«Medium-Term Policy Framework 2011-2014 Ministry of Planning and the Economy October 2011 Table of Contents PREFACE BY THE MINISTER OF PLANNING AND ...»
Over the medium-term, it is expected that the private sector will play a greater role than in the past in the area of investment in support of economic transformation. Government is of the view that an annual investment level of approximately $20 billion (US$ 3 billion) by the private sector both local and foreign should complement the annual $7-8 billion in public sector investment spending to be undertaken by Government during the same period. In addition, publicly owned institutions also invest heavily in infrastructure development and there are going to be opportunities for divestment of some State-owned enterprises over the next three (3) years. Investment from the private sector is needed to improve productivity and Innovation for Lasting Prosperity 100 Medium-Term Policy Framework 2011 - 2014 competitiveness, to expand exports, to begin to expand beyond the CARICOM market and to diversify its investment portfolio in alignment with new markets.
The domestic private sector must strive to double exports in the non-energy sector over the next three (3) years as Trinidad and Tobago has signed and will continue to pursue new trade and investment agreements with countries in Latin America. The manufacturing sector currently utilises under 70 per cent of its productive capacity and the services sector has real prospects for export growth especially in information, knowledge and creative services. The doubling of exports and operating at near full capacity in manufacturing and expanding the services sector would mean an increase in jobs, national income, growth and of course profits. The focus for existing private sector firms must be on market penetration and expansion given that market access has been achieved through investments to improve competitive capacity and innovative approaches to business growth.
There is the need for existing companies and new entrepreneurs to undertake investments in some of the existing and emerging sectors which have the capacity for cluster formation and value chain upgrading. Examples include: culture, tourism and food and beverage. The domestic private sector is capable of capitalising on wider regional markets, notably Central America as the stepping stone towards conquering global market opportunities. As for the larger companies inclusive of the conglomerates, there must be investment in R&D as well as restructuring and re-engineering for growth rather than just performance. A focus on performance will improve margins but it will not achieve growth. Achieving a greater share of international markets, acquisitions or joint ventures and cross border clusters, are the areas in which the local private sector should focus its attention and energies.
Government is committed to creating and providing the environment for the private sector to excel and will, therefore, work with the businesses to achieve investment targets, improve the business climate as well as enhance competitive, technological and innovation capacity. For its part, Government will improve the policy and regulatory environment for business expansion.
In addition, public sector investment spending also has the benefit of increasing growth in the private sector primarily through the execution of infrastructure-type projects.
Collaboration between the Government and the private sector in the provision of key services will be advanced through the use of the PPPP model for delivery of suitable infrastructure projects. The objective is to alleviate infrastructure bottlenecks in Trinidad and Tobago and expand access to effective and efficient infrastructure and infrastructure-related services
A key comparative advantage of Civil Society (CS) is its ability to respond to the different circumstance and needs of the forgotten and disadvantaged. CS serves as a much needed interface between the public and private sectors and persons and communities at the grassroots level.16 Their position at the frontline of community activities allows them to formalise the input of citizens and develop more targeted and effective interventions to local problems, some of which are internationally created.
Strong and strategic partnerships with civil society groups are key to the successful planning and implementation of the agenda for social and economic transformation, especially in the context of globalisation which can widen inequities and place more persons on the margins, leaving society more polarised than ever in terms of wealth and possessions.
The agenda for transformation requires that our CS acquire new skills and competencies in developing new communication methods, as well as stronger networks and more effective methods of cooperation, which could lead to new technical and funding opportunities from private and international sources. It also requires new systems in terms of public access to information, the mutual sharing of competencies in technical and administrative areas and the development of codes of conduct for organisations and their interaction with others.
The goal is to reduce uncoordinated and isolated interventions that are planned and implemented without the knowledge and involvement of key actors and to increase the relevance and legitimacy of CS.
Government’s model of regional development, which is based primarily on community involvement and participation, relies heavily on social partners including Civil Society.
Given the ability of civil society groups to network, share information, access services and Civil Society (CS) consists of Non-Governmental Organisations (NGOs), Community-Based Organisations (CBOs) and Faith-Based Organisations (FBOs).
Innovation for Lasting Prosperity 102 Medium-Term Policy Framework 2011 - 2014 opportunities for educational advancement, they offer invaluable input towards community development. Together, they also form a network representing the voice of the people on issues affecting communities. CS will therefore be expected to a play greater role in the establishment of Regional Development Plans as well as in developing the five (5) growth poles communities identified by Government. In addition, through the Economic Development Board, and through the establishment of the Civil Society Board (CSB), CS will be able to contribute to and influence, economic policy and socio-economic decision making.
ROLE OF THE LABOUR UNIONS
Economic growth and development cannot be realised unless the workers who are engaged in the production of goods and services assist in determining how goals and strategies are to be pursued. In this context, the labour movement is recognised as a positive force for economic development and trade unions are considered central to the maintenance of an effective industrial relations environment that balances the need for private enterprise to become and remain competitive with the aspirations of workers for higher wages and better working conditions.
Government sees the role of trade unions as more than just collective bargaining. Firms are the ones that are engaged in competition and as representatives of the workers, trade unions are vital stakeholders in the process of planning and decision-making for the conceptualisation and implementation of programmes and projects to achieve business growth, improved levels of productivity wherever workers are located and sustainable development for our country.
