Secretary for Finance and Enterprise Development in the Tobago House of Assembly (THA) Joel Jack has admitted that growth in Tobago’s private sector is not proceeding at the pace he had hoped.
He said although millions of dollars in grants and other facilities had been made available to stimulate new enterprise and sustainable jobs, the THA, the island’s largest employer, is no closer to reducing its wage bill.
Jack said the Division of Finance and Enterprise Development had some success in stimulating entrepreneurship in Tobago but faced fundamental challenges in the area of diversification.
Business surveys conducted by the division over the past two years show that the services sector is buoyant and contributes 90 per cent to the island’s growth domestic product (GDP). Data also made revealed, however, that the island is in urgent need of diversification.
“The diversification of the economy has been identified as one of the primary development objectives for the island in the Comprehensive Economic Development Plan for Tobago, but critical to the overall success of our diversification strategy are issues of innovation, productivity and entrepreneurship,” Jack said.
“The Assembly, being a significant player in the Tobago economy, has a critical role to play in creating the enabling environment to stimulate diversification of the island’s economy. In this regard, the Assembly must be supportive, adaptive, innovative and transparent to foster a conducive and enabling environment to improve and advance business activity.”
Jack said the THA is best positioned to create realistic economic development strategies grounded in the specific strengths of Tobago and to mobilise resources for implementation.
“This year, we are focused on the trifecta of innovation, productivity and entrepreneurship as it relates to the further diversification of the Tobago economy. Innovation is a widely recognised driver of economic growth. It is not just about high-tech products, but capacity inculcated early in the development process to facilitate the narrowing of the gap between where we are and where we hope to be,” he said.
The Finance Secretary said innovation will allow the THA to address issues and challenges specific to the island’s location in space and time, while avoiding the seduction of highly competitive sectors in which Tobago cannot gain a comparative advantage.
Jack said innovation is being considered for low technology sectors with high export opportunity such as agro-processing. He cited a 2012 report from the Organisation for Economic Co-operation and Development which said agricultural research and development had a greater impact on poverty reduction than most public investments initiatives.
“In my division, we established the Tobago Information Technology Limited (TITL) to spearhead innovation in the areas of information, communication and technology (ICT). At present, we are moving towards the establishment of an Innovation Centre at TITL to act as the focal point of this innovation,” he said.
“We provide support and training opportunities to entrepreneurs to improve the standard and the quality of their products. Moreover, the Eco-Industrial Development Company of Tobago (EIDCOT) is earnestly collaborating with the Division of Community Development and Culture and TITL towards the development of the animation industry in Tobago. The Assembly’s support for innovation is by no means limited to the work in the Division of Finance and Enterprise Development.”