BRIDGETOWN, Barbados, CMC:
FORMER BARBADOS High Commissioner Frank Da Silva says he is concerned that the manufacturing sector there will be seriously affected when the CARICOM Single Market and Economy (CSME) is established next year.
Da Silva is predicting that as Trinidad and Tobago assumes a more dominant role in the region's economy it will also increase its presence in the business sector here, resulting in a large number of job losses within the first three years of the CSME.
A highlight of the CSME will be the free movement of skilled labour, goods and services across the region.
"My concern is the vulnerability of Barbados in the special circumstances, as it relates to Trinidad's superior position in business," Da Silva told the Caribbean Media Corporation (CMC). "As you create a single economic space there's going to be an acceleration of manufacturers looking for locations where their productivity and cost of labour will generate the highest profit," he continued.
ADVANTAGE
Da Silva noted that Trinidad has an advantage over Barbados, as its cost of production is significantly lower, and that "Because of the smallness of Barbados those factories are concentrating on a local market and are so small that they're not going to get the benefits of economies of scale." He believes that while the Barbados government cannot avoid the job losses, it needs to implement programmes to redeploy people who are likely to be affected by the CSME.
The gravitation of skilled CARICOM nationals particularly from Trinidad to Barbados, poses yet another threat to the Barbados employment market, Da Silva said.
"These are corporate heads, or senior technicians who are controlling and managing at a top level, the increasing number of Barbadian businesses that are Trinidadian owned. And it means a negative impact on Barbadian top management to some extent."
The CSME is scheduled to be launched in 2005, but the former diplomat is concerned that Barbadians are not yet ready.
"We have to make sure that every man, woman and child understand the opportunities and challenges in the CSME, but I am concerned that the Barbadians are not yet ready and we need to a lot more education and sharing of information before we can get them ready," he said.
