Realising the Economic Benefits of the new North-South Highway in Jamaica: An Open Letter to the new Minister of Transport

Dear Hon Minister Henry

Welcome back to your Ministerial post and congratulations on your electoral success with the Jamaican people. Let me thank you for the opportunity to contribute to the public consultation regarding the determination of toll fees for the North-South highway in Jamaica. Also congratulations to the CHEC and its workers on  completing this, one of the most important transport infrastructure investment projects that Jamaica has made since independence. 

Yes individual motorists and drivers  will do their own personal calculations to see how the benefits of using the highway (reduced petrol consumption, reduced wear and tear on their vehicle, value of their time saved etc.) trades off against the costs of them using it (the toll charge primarily). Some may need to be "sold" on this perspective !!

Then the operator of the toll road has the economic forecast calculations to do, about getting the highest number of users possible for each hypothetical fare level.

So how do we square these different and conflicting interests?

WELL I believe the FINAL determination of the toll rates charged must be done such that it results in the COUNTRY as A WHOLE economical benefitting from the FULL usage of this investment asset. And fortunately there is modern technology available, through vehicle e-tags (like SUN PASS in the USA and Congestion Zone charging in the UK), which can introduce THE NECESSARY element of PRICE DIFFERENTIALS in the toll charging principles applied.

Through the use of such technology, frequent users can have a reduced charge structure which declines for each time the toll is used. Or they could have an annual or weekday pass. Tourist based operators can be distinguished from local commuters by vehicle coding. Time of day usage charges can be made variable to encourage the heavy goods to travel during the night for example. Week day rates could be made different to weekend rates separating the principle "business" from "leisure" users.

If this was not incorporated in the original design of the highway toll operation IT SHOULD BE DONE NOW - even if it means a little more investment in the technology required - number plate recognition cameras, registered database users, e-tags (apparently there is evidence of this already in place)!! 

Fortunately for indicative purposes, there will be some real life data available - the historical toll income and actual vehicle usage of the initial "middle" leg of this highway (opened over a year ago) should be available and can be analysed to provide some basis for determining the differential toll prices.

The highway has the potential to open up considerable economic benefits when considered in the wider national context and so the setting of the toll charges should PRMARILY be dictated by this factor. If such strategic value had not been thought of prior to its design and commissioning then this is a remarkable underachievement in government performance - irrespective of whichever party it was.

By this I mean, for example, the potential to develop corridors of commuter developments - properly planned and developed.

Most importantly the linking of the 2 significant diverse economies of the metropolitan capital of Kingston and the tourist sector - Ocho Rios, cruise ship traffic and others - with create synergies and opportunities - where the resultant ECONOMIC TOTAL BENEFIT is greater than the sum of the individual parts. This facilitator of innovation is a key to GROWING the country's economy.

There are also many important intangibles which will accrue - from experience elsewhere - such as less pollution, less environmental damage, more efficient use of vehicles, transportation time savings to companies, probably fewer road accidents and deaths than on winding roads.

Indeed our company, Newer Worlds, is already developing initiatives and investment projects which leverages this new economic dynamic and paradigm shift for commercial interests.

In the majority of cases worldwide, large scale transportation infrastructure projects DO NOT get fully paid for ONLY by the direct users - that is to say, in this case, the motorists.

It usually requires a subsidy by the Government - that is to say ALL TAXPAYERS eventually contribute towards part of its CAPITAL cost recovery - one way or another. (Maintenance of the physical asset - its operational cost - is another matter and these two different cost components should be considered separately).

What we DON'T want to happen is to see an investment project asset languishing due to under-utilisation through low usage by the public. Jamaica has already lost YEARS of economic development by NOT having appropriate 21st century infrastructure (old transport links, high electricity charges etc) and also by having had this same asset sit idle for many years, incomplete, until the Chinese came along and finished the job.

Jamaica has a lot of economic development to catch up on - so let us harness the potential of this national asset to its fullest with a proper DIFFERENTIAL toll charge structure APPLIED with the benefit of modern technology.

The Future of Kingston Harbour in 21st Century Global Maritime Trade

The decision facing Jamaica and China in determining the location of the proposed "Very Large Ships Port" is one that will set the foundations of relationships between the two countries in years to come. So it would be prudent not to rush such a decision and look carefully at worthwhile alternatives.

So far we have only heard of one option being seriously considered- that of the Goat Islands. One can see some of the initial attractions of this location. It is a "green-field" site (not so good if you are a concerned environmentalist) which means it will be easy to clear the land and erect the buildings without having to consider any resident  people and associated issues.

If China wants to embark on an all-inclusive / exclusive arrangement this is a good option. It would be free, ostensibly, to do as and what it wants to do in a secure, ring-fenced setting. It could almost "sanitise" itself from direct unwanted attention from, and engagement with, the wider Jamaican society.

However this is a short term view with limited positive upsides and risks of major failings in future years. We are already witnessing the fallout between parts of the local Jamaican society and the Chinese with regards to a lack of environmental sensitivity and consideration about Goat Island. Furthermore if the Chinese are providing, deliberately or unintentionally, a competing system to traditional world maritime trade then there is a risk that a Goat Island venture could become a failed white elephant in the not too distant future.

So let us consider an alternative - building the proposed port WITHIN the Kingston Harbour. Use the opportunity to economically  regenerate vast sections of downtown Kingston - that should appeal to politicians with constituencies located there!! Utilise the existing abandoned tracts of land and clear some with derelict buildings to place this new port on the water front west of the existing New Ports East and West. Engage the local downtown Kingston communities in the construction of the port initially and subsequently in as many aspects of its operations as feasible. 

Make the benefits of this infrastructural development REAL to Kingston and its population. In locating this new port close to existing ports it gives the Kingston ports "twin" operations more flexibility whatever the future of maritime trade structure and hubs. There will be multiplier effects too with the downtown economy as port and other workers earning money will spend that income in their adjoining communities. Crime and violence will diminish as unemployment will be substantially reduced. Affiliated industries - many also maritime related - will more likely take root in the waterfront areas and downtown communities who will have a tangible stake in the success of this initiative. This could contribute to a much needed revival of the entire water-front area and poorer communities of downtown Kingston. It will have benefits that extend to the tourism, cruise ships, leisure, heritage and other sectors.        

