We Cultcha or Our Culture?

As we approach another Crop Over season and the culture warriors take to the streets, the print media and the airwaves, it is perhaps time that we paused and reassessed what is meant by Barbadian culture and analyzing the trends of cultural development in this increasingly multicultural world. In so doing, we must take a wide view of the Bajan culture and all of its aspects that define our core values and who we are. 

The Bajan culture is continuously evolving and changes as a result of interaction with a complex range of factors such as external influences, expanded travel and improved economic circumstances. But there are some fundamental characteristics that we should cherish even as we adapt to living with an increased velocity of change in an ever more competitive world. Barbadians from all walks of life have been traditionally tolerant and respectful of their fellow citizens and visitors to our shores, Their culture of hospitality is deeply ingrained and has stood us in good stead. I sense however, an erosion of these values and a change in our cultural norms that endanger our quality of life and our ability to improve our standard of living.

As Crop Over approaches, we focus on music and dance and the party till you drop phenomena seemingly believing that this is all there is to culture. Along with the bacchanal of the carnival spirit of Crop Over there is a growing disregard for good manners and respect for others that seems to pervade our every day life the year round. A certain vulgarity has crept into both dance and music to the point that what would be best done in the bedroom is now on public display on the street or the open stage. Explicit vulgarity has replaced the subtle innuendo and double entendre that graced the folk music of yesteryear in a lyrical dumbing down to the lowest and basest common denominator.

It seems that the decline of use of the English language, limited vocabulary and the growing use of garbled utterances that pass for conversation today have impacted on the modern lyricist and limits their capacity for expression.

This growing indiscipline and blatant lack of consideration for others is now spilling over into everyday life where freedom is defined as being able to do anything at anytime without any regard for anyone else in the society. An example of this, is flying noise making kites with loud droning bulls in high density residential areas and tethering them so that they fly all day and all night. It is an unacceptable form of noise pollution that was recently defended on a call in program as being part of our culture. Kite flying is part and parcel of being a child in Barbados, creating loud incessant noise that disturbs hundreds of people is not.

Barbadian culture is much more complex and enduring than that. It speaks of Cricket and the old values of the game that promoted fair play, integrity and true sportsmanship; It speaks of our love for the rule of law and a sense of fairness in dealing with others. We appreciate good manners and respect the rights of others as we jealously guard our own. Ours is largely a civil society where charity is a way of life and we have all been our brother's keeper in one sense or another. 

That is the culture that we need to foster and nurture by resisting the rude, the vulgar and the selfishness that would destroy much that is good about Bajans.

Phillip.goddard@braggadax.com

Lessons from the RMS Titanic

It has been a hundred years since the RMS Titanic struck an iceberg and sank with the loss of 1,514 souls while on its maiden voyage crossing the Atlantic Ocean. The tragedy was one of the deadliest peacetime maritime disasters in history. Over the years inquiries have been held, books written and movies made about the sinking of the Titanic. To this day new evidence continues to emerge that sheds new light on the cascading series of events that contributed to design flaws, errors of judgment and failure of the British regulatory system.

In revisiting the sinking of the Titanic it is understandable that we get caught up in the human drama and suffering that resulted but of greater importance is the analysis of what went wrong that is crucial to placing corrective measures in place to avoid a repeat of such a catastrophe.

Beginning with the design of the ship and its imperfect watertight compartments to its inadequate provision for lifeboats and its speed there was more than enough blame to go around. The magnitude of the human drama coupled with sensationalism and fictionalized accounts as well as deliberate attempts to withhold key evidence has created an imperfect perspective of what went wrong with various observers apportioning blame in a way that would justify their own personal agendas.

Only now in the centenary year of the Titanic’s sinking are fresh details and new perspectives coming to light about the many factors that led to its plunge to the bottom of the ocean. Details that might well have contributed to an earlier improvement in planning, maritime safety and management systems. One striking example is the fact that though the lifeboat capacity was woefully inadequate for the passengers and crew of the 40,000 ton vessel, the ship was in compliance with the Board of Trade’s regulations for lifeboats on ships that were over 10,000 tons. The regulations were issued 20 years before the Titanic was built and had not been reviewed in the light of advances in shipbuilding technology.

We could learn a thing or two from the sinking of the Titanic in Barbados where the collapse of Clico is still shrouded in fog and the regulatory response has moved like molasses. Similarly there is a curious lack of investigation into the causes for the collapse of the Four Seasons venture and now the implosion of Almond Beach Resort.

Instead we are being served up with a serried of human interest stories that speak to the loss of jobs and a reduction of our capacity to serve the hospitality industry. It is time that we review these several events to determine if there were fundamental design flaws and problems with the business process implementation. We should query if the and the human resources employed to achieve the business goals were adequate as well as analyze the many factors that add cost to doing business in Barbados; and they are legion.

Unless we do this it is impossible to develop significant corrective action to improve the effectiveness of the business community in meeting demand and generating meaningful employment. Corporate welfare is not the answer and ignoring the economic icebergs may well imperil the ship of state.

phillip.goddard@braggadax.com

The Almond Beach Train Wreck

For months we have watched as the Almond Beach group imploded while its principle investors cut their losses and moved to divest themselves of the St. Lucia properties and the Casuarina Hotel while writing off millions of dollars in the process. Now the remaining flagship property of Almond Beach in St. Peter is facing closure at the end of this month as a result of staggering losses and a hotel plant that is long in the tooth and fit only for demolition instead of refurbishment.

