Tag: Trade

In Defense of Trade – India’s Business Process Outsourcing

Posted on November 23, 2018 in Economics, Industries, Strategy

Go Lean Commentary

Pay more than the usual attention to Trade …

… this is the urging of this series of commentaries. Why?

Trade may be the panacea (cure all) for the ills of the Caribbean. Let’s consider one example, BPO.

BPO = Business Process Outsourcing

Individually, these 3 words are very common in our daily life: Business, Process and Outsourcing. Put together and most people … have no clue.

BPO is not just an informal association of these 3 letters. Rather it’s a formal business model; see this encyclopedic reference:

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain.[1]

BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact center (customer care) services.[2]

BPO that is contracted outside a company’s country is called offshore outsourcing. BPO that is contracted to a company’s neighbouring (or nearby) country is called nearshore outsourcing.

Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service.[3] Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.

Benefits
The main advantage of any BPO is the way in which it helps increase a company’s flexibility. However, several sources have different ways in which they perceive organizational flexibility. In early 2000s BPO was all about cost efficiency, which allowed a certain level of flexibility at the time. Due to technological advances and changes in the industry (specifically the move to more service-based rather than product-based contracts), companies who choose to outsource their back-office increasingly look for time flexibility and direct quality control.[4] Business process outsourcing enhances the flexibility of an organization in different ways:

  • … transforming fixed into variable costs.[7]
  • … focus on its core competencies, without being burdened by the demands of bureaucratic restraints.[9]
  • … increasing the speed of business processes.
  • … allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded.

Source: Retrieved November 23, 2018 from: https://en.wikipedia.org/wiki/Business_process_outsourcing

The most common BPO in the US is payroll-processing. Most companies have specific missions, they are not in the payroll business, but payroll – every week, bi-week, fortnight, or monthly – is a necessary evil for operations. BPO for this HR-Accounting functionality allows the firm to concentrate on its mission and enjoy greater functionality and sometimes better cost savings.

Here’s another: have you gotten a Passport lately? Then chances are you are familiar with the subject. You show up with a completed application and a photo; a clerk receives you and inspects your form for completeness; they package your submissions into a bundled folder and send it off for processing (Black-box). 2 weeks, 3 weeks or 5 weeks later (according to the Service Level Agreement or SLA), a finished passport is ready for pick-up. That Black-box is classic BPO.

Worldwide, the BPO market is estimated at about US$140 billion for 2016 – from the BPO Services Global Industry Almanac 2017.[27]  One country has double-down on this strategy that they can provide jobs, entrepreneurial opportunities and economic growth to their citizens by pursuing more and more BPO.

This is India. See the related VIDEO in Appendix B below.

The foregoing encyclopedic reference continues:

India, China and the Philippines are major powerhouses in the industry. In 2017, in India the BPO industry generated US$30 billion in revenue according to the national industry association.[28] The BPO industry is a small segment of the total outsourcing industry in India. The BPO industry and IT services industry in combination are worth a total of US$154 billion in revenue in 2017.[29] The BPO industry in the Philippines generated $22.9 billion in revenues in 2016.[30] In 2015, official statistics put the size of the total outsourcing industry in China, including not only the BPO industry but also IT outsourcing services, at $130.9 billion.[31]

Lessons learned from India is not unfamiliar to this movement behind the book Go Lean…Caribbean. Here we go again!

We can benefit from the consideration of trade with other countries; we previously considered China and now we are looking at India. This commentary is the 3rd of the 5-part series (3 of 5) from the movement behind the book Go Lean…Caribbean in consideration of the subject “In Defense of Trade“. The focus here is that Trade must be prioritized in the Caribbean region if we want a new economic regime. The other commentaries in the series are cataloged as follows:

  1. In Defense of Trade: China Realities
  2. In Defense of Trade: Macy’s Thanksgiving Parade Model – ENCORE
  3. In Defense of Trade: India BPO’s
  4. In Defense of Trade: Bilateral Tariffs – No one wins
  5. In Defense of Trade: Currency Assassins – Real Threat

The Go Lean movement asserts that Trade is pivotal for Caribbean growth. It does not only affect the region’s economics, but the security and governing engines as well. In the case of BPO, the trade product is intellectual: human services. India has benefited greatly from Wall Street’s BPO jobs; this Asia region now boasts 10 percent of all the jobs servicing Wall Street banks; see Appendix A below for a full article of how Wall Street firm Goldman Sachs employ professional functions in their Bangalore BPO facility, including Quantitative Analysts. We need to pay more than the usual attention to this model. We can copy some of the BPO functionality and bring jobs here to the Caribbean.

The Go Lean book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). The CU seeks to optimize the region’s economic systems to better deliver on the prime directives of the Go Lean roadmap. The prime directives are pronounced as the following statements:

  • 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 and mitigate challenges/threats to ensure public safety for the region’s stakeholders.
  • Improvement of Caribbean governance to support these economic/security engines, including a separation-of-powers between member-states and CU federal agencies.

So the CU Trade Federation vision is to provide the stewardship for the region’s economic engines, to optimize trade so as to succeed in the goals of the roadmap.

The Go Lean/CU roadmap details how to drive change for the 30 member-states and their economic, security and governing engines. The Go Lean book – within its 370 pages – describes the new community ethos, strategies, tactics, implementations and advocates that must be executed to manifest this roadmap.

BPO’s are affiliated with Contact Centers …

… this commentary had previously identified the economic benefits that can come to a community that invest in BPO’s:

With modern Internet Communications Technology (ICT) – think Voice-over-IP – a phone call can originate or terminate around the globe, but feel/sound like it is next door. The premise of this business model for the Caribbean is simple: Why not make those calls / answer the phone here in the Caribbean?

Jobs are at stake.
…

Direct and indirect jobs at physical and virtual call centers: 12,000.
…
In addition to these industry jobs; there is also the reality of indirect jobs – unrelated service and attendant functions – at a 3.75 multiplier rate would add another 45,000 jobs.

The subject of banking jobs have been thoroughly elaborated upon in these previous Go Lean blog-commentaries:

https://goleancaribbean.com/blog/?p=15923 Industrial Reboot – Payment Cards 101
https://goleancaribbean.com/blog/?p=15479 ‘Lean Is’ as ‘Lean Does’ – Good Bank Project Management
https://goleancaribbean.com/blog/?p=14242 Leading with Money Matters – Follow the Jobs
https://goleancaribbean.com/blog/?p=11184 JPMorganChase spent $10 billion on ‘Fintech’ for 1 year

In summary, while the Caribbean is arguably the best address on the planet, we have a deficiency in job creation. We need more trade. There is the opportunity to double-down on trade … in services – BPO’s await us – this will create more jobs.

India did this – mastering trade and globalization – so can we.

This is the Go Lean roadmap. This plan is conceivable, believable and achievable.

We urge everyone in the Caribbean – bankers et al – to lean-in to this roadmap to make the Caribbean a better place to live, work and play. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———————-

Appendix A – Title: The new back office: inside Goldman Sachs’ Bangalore hub 
Sub-title: Quants are hired in India as economics, politics and tech shape the banking industry
By: Andrew Hill

When Goldman Sachs opened its wholly owned Bangalore operation in 2004, it was a typical back office. Just under 300 full-time staff supported a front line of revenue-generating bankers worldwide. They worked in limited areas such as information technology, finance and accounting.

The group put no cap on Bangalore’s ambitions, says Bunty Bohra, who heads the office, but “we didn’t envisage anything like the scale and complexity” of the current operation — let alone what is now planned for the group.

Goldman now employs about 5,000 staff in Bangalore, 4,000 of them full-time, across almost every division of the bank, including revenue-generating “front office” roles. In 2019, it expects to open a $250m campus on Bangalore’s traffic-clogged outer ring road that will be able to accommodate 9,000 people in two buildings, across 1m sq ft.

The evolution of Goldman’s presence in Bangalore is one example of how economics, technology and politics have shaped the back office over the past 15 years. Companies have started to look at back offices not just as low-cost support centres, but sources of skills for the rest of the organisation. At the same time, they have learnt to flex the mixture and location of their own staff, and of outsourced teams, to meet customer needs.

In the mid-1990s, multinationals strove to cut the cost of support functions such as handling payroll, or dealing with customer queries. Moving them to cheaper countries such as India was the obvious solution. Since then, however, the response to the question of how, where and with whom to carry out back-office functions has become more complex, and more strategic.

Goldman is a case in point. Its Bangalore-based staff now represent 14 activities — from compliance and legal services to investment banking, though the most senior client-handling vice-presidents still operate out of Mumbai. “It really is a talent story, not ‘Where are there people and office space that’s inexpensive?’” says Mr Bohra. Last year, for instance, the bank hired 150 “quants” in Bangalore. These mathematicians and scientists work on the bank’s quantitative investment strategies, but also analyse big data in areas such as risk management or human resources.

The bank’s plans for its new campus would allow it to expand to become the biggest office outside New York. But at the same time, the bank does not have to take up the option to lease the second of two buildings. At the moment, it expects headcount to remain flat. Mr Bohra uses an analogy with a potentially uncontrollable family pet: “We don’t want to have a ‘golden retriever’ problem. We want the intellect, maturity and seasoning to exist at the same time.”

This is only one way in which companies are reviewing their back-office strategy. For instance, growth in the use of “captive” centres, serving the whole company, has accelerated. Ilan Oshri of Loughborough University found that between 1990 and 2009, the world’s largest 250 companies established 367 captive centres worldwide. There are now an estimated 2,000 such hubs.

Outsourcing companies have also become more agile. Susir Kumar, chairman of Intelenet Global Services, says outsourcers have moved from carrying out processes to making more judgments for clients. Intelenet’s agents have long had the responsibility for deciding, say, whether to grant a loan or approve an insurance claim. “The ability to manage change in a fast-changing environment is the key,” he says. Often, contract workers are used in a blend with in-house back-office staff.

Even Goldman’s Bangalore operation, which prides itself on propagating a “Goldman culture”, now outsources certain functions — such as accounting — to multiple contractors.

Prof Oshri says the trend of companies moving their offshored back offices to the next cheapest location as labour costs increase has also changed.

One factor for large companies that have expanded overseas is political pressure to “bring jobs home”. That could be a particular issue for US retail banks. They are potentially in president Donald Trump’s line of fire, although they argue they need to support front offices round the clock, and therefore round the world.

Other sectors have, over the past five years, also started to trim earlier policies to offshore customer service operations. In the UK, Santander, the bank, United Utilities, the water company, and BT all “reshored” call-centre work from India in 2011. Vodafone UK recently announced it would create 2,100 jobs across the UK, essentially by relocating customer service roles currently carried out, via an external agency, in South Africa. Last year’s Brexit vote could accelerate the trend, as outsourcers and insourcers adapt to a more nationalistic popular tone.

In the case of call centres, location is highly dependent on customers’ perception of quality — bluntly, whether they can understand the call-centre staff. But there are other advantages to having support staff closer to headquarters, including control over recruitment, rewards and training. Strategic support functions, like risk management, may be better handled by a “middle office”, based closer to the main revenue-generating activities.

The cost and skills combination needed for back offices still tilts the choices heavily towards emerging markets, though. Vodafone UK’s IT shared services are still in Bangalore and Pune in India, where it uses a blend of captive operations and third parties, often dealing with enterprise customers.

Campbell Harvey of Duke University’s Fuqua School of Business says cost is still companies’ main motivation and technology will be a more important influence than politics on future back-office decisions. “People traditionally doing back-office functions in New York and London were disrupted by offshoring and that’s a sideshow compared with what’s coming,” he says.

That said, while the rise of machine learning sounds like a threat to back-office jobs, when Prof Oshri asked 150 corporate buyers of outsourced services how much they had spent on cognitive computing, the answer averaged out at £350,000 per enterprise over the past five years — barely enough to cover a pilot project.

Leslie Willcocks of London School of Economics says he is “staggered how slow” big organisations are to introduce basic automation, let alone artificial intelligence.

Intelenet’s Mr Kumar is equally sanguine, both about the US political pressure, to which he thinks the industry will adapt, and the rise of the robots. He believes the same number of employees will work with machines to do more sophisticated jobs for clients. But Prof Harvey has a warning for institutions that do not plan ahead. “It’s a race to the bottom and the bottom is not a human, it’s a machine.”

Source: The Financial Times – Posted April 13, 2017; retrieved November 23, 2018 from: https://www.ft.com/content/6c1481ea-185d-11e7-9c35-0dd2cb31823a

———————-

Appendix B VIDEO – The Transformation Of India’s BPO Industry – https://youtu.be/44RlATt7S2w


NDTV
Published on Nov 19, 2017 – India’s BPO industry first caught our imagination over a decade ago with its world-class offices and relatively high starting salaries. But with the downsides of strange shift timings and stranger accents. How has it changed since then? As it lost its novelty value, the BPO world fell out of the headlines. Is the industry still flourishing in India or have protectionism, automation and competition from other countries hurt the famous Indian outsourcing industry?

NDTV is one of the leaders in the production and broadcasting of un-biased and comprehensive news and entertainment programmes in India and abroad. NDTV delivers reliable information across all platforms: TV, Internet and Mobile.

