the Caribbean is hoping forging ties with the Middle East will help boost tourism and improve its technological capacity - an area in which the region is falling behind as it struggles to keep up with the fourth industrial revolution. Prime Minister Chastanet said: “What the UAE has acheived so far has challenged us to revisit our own expectations for ourselves. We normally look North for solutions, and here we have an incredible success story to the East. We now need to examine how we can leverage that and use this expertise to create the same level of success in the Caribbean.”
Civil Society
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THE RISE OF THE THIRD SECTOR By Catherine Morris, STAR Businessweek Correspondent
but rarely included in closed-door governmental discussions - a setting where their invaluable grassroots experience could have real impact in shaping policy. On the whole, CSOs do not have the influence or reach they should because of a lack of capacity. Often small, under-funded and under-staffed, these groups are focused on survival and sustainability. Their limited resources must go towards campaigning, fund-raising and overseeing their projects and programmes.
The future of Civil Society
Key note panel discussion from the “IDB Group – Caribbean Civil Society Forum” that took place in Port of Spain, Trinidad in 2015
Across the Caribbean, governments are saddled with debt and the private sector is navigating a difficult landscape strewn with obstacles to doing business. In this challenging environment, civil society groups are on the rise, playing a bigger role in Caribbean life – not just in providing basic social services to citizens but also acting as watchdogs for institutional bodies, education providers and small business enablers.
What is Civil Society?
Often termed the third sector, after government and business, civil society is a broad concept encompassing different groups and associations that work in the social and cultural sphere. Civil Society Organisations (CSOs) can include community groups, labour unions, professional associations and Non Governmental Organisations (NGOs). The catch-all phrase is neatly summed up by CIVICUS, itself an international CSO, as “the arena outside the family, the state, and the market, which is created by individual and collective actions, organisations and institutions to advanced shared interests.” To further complicate the picture, these
‘shared interests’ can span a wealth of issues from environmental causes to humanitarian concerns. They can also be political in nature, advocating for good governance, human rights or more accountability. CSOs in the Eastern Caribbean come in many forms, including St Lucia’s Caribbean Association for Feminist Research & Action, the Caribbean Women’s Association, the Caribbean Rastafari Organisation (based in Vieux Fort), the Caribbean Youth Environment Network and the Eastern Caribbean Alliance for Diversity and Equality, headquartered in Gros Islet.
The role of Civil Society
CARICOM has long emphasised the need for civil society to be fully engaged with policy decisions in the region, taking a seat at the table alongside governments and the private sector. In its 2015-2019 Strategic Plan, the community laid out a framework for partnerships and continual consultation with CSOs but despite this welcome emphasis on an often overlooked sector, the reality continues to fall short. In many Caribbean countries, CSOs are welcomed for their work in social programmes
The third sector, like the rest of society, is changing. With more technological tools at our disposal, advocacy is increasingly going online and the new change-makers in the civil space are bloggers, Instagram influencers and social media activists. “Civil society today includes an ever wider and more vibrant range of organised and unorganised groups, as new actors blur the boundaries between sectors and experiment with new organisational forms, both online and off,” according to a 2013 report from the World Economic Forum. The WEF goes on to examine how the civil society landscape might look by 2030 and concludes that there will likely be a shift in its purpose, agency and composition. The report suggests that as geopolitical uncertainties continue to dominate, the civil society’s most important role in the future will be that of watchdog.
CARICOM has long emphasised the need for civil society to be fully engaged with policy decisions in the region, taking a seat at the table alongside governments and the private sector
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It’s easy to imagine how this might play out in the Caribbean where confidence in government is generally low. Fears of corruption, fiscal mismanagement and a lack of transparency mean that CSOs who hold government to account and demand better will always be needed. There will also always be a need in the social sphere, as many citizens in the region find government resources out of reach. Education, lifting people out of poverty, combating crime, protecting the environment - these are areas where government and the private sector, tainted by political basis or motivated by profit, have left gaps that can be filled by those who have a genuine interest and passion for their communities. And there is plenty of opportunity for crossover and collaboration in the Caribbean in addressing inequalities. The impact of NGOs and other civil organisations can be widened if they shed their third sector label and integrate with public and private partnerships to increase their reach. In the Caribbean this often takes the form of initiatives with the Inter-American Development Bank and other development agencies. Between 2007 and 2009, CSOs were involved in the design and preparation of over 75 per cent of World Bank projects. In Haiti, NGO Mercy Corps teamed up with the UK’s Department for International Development to launch MiCRO – an insurance scheme that offered small business owners and female entrepreneurs an economic safety net in times of crisis such as natural disasters. In October 2012, the initiative reported claims totalling US$ 4.5m were paid out to 18,000 policyholders. As the Caribbean takes on the challenges of the 21st century – economic turbulence, natural disasters, overcrowding, political uncertainty - pressure on government and business leaders to adopt more socially inclusive policies is mounting, making the dynamic civil society space one to watch. According to the World Economic Forum: “The power and influence of civil society are growing and should be harnassed to create trust and enable action across sectors. The changes that civil society is undergoing strongly suggest that it should no longer be viewed as a ‘third sector’; rather, civil society should be the glue that binds public and private activity together in such a way as to strengthen the common good.”