Practically all of the commentary so far has been focused on keeping the hotel open and protecting the jobs of hundreds of Barbadians who work there as well as the loss of foreign exchange earnings that will result. It seems that all the commentary is designed to raise more capital to keep the business open and to pressure the government to act as the investor of last resort.

There has been little direct analysis of what caused the decline of the Almond Beach Group and the role that the fundamental business model played as well as the initial physical design of the hotel complex. Finally the management team is ultimately responsible for the cascading losses and the degradation of the physical plant.

To invest new capital without such an analysis would be rash in the extreme. To ask the workers to invest their savings and part of their income in a bid to keep the facility open is unrealistic beyond belief. Given the magnitude of the sums involved such suggestions speak to the fantasy land that some live in. They suspend the laws of economics and ignore the harsh reality of having to make a profit to stay in business.

The truth is that investors and business owners get into business to make a profit. Employees benefit from business activities through the wages that they earn and the benefits provided by the company. In turn the company pays taxes, reduces bank loans and sets aside a portion of profit earned to maintain the physical plant or to expand if the business climate is favourable. A lesser portion of the after tax profit is then paid out as dividends to the owners of the business.

If things get out of kilter in this complex equation the business suffers and without corrective action or a change in the business plan, failure is inevitable.

The hotel business is tremendously complex one and requires a well disciplined multi-skilled management team to succeed. There is some evidence to indicate that Almond’s management team lacked the fiscal discipline and attention to detail necessary to rise above the challenges of today’s difficult economic environment. A cost overrun on the refurbishment of the Casuarina property that exceeded the budget by nearly one hundred percent and ran a year late is a clear indication of the problem.

It is time that we realized that businesses are not welfare programmes that have an automatic call on the public purse when they fail. In the natural course of things some companies will succeed and others fail. Asking government to change that by just throwing tax payer money at the problem is not a solution but an exercise in folly.

Phillip.goddard@braggadax.com

Of Ships and Shuttles

Six hundred years ago China was unrivaled on the global stage, a dominant economic power with technological skills that were unmatched by India, the Ottoman Empire or any of the European powers. It was a medieval superpower who’s Yongle Emperor, Zhu Di determined to reinforce the preeminence of the Chinese Han after centuries of domination by the Mongols.

He launched a series of wars against Mongolia to consolidate his northern borders; Established Beijing as the capital of China; dredged and restored the Grand Canal from Beijing to Hangzhou; Commissioned the Yongle Cannon the largest encyclopedia of its time and ordered Admiral Zheng He to carry out a series of voyages of exploration with the Chinese Imperial Fleet.

Admiral Zheng He commanded an impressive armada of 317 ships carrying 27,000 men to establish diplomatic contacts and develop trade with nations in South East Asia, India, the Arabian Peninsula and Africa. Over 27 years in a series of seven voyages the Chinese Imperial Fleet reigned supreme over large areas of the South China Sea, the Indian Ocean and the Pacific. Some researchers believe that they entered the Atlantic Ocean and may have visited the Caribbean nearly a century before Columbus.

Abruptly, the maritime expeditions of Admiral Zheng He were brought to an end because of the cost of maintain the fleet. An imperial decree made it unlawful to construct ships with more than one mast and China began a period of introspection and inward focus resulting in a long period of decline. The age of exploration was over for China and the nations of Europe would command the oceans of the world in the centuries ahead. The Age of European exploration would lead to European dominance in economic and military matters.

A short 50 years ago President Kennedy challenged his nation to embark on another voyage of exploration, this time into space and the objective to put a man on the moon. Implied was an exploration of the solar system and beyond. In a few short years Americans walked on the surface of the moon and developed a constellation of satellites that circle the globe, providing a vast array of services.

Communications, global positioning and weather satellites are but a few that we all benefit from. They led in the construction of the International Space Station and developed the remarkable shuttle program that resupplied it and rotated the crews that manned the facility. America’s technological and human feats in the exploration of space have been unparalleled but now with the end of the shuttle program and with no clear replacement it seems that another imperial edict has abandoned the leadership in space exploration as America retreats from its unchallenged position. It seems as though it has turned away from taking man to the frontiers of space with an absence of vision for the future.

It is but another example of a lack of leadership that would maintain America’s role in the forefront of space exploration and technological innovation. It is a retreat from lofty goals of space exploration that benefit all mankind. Instead it is one more expression of Obama’s vision that America is not extraordinary or exceptional but is willing to pay the Russians double the price for delivering its astronauts to the International Space Station now that they have a de facto monopoly on the service.

Indeed it is ironic that it is the descendants of the Yongle Emperor have articulated a goal of establishing a colony on the moon during the third decade of this century.

phillip.goddard@braggadax.com

The Digital Revolution is Has Arrived

More Barbadians are beginning to recognize the benefits of information and communications technology in business, medicine, sports and the arts as they explore new ways to do things and new things to do. Unfortunately the use of new technology tools has been hampered by a reluctance to make fundamental structural changes that would require planned obsolescence of inefficient traditional business models.