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In Defense of Trade – Macy’s Thanksgiving Parade Model – ENCORE

Posted on November 22, 2018 in Economics, Industries, Strategy

Today is the Thanksgiving Holiday in the US. It’s a Public Holiday, that the government has set-aside for the population to Give Thanks … to whomever …

This is a civic holiday more so than it is a religious holiday.

It is also a commercial holiday – lots of Trade activities; lots of Trade Inspirations.

The Trade Inspiration applies to us in the Caribbean. There is one event associated with the American Thanksgiving tradition that gives us pause – as observers and reporters of the America eco-system – that is the Macy’s Thanksgiving Parade. This subject has been detailed in a previous Go Lean Commentary from November 25, 2016; it is appropriate to Encore that now; see below.

This commentary is the 2nd of the 5-part series (2 of 5) from the movement behind the book Go Lean…Caribbean in consideration of the subject “In Defense of Trade“. The focus here is that Trade must be prioritized in the Caribbean region if we want a new economic regime. The other commentaries in the series are cataloged as follows:

  1. In Defense of Trade: China Realities
  2. In Defense of Trade: Macy’s Thanksgiving Parade Model – ENCORE
  3. In Defense of Trade: India BPO’s
  4. In Defense of Trade: Bilateral Tariffs – No one wins
  5. In Defense of Trade: Currency Assassins – Real Threat

No doubt, there is the need to grow the Caribbean economy; we need jobs, entrepreneurial opportunities, better educational and healthcare options, a safer homeland and more efficient governmental services. Since trade policies (chattel goods and intellectual property) affect all of these deliveries, we need to pay more than the usual attention to these discussions. Truthfully, we do NOT have a lot of chattel goods in our region; we do not manufacture much; but we can thrive in the intellectual property arena. This is where we need successful role models to show us how we can better exploit the opportunities with trade.

Let’s look-listen-learn from the Macy’s model. See the Encore here:

—————————————

Go Lean Commentary – Model of the Macy’s Thanksgiving Day Parade – By The Numbers

“We are giving this for free as a gift to America” – CNBC Newscast: Amy Kule, Executive Producer, 2014 Macy’s Thanksgiving Parade*.

Free?

Hardly! There is nothing free about American Thanksgiving. This is just another example of American Crony-Capitalism. Consider the facts in this VIDEO here of the Macy’s Thanksgiving Day Parade, by the numbers:

VIDEO – Macy’s Thanksgiving Day Parade by the Numbers – http://www.aol.com/video/channel/news/582e4599134aa15f420ded1a/

playbutton-300x300

Click on the Photo to Play VIDEO 

This discussion is promoting the idea of the Caribbean modeling the best-practices of American commerce – there are a lot of economic returns from events. The Macy’s Thanksgiving Day Parade, in the foregoing, is an event – one of the biggest on the calendar for New York City. So the focus of this commentary is the impact that one event can have on the societal engines of a community: economics, security and governance.

One person – or company – can make a difference.

Notice how this parade is mostly administered by one private company: Macy’s Department Stores.

Reference Title: Macy’s Department Store
Macy’s, originally R. H. Macy & Co., is a department store owned by Macy’s, Inc. It is one of two divisions owned by the company, with the other being Bloomingdale’s. As of January 2014, the Macy’s division operates 789 department store locations in the continental United States, Hawaii, Puerto Rico, and Guam, including the prominent Herald Square flagship location in Midtown Manhattan, New York City.[2]:35

cu-blog-macys-thanksgiving-day-parade-by-the-numbers-photo-2Macy’s has conducted the annual Macy’s Thanksgiving Day Parade in New York City since 1924 and has sponsored the city’s annual Fourth of July fireworks display since 1976. Macy’s Herald Square is the largest department store in the world. The flagship store covers almost an entire New York City block, features about 1.1 million square feet of retail space, includes additional space for offices and storage, and serves as the endpoint for Macy’s annual Thanksgiving Day parade. It is estimated that the value of Herald Square is under $3 billion to more than $4 billion.[3]

As of 2015, Macy’s is the largest U.S. department store company by retail sales and is the 15th-largest retailer in the United States for 2014 in terms of revenue.[4][5]
Source: Retrieved November 25, 2016 from: https://en.wikipedia.org/wiki/Macy%27s

The focus of the book Go Lean…Caribbean is to elevate the Caribbean economic disposition, based on the existing infrastructure and new implementations. So we would want to look-listen-learn from this American model and then apply the lessons here in the Caribbean. Events are integral to the touristic experience; this is why the Go Lean book, serving as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU), details so many dimensions of eco-system for events. The book prominently highlights that even small towns can get in on the economic buoyancy of events by detailing the role model of the City of Sturgis (population 6,600) in the US State of South Dakota – Page 191. Their annual event – Sturgis Motorcycle Rally in August – generates about $800 million in community revenues.

Successful management of events is a mission of Go Lean roadmap. The region needs the jobs. These events – think Carnival or Junkanoo in the Bahamas – create permanent and temporary jobs. This is part-and-parcel of the Go Lean/CU prime directives, as identified with the following 3 statements:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million overall new jobs; 9,000 jobs are attributed to Events.
  • Establishment of a security apparatus to protect the resultant economic engines.
  • Improve Caribbean governance to support these engines.

The Go Lean book presented the roadmap to imbrue the Caribbean region with new community ethos, plus new strategies, tactics, implementation and advocacies to improve event-job creation in the region. The following is a sample of these specific details from the book:

Community Ethos – Deferred Gratification Page 21
Community Ethos – Economic Principles – People Choose Page 21
Community Ethos – Economic Principles – People Respond to Incentives in Predictable Ways Page 21
Community Ethos – Economic Principles – Economic Systems Influence Individual Choices Page 21
Community Ethos – Economic Principles – The Consequences of Choices Lie in the Future Page 21
Community Ethos – Governing Principles – Lean Operations Page 24
Community Ethos – Governing Principles – Cooperatives Page 25
Community Ethos – Ways to Impact the Future Page 26
Community Ethos – Ways to Foster Genius – Consider Artists, Musicians and Performers Page 27
Community Ethos – Ways to Help Entrepreneurship Page 28
Community Ethos – Ways to Promote Happiness Page 36
Community Ethos – Ways to Impact the Greater Good Page 37
Strategy – Vision – Confederate 30 Member-States Page 45
Strategy – Mission – Celebrate the Music, Sports, Art and Culture of the Caribbean Page 46
Tactical – Confederating a Permanent Union Page 63
Tactical – Fostering a Technocracy Page 64
Tactical – Separation-of-Powers – CU Federal Agencies versus Member-State Governments Page 71
Implementation – Ways to Pay for Change Page 101
Implementation – Ways to Deliver Page 109
Planning – 10 Big Ideas for the Caribbean Region Page 127
Planning – Ways to Make the Caribbean Better Page 131
Planning – Lessons from New York City Page 137
Planning – Lessons from Omaha – College World Series Model Page 138
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Create Jobs Page 152
Advocacy – Ways to Enhance Tourism Page 190
Advocacy – Ways to Impact Events Page 191
Advocacy – Ways to Promote Fairgrounds Page 192
Advocacy – Ways to Preserve Caribbean Heritage Page 218
Advocacy – Ways to Improve Sports – Fairgrounds as Sport Venues Page 229
Advocacy – Ways to Improve the Arts Page 230
Advocacy – Ways to Promote Music Page 231

The empowerments in the Go Lean book calls for permanent change to ensure that Caribbean people have opportunities; they only want to be able to provide for their families and preserve their unique Caribbean culture.

The Go Lean roadmap offers the technocratic execution of these deliverables. Imagine the expansion of the existing events in the region. Plus, imagine the artistic expressions and entertainment (singers, dancers, musicians, performers, etc.). Just like for the Macy’s Parade in the foregoing, economic gains await. This is the business model of “events”. From the outset, the Go Lean book recognized the significance of events and festivities in the roadmap with these statements in the opening Declaration of Interdependence (Page 12 & 14):

xxi.  Whereas the preparation of our labor force can foster opportunities and dictate economic progress for current and future generations, 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.

xxxii. Whereas the cultural arts and music of the region are germane to the quality of Caribbean life, and the international appreciation of Caribbean life, the Federation must implement the support systems to teach, encourage, incentivize, monetize and promote the related industries for arts and music in domestic and foreign markets. These endeavors will make the Caribbean a better place to live, work and play.

There are many other communities that have flourished in this strategy – business model of fun and festivities – as depicted with the example of the Macy’s Thanksgiving Parade. Success is possible; we need only to look, listen and learn.

Many previous Go Lean blog-commentaries have focused on the business of events. See samples-examples detailed in these previous blogs:

https://goleancaribbean.com/blog/?p=9712 Forging Change: Panem et Circenses
https://goleancaribbean.com/blog/?p=5251 Post-Mortem of Inaugural Junkanoo Carnival
https://goleancaribbean.com/blog/?p=4879 Model of a Sports Event: Martinique Surfing
https://goleancaribbean.com/blog/?p=3292 Model of an Artistic Event: Art Basel Miami
https://goleancaribbean.com/blog/?p=2152 Model of a Sports Event: Little League World Series
https://goleancaribbean.com/blog/?p=1341 College World Series Time – Lessons from Omaha
https://goleancaribbean.com/blog/?p=1214 Landlord of Temporary Stadiums
https://goleancaribbean.com/blog/?p=535 Event Security: Remembering and learning from Boston
https://goleancaribbean.com/blog/?p=318 Collegiate Sports in the Caribbean

Now is the time for all of the Caribbean, the people and governing institutions, to lean-in for the empowerments in the book Go Lean … Caribbean. This is a Big Idea for the region; that of expanding Caribbean events for greater economic throughput. We have the foundations in place already, the many artistic, cultural and sporting events for locals and visitors.

We can employ the strategies, tactics and implementations from models like the Macy’s Thanksgiving Parade to make our Caribbean region a better place to live, work and play. 🙂

Download the book Go Lean … Caribbean – now!

———

Appendix * – Source References:

https://youtu.be/61kyIsEBuUA posted Published on Nov 26, 2014; (retrieved November 25, 2016).

Executive producer of the Macy’s Thanksgiving Day Parade, Amy Kule, provides insight to the numbers behind tomorrow’s big parade and reveals some new characters.

———

Appendix VIDEO – 7 Macy’s Thanksgiving Day Parade Facts You Never Knew! – https://youtu.be/zOtWeyh1aRs

 

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In Defense of Trade – China Realities

Posted on November 21, 2018 in Economics, Strategy

Go Lean Commentary

Here’s the challenge:

You have 1.3 billion people; you must facilitate economic growth to provide them with jobs, basic needs and the pursuit of happiness. Where do you go? What do you do?

Answer: Trade, trade, trade …

This is what the experts say.

The experts? Economists …

These economists say the best practice to grow an economy is to double-down on trade and market-based economics.

Voluntary Trade Creates Wealth: People specialize in the production of certain goods and services because they expect to gain from it. People trade what they produce with other people when they think they can gain something from the exchange. Some benefits of voluntary trade include higher standards of living and broader choices of goods and services.

This urging was proclaimed in the book Go Lean…Caribbean which presents the strategies, tactics, implementations and advocacies for growing the Caribbean economy. The book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU). Yes, the emphasis is on trade . The CU will serve as an integrated entity to shepherd progress and optimization among the region’s societal engines for economics, security and governance.

This best practice for societal growth is a lesson learned from the study of other communities – ancient and modern – that have done “this” successfully. The book presents the role models of the Great Britain, United States, Germany, Japan, Asian Tigers (Singapore, Hong Kong. South Korea and Taiwan).

So China doubling-down on trade is just another iteration of the accepted best practice of market-based economics. In fact in a previous blog-commentary about China’s motive – their end game – for Caribbean investments, the following points were detailed:

If this Golden Rule is true: “he who has the gold makes the rules”, then we will be held to account to stakeholders in China, as their many state-own companies are definitely “bringing gold” to the table. This was vividly communicated in a previous (2014) China-Caribbean Trade/Business Summit:

“Latin America has much to gain from deepening its relationship with China, just as China has much to gain from our region,” said Luis Alberto Moreno, president of the Inter-American Development Bank (IDB). “For our governments, this is a strategic priority. But much of the day-to-day building of those links will fall on the private sector.”

China joined the IDB as a shareholder in 2009, and is now the top trade partner for several countries in the region, including Brazil and Chile.

Trade between Latin America and the Caribbean and China is expected to double in the next decade. … Source: http://caribjournal.com/2014/09/15/china-holds-business-summit-with-latin-america-caribbean/
…
This is the same playbook of the United States of America in building the world’s largest Single Market economy. (Remember, with the Army Corp of Engineers, the US built the Panama Canal, but with more strings attached). China is simply following the same American script – minus the cronyism and militarism – of promoting trade of their products, services and capital.

Capital? Yes, many of the projects highlighted … are being financed by China’s state-owned banks and lending institutions. They are “putting their money, where their mouth is”. These are economic battles only!

