building the caribbean conglomerate

1. Building the Caribbean Conglomerate How effective are Caribbean multi-national Corporations at going global? A Discussion 1

2. Globalisation Definitions/Description Caribbean Context What is needed Caribbean Examples Conclusion References 2

3. Globalisation Globalisation is seen primarily as an economic phenomenon involving the increasing interaction or integration of national economic systems through the growth of international trade investment and capital flows. 3

4. Globalisation US President-Elect: “instead of having a set of policies that are equipping people for the globalisation of the economy, we have policies that are accelerating the most destructive trends of the global economy.” Poverty intensification; depression of human capital; MDC-led hegemony of capital markets; suppression of cultural distinctiveness; environmental degradation. 4

5. Globalisation Rapid increase in cross border social, cultural and technological exchanges. Examples: Innovation and re-internationalisation of cricket led by a US billionaire. Cultural industries: music; film; fine arts Software development; telecommunications expansion. 5

6. Globalisation Dr Bhoendradatt Tewarie: Globalisation as a process and ideology is exponentially removed from what it was in 15th century and continuing up to World War 2 in the mid 20th century. His prescription for Caribbean success is to transform the society’s systems into “knowledge economies.” 6

7. Globalisation Dr Bhoendradatt Tewarie: argues that indigenous companies have been able to meet the challenge of globalisation through a process of “efficiency gains, mergers and acquisitions, and export expansion.” A major corollary is that firms and companies are better able to act decisively than governments. 7

8. Globalisation Dr Bhoendradatt Tewarie: “Any significant integration now taking place in the region is taking place at the level of business.” EPA: clearly increasingly interconnected CARIFORUM economies will militate against traditional ideas of political sovereignty. 8

9. Globalisation Dr Bhoendradatt Tewarie: Once we embrace economic liberalisation and structural re-adjustment, we must downplay arguments for continued preferential arrangements in trade. There is no glowing globalisation success story in the Caribbean thus far due to lack of full liberalisation, lack of completion of structural adjustment, plus continued assertions of nation-state sovereignty. 9

10. Globalisation Governments role is to provide supporting policies/incentives, the enabling infrastructure and effective governance. Establishment of the Caribbean Trade and Adjustment Group, CTAG: Improving the competitiveness for Caribbean development 10

11. Globalisation CTAG Macroeconomic Priorities: Coherent trade policy/rationalize and strengthen institutional capacity. CDB as the premier development financing institutional with greater capitalisation. Revitalise and improve the competitiveness of traditional agriculture. Improve and implement a Caribbean Tourism Development Strategy 11

12. Globalisation CTAG Macroeconomic Priorities cont’d: Establish a programme of competitiveness. Organise a Caribbean Economic Forum Prepare and deploy a Human Resource, retention and Development Program. Towards developing a Regional Development Strategy to improve competitiveness and adjustment of the Caribbean to globalisation. 12

13. Globalisation What is needed: Stronger emphasis on the social capital that President Elect of the US, Barack Obama alludes to –hence brain power and intellectual skills become more important than muscle power. Our education model lags behind. Innovation 13

14. Globalisation What is needed (cont’d): State-of-the–art ICT: e.g. economical cellular telephone service has lead to the democratisation of telecommunication in the wider Caribbean society including Haiti. Broadband has become necessary for video/data intensive communications particularly for firms involved in e-commerce and CAD/CAM applications. 14

15. What is needed (cont’d): Business leaders who are disposed to seeking, evaluating and taking informed risks, pursuing global alliances, exploring a variety of financing mechanisms and approaches and skilled in ICT, human relations and communications. Incentives/merits which reward effective management, developing expanded markets and improved competitiveness. 15

16. Globalisation What is needed (cont’d): Ongoing training and development/retraining for leader who are ready operate in the global market place as it evolves. Supporting empirical market research of local, regional and global trends and response to (new) products/services. Customer-centric marketing NISE deployed throughout the region; identifying and rewarding service excellence. 16

17. Globalisation What is needed (cont’d): A new approach to HR management; diversity; increased productivity; talent management; increasing the flow and quality of corporate leaders; Standards; product certification; regional harmonisation Ongoing lobby of Governments to support operating, marketing and financing thrusts. Win/Win negotiations. 17

18. Globalisation Caribbean Examples: Barbados at the macroeconomic level Jamaica ICT sector development Sagicor’s development ICT potential 18

19. Globalisation ICT Options: Internet Instant/text messaging Video conferencing E-meeting VoIP Satellite Radio Kindle E-paper Machine Translation (MT) software 19

20. Globalisation Conclusion: Is failure to adjust an option? References: Papers by Dr. Courtney Blackman, Shahid Yusuf, a World Bank Research Manager; Richard Fletcher, Chair of CTAG; Numerous Nation articles and editorials; Dr. Tewarie, Vice chancellor and Campus Principal UWI, St. Augustine; Sandra Pianalto, CEO, Federal Reserve Bank of Cleveland; IMF and World Bank papers; the African Trade Policy Centre; Dr. Havelock Brewster; Prof. Frank Alleyne; Prof. Winston Griffith; Dr. Keith Nurse; SRC; Carlos Holder, Central Bank, Magnus Whitehead, BCCI & PSA Harold Beckles, Researcher 20

21. V-Anne gittens Thank you 21