This may all be about to change as consumers are buffeted with inflationary pressures, rising taxes and increased energy cost. The challenge to find non traditional methods of distribution that creates real saving for their customers will force existing businesses to reinvent themselves or face the prospect of crushing competition from new and agile business models that eliminate many of the intermediate steps in the supply chain that forms the links between producer and consumer.

We are now in that turbulent period of an era shift where technology is revolutionizing the way we do business, learn, socialize, play and govern ourselves. Productivity increases will be staggering as the cost of goods and services drop and their quality improves. In some ways we are already experiencing the benefits. Digital x-ray and MRI scans can be instantly available to physicians and dentists for more accurate and timely diagnosis or to be shared for consultation anywhere on the globe. New 3 dimensional technologies allow for greater accuracy in medical diagnosis and through earlier diagnosis, enhanced survivability from disease.

Soon 3 dimensional printing will provide instant access to automobile parts without the dealer having to invest in high levels of inventory. Tools can be ordered and supplied in a matter of days and a whole host of products will be downloaded and manufactured with 3D printers without having to pass through the port and attract the attention of customs. The many savings are obvious not the least of which will be the elimination of paperwork and needless delay.

At the same time there is a growing class of knowledge based entrepreneurs who are designing services and products for a global market. They are only limited by their imagination as time and distance have been almost eliminated from the distribution equation, while scalability can meet a rapid increase in demand.

Everything is not positive in this new world however, and technology does not change human nature nor eliminate criminality or hostile intent. The threat of cyber attack and denial of service is becoming ever more sophisticated. Not only do we have to contend with cyber criminals and identity theft, but increasingly there are many state sponsored players that bring massive resources to bear in the economic assault on business and government entities stealing business secrets, intellectual property and a wide range of other sensitive information.

Barbados has much to gain by embracing the digital world of trade and commerce and it should be in the vanguard of those nations that would condemn digital theft and piracy while working with allies, who respect the rule of law, to develop defenses for our national networks.

We should do everything that we can to foster a competitive environment that would encourage development of robust, secure ultra-wide bandwidth networks connected to homes and businesses. As we develop more and more content there will be an increasing need for symmetrical services where the upload and download bandwidth is equal.

While it’s getting cheaper, Technology is not cheap. It also requires the right blend of disciplines in many IT areas to deliver integrated business process solutions. Our small businesses and even small Government Departments in the Caribbean do not lend themselves well to certain types of deployments. Even our larger companies are small in the global context and struggle to make certain types of IT investment. Innovation in Cloud technology and opportunities for specialized consulting firms may help bridge this. 

Finally it is the willingness to reengineer business processes from the ground up and it is this human element that will determine success or failure.

Phillip.goddard@braggadax.com

Mark Time!

Mark time! For more than four years it seems as though this is the command that has guided the actions of government as we march while standing in place, going nowhere and having nothing to show for our efforts but a sadly diminished fatted calf. With 80% of the term of office gone, there is little to show for it except a huge fiscal deficit, a few highway round a bouts, and a bloated government structure hanging like a millstone around the necks of the taxpayers.

The drift that has become the most identifiable feature of this administration is now underscored by a series of studies to be launched at the 11^th hour and promises to enact legislation to address crop theft.

The most recent initiative is the establishment of an action team to focus on the economy, business and labour with 5 members each from government, business and the labour unions. Precisely what this team is supposed to achieve is not quite clear as they are tasked to address economic problems, business facilitation and the social safety net. Styled an action committee it is not clear what action they might take and the structural authority that the committee might have to take any action at all.

There is a deep suspicion that this exercise is more of a public relations effort aimed at quieting the growing disenchantment with rising prices, increased taxation and rising unemployment. Certainly there is nothing in the estimates that would indicate that the government has any intention of putting its fiscal house in order or stimulating the productive sectors of our economy.

The malaise affecting the telecommunications businesses and the slow deployment of broadband connectivity is a glaring example of the hiatus in policy initiatives for the past 4 years. Barbados was a leading destination in the Caribbean for robust broadband networks and an increasingly competitive communications environment. Local loop bundling and number portability were to be implemented. Nothing has happened.

Technology does not stand still and there is a increasing awareness that there is a growing need for wider bandwidth to attract the investment needed for the businesses of tomorrow. Barbados is eminently suited for the deployment of an ultra wide bandwidth network with fiber deployed to businesses and the home. It will take time to achieve this but if the goal is not stated we will never achieve it.

The benefits of such a network deployment are many. They range from more efficient business models that improve service and cut cost, to the delivery of learning programs that would enhance lifelong education and improve the quality and range of teaching tools.

 It would also open the world to employment opportunities for many Barbadians, and allow the best and the brightest of the Barbadian Diaspora to interact with their native land and contribute in a meaningful way to the economic and social development of Barbados.

Imagine the impact on our island if 20% of workers could work from home. Some jobs could be full time remote jobs while others may include a blend of in office and remote. But in total, consider a net 20% remote work on our fuel import bill from the reduction in transport, easing of congestion and an enhanced quality of life. The ability to work remotely will transform the nature of the labour pool. Barbadians will be able to access employment opportunities overseas and earn valuable foreign exchange.