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ENERGY
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Barbados Completes UAE-Funded Renewable Energy Project Minister Abrahams said the UAE Government launched a US$50 million Caribbean Renewable Energy Fund in November 2017, and this partnership was an effort to assist CARICOM Member States “to reduce the high cost of energy, which has been identified as a primary barrier to growth” Minister of Energy and Water Resources, Wilfred Abrahams (centre); Ambassador of the UAE to Cuba, Jamaica, Haiti and Representative of the UAE in the Association of Caribbean States, Bader Al-Matrooshi (right); and Ambassador of France to Barbados, Philippe Ardanaz (left) in discussion in front the UAE/BWA solar photovoltaic project. (Credit: BGIS)
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arbados is the first in the Caribbean to have successfully completed its United Arab Emirates (UAE) funded renewable energy
project. Minister of Energy and Water Resources, Wilfred Abrahams, called this “a truly extraordinary successful accomplishment”, as he delivered remarks today at the inauguration ceremony of the UAE/BWA solar photovoltaic project at Bowmanston pumping station in the eastern parish of St. John. Minister Abrahams said the UAE Government launched a US$50 million Caribbean Renewable Energy Fund in November 2017, and this partnership was an effort to assist CARICOM Member States “to reduce the high cost of energy, which has been identified as a primary barrier to growth”. He added that the objectives of the fund are to “increase the use and resilience of renewable energy applications in the region, including related sectors such as water and waste…and to expand technical experience in designing, implementing, and managing renewable energy projects and to facilitate faster and lower-cost deployment in the future”. The Minister of Energy stated that these objectives aligned with government’s goal of becoming a 100 per cent renewable energy efficient and carbon neutral state by 2030, and stressed: “We believe that we owe
it to future generations to explore and develop alternative sources of energy that will allow us all to be energy selfsufficient.” Minister Abrahams revealed that he was keen to collaborate with the UAE in the future on more projects, especially the use of renewable energy to power desalination plants. Ambassador of the UAE to Cuba, Jamaica, Haiti and Representative of the UAE in the Association of Caribbean States, Bader Al-Matrooshi, in his remarks, congratulated Barbados on the completion of their project. He said it was “a proud moment in the strong bilateral ties between the UAE and Barbados…[that] both the UAE and Barbados share a common vision of the important role renewable energy plays in accelerating sustainable development and bringing real benefits to local communities”. Ambassador Al-Matrooshi also pointed out that water facilities consume a significant proportion of electricity in Barbados and the diesel savings from this solar PV project would have a direct impact in terms of cost savings. The UAE facilitated approximately BDS$7 million (US$3.5 million) in grant funding to Project Managers MASDAR for the Barbados Water Authority’s supply and installation of a 420kW ground mounted solar photovoltaic farm, on 1.5 acres of land at the Bowmanston pumping station, and the supply and installation of a 350kW solar photovoltaic carport at the Bridgetown Sewage Treatment Plant. Source: Caribbean 360
ENVIRONMENT
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The State of Water Scarcity in the Caribbean and Beyond By ED Kennedy, STAR Businessweek Correspondent
Today nations exist in a difficult environment within the international community, one where nationalism and the apparent threat of conflict between leading countries are higher than they have been in decades. Conversely, the challenges that exist in this arena ensure that any nation which attempts to face up to all of its problems solo, walks a lonely path indeed. Central to these threats is, of course, climate change. But unquestionably the most pressing secondary effect that arises from climate change is increasing water scarcity. Long an issue, now accelerating, it is a problem that is non-discriminate and impacts countries all around the world. For small island states, like so many throughout the Caribbean, water scarcity poses a distinct threat. So what does recent history tell us about water scarcity in the Caribbean? And what are the emerging challenges surrounding the issue? Let’s look now.