This commentary is the first of a 5-part series from the movement behind the Go Lean book in consideration of the subject “In Defense of Trade“. The focus here is that Trade must be prioritized in the Caribbean region if we want a new economic regime. The other commentaries in the series are cataloged as follows:

  1. In Defense of Trade: China Realities
  2. In Defense of Trade: Macy’s Thanksgiving Parade Model – ENCORE
  3. In Defense of Trade: India BPO’s
  4. In Defense of Trade: Bilateral Tariffs – No one wins
  5. In Defense of Trade: Currency Assassins – Real Threat

No doubt, there is the need to grow the Caribbean economy; we need jobs, entrepreneurial opportunities, better educational and healthcare options, a safer homeland and more efficient governmental services. Since trade policies (chattel goods and intellectual property) affect all of these deliveries, we need to pay more than the usual attention to these discussions. Trade has also been prominent in the news as of late, with the current American Federal government’s (under President Donald Trump) new penchant for tariffs and the UK negotiating a new trade deal as they leave the European Union (Brexit).

So there is the need for a 360 degree view of trade: the good; the bad; and the ugly. The Caribbean status quo is ugly, in terms of trade, there is the need to reform and transform, so as to reboot our society. But we are not the first, (and will not be the last). Let’s see the lessons we can learn from the trade strategies, tactics and implementations of others. We can all benefit!

Let’s start with China; there are parallels to consider. They need to provide for 1.3 Billion people, and so they are embracing market-based economics. In the Caribbean we only need to provide for 42 million, but we are like a fish in the pond; it does not matter how big the ocean is, we are limited to our pond. This is the definition of scope; our time, talents and treasuries must be designed to impact just these 30 island-nations and coastal states. Despite the size, there is the need for efficiency and effectiveness with market-based economic concepts. This is defined in the Go Lean book as technocratic/technocracy:

The term technocracy was originally used to designate the application of the scientific method to solving social & economic problems, in counter distinction to the traditional political or philosophic approaches. – Go Lean book Page 64.

The CU seeks to optimize the region’s economic systems – to make more efficient and effective – to better deliver on the prime directives of the Go Lean roadmap. The prime directives are pronounced as the following statements:

  • 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 and mitigate challenges/threats to ensure public safety for the region’s stakeholders.
  • Improvement of Caribbean governance, including a separation-of-powers with member-states, to support these economic/security engines.

So the CU Trade Federation vision is to provide the stewardship for the region’s economic engines, to optimize trade (chattel goods and intellectual property), so as to succeed in the goals of the roadmap. The focus on trade is intra-region so as to minimize the expenditure of foreign reserves and also extra-regional so as to grow the economy. This vision was pronounced at the outset of the book in the opening Declaration of Interdependence (Page 13):

vi. Whereas the finite nature of the landmass of our lands limits the populations and markets of commerce, by extending the bonds of brotherhood to our geographic neighbors allows for extended opportunities and better execution of the kinetics of our economies through trade. This regional focus must foster and promote diverse economic stimuli.

xxiv.   Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

According to the following article-commentary from Canada, expanding trade with China –  a willing partner – is a good strategy for improving the economic engines of a community – trade is that important:

Title: We need a China trade strategy, so let’s get it right
By: Edward Greenspon and Kevin Lynch

With exports over 30 per cent of GDP, Canada’s economy would be much smaller and its citizens considerably poorer if not for trade and investment with other countries. That three-quarters of that trade relies on ready access to the increasingly self-absorbed, aggressive and fickle United States is cause for serious deliberation, beyond indignation.

Canada’s special relationship with the United States has served us both well. It is always a risky proposition to have so many eggs in a single basket, but those risks were mitigated by Canada’s embrace of predictable rules to govern both bilateral trade, beginning with the Auto Pact, which morphed into the Canada-U.S. free-trade agreement (FTA) and NAFTA, and the international-trading system through the General Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO).

Even in the best of times, there were breakdowns, such as the repeated U.S. attacks over softwood lumber or former president Barack Obama’s rejection of the Keystone pipeline. Unfortunately, we’ve now entered a world where it’s softwood lumber all the time. So, what are we to do?

Some answers are clear enough. The long-held and oft-ignored objective of diversifying our trade relations must be pursued with urgency and vigour. Canada has done well by its recent agreements with the European Union and with Japan and others in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Business leaders must now put commercial meat on the bones of these agreements.

Secondly, if a trading country such as Canada wants to grow, by definition it needs to trade with countries with both fast growth and with sufficient scale to make an appreciable difference to our export volumes. By and large, these are Asian – and you can’t speak of Asia without including China in the conversation. China’s annual growth is roughly two to three times that of Canada and the United States – off a base of 1.3 billion people. Any government seeking to represent the national interests of Canadians in the time of Donald Trump must be in possession of a long-term strategy that includes China, and not, as for more than a decade, a hodgepodge of inconsistent and reactive decisions.

Canadians don’t seem troubled by the proposition of an Asian diversification strategy with China at its core. Despite concerns about Chinese authoritarianism, human-rights violations and the perceived behaviour of some state-owned enterprises, polling shows support for a free-trade agreement trending up over the past few years. Qualtrics places the number at about 70 per cent and the Asia-Pacific Foundation about 10 points lower. No poll puts it below 50 per cent.

This shift in Canadian attitudes began even before Mr. Trump’s immodest arrival on the scene. His words and deeds have merely added impetus. Canadians get that American economic and geopolitical power is declining in relative terms and that China is an emerging force to reckon with. In the Asia Pacific Foundation’s recent annual survey, 59 per cent of respondents believe trade with Asia, led by China, will outweigh trade with the United States in the future. Canadians essentially are asking: “How can we not have a clear engagement strategy with a country that within the next 10 years will be the world’s biggest economy, largest exporter of capital, goods and services, largest emitter of [greenhouse gases] GHGs, a technology superpower and the world’s largest source of tourists and expatriate students?”

As co-chairs of the Public Policy Forum’s Consultative Forum on China, we have spent the past 14 months consulting on what a made-in-Canada strategy for future Canada-China relations should look like. Our blueprint will be released in the fall.

It is strikingly clear from our discussions that more value-added trade in sectors such as agri-food, forestry, resources, educational services, tourism and clean-tech is unambiguously beneficial for Canadians. Selling lobsters and lumber raise no national security flags, real or imagined, but they do create lots of jobs all across Canada. A case in point today is the 180 fishing fleet jobs and 304 processing plant positions in Atlantic Canada directly flowing from Clearwater Foods’ seafood exports to China.

Interestingly, both Canada and China have diversification agendas – we seek greater security of demand for our exports while China wants greater security of supply through trade arrangements with a broader range of exporting countries. Canada appeals because it is a highly developed, rule-of-law based, G7 country that poses few geopolitical risks, unlike many other global exporters.

Meanwhile, China, having raised hundreds of millions from poverty to middle-class status since it embraced a market-based economy, is now learning this middle class comes with expanding expectations for a better life – starting with livable cities, healthy food, safe workplaces, reliable pensions and available eldercare. Beyond traditional exports, China knows it can benefit from Canada’s long experience designing policies and services for the middle class.

China elicits a wide spectrum of passionately held views, of that there is no doubt. Whatever one may think, however, the question is whether a balanced engagement strategy with an economically dynamic China serves our national interests at a time when the President of the United States is pursuing a beggar-thy-neighbour policy. Risk management and prudent diversification certainly suggest yes. Time to decide how best.

———

Edward Greenspon is president and CEO of the Public Policy Forum. Kevin Lynch is co-chair of PPF’s Consultative Forum on China.

Source: The Globe & Mail – Toronto, Canada’s Largest Daily – Posted June 18, 2018; retrieved November 21, 2018 from: https://www.theglobeandmail.com/business/commentary/article-we-need-a-china-trade-strategy-so-lets-get-it-right/

This article stresses how important it is for Canada to trade with China, with this quotation:

… if a trading country such as Canada wants to grow, by definition it needs to trade with countries with both fast growth and with sufficient scale to make an appreciable difference to our export volumes …

We want this kind of growth right here in the Caribbean. Therefore we must also want market-based trade with China.

The underlying motivation of the Go Lean book is to reform and transform the Caribbean member-states. Therefore we need to embrace market-based economics, the way China has. They only shifted to a market-based economy since the 1970’s, and now they have the 2nd largest single market economy … in the world – it works that fast. While America – the champion of market-based economies – is the largest trading partner for Caribbean member-states, we cannot just be parasites; no, we must be protégées.

The CU roadmap seeks to drive change among the economic, security and governing engines. The Go Lean book – within its 370 pages – describes how and when a new Caribbean can emerge using market-based economic principles. These solutions are as new community ethos, strategies, tactics, implementations and advocates designed to grow the regional economy to $800 Billion.  Consider how and when in the specific plans, excerpts and headlines from the book on Page 67 entitled:

$800 Billion Economy – How and When? – 10 Reasons and Tactics

Quotation: The whole is worth more than the sum of its parts.
The CU is a confederation treaty to unify the region of 30 countries and 42 million people into a single market, an integrated economy with a GDP of $800 Billion, even though the sum of its parts amount to $378 Billion, (per 2010  World Bank ratings).
.
Why and how will this number grow to $800 Billion? For the 10 reasons and tactics provided below; this includes samples and examples of hyper growth scenarios in specific times and places from around the world, from the past to the present. When will the meter reach $800B? Not at first, but steadily over a 5 year period. This harmonizes with the economic “Catchup” principle of “convergence”. This establishes that emerging economies experience hyper-growth (7 to 20%) for a limited period, and then normalizes into standard growth patterns of 2 – 3% [180]. This has been the documented cases of the BRIC countries (Brazil, Russia, India & China) and the Caribbean Union Trade Federation (CU) asserts that this Trade Federation will experience the same. This growth rate, from $378 Billion, would experience compounded GDP growth as follows:

  • Year 1 @ 20% = $454 Billion
  • Year 2 @ 20% = $544 Billion
  • Year 3 @ 15% = $625 Billion
  • Year 4 @ 15% = $720 Billion
  • Year 5 @ 12% = $806 Billion
1 Louisiana Purchase – US Experience
2 California Gold Rush to the Gilded Age
3 Post WW II Germany – Marshall Plan / Free Market
4 Post WW II Japan – No Marshall Plan
5 Convergence of East Asian Tigers
6 Economic Bubbles – $11 Trillion Burst / $13.5 Trillion Recovery
7 New High Multiplier Industries
8 Trade and Globalization
9 Repatriation
10 Education

The foregoing article details how beneficial trade with China could be, and how Canadians are not afraid of Chinese interactions:

Despite concerns about Chinese authoritarianism, human-rights violations and the perceived behaviour of some state-owned enterprises, polling shows support for a free-trade agreement trending up over the past few years.

See the related news VIDEO in the Appendix below.

The growth that China has shown is remarkable … and repeatable. We can model their successes here in our Caribbean region; the foregoing article conveyed their growth:

China, having raised hundreds of millions from poverty to middle-class status since it embraced a market-based economy.

The Caribbean is arguably the best address on the planet, but there are many deficiencies, as in jobs and economic empowerments. With the previous North & West (American) focus we have suffered. Our deficiencies has led to societal abandonment so bad that the region has lost a large share of our human capital, one estimate of 70% of the college-educated population to the brain-drain.

Yes, the Caribbean region needs the type of growth than can come from a progressive trade policy and market-based economics. We need to embrace Trade; this is the panacea for what ails our societal engines. Yes, we can improve with trade among ourselves and trade with foreigners. We cannot only look to the North & West – that strategy has worn thin – we must now look East and South; like China.

Mastering trade and globalization is how we must compete in today’s trade wars. This is the Go Lean roadmap.

Everyone in the Caribbean is urged to lean-in to this roadmap to make the Caribbean a better place to live, work and play. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———–

Appendix VIDEO – Trudeau outlines new Canada-China trade deals – https://youtu.be/-OTb6JqXGLw

Published on Sep 22, 2016 –  Prime Minister Justin Trudeau outlines the results of trade discussions with Chinese Premier Li Keqiang which include a new deal on canola. To read more: http://cbc.ca/1.3773699

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May Day! May Day! We Need Help With Jobs! – ENCORE

Posted on May 1, 2018 in Economics, Ethos, Industries, Social

Today is May Day!

In many countries, this day is equivalent to Labor Day, a date set aside to honor and celebrate workers, or the movement to empower workers in society. Many of the historicity of these movements were tied to labor unions.

More than 80 countries celebrate International Workers’ Day on May 1 – the ancient European holiday of May Day.

All Caribbean member-states need help with our job-labor eco-system. Our societal engines are so dysfunctional that our people flee … abandoning the homeland in search of jobs.

There is this prospect for help. This previous blog-commentary from June 18, 2015, discussed the trends in the labor markets, which depict a decline in collective bargaining. This Encore of that commentary is presented here with a plan to assuage this bad trend and create 2.2 million new jobs:

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

Title: Economic Principle: Wage-Seeking – Market Forces -vs- Collective Bargaining

Go Lean Commentary

The field of Economics is unique! We all practice it every day, no matter the level of skill or competence. There is even the subject area in basic education branded Home Economics, teaching the students the fundamentals of maintaining, supporting and optimizing a home environment. Most assuredly, economics is an art and a science, albeit a social science.