The action committee should focus on the core national needs. World class communications is a critical foundation for our 21st century global economy. By setting clear targets for high speed network deployment and ensuring a fair competitive framework for investors we may once again lead in this field. In so doing, Barbadians will be positioned to accrue the benefits of a connected globe.

phillip.goddard@braggadax.com

Public Policy and Expediency

The need for predictability and for protecting reliance on settled rules is vital to promoting a vibrant investment climate, stimulating economic growth, and creation of a vibrant opportunity for employment. At the same time we must not become so rigid that we find ourselves so unreasonably shackled by precedent that we cannot respond effectively to crisis or new threats as they emerge.

The response to the existential threat of HIV/AIDS at the end of the last century is a case in point. With the growing awareness, that left unchecked, the HIV virus would wreak havoc on our society it was evident that a new multifaceted approach was necessary to combat this deadly disease. It was not just a health issue but an economic one as well, that challenged the structure of our society and had grave national security implications.  We had to devise new responses to check the spread of infection and decrease the mortality rate caused by this unparalleled assault on the immunity systems of those that were infected with the HIV virus.

New systems of free diagnosis, confidentiality and free treatment were implemented for all and a public information programme was launched to sensitize the public about sexually transmitted diseases with an emphasis on the HIV virus. The programme has evolved and continues to do so with some levels of success that is in large part due to dedicated medical staff who are involved in the diagnostic, counseling and treatment services to the Barbadian community.

Another seminal event in our recent history was the financial shock following the attack on the United States on September 11, 2001. Once again, the government of the day responded swiftly and decisively. Immediately taking the whole nation into its confidence, a national consultation was swiftly held to outline government’s immediate plans and to facilitate inputs from a broad cross section of the community to generate a response that would protect our key economic interests and prevent a collapse of the economy. It acted with dispatch and transparency to analyze the situation and develop solutions. 

Alas, these past few years, as we have endured the deepest global economic crisis in nearly a century, the government’s response has been to largely ignore the severe recession and to engage in series of bewildering responses to significant business failures that largely consisted of corporate cronyism and significant dollops of corporate welfare. The long delay in addressing the Clico affair with the collapse of CL Financial and the gaps in supervision of the company in subsequent months as well as the abnormally long delay in appointing a judicial manager are inexplicable. It speaks of gross incompetence or worse.

The failure of the Four Seasons venture has been another national nightmare with a slow bleeding of the public purse to sustain a questionable business model at massive expense. Now there are calls for government intervention in Almond Beach after years of mismanagement and neglect.

The public good would have been best be served by a quick response to protect the Clico customers and to allow failing companies to go bankrupt.

There is a growing unpredictability in policy formulation, and more importantly, its administration. It is increasingly driven by ad hoc political expediency and political patronage rather than by a consistent application of corporate law. This creates an environment that extends the business community’s envelope of risk to unsustainable levels and endangers our economic future.

phillip.goddard@braggadax.com

Think for Ourselves or Follow the Herd?

A constant source of amusement is the signage in our supermarkets indicating an aisle where we might find “Foreign Foods”. Are you kidding me?! The whole shop is full of foreign food. From the meat counter to the frozen food and ice cream to the pasta and rice and fresh produce. It’s mostly foreign food. Even some of the “local food” has significant components of foreign raw materials.

Our ability to copy wholesale the format of the layout of our supermarkets from North America or Europe is exemplified by the fact that the Foreign Food sections of our stores display Japanese, Thai, Chinese and Mexican spices, condiments and specialty items in exactly the same way that one would find them in Selfridges, Green Giant, A&P or Walmart; in the Foreign Food section and labeled as such when the whole store is a foreign food bazaar.

Perhaps this explains our mindless replication of energy policy and response to global warming as promulgated by the EU and to a lesser extent by the United States. Now that Global warming has been put under the microscope and found to be somewhat less than incontrovertible the cant has been shifted to climate change. The solutions for climate change, however, remain the same as they were for global warming and the hysteria accompanying the search for a holy grail of energy that is non-polluting, plentiful and cheap continues unabated among the anything but hydrocarbon crowd. Climate change what a wonderfully nebulous term that defies definition or measurement.  It can be applied equally to warming or cooling, flood or drought.

The hoopla that accompanied the screening of a film on climate change and the announcement that the UK government will be spending £75 million in the Caribbean over the next four years to address climate change issues was good headline press. As usual the devil will be in the details as EU consultants will be hired and EU products sourced to provide us with green energy solutions. At the same time, our Minister of the Environment announced a proposed investment of 377 million tax payer dollars in a green energy centre that would produce energy from wind, solar and landfill gas as well as a developing a waste to energy component. If this is such a good deal why is the private sector not lining up to invest in it?

All this at a time when one alternative energy company after another collapses in America. The failure rate is staggering despite support through massive federal grants and loans and billions of tax payer dollars have vanished. Germany recently announced that its decade’s long subsidization of alternative energy projects, primarily solar, has not had the intended result and will be significantly reduced. At the same time T. Boone Pickens who has lost millions in his well publicized wind energy projects now sees natural gas as the solution to America’s energy problems.

The Minister of the Environment now promises a National Climate Change Policy when we do not know what climate change is taking place. The global warming that everyone has been talking about has disappeared over the past 10 years and the rate of warming for the past 22 years has fallen far short of the predictions of the UN experts at the Intergovernmental Panel on Climate Change.

