Page 10 - aruba-today-20220204

Friday 4 February 2022 locAl
A10

Making a diversified economy in the Caribbean flourish

by Cdr. Bud Slabbaert
Two simple questions right
of the bat. Does the coun-
try consume more than it
produces? Does the coun-
try import more than it ex-
ports? The answer to those
questions will show that
there is an imbalance. And
the third question that auto-
matically follows is: ‘where
do we go from here?’ There
is a just as simple answer
for that: ‘diversify the econ-
omy and the country will
flourish’.

That is where the dilemma
begins. Actually, the prob-
lem itself is not the diver-
sification. It is the many
opinions that try to shoot
so many holes in whatever
is suggested for diversifica-
tion, that even Swiss cheese
looks like a solid mass. And
yet, that is even the worst.
The worst is that no realistic
solutions are brought for-
ward in the first place and
if…, then there is no serious
follow-up.

For most of the Caribbean
territories, tourism is the ma- ‘authentic’ to give it extra produced items can be
jor source of revenue, up value? Can these locally used by the tourism and
to about 85%. Please par- produced items be ex- hospitality industry. It is just
don my French but any- ported. Authenticity could about creating additional

thing over 50% is insane. again give it more value business of a third kind and
Economic diversification and make it competitive create a balance of at
is the process of shifting when exported. By follow- least 50/50 as for where the
an economy away from a ing this path of increased revenue of the economy
single income source to- production, also employ- comes from.
ward multiple sources from ment could be boosted.
a growing range of sectors Now we’re talking business, Does it need academics
and markets. It is applied and this talking business and consultants that cost
as a strategy to encourage does not just give workers a lot of money and tak- tourism industry has its prov- it up. It needs fresh thinking
positive economic growth something to do, but also ing three months to come en vulnerabilities. Diversifi- by local bright people that
and development. people with more exten- up with a conclusion? No. cation creates opportuni- have common sense and
sive skills like managers, ad- There is no need for lengthy ties. Vulnerabilities require who start by making a list of
It doesn’t mean at all to ministrators and marketers. studies that use expressions the ability to counter and all items, be it products or
give up tourism. Don’t try that many don’t under- to withstand shocks which services, that are imported
to pull that one as a coun- Not all imports can be stand anyway and con- is called resilience. but can be produced lo-
terargument. Diversifica- eliminated and that is not tain long paragraphs with Diversification increases cally and then follow the
tion shall be a distinct art the purpose of this exer- chapters like ‘focusing on resilience. Diversification line of thinking as described
to unite while leaving all cise. However, it may cre- strategies to..’, ‘address- brings competitive advan- above. They can make a
differences intact. Adding ate what is called a ‘trade ing the achievement of..’, tages and allows to reduce diversified economy in the
lines of business that are balance’ between import ‘implementation of…’, ‘es- business risk. It does not only Caribbean flourish.
different from the current is and export. It will have the tablishment of…’, ‘foster- strengthen the local econ-
the development strategy monetary advantage that ing the development of…’, omy, but it also enhances About:
which in some cases may more money stays in the ‘instigating…’, etc. Balo- the community’s quality of Cdr. Bud Slabbaert is the
complement each other. country and can increase ney, it just takes some local life. It creates employment Chairman and Coordinator
the wealth of the popula- bright impartial minds in the and better paid jobs. It mo- of the Caribbean Aviation
Where does the logic all tion, not to forget that it community and maybe a tivates young people. Meetup, an annual results
start? Maybe by making a will benefit the government leader who can say: “I love and solution oriented con-
list of all items, be it prod- coffers. A healthy and flour- it when a plan comes to- So, what in the world does ference for stakeholders of
ucts or services that are ishing economy. gether!” it need to get started? Pro- ‘airlift’ in the Caribbean. Mr.
imported. Which of those tein bars? A strike of light- Slabbaert’s background
items could be produced Does it hurt tourism ac- To summarize it, this is about ning? A pressure cooker? is accentuated by avia-
locally? Could alternative tivities? No, it doesn’t, and eliminating a problem by When an economy is like tion business development,
products be produced lo- that wasn’t the purpose pinpointing exactly where an old battery, it needs strategic communication,
cally and be marketed as either. Some of the locally there’s an opportunity. The new generators to charge and journalism.q