In a previous blog/commentary, Scotman’s Adam Smith was identified as the father of modern macro-economics. Though he lived from 1723 to 1790, his writings defined advanced economic concepts even in this 21st Century. His landmark book An Inquiry into the Nature and Causes of the Wealth of Nations qualified the divisions of income into these following categories: profit, wage, and rent.[4] We have previously explored profit-seeking (a positive ethos that needs to be fostered in the Caribbean region) and rent-seeking (a negative effort that proliferates in the Caribbean but needs to be mitigated), so now the focus of this commentary is on the activity of wage-seeking, and the concepts of governance and public choice theory to allow for maximum employment.

This is hard! Change has come to the world of wage-seekers – the middle classes are under attack; the labor-pool of most industrialized nations have endured decline, not in the numbers, but rather in prosperity. While wage-earners have not kept pace with inflation, top-earners (bonuses, commissions and business profits) have soared; (see Photo).

CU Blog - Economic Principles - Wage-Seeking - Market forces -vs- Collective Bargaining - Photo 2As a direct result, every Caribbean member-state struggles with employment issues in their homeland. In fact, this was an initial motivation for the book Go Lean…Caribbean, stemming from the fall-out of the 2008 Great Recession, this publication was presented as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU) to elevate the economic, security and governing engines of the Caribbean region to create 2.2 million new jobs, despite global challenges.

Needless to say, the global challenge is far more complex than Home Economics. The Go Lean book describes the effort as heavy-lifting; then proceeds to detail the turn-by-turn directions of a roadmap to remediate and mitigate wage-seeking.

The roadmap channels the Economic Principles and best-practices of technocrats like Adam Smith and 11 other named economists, many of them Nobel Laureates. A review of the work of these great men and woman constitute “Lessons in Economic Principles”. Why would these lessons matter in the oversight of Caribbean administration? Cause-and-effect!

Profit 4The root of the current challenge for wage-seekers is income equality; and this is bigger than just the Caribbean. It is tied to the global adoption of globalization and technology/ automation – a product of global Market Forces as opposed to previous Collective Bargaining factors. This relates back to the fundamental Economic Principle of “supply-and-demand”; but now the “supply” is global. This photo/”process flow” here depicts the ingredients of Market Forces. When there is the need for labor, the principle of comparative analysis is employed, and most times the conclusion is to “off-shore” the labor efforts, and then import the finished products. This is reversed of the colonialism that was advocated by Adam Smith; instead of the developed country providing factory labor for Third World consumption, the developed nation (i.e. United States) is now in the consumer-only role, with less and less production activities, for products fabricated in the Third World. This reality is not sustainable for providing prosperity to the middle classes, to the wage-seekers.

As a community, we may not like the laws of Economics, but we cannot ignore them. The Go Lean book explains the roles and significance of Economic Principles … with this excerpt (Page 21):

While money is not the most important factor in society, the lack of money and the struggle to acquire money creates challenges that cannot be ignored. The primary reason why the Caribbean has suffered so much human flight in the recent decades is the performance of the Caribbean economy. Though this book is not a study in economics, it recommends, applies and embraces these 6 core Economic Principles as sound and relevant to this roadmap:

  1. People Choose: We always want more than we can get and productive resources (human, natural, capital) are always limited. Therefore, because of this major economic problem of scarcity, we usually choose the alternative that provides the most benefits with the least cost.
  2. All Choices Involve Costs: The opportunity cost is the next best alternative you give up when you make a choice. When we choose one thing, we refuse something else at the same time.
  3. People Respond to Incentives in Predictable   Ways: Incentives are actions, awards, or rewards that determine the choices people make. Incentives can be positive or negative. When incentives change, people change their behaviors in predictable ways.
  4. Economic Systems Influence Individual Choices and Incentives: People cooperate and govern their actions through both written and unwritten rules that determine methods of allocating scarce resources. These rules determine what is produced, how it is produced, and for whom it is produced. As the rules change, so do individual choices, incentives, and behavior.
  5. Voluntary Trade Creates Wealth: People specialize in the production of certain goods and services because they expect to gain from it. People trade what they produce with other people when they think they can gain something from the exchange. Some benefits of voluntary trade include higher standards of living and broader choices of goods and services.
  6. The Consequences of Choices Lie in the Future: Economists believe that the cost and benefits of decision making appear in the future, since it is only the future that we can influence. Sometimes our choices can lead to unintended consequences.

Source: Handy Dandy Guide (HDC) by the National Council on Economic Education (2000)

The Go Lean book describes the end result of the application of best-practices in this field of economics over the course of a 5-year roadmap: the CU … as a hallmark of technocracy. But the purpose is not the edification of the region’s economists, rather to make the Caribbean homeland “better places to live, work and play” for its citizens. This branding therefore puts emphasis on the verb “work”; the nouns “jobs” and “wages” must thusly be a constant focus of the roadmap.

Brain Drain 70 percent ChartThis Go Lean book declares that the Caribbean eco-system for job-creation is in crisis … due to the same global dilemma. The roadmap describes the crisis as losing a war, the battle of globalization and technology. The consequence of the defeat is 2 undesirable conditions: income inequality and societal abandonment, citizens driven away to a life in the Diaspora. This assessment currently applies in all 30 Caribbean member-states, as every community has lost human capital to emigration. Some communities, like Puerto Rico and the US Virgin Islands have suffered with an abandonment rate of more than 50% and others have watched more than 70% of college-educated citizens flee their community for foreign shores. Even education is presented as failed investments as those educated in the region and leave to find work do not even return remittances in proportion to their costs of development. (See Table 4.1 in the Photo)

The Go Lean book therefore posits that there is a need to re-focus, re-boot, and optimize the labor/wage-seeking engines so as to create more jobs with livable wages. Alas, this is not just a Caribbean issue, but a global (i.e. American) one as well. See the following encyclopedic references for wage-seeking and Collective Bargaining to fully understand the complexities of these global issues:

Encyclopedia Reference #1: Wage-Seeking
(Source: https://en.wikipedia.org/wiki/Wage)

A wage is monetary compensation paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed (a task wage or piece rate), or at an hourly or daily rate, or based on an easily measured quantity of work done.

Wages are an example of expenses that are involved in running a business.

Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals (such as a week or month) regardless of hours worked, with commission which conditions pay on individual performance, and with compensation based on the performance of the company as a whole. Waged employees may also receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is the predominant form of work, the term “wage” sometimes refers to all forms (or all monetary forms) of employee compensation.

Determinants of wage rates
Depending on the structure and traditions of different economies around the world, wage rates will be influenced by market forces (supply and demand), legislation, and tradition. Market forces are perhaps more dominant in the United States, while tradition, social structure and seniority, perhaps play a greater role in Japan.[6]

Wage Differences
Even in countries where market forces primarily set wage rates, studies show that there are still differences in remuneration for work based on sex and race. For example, according to the U.S. Bureau of Labor Statistics, in 2007 women of all races made approximately 80% of the median wage of their male counterparts. This is likely due to the supply and demand for women in the market because of family obligations. [7] Similarly, white men made about 84% the wage of Asian men, and black men 64%.[8] These are overall averages and are not adjusted for the type, amount, and quality of work done.

Real Wage
The term real wages refers to wages that have been adjusted for inflation, or, equivalently, wages in terms of the amount of goods and services that can be bought. This term is used in contrast to nominal wages or unadjusted wages. Because it has been adjusted to account for changes in the prices of goods and services, real wages provide a clearer representation of an individual’s wages in terms of what they can afford to buy with those wages – specifically, in terms of the amount of goods and services that can be bought.

See Table of European Model in the Appendix below. (The European Union is the model for the Caribbean Union).

———-

Encyclopedia Reference #2: Collective Bargaining
(Source: https://en.wikipedia.org/wiki/Collective_bargaining)

WPR: Marches & PicketsCollective Bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.[1]

The union may negotiate with a single employer (who is typically representing a company’s shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions.

The industrial revolution brought a swell of labor-organizing in [to many industrialized countries, like] the US. The American Federation of Labor (AFL) was formed in 1886, providing unprecedented bargaining powers for a variety of workers.[11] The Railway Labor Act (1926) required employers to bargain collectively with unions. While globally, International Labour Organization Conventions (ILO) were ratified in parallel to the United Nations efforts (i.e. Declaration of Human Rights, etc.). There were a total of eight ILO fundamental conventions [3] all ascending between 1930 and 1973, i.e. the Freedom of Association and Protection of the Right to Organise Convention (1949).

The Go Lean book presents a roadmap on how to benefit from the above Economic Principles – and how to empower communities anew – in the midst of tumultuous global challenges. This roadmap addresses more than economics, as there are other areas of societal concern. This is expressed in the CU charter; as defined by these 3 prime directives:

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

Early in the Go Lean book, the responsibility to create jobs was identified as an important function for the CU with these pronouncements in the Declaration of Interdependence (Pages 14):

xix.  Whereas our legacy in recent times is one of societal abandonment, it is imperative that incentives and encouragement be put in place to first dissuade the human flight, and then entice and welcome the return of our Diaspora back to our shores.…

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.

xxiv. Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvi.  Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building, automobile manufacturing, prefabricated housing, frozen foods, pipelines, call centers, and the prison industrial complex. In addition, the Federation must invigorate the enterprises related to existing industries tourism, fisheries and lotteries – impacting the region with more jobs.

According to an article from the Economic Policy Institute, entitled The Decline of Collective Bargaining and the Erosion of Middle-class Incomes in Michigan by Lawrence Mishel (September 25, 2012), the challenges to middle class income are indisputable, and the previous solution – Collective Bargaining – is no longer as effective as in the past. (The industrial landscape of Michigan had previously been identified as a model for the Caribbean to consider). See a summary of the article here (italics added) and VIDEO in the Appendix:

In Michigan between 1979 and 2007, the last year before the Great Recession, the state’s economy experienced substantial growth and incomes rose for high-income households. But middle-class incomes did not grow. The Michigan experience is slightly worse than but parallels that of the United States as a whole, where middle-class income gains were modest but still far less than the income gains at the top. What the experience of Michiganders and other Americans makes clear is that income inequality is rising, and it has prevented middle-class incomes from growing adequately in either Michigan or the nation.

The key dynamic driving this income disparity has been the divergence between the growth of productivity—the improvement in the output of goods and services produced per hour worked—and the growth of wages and benefits (compensation) for the typical worker. It has been amply documented that productivity and hourly compensation grew in tandem between the late 1940s and the late 1970s, but split apart radically after 1979. Nationwide, productivity grew by 69.1 percent between 1979 and 2011, but the hourly compensation of the median worker (who makes more than half the workforce but less than the other half) grew by just 9.6 percent (Mishel and Gee 2012; Mishel et al. 2012). In other words, since 1979 the typical worker has hardly benefited from improvements in the economy’s ability to raise living standards and, consequently, middle-class families’ living standards have barely budged since then. This phenomenon has occurred across the nation, including in Michigan.

This divergence between pay and productivity and the corresponding failure of middle-class incomes to grow is strongly related to the erosion of collective bargaining. And collective bargaining has eroded more in Michigan than in the rest of the nation, helping to explain Michigan’s more disappointing outcomes.

Research three decades ago by economist Richard Freeman (1980) showed that collective bargaining reduces wage inequality, and all the research since then (see Freeman 2005) has confirmed his finding. Collective bargaining reduces wage inequality for three reasons. The first is that wage setting in collective bargaining focuses on establishing “standard rates” for comparable work across business establishments and for particular occupations within establishments. The outcome is less differentiation of wages among workers and, correspondingly, less discrimination against women and minorities. A second reason is that wage gaps between occupations tend to be lower where there is collective bargaining, and so the wages in occupations that are typically low-paid tend to be higher under collective bargaining. A third reason is that collective bargaining has been most prevalent among middle-class workers, so it reduces the wage gaps between middle-class workers and high earners (who have tended not to benefit from collective bargaining).

Collective bargaining also reduces wage inequality in a less-direct way. Wage and benefit standards set by collective bargaining are often followed in workplaces not covered by collective bargaining, at least where there is extensive coverage by collective bargaining in particular occupations and industries. This spillover effect means that the impact of collective bargaining on the wages and benefits of middle-class workers extends far beyond those workers directly covered by an agreement.
…
Source: http://www.epi.org/publication/bp347-collective-bargaining/

The siren call went out 20 years ago, of the emergence of an “Apartheid” economy, a distinct separation between the classes: labor and management. Former US Secretary of Labor Robert Reich (1993 – 1997 during the Clinton Administration’s First Term) identified vividly, in this 1996 Harvard Business Review paper, that something was wrong with the U.S. economy then; (it is worst now):

CU Blog - Economic Principles - Wage-Seeking - Market forces -vs- Collective Bargaining - Photo 3That something is not the country’s productivity, technological leadership, or rate of economic growth, though there is room for improvement in all those areas. That something is an issue normally on the back burner in U.S. public discourse: the distribution of the fruits of economic progress. For many, the rise in AT&T’s stock after it announced plans [on January 3, 1996] to lay off 40,000 employees crystallized the picture of an economy gone haywire, with shareholders gaining and employees losing as a result of innovation and advances in productivity.