 The message to the Chinese is - do they want to collaborate with us in Jamaica in real and meaningful partnership on this project? There is so much we can all benefit from with the successful implementation of an appropriate operational model. Yes the Kingston Downtown Revival Model initially it will appear more challenging and have more complexities than a Goat Island Green-Field site. But the synergies and benefits of the former option far exceeds the latter and is certainly more sustainable in the long run.

The Chinese have a long history of their peoples enjoying successful relationships in collaborating with, and integrating into Jamaican society.

This was epitomised in Tessanne Chin's successful rendition on the USA TV show "The Voice" last week - personifying what is possible when diverse communities work in harmony.

So, as she sang in that song, we too say to the Chinese and Jamaican parties in this matter - "YOU GOT TO GET UP AND TRY AND TRY AND TRY" 

 

THE FUTURE OF GLOBAL MARITIME TRADE IN THE WESTERN HEMISPHERE - Negotiating for Jamaica's Future

From the UK, I read with growing interest the development of "negotiations" between the Government of Jamaica and the Chinese representatives of CHEC. Of course we are not hearing the full details yet. But with all due respect to the relevant officials, I am not imbued with any confidence for an optimal outcome for the country of Jamaica.

 
I am reminded of the sell-out of Air Jamaica London Heathrow landing slots for pittance by a previous Government Administration. But these discussions are of a different order of magnitude. What is being played out here - regarding Goat Island, an International Logistics Hub etc. - is hugely important, strategically and commercially, for Jamaica's future economy and position in the world.

You see, you  will only get in life what you can NEGOTIATE. So what are those representing Jamaica doing in this regard?  When one negotiates its best to know both your own position (know thyself - your PEOPLE, your STAKEHOLDERS, your ENVIRONMENT, your strengths and weaknesses etc.) AND know the position of the other party (their motivating factors, circumstances, short and long term objectives etc.).

Are we doing well on either account? Do we in Jamaica know what we want as priorities and how to achieve it? What is sacrosanct to us? What is our quid pro quo we would ask of the other party? 

Do we have a number of options to bring into play? Negotiations are strengthened when you have more than one suitor for example. Even if there is only one suitor, can we propose several counter-offers which, yes, sell desired benefits the other party wants yet has also benefits to our advantage. Have we done our homework and got the vision or  imagination to operate in this manner. As the good book says "Without a Vision the people perish".

And do we know with whom we are negotiating? What is their experience in other places of the world where they have operated, or continue to operate? What is the broader context of their purpose? How important is the Jamaican option to them?  Who is their competition? How do they view success? What are their values?

I suspect we under-estimate our position of strength in this ongoing transaction. What is occurring now is part of a bigger geo-political restructuring and the beginnings of an economic seismic shift in maritime trade and logistics sector. This sector is in for dramatic transformation in the Western Hemisphere in the coming decade and Jamaica is well positioned GEOGRAPHICALLY to benefit from it.

But is Jamaica well positioned OTHERWISE to capitalise on it?  Time will tell.

In the meantime try to negotiate from a position of strength. Have a united team, be creative, seek alliances, understand cross-cultural issues, gather market intelligence, build trusting and respectful relationships etc. etc.

In the ends it is all about relating to people - your own and others.    

Gun Control in the USA and beyond

GUN CONTROL IN THE AMERICAS -

YOUR SECURITY (USA) IS OUR SECURITY (CARIBBEAN)

Tragically, it happened again in the US of A.

An angry young male took up some high powered gun weapons, went to a school and shot dead a lot of innocent people in an evil rampage. The usual predictable responses ensue - Why did he do it? What was the background? How can this be allowed to happen? Can't we do something about it?

This is an opportune time for leaders EVERYWHERE to step forward - especially in the US of A. and from its well-wishers in the Caribbean, Mexico, Canada (its closest neighbours) - to ACT NOW and implement practical solutions to this growing problem in society.

Although these media-frothing events unfortunately happen from time to time (usually in the USA) they provide a focal point for what happens on a DAILY SCALE - smaller, but cumulatively FAR MORE SUBSTANTIALLY DAMAGING - in Caribbean countries touched by the plague of the hand gun culture and lawlessness mentality.

That is to say, EVERYDAY in the Caribbean, someone, somewhere, takes a gun out and kills someone else.

CONTEXT

Since on such heart-wrenching occasions it is always invoked and referred to I thought I would look at the American Constitution, which states in its Second Amendment:

"A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed"

First up, I see no connection between loners firing off weapons at random domestically and "militia"

Nor is there any connection between "security of a free state" and individuals living in fear because their fellow citizen may have a gun.

In truth the Constitution literally doesn't even tally up to support what some people says it does - that anyone in American can get and carry arms as a RIGHT - period!!

No, there is a context and a rationale which people have lost perspective on.

So let's go back to basics and the spirit and OBJECTIVE of what the Constitution in saying in this matter. The principle is surely about citizens in that country being safe and secure and about protecting oneself. And we need to revisit this principle with reference to how Americans now live in the 21st Century, not in some pioneering western days on some frontier-land.

The Security of a Free State

The clear objective of the Constitution is that of security in a free state. Ergo, people should be able to go about their day to day living without fearing that those around them may decide to go on a random shooting spree at any time. So here are some principles to make this more likely to happen - firstly for those citizens who choose NOT to bear arms and then for those citizens who DO choose to bear arms:

The Rights of those choosing NOT to Bear Arms

The personal security of the citizen is equally important should they chose to bear arms or not.

Detectability

I would like to have the right to know if people have weapons in their possession and who they are so I can act to defend myself if necessary. Be they my community neighbour or the person who just walked into the bank or cinema where I am at.

Fore-warned is Fore-armed.

I understand that to some extent this is already required whereby weapons cannot be concealed in public places in some states. The need is there to extend this visibility principle and modern technology makes it possible in so many practical ways.

All guns will be required to have a chip embedded in them, at point of manufacture, identifying them and allowing them to be detectable from say a mobile or cell phone within a certain radius. These chips should not be able to be disarmed or dismantled without rendering the gun useless. Principle here is like a smoke alarm in the toilets on board passenger airliners.

