June 2014 – Page 3 – Go Lean…Caribbean

Month: June 2014

The Art & Science of Temporary Stadiums – No White Elephants

Posted on June 5, 2014 in Industries, Planning

Go Lean Commentary

Learn from Greece – Why build expensive permanent stadiums for temporary (sports/cultural) events, when there is such an effective art and science with temporary stadiums?! This important lesson was ignored in Brazil for the FIFA World Cup 2014.

The book Go Lean…Caribbean, serving as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), advocates this lesson and declares that “a mission of the CU is to forge industries and economic drivers around the individual and group activities of sports and culture”. There is the need for temporary stadiums for events and festivals; (see Temporary Structures Models & Systems Appendix below).

This temporary stadium was erected in Germany for the 2006 FIFA World Cup championship game.

The need to optimize sports/cultural events & festivals have previously been addressed in the following Go Lean blogs entries:

a.	https://goleancaribbean.com/blog/?p=1148	Sports Bubble – Franchise values in basketball
b.	https://goleancaribbean.com/blog/?p=1020	Sports Revolutionary: Advocate Jeffrey Webb
c.	https://goleancaribbean.com/blog/?p=676	PM Christie responds to critics of Bahamian ‘Carnival’
d.	https://goleancaribbean.com/blog/?p=498	Book Review: ‘The Sports Gene’
e.	https://goleancaribbean.com/blog/?p=334	Bahamians Make Presence Felt In Libyan League
f.	https://goleancaribbean.com/blog/?p=318	Collegiate Sports in the Caribbean
g.	https://goleancaribbean.com/blog/?p=60	Could the Caribbean Host the Olympic Games?

All in all, the book and accompanying blogs declare that the region needs to learn lessons from other sporting venues like Athens-Greece, South Africa and Brazil. The people of the Caribbean cannot afford such monumental mis-steps – see VIDEO below. So this Go Lean… Caribbean roadmap applies the lessons learned and details the following 3 prime directives:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

This roadmap commences with the recognition that genius qualifiers can be found in many fields of endeavor, including music, sports and the performing arts. To exploit the economic benefits of these fields require some facilitation, like stadia, arenas and theaters. The roadmap pronounces the need for the region to confederate in order to invest in the facilitations for the Caribbean genius to soar. These pronouncements are made in the Declaration of Interdependence, (Pages 13 & 14) as follows:

xxi. Whereas the preparation of our labor force can foster opportunities and dictate economic progress for current and future generations, the Federation must ensure that educational and job training opportunities are fully optimized for all residents of all member-states, with no partiality towards any gender or ethnic group. The Federation must recognize and facilitate excellence in many different fields of endeavor, including sciences, languages, arts, music and sports. This responsibility should be executed without incurring the risks of further human flight, as has been the past history.

xxii. Whereas sports have been a source of great pride for the Caribbean region, the economic returns from these ventures have not been evenly distributed as in other societies. The Federation must therefore facilitate the eco-systems and vertical industries of sports as a business, recreation, national pastime and even sports tourism – modeling the Olympics.

The Go Lean vision is a confederation of the 30 member-states of the Caribbean forming a proxy organization to do the heavy- lighting of building, funding and maintaining sports/event venues. The strategy is to deploy temporary structures where appropriate on CU fairgrounds, as some events may require specific configurations, but only for a few days every year. Tactically, the Go Lean roadmap calls for a separation-of-powers between the member-state governments and the new federal agencies; so the CU will serve as the landlord for local, national and regional events.

The subsequent article and VIDEO (from the cable channel HBO’s documentary Real Sports) describes the folly for expensive permanent stadiums for short-term events; especially while the art and science of temporary stadiums is so effective.

Title: HBO’s Real Sports tackles the white elephants of the World Cup and Olympics
Posted by Joe Lucia on May 20, 2014 10:31
(http://awfulannouncing.com/2014/hbos-real-sports-tackles-the-white-elephants-of-the-world-cup-and-olympics.html)

The lead story of May’s episode of Real Sports on HBO tackles the World Cup, but in a different way …

Next month’s World Cup in Brazil (starting June 12, 2014) has resulted in numerous brand new soccer stadiums being built all across the country. Once the World Cup ends, the stadiums will more than likely remain dormant – which is where the “white elephants” title of the segment comes into play. In South Africa four years ago, ten stadiums were built at the cost of billions of dollars. Nine of those stadiums stand relatively unused today.

The same thing happens when countries host the Olympics – it doesn’t take too much effort to find evidence of stadiums or arenas being built solely to hold events and then be used for nothing or razed years later. The 2004 Olympics in Athens are a stark example of the waste that goes into holding events like the Olympics and the World Cup, as many of the arenas and stadiums built for the events stand empty.

Perhaps even more shocking – the organizers of these events in those host countries openly admit to having no plan for the future of the venues. The Greek economy collapsed in large part to the massive amount of waste that went into the Olympics a decade ago, with the crumbling stadiums as reminders of that waste.

Today, Brazil is preparing by the World Cup by spending more money than any country in history. A brand new, $270 million stadium was built in the remote town of Manaus for just four games this World Cup. Manaus is so remote that many Brazilians can’t even drive there. Materials to build the stadium were shipped from Portugal, across the Atlantic Ocean and transported down the Amazon River. All that for four games in a town that HBO described as “a weigh station.”

The organizers are oblivious to this. The designer of the stadium in Manaus claims that when people watch the games on television, they will become aware of the city, and tourism and investment opportunities will increase. Apparently, eight hours of soccer over the month of June will create all of that goodwill.

For a country like Brazil, bathed in poverty, to burn away billions of dollars on stadiums and arenas for the World Cup and the 2016 Olympics is shameful. Once the World Cup ends and Olympics preparation begins, homes in Rio de Janeiro will be razed to make room for the venues, sending many Brazilian citizens into homelessness for the sake of a two week sporting event.

… in a country like Brazil that is teetering on the edge of financial chaos, dumping billions of dollars into sports while a bulk of your citizens are poor, starving, and lacking healthcare seems like a recipe for a disaster, with nothing but empty stadiums and a page on Wikipedia to show for it when all is said and done.

