The Most Valuable Christmas Tree

This Christmas the media has been full of the news of a Christmas tree at the Emirates Palace Hotel in Dubai that has been touted as the most expensive Christmas tree ever. It is a fake forty one foot Fir tree that is perfectly symmetrical, and has been decorated with gold and silver ornaments encrusted with sapphires, diamonds and other precious gems at an estimated cost of $11 million. One CNN announcer gushed that it was the most valuable Christmas tree ever.

By comparison our Christmas tree this year is a real tree that has a fresh smell of pine and was a gift from my daughter. It is a bushy little fellow about six feet high and a slight bend in the middle. Last Saturday our family and friends gathered to decorate the tree with an odd assortment of decorations and lights acquired over many decades including some that belonged to my parents, evoking memories of Christmases past and of my own childhood.

Each of us participated in stringing the lights and hanging a variety of ornaments from what could best be described as an eclectic collection. The grandchildren and nephews and nieces were all involved and placed ornaments and crackers on the tree while we spoke of Christmas and recounted the tale of Christ’s birth and what it meant to us all. No one thought of the cost of the ornaments as we enjoyed the occasion, and in truth I have no idea what we and others might have spent over the years to contribute to the collection of Christmas tree ornaments.

When all was done the children played games invented by themselves and without a toy in sight while the adults recounted family stories and shared the latest news. Fruit juice and fermented grape flowed and the delicacy of choice was clementines and tangerines with carrot and celery sticks with dip. One special moment was spent teaching the youngest to peel tangerines and to place the peel in a special container provided for the compost bin collection. A discussion then ensued about composting, recycling and caring for the environment.

The evening was all about Christmas and the meaning of Christmas and no presents were exchanged. That was to be for later for the evening was all about the Christmas tree and the true meaning of Christmas. The love and fellowship that was shared was the greatest gift of all.

I thought back to the CNN comment about the most valuable Christmas tree in the world in Dubai and thought, Dubai’s tree $11 million dollars, ours and countless others like ours around the globe, invaluable.

phillip.goddard@braggadax.com

The IDB and Alternative Energy

With the announcement of a $20 million dollar loan to assist Barbados lessen its dependence on fossil fuel through the creation of a “Smart Fund”. The fund is designed to accomplish two things, finance renewable energy technologies and promote energy efficient measures thus reducing carbon dioxide emissions as well as promoting “sustainable energy”. The expected savings that this project will generate over the next 15 years is $283 million dollars.

Welcome to test tube Barbados.

This loan is a triumph of political correctness over empirical evidence and mathematical certainty. While I fully support the objectives of efficient use of power, the chimera of alternative energy replacing high density fossil fuel generating capacity and the promise of reduced CO2 emissions has not been realized anywhere else in the world. This is not to say that there are not legitimate cost effective alternative energy solutions for special conditions of remoteness, but in a small island state with a relatively high per capita use of power the alternative energy solutions are low density requiring large areas of land for deployment. This we do not have.

Both wind and solar energy power generation are highly variable and must be supported by fossil fuel generating capacity to ensure continuity of supply. For example Denmark has deployed more wind turbine capacity per capita than any other nation but this has not reduced their reliance on fossil fuels nor has it resulted in a decrease in CO2 emissions. In addition, Denmark has one of the highest residential electricity rates in the world with a 2008 rate of 76 Barbados cents per kilowatt hour.

Wave energy is another possibility for Barbados. This is arguably a more consistent source of power generation than either solar or wind power. However we must be aware of not only the capital investment necessary but also the high operating cost in a high temperature saline environment that not only has a highly corrosive effect but also promotes the growth of moss and barnacles that must be periodically removed.

Where this project might yield the best results is in the area of energy efficiency and conservation. We have experienced sporadic bouts of activity in this area as the price of oil spikes and the cost of power skyrockets. Now is the time for us to develop a sustained culture of efficiency and conservation through prudent investment in energy efficient devices from computer to freezers.

Most recently we have seen a relatively slow, but significant, rise in the cost of oil despite the stagnation of the global economy. We must then expect a more robust burst of oil price when economic expansion continues. This means that we must focus our energies on alternative high density power generating solutions that will be cost effective and reduce CO2 emissions. In a $200 or $300 a barrel oil environment there would be a certain urgency to find a solution. That day is coming and we should not wait for it to arrive without developing an alternative power generating solution that would rescue us from the noose of oil around our necks. Experimentation with the frivolities of wind, solar and waves only postpones the decisions that we have to make.

phillip.goddard@braggadax.com

Climate Change and Resource Depletion

In charting our development path we must take an increasingly long view and allow for the reality of the twin threats of climate change and resource depletion. To do this we must understand the nature of climate change and its implications for our national security and our economic development. While we recognize the reality of climate change, the effects and causes are poorly understood thus making it difficult to implement policies that would mitigate the harmful effects and protect our people. In this, the wild exaggerations of alarmists on one side, and those that totally deny the observed reality of climate change on the other, are not helpful.