Manufacturers should be required to incorporate these into their manufacturing process.

If the chips are not passive but require an energy source then the functioning of the gun should also be contingent on said energy source.

One should look to see if existing guns could be retrofitted with such traceable chip technology. If not then perhaps obsolete-rendering measures should be imposed to  gradually phase out the functionality of such guns already in circulation. e.g. by fiat, order the cessation of bullet manufacture specific for such existing weapons etc.

Liability

The principle of compensation and restitution needs to be applicable so that if, unfortunately, I fall victim to use of a gun by a third party, someone needs to be held liable for such a scenario. And I don't  mean just the gunman - who is usually insane anyways at these mass shootings.

This liability should be able to be extended all the way back to source of supply - directors of gun manufacturing companies should not be excluded. The principle here is similar to that applied to  cigarette manufacturing companies and resultant deaths from smoking. You make things that kill people and this needs due care and attention.

The penalty of the liability needs to be meaningful, financially punitive so as to be transformational to the whole supply chain of gun manufacture, gun ownership, the marketing, sales and distribution of such arms.

Accessibility

One could argue this horse has long bolted from the stables on this matter. And it is impossible to reign in the gun access now in the USA. But I believe we should still try and reduce the degree of accessibility of most guns to all and sundry in the population.  

To choke off those out there already one could start by requiring manufacturers to stop producing bullets for the destructive guns we wish to phase out and limit public use of. Or at the very least restrict the public distribution of bullets for such weapons - semi-automatics and automatics known to be popular with gun enthusiasts. Ownership of such weapons will now be enforced as illegal and future sales banned, preceded by an amnesty announced for calling them in.

The Rights of those Bearing Arms

A right is not a license and neither does not come free from responsibilities.

The responsibilities that come with bearing arms need to be properly defined and implemented.

Traceability

Since we are dealing with a potentially lethal instrument that can be used to kill another person the principle of licensing guns has been well argued and understood. However it is not fully implemented and today's technologies allows for so much more to be done in this area.

Already items in the food chain are more traceable, and are being more enforced as traceable, than weapons!! And that includes food originating from "Third World" countries!! 

Look to the food supply chain and adopt best practices of being able to trace ALL GUNS from their point of manufacture ALL along the supply chain to those who buy and trade in them. (Ergo, guns should not be able to be pawned).

So at any point in time the authorities responsible for "the security of the free state" will know, from a database, who has which guns - or should have each gun - and be able to trace where it got "lost" in the supply chain, if that happens.

This traceability can be implemented by spot checks and/or requiring regular roll calls of the owners. 

Such spot checks can be made through assignation of priorities and intelligence gathering.

And the loss of a gun somewhere in the supply chain should have meaningful and commensurate consequences for those involved.

Accountability

Those who bear arms also have a responsibility. To show others in the society that they are taking care of them safely. They should be required by law to report to the authorities and show them, at the owner's expense, that they still retain the guns in their possession and to the specification imposed by law. e.g. ID and tracking chip installed at manufacture is still there and working.

The owner of the gun is accountable for its whereabouts and proper functioning at ALL times.

Failure to report loss or theft promptly - within 24 hours - will be charged as a felony.

Those who "lose" a gun in the above supply chain should be held responsible for the ensuring consequences resulting from that gun's use - civil lawsuits for example. The  "It's your property" principle.

Responsibility

The right to bear arms comes with a responsibility to use it safely and appropriately. So since the initial context was a "militia" they should be sent to an appropriate training facility to ensure they are adequately educated and trained - at their expense.

Also the one-off expenditure of buying a gun should extend to a recurring expense of owning it responsibly - such a cost reflects the true nature of the responsibility. This includes need to keep it secure, proof of keeping it safely, proof of still possessing it, operating with detectable function, etc

If the gun owner loses a gun they should be black-listed from owning further guns as this is a clear sign of an irresponsible person.

So there you have it USA - re-visit your Constitution.

You don't even need to change it but you do need to re-visit what it was meant to achieve and re-interpret how that can be done in the 21st Century. 

This home grown terrorism is as important to Homeland Security as the external threats of foreign agents.

Remember the upholding of the Constitution is against ALL enemies - foreign AND DOMESTIC

Transforming the Caribbean Fine Cocoa Sector - TRINIDAD

To effect a major transformation there is a need to change the vocabulary and thus the conversation

Repeatedly local people say the main issue contributing to the decline of the fine cocoa sector in Trinidad is a lack of labour - people unwilling to work in the cocoa fields.

But the real issue is that the entire Industry & Business Model around which the Cocoa Sector was built - over 200 years ago - is, unsurprisingly, obsolete. And no-one owned the responsibility to move the cocoa sector - commercially - along with the times and the externalities that have evolved in that time frame.

Trinidad now claims the parameter metrics to be a "First World" country with salaries and cost of living to match. In parallel, considerable urban migration has occurred and much of what is left behind in the countryside is not sustainable in this country's new economic reality.

No, the REAL issues facing Trinidad's Cocoa Sector (and agriculture in general) are about PRODUCTIVITY, VALUE-ADD and, resultantly, WAGE UNCOMPETITIVENESS. And in the same way the country has been industrialized  - thanks to oil and gas - so too should the agricultural sector move into the modern 21st Century. Through incorporating technology into farming practices, extracting value-add through more agro-processing and via higher incomes from quality assurance, branding and specialization.

What the Trinidad Cocoa sector has still going for it is a wonderful legacy of world class quality fine cocoa beans, top cocoa genetic research, accompanying cocoa gene bank and people still passionate for COCOA.  There is cheap power available in the country and a dynamic entrepreneurial chocolatier group who are making their own way in converting cocoa beans grown locally into value-add drinks and foods.  

The challenge remains in the countryside where the average age of the cocoa farmer now probably exceeds 60 years old. In order for them to pay third parties the going wage to tend to their land and trees - bush clearing, pruning, harvesting etc. - they have to make a lot more money from the ENTIRE associated commercial activity.