VIDEO: Real Sports with Bryant Gumbel: Episode #206 Web Clip – White Elephants (HBO Sports) – http://youtu.be/lHUiyxKgg1s

Jon Frankel travels to Athens, Greece plus Manaus and Rio de Janeiro in Brazil and looks for answers to the question of: Are billions being wasted on World Cup and Olympic venues?

The Go Lean book details these series of community ethos, strategies, tactics, implementations and advocacies designed to re-boot the delivery of the regional solutions, so badly needed and hoped for:

Community Ethos – Ways to Foster Genius	Page 27
Community Ethos – Ways to Promote Happiness	Page 36
Strategic – Visitors – Snow Birds at RV Campgrounds	Page 55
Strategic – Staffing – Events at Fairgrounds	Page 55
Tactical – Fostering a Technocracy	Page 64
Tactical – Separation of Powers – Sports & Culture Administration	Page 81
Tactical – Separation of Powers – Fairgrounds Administration	Page 83
Implementation – Steps to Implement Self-Governing Entities	Page 105
Implementation – Ways to Deliver	Page 109
Planning – Ways to Make the Caribbean Better	Page 131
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Improve Local Government – Parks & Recreation	Page 169
Advocacy – Ways to Impact Events	Page 191
Advocacy – Ways to Promote Fairgrounds	Page 192
Advocacy – Ways to Foster Technology Expositions	Page 197
Anecdote – Model of Miami-DadeCounty Youth Fair	Page 227
Advocacy – Ways to Improve Sports	Page 229
Advocacy – Ways to Improve the Arts	Page 230
Advocacy – Ways to Promote Music	Page 231
Advocacy – Ways to Impact Urban Living – Sports Leagues	Page 234

This stadium is the Pakar Seating Grandstand system. It is so versatile that it’s suitable for any type of Golf Competition event.

The foregoing article discourages investment in permanent venues unless there is a solid long-term business plan. The Go Lean roadmap concurs – Greece did not recover from the flawed Olympic build-out for facilities that were never used again after the 2004 Games. On the other hand, here is the encouragement and recommendation to develop fairgrounds and deploy temporary stadia, arenas and theaters. Imagine a golf tournament; no one would expect bleachers and grandstands at the putting greens to be permanent structures. No, there is a place for temporary structures in the world of sports.

The Bondi Beach Volleyball Stadium was constructed for the Sydney 2000 Olympic Games and stood for just six weeks. The temporary stadium was constructed on the world-famous Bondi Beach and had over 10,000 seats.

There is one sport, Beach Volleyball, which only uses temporary bleachers/grandstands – 100 percent.
So there is a place for the arts & sciences of temporary structures. There is the need for their economic impact.

The Go Lean roadmap anticipates 21,000 direct jobs at fairgrounds and sports enterprises throughout the region.

Now is the time for all of the Caribbean, the people and governing institutions, to lean-in for the empowerments of the Caribbean Union Trade Federation. Now is the time to make this region a better place to live, work and play. 🙂

Download the free e-Book of Go Lean … Caribbean – now!

========================

* APPENDICES *

Appendix A – Sample New Stadiums for Brazil
The permanent structures call for more elaborate construction schedules and risks. Some delays have been unavoidable – see this article (photos) on the Sao Paulo stadium slated for the opening game on June 12, 2014; posted and retrieved 06/04/2014:

http://www.businessinsider.com/bleachers-at-sao-paulo-world-cup-stadiums-2014-6#ixzz33iMAwtEf

Brazil prepares…
When Brazil drafted plans to host the upcoming World Cup, Natal, the Atlantic beach destination was exactly the type of city it wanted to show off. Five years later, and four weeks before kickoff, little besides the arena and a remote, untested airport are complete.

Almost half the more than $1.3 billion in promised developments [in Natal] never began. What did [begin] has languished, including ongoing road work that has rendered the stadium’s outskirts a raw sprawl of rebar, dust and concrete. (Reuters)

An aerial view of the Arena Pantanal soccer stadium in Cuiaba, April 25, 2014. Cuiaba is one of the host cities for the 2014 World Cup in Brazil. See photos here (REUTERS/Joel Marcos):

An Aerial view of the Arena das Dumas from January 22, 2014; this stadium will host matches for the 2014 soccer World Cup.

This is the incomplete stadium in Natal; with 4 weeks before the first event, the infrastructural improvements for the surrounding areas have still not been completed.

People stand in the bleachers during an infrastructure test at Arena de Sao Paulo Stadium, one of the venues for the 2014 World Cup, in the Sao Paulo district of Itaquera April 26, 2014.

Appendix B – Temporary Structures Models & Systems
Many examples of successful temporary stadia, arenas and theaters abound – see photos here.

Here are 2 reputable vendors for providing these products and services.

1. PAKAR Grandstand is extremely versatile, therefore, it can be installed either as a PERMANENT or REMOVABLE Grandstand. It can be displaced and re-installed at any location quickly and easily. The system of frames is pre-assembled with an interlocking system, ties, braces, beams and deck units that locks together for fast assembly. Our Grandstand can be installed on any type of surface i.e. concrete, grass and sand (Desert). It can be installed on a slope depending on soil condition. Our system can be used both Outdoor and Indoor. For Outdoor use, it can be equipped with a roof system (Complete roofing or Semi-roofing). Source: http://www.pakar-seating.com/

Padel is a relatively new racquet sport that is extremely popular in Spain. The logistics of this platform accommodates each individual sports event and is 600 square meters in size and has 3,000 seats around it.

This stadium is a modular stadium built by NUSSLI who has developed flexible and sustainable concepts for popular global sports and cultural events

This stadium is not only for sporting events, but it is ideal for cultural activities as well.

Grandstand bleachers for a drag racing configuration

2. Temporary Stadium, Modular Stadium Construction, Stadia Expansion.

NUSSLI provides complete modular stadiums and arenas or additional grandstands – with or without roofing. We offer our stadium construction solutions for rental (temporary) or sale (permanent).