Going to the Source: The Venezuela and Caribbean Experience
Ancient Roman aqueducts that run from inland springs to Italy’s capital city show that the effective transport of water from source has long been a planning priority of government. The fact it has not yet been achieved, while these aqueducts lie in ruins, affirms the historical difficulty of the task. Those looking to trace the origins of the current crisis in Venezuela often begin with water scarcity as its source. While the economics of what has brought Venezuela to this point are complex, the anguish and frustration across the nation’s daily life sees water scarcity loom large. Venezuela’s crisis isn’t mirrored in other nations, yet it does provide a case study in the need for effective water policy. The country has sizeable water resources but 85% are located in the south west, whereas the majority of the population lives in the north. Alongside the availability of water, there’s the question of water
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Yet one hole in a dam can lead to a flood. Furthermore, hacking files is one thing, but a digital failure surrounding critical infrastructure is another. Even when it is not a security threat, but more of a straightforward systems failure, the results can be devastating. One need only look at the latest troubled chapter of the crisis in Venezuela to see this, as late March saw President Nicolas Maduro announce 30 days of electricity rationing across the nation. With the same electricity source powering the water supply, those who contend that Venezuela is under strain but couldn’t yet possibly be considered a failed state, could hardly look at the evidence of electricity rationing and water shortages as a sign of a strong and well-functioning society.
A Water Boundary Tasked with providing water for a population which more than quadrupled with tourists throughout the year, the Caribbean island of Aruba is building a new 24,000 m3/day desalination facility to process seawater from beach wells
infrastructure and quality. Around the region, numerous small island states face challenges. Jamaica’s water infrastructure is beset by leaks and aging pipes; Dominica saw its water infrastructure ravaged by Hurricane Maria, and Barbados’ limited resources make it one of the most water-scarce nations in the world. When there is a reduction in access to clean and consistently available water, people risk their health and safety by utilising water from polluted sources. This can, of course, create knock-on effects in an already strained society, with citizens requiring medical care due to using dirty water.
some may be weakened by it, even if, by every other measure, they are powerful. Beijing may be a leading capital of the world, owing to the enormous economic growth that China has seen, yet it’s also a city regularly battling with water shortages. And it is not only Beijing but the nation as a whole that is being tested by this. With 28,000 waterways having disappeared during the past quarter of a century, the same population growth that has helped China ascend economically now poses a challenge for its ongoing sustainability.
The International Perspective
Once upon a time, in the hunter-gatherer era, a dried-up water reserve simply meant that a tribe would wander onwards to another source. Today, in our era of hard borders and major cities, such mobility is impossible. Also, the ownership of water sources is usually clear-cut, meaning that access is denied to those who may suddenly need water. Water security is now a critical issue in the digital age. Attacks on nations via the digital arena are borderless, and becoming more and more common. Until now, the high profile ones have mostly resulted in small but publicised breaches that intelligence agencies typically assure were bad, but with little to no lasting damage.
The United Nations’ position on water is clear, and it has given prominent attention to it. In 2010’s UN Resolution 64/292, universal access to clean drinkable water was recognised as key to seeing human rights realised. This was complemented by the position of the Committee on Economic, Social and Cultural Rights eight years prior, noting in November 2002 that the right to water is the prerequisite right from which all other human rights follow. Whether or not a particular government recognises the UN’s position on water as a human right, water scarcity is an issue that all nations must contend with; indeed,
The Growing Security Threat
Ultimately, while the redrawing of borders is unlikely, the years ahead may increasingly see (if not demand) greater cooperation between countries. Optimists may predict greater global consensus, given that the stakes are so high and water so essential, but numerous episodes throughout the 20th century surrounding the ownership of, and necessity for, oil among nations suggests that the realities of hard economics and brutal geopolitics will endure. The European Commission’s Joint Research Centre (JRC) has already come forward and declared outright that not only will water be in high demand, but it may even be the origin of future conflicts, unless change is made. For small island states, the advantage they hold is a capacity to prioritise this issue now. As well as having a smaller population for which to secure supply, they have the opportunity to pursue strong action, free of a huge nation’s endless layers of bureaucracy. For the Caribbean, the inroads made by building desalination plants around the region are undoubtedly a firm step forward. With almost 70 built at time of writing, it’s true that these plants aren’t a totally issue-free solution - owing to the impact they can have on marine habitats, among other factors - but the forward momentum they’ve created ensures that the proactive steps being taken today will help combat locally the crisis of water availability that is emerging globally. That is something all people in the Caribbean family can be pleased about, even if much SBW work remains.