Ideally, and a quick solution, would be to get a higher price for their cocoa beans harvested. This relies to some extent on the main buyer in the domestic marketplace - the Coffee and Cocoa Industry Board. There have been some positive changes here in recent times.

But the cocoa farmer should also ensure that the yield the tree per tree is maximized through good land and crop management - planting high yielding trees, pruning them, fertilizing them, reaping properly, minimizing losses, ensuring optimal pollination etc. The solution here is to have teams of workers specialized in these skills and equipped with modern tools and vehicles to execute the work quickly and efficiently. Automation of Labour and Specialization of Labour.  

The farmer could additionally increase the financial returns from their farm by partaking in the processing of the beans themselves into value-add products - either as a collective of growers or some other arrangement with the end-processors. This solution moves the farmer from subsistence commodity growing to an aspect of an entrepreneurial agro-processor.  

Other income earning opportunities include incorporating tourism related activities and environmental related actions into the cocoa farming venture.  

The obvious question though is why with, Trinidad's access to cheap energy, hasn't there been industrial type transformation of the cocoa agricultural activity? All this could be about to change in 2013 with the proposal to build a Chocolate Factory in the country by the CFCF.

The Caribbean Fine Cocoa Forum (CFCF) is the leading organisation in the Caribbean innovating and implementing novel practical solutions to transform the fine cocoa sector into a sustainable entity.   

CFCF, with the support from Compete Caribbean Programme - funded by CIDA and DfID and managed by the Inter-American Development Bank - has submitted plans to mobilize stakeholders to build and operate this facility. This multi-purpose facility, centred around a mini-factory, will provide a game changing catalyst to the entire Caribbean cocoa sector.  

We eagerly await the development and implementation of these plans - see news and projects on the CFCF website at www.caribbeanfinecocoaforum.org.     

Transforming the Caribbean Fine Cocoa Sector - JAMAICA

I was recently asked on a radio interview by its presenter:

   "What went wrong with the Cocoa Sector in Jamaica that led to its long term decline?".

To which I replied:

  "In a single word - NEGLECT!!"

This is the story across most of the Caribbean, but for different reasons in each country. The Fine Cocoa Sector has been in decline in the Caribbean for about 20 years and has reached a critical cross-roads in some of these countries as to whether it will practically survive or not.

The Cocoa Industry Model in each country of the Caribbean is different and in most cases it is now obsolete and not fit for purpose.

For example, in Jamaica it is such that the small cocoa farmers (numbering about 20 thousand) and the Government Cocoa Industry Board (CIB) are fully inter-dependent.

But as a further complication there are no genuine cocoa farmers in that country - there are farmers (mostly owning lands less than 5 acres in size) who grow cocoa as one of several crops on an inter-cropping basis.  For them it is optional to grow the cocoa - but if they did grow cocoa they had to sell it to the CIB  which had a buyers monopoly historically. (This has only changing slowly recently - since 2010 or so)

Over time the trust relationship between the small farmers and the CIB has deteriorated due to delays in payments, stagnant prices paid to farmers, probable abuse of monopoly, lack of re-investment in the CIB asset base and a general drifting out-of-touch with world cocoa market dynamics.  

This declining state of affairs was not in CIB's best interest either.

It had (and still has) massive Dryer / Fermentaries (only 2 of 4 survive in the country) which required huge volumes of wet cocoa bean supply to operate efficiently and yet the CIB did not grow much wet cocoa beans itself.

This considerable fixed-cost asset base and increasingly high cost of operating antiquated dryers (fuel oil fired and electric) meant that its operational profit came under pressure many years ago.  

 

And where are we now in 2012 - with a good world price for both bulk and fine cocoa prevailing?

Most Caribbean countries are unable to take advantage of the favourable market conditions and in fact have a cocoa sector that is stuck in a kind of time warp.

The challenge is how can the Caribbean Cocoa Sector be RADICALLY transformed to capitalise on a very favourable market trend  which is dislocating the traditional value-add cocoa derivative markets and cocoa processing industry globally.

A leader in this area is the Caribbean Fine Cocoa Forum (www.caribbeanfinecocoaforum.org) which hosts Annual International Fine Cocoa Conferences & Expos in the region.

For Jamaica, the key challenge is how to increase productivity across the value chain - yields of individual cocoa trees, performance of cocoa fields in aggregate, output of dried fermented beans from processing facilities, value-add in follow-on products derived from locally grown beans.

And how to increase  income to growers of the beans - the small farmers who grow cocoa as well as other crops? Through eco-tourism and/or cocoa derivatives and/or environmental value

And how to manage the liberalisation of the local market for buying and selling cocoa without MAJOR domestic disruption to farmers growing cocoa (i.e. avoid CHAOS) which has occurred in some African countries previously

All this in the context of a global paradigm shift in cocoa at the end of its traditional value chain - eating chocolates etc.

   - Bulk Cocoa may be a commodity but Fine Cocoa is NOT (if it ever was)!!

   - The top end of the Chocolate market is segmenting and fragmenting

   -  New micro-processors technology is facilitating major changes in production methods and new products and distribution channels are opening up

   - Some Chocolate and other cocoa derivatives are not perceived as a luxury sweet anymore but   as a health food and even a super-food to some.

   - Large emerging new consumer markets in Far East and elsewhere

In conclusion, as we currently look at things in 2012, the future market for fine cocoa looks very promising globally.

However the challenge is how to drive and manage the quantum-leap change now required in the Caribbean countries - who will do it? how will it be executed? when will the actions be coordinated?

The Caribbean Fine Cocoa Forum (www.caribbeanfinecocoaforum.org) has conceptualised some interesting projects and initiatives in this area which it is currently implementing with local partners.

These include the R.E.C.R.E.A.T.E project in Jamaica, the Mayan House of Cacao & Chocolate Museum in Belize and the Cocoa POP project in Trinidad.

  

Transforming Caribbean Rural Economies (Vocational Training)

TRANSFORMING CARIBBEAN RURAL ECONOMIES THROUGH VOCATIONAL TRAINING

So the World Trade Organisation's ruling on trade and global competition resulted eventually in Caribbean islands, led by Jamaica, ceasing most of their shipped export of bananas to Europe in the early 21st Century. And what followed, in part, was the assigning of a portion of the EU aid budgets to such Caribbean islands to assist with the expected economic dislocation to small rural farmers and their communities. 