The experience gained from multifaceted stadium projects around the world makes NUSSLI a reliable partner in modular stadia construction and in stadium expansion. NUSSLI‘s mobile stadia fulfill the highest demands in regard to safety, functionality, and architecture.

The modular stadium® can be adapted to meet changing requirements and individual customer needs over and over again. The stadium can be installed in virtually no time and removed just as quickly after use.

The NUSSLI service range in stadium construction:
•Stadia and arenas (modular, temporary, permanent, mobile)
•Stadium expansion (modular, temporary, permanent)
•Additional grandstand, roofing
•Steel tube grandstand
•Service buildings

Modular Stadium® – a Convincing System.
Those who modularly build or expand stadiums and arenas enjoy considerable advantages over those using the traditional building method. The key factors of modular stadium construction are savings in cost and time.

Cost advantage: The use of modules can be temporally limited, therefore avoiding costs for possible surplus capacities. The standardization shortens planning and construction processes.

Fast and flexible: modular stadium constructions or expansions by NUSSLI beat any other system in regard to installation speed.
Source: http://www.nussli.us/services/stadium-construction.html

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EU willing to fund study on cost of not having CARICOM

Posted on June 4, 2014 in Implementation, Planning, Tactical

Go Lean Commentary

What would be the opportunity cost of not having CariCom?

Opportunity cost is defined as …

“the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. Assuming the best choice is made, it is the ‘cost’ incurred by not enjoying the benefit that would be had by taking the second best choice available”.^[a]

See linked VIDEO below for sample/example.

VIDEO – Opportunity Cost explained^[b]:

Real Estate Investment Click Photo to Play

The CariCom is viewed as a failure in many circles in the Caribbean and internationally!

Just what is the opportunity cost for all the time, talent and treasuries exerted into CariCom thus far?
Could those investments have generated a better return in other endeavors?
Has CariCom even measured … the opportunity cost?

This CariCom “wasted opportunity” stance is also declared in the book Go Lean…Caribbean, and all of its aligned blog submissions. This issue – CariCom mis-firings – had previously been addressed in many Go Lean blog-commentaries (to date):

a. https://goleancaribbean.com/blog/?p=816 – The Future of CariCom
b. https://goleancaribbean.com/blog/?p=476 – Grenada PM Urges CARICOM on ICT
c. https://goleancaribbean.com/blog/?p=451 – CARICOM Chairman to deliver address on reparations
d. https://goleancaribbean.com/blog/?p=346 – Caribbean leaders convene for CARICOM summit in St Vincent

All in all, the book and accompanying blogs assert that the Caribbean Community construct is a failed manifestation of regional integration. CariCom has failed because it has only achieved so little of what it attempted, and only attempted so little of what’s possible – they have just stood by as “Rome burned”. Even CariCom themselves have acknowledged that their branded endeavor, CSME or Caribbean Single Market & Economy has sputtered, despite investing millions of Euros, according to this article:

ST GEORGE’S, Grenada — The European Union (EU) is willing to fund a study that would explore the opportunity costs of not having a Caribbean Community (CARICOM) in place.
Ewout Sandker, head of Cooperation, Delegation of the EU to Guyana, Suriname and Trinidad and Tobago and the Dutch Overseas Countries and Territories, made the announcement on Monday during the high level advocacy forum on statistics in Grenada.

As he underlined the importance of a solid data foundation for development in general, and regional integration in particular, Sandker posed some questions to the forum and made reference to the path the European Union took towards integration.

He told the gathering of senior government officials, statisticians, and representatives of international organisations that, in the 1980s, the EU conducted a study that calculated the opportunity cost of not having a fully integrated market in Europe. The results, he related, were “quite amazing”. They were an “enormous push” to regional integration and provided a good opportunity for mobilizing the private sector in Europe, which saw the benefits they were not getting by not having a fully integrated market, he said.

“Something like that could be done in the Caribbean as well, and we would be happy to provide funding for such a study (of) the cost of not having CARICOM,” Sandker said.
Over the past decade, the European Union has been providing support to the Community to strengthen regional statistics and to improve its use in policy-making. About €4M of the €57M Ninth European Development Fund (EDF) cycle to the Community was allotted to produce and disseminate economic statistics, to harmonise statistical structures across the region and to train staff to use the economic statistics to monitor the regional integration process.

The EU and the Caribbean Forum of African Caribbean and Pacific States (CARIFORUM) deepened support to the field of statistics under the 10th EDF to build on earlier achievements and to fill the gaps that remained.

From the €18M allocated to the CSME under the 10th EDF, about €2M was allocated to strengthen the intra-regional systems to produce and disseminate timely, high quality, harmonized statistics to monitor the CSME. The funding, Sandker said, was used to monitor regional integration, further develop merchandise trade statistics and to boost social and environmental statistics, among other areas.

Statistical monitoring of the integration movement, he said, was particularly close to his heart. “I’ve been working on it the first time I was in Guyana with the CARICOM Secretariat and I believe that monitoring of both compliance of regional integration commitments at the national level, and secondly, the impact of regional integration activities and processes are absolutely key to the success of the regional integration enterprise.

“If you can’t measure it; if you don’t know the compliance at national levels with different areas of integration, how can you allocate resources in a sensible way? If you don’t know, you cannot prioritise. If you don’t know what is the impact of the regional integration process, how can you argue that it is a good thing? How can you argue that you should go further and deeper,” he queried.

Source: Caribbean News Now – Regional News Source (Retrieved 05/31/2014) –
http://www.caribbeannewsnow.com/headline-EU-willing-to-fund-study-on-cost-of-not-having-CARICOM-21361.html

The people of the region deserve better!