Has the distribution of the benefits of economic growth in the United States in fact gone awry? Is the nation heading toward an apartheid economy—one in which the wealthy and powerful prosper while the less well-off struggle? What are the facts? What do they mean? Are there real problems—and can they be solved?
…

Deploying solutions for the problem of income equality in the Caribbean is the quest of the Go Lean/CU roadmap. The book identified Agents of Change (Page 57) that is confronting the region, (America as well); they include: Globalization and Technology. A lot of the jobs that paid a “living wage” are now being shipped overseas to countries with lower wage levels, or neutralized by the advancement of technology. Yes, computers are reshaping the global job market, so even Collective Bargaining may fail to counter any eventual obsolescence of wage-earners, their valuation and appreciation; (see Encyclopedic Article # 2). The Go Lean book, and previous blog/commentaries, therefore detailed the campaign to not just consume technology, but to also innovate, produce and distribute the computer-enabled end-products. Therefore industries relating to STEM (Science, Technology, Engineering and Mathematics/Medicine) are critical in the roadmap. Not only do these careers yield good-paying direct jobs, but also factor in the indirect job market, and the job-multiplier rate (3.0 to 4.1) for down-the-line employment (Page 260) opportunities.

The Go Lean… Caribbean book details the creation of 2.2 million new jobs for the Caribbean region, many embracing ICT/STEM skill-sets. This is easier said than done, so how does Go Lean purpose to deliver on this quest? By the adoption of certain community ethos, plus the executions of key strategies, tactics, implementations and advocacies. The following is a sample from the book:

Assessment – Puerto Rico – Extreme Unemployment – The Greece of the Caribbean Page 18
Community Ethos – Deferred Gratification Page 21
Community Ethos – Job Multiplier Page 22
Community Ethos – Anti-Bullying and Mitigation Page 23
Community Ethos – Lean Operations Page 24
Community Ethos – Return on Investments Page 24
Community Ethos – Ways to Impact the Future Page 26
Community Ethos – Ways to Foster Genius Page 27
Community Ethos – Ways to Help Entrepreneurship Page 28
Community Ethos – Ways to Promote Intellectual Property – Key to ICT Careers Page 29
Community Ethos – Ways to Impact Research and Development – Germaine for STEM jobs Page 30
Community Ethos – Ways to Close the Digital Divide – Vital for fostering ICT careers Page 31
Strategy – Mission – Education Without Further Brain Drain Page 46
Strategy – Agents of Change – Technology Page 57
Strategy – Agents of Change – Globalization Page 57
Tactical – Fostering a Technocracy Page 64
Tactical – Tactics to Forge an $800 Billion Economy – East Asian Tigers Model Page 69
Tactical – Tactics to Forge an $800 Billion Economy – High Multiplier Industries Page 70
Tactical – Tactics to Forge an $800 Billion Economy – Trade and Globalization Page 70
Tactical – Separation of Powers – Commerce Department – Patents & Copyrights Page 78
Implementation – Steps to Implement Self-Governing Entities – As Job-creating Engines Page 105
Implementation – Ways to Benefit from Globalization – Technology: The Great Equalizer Page 119
Planning – Ways to Improve Trade Page 128
Planning – Ways to Model the EU Page 130
Planning – Lessons Learned from 2008 – Income Equality Now More Pronounced Page 136
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Create Jobs Page 152
Advocacy – Ways to Improve Education – e-Learning Options Page 159
Advocacy – Ways to Impact Labor Markets and Unions – Collective Bargaining Best-Practices Page 164
Advocacy – Ways to Foster Empowering Immigration – STEM Resources Page 174
Advocacy – Ways to Foster Technology – Credits, Incentives and Investments Page 197
Advocacy – Ways to Foster e-Commerce – Optimize Remittance Methods Page 198
Advocacy – Ways to Help the Middle Class – Exploit Globalization Page 223
Appendix – Growing 2.2 Million Jobs in 5 Years Page 257
Appendix – Job Multipliers – Direct & Indirect Job Correlations Page 259
Appendix – Emigration Bad Example – Puerto Rican Population in the US Mainland Page 304

The CU will foster job-creating developments, incentivizing many high-tech start-ups and incubating viable companies. The primary ingredient for CU success will be Caribbean people, so we must foster and incite participation of many young people into fields currently sharing higher job demands, like ICT and STEM, so as to better impact their communities. A second ingredient will be the support of the community – the Go Lean movement recognizes the limitation that not everyone in the community can embrace the opportunity to lead in these endeavors. An apathetic disposition is fine-and-well; we simply must not allow that to be a hindrance to those wanting to progress – there are both direct jobs and indirect jobs connected with the embrace of ICT/STEM disciplines. The community ethos or national spirit, must encourage and spur “achievers” into roles where “they can be all they can be”. Go Lean asserts that one person can make a difference … to a community (Page 122).

Other subjects related to job empowerments for wage-seekers in the region have been blogged in other Go Lean…Caribbean commentaries, as sampled here:

https://goleancaribbean.com/blog/?p=4240 Immigration Policy Exacerbates Worker Productivity Crisis
https://goleancaribbean.com/blog/?p=3694 Jamaica-Canada employment programme pumps millions into local economy
https://goleancaribbean.com/blog/?p=3473 Haiti to Receive $70 Million Grant to Expand Caracol Industrial Park to Create Jobs and Benefit from Globalization
https://goleancaribbean.com/blog/?p=3446 Forecast for higher unemployment in Caribbean in 2015
https://goleancaribbean.com/blog/?p=3164 Michigan Unemployment Model – Then and Now
https://goleancaribbean.com/blog/?p=2857 Where the Jobs Are – Entrepreneurism in Junk
https://goleancaribbean.com/blog/?p=2800 The Geography of Joblessness
https://goleancaribbean.com/blog/?p=2750 Disney World’s example of Self Governing Entities and Economic Impacts of 70,000 jobs; 847,000+ Puerto Ricans now live in the vicinity.
https://goleancaribbean.com/blog/?p=2126 Where the Jobs Are – Computers Reshaping Global Job Market
https://goleancaribbean.com/blog/?p=2025 Where the Jobs Are – Attitudes & Images of the Caribbean Diaspora in US
https://goleancaribbean.com/blog/?p=2003 Where the Jobs Are – Ship-breaking under the SGE Structure
https://goleancaribbean.com/blog/?p=1698 Where the Jobs Are – STEM Jobs Are Filling Slowly
https://goleancaribbean.com/blog/?p=1683 Where the Jobs Were – British public sector now strike over ‘poverty pay’
https://goleancaribbean.com/blog/?p=1214 Where the Jobs Are – Fairgrounds as SGE & Landlords for Sports Leagues
https://goleancaribbean.com/blog/?p=273 10 Things We Don’t Want from the US – Job Discrimination of Immigrations

The Caribbean is arguably the best address on the planet, but “man cannot live on beauty alone”, there is the need for a livelihood as well. This is the challenge, considering the reality of unemployment in the region; the jobless rate among the youth is even higher.

The crisis of income inequality for the US is a direct result of free trade agreements, like NAFTA, and China’s Preferential Trading Status. Despite this status, we can benefit from the realities of globalization; jobs are being moved to conducive locations with lower labor costs.  We should invite these investors to look for cheaper labor options, here in the Caribbean region (Haiti, Dominican Republic, Jamaica, etc.). This is the same reality as in Europe with different wage levels for the different countries (see Appendix below); the Caribbean also has these wage differences.

The Go Lean roadmap seeks to foster higher-paying job options: Call Centers, Offshore Software Development Centers, R&D Medical campuses, light-manufacturing and assembly plants for “basic needs” products (food, clothing shelter, energy, and transportation) for Caribbean consumption. This is the successful model of Japan, China and the “East Asia Tigers” economies; these are manifestations of effective Economic Principles.

The Go Lean book therefore digs deeper, providing turn-by-turn directions to get to the desired Caribbean results: a better place to live, work and play. 🙂

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

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Appendix – List of European countries by average wage (USA & Japan added for comparison)

(Source: https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage)

2014 Annual values (in national currency) for a family with two children with one average salary, including tax credits and allowances.[1] Net amount is computed after Taxes, Social Security and Family Allowances; the result is provided in both the National Currency and the Euro, if different. The table, sorted from highest Net amount to the lowest, is presented as follows:

State Gross Net (Natl. Curr) Net (Euro)
Switzerland 90,521.98 86,731.20 71,407.21
Luxembourg 54,560.39 52,041.36 52,041.36
Norway 542,385.96 415,557.87 49.,741.20
Denmark 397,483.78 289,292.48 38,806.20
Iceland 6,856,099.69 5,872.114.66 37,865.07
UNITED STATES 56,067 45,582 37,671
Sweden 407,974.45 335,501.45 36,874.37
Netherlands 48,855.70 36,648.71 36,648.71
United Kingdom 35,632.64 28,960.38 35,925.65
Belgium 46,464.41 35,810.55 35,810.55
Italy 41,462.67 24,539.93 35,539.93
Germany 45,952.05 36,269.23 35,269.23
France 38,427.35 30,776.75 34,776.75
Ireland 34,465.85 34,382.63 34,382.63
Austria 42,573.25 33,666.04 33,666.04
Finland 42,909.72 32,386.59 32,386.59
JAPAN 4,881,994.24 4,132.432.02 29,452.16
Spain 26,161.81 22,129.78 22,129.78
Greece 24,201.50 17,250.24 17,250.24
Slovenia 17,851.28 15,882.53 15,882.53
Portugal 17,435.71 15,140.25 15,140.25
Estonia 12,435.95 11,176.87 11,176.87
Czech Republic 312,083.83 306,153.76 11,118.31
Slovakia 10,342.10 9,778.16 9,778.16
Poland 42,360.01 34,638.77 8,278.27
Hungary 3,009,283.93 2,530.280.97 8,196.30
Turkey 28,370.00 21,072.12 7,250.00

————-

Appendix Video – Collective Bargaining and Shared Prosperity: Michigan, 1979 – 2009 http://youtu.be/PcT4jK89JmE

Published on September 27, 2012 – This VIDEO depicts the positive effects of Collective Bargaining on the quest for income equality in the US State of Michigan; and the sad consequence of the widening income inequality when Collective Bargaining is less pervasive.
This reflect the “Observe and Report” functionality of the Go Lean…Caribbean promoters in the Greater Detroit-Michigan area.

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Miami’s Caribbean Marketplace Revisited – ENCORE

Posted on December 8, 2017 in Locations, Social

It’s time to celebrate all things Miami – during Miami Art Week 2017 – so that includes all the Caribbean Diaspora that adds to the fabric of this international metropolis and makes it a Magic City.

Spanish, Haitian, Indian Jamaican, Black/White Cuban or Asian … – Lyrics from song “Welcome to Miami” by Rapper Will Smith; featured in the VIDEO below.

Just look at this place now; in all of its glory!

This is the perfect time to encore this following – original blog-commentary – from July 20, 2014 when the Miami Caribbean Marketplace was re-opened in Little Haiti:

—————

Go Lean Commentary – Miami’s Caribbean Marketplace Re-opens

Make no mistake: having a warm welcome in a City of Refuge is not as good as being safe and secure at home. Yet, when conditions mandate that one take flight, a warm welcome is greatly appreciated.

According to the foregoing article, the City of Miami now extends a warm welcome … to the Caribbean Diaspora. While Miami profits from this embrace, the benefits for the Caribbean are not so great.

This is the American Immigrant experience, one of eventual celebration, but only after a “long train of abuses”: rejection, anger, protest, bargaining, toleration and eventual acceptance. The experience in Miami today is one of celebration.

The book Go Lean…Caribbean champions the cause of retaining Caribbean citizens in the Caribbean, even inviting the Diaspora back to their homelands. So the idea of celebrating a cultural contribution at a center in a foreign land is a paradox. Yes, we want the positive image, but no, we do not want to encourage more assimilation in the foreign land.

However, the book declares: It is what it is!

The book serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU), a technocratic federal government to administer and optimize the economic/security/ governing engines in the homeland of the region’s 30 member-states. The CU strives to elevate Caribbean image at home and abroad. There are many empowerments in the roadmap for the far-flung Diaspora to improve the interaction with the Caribbean community. So the cultural center in the foregoing article is germane to the Go Lean discussion.

The entire article is listed as follows:

CU Blog - Miami's Caribbean Marketplace Re-opens - Photo 1 Sub-title: The Caribbean Marketplace has become a cultural icon in the Little Haiti community and re-opens with much fanfare….

By: Fabiola Fleuranvil | Noire Miami

The long awaited re-opening of the Caribbean Marketplace (CMP) is back as a cultural marker in the vibrant Little Haiti community. For years, the venue has been a strong figure along Little Haiti’s main corridor and has been easily identified by its bright colors and vibrant activity of vendors as well as Haitian and Caribbean culture. After undergoing a lengthy renovation to transform this cultural gem into a community staple for unique arts and crafts, Caribbean culture, special events, and community events, the highly anticipated reopening positions the Caribbean Marketplace as a vibrant addition to the Little Haiti Cultural Center next door and the burgeoning arts and culture spirit in Little Haiti.

