by Mariano Browne
The defeat of the PNM in 1986 created a watershed with long-lasting repercussions on Trinidad and Tobago’s development. The PNM oversaw the creation and implementation of the country’s development plans for an unbroken 30-year period starting with self-government in 1956 until that electoral landslide. Since 1986 there have been several changes of government with many new administrations adopting their party manifesto as government policy. The result has been changing priorities, a less than optimal approach to the task of national development.
During the PNM’s 30 years of unbroken control over the government, the instrument used to coordinate and structure the framework for a sustainable independent country were a series of five-year development plans. The objectives were clear and the policies to achieve those objectives were consistent. The primary purpose was to build a sustainable future with the economic structures to support this approach, a shift away from export agriculture to new industries behind a tariff wall. The policies used were loosely labelled “Industrialisation by Invitation” based on the Sir Arthur Lewis Model of development.
Adherence to this approach required an improved and expanded education system to provide the trained people to fill the jobs created by the new sectors. The target was to increase the number of secondary school places from 5,000 to 25,000. Similarly, the financial system had to be reoriented to provide the finance required to fund new development and industries. This led to the policy of financial sector domestication through the development of locally owned finance institutions. To finance a more proactive national government, a new tax system had to be built.
Key foundations for these changes were the Concordat, the agreement between the government and denominational schools, the Aid to Pioneer Industries Act, the Petroleum Taxes Act and the 1966 Finance Act. The 1966 Finance Act piloted by then Finance Minister ANR Robinson was unpopular but groundbreaking. This framework anticipated using natural gas to develop industrial capacity. The first efforts in this direction were the use of natural gas to generate electricity and the establishment of Federation Chemicals on the fringe of what is now the Point Lisas Industrial Estate. The discoveries of oil and natural gas by Amoco on the east coast in 1971 and the surge in oil prices in 1974 created a period of accelerated expansion. The ensuing boom led to rapid growth in the national income and with it an expansion in the number and size of government projects.
In the 36 years since 1986, only this current PNM administration appears capable of completing two full terms, (though this statement may be premature as it has two years to complete its current term). Governments need two terms in office to cement policies and to effect meaningful change. Because of the rapid turnover of administrations post 1986, policy changes and inconsistencies have become the norm.
The NAR began a period of consolidation and privatisation of state enterprises and structural changes in the taxation system with the introduction of VAT and by consolidating personal allowances with lower tax rates. However, 31 years later, the administrative improvements which were meant to lead to the creation of a Revenue Authority remain outstanding. It also dismantled the protection system built on the negative list and liberalised trade. But despite integrity legislation and other devices, various reports suggest corruption, and ease of doing measures remain weak demonstrating little progress, whilst our Caricom neighbours show steady improvement.
In critical areas such as education, industrial policy and infrastructural development, the frequent changes of government have affected the rate of progress and highlight the need for a stronger, more professional public service.
The number of state enterprises used to effect public policy have expanded rather than contracted. There have been the occasional privatisation efforts caused by the government’s budgetary shortfalls rather than any commitment to limiting government involvement in private sector pursuits. The liquidation of Education Facilities Limited, the execution arm of the Education Ministry needs some explanation.
The establishment of the University of Trinidad and Tobago (UTT) represented a significant effort to develop technical and vocational training in the service of industrial development by one administration. UTT’s mix of practical hands-on training contrasts sharply with the academic approach adopted by UWI. Developed to address the practical requirements of the industrial sector, UTT suffered a sharp cut in financing when administrations changed.
The same fate befell the long-awaited aluminium smelter which had real capacity to deepen the Caricom integration process by using raw materials from the resource-rich Guyana and Suriname. Vision 2020 and Vision 2030 have fallen on politically stony ground for the similar reasons.
Political manifestos are marketing statements to get voters’ attention and support. They are not calibrated to achieve the efficient deployment of national resources or a consistent approach to national development. When an incoming administration adopts its manifesto as official government policy, it takes prominence over national development plans, and creates the opportunity to give the appearance of success. However, that invariably leads to short-sighted planning objectives and ineffective national development goals. Building a sustainable future requires a plan longer than five years and the maturity to put the country first.