This book Go Lean… Caribbean serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), a graduated iteration of regional integration for the democracies and territories in and around the Caribbean Sea. The following 3 prime directives are explored in full details in the roadmap:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

This re-boot roadmap commences with the recognition that all the Caribbean is in crisis, and in the “same boat” despite their colonial heritage or language. All the geographical member-states, 30 in all, therefore need to confederate, collaborate, and convene for solutions. This pronouncement is made in the Declaration of Interdependence, (Page 10). This Preamble statement includes this verbiage:

While our rights to exercise good governance and promote a more perfect society are the natural assumptions among the powers of the earth, no one other than ourselves can be held accountable for our failure to succeed if we do not try to promote the opportunities that a democratic society fosters. …

The vision of the CU is a confederation of the 30 member-states of the Caribbean into an integrated Single Market with a different brand name other than CSME, rather the Caribbean Union Trade Federation – and this time … we vest the entity with real roles/responsibilities and also include the Spanish, French and Dutch homelands from the outset. Tactically, the CU allows for a separation-of-powers between the member-state governments and the new federal agencies. The Go Lean book details these series of community ethos, strategies, tactics, implementations and advocacies designed to re-boot the delivery of the regional solutions, so badly needed and hoped for:

Anecdote – Caribbean Single Market & Economy	Page 15
Community Ethos – Money Multiplier	Page 22
Community Ethos – Job Multiplier	Page 22
Community Ethos – “Crap” Happens	Page 23
Community Ethos – Lean Operations	Page 24
Community Ethos – Cooperatives	Page 25
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategic – Vision – Integrated Region in a Single Market	Page 45
Strategic – Vision – Agents of Change	Page 57
Tactical – Confederating a Non-sovereign Union	Page 63
Tactical – Fostering a Technocracy	Page 64
Tactical – Growing to $800 Billion Regional Economy	Page 67
Tactical – Separation of Powers	Page 71
Tactical – Interstate Commerce Admin – Econometrics Data Analysis	Page 79
Anecdote – Turning Around CariCom	Page 92
Anecdote – “Lean” in Government	Page 93
Implementation – Ways to Pay for Change	Page 101
Implementation – Foreign Policy Initiatives at Start-up	Page 102
Implementation – Security Initiatives at Start-up	Page 103
Implementation – Ways to Deliver	Page 109
Planning – Big Ideas for the Caribbean Region	Page 127
Planning – Ways to Model the EU	Page 130
Planning – Ways to Measure Progress	Page 147
Advocacy – Ways to Grow the Economy	Page 151
Anecdote – Governmental Integration: CariCom Parliament	Page 167
Advocacy – Ways to Improve Governance	Page 168
Advocacy – Ways to Foster Cooperatives	Page 176
Advocacy – Ways to Improve Homeland Security	Page 180
Appendix – Trade SHIELD – “Harvest“ Comprehensive Data Analysis	Page 264

Econometrics … measuring progress

The Go Lean roadmap for the CU stresses the importance of a solid data foundation to analyze and measure progress. This models the effort of the European Economic Community (EEC – predecessor to the EU) in the 1980s; they commissioned a study to calculate the opportunity cost of not having a fully integrated European market. The results of that study were compelling and propelled the completion of the regional integration effort. The foregoing article recommends a similar exercise for the Caribbean, so as to provide a good opportunity to mobilize the private and public sectors in the region to dive deeper in the integrated Single Market. The Go Lean…Caribbean roadmap (370 pages) is a Caribbean study in compliance with this recommendation.

Now is the time for all of the Caribbean, the people and governing institutions, to reject the CariCom status quo … then lean-in for this new integration re-boot … for the Caribbean Union Trade Federation. Now is the time to make this region a better place to live, work and play. 🙂

Download the book Go Lean … Caribbean – now!

———–

Referenced Citations:

a. Investopedia online resource. Retrieved 2010-09-18 from: http://www.investopedia.com/terms/o/opportunitycost.asp.
b. Video link: http://www.investopedia.com/video/play/opportunity-cost/

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Bahamas Planning to Introduce 7.5 Percent VAT in 2015

Posted on June 3, 2014 in Economics, Government, Locations

Go Lean Commentary

Governments need revenue in order to fulfill their role in the Social Contract.

Change has come to the Caribbean! The driver for this change is globalization. One agent of change is the World Trade Organization (WTO); their quest to liberalize international trade calls for the elimination of tariffs (Customs duties). Since this is the primary revenue source for most Caribbean governments, there is the need for new revenue options.

The below article highlights the “Value Added Tax” option, and its introduction in the Bahamas. This government is struggling with the implementation – change is hard! This issue had previously been addressed in Go Lean blogs:

a. https://goleancaribbean.com/blog/?p=994 – Bahamas reject US WTO-Trade demands
b. https://goleancaribbean.com/blog/?p=386 – Bahamas Debate: Was Prime Minister Behind On Tax?

The issues of government revenue reform, operational processing, and best practices for delivery are stressed in the book Go Lean… Caribbean. These issues are among the primary focus of the book, serving as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). The following 3 prime directives are explored in full details:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

See the underlying news story here:

By: The Caribbean Journal staff

The Bahamas is planning to introduce a new 7.5 percent value added tax, the government announced this week.

The tax will be a single VAT rate across the board, although that is lower than an initially proposed 15 percent tax.

The country’s Ministry of Finance said the lower rate would also mean fewer exemptions.

The ultimate plan is for the tax to come into effect on Jan. 1, 2015, after what the government said would be an “in-depth public education campaign and private sector preparation.”

The Ministry of Finance also said it was proposing “VAT-inclusive” pricing rather than VAT exclusive, with the aim to “simplify price comparisons by consumers, especially when navigating between VAT registrants and non-registrants.”

“The price consumers see will always be the price they pay,”

The move will also mean that the hotel occupancy tax will be eliminated.

Government estimates predicted that the new VAT along with a basket of other fiscal provisions would increase the revenue yield of the Bahamas’ revenue system to 19.8 percent of GDP, up from 17.1 percent in the current fiscal year.

Christie said the goal with the mix of fiscal measures was to eliminate the “untenable structural imbalance between recurrent expenditure and revenue” by the 2015/2016 fiscal year, sharply reduce the GFS deficit by 2016/2017 and “arrest the growth in the government debt burden and move it onto a steady downward path to more sustainable levels.”