Some dislocation of the banana sector did occur and one of the projects that was developed to assist mitigating the effects was conceived by Vernon Barrett (Newer Worlds) on behalf of its client Human Employment And Resource Training Trust - National Training Agency (HEART-Trust NTA).

However, a few years on, the dislocation was not as negative as could have occurred and indeed what is now likely to happen (2012 onwards) is that the demand for bananas locally will grow to perhaps exceed what is was before exports to the EU from Jamaica ceased!!

Ironic, but not surprising because what happened was that in the private sector the large player there - Jamaica Producers (JP) - aggressively pursued a value-add development of the local banana sector. JP ventured into making bananas chips and other food processed derivatives for both the local and export market. Value-add from bananas and other locally grown crops. Perfectly sensible if you compare what happens in western diets with the simple potato being turned into chips and crisps and other such stuff which then sells at multiples of its original cost. Not sure how healthy it will be for the consumers but that is another matter for another article...
========================================================== 

But back to the Jamaican project - conceived and managed by Newer Worlds - entitled "Banana Sector Retraining Project" which ran during 2008 and 2009.

(See  http://en.wikipedia.org/wiki/Banana_Sector_Retraining_Project for more details)

HEART-NTA was, and is, a well respected VOCATIONAL institution in Jamaica established in the 1980's - initially to help train and educate workers employed in the growing tourism sector. However that was some time ago and it was interesting, in the conduct of the project, to see how that Institution had changed over the intervening years to 2008 - some 30 years.

On the positive side the HEART had a Project Division (led by Ms Liz Terry) which was receptive to doing this, its first EU funded, innovative project valued at about 330,000 euros. It delivery would expose some of the shortcomings of the institution but yet provide it with more market intelligence and identify needs and opportunity in field of vocational education and training. In the process of the project it serviced a long neglected constituent of the Jamaican society. Following the outcome of the project HEART appears to have taken onboard some of the learning points below and addressed some of its shortcomings.

 

Some of the key ORGANISATIONAL CHANGE issues are outlined below and for further information do contact Newer Worlds on info@newerworlds.com.

WHO IS REALLY THE INSTITUTION'S CUSTOMER?

At the time HEART seemed to be struggling with keeping itself focused on the needs of its primary beneficiaries - the trainees and students at its facilities. It was more interested it seemed with the EMPLOYERS of such people and these companies' needs. This was potentially conflicting, particularly when it came to people who were learning skills so they could be self-employed and as an Institution they needed to reconcile this post-project. Understandably because the employers and companies pay the HEART Institution most of its income (in the form of a Government administered tax) there was this divided loyalty which needed airing and resolution.

Resolution: HEART needed to carefully assess its role in inadvertently perpetuating the SOLE mind-set of "becoming an employee" to people seeking to earn a livelihood. People do have other options - self-employment or starting a business and CREATING employment. Self-employment is not for everyone but people should be able to be assessed for such a capacity and be encouraged to think along those lines as well. Other younger organisations in Jamaica were also servicing such potential and actual young entrepreneurs, so collaboration with them by HEART was also required going forward - for joined up thinking an provision of service nationally.

 

CAN WE ACCESS THE BENEFICIARY?

Although HEART does have physical facilities in many parts of Jamaica its reach is still not, unsurprisingly,  universal. In fact it is leaning more towards urban people - those in main (usually capital) towns in Jamaican parishes. So really rural people who are economically constrained still cannot, for the most part, afford to get to the venues where classes are held - in these towns. The cost of the taxi or bus fare alone and the time off earning a living is prohibitive to them.  In the project a stipend was allocated to beneficiaries to assist with these costs of attending training sessions.

Resolution: To deliver training in remote locations, HEART and others could perhaps invest in mobile units that can be used to serve as delivery platforms to travel to remote rural locations to deliver resource for training sessions - probably at physical venues such as church halls, 4H locations etc in collaboration with third parties who owned these assets.

 

WHICH COMES FIRST - VOCATIONAL TRAINING OR LITERACY?

There was another major constraint (self-)imposed by HEART in its ability to help people become skilled in a vocation. The prospective trainees had to attain a Level 9 in basic literacy (Maths and English) and UNTIL and UNLESS they did so they could not attend training in a vocational skill. This was so against the primacy of the need for such beneficiaries especially as they tended to be middle aged or older trying to earn a living.

What was the point - isn't it more important that someone can learn to do something with their hands and then earn a living than to exclude them from economic activity because they need to go back to basics....

Resolution: Provide methods of training delivery that are mainly visual and verbal and rely less on the reading of published material (audio-visual training followed by on-site witnessed visual & verbal assessment / inspection). At least this will fast track training possibilities, in the short term, to a wider range of needy semi-literate or illiterate beneficiaries.

 

WHAT IS THE NAME OF THE GAME ANYWAYS?

Finally the common-place politics of Institution building revealed itself - when it came to working with other organisations and institutions to assist beneficiaries. Some unnecessary barriers were being erected that were detrimental to these beneficiaries.

Institutions in the same country of Jamaica did not respect/acknowledge each other's beneficiary literacy assessment system at the expense of the beneficiary. This was SO WRONG.

Also you got the feeling sometimes that some local organisations were dangerously pre-occupied proceeding down a road to become a conventional type of UNIVERSITY - primarily for the prestige and egos of its administration - and not staying focused on the needs of the beneficiary. This happened in the UK where many POLYTECHNICS in that country thought they should become re-branded as Universities in the 1980-90's primarily because the association with teaching VOCATIONS had a stigma of inferiority associated with it.

Let us hope the same doesn't happen in Jamaica or elsewhere in the Caribbean. We need people who can do things that are valued by their society to profitably make a livelihood and earn an honest living.

Ignorance is not caused by an absence of literacy

============================================================ 

EPILOGUE

Since this change in banana exports from the Caribbean occurred, the significant increased frequency of inferior quality bananas on sale in British supermarket multiples, like Sainsbury's, has been noticeable. Many of the bananas now on sale look poor quality and are poor quality and get left unsold in singles - a great waste of food, money and resources in general.