The reality is that fossil fuels will provide the bulk of the world’s energy needs for decades to come. The Barbadian geographic and economic profile demands a high density energy solution that is best delivered in today’s world by natural gas.

 T. Boone Pickens has finally got it right!

phillip.goddard@braggadax.com

Problem Solving in a Complex World

There is a great propensity for us to seek simple solutions to complex problems and to offer them up with a degree of certitude that hints of infallibility. Thus if we decrease carbon dioxide emissions we will mitigate the effects of climate change. If unemployment goes up criminal activity will increase and if we expand property ownership we will create a more responsible citizenry. Faced with the rising price of oil and the concomitant increased cost of electricity we need to invest in alternative energy.

Climate change is far from being understood, recent statistics do not support the mantra of the linkage of rising unemployment to rising crime; rapidly expanding property ownership has been a major factor in the global financial crisis; and no one can explain to me why it makes sense to invest in a more expensive, unreliable energy source to replace that one that I now have.

Each problem that we face is so complex with so many facets and variables, that it is difficult if not impossible to fully understand them. Consequently the very best we can do is to approach problem solving with a degree of humility that accepts a modicum of failure as a given, in the process of trial and error while recognizing the difficulty in solving complex issues with single solutions.

Unfortunately, many business and political leaders see this as a sign of weakness instead of a capacity for resilience and survivability. Similarly our culture is one that is most unforgiving of error or failure. The reality is that a successful business, be it a small shop or multinational enterprise, is in a constant state of evolution and change. Experimenting with new ideas, technologies and processes; keeping those that work and discarding the lead balloons. The secret to success is to facilitate a culture that allows for someone to try and fly those lead balloons in the first place.

The same is true of a country or region as we try to improve the quality and transparency of governance while enhancing the widest possible public participation. As we seek to grow our economy and enhance the quality of life for all, we must develop policies that allow, and indeed encourage, entrepreneurial experimentation. Legislation and regulations should be constantly under review with a view to adjusting to the rapidly changing real world environment and to correct the ill effects of unintended consequences.

All too often we come across Dickensian rules that are quaint in their absurdity, such as the stamp tax that requires a postage stamp to be affixed to receipts. Enacted in a day when all receipts were written in long hand, it is still in force though seldom observed  in an age where receipts are more frequently received in electronic format than on paper.

Another case in point is the proposed Antiquities Bill that is presently under review. In its present form it will complicate the lives of thousands of Barbadians from all walks of life, threatening to criminalize them for not registering personal belongings that are more than 50 years old and which they may well be unaware of.

The Bill is so draconian, all encompassing and sweeping in its powers that it will adversely affect a wide swath of the entire population. A better approach to the important issue of protecting our historical heritage would be an education and public relations program to have individuals voluntarily list antiques, while providing information on the best way to preserve them and highlighting best practices to develop community involvement in a Protect Barbadian Heritage programme.

By inviting many inputs and stimulating the public to take ownership of our heritage we would, through trial and error, arrive at a more harmonious and effective solution to the problem of preserving items of historical importance. One interesting event in the UK that served heighten the awareness of antiques owned by the general population was the popular TV series, Antiques Road Show. We can surely come up with some ideas of our own rather than subscribe to heavy handed punitive legislation that will be met with hostility. The Bill was an error, now it’s time for us to try something else.

  

phillip.goddard@braggadax.com

The Bright Side and the Real Side

It is usually a good strategy to emphasize positive things in any human endeavor to encourage the team to excel and to perform beyond expectations.   But there is a danger of going too far in this direction, and ignoring critical factors that are necessary for success.

If a retail shop focuses solely on gaining more customers without measuring the cost of increasing sales, there is a very real danger of achieving stellar sales results at the expense of profit and ultimately a failure of the business. Thus a sound approach to increased sales and profit is to monitor gross profit and expenses while at the same time doing those things that encourage more people to patronize the establishment by delivering greater value for money to a well targeted customer base.

The cost of attracting new customers is a costly business, that requires expense in advertising; staff training; upgrading facilities; or in special discounts. Thus it is a sound practice to do everything possible to exceed expectations of existing customers to enhance the likelihood of repeat business and improved profitability. Above all, it is important to keep track of all aspects of the business and take a balanced view of the many success factors as well as the negative issues that need to be addressed.

This past week there were two items in the press that once again focused on the increase in arrivals of both long stay visitors and cruise ship passengers. The good news was that there were increases all around. In the subtext however, there was a strong indication that the arrivals did not translate into increased business. This is a disquieting trend that has continued for far too long and it indicates that we do not have our eye on the ball when it comes to the hospitality industry.

Policy makers and the BTA have been focused on arrival numbers and ignoring the receipts. There are continuing reports about seeking new business from non-traditional areas and developing the Chinese market while admitting that Beijing is a bit far. That’s the understatement of the year. The airlines would have to develop an in-flight refueling capacity to make the Beijing Bridgetown hop.

It is time thet we started measuring the profitability of our hospitality industry and focus on those things that add value to the visitor experience. We should use new technologies available to us in developing up market additional business from our traditional markets. By capitalizing on the positive experiences of generations of visitors we can develop word of mouth advertising.

