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WORLD NEWSFriday 15 January 2016

Trinidad faces downturn as energy prices collapse

DAVID McFADDEN for Competiveness.

Associated Press While it has exported oil

PORT-OF-SPAIN, Trinidad for over a century, Trini-

(AP) — During the good dad and Tobago, just 7

times, earnings from nat- miles (11 kilometers) off

ural gas and oil exports the coast of oil giant Ven-

made the tiny Caribbean ezuela, became a signifi-

nation of Trinidad and To- cant global energy player

bago one of the richest about 25 years ago when it

countries in the Western tapped big reserves of nat-

Hemisphere. The collapse ural gas. That helped res-

in world oil prices now has cue the country following

it facing the threat of a an oil bust in the 1980s that

punishing and prolonged touched off labor unrest,

downturn. contracted the economy

After two decades of near- by 35 percent, and forced

ly uninterrupted prosper- the government to seek

ity, the government is be- help from the International

ing forced to scale back Monetary Fund.

spending by 7 percent, si- Rowley, who took office in

phon some $1.5 billion from September, has warned

a stabilization fund over that the country will have

the next couple of years Band members perform with steel pan drums, Trinidad and Tobago’s national instrument, for pa- to go to the IMF again if
and warn its 1.3 million rishioners in a suburban church east of Port-of-Spain. For many years, officials have repeatedly it doesn’t make the right
people that they will have said that Trinidad’s economic base had to be broadened to provide protection from global en- adjustments now. Trinidad
to make do with less. ergy downturns. Yet little has been achieved. and Tobago has few local
“We must all appreciate industries so the economy
that the circumstances (AP Photo/David McFadden) is almost entirely depen-

we now face as a nation known for high spirits and of export revenue from the omists say this downturn will dent on foreign exchange.

require sacrifice and man- rollicking Carnival celebra- energy industry. In June have a serious bite here. “We need it for food, medi-

aged adjustment in our liv- tions, is so blessed that 2014, the price of Trinidad’s Last month, the Central cines, clothing, books and

ing standards,” Prime Minis- things will always turn out benchmark crude was Bank of Trinidad and Toba- education, cars, trucks

ter Keith Rowley cautioned well. But the specter of $106 per barrel and the go announced the country and tractors, and comput-

in a recent speech. tough economic times is government had drawn its was officially in recession, ers. We are very depen-

Those standards include starting to prompt a glum 2015 budget anticipating with no economic growth dent on foreign exchange

American-style shopping self-examination. $80 a barrel, but the price in 2015. to sustain our economy

malls, cheap electricity, “You can see it coming: has plummeted to near “The situation is very, very and our standard of living,”

subsidized gasoline and so Times will be getting hard. $30. Prices for liquid natural dire because of the ex- Rowley said.

many families with multiple Previous governments gas, Trinidad’s main export, tent to which we depend The government is call-

cars that highways weav- have spent too lavishly and have declined by some 45 on the oil and gas sector. ing on businesses to find

ing past abandoned cane now it’s time we have to percent. The government’s no lon- cheaper sources of im-

fields are often clogged pay the piper,” said Adri- The global price collapse ger going to have access ports and for consumers

with traffic jams in both di- an Lashley, a father of five has already inflicted seri- to the kind of resources it’s to buy whatever locally

rections. who runs a small clothing ous economic damage in been used to in order to produced goods they can

Things have been going so shop in downtown Port-of- oil-producing nations such maintain the country,” said find. Rowley said govern-

well for so many years that Spain, the capital. as Venezuela and Nigeria. economist Indera Sage- ment spending must be

locals repeat the mantra Trinidad gets roughly 45 With forecasts suggesting wan-Alli, executive director slashed as its expenditures

“God is a Trini,” meaning percent of its gross domes- that world prices won’t re- of the University of the West are roughly 35 percent of

the twin-island republic, tic product and 80 percent cover anytime soon, econ- Indies’ Caribbean Center gross domestic product.

For many years, officials

Puerto Rico invests $8M to boost education have repeatedly said that
Trinidad’s economic base
had to be broadened to
SAN JUAN, Puerto Rico (AP) Gov. Alejandro Garcia fund the program. Educa- ment comes as a worsening provide protection from
— Puerto Rico has invested Padilla said Thursday that tion officials have said the economic crisis has forced global energy down-
$8 million in an online edu- the program is available program aims to stimulate Puerto Rico to close dozens turns. Yet, little has been
cational program aimed at 24 hours a day and will be learning and crack down of public schools amid an achieved even as proven
boosting public school cur- offered at 700 schools. He on the island’s high level of increase in people migrat- natural gas reserves de-
riculums in the U.S. territory. said federal grants helped desertion. The announce- ing to the U.S. mainland. clined.