So yes sure, the price of these bananas from Central and South America are cheaper (than previous Caribbean banana exports) but the quality is poorer and the customer is worse off in terms of choice.

The only salvation to get a good banana these days in the UK is to get "FAIRTRADE" ones - which probably cost as much as the previously exported Caribbean bananas!!

Otherwise go to the Caribbean and taste a REAL BANANA

In the meantime eat the banana chips on sale at the same multiples - Sainsbury's et al.

Renaissance of the Caribbean Fine Cocoa Sector

In recent months there has been significant activity, including foreign interest, in the local cocoa sector which at one stage in its illustrious history exported over 2,000 tonnes of fine cocoa per annum to the world, attracting the premium prices associated with fine-flavoured cocoa.
Although Jamaica is still categorised by UNCTAD as one of a few countries in the world exclusively producing such fine cocoa the volumes of cocoa produced have been in decline for several years – at well under 1,000 tonnes per annum.

Why this is the case - even though world cocoa prices have been very attractive for producers over the past decade - may be attributed to several well researched issues. Space does not permit us to detail these reasons here. However what is certain is that the need for change has been recognised by the Cocoa Industry Board (CIB) and now several actions are well underway to address these underlying issues. A key facilitator of the revitalisation change process by the CIB was the securing of approximately 600,000 euros of European funding (under the EUBSP programme) for a 2 year project to implement interventions in the Jamaican cocoa value-chain to address the main short-comings.

Vernon Barrett, an international business consultant, is an Associate on the EU project. He has studied the business model of the cocoa sector both in Jamaica and in Trinidad is keen to ensure that the cocoa sector’s issues are properly understood from a commercial perspective in order for the correct solutions be developed and pursued. He states “The truth is that each country’s cocoa sector operates in a unique manner with inherent strengths and weaknesses and so problems and shortcomings have to be resolved in the relevant local context”.
“There is a lot of cocoa technical and agricultural know-how being bandied around but little documentation exists about the commercial models that made cocoa a viable agricultural sector once in the 1950-70’s. However if one looks at the current state of the industry infrastructure, reads historical accounts and interviews people from those heydays, it becomes clear as to how and why we are where we are with such a weakened industry sector and what is needed to turn it around in the near term. Equally it becomes apparent that any hasty change to the current cocoa industry model – such as any proposed carte blanche rapid liberalization – will kill off the ‘sick patient’ status of this sector” he warns.

The Cocoa Sector in Jamaica was conceived as a centralised processing operation with a few large fermentaries (with dryers) positioned strategically across the island. Initially four in number there are now only 2 in operation and even these do not operate at anywhere near full capacity. Being centralised they offered good economies of scale, provided the cocoa yields and production levels were as required to maximise the utilisation factor demanded by such large investment in the electric drying equipment. More importantly perhaps the quality of the final dried cocoa beans, almost all exported, could be easily controlled and managed cost-effectively.
Although the value-add processes of fermenting and drying were centralised the supply of raw cocoa beans was distributed across thousands, even tens of thousands, of small farmers. There were only a few large farms growing cocoa – unlike say what pertained in the Trinidad Cocoa Sector and elsewhere in other countries. Furthermore, in order to manage this widely distributed cocoa sourcing, a well functioning network structure across the rural areas – community based and socially beneficial – was required.

Vernon explains “The commercial success of the cocoa industry model in Jamaica depended on an unwritten contract between the small farmers growing the cocoa and the Cocoa Industry Board that ran the fermentaries, and this reflected the inter-dependency between the two parties. The small cocoa farmers were needed by the Cocoa Board to provide raw wet cocoa in significant volumes in a timely manner at regular intervals in a good state for processing. In return the Cocoa Board would pay the farmers a fair price and support them in other ways where possible. The process of interaction between the two parties was facilitated by a substantial network of agents and extension-like workers. Somewhere along the line this social and commercial contract was broken and now we have to fix it, and fast”

The Cocoa Industry Board itself ran with no subsidy from the Jamaican Government over its lifetime. However it did not adequately re-invest any surpluses, such as it may have had, in the upkeep and modernisation of its plant and operations. Operational and processing inefficiencies set in and the cocoa farmer received less and less percentage of the end price every year which served as a strong disincentive to keep producing in subsequent years. Fewer farmers producing less cocoa and getting less pay for their crop created a downward spiral in the cocoa sector.

Vernon explains - “When one looks at the equipment in Richmond it’s like doing an archaeological dig. The size of the equipment there speaks to the once substantial scale on which cocoa was then grown and supplied (and no longer is). The equipment’s age speaks to it being from the 1950-60’s and highlights the absence of refurbishment over the years. Norman Washington Manley, then Chief Minister, was the leading figure who opened the Fermentary in St Mary in 1959”.
“In fact the visual trail symbolizes how agriculture in these quarters was not treated as a commercial business requiring the application of business principles and general upkeep to be sustainable over the longer period.” Vernon remarks.
Can investors, local or overseas, be attracted to offer an alternative model of operating in the cocoa industry by acquiring the Cocoa Board’s operations? Vernon doesn’t seem persuaded.
“The cocoa fermenting plant and drying equipment is very old and not of much commercial value” he explains. “An investor might as well start from scratch with buying new, perhaps smaller scale equipment. But even then they still need to have sufficient regular supply of cocoa beans and that would mean acquiring their own cocoa lands to grow it. The Trinidad experience shows that about 600-1,000 acres would be the scale required to export directly, privately. Are cocoa fields available for acquisition in such contiguous acreage? Would investors be willing to start planting new cocoa seedlings from scratch and wait the 3-4 years for adequate yields?”

“Alternatively such investors could try and develop a working relationship with current numerous small cocoa growers to supply them. Would they, as a private investor seeking to maximise their returns, give a small cocoa farmer a better price for cocoa beans supplied than a properly functioning Cocoa Board?” he queries. “And it’s not like processing coffee where the beans are just dried in the sun, cocoa beans require properly managed fermentation and then two-staged drying – it’s a process requiring careful skill, know-how and quality control management. Is it in anyone’s interest to have lots of smaller fermenting and drying operations on numerous farms scattered across the country? How would you quality control such a set-up to protect Jamaica’s status as a producer of fine flavoured quality cocoa attracting premium prices? Who would pay of it and who would implement it?