The re-establishment of this Marketplace is a collaborative effort of the City of Miami in partnership with the Miami-Dade Department of Cultural Affairs, the Little Haiti Cultural Complex (LHCC), the Northeast Second Avenue Partnership (NE2P) and District 5 Commissioner Keon Hardemon.

The 9,500-square-foot space includes a refreshment and concession area, gift shops, arts and crafts, retail vendors and space available for private events. The renovations reflect the beautiful diversity of the Caribbean. Low rates, technical and marketing assistance will be provided to all vendors. It is anticipated that new businesses will be created in this cultural hub, resulting in employment opportunities for the local community.

Physical Address for the Caribbean Marketplace: 5925   NE 2nd Ave, Miami (Besides the Little Haiti Cultural Center) Hours: Thursday – Sunday, 11AM – 11PM
Miami Herald Daily Newspaper  (Retrieved 07-16-2014) –
http://www.miami.com/little-haiti039s-caribbean-marketplace-reopens-article

The Miami community is doing even more to embrace the exile populations in its metropolis, (including jurisdictions up to West Palm Beach). They have declared an entire month (June) for celebrating Caribbean communities; the term “month” is a loose definition, it starts in the Spring and forwards deep into the Summer. The following is a sample of events planned for this year (2014).

Caribbean-American Heritage “Month” events around South Florida:

CU Blog - Miami's Caribbean Marketplace Re-opens - Photo 2

3rd Annual Colors of the Caribbean

Saturday, June 14, 4PM – 11PM – Hollywood Arts Park – Hollywood Blvd & US1

What do you get when you blend the diverse, authentic ingredients of the Caribbean? You get a Caribbean inspired day of food, arts and culture, entertainment and irie vibes. Colors of the Caribbean features: Junkanoo procession, Moko Jumbies (Stilt walkers), Steelpan music, and live performances by Wayne Wonder (Jamaica), Midnite (Virgin Islands), Kevin Lyttle (St Vincent), Harmoniq (Haiti), music by DJ Majestic (DC/Trinidad & Tobago), and more.

AllSpice: Flavors of the Caribbean

Friday, June 20, 6PM – 10PM – Borland Center, 4885PGABlvd,Palm BeachGardens

The Caribbean Democratic Club of Palm Beach County presents a Taste of the Caribbean in celebration of Caribbean American Month.

Caribbean Style Week

June 23-29 – Westfield Mall Broward, 8000 West Broward Blvd, Plantation

The Caribbean American Heritage Foundation hosts a week-long showcase featuring both popular and upcoming Caribbean fashion designers and brands. Fashion pieces will be available for purchase during the fashion expo.

Caribbean Heritage Month Travel Experience/Travel Expo

June 28-29 – Westfield Mall Broward, 8000 West Broward Blvd, Plantation

The Caribbean Travel Expo celebrates and promotes each individual as a destination for your next vacation. The expo experience will also showcase live music, cultural performances, and special surprise giveaways over the weekend.

Caribbean: Crossroads of the World Exhibit

April 18 – Aug 17 – PerezArt MuseumMiami (PAMM), 1103 Biscayne Blvd, Miami

Highlighting over two centuries of rarely seen works — from paintings and sculptures to prints, photographs, installations, films, and videos — dating from the Haitian Revolution to the present, this exhibition advances our understanding of the Caribbean and its artistic heritage and contemporary practices.
http://www.miami.com/caribbean-american-heritage-month-events-around-south-florida-article)

The Go Lean…Caribbean clearly recognizes the historicity of Cuban and Afro-Caribbean (Haitian, Jamaican, Dominican, Bahamian, etc) exiles in Miami. They went through the “long train of abuses”. But today, their communities dominate the culture of South Florida, resulting in a distinctive character that has made Miami unique as a travel/tourist destination; see VIDEO below. The expression “take my talents to South Beach” now resonates in American society.

This commentary previously featured subjects related to the Caribbean Diaspora in South Florida. The following here is a sample:

https://goleancaribbean.com/blog/?p=1433 Caribbean loses more than 70 percent of tertiary educated to brain drain
https://goleancaribbean.com/blog/?p=1148 Sports Bubble – Franchise values in basketball
https://goleancaribbean.com/blog/?p=689 eMerge conference aims to jump-start Miami   tech hub
https://goleancaribbean.com/blog/?p=235 Tourism’s changing profile

At the outset, the Go Lean roadmap recognizes the value and significance of Cuban and Haitian exile communities in the pantheon of Caribbean life. Any serious push for Caribbean integration must consider Diaspora communities, like the Cuban/Haitian exiles in Miami. This intent was pronounced early in the book with these statements in the Declaration of Interdependence (Pages 12 & 13):

xiii.      Whereas the legacy of dissensions in many member-states (for example: Haiti and Cuba) will require a concerted effort to integrate the exile community’s repatriation, the Federation must arrange for Reconciliation Commissions to satiate a demand for justice.

xix.      Whereas our legacy in recent times is one of societal abandonment, it is imperative that incentives and encouragement be put in place to first dissuade the human flight, and then entice and welcome the return of our Diaspora back to our shores. This repatriation should be effected with the appropriate guards so as not to imperil the lives and securities of the repatriated citizens or the communities they inhabit. The right of repatriation is to be extended to any natural born citizens despite any previous naturalization to foreign sovereignties.

xx.      Whereas the results of our decades of migration created a vibrant Diaspora in foreign lands, the Federation must organize interactions with this population into structured markets. Thus allowing foreign consumption of domestic products, services and media, which is a positive trade impact. These economic activities must not be exploited by others’ profiteering but rather harnessed by Federation resources for efficient repatriations.

It was commonly accepted that Cuban exiles and other Caribbean Diaspora were sitting, waiting in Miami for change in their homelands; then they would return to claim their earned positions of respect. Along the way, the Survive-then-Thrive strategy was supplanted with a new Thrive-in-America strategy – credited to the next generation’s assimilation of the American Dream and the long duration of Caribbean dysfunctions, i.e. the Castros still reign after 55 years. Miami subsequently emerged as the trading post for the Caribbean and all of Latin America. The Caribbean is now hereby urged to lean-in to the community ethos, strategies, tactics, implementations and advocacies to finally re-boot Caribbean society; as detailed in the book Go Lean … Caribbean sampled here:

Community   Ethos – Economic Systems Influence Individual Choices & Incentives Page 21
Community   Ethos – Voluntary Trade Creates Wealth Page 21
Community   Ethos – Anti-Bullying and Mitigation Page 23
Community   Ethos – Minority Equalization Page 24
Community   Ethos – Lean Operations Page 24
Community   Ethos – Return on Investments Page 24
Community   Ethos – Ways to Impact Turn-Arounds Page 33
Community   Ethos – Ways to Manage Reconciliations Page 34
Community   Ethos – Ways to Impact the Greater Good Page 37
Strategic – Vision – Integrating Region in to a Single Market Page 45
Strategic – Agents of Change – Globalization Page 57
Tactical – Fostering a Technocrary Page 64
Tactical – Separation of Powers – State Department – Culture Administration Page 81
Tactical – Separation of Powers – Federal Courts – Truth & Reconciliation Commissions Page 90
Implementation – Ways to Pay for Change Page 101
Implementation – Foreign Policy Initiatives at Start-up Page 102
Implementation – Ways to Deliver Page 109
Implementation – Trade Mission Objectives Page 117
Implementation – Reasons to Repatriate Page 118
Implementation – Ways to Benefit from Globalization Page 119
Planning – 10 Big Ideas – Cuba/Haiti Page 127
Planning – Ways to Make the Caribbean Better Page 131
Advocacy – Ways to Grow the Economy Page 151
Advocacy – Ways to Impact the Diaspora Page 217
Advocacy – Ways to Preserve Caribbean Heritage Page 218
Advocacy – Ways to Improve the Arts Page 230
Advocacy – Ways to Promote Music Page 231
Advocacy – Ways to Re-boot Cuba Page 236
Advocacy – Ways to Re-boot Haiti Page 238

The foregoing article addresses the story of the Caribbean Marketplace facility to promote Caribbean culture in the South Florida market, and even provide some economic benefits (trade, job, import/export options). The Go Lean book focuses on these economic issues to the Nth degree, and also addresses the important issues regarding Caribbean societal elevation: music, sports, art, education, repatriation and heritage. This cultural center in the foregoing article aligns with the Go Lean roadmap.

Just like Miami grew, and prospered so much over the last 50 years, with help from our people, the Caribbean can also be a better place to live, work and play. This is a new day for the Caribbean!

It’s time now for change; not just change for change sake, but the elevations that were identified, qualified and proposed in the book Go Lean…Caribbean. It’s time to lean-in. Then we can move from celebrating the Diaspora in a foreign land to celebrating their return to the Caribbean, the best address in the world.

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

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

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Industrial Reboot – Frozen Foods 101

Posted on October 7, 2017 in Economics, Industries, Strategy

Go Lean Commentary

We gotta eat!

In that fact lies a key business model for growing the Caribbean industrial landscape: Jobs and entrepreneurial opportunities can be created by fostering peripheral industries for food distribution that is under-represented currently.

What kind of new jobs? What kind of new industries? Try:

Frozen Foods

CU Blog - Industrial Reboot - Frozen Food 101 - Photo 2c

CU Blog - Industrial Reboot - Frozen Food 101 - Photo 2d

CU Blog - Industrial Reboot - Frozen Food 101 - Photo 2a

CU Blog - Industrial Reboot - Frozen Food 101 - Photo 2b

The Bottom Line on Flash Freezing
Flash freezing (blast freezing) is used in the food industry to quickly freeze perishable food items. In this case, food items are subjected to temperatures well below water’s melting/freezing point (cryogenic temperatures), causing the water inside the foods to freeze in a very short period without forming large crystals, thus avoiding damage to cell membranes. Freezing food preserves it from the time it is prepared to the time it is eaten. CU Blog - Industrial Reboot - Frozen Food 101 - Photo 1This process slows down decomposition by turning residual moisture into ice, inhibiting the growth of most bacterial species. Frozen products do not require any added preservatives because microorganisms do not grow when the temperature of the food is below -9.5°C (14.9ºF); this is sufficient to prevent food spoilage. But Carboxymethyl-cellulose (CMC) or cellulose gum (a cellulose derivative) is often used as a viscosity modifier or thickener, and to stabilize emulsions in various products, including ice cream. It is often used as its sodium salt. CMC is a tasteless/odorless stabilizer, typically added to frozen food as it does not adulterate the quality.

American inventor Clarence Birdseye developed the quick freezing process of food preservation in the early 20th century. This process was further developed by American inventor Daniel Tippmann by producing a vacuum and drawing the cold air through palletized food. His process has been sold and installed under the trade name “Quick-Freeze” and enables blast freezing of palletized food in 35% less time than conventional blast freezing.
Source: Book Go Lean…Caribbean Page 208

A venture into Frozen Foods is about more than just food, it is about culture. Consider the proliferation of Frozen Foods in these cultures:

  • Italian
  • Mexican
  • Chinese

It is the assessment of this commentary that the Caribbean is the greatest destination on the planet; this applies to the terrain, fauna and flora; just think of our paradasaic beaches. Culturally, we have the best cuisine, rums, cigars and festivals. We also have the best in hospitality, just think of our luxurious hotel-resorts and cruise ships. Now to mix all of this greatness into a frozen entree and export it to the rest of the world. See here this VIDEO on the basics of Frozen Foods versus Fresh Food.

VIDEO – Fresh vs Frozen Food – https://youtu.be/zjsOOT347cA

AsapSCIENCE

Published on Nov 7, 2013 – Which is more nutritious – Fresh or Frozen?

Written and created by Mitchell Moffit (twitter @mitchellmoffit) and Gregory Brown (twitter @whalewatchmeplz).

Further Reading — Overview on Fresh vs Frozen: http://www.livestrong.com/article/710…

Comparing Multiple Nutrional Factors: http://onlinelibrary.wiley.com/doi/10…http://onlinelibrary.wiley.com/doi/10… Vitamin C Comparison: http://www.sciencedirect.com/science/… Antioxidant Content: http://www.sciencedirect.com/science/…

How do we go about doing this, developing a Frozen Foods industry so as to reboot the Caribbean industrial landscape and create the new jobs our region needs for future growth?

The movement behind the book Go Lean … Caribbean asserts that it is possible to reboot the business eco-system of the region so as to create jobs and has presented a roadmap for the goal of 2.2 million new jobs. But the book warns that this task is heavy-lifting to be successful. The entire industrial landscape must be rebooted. There is now a catalog for this Industrial Reboot 101. This commentary is 4 of 4 in the occasional series considering the Industrial Reboots. The full series is as follows:

  1. Industrial Reboot – Ferries 101 – Published June 27, 2017
  2. Industrial Reboot – Prisons 101 – Published October 4, 2017
  3. Industrial Reboot – Pipeline 101 – Published October 6, 2017
  4. Industrial Reboot – Frozen Foods 101

In a previous blog-commentary, it detailed how diverse food delivery systems can contribute to the economy of a new Caribbean; many new jobs are to be created. The summarized quotation states:

This roadmap projected these jobs for food-related industries: 30,000 in direct agriculture; 4,000 in direct Fisheries; and 2,000 related to Frozen Foods.

