T&T must raise its productivity if it wishes to become more competitive and move up the Global Competitiveness Index (GCI) says Professor Miguel Carrillo, director at the Arthur Lok Jack Graduate School of Business.
He said so following the release of the latest GCI which shows that, for the second straight year, T&T is at position number 89 in the World Economic Forum ranking.
"Productivity can pose serious challenges for T&T in terms of employment, rising income and growth of firms. We need to redefine the approach to areas such as the labour market and place more emphasis on innovation," he said, speaking from London via video conference after the results were released locally at the Arthur Lok Jack School, Mt Hope.
The Global Competitiveness Report ranking is based on the GCI developed by the World Economic Forum and introduced in 2004. The rankings are calculated from publicly available data and an executive opinion survey, a comprehensive annual survey conducted by the World Economic Forum with the Arthur Lok Jack Graduate School of Business, the partner institute for T&T.
The report identifies some of the problems affecting the country's competitiveness as poor work ethic, corruption and inefficient government bureaucracy.
Carrillo said: "A failure to embrace long-term structural reforms that boost productivity and free up entrepreneurial talent is harming the global economy's ability to improve high standards, solve persistently high unemployment and generate adequate resilience for future economic downturns according to the Global Competitiveness Report 2015 to 2016.
"This is also true for T&T which ranked (89 as per last year) where this year's Global Competitiveness Report also cited poor work ethic in the labour force as the country's number one problem."
Work ethic
Dave Kissoon, CEO of Electrical Industries Group, who was part of a panel at the presentation of the results, said if T&T wants to move up the competitiveness Index it must increase productivity.
"Last night we were packing eight containers after 7 pm for export. Some people say T&T has a poor work ethic but my employees were working after 8 pm last night. So this means we as a country can work. We also need leadership to inspire us," he said.
Kissoon said there is a need for leadership throughout the society: "If our leaders start off by doing the right things there will be a domino effect in the society and in businesses as we are interconnected. T&T nationals go to other countries and work hard. Why do they work hard there? Because the culture there is a disciplined culture and a culture of execution. There is leadership. It is also about value creation."
He also said that T&T's institutions need to become more efficient to raise productivity and make doing business easier. He blamed past governments for allowing public services to decline to the state they are in today.
"I would suggest that the new government start by placing competent people on state boards. In T&T sub standard cable wires are imported but our company manufactures according to international standards yet there are people in T&T unscrupulously bringing in sub standard wires and we have to protect our own business. So we go to the authorities and beg them to inspect and in the process we lose millions of dollars," Kissoon said.
Ian Chinapoo, executive director of the Unit Trust Corporation (UTC), who moderated the panel, said the country's gross domestic product (GDP) per capita skews certain realities.
"We have some recurring issues like work ethic, issues of corruption and overall productivity. We are ranked as a stage three innovation economy but that is primarily so because of our GDP per capita, which is over US$21,000 and this shows that we have a lot of work to do," he said.
Dawn Callender, director of finance and risk management at PowerGen, noted that T&T has a high GDP per capita but wondered how that measured up to the quality of life in the country.
She said although a part of the workforce exhibits a good work ethic, it does not exist everywhere.
"We need to drill down into some of those pillars of where we have work to do. I had the fortune to work with many people throughout my life who have had a good work ethic. Unfortunately I do not think that exists in an even manner throughout the society.
"Part of the reason for that is that we are an energy driven economy, our earnings are based on external factors and they are based on whatever the world market prices are," Callender said.
She said apart from individual work ethic, there are structural problems that affect workplace productivity.
"There is the issue of traffic jams and the whole psychology of people trying to avoid traffic jams. People try to leave before or after the traffic. The fact that we have a very centralised access to services, that is, a lot of people come into Port-of-Spain and they spend a lot of their time on the road," she said.
Foreign direct investment
Planning Minster Camille Robinson-Regis, who gave the feature address at the event, said T&T needs to become more competitive to attract foreign direct investment (FDI).
"T&T has been able to attract billions of dollars' worth of direct foreign investment because we were seen as being an ideal geographic location, as having a highly intelligent workforce, abundant natural resources and a vibrant, stable democracy.
"Irrespective of changes in governments, our governance model respected and honoured contracts entered into by a previous regime, unless they could have been proven to be demonstrably injurious to the country's economic health. As a government, we intend to return to that model and thereby ensure that we will once again be able to look our multinational partners in the eye," she said.
Robinson-Regis said the Government and the private sector must work together to attract FDI.
"Foreign direct investment will not flow into T&T unless it is actively pursued by both the Government and the private sector. The recent commissioning of the Caribbean Gas Chemicals Ltd plant on the Union Estate in La Brea, for example, is a magnificent example of this active pursuit of diversification options by the Massy Group of Companies which found a suitable partner in the Mitsubishi giant. The success of this plant is owed in no small way to the facilitation made possible by the Government of T&T," she said.
The minister said the new Government intends to place competent professionals in foreign embassies.
"Posting to our embassies and consulates should not be seen as a mere reward for supporters of the party in government, but must be the front line of projecting the interests of T&T internationally. Our key pursuit must be our economic and commercial interests and these must be understood by our senior diplomats and the professional Foreign Service officers," Robinson-Regis said.