The whole benefit of Jamaica being recognised in the international cocoa market as a sole producer of premium fine cocoa would be endangered. Even the remotest chance of losing or contaminating this status would be disastrous to Jamaica’s cocoa industry. Our reputation for fine flavoured cocoa is paramount.

Bulk cocoa, as produced by Ghana, Brazil and Ivory Coast, is sold for a third to ½ the price of fine cocoa from the Caribbean. That bulk cocoa is of no use to us – we cannot compete with such volume producers on price. Like our Blue Mountain Coffee we need to compete in the world market on quality”.
“No what we should aspire for, certainly in the short term, is a modernised and efficiently functioning Cocoa Board working harmoniously, through an effective extension cocoa agent network, with the thousands of existing small cocoa farmers, giving them a good price for their premium quality product with Jamaica safeguarding its position as producer of one of the finest tasting cocoa in the world”.

Vernon adds “With the continued good growth in the cocoa market and excellent prices for fine cocoa, it is conceivable for a few large scale cocoa farmers to work alongside or within such a cocoa industry framework in Jamaica but wholesale rapid privatisation of the industry is not a feasible option in the short term”.

“One thing is for sure. The thousands of acres planted out in cocoa trees, on small lot holdings, over the past 20 to 50 years across Jamaica are still an important productive resource that cannot be replaced overnight. These trees are still bearing cocoa and many grow wild with the crop going to waste – eaten by rats or birds. We need to act NOW with what we have to implement a sector turnaround and the EU funded Cocoa Board project provides funds to effect the immediate interventions necessary to address these issues”.

The European funding will be used to rehabilitate cocoa fields in close proximity to the Richmond fermentary, train and educate small cocoa farmers, capacity-build the Cocoa Board, and make significant improvements to the cocoa yields with resultant higher prices to the small cocoa farmer. Under new leadership the Cocoa Industry Board is already being successfully transformed, even reformed, to help revitalise the cocoa sector for the benefit of the small farmer in the near term whilst longer term plans are being formulated for the industry.

In subsequent articles we will explore in greater detail the activities funded by this EU funded project - now in its fourth month - that will catalyse this long overdue transformation process in the Jamaican Cocoa Sector.

Vernon Barrett (April 2010 )

Election Time Again - Jamaica 2011

The Jamaican public goes to the polls in a couple of days time – December 29, 2011 to be exact.

The current Prime Minister of Jamaica is a young man named Mr Andrew Holness of the Jamaica Labour Party (JLP), not yet 40 years old. He became leader of his party, and therefore the Jamaican Prime Minister, a couple of months ago when the incumbent JLP leader – Mr Bruce Golding - stepped down due to “personal reasons”.
In exiting prematurely Mr Golding in effect anointed the “younger generation” to inherit the leadership role of the party and Mr Holness assumed this position unchallenged (wisely) by his colleagues in the ruling JLP party.

SUCCESSION & SUCCESSS IN JAMAICAN POLITICS
It seemed a familiar old story to Jamaica. Over 5 years ago a one Ms Portia Simpson Miller became Prime Minister of Jamaica in May 2006 through an unelected national process when Mr P J Patterson of the Peoples National Party stepped down after 14 years in power.
However unlike, Mr Patterson who himself was given the mantle of leadership by Mr Michael Manley (who retired due to ill health in 1992) and then went on to win the national elections (not once but 3 times) in 1993 (and subsequently in 1997 & 2002), Ms Portia Miller served 18 months, then called a national election which she lost in September 2007.

So Mr Holness was faced with a similar situation – should he go, more or less, straight to get a mandate from the Jamaican public or should he serve out the remaining 12 months of the JLP’s entitled term and then call the national elections? He chose to go to the polls, which as I write, is imminently upon the nation. Was it the right call for him? Time will tell!!
At the risk of stating things prematurely, the run-up to the elections in Jamaica this time has been markedly peaceful and it seems as though this year has been a turning point in the maturing of the country – at least politically. In hindsight a key milestone could have been the “taking out” of Dudus Coke by the Jamaican army in a gun battle with his supporters in Trench Town. Mr Coke was later captured and extradited to face criminal charges in the USA. Perhaps the other criminal gangs have been sent a message that no one is indispensible and we are at a period of reflection and stock taking on the “contract” between local power brokers – armed and unarmed. Or is Jamaica in the “lull before the storm” which would see the potential emergence of a new criminal order and political dimension?

Some say Mr Golding paid the ultimate political price for that action of confrontation in his own constituency with a leading “don” – although not without great hesitation and anguish on his part, it turned out to be “a selfless act for the greater national good”. National crime rates have been noticeably reduced in the subsequent months of 2011. It seems the USA did Jamaica a favour in forcing through this extradition action.

FUTURE PATHWAYS - THE OPTIONS
So whither goes Jamaica now? On the one hand the existing party came into power during the onset of a terrible global recession and has weathered the storm creditably. The ridiculous high interest rates offered on Government Bond schemes for decades, unsustainably reminiscent of a Ponzi scheme, were cut somewhat (and could do with some further trimming). Crime statistics came down as mentioned above and the national economy even grew. This is more than could be said for the previous administration which, while the world around Jamaica enjoyed a boom fuelled by low interest rates, low fuel costs and emerging Eastern economies (and now a bust), cocooned itself in a nest of economic stagnation for the most part – notwithstanding Highway 2000 and the Spanish Hotel investment programme.

Does the country need change for any particular reason and what will change bring? Change in such poorer developing countries, brought about by elections after a maximum of 5 years, seems very wasteful. It takes a year or 2 for the new Government to shape its initiatives (and put its people in place etc) and then as things start to get going again it is time for another election. (Mind you nothing as daft as the USA elections which are far too frequent and extravagant at 4 years apart).
More recently, as has happened in Trinidad & Tobago, the new Government upon assumption of power appear to set about digging for evidence of corruption and malpractice by its predecessors with which to “sling mud” at them. More time and expense spent on issues, which although important, should not be allowed to happen in the first place. Like a number of other areas of life, globally, it would seem that the structure and operation of electoral politics is antiquated and not fit for purpose. Like existing Education and Health systems, the Political System needs an overhaul - but what to do?