Yes, fostering an industry for Frozen Foods can allow Caribbean stewards to reboot the industrial landscape. Imagine a network of self-regulated, resilient refrigerated warehouses.

But refrigeration requires steady-reliable power, right? Hurricanes are now more prevalent and more disruptive, right?

Since landfalls of hurricanes in a Caribbean island can easily wipe out electricity distribution systems – the 2 recent hurricanes of Irma and Maria in September 2017 caused total devastation in some member-states, i.e. Barbuda – it seems vain to introduce a Frozen Foods business eco-system …

… unless remediation and mitigation is first put in place to optimize power-energy solutions.

The Go Lean book presents a complex plan for energy optimizations. Many solutions were presented in these Go Lean blog-commentaries:

We need an inter-island power grid The Go Lean roadmap proposes many solutions for a regional grid to optimize energy:

  • generation – Green options (solar, wind turbines, hydro, tidal and natural gas)
  • distribution – Underwater cables to connect individual islands
We need alternative energy Rather than just limiting power to come from the grid, the Caribbean industrial landscape needs to embrace “Green” alternative on-site options (solar, wind and tidal), efficient battery back-ups, fuel cells and generators.
We need collective refrigeration This refers to the leveraging of a cooling/heating scheme that provides the needed refrigeration for a limited district, not just one building.
We need pipelines Over-ground, underground and underwater pipelines can help sustained refrigerated warehouses during natural disasters … and can help to quickly restore power and the systems of commerce.
We need cheaper energy costs The roadmap promotes natural gas as the preferred fuel for power generation; it is much cheaper than petroleum or coal options.
We need Self-Governing Entities SGE’s are bordered campuses that designates the exclusivity of the commercial, security and administration to federal governance, above-and-beyond the member-states.

The book Go Lean … Caribbean purports that a new technology-enhanced industrial revolution is emerging, in which there is more efficiency for power generation, distribution and storm recovery. This is a vision of economic resiliency. This vision was pronounced early in the book with this Declaration of Interdependence (Pages 11 – 14), with these statements:

i. Whereas the earth’s climate has undeniably changed resulting in more severe tropical weather storms, it is necessary to prepare to insure the safety and security of life, property and systems of commerce in our geographical region. As nature recognizes no borders in the target of its destruction, we also must set aside border considerations in the preparation and response to these weather challenges.

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of … frozen foods … impacting the region with more jobs.

xxx. Whereas the effects of globalization can be felt in every aspect of Caribbean life, from the acquisition of food and clothing, to the ubiquity of ICT, the region cannot only consume, it is imperative that our lands also produce and add to the international community, even if doing so requires some sacrifice and subsidy.

xxxii. Whereas the cultural arts … of the region are germane to the quality of Caribbean life, and the international appreciation of Caribbean life, the Federation must implement the support systems to teach, encourage, incentivize, monetize and promote the related industries … These endeavors will make the Caribbean a better place to live, work and play.

This Go Lean book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) to elevate the 30 Caribbean member-states. This Federation will assume jurisdiction for the Exclusive Economic Zone (EEZ) and all Self-Governing Entities (SGE’s). This approach allows for effective and efficient management of bordered campuses where facilities can be deployed for refrigerated warehouses – with their own power-energy eco-systems. This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs.
  • Establishment of a security apparatus to ensure public safety and protect the resultant economic engines, even for emergencies.
  • Improvement of Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

The facilitations for Caribbean food can lead to a reboot of the industrial landscape. The above referenced 36,000 new jobs can lead to additional indirect jobs: 135,000. That makes for a total of 171,000 new jobs. We should all welcome this Industrial Reboot.

Bad Model: There is one Jamaican transnational company that distributes Frozen Foods, but all of their processes is done in their US home, in New Jersey. 🙁

The subject of Caribbean Food has also been addressed and further elaborated upon in these previous blog/commentaries:

https://goleancaribbean.com/blog/?p=10369 Science of Sustenance – Temperate Foods
https://goleancaribbean.com/blog/?p=8982 GraceKennedy: A Caribbean Transnational “Food” Company
https://goleancaribbean.com/blog/?p=5098 Forging Change: ‘Food’ for Thought
https://goleancaribbean.com/blog/?p=3594 Lessons Learned from Queen Conch – A Caribbean Delicacy

The Go Lean book provides 370 pages of details on the economic principles and community ethos to adopt, plus the executions of strategies, tactics, implementations and advocacies to develop this industry and product offering in the Caribbean. The economic principles of the Frozen Foods pipelines are sound.

“How” would the Caribbean region reboot, reform and transform their societal engines to develop a Frozen Foods industry. This is the actual title of one advocacy in the Go Lean book. Consider the specific plans, excerpts and headlines here from Page 208, entitled:

10 Ways to Develop a Frozen Foods Industry

1

 Lean-in for the Caribbean Single Market The CU will allow for the unification of the region into one market, thereby creating a single economy of 30 member-states, 42 million people (plus a Diaspora of 8 million) and a GDP of over $800 Billion. The CU will take the lead in facilitating the food supply and distribution systems to ensure the region can feed itself, more from local production and less from trade. Modeling Omaha-based ConAgra Foods, the CU will work to shift the Balance of Trade to where more food supplies are exported and less imported. Where as many North American and EU countries place restrictions on Caribbean fresh produce (for example, no citrus), if foods are already prepared and frozen (or canned), those restrictions no longer apply.

2

 Adopt Co-ops for Freezer WarehousesThe CU will sponsor cooperatives and condominium associations to construct and maintain refrigerated warehouses, with power alternatives, to facilitate the logistics of frozen products – for trading partners in agriculture and fisheries.

3

 Ensure Energy SecurityThe CU will deploy a regional power grid, which would not have been feasible without the unified market. This advance configuration will supply supplemental power to each member state, on demand as the need arises. This proliferation of energy will foster the business environment to promote and develop freezer warehouses, thereby mitigating risks.

4

 Supply Needs for Fisheries

5

 Encourage Incubators & EntrepreneurshipA lot of the infrastructure to supply the demand for Caribbean-flavored frozen foods does not currently exist. The CU will incentivize private enterprises to develop this industry. Business incubators, and entrepreneur development programs are sure-fire ways to build this industry, support their development through an array of support resources and services. The CU will spur interest with an appropriate tax policy, rebates, loans, and access to credit.

6

 Capital Markets & IPOs

7

 Nouvelle Caribbean CuisineThe Caribbean Cuisine is part of the charm of island life, but there is the need for reform to promote a healthier lifestyle and foster local economies. Frozen foods are effective for this strategy. There is minimal lost of freshness for the produce that is unique to the Caribbean (i.e. Ackee, Sugar-Apple). These foods, with lower fat/salt – from frozen sources – will be promoted in the local media for their benefits and adherence to Caribbean style, so as to grow the demand.

8

 Food Shows – Creating Demand Locally and in the Diaspora

9

 Diaspora Exports – Caribbean Fruits & VegetablesMany fruits and vegetables in the Caribbean are tropical and unique to the region. The far flung Diaspora maintains their taste and demand for Caribbean food products. By preparing and freezing foods it will bypass many of the agricultural restrictions that foreign governments impose. Exporting to the Diaspora market adds a sizeable volume.

10

 Optimizing Imports – Labeling – RepackagingThe Frozen Foods strategy also has bearing on food imports. The CU labeling requirement may be different than the host country – the CU will mandate food labeling regulation to identify all active ingredients and their nutritional content. (The US plays “games”). The practice of blast freezing palletized foods may have to be used, for local re-packaging.

In summary, we need jobs; our Caribbean job creation dysfunction is acute. New jobs in the Frozen Foods industry can be stable, reliable and providential to facilitate growth in the economy. The infrastructural enhancements for refrigerated warehouses through out the Caribbean region would help us to expand our food exports and help us to expand our industrial landscape for other industries and other job-creating initiatives.

There is a viable export market for our Caribbean Frozen Food providers: 10 to 25 million Caribbean people in the Diaspora.

Yes, we can … reboot our industrial landscape and expand our food productions and exports. We can create new jobs – and other economic opportunities – that the Caribbean region needs. We urge all Caribbean stakeholders – governments, companies and consumers – to lean-in to this roadmap for economic empowerment. We can make all of the Caribbean homeland better places to live, work and play. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

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Industrial Reboot – Prisons 101

Posted on October 4, 2017 in Economics, Industries, Strategy

Go Lean Commentary

Want to create jobs? “Go to jail; go directly to jail”.

The book Go Lean … Caribbean (Page 23) makes this realistic disclosure:

“Bad Actors” will [always] emerge … to exploit the opportunities, with good, bad and evil intent.

The book continues this theme and relates that there can be economic benefits if communities foster the industries around prisons – consider the SuperMax in the Appendix below – and incarcerating “bad actors”, especially “bad actors” that are the responsibility of other jurisdictions. This is a business model, a Prison Industrial Complex, in which the landlord-host gets paid from the responsible jurisdictions. Business model refers to jobs, entrepreneurial opportunities, trade transactions, etc.

CU Blog - Industrial Reboot - Prisons 101 - Photo 1The Go Lean book details that the Caribbean can create …

12,000 direct jobs for prison guards, administrators, supply logistics, and private protection

While these are direct jobs, there is also the reality of indirect jobs – unrelated service and attendant functions – that at a 3.75 multiplier rate would add another 45,000 jobs.

The book Go Lean…Caribbean – available to download for free – serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU); this is a confederation of all 30 member-states to execute a reboot of the Caribbean eco-system. This CU/Go Lean roadmap has these 3 prime directives:

  • Optimization of the economic engines in order to grow the regional economy to $800 Billion and create 2.2 million new jobs.
  • Establishment of a security apparatus to ensure public safety and protect the resultant economic engines.
  • Improvement of Caribbean governance to support these engines, including a separation-of-powers between the member-states and CU federal agencies.

There is the need for this reboot right now! In the last weeks – September 2017 – the Caribbean region has been beset by 2 major hurricanes, Irma and Maria. The devastation in some member-states has been so complete – i.e. remember Barbuda – that they have had to send their prisoners to foreign facilities, (still within the Caribbean). Consider the news article here, relating this actuality:

Title: St Lucia willing to accept up to 40 foreign prisoners: National Security Minister

CU Blog - Industrial Reboot - Prisons 101 - Photo 2The National Security Minister, Senator Hermangild Francis has sought to downplay reports that the prisoners brought to St Lucia from the hurricane-ravaged Caribbean islands are high risk.

“People are saying high risk. I have not seen anything indicating that they are high risk. All I’ve been told is that they’re prisoners that needs shelter. So we have accepted to house as many as we could,” Francis asserted.

Seven prisoners from the British Virgin Islands arrived in St Lucia Tuesday along with three others from the Turks and Caicos Islands, bringing to 17 the total number of criminals currently being jailed on the island from the BritishOverseasTerritories, the National Security Minister confirmed.

The first group of seven prisoners arrived at the HewanorraInternationalAirport onboard a British military aircraft on Monday.

It’s unclear what crimes the prisoners were convicted of in their countries or how long will they be kept in St Lucia.

Francis could not confirm whether that would be the final batch.

He said St Lucia is willing to accommodate up to 40 prisoners given that the current low occupancy level at Bordelais Correctional Facility.

The National Security Minister said Tuesday’s transfer of prisoners was carried out “better” than the day before.

The men are being housed in a segregated unit of the Bordelais Correctional Facility, away from local prisoners, Francis said.

The Minister said he plans to visit the prison on Friday.

Source: Posted September 27, 2017; retrieved October 3, 2017 from: https://stluciatimes.com/2017/09/27/st-lucia-willing-accept-40-foreign-prisoners-national-security-minister

Related Story: “Most dangerous” BVI prisoners transferred to St Lucia; reports – Posted September 29, 2017; retrieved October 3, 2017 from: https://stluciatimes.com/2017/09/29/dangerous-bvi-prisoners-transferred-st-lucia-reports

CU Blog - Industrial Reboot - Prisons 101 - Photo 3

Hurricanes are “bad actors” too.

Having a Caribbean Prison Industrial Complex fully functional at this time would have impacted the region’s societal engines: economic, security apparatus and governing administrations. We need this Go Lean/CU roadmap NOW!

The Go Lean book stresses that reforming and transforming the Caribbean societal engines must be a regional pursuit. This was an early motivation for the roadmap, as pronounced in the opening Declaration of Interdependence (Pages 12 – 13):

x. Whereas we are surrounded and allied to nations of larger proportions in land mass, populations, and treasuries, elements in their societies may have ill-intent in their pursuits, at the expense of the safety and security of our citizens. We must therefore appoint “new guards” to ensure our public safety and threats against our society, both domestic and foreign. The Federation must employ the latest advances and best practices of criminology and penology to assuage continuous threats against public safety. The Federation must allow for facilitations of detention for convicted felons of federal crimes, and should over-build prisons to house trustees from other jurisdictions.