“I want to emphasize, at this point, that we are in no way engaged in unrealistic, pie-in-the-sky, wishful thinking on the score of fiscal redress,” Christie said. “With a keen eye on the state of our economy and mindful of the need to maintain and support its upward, forward momentum, we are embarked on a mutually-reinforcing plan of national development and fiscal consolidation that is balanced and measured. As such, our aim is set on gradual, though assured, progress on the fiscal front.”

The Bahamas would be the latest in a line of Caribbean countries to introduce a VAT; St Lucia was the most recent country to do so.

A value-added tax proposal by the United Kingdom government in Turks and Caicos was shelved last year after opposition from businesses.

Caribbean Journal Online News Source (Retrieved 05/30/2014) – http://www.caribjournal.com/2014/05/30/bahamas-planning-to-introduce-7-5-percent-value-added-tax-in-2015/

This roadmap commences with the assessment that the Caribbean is in crisis, and that this “crisis would be a terrible thing to waste”. Coupled with the external pressures for revenue reform, is the internal realities of societal abandonment – more and more of the labor pool has migrated to foreign lands in search of better economic opportunities – lowering the tax-paying base in the country. The book describes the sad state of affairs in Caribbean locales like Puerto Rico (Page 303) and the Bahamas 2^nd city of Freeport (Page 112). As a planning tool, the roadmap accepts the challenge to adapt for the changes with a Declaration of Interdependence, pronouncing the need for regional solutions (Page 12). The statement is included as follows:

Whereas government services cannot be delivered without the appropriate funding mechanisms, “new guards” must be incorporated to assess, accrue, calculate and collect revenues, fees and other income sources for the Federation and member-states. The Federation can spur government revenues directly through cross-border services and indirectly by fostering industries and economic activities not possible without this Union.

The strategy is to confederate all the 30 member-states of the Caribbean, despite their language and legacy, into an integrated “single market”. Tactically, this will allow a separation-of-powers between the member-states governments and federal agencies, allowing for efficient economies-of-scale for revenue collection systems, processes and people. Yes, astute application of technology is cited as a key solution. In total, the Go Lean book details series of community ethos, strategies, tactics, implementations and advocacies to deliver new solutions:

Anecdote Puerto Rico – The Greece of the Caribbean	Page 18
Community Ethos – Money Multiplier	Page 22
Community Ethos – “Crap” Happens	Page 23
Community Ethos – Lean Operations	Page 24
Community Ethos – Return on Investments (ROI)	Page 24
Community Ethos – Cooperatives	Page 25
Community Ethos – Ways to Improve Sharing	Page 35
Strategic – Vision – Integrated region in a Single Market	Page 45
Strategic – Vision – Agents of Change – Technology	Page 57
Strategic – Vision – Agents of Change – Globalization	Page 57
Tactical – Confederating a Non-sovereign Union	Page 63
Tactical – Fostering a Technocracy	Page 64
Tactical – Growing to $800 Billion – Trade & Globalization	Page 70
Tactical – Separation of Powers – Union Revenue Admin.	Page 74
Anecdote – “Lean” in Government	Page 93
Implementation – Ways to Pay for Change	Page 101
Implementation – Deploying Data Centers	Page 106
Implementation – Ways to Deliver	Page 109
Implementation – Ways to Better Manage Debt	Page 114
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Mitigate Black Markets	Page 165
Advocacy – Ways to Improve Governance	Page 168
Advocacy – Ways to Improve Local Governments	Page 169
Advocacy – Ways to Better Manage the Social Contract	Page 170
Advocacy – Revenue Sources for Administration	Page 172
Advocacy – Ways to Foster Cooperatives	Page 176

All in all, the CU/Go Lean supports all governments’ efforts to collect legitimately authorized taxes.

Pay Caesar’s things to Caesar” – so declares the Go Lean book (Page 144), quoting Jesus Christ from the Bible at Mark 12:17. While Jesus Christ teachings are not portended to be economic lessons, this rendering in the roadmap posits that this and other bible teachings are economically sound. The Bahamas, the Caribbean country in the foregoing news article, lays claim to a Christian heritage. It is time for this country, and all the Caribbean, to “put their money where their mouth is”.

Now is the time for all of the Caribbean, the people and governing institutions, to lean-in for the changes described in the book Go Lean … Caribbean. The local governments need their revenues. They are part of the eco-system to elevate Caribbean life, culture and systems of commerce.

Download the book Go Lean … Caribbean – now!

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Sports Bubble – Franchise values in basketball

Posted on June 2, 2014 in Economics, Social

Go Lean Commentary

The foregoing news article highlights a topical issue in the world of sports, basketball in particular: the blatant racism of basketball team owner by octogenarian Donald Sterling. The sports league, the NBA, expelled him from the league and has announced that it is moving forward with the forced sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer for $2 Billion.

There are many lessons to learn/apply from this Donald Sterling / LA Clippers drama. Lessons such as:

There are more important things than money – the sports world rallied in support of the campaign to divorce the antagonist, Donald Sterling, from his team ownership.
Money covers a multitude of sins – the indication is that Mr. Sterling’s conduct was unbecoming for a long time before this episode.
Sports are immune to economic cycles – team values continue to rise despite depressed asset values during the Great Recession.
Sports are not immune to economic realities – there is a real possibility of a bubble due to the absence of economic fundamentals of some teams; there is still the need for technocratic efficiency.
Technology in broadcasting is transforming the sports industry – since DVR programming neutralizes the exposure to advertising, live sports broadcasts stand out as an exception: reliable audience. This thereby increases league/team values.
Institutional racism is real – the generation that practiced segregation is still alive and wields power, like 80-year-old Donald Sterling.
Attitudes in sports can mold society – the public sympathized with Black personnel having to work for an owner with racist views towards Black people; the NBA was forced to act quickly to expel Sterling from the league, with national concurrence.
The business of sports can shape a community’s economic landscape – the new value assessment of the Clippers has now elevated all the sport franchises in Los Angeles and related cities; now all connected properties and neighborhoods have appreciated in value as well.

