One of the remnants of the Colonial era is that we have several small island states which have major limitations with respect to size and competitive advantage. Many of these small economies depend on essentially one commodity: tourism, bananas or hydrocarbon derivatives.
The reality is that diversification away from the mainstay industry is not an easy task especially where cultural habits have become attuned to the dominant economy. When faced with a challenge of such gravity, the best approach is to tackle the problem from multiple fronts with a sense of urgency.
One front should be a “think tank” involving captains of industry with a view to ascertaining what it would take for entrepreneurs to mobilise their cash resources into ventures which will be net foreign exchange earners and, of course, what those ventures could be. Another component must be a recognition that the Government must actively instigate public-private sector partnerships which will cost taxpayers significantly. It would be naïve to hope that the private sector will invest in risky diversification projects at their own cost. State land is one of the biggest resources available and we seem content to have vast acreages left idle indefinitely.
Rishi-Nirvan Balroop
Diego Martin