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xvi. Whereas security of our homeland is inextricably linked to prosperity of the homeland, the economic and security interest of the region needs to be aligned under the same governance. Since economic crimes … can imperil the functioning of the wheels of commerce for all the citizenry, the accedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdictions.

xxiv.  Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvi.  Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of … the prison industrial complex. In addition, the Federation must invigorate the enterprises related to existing industries like tourism, fisheries and lotteries – impacting the region with more jobs.

Accordingly, the CU will facilitate the eco-system for Self-Governing Entities (SGE), an ideal concept for prisons, with its exclusive federal regulation/promotion activities. Imagine a bordered campus – with a combination of fencing, walls and/or moats/canals – that designates the exclusivity of the commercial, security and administration to superlative governance above the member-states. With an approved “Action Plan”, the comings-and-goings would not be up to debate of local authorities.

The Go Lean movement (book and blogs) details the principles of SGE’s and job multipliers, how certain industries are better than others for generating multiple indirect jobs down the line (or off-campus) for each direct job on the SGE’s payroll. In a previous blog-commentary, it was related how one industry – shipbuilding – was perfectly suited for the Caribbean, as long as the structure was an independent “Shipyard”/SGE. That commentary asserted how 60,000 new jobs can easily be facilitated.

This is transforming! This is the vision of an industrial reboot! This is where and how the jobs are to be created.

But do the exploitations of the Prison Industrial Complex put security at risk for Caribbean communities?

No. Not if the deployments are done right!
(See the reality of “Life in a SuperMax” Prison facility in the Appendix VIDEO below).

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to reboot, reform and transform the societal engines of Caribbean society. One advocacy in rebooting the industrial landscape is to foster a Prison Industrial Complex; consider the  specific plans, excerpts and headlines from the book on Page 211 entitled:

10 Ways to Impact the Prison Industrial Complex

1

 Lean-in for the Caribbean Single Market
This will allow for the unification of the region into one market of 42 million people across 30 member-states with a GDP of $800 Billion (2010 figures). In addition, the treaty calls for a collective security pact allowing the implementation of a prison system to detain convicts of CU federal offenses (i.e. economic and military crimes). The CU will over-build these facilities for more than just federal prisoners, but also to house inmates for other jurisdictions. Directly, there is a huge economic impact, starting with jobs (law enforcement and support personnel), and the construction industry to build the prisons. Indirectly, the spin-off in the local communities has a multiplier effect. This industry will generate direct income for the CU.

2

 Invite and Repatriate Prisoners
The CU will petition host countries to return incarcerated members of the Caribbean Diaspora – for a fee – since they are guilty of crimes committed in those host countries. But the cost of incarceration can be lower in the CU region compared to North American and European venues, because of the ideal weather. The next leap is to offer to house other prisoners in an outsourcing arrangement for the foreign host countries – this is classic Prison Industrial Complex.

3

 Impact Rural Communities

4

 In-source for Local Governments
The member-states can embrace the CU’s Prison Industrial Complex to satisfy their own needs, both penal and labor. With economies-of-scale, they can out-source their own trustees to the CU to minimize their direct costs. In addition, the CU will manage the process of providing prison labor for public endeavors, i.e. license plates and document scanning.

5

 Supply Prison Labor Needs

6

 Build Employable Skill-Sets

7

 Reduce Recidivism

8

 Gathering Intelligence on Probation Trustees and Parolees

9

 Prepare for Escalations and Emergencies
The security needs of the region are paramount, even in the case of emergencies. The CU region must allow for the systemic risks of natural disasters (hurricanes and earthquakes) in the vicinity of maximum security prisons. The risk mitigation plan must allow for tactical response/SWAT units, riot squads, and military readiness to suppress uprisings.

10

 Learn from Peonage Past and Ensure Corporate Governance

There have been a number of blog-commentaries by the Go Lean movement that highlighted economic opportunities embedded in regional homeland security initiatives. See a sample list here:

https://goleancaribbean.com/blog/?p=13126 “Must Love Dogs”  – Providing K9 Solutions for Better Security
https://goleancaribbean.com/blog/?p=12400 Accede the Caribbean Arrest Treaty
https://goleancaribbean.com/blog/?p=9072 Model: Shots-Fired Monitoring – Securing the Homeland on the Ground
https://goleancaribbean.com/blog/?p=2782 Model: ‘Red Light Traffic Cameras’ for Public Safety & Profits
https://goleancaribbean.com/blog/?p=1832 Model: Opportunities as US Deports More Drug-arrested Inmates
https://goleancaribbean.com/blog/?p=1674 Model: $3.7 Billion for US Detention Centers

In summary, we need jobs; our Caribbean job creation dysfunction is acute. While not glamorous, Prison Industrial Complex jobs are stable, reliable and providential. They would help us to make our homeland a better place to live, work and play.

But this is only 57,000 (12,000 + 45,000) jobs. The Go Lean/CU vision is for 2.2 million new jobs. Where and how can this new technocracy expect to create those jobs, while the existing regimes of the Caribbean region cannot accomplish this now?

Industrial Reboot!

But the Go Lean book describes the process as “difficult”, no ABC-123. Rather it is heavy-lifting! Yet there are some basics that must be embraced; these basics can be catalogued as an “Industrial Reboot 101”. This commentary is 2 of 4 in an occasional series considering Industrial Reboots. The full series is as follows:

  1. Industrial Reboot – Ferries 101
  2. Industrial Reboot – Prisons 101
  3. Industrial Reboot – Pipeline 101
  4. Industrial Reboot – Frozen Foods 101

Yes, we can … reboot our industrial landscape. It is possible to create the new jobs – and other economic opportunities – that the Caribbean region needs. We urge all Caribbean stakeholders – governments and citizens – to lean-in to this roadmap for economic empowerment. We can make all of the Caribbean homeland better places to live, work and play. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

————

Appendix Title: SuperMax Prison

Supermax (short for: super-maximum security) is a primarily U.S. English term used to describe “control-unit” prisons, or units within prisons, which represent the most secure levels of custody in the prison systems of certain countries. The objective is to provide long-term, segregated housing for inmates classified as the highest security risks in the prison system—the “worst of the worst” criminals—and those who pose a threat to both national and global security.[1]

CU Blog - Industrial Reboot - Prisons 101 - Photo 4a

CU Blog - Industrial Reboot - Prisons 101 - Photo 4b

History
CU Blog - Industrial Reboot - Prisons 101 - Photo 5The United States Penitentiary Alcatraz Island, opened in 1934, has been considered a prototype and early standard for a supermax prison.[5]

An early form of supermax-style prison unit appeared in Australia in 1975, when “Katingal” was built inside the Long Bay Correctional Centre in Sydney. Dubbed the “electronic zoo” by inmates, Katingal was a super-maximum security prison block with 40 prison cells having electronically operated doors, surveillance cameras, and no windows. It was closed down two years later over human rights concerns.[6] Since then, some maximum-security prisons have gone to full lockdown as well, while others have been built and dedicated to the supermax standard.

Supermax prisons began to proliferate within the United States after 1984. Prior to 1984 only one prison in the U.S. met “supermax” standards: the Federal Penitentiary in Marion, Illinois. By 1999, the United States contained at least 57 supermax facilities, spread across 30–34 states.[3] The push for this type of prison came after two correctional officers at Marion, Merle Clutts and Robert Hoffman, were stabbed to death in two separate incidents by …. This prompted Norman Carlson, director of the Federal Bureau of Prisons, to call for a new type of prison to isolate uncontrollable inmates. In Carlson’s view, such a prison was the only way to deal with inmates who “show absolutely no concern for human life”.[7]

Source: Retrieved from Wikipedia October 4, 2017 from: https://en.wikipedia.org/wiki/Supermax_prison

See related Appendix VIDEO of Life in a SuperMax Prison below.

————

Appendix VIDEO – Life in a SuperMax Prison – CNN Video – http://www.cnn.com/videos/us/2015/05/13/inside-supermax-prison-orig.cnn/video/playlists/inside-prison-cells/

Published May 143, 2015 – Life in a SuperMax Prison

If [Boston Marathon Bomber] Dzhokhar Tsarnaev is sent to the United States Penitentiary Administrative-Maximum Facility in Florence, Colorado, he’ll be cut off from the world. See what life is like for inmates inside a Supermax prison. Source: CNN

 

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Commerce of the Seas – Extraction Realities

Posted on June 14, 2017 in Economics, Government, Implementation, Industries

Go Lean Commentary

According to the book Go Lean…Caribbean, ‘Luck is the destination where opportunity meets preparation’ – Page 252.

Well, opportunity is awaiting the Caribbean … for mineral extraction and oil exploration.

CU Blog - Commerce of the Seas - Extraction Realities - Photo 1The book also alerts the Caribbean region that Climate Change is raging forward, with a lot of repercussions in its wake. Global warming is resulting in higher sea levels, due to the melting of the polar ice craps/icebergs. A repercussion is:

Beach erosion.

Beaches are gravely important for the American East Coast. (They are important to Caribbean communities as well). So many communities depend on beach vacation and traffic during the spring/summer months (think Spring Break and the commercial summer season of Memorial Day to Labor Day). So when oil spills or predictable storms endanger beach sand, it becomes an urgent imperative for communities to assuage the crisis, even replace the sand; consider these recent News Articles/Summaries here:

Title: Beach Erosion on the US East Coast

Extraction - Photo 2

Extraction - Photo 5

Extraction - Photo 4

1.  http://www.sun-sentinel.com/news/florida/sfl-us-has-ok-to-study-bringing-bahamas-sand-to-florida-beaches-20170102-story.html

    January 2, 2017: A possible solution for replacing sand on South Florida beaches is buying it from the Bahamas. The US federal government has now loosened rules to make this possible.

2.  https://www.scientificamerican.com/article/what-causes-beach-erosion/

    The Art-and-Science of beach management is now being challenged – “Unfortunately for beach lovers and owners of high-priced beach-front homes, coastal erosion in any form is usually a one-way trip. Man-made techniques such as beach nourishment—whereby sand is dredged from off-shore sources and deposited along otherwise vanishing beaches—may slow the process, but nothing short of global cooling or some other major geomorphic change will stop it altogether.”

3.  http://abcnews.go.com/US/deepdive/disappearing-beaches-sea-level-rise-39427567

    DISAPPEARING BEACHES – A Line in the Sand – A tragic story of a family that buys a beach house in 1982, but today, they have to abandon it because of the eroding sands, and bedrock under the house.

4.  AUDIO: http://www.npr.org/2014/09/18/348985568/a-coastal-paradise-confronts-its-watery-future

    September 18, 2014 – There is ‘Trouble in Paradise’. Beachfront communities are finding the waters rising more and more due to global warming.


——–

Title: Oil Exploration and Drilling

http://www.npr.org/2015/03/12/392383373/plans-to-explore-for-oil-offshore-worry-east-coast-residents
March 12, 2015

    March 12, 2015 – As the [US federal government] administration opens the door to offshore drilling, the oil industry is promising more jobs and less reliance on foreign oil. … Coastal towns and cities in several states are formally opposing offshore drilling and oil exploration.

——–

Everyone has a price! So if the price goes up high enough, there may be interested parties among Caribbean member-states to take the money for allowing mineral/oil extraction in their offshore vicinity. There is a need to be alarmed at such proposals, as dredging sand or drilling for oil may endanger protected reefs or other underwater marine features.

With greater demand – imagine post hurricanes – the Laws of Supply-and-Demand will mandate that the prices for extracted minerals will only increase.

It will get more and more tempting!

The movement behind the book Go Lean…Caribbean wants to add other types of economic activities to the Caribbean landscape; we urgently want to use the sea as an industrial zone. This is because the Caribbean region is badly in need of jobs. The book urges communities to empower the economic engines of the Caribbean Sea, as in mineral & oil extraction.

The region’s economic driver is tourism. Tourism and “mineral extraction or oil exploration” are incompatible activities. Thus there is the need for the cautions in this commentary. The challenge is to embrace the commerce of mineral extraction for the positives, while avoiding the negatives.

Challenge accepted!

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This would be the governmental entity for a regional Single Market that covers the land territories of the 30 member-states, and their aligning seas; (including the 1,063,000 square miles of the Caribbean Sea). The Go Lean/CU roadmap features this prime directive, as defined by these 3 statements:

  • Optimization of the economic engines to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect public safety and ensure the economic engines of the region, including the seas.
  • Improvement of Caribbean governance to support these engines in local governments and in the Exclusive Economic Zone, including a separation-of-powers between the member-states and CU federal agencies.

This commentary posits that there are opportunities for the Caribbean to better explore the “Commerce of the Seas”, to deploy International Maritime Organisation-compliant offshore mineral/oil extraction and dredging operations. There are so many lessons that we can learn from the Economic History of other communities and their exploitation of extraction on the high seas. This commentary previously identified a series of 4 commentaries considering the Lessons in Economic History related to “Commerce of the Seas”; this entry is a 5th entry. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)
  5. Commerce of the Seas – Extraction Reality

The reference to “Commerce” refers to the economic interest of