It is time to focus on what works and the successes that we have had even in these difficult economic times, and there are some. The industry needs hard headed pragmatic individuals who have a clear perspective of the future of the industry and the direction that it must take. We need to start measuring the things that count and focus on the contribution that is made to our economy.

The steady decline in hospitality industry revenue, at many levels, indicates a policy failure of significant proportions. It is time to abandon the bottom feeding strategy to increase the numbers of visitors and to focus on high value customers and service excellence. It’s more work, but it’s worth it.

phillip.goddard@braggadax.com

The Pemberton Venture at Fresh water Bay

Fresh Water Bay, a place that was renamed Paradise Beach by Cunard Lines and mothballed by Sandals, is now referred to as the Four Seasons project by all and sundry. A private company, Cinnamon 88 purchased the property from Sandals and launched an ambitious and highly leveraged hotel and villa development complex that ran into financial difficulties and suspended construction activities three years ago.

The Four Seasons project as it has been dubbed has now become one of the most controversial of projects. It is a venture that seems to be as firmly impaled upon the shoals of a financial reef as is the Concordia on the isle of Giglio.

What started as a privately funded venture for profit by the promoters, Mike Pemberton and Robin Paterson, collapsed and eventually morphed into a project controlled by the Barbados government under circumstances that are not clear to this day. After three years, there is a growing perception that the venture has become a quagmire that is a growing financial drain on the government that it can ill afford.

First the government guaranteed a loan of BDS 120 million that was supposed to restart construction and put the project back on track. This proved to be insufficient to even meet the outstanding payables of the venture and after the money was disbursed to partially satisfy the claims of contractors and suppliers, in a remarkable display of corporate welfare, the venture remained in limbo.

Needless to say the initial investors who had paid up to 40% deposit on their multimillion dollar homes became seriously agitated and began to threaten legal action to recover their money. The lead promoter for the reconfigured project, Mr. Avinash Persaud, denied that there was any legal action being taken but persistent reports in the Irish and British newspapers contradict this.

Last year, in a last ditch maneuver, the Barbados National Insurance Board was asked to invest BDS 60 million in the project to put the project back on track and to buttress the argument for support from the Inter American Development Bank in the form of a BDS 180 million loan. The initial response from the NIS investment committee was that the investment carried too high a risk for its pension fund and declined the invitation to participate in the venture.

Subsequently, under pressure from the government, there are reports that the investment committee has reconsidered the risk and that the NIS Board will meet next week to reconsider their position on the matter. In the mean time in an astonishing display of clairvoyance, the Minister of Finance has announced that the NIS Board has agreed to the loan.

One wonders what has changed in the past few weeks to alter the risk factors for the NIS. Certainly it cannot be the claims piling up in the Supreme Court, the most recent of which is the one lodged by Mr. Aidan Heavey. Nor can it be the investment climate in Europe as the Euro Zone grapples with the continuing Greek crisis and the financial problems of Italy, Spain and Portugal.

One would have thought that after the Clico experience, we would have learnt the lesson that pension funds should not be used as venture capital.

The public of Barbados are being treated to a display of murkiness and obfuscation in this whole debacle. Mr. Persaud has sought to indicate that criticism of the financing of the project with public funds is purely political but there are legions of professional and business people who think that this is a disaster in the making.

The National Insurance Board has an obligation to the workers that contribute to the NIS pension fund to invest the contributions in stable and reliable investments. The criteria for this are well established. They should stay within the long established parameters of prudence and be prepared to resign rather than acquiesce to political pressure to do otherwise.

phillip.goddard@braggadax.com

Horse Hill on the Move

Over the past year it has become increasingly evident to the most casual observer that something was seriously amiss on Horse Hill. In recent years the parish church of St. Joseph showed evidence of shifting foundations as widening cracks appeared in the walls. The rate of deterioration accelerated this past year to the point that the building was deemed to be unsafe and engineers were called in to determine whether remedial action was feasible or if the building would have to be demolished. The church is now closed.


More alarmingly, it became obvious that the major artery to Bathsheba and Cattlewash was slipping. Subsidence and lateral movement opened up significant cracks in the road surface while houses to the east of the church developed major cracks in the walls and stairways separated from buildings indicating a major and accelerating slippage of a large area of land.
In recent weeks the cracks and level variations have been addressed by resurfacing the road but within days the road surface has once again been distorted by what is evidently a major instability problem.


This is not the only area of the Scotland District that is affected by disruptive land slippage but it is probably the most serious for the people that live in this area and the businesses that rely on good road communications.

This situation is reminiscent of the phenomenal deterioration of the highway that transited Bath Plantation and the great quantity of work that had to be done to stabilize the land and repair the road in the 1990’s. Decades of neglect magnified the problem and added to the cost of remediation.


Learning from this experience, and realizing that the soil conservation unit needed a new remit and additional resources a major study was undertaken to address the preservation and development of the land stretching from Pico Tenerife in the north to Conset Bay in the south. The study involved local and international experts and resulted in the development of a a comprehensive long term strategic development plan for the area that addressed land management and diversified economic development.


The result was the establishment of the Scotland District Authority in 2007 to implement a detailed and complex strategic plan that involved government and private land owners. In the first instance, funding for the first 5 year period was established at 40 million dollars.
When the present government came to office they defunded the Authority. Since then their actions have been relegated to fire fighting one calamity after another as roads slip away and bridges collapse. One seventh of the land mass of Barbados has been virtually ignored and we have regressed instead of moving forward with developing economic activities and carrying out critical land stabilization programmes.