For now back to elections in Jamaica. The historical record shows that the Jamaican electorate usually give the party in power a couple of electoral terms (8-10 years) to prove itself and this is likely to happen again. The only exception to this in 50 years has been Mr P J Patterson who won three elections in a row but he has retired from politics, apparently.

Alas, only time will tell - may the team that is best for Jamaica win!!

RedJet - The New Caribbean Airline

The year 2011 marked the beginning of a new airline serving the Caribbean. In time of recession in the western economies it appears to be a brave move; yet in business some of the best commercial opportunities present themselves when the status quo of a sector is being radically challenged by adverse prevailing conditions.
RedJet is based out of Barbados and began with a simple route to Trinidad. It then rapidly expanded its operations, in the same year, to include the destinations of Jamaica (Kingston), Guyana, St Lucia and Antigua.
If RedJet is successful it will have done more to integrate the English speaking Caribbean region than any number of speeches and meetings by regional politicians or by numerous CARICOM treaties and communiques. We the regional citizens of the Caribbean should welcome it as it makes the fundamental issue of getting around the region affordable or at least injects some competition into the cost and ease of regional travel.

ROOM FOR TWO (or THREE)?
At present the jury is out as to whether RedJet will succeed. The initial appeal of the eye catching low fares publicised are soon tempered when the complexities of the airfare structure are revealed and all is added up. Yes it’s cheaper, but by how much and is it worth it? The travelling public will undergo an educational process to understand how this optimisation-of-income model can work for the airline and also for them. Yet the operations and principles of an INTERNET-based airline (as opposed to a low fare airline) is a tried and proven one and it is in EVERYONES' interests that RedJet succeeds!!

At present RedJet is taking on the incumbents in their own market, flying to same destination airports. Both Caribbean Airlines and LIAT have been restructured in recent years, with the former having just acquired Air Jamaica and suffering the symptoms of indigestion as it assimilates that airline with a TWO BRANDs, ONE AIRLINE marketing strategy.
Caribbean Airlines was in danger of becoming a complacent monopoly in serving the major islands of the Caribbean region. Service levels to its customers were not visibly improving post-merger and I have yet to witness any attempt to sincerely consult with its customer base in a marketing questionnaire survey, for example. The benefits of its frequent flyer programme are neither easily accessible nor user-friendly and its online services are still rather basic – although I note some attempts now to improve functionality directly to the end-users (perhaps in response to RedJet trail blazing campaign).
The window of opportunity for Caribbean Airlines to engage with the substantial, patriotic and highly mobile Jamaican Diaspora, who patronised Air Jamaica, is closing gradually with the passage of time. Previous destinations served by Air Jamaica from Jamaica to London, Atlanta, Washington, Chicago, etc. have not been re-instated. In response to RedJet’s competitive entry into its Caribbean regional market space Caribbean Airlines should revise and expedite this option. In spite of the USA economic downturn (and Canada is not in this USA boat) the North American travel market remains huge - both for Caribbean Diaspora and other North American citizens.
The merger of the Jamaican and Trinidadian cultures and mind-sets into the operations of one organisation will not be easy BUT it is a prerequisite if Caribbean Airlines is to succeed commercially – it has no choice and I wish it well.
LIAT, on the other hand, unfortunately, has less to fear for now as it principally links up the smaller islands of the Caribbean region. It operates, unchallenged, with a service level that leaves much to be desired. On a recent business trip around such islands I was treated by LIAT to a cancelled flight; a stranded plane; an engineer being flown out from Barbados out to fix the plane in St Lucia; a rigmarole of entry into Barbados procedure to go through SECURITY to re-board the same plane and nearly missing it 10 minutes later; angry people for whom LIAT had lost their luggage; and finally a revised routing of the plane to arrive hours later than scheduled. It would have made good script for a comedy movie if it didn’t so seriously mess up people’s plans, including my own.

RedJet – FUTURE VISION
This new entrant, RedJet, is in that stage of building critical mass to become sustainable as an airline operator. It is vital that it keeps its eyes and mind open to market opportunities that present themselves and respond accordingly. Although at first it may be taking on Caribbean Airlines head-to-head in some routes it needs to grow, both itself and the overall travel market, in a way that lead to a win-win scenario.
One of the premises of such airlines is that their low prices will stimulate the existing marketplace for new customer segment of travellers to emerge. These might be week-end shoppers or vacationers for the region, the overseas student who needs to get home more often, business people expanding to operate regionally, multiple destination tourists, and so on. We will soon see if the Caribbean is ready for this.
However RedJet should also seek to open up new non-competitive routes with third country destinations that are staring it in the face. Airport destinations in Spanish speaking countries in the Caribbean, Central America and even Mexico should be evaluated. Maybe even tourist dominated airports in these countries could serve as low cost entry points. (Montego Bay-to-Cancun anyone?) Personally I would like to see connections between Kingston and Mexico City re-established and a link from Montego Bay to Brazil started. These countries have cities with huge metropolitan populations and their economies are still alive and kicking. I am sure Spanish-owned hotels, like RUI in Jamaica, eagerly await such potential guests.
Furthermore, the un-served people who need to get around the Caribbean but who cannot (easily) get visas to transit USA (usually via MIA) are also another obvious new target group.
And finally RedJet should not forget AIR CARGO – it’s another valuable income stream for them and is crying out to be provided across the region by businesses and individuals.

And what of CARICOM/CARIFORUM?
At some point RedJet and Caribbean Airlines will have to accept each other’s long term presence. Then they will see the benefit of feeding travellers into each other’s routes and creating even more synergistic hubs and spokes air-route nodes to better serve the Caribbean traveller.
In the meantime these airlines should engage and lobby the Governments of the Caribbean region, individually and collectively, to ensure that through diplomatic negotiations Caribbean people have minimal hassle (for visa requirements etc.) to getting to visit third countries such as Mexico and others in Central & South America.
Such an action will facilitate the potential for developing substantial air traffic for the future and redound to everyone’s benefit.