Two simple questions right off the bat. Does the country consume more than it produces? Does the country import more than it exports? The answer to those questions will show that there is an imbalance. And the third question that automatically follows is: ‘where do we go from here?’ There is a just as simple answer for that: ‘diversify the economy and the country will flourish’.
That is where the dilemma begins. Actually, the problem itself is not the diversification. It is the many opinions that try to shoot so many holes in whatever is suggested for diversification, that even Swiss cheese looks like a solid mass. And yet, that is even the worst. The worst is that no realistic solutions are brought forward in the first place and if…, then there is no serious follow-up.
For most of the Caribbean territories, tourism is the major source of revenue, up to about 85%. Please pardon my French but anything over 50% is insane. Economic diversification is the process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets. It is applied as a strategy to encourage positive economic growth and development.
It doesn’t mean at all to give up tourism. Don’t try to pull that one as a counterargument. Diversification shall be a distinct art to unite while leaving all differences intact. Adding lines of business that are different from the current is the development strategy which in some cases may complement each other.
Where does the logic all start? Maybe by making a list of all items, be it products or services, that are imported. Which of those items could be produced locally? Could alternative products be produced locally and be marketed as ‘authentic’ to give it extra value? Can these locally produced items be exported. Authenticity could again give it more value and make it competitive when exported. By following this path of increased production, also employment could be boosted. Now we’re talking business, and this talking business does not just give workers something to do, but also people with more extensive skills like managers, administrators, marketers.
Not all imports can be eliminated and that is not the purpose of this exercise. However, it may create what is called a ‘trade balance’ between import and export. It will have the monetary advantage that more money stays in the country and can increase the wealth of the population, not to forget that it will benefit the government coffers. A healthy and flourishing economy.
Does it hurt tourism activities? No, it doesn’t, and that wasn’t the purpose either. Some of the locally produced items can be used by the tourism and hospitality industry. It is just about creating additional business of a third kind and create a balance of at least 50/50 as for where the revenue of the economy comes from.
Does it need academics and consultants that cost a lot of money and taking three months to come up with a conclusion? No. There is no need for lengthy studies that use expressions that many don’t understand anyway and contain long paragraphs with chapters like ‘focusing on strategies to..’, ‘addressing the achievement of..’, ‘implementation of…’, ‘establishment of…’, ‘fostering the development of…’, ‘instigating…’, etc. Baloney, it just takes some local bright impartial minds in the community and maybe a leader who can say: “I love it when a plan comes together!”
To summarize it, this is about eliminating a problem by pinpointing exactly where there’s an opportunity. The tourism industry has its proven vulnerabilities. Diversification creates opportunities. Vulnerabilities require the ability to counter and to withstand shocks which is called resilience.
Diversification increases resilience. Diversification brings competitive advantages and allows to reduce business risk. It does not only strengthen the local economy, but it also enhances the community’s quality of life. It creates employment and better paid jobs. It motivates young people.
So, what in the world does it need to get started? Protein bars? A strike of lightning? A pressure cooker?
When an economy is like an old battery, it needs new generators to charge it up. It needs fresh thinking by local bright people that have common sense and who start by making a list of all items, be it products or services, that are imported but can be produced locally and then follow the line of thinking as described above. They can make a diversified economy in the Caribbean flourish.
Fully endorsed. We have the grey matter and creativity to realize diversification. Sadly the enabling environment is absent.
How about export of water? A forgotten subject! Maybe Dominica should put a bit of a task force or think-tank together to explore the opportunities. Actually, the other islands should also do so. Kalinago products are authentic and could be interesting for export or even be sold in the shops on the various cruise ships (many of them don’t come to Domica anyway, so it would not take away anything form the sales on the island). Authenticity has value!!! What about fashion and unique summer clothing?
How about fashion, unique summer clothing. Can be a home industry with coordinated marketing.
Coincidentally, my “Bare Minimum” fashion label is just that…cool fashions for the Caribbean! It’s an idea I’ve been working on over the last couple of years and the collection – ranging from casual wear to evening dresses – is now ready for launching.
The link shows a carnival design from a year ago. https://sculpturestudiodominica.blogspot.com/2021/01/dont-stop-carnival.html
Minor crop, mono-industry, monopoly – anything with ‘mono’ is hardly of any good use. Almost all the Caribbean countries compete for a slice of the same tourism pie. None of these countries thinks outside the box.
Diversification of the economy, the huge imbalance between import and export, have to be corrected if these countries are to experience economic growth and a better life for all our inhabitants.
A few years ago the Caribbean countries import Ibill was some $28 billion. No wonder the region suffers from severe indebtedness, growing poverty and increasing unemployment. Tourism alone cannot be the panacea of our socio-economic woes.
In the case of Dominica, the current regime has tunnel vision, singularly focused on building hotels. No vision. It’s no wonder Dominica’s economy is so anemic. We need to explore new avenues of revenue like developing the blue and orange economies. The marine resources plus our cultural and arts can bring about greater economic…
The specialization of subjects, which is increasingly instilled into further education, is contrary to the thinking required for diversification. And the need for practical hands-on skills is totally ignored. Leonardo da Vinci, and other brilliant innovative polymaths were all rounders, both in theory and practice.