As usual the actions of government are a patchwork quilt of responses shaped after the fact by external events rather than part of a strategic process that seeks to shape our own development goals. One can only hope that the neglect in the area of Horse Hill will not lead to a catastrophic failure of the road system and the destruction of homes that would make the Joe’s River debacle look like a Sunday school picnic.

phillip.goddard@braggadax.com

Sugar Redux

Once again I return to the problems faced by the sugar industry and the seemingly deliberate policy of government to strangle the independent growers while writing open cheques for the BAMC and the sugar factory operations. Last year, I asked why we were operating two sugar factories when Andrews Factory was fully capable of processing all of the sugar cane that was harvested last year. Closing Portvale Factory would produce a saving of between ten to fifteen million dollars per year that would flow from concentrating processing in a single location at Andrews and restructuring administrative functions. It would also bring to an end that long cherished pipedream of the Ministry of agriculture – a new 200 million dollar factory that we can ill afford.

When the question was posed last year about consolidating the sugar refining operations at Andrews Factory it was met with a deafening silence. This year, with increased economic constraints and a further decline in sugar cane production a solution becomes all the more urgent.

To arrest the accelerating decline in sugar cane cultivation we should create a level playing field of subsidy for all growers on the island with a view to improving efficiency of the field operations. Under the present arrangement there is a glaring inequity between what government spends on the BADMC plantation production and the price paid to private plantation operators for sugar cane. If this continues one can only draw the conclusion that the government is deliberately driving the private plantation owners into unsustainable losses that can only be corrected by discontinuing sugar cane cultivation. In this way when the sugar industry collapses the government will have someone to blame other than themselves.


Barbadians deserve better than this from those entrusted with guiding our development, diversifying our economy and protecting our environment. The value of sugar cane cultivation has been extensively documented and debated in our society. It is more than the production of sugar and rum. It plays a part in crop rotation and diversified agriculture as well as contributing to the esthetic value that enhances our hospitality industry.

It is time that we took some hard headed economic decisions that focused on dealing equitably with all those involved in the cultivation of sugar cane and it’s processing, while providing incentives for improved productivity every step of the way.

Today the private sugar cane farmers are paid less than 50 dollars a ton while production cost for the most efficient growers is 100 dollars a ton. By contrast analysis of the latest BAMC annual report and the Government’s Estimates of Expenditure, indicates that it costs the BAMC 200 dollars a ton to grow sugar cane. This rising disparity cannot continue, but there seems to be no effort to rein in the expenses and improve efficiency of the BAMC operations.

The result of all this is that private growers are losing at least 50 dollars a ton on what they grow and harvest while the BAMC’s full cost is picked up by the tax payer which is the same as paying the BAMC 200 dollars a ton for sugar cane. It would be far better if the BAMC and the private growers were paid the same support price of approximately 130 dollars a ton to encourage expanded private production and more efficient BAMC operations.

Without decisive and urgent action the collapse of the sugar industry is inevitable as we plummet below the critical mass of a 25 thousand ton sugar production capacity. It would be useful to know if the government has a plan for the twenty thousand acres that will become available. Thus far it seems to be a choice between growing wild tamarind like the Kingsland estates, or houses on the most fertile and productive lands of Clico in St. John.

That’s not an agricultural policy! It’s a disaster!!

phillip.goddard@braggadax.com

Environmental Fig Leaf to Pluck the Goose

For tens of thousands of years man’s sole method of travel was walking. Next he harnessed the power of the horse, camel and elephant to assist him in travelling with greater speed and distance while at the same time transporting additional weight of goods. Travel by water was achieved from the time of the Sumerians and though the size and stability of vessels improved their maximum speed did not exceed 15 knots on a good day.

For most of the last two millennia travel was limited to the nobility or the very wealthy. By today’s standards it was slow, uncomfortable and highly dangerous. Speed was limited to the pace of a horse or sailing vessels.

With the advent of the steam engine and later the internal combustion engine things began to change. First steam engines were added to existing wooden hulls fitted with sails in a hybrid attempt to get the best of both systems. Steel hulls then evolved with speeds of 20 knots or more. Navigation systems improved and the development of wireless contributed to safety and convenience.

Finally the Wright brothers broke the bonds of gravity with an heavier than air contraption powered by an internal combustion engine. The era of aviation was born. Each succeeding year saw new designs as man experimented with bi-planes, tri-planes and monoplanes, employing a variety of materials to improve the performance by limiting the weight of the airframe while developing ever more powerful engines and efficient propeller systems.

As aircraft speeds increased and ever higher altitudes were attained man encountered the challenges of low oxygen, ice forming on the wings and in the engine carburetors. Each step of the way was a learning process as aviators ventured into the unknown.

Trans-continental travel by air became a reality in the 1930’s with hardy pioneers flying a variety of flying boats. After the war air travel expanded rapidly using surplus airframes converted to civilian use and with a new generation of piston engine aircraft. But travel was still expensive and not for everyone.

