THE EMERGING INTERNATIONAL TRADE

ENVIRONMENT, CHALLENGES FOR RETAINING

MARKETS AND JOBS, AND HOW OUR ORGANISATIONS SHOULD RESPOND

WHAT IS THAT TRADE ENVIRONMENT

• COLD WAR VS NEW TRADE ENVIRONMENT– 1900’s – 1990’s Caribbean had a protected

economic environment ensured foreign exchange earnings

– Guaranteed market for products had duty free access to safeguard market-sugar, bananas rum

– Easy loans, technical assistance and open immigration policy

WHAT IS THE NEW TRADE ENVIRONMENT

• End of the Cold War– Change in policy towards Caribbean– Removal of protection – markets, immigration,

loan conditions• Changes in Technology

– Wider choice, connectivity, 15M new global workers on stage; China, India

– Greater collaboration and global integration• Wealth Explosion

– Effective people groups - become wealthier– Ineffective economies will die– 1 trillion dollars moves around world daily

THE CRITICAL IMPORTANCE OF FOREIGN EXCHANGE EARNINGS

• Foreign exchange dependent economies –balance of payment issues

• Vital for survival of manufacturing, tourism, quality of life of citizens

• Requires competitiveness of Caribbean products & services to attract the taste and purchases of extra-regional consuming public

• Requires broadening the range, improving its quality and establishing marketing channels

IMPACT ON CARIBBEAN ENTERPRISES

• MANAGEMENT – limited skills & experience in– Strategic competitive planning– Aggressive penetrative marketing– Poor business process management– Human resource capacity building – Transformation management

IMPACT ON CARIBBEAN ENTERPRISES

• WORK FORCE – limited development of– Commercial performance– Commercial urgency– Problem-solving skills & involvement in

planning– Customer preservation – Sense of the link of competitiveness & job

retention orientation– Culture of continuous improvement

IMPACT ON CARIBBEAN ENTERPRISES

• ENTERPRISE VIABILITY– Capital-output ratio unfavourable– Real unit labour cost uncompetitive– Innovation limited– Unresponsiveness to customer issues– Comfortable in narrow national marketplaces– Profitability based on price increases not

efficiency, new products, value added or market growth

– Must now compete internationally

NEW WORLD ORDER

• RULES BASIC DESIGN & PHILOSOPHY• The most efficient enterprises win regardless of

nationality• MFN, NATIONAL TREATMENT,• In practice – “what is mine is mine, and what is

yours belongs to both of us”- Agriculture, Gambling, Textiles, Airlines, Shipping

• Want access to gov’t procurement, financial services, professional services, health, educationand goods

• Demand compliance on bananas, rum, sugar

EPA’s –ECONOMIC PARTNERSHIP AGREEMENTS

ACP-EU

464M

ACP-EU

464M

BARRIERS TO TRADE

• TECHNICAL BARRIERS TBT –• Sanitary & Phyto-sanitary Requirements

for ice-cream into Britain, Ackee into U.S., Beer into U.S ,

• MUTUAL RECOGNITION AGREEMENTS – UWI trained professionals access

• TECHNOLOGY- use of banking system to block trade and enforce barriers – settling of credit card debts

WHAT WE NEED TO DO• BUSINESS PROCESS MANAGEMENT• MANAGEMENT TRAINING• INVESTMENT IN TECHNOLOGIES• HUMAN RESOURCE RE-ENGINEERING• CREATION OF A LEARNING

ORGANISATION• MARKETING AND DISTRIBUTION

PROGRESSIVE IMPACTS

• AGRICULTURE – HANDS & FEET• MANUFACTURING – HANDS & FEET a

little use of HEAD• SERVICES - HEAD, HEART, HANDS

AND FEET• SERVICE requires physical, mental and

emotional labour

BUILD A CULTURE OF SERVICE EXCELLENCE

• Shift mgt focus - operational – strategic planning, H.R. Mgt & operations

• Shift worker focus – short term – business goals, personal excellence,

• Build a manager – people mgt. skills, planning &problem-solving skills

• Build an employee- energetic in service; innovative, efficient & cost conscious

STRENGTHS & WEAKNESSES• AMERICAN

• Strong economic skills• Creative and innovative• Time –conscious• Results-oriented• Loyal to a goal• Fast-paced work

environment• Impersonal & ruthless

society• Relations & work on different

tracks• Winner takes all

• CARIBBEAN

• Strong social skills• Caring social networks• Little commercial urgency• Relationship-sensitive• Loyal to a person• Comfortable nurturing

environment• Relations come before work• Relations & work on same

tracks• Inconsistent service

CARIBBEAN – RELATIONSHIP CULTURE

• Strong social skills• Caring social networks• Little commercial urgency• Relationship-sensitive• Loyal to a person• Comfortable nurturing environment• Sense of entitlement• Short term horizon• Result is a gift• Relations come before work• Relations & work on same tracks• Inconsistent service

IMPACT OF RELATIONSHIP CULTURE ON ORGANISATIONAL PERFORMANCE

û STAFFû Ltd. responsbility for

performanceû Risk averseû Live in emotions û Ltd knowledge of

businessû Loyal to person vs goalû Personalise feedbackû Sense of entitlement

• MANAGERS• Fear hot soup • Relate but fail to lead• Facilitate trade-off culture• Ltd training in people

development• Fail to insist on

performance• Compensate for low

performance

WALL OF WONDER

Rihanna

Bob Marley

Steel pan

SparrowCarnival

Alicia Keyes

Sidney Poitier

Cicely Tyson

Farrakhan

Alexander Hamilton

Penny Commissiong

Jennifer Hostein

Wendy Fitzwilliam

Derek Walcott

Arthur LewisLawrence Nurse

Billie Miller

Liz Thompson

Shridath Ramphal

Eric Williams

Forbes Burnham

Edward Seaga

Norman ManleyErrol Barrow

William Demas

WALL OF WONDERBrian Lara

Courtney Walsh

Wes Hall

Garry Sobers

Everton WeekesDesmond Haynes

Khanai

Joel Garner

Gordon Greenidge

Curtly Ambrose

Clyde Walcott

Frank Worrell

Viv Richards

Ato BoldenObadele

Darcy Beckles Suki King

Philip Als

Olympic relay teams

Asafa Powell

Kim Collins

Richie Richardson

OUR FUTURE• BRILLIANT BY ACCIDENT

– Beautifully and wonderfully made– Living below our potential– Increased vulnerability to external shaping

• BRILLIANT BY DESIGN– Focus on national development– Set economic targets to excel internationally– Set social targets to have a high quality social &

spiritual life

AFRICAN PROVERB

Every day a gazelle gets up and says, I must outrun the fastest lion,

Every day a lion gets up and says, I must outrun the slowest gazelle

So whether you are a lion or a gazelle, when you get up in the morning, start running