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making moves
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Leandra Peter’s Farm Essence: The Next Big Thing In All-Natural Body Care
By DEAN NESTOR, STAR BUSINESSWEEK CORRESPONDENT
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ot often are persons fortunate enough to do their life’s passion for a living. Leandra Peter has married her love of chemistry with her love of all things natural, to establish Farm Essence, producing handcrafted soap and body care products. Since the company was registered with SEDU in 2017, Farm Essence has produced over twenty products from all-natural and local, raw materials. After appearing in consecutive Saint Lucia-Taiwan Partnership Trade Shows, Leandra is looking to make the brand more prominent, STAR Businessweek sat down with her to discuss successes and where she plans on taking her burgeoning business.
SBW: What was the inspiration behind Farm Essence?
Some of the more popular Farm Essence products left to right Cucumber mint, carrot and Orange Tomato
Leandra: It started off with my love for all things natural and herbal. I hand-made soap for my own personal use, then family and friends started trying the products. I got great feedback, and worked on perfecting the formula until I developed a recipe that was both moisturizing and cleansing. The name ‘Farm Essence’ was inspired by the farms in the Marquis, Boguis area where I’m based, since most of the raw materials for my products come from there. Our tagline, ‘Harvested for your skin’, is similarly inspired.
SBW: How and where do you manufacture the soap?
Leandra: I use the cold process method, which tends to keep all the natural ingredients, so I make the soap at a very low temperature. It takes four to six weeks, depending on the recipe. I’ve transformed a part of my home into a mini-workshop and I do everything myself. I currently make about 500 bars per month. They go pretty quickly so I’m looking to eventually do at least a thousand a month and ultimately hire a few persons.
SBW: What else does Farm Essence produce?
Leandra: We do body butters and body oils;
these are made to order. We also make lip balm. SBW: Do you cater to any specific demographic? Leandra: 75% of my customers are women and the rest are men. The women tend to buy for their children as well. We cater to all different skin types, whether oily, dry or sensitive. SBW: What’s the price range? Leandra: The average price is $10 for a soap bar but it varies depending on the ingredients; the most expensive is the Shea Butter bar at $20. The body oils start at $20 and the body butters are $15 dollars and up. SBW: Where’s your market? Leandra: Most of my customers are locally based, with a few from the region, namely Martinique. Internationally, I have clients in the UK and the US. SBW: How is promotion done? Leandra: Via my social media pages: Instagram, Facebook and WhatsApp. I have customers who refer clients to me and I think the referral system has been my best marketing strategy. I also have a Tuesday Trivia giveaway where I put up a question on social media and one person with the right answer is randomly chosen as the winner. SBW: Did you research the market before establishing the business? Leandra: Yes I did. Everything is about market research. You can’t just start making a product and expect persons to buy it without doing the necessary research. Knowing what your customers want, establishing a niche, a price range and collating other necessary data, all comes with market research. For example, in that research I discovered that my target market prefers my packaging to be done using a white paper bag as opposed to a brown one. The bag has my logo printed on it, and is tied with a bow. My customers love it! It’s like treating yourself when you buy Farm Essence. SBW: How has the Department of Commerce assisted in the development of your business? Leandra: It allowed me the opportunity to participate in the annual Saint Lucia-Taiwan Trade Show. I also attended workshops and training organised by the Department. SBW: Where is your product retailed? Leandra: A few hotels have approached me and I’m working on that. I’m negotiating with two retail stores and we’re hashing out the details right now but I can’t give too much away as yet.
Leandra Peter, owner of Farm Essence has a love for soap making
Want to try out quality skincare products that are all-natural? You can reach Leandra Peter by phone on (758) 486-3709, through Facebook (farmessence.slu) and Instagram (farm_essence.slu).
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