True mass travel was finally achieved with the launching of the new jet aircraft in the 1960’s. Once again the ingenuity of man was tested, overcoming metallurgical problems and a whole host of other safety of flight issues. Periodic aircraft design improvements increased fuel efficiency and safety. Huge investments were made in developing successive generations of jet engines that improved reliability and fuel efficiency. Every effort was made to cut cost and improve safety, steadily bringing the cost of air travel down.

The general public has been the beneficiary of this remarkable investment in aviation by producing ever greater affordability and providing international travel to more people with each successive generation. More people than ever before can travel the globe with the utmost safety.

Now, with a stroke of the pen, politicians in Europe and the United Kingdom have reversed the trend.

Using the fig leaf of the new Gods of the Environment as cover, they have imposed a crushing revenue generating burden on the travelling public that places a punitive cost on international travel, a tax that is likely to follow the pattern of VAT by escalating over time. It’s all about revenue and nothing about CO2. The crazy logic that says that Hawaii is closer to London than Barbados underscores the point.

Political expediency has reversed the trend of ever more affordable travel produced by the ingenuity, sacrifice and dedication of generations who have contributed so much to the development of affordable civil aviation.

phillip.goddard@braggadax.com

The Scourge of Religious Fundamentalism

The explosion of violence against Christians in Egypt and Nigeria over the past several weeks, demonstrate a vicious intolerance by Islamic fundamentalists that pits them against not only Christians, but against all other faiths. Their willingness to slaughter men, women and children in their houses of worship and in their homes should be loudly condemned by the global community including Muslims who believe in a tolerant coexistence with those in multi-cultural societies. 

Religious intolerance has no place in today’s modern world and can lead to armed conflicts of incalculable proportions, embroiling us all in unintended consequences that disrupt our economies, create havoc with global trade and destroy the tranquility that we so cherish.

Militant Islamic fundamentalists have no monopoly on religious intolerance. As the world’s religions move toward an ecumenical relationship between each other and among the various sects within Christianity, society continues to be plagued with the obdurate hatred generated by the fundamentalist adherents of the Jewish, Christian and Islamic faiths. The common thread that binds the religious fundamentalist is their rejection of modernity and the dehumanization of non-believers.

In today’s tightly woven interdependent world, we cannot ignore the threat that religious fundamentalists play in destabilizing countries and regions through militant and exclusionary actions that would drive out non-believers from their midst or massacre them.

Many in Barbados might say this is no concern of ours for we live tolerably well with one another and there is little sign of militancy in a country where ecumenical inter-faith services have become the norm. Unfortunately, open warfare and terrorism far from our shores can disrupt oil supplies from Nigeria or through the Straits of Hormuz and double the price of oil in a flash. The resultant economic chaos of rising commodity prices and dwindling trade would savagely impact on our quality of life and social stability.

So in a very real sense the plight of the Israeli women in Beit Shemesh, Shia pilgrims of Iraq, Coptic Christians of Egypt and the Nigerian Christians are a very real concern to us all and we should join in the wider community of free modern societies in condemning the excesses of religious intolerance where ever it may raise its ugly head.

Over the years Barbados and other countries of Caricom have strengthened their stance against terrorism through improving security standards and enacting legislation that, among other things, is aimed at cutting off the flow of funds to terrorist organizations. We have done so to protect our people and those that visit our shores. What is now necessary is for us to voice our objections in the strongest terms to condemn the actions of those that persecute and kill both Christian minorities and Muslim sects in the Islamic World and in the countries of Africa where regions have a significant Islamic majority.

By our silence we send the signal that we are intimidated, disinterested or that it is none of our business. It is our business, and we should be bold enough to openly stand up to this tyranny of our times.

Phillip.goddard@braggadax.com  

Christmas Gifts that Keep on Giving

This year as we celebrate Christmas, it would be refreshing if we could focus on the Christmas message of peace, tolerance and love that the Christ child brought to us more than two thousand years ago. It is a time to think of those less fortunate than ourselves and make a commitment to help them not just at this season of cheer but throughout the coming year.

I believe that we should focus on the gifts that keep on giving such as a commitment to help the aged and infirm one day each week or to engage in voluntary community service. The gift of learning for people of all ages is a particularly valuable gift that lasts forever. To my mind, it is also a time to teach the younger generation more about the joy of giving than receiving. It seems that this is a lesson that is learnt all too late in life, and sadly, one that far too many never learn at all.

There is nothing like the magic of Christmas and the wonderment and joy that it brings to so many children around the globe. Despite the extreme commercialization of the season children often teach us that it is the simplest of gifts that mean the most because of the spirit in which it is given and the special love that bonds those that give and receive.

Most importantly it is a time for family and friends to come together, sharing friendship, good cheer and fond memories of Christmases past. In so doing we might well benefit from extending the spirit of Christmas and the good fellowship of man well beyond the Christmas season by strengthening community self reliance and releasing many from the culture of mendicancy.

The gifts that keep on giving are the most valuable of all. Knowledge, self respect, community involvement and a sense of achievement are worth more than material things and far more enduring.

I wish my readers a very Merry and Blessed Christmas and thank all those who serve and protect the community that we are so privileged to live in. I also extend a special thanks to all those service organizations who generously give to the needy and ill, not only at this time, but all the year round.

Finally as we sit down to our Christmas luncheons or dinners I raise a toast to the absent ones, Merry Christmas to all and be of good cheer.

phillip.goddard@braggadax.com