When it comes to resource depletion we should recognize the reality of finite resources of oil, gas, minerals and water. Coupled with their increasing scarcity and the increasing cost of exploration and extraction we are faced with escalating cost of energy and the basic requirement for life on this planet. In addition there is the very real danger of global conflict as huge populations come under increasing threat due to the absence of a safe water supply.

In short, not only will we have to learn to do more with less, but we will have to alter our land use policies to enhance food security and sustainable development of our coastal areas. This may well mean making some tough and unpopular decisions but avoiding them is not an option.

To date we have seen climate change as primarily a coastal zone management issue as the public perception of climate change is global warming and the rising sea levels. Climate change is about much more than rising sea levels and coral reefs. It is an infinitely more complex issue that the global scientific community is still trying to unravel. One scenario envisions the possibility of a mini ice age due to the possible collapse of the Gulf Stream and the removal of its warming effects upon Europe.

When we talk about glacier melt and the rising sea levels the public perception is that the sea will rise equally in all geographic locations, like bathtub water rising with the tap turned on. The reality is much different however as the oceans’ surface has proved to be a rather uneven one with the surface of the Indian Ocean being about 330 feet below the average sea level while the waters around Iceland are about 200 feet above the average. The simple message of rising ocean levels due to climate change has been massively over simplified and the true regional position must take into account winds and currents with gravity and the laws of thermodynamics playing an important role.

To better serve our policy makers in Barbados and the Caribbean region we need to establish a focused research body linked to the foremost climate change research centres around the globe to better understand the science of climate change and its impact upon the region. The public should be exposed to the latest thinking on the issue so that we can develop a regional or national consensus on the actions that we will have to take to mitigate the effects of climate change or to take advantage of opportunities that might present themselves.

A similar approach should be taken with the issue of resource depletion and management of our resources. We can no longer use energy and water like there is no tomorrow. That is not to say that we should reduce energy consumption in a way that will adversely impact our quality of life, but that we should use energy in a more intelligent way, investing in energy efficient equipment and maximizing its productivity.

With the right information there is much that we can do for ourselves to prepare for these 21^st Century challenges. We had better get on with the job.

phillip.goddard@braggadax.com

Giants of Caribbean Business

This week it was announced that Professor Ian Boxhill will assume the Grace Kennedy Foundation’s Carlton Alexander Chair in Management Studies at the University of the West Indies. This reminded me of a conversation that I recently had with friends who had attended The Lodge School with me many decades ago discussing the changing business culture and the single minded pursuit of enrichment that seemingly excluded all other considerations. “Where were the giants of the business community in our time of crisis”? we asked ourselves, and “where was the vision that would lead us forward in the storm tossed economic environment”?

We spoke of Carlton Alexander of Jamaica; Sydney Knox and Ken Gordon of Trinidad & Tobago and Victor Goddard of Barbados to mention a few, and wondered who it was today that had the business acumen, patriotism, high ethical standards and knowledge of the people of the region that these men exhibited in previous times of crisis.

It was my great privilege to have known and worked with Mr. Alexander in the early 1980’s in a joint venture between Grace Kennedy, Goddards and Marriott. Carlton was above all a patriot and had an abiding love for the people of Jamaica. In a decade of ruinous policies that savaged the Jamaican economy and impoverished the population, Carlton stood firm guiding his company through the dangerous shoals of economic and political perils. At a time when ten thousand managers and their families abandoned all hope and left their native shores for Canada, the United Kingdom and the United States, Carlton stood firm and was a steadying hand for both Grace Kennedy and the bruised and battered business community.

He believed in his fellow countrymen and fought to introduce a sense of economic reality at a time when Manley’s socialist dreams, increased statist policies and romantic international adventurism wrought havoc in Jamaica and brought poverty to all.

Carlton’s philosophy was mirrored across the Caribbean by his peers who saw the Caribbean as one market, understood the consumer and believed in giving value for money. They appreciated hard work and never asked anyone to do anything they would not do themselves. They believed in high ethical standards and greatly appreciated the loyalty of their employees and customers; something that they instinctively knew had to be earned rather than demanded. They all felt a need to give back to the community where they did business and did so in many ways that did not garner flashy news headlines and staged photographs. But the people knew and appreciated their involvement in their communities.

Major business decisions were never taken without consideration of the national interest and how it affected the country. These men may not have worn patriotism on their sleeves but it was always close to their hearts. They came together when private business was under threat in the last half of the previous century through global financial crisis and ruinous political experimentation. They provided leadership to the wider business community and contributed to economic growth and expansion as they participated in something that was bigger than themselves or their companies, the Caribbean Association of Industry and Commerce. 

Today we face even greater challenges and we asked “where are the business patriots of today?” are they forging solutions to our common regional problems or at we at sea in rafts of individuality each seeking his own path out of the morass in search of personal gain?

Today there are myriad problems facing our societies that should involve business leaders across the region. It is time for a reinvigorated CAIC to bring together our most prominent business leaders to address regional problems and to exert a measure of business leadership that seems to be absent from our landscape. Or have we lost a sense of common purpose?

phillip.goddard@braggadax.com