Both governments and the private sector in the Caribbean need to raise their all-round ‘game’ in terms of significantly improving the environment within which businesses operate if what the region offers to the international market is to become more globally competitive, according to a senior Caribbean Development Bank (CDB) official. The CDB’s Director of Economics, Ian Durant, has expressed concern that while there is much evidence in the region of sound business ideas, particularly in the agro processing sector, business enterprises in the region have realized a smaller measure of success in offering goods at competitive prices which, simultaneously, fails to reach the quality standards demanded by international markets.
The CDB official is also concerned over fault lines in the ability of the region to consistently retain supply levels consistent with the extent of market demand. Clearing these hurdles, the CDB official asserts, is dependent on effecting improvements to the current operating environment in the respective territories in the region. Durant tags offering competitive prices, reaching quality standards, meeting quality thresholds for market access and maintaining a reliable supply to meet market demand are all dependent on improvements that can only be realized if more attention is paid to the current operating environment in which production takes place.
Durant has reportedly singled out such ‘laudable business ideas’ that are being generated in the region’s agro-processing sector, though, on the other hand, he points to limitations that include the inability of manufacturers in the region not only to offer their products at competitive prices but also to sustain supply levels that are consistent with market demand. Realizing these objectives, Durant says, depends on improvements to the current operating environment.
Durant, reportedly, singles out ideas being generated in the agro processing sector, a sector which is currently being led in the region by Guyana but where operating and quality standards limitations are evident in several privately run small and medium-sized agro-processing operations. A primary problem here has to do with small and medium-sized manufacturers’ inability to meet operating costs, particularly those associated with acquiring the equipment and operating spaces associated with high product quality, supply volumes and limited intra-country and intra-regional markets. High costs associated with production also come back to haunt local firms seeking not just to maintain supplies sufficient to meet market demand but also, in some instances, to sustain quality standards necessary to attract and sustain the interest of the external market.
Reportedly, in the course of a recent forum linked to a new IDB study on the private sector, Durant reportedly challenged regional governments to provide the facilitative legislative frameworks, supporting institutions and infrastructure to help realize the potential of creative entrepreneurs. The CDB official, meanwhile, is also quoted as saying that “sustained growth and improvements in standards of living regionally must be accompanied by high, diverse, prolonged export growth” and that such export growth must be diverse and requires that the “private sector operate in an ecosystem that promotes internationally competitive firms.”
While Guyana’s agro processing sector has gained some ground over the years, limitations are still to be found in areas such as high-quality facilities associated with the agro processing process, product presentation limitations – in some instances that hinder access to lucrative external markets and – again in some instances – affordability of equipment necessary to enhance product quality levels.
In the course of the aforementioned recent forum on the IDB study, Durant reportedly asserted that the process of supporting the agro processing sector could be enabled through legislation in Caribbean territories that help provide the “facilitative legislative frameworks, supporting institutions and infrastructure to help realize the potential of creative entrepreneurs.” The CDB official also reportedly asserted that high, diverse, prolonged export growth must be diverse and that this requires that the private sector “operate in an ecosystem that promotes internationally competitive firms.”