Trade unions have contributed to social and economic transformation by providing stability in the country, ensuring that the rights of workers are maintained. It is essential that the labour movement play their rightful role in helping to define and in supporting an enlightened socioeconomic transformation agenda, through an effective multipartite engagement that allows all parties to have a meaningful and responsible role in the process. Workers must not be alienated from the development process and to ensure inclusion, workers must participate.
The unions have an important role to play in raising productivity in the workplace by dialoguing with management in search of innovative ways for the enterprise to become globally competitive. We view the labour movement as partners in development and part of the solution to the creation and development of a highly skilled, better paid workforce and an innovationdriven economy. Innovation derives from human capacity and the human imagination and we
NEW INSTITUTIONAL ARRANGEMENTSThe success of the economic transformation agenda depends on the supporting infrastructure to achieve clearly identified objectives. Accordingly, six (6) entities have been created by this
Administration to sustain strategic focus, coordination and efficient execution, as follows:
The Ministerial Council will monitor economic developments and progress towards building an innovation driven economy. The CCI is mandated to take action to make our firms more competitive, expand exports and improve our competitiveness ranking in the world. The role of the EDB is to reshape our strategies for economic development by facilitating diversification and achieving a diversified economy within the framework of sustainable development. The EDB and the CCI will work together and support the Ministerial Council, chaired by the Honourable Prime Minister and execute actions as required to achieve competitiveness and diversification with high value-added investments. The Ministerial Committee on Energy will focus on issues related to the petroleum economy. The CSB will bring the community perspective to the national table of discussion and the Institutions and projects recommended by the High Level Expert Panel on Arts and Culture will be actioned during the course of the next three (3) years.
Both the CCI and the EDB work under the coordination of the Ministry of Planning and the Economy and will be required to develop strategies which converge to deliver the key objectives we seek to achieve as a Government for the benefit of the people of the country
whom we are committed to serve. These have been clearly identified as:
• Improving the competitiveness of existing industries by facilitating higher levels of productivity
• Identifying industries in manufacturing and services outside the energy sector which Innovation for Lasting Prosperity 104 Medium-Term Policy Framework 2011 - 2014 can double exports over the next three (3) years and working with them to achieve stretch targets
• Strengthening human capital in existing firms and working with educational institutions to align education programmes with market demand and new investment strategies which migrate our industrial base upward in the value chain
• Strengthening cluster development, and facilitating cluster formation
• Facilitating entrepreneurship and new business creation locally while stimulating small and medium business creation and development
• Attracting foreign investment, facilitating joint ventures and providing recommendations on equity participation by the State
• Supporting the Ministerial Council to establish, build and strengthen a National Innovation System to facilitate an innovation driven economy
• Facilitating the greening of existing industries and implementing a strategy for investment in green technology based industries
• Identifying impact indicators of proposed actions including targets for investments, job creation, and absorption of skills and competencies at a higher level
• Creating, developing and strengthening a National Innovation System in collaboration with other institutional parties and stakeholders In planning for the long term prosperity of the country, the involvement of citizens is an essential element in the economic transformation process and, in this regard, the Civil Society Board (CSB) has been formed consisting of representatives of key NGOs as part of the participatory governance model. The CSB will institutionalise the consultative process by which the public is involved in the decision-making process in national social, economic and physical development planning. The CSB will report through the EDB to the Ministry of Planning and the Economy.
The High Level Expert Panel on Arts and Culture was established to promote the advancement of arts and culture as a new strategic industry. The Panel will assist in the development of innovation and entrepreneurship by advancing key entrepreneurial projects within the creative sector. This initiative will create opportunities for employment as well as a distinct tourism product. As part of social transformation effort, the Panel is expected to contribute towards the building of national patriotism beginning with the organisation of events surrounding the country’s 50th Anniversary of Independence in 2012. Structures will be put in place to enable the Panel to do its work and to ensure that projects are actioned.
In the final analysis, the success of the social and economic transformation effort will
Innovation for Lasting Prosperity 106 Medium-Term Policy Framework 2011 - 2014
APPENDICESInnovation for Lasting Prosperity 107 Medium-Term Policy Framework 2011 - 2014 Innovation for Lasting Prosperity 108 Medium-Term Policy Framework 2011 - 2014
APPENDIX IKey Programmes and Projects Implementation of this MTPF in support of the theme ‘Innovation for Lasting Prosperity’, will be achieved in part, through the adoption of a set of key programme and projects that are outlined in the 2012 PSIP and which will form the basis for the preparation of a three-year PSIP 2012-2015. The 2012-2015 PSIP will build on the evaluation and prioritisation of project proposals in the context of sectoral and national development objectives.
The following are the key programmes and projects that are aligned with the strategic priorities for the current medium-term.
CRIME AND LAW AND ORDER
• Citizen Security Programme
• Purchase and Installation of Maritime and Land Surveillance Equipment for Air Guard
• Acquisition of Fast Patrol Craft
• Acquisition of Helicopters
• Purchase of Vehicles and Equipment for the Police Service
• Support to Mediation Services
• Family Court – Institutional Strengthening
• Purchase of vessels for Coast Guard
• Logistics Support for Fast Patrol Craft (FPC) Programme