The book, Go Lean … Caribbean, serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This subject of blatant racism in sports ownership is in scope for the CU as this technocratic agency will assume responsibility for regional sports administration. The roadmap has the prime directives to elevate the Caribbean’s:

(1) economy,

(2) security apparatus, and

(3) governing engines.

The Economist Magazine (Posted & Retrieved 05/31/2014) –
FOR all Donald Sterling’s well-known faults—the owner of the Los Angeles Clippers basketball team seems to have comfortably secured a role as the face of racism in America—no one has ever accused him of being a bad businessman. Although most of his fortune came from real estate, he is now on the brink of closing out what is probably the most profitable investment in the history of professional sports. The other 29 team owners of the National Basketball Association (NBA) are set to hold a vote on June 3rd to terminate his control of the Clippers, in response to a tape of his offensive remarks about blacks that was leaked to the media. But the league’s commissioner, Adam Silver, had let it be known that he would prefer a voluntary sale to happen first—managed by Mr. Sterling’s estranged wife Rochelle, since Mr. Silver had already banned Mr. Sterling for life and thus prevented him from exercising control over the team.

On May 29th the commissioner’s wish was granted, when Ms. Sterling announced that Steve Ballmer the former head of Microsoft, had agreed to buy the Clippers for the eye-popping sum of $2 billion. Although the Los Angeles Dodgers baseball team went for a slightly higher $2.15 billion in 2012, that deal included valuable real-estate assets as well, whereas the Clippers are essentially being sold on their own. The previous record price for an NBA club was just $550m, set by the Milwaukee Bucks earlier this year, and Forbes magazine valued the Clippers at a mere $575m in January. Mr. Ballmer’s bid comfortably exceeded the reported $1.6 billion offered by a group led by David Geffen, a media executive.

Mr. Sterling has not yet announced whether he will try to block the sale. Since he bought the team for a piddling $12.5m in 1981 and lives in the high-tax state of California, the deal would cost him an estimated $662m in capital-gains taxes. Moreover, his lawyer has demanded that the league retract its accusations against Mr. Sterling, though an after-tax profit of $1.326 billion might help him to swallow his pride. It is not yet clear whether Mr. Sterling could hold up the deal if he wants to. His representatives insist that no sale can proceed without his signature. But the family trust that formally owns the club has declared the 80-year-old Mr Sterling mentally incapacitated—an opinion shared by many viewers of his ill-advised interview with Anderson Cooper on CNN—in order to give his wife sole authority over the franchise. Mr Sterling has a well-earned reputation for litigiousness, and would surely challenge any sale by Ms Sterling against his will in court. However, that would cause the league to re-initiate termination proceedings against him.

The NBA will also still have to approve Mr. Ballmer, but that is expected to be a mere formality. Paul Allen, another Microsoft billionaire, already owns the Portland Trail Blazers, and the league vetted Mr. Ballmer when he made a failed bid for the Sacramento Kings. Mr. Silver will be eager to remove a pariah from the league as quickly and quietly as possible, and to avoid the prospect of a long court battle with Mr. Sterling. And the commissioner surely wants to lock in the lofty sale price, which sets a new valuation bar for every other franchise.

Mr Ballmer is yet to speak publicly about his financial calculus, except to assure the NBA that he would not seek to move the Clippers to Seattle, as he hoped to do with the Kings. (He told the Wall Street Journal that relocating the club out of America’s second-biggest market would be “value destructive”.) Microsoft shareholders who despaired at his string of high-priced acquisitions for the company can at least take solace that he is no thriftier with his own money: the Clippers will cost an estimated 10% of his net worth.

To be sure, there are strong arguments for a ten-figure price for the team. Sports franchise values have been soaring in recent years, thanks to record-setting rights deals from television networks desperate for DVR-proof programming. Both the NBA’s national contract and the Clippers’ local one are set to expire in the coming years, leaving the team doubly well-positioned to cash in. And following an acrimonious lockout in 2011, the league’s current collective-bargaining agreement sharply cut the share of its revenues that gets paid out in salaries, which made clubs far more profitable. Low interest rates are driving up prices for all assets, and the combination of rising inequality and greater international interest in basketball has increased the number of billionaires willing to splurge on an NBA team.

Moreover, the Clippers currently find themselves in an unfamiliar spot as the best basketball team in Los Angeles, and indeed all of California. The Lakers, their far better-loved crosstown rivals, are suffering through a difficult rebuilding phase, whereas the Clippers finished with the league’s third-best record this year. No one would blink an eye if the Lakers sold for $2 billion, and in theory there’s no reason why the team’s electrifying “Lob City” offence featuring Chris Paul and Blake Griffin could not supplant the slumping Lakers for Angelenos’ affections.

On the other hand, brand loyalty matters as much or more in sports as the on-field product. In 2009 the Chicago Cubs, baseball’s iconic lovable losers, sold for $845m despite putrid overall economic conditions, because they were the more popular club in a big two-team market. As measured by Facebook likes, there is not a single postal code in which the Clippers are even one-fifth as popular as the Lakers, and the Lakers are the preferred club in pretty much every part of the United States that lacks a nearby team save the Southeast. The Lakers’ local television deal pays them $180m a year; the Clippers are expected to fetch 60% less for their next contract. Mr. Sterling’s 33 years of penny-pinching mismanagement have left a stain on the franchise that no number of Paul-to-Griffin windmill alley-oops can erase. When Jack Nicholson attends a Clippers game, it’s news; when he goes to see the Lakers, it’s just normal.

The great unknown is whether the going rate for televised sports rates is sustainable. Cable carriers like Time Warner have already begun offering cheaper packages that exclude expensive sports channels, and John McCain, a senator from Arizona and former presidential candidate, has introduced a bill that would “unbundle” cable television and let viewers choose the channels they want a la carte. Both approaches would reduce the “sports tax” that non-fans currently pay to subsidise fans via their cable bills. Technological advances or piracy could also disrupt the current lucrative delivery model, as they have with so many other types of media.

Buying a team for a billion or two is essentially a bet on the sports-media status quo continuing for at least another decade. It may well be a bubble. But it has already lasted for far longer than the naysayers ever thought possible.
http://www.economist.com/news/leaders/21603026-how-hand-over-272-billion-year-criminals-thats-where-money?fsrc=nlw%7Chig%7C30-05-2014%7C53552127899249e1cc9ea210%7CNA

The Go Lean … Caribbean roadmap commences with a Declaration of Interdependence. In Verse XXXI (Page 14) it pronounces specific dynamics of sports:

Whereas sports have been a source of great pride for the Caribbean region, the economic returns from these ventures have not been evenly distributed as in other societies. The Federation must therefore facilitate the eco-systems and vertical industries of sports as a business, recreation, national pastime and even sports tourism.

The foregoing news article is sourced from the Economist Magazine. Therefore this perspective is from a macro-economic vantage point, which is apropos for this roadmap, as this book posits that the right economic, financial and investment landscape can impact Caribbean society, forging sport franchises and facilitating growth in value and appreciation. The CU envisions being the landlord of sports leagues at CU fairgrounds – operating as Self-Governing Entities. Today in the Caribbean however, there is not much of a sports eco-system beyond the High School level. This roadmap envisions collegiate and professional sports manifestations, as a tool/technique to empower society.

The roadmap specifically elevates the region through a series of community ethos, strategies, tactics, implementations and advocacies to foster the business of sports in the Caribbean region:

Economic Systems Influence Choices and Incentives	Page 21
Community Ethos – Anti-Bullying and Mitigation	Page 23
Anecdote – Hail, Hail, the Champs: Miami Heat!	Page 42
Tactical – Confederating a non-sovereign union	Page 63
Tactical – Separation of Powers–Sports Administration	Page 81
Implementation – Assemble Existing Regional Entities	Page 96
Implementation – Consolidating Regional Spectrum	Page 101
Implementation – Steps for Self-Governing Entities	Page 105
Implementation – Reasons to Repatriate	Page 118
Planning – Ways to Make the Caribbean Better to Play	Page 151
Advocacy – Ways to Improve Communications	Page 156
Advocacy – Ways to Promote Fairgrounds	Page 193
Advocacy – Impact Media/Broadcast/Hollywood Roles	Page 201
Advocacy – Ways to Improve Sports	Page 218

Now is the time for all of the Caribbean, athletes and non-athletes alike to lean-in for the empowerments described in the book Go Lean … Caribbean. The benefits are too alluring, an improved, economically viable sports world; and a better place to live, work and play.

The Go Lean roadmap is not about basketball. But basketball is among the games people play; and play can be a great source of leisure and economics. The world is now watching the tropical region for basketball dominance. This is because the Miami Heat will now play for the NBA championship, starting this week Thursday (June 5, 2014) in their 4th straight NBA Finals. The roadmap posits that the Miami Heat relates to the Caribbean since its base is in Miami, Florida; a metropolitan area that possesses the largest pocket of Caribbean Diaspora. So in many ways, the Miami Heat is the “home team” of the Caribbean. Go Heat!

Download Go Lean … Caribbean – now!

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Model, Play, Sports

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Health-care fraud in America; criminals take $272 billion a year

Posted on June 2, 2014 in Economics, Planning

Go Lean Commentary

Wherever there is vibrant economic activity, bad actors will emerge.

This is the claim of the book Go Lean…Caribbean, that the result of successful regional integration would be an elevated Caribbean economy, which consequently could result in increased felonious activities.

There is a lot of economic activity around health-care. According to a US News and World Report story, the US lacks health efficiencies, spending 20, 30, even 100 times as much on medical products and devices as what it would cost, at a typical big-box retailer like Wal-Mart. In a sample year (2012), the country spent over $2.8 trillion on health care, more than twice as much on a per-capita basis as other high-income countries such as England and France.^[a]

The Caribbean wants to be a high-income country/region, but not in the model of the United States. We must be better; we must be lean!

The book, Go Lean … Caribbean, serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), the next generation of integration for the region. This roadmap posits the eventual economic success will be quickly followed with the emergence of bad actors seeking to exploit the successes. So security/crime deterrents will not be an after-thought; no, rather the full crime-and-punishment eco-system (investigation, persecution, penology) is in scope for the CU as this technocratic agency will assume responsibility for economic crimes in the region. In effect, this roadmap has the prime directives to elevate the Caribbean’s:

(1) economy,

(2) security apparatus, and

(3) governing engines.

The Economist Magazine (Posted & Retrieved 05/31/2014) –
MEDICAL science is hazy about many things, but doctors agree that if a patient is losing pints of blood all over the carpet, it is a good idea to stanch his wounds. The same is true of a health-care system. If crooks are bleeding it of vast quantities of cash, it is time to tighten the safeguards.

In America the scale of medical embezzlement is extraordinary. According to Donald Berwick, the ex-boss of Medicare and Medicaid (the public health schemes for the old and poor), America lost between $82 billion and $272 billion in 2011 to medical fraud and abuse (see article). The higher figure is 10% of medical spending and a whopping 1.7% of GDP – as if robbers had made off with the entire output of Tennessee or nearly twice the budget of Britain’s National Health Service (NHS).

Crooks love American health care for two reasons. First, as Willie Sutton said of banks, it’s where the money is – no other country spends nearly as much on pills and procedures. Second, unlike a bank, it is barely guarded.

Some scams are simple. Patients claim benefits to which they are not entitled; suppliers charge Medicaid for non-existent services. One doctor was recently accused of fraudulently billing for 1,000 powered wheelchairs, for example. Fancier schemes involve syndicates of health workers and patients. Scammers scour nursing homes for old people willing, for a few hundred dollars, to let pharmacists supply their pills but bill Medicare for much costlier ones. Criminal gangs are switching from cocaine to prescription drugs – the rewards are as juicy, but with less risk of being shot or arrested. One clinic in New York allegedly wrote bogus prescriptions for more than 5m painkillers, which were then sold on the street for $30-90 each. Identity thieves have realised that medical records are more valuable than credit-card numbers. Steal a credit card and the victim quickly notices; photocopy a Medicare card and you can bill Uncle Sam for ages, undetected.

It is hard to make such a vast system secure: Medicare’s contractors process 4.5 [million] claims a day. But pointless complexity makes it even harder. Does Medicare really need 140,000 billing codes, as it will have next year, including ten for injuries that take place in mobile homes and nine for attacks by turtles? A toxic mix of incompetence and political gridlock has made matters worse. Medicare does not check new suppliers for links to firms that have previously been caught embezzling (though a new bill aims to fix this). Fraud experts have long begged the government to remove Social Security numbers from Medicare cards to deter identity thieves – to no avail.

Start by closing the safe door
One piece of the solution is obvious: crack down on the criminals. Obamacare, for all its flaws, includes some useful measures. Suppliers are better screened. And when Medicaid blackballs a dodgy provider, it now shares that information with Medicare – which previously it did not. For every dollar spent on probing health-care fraud, taxpayers recover eight. So the sleuths’ budgets should be boosted, not squeezed, as now.

But the broader point is that American health care needs to be simplified. Whatever its defects, Britain’s single-payer National Health Service is much simpler, much cheaper and relatively difficult to defraud. Doctors are paid to keep people well, not for every extra thing they do, so they don’t make more money by recommending unnecessary tests and operations – let alone billing for non-existent ones.

Too socialist for America? Then simplify what is left, scale back the health tax-perks for the rich and give people health accounts so they watch the dollars that are spent on their treatment. After all, Dr. Berwick’s study found that administrative complexity and unnecessary treatment waste even more health dollars than fraud does. Perhaps that is the real crime.
http://www.economist.com/news/leaders/21603026-how-hand-over-272-billion-year-criminals-thats-where-money?fsrc=nlw%7Chig%7C30-05-2014%7C53552127899249e1cc9ea210%7CNA

The Go Lean … Caribbean roadmap commences with the statement that the Caribbean is in crisis, and that this “crisis is a terrible thing to waste”. Later generations of Caribbean parents have had fewer children than their predecessors, 2.1 children per household, as opposed to the previous average of 5 – 6 children. Now, that older generation is aging, and the numbers do not lie, there are fewer children to care for their aging parents. What’s worse, many of the Caribbean labor pool had fled the region and emigrated to the US, Canada and Europe. Actuarially, we have a financial tsunami building and targeting the region. This crisis is identified early in the book, in the opening Declaration of Interdependence (Page 12), with this pronouncement:

ix. Whereas the realities of healthcare and an aging population cannot be ignored and cannot be afforded without some advanced mitigation, the Federation must arrange for health plans to consolidate premiums of both healthy and sickly people across the wider base of the entire Caribbean population. The mitigation should extend further to disease management, wellness, obesity and smoking cessation programs. The Federation must proactively anticipate the demand and supply of organ transplantation as developing countries are often exploited by richer neighbors for illicit organ trade.

Creating the solution to mitigate health-care fraud (and other economic crimes) is “Step One, Day One” in the Go Lean roadmap. Implementing the appropriate regulatory framework, to marshal against the scenarios depicted in the foregoing news article, will allow for a “value exchange” for the vital investments the CU must make in the delivery of health-care solutions.

Health-care solutions also entail the astute application of information technology (IT). Agile IT systems, mobile and web applications can foster good value to health-care institutions and government payers. The book considers the Healthways model.

The Go Lean roadmap maintains that efficiency in health services delivery is not automatic, but rather must be forged and bred from experience, expertise, attitudes, training, and the quality application of delivery arts and sciences. The book details a series of community ethos, strategies, tactics, implementations and advocacies to foster the proper controls for health-care efficiency in the Caribbean region:

Community Ethos – Economic Choices Involve Costs	Page 21
Community Ethos – Whistleblower Protection	Page 23
Community Ethos – Intelligence Gathering	Page 23
Community Ethos – Lean Operations	Page 24
Community Ethos – Impacting Research & Development	Page 30
Community Ethos – Pursue the Greater Good	Page 37
Strategic – Agents of Change – Aging Diaspora	Page 57
Tactical – Fostering a Technocracy	Page 64
Tactical – Repatriation to Grow to a $800 Billion GDP	Page 70
Tactical – Separation of Powers – Medicare Admin.	Page 86
Tactical – Separation of Powers – Licensing/Standards	Page 86
Anecdote – “Lean” in Government – Improve Process	Page 93
Implementation – Ways to Pay for Change	Page 101
Implementation – Security Initiatives at Start-up	Page 103
Implementation – Ways to Deliver	Page 109
Implementation – Reasons to Repatriate	Page 118
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Improve Healthcare	Page 156
Advocacy – Ways to Impact Entitlements	Page 158
Advocacy – Better Manage the Social Contract	Page 170
Advocacy – Ways to Remediate and Mitigate Crime	Page 178
Advocacy – Ways to Improve Emergency Management	Page 196
Advocacy – Ways to Foster Technology	Page 197
Appendix – Disease Management – Healthways Model	Page 300
Appendix – Controlling Inflation – Healthcare Realities	Page 320
Appendix – TraumaCenter Realities	Page 336

Change has come to the Caribbean. Costs dynamics are unavoidable with this impending change.

Now is the time for all of the Caribbean, the people and governing institutions, to lean-in for the changes described in the book Go Lean … Caribbean. The benefits are too alluring, a better place to live, work, heal and play.

Download the free e-Book of Go Lean … Caribbean – now!

Source Reference:

a. US News & World Report. “The High Cost of Staying Well – the U.S. gets poor bang for its medical buck”. Retrieved May 31, 2014 from: http://www.usnews.com/opinion/mzuckerman/articles/2013/10/22/why-health-care-costs-so-much-and-how-to-fix-it

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Crony-Capitalism, Power, Security

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Month: June 2014

The Art & Science of Temporary Stadiums – No White Elephants

*** APPENDICES ***

EU willing to fund study on cost of not having CARICOM

Bahamas Planning to Introduce 7.5 Percent VAT in 2015

Sports Bubble – Franchise values in basketball

Health-care fraud in America; criminals take $272 billion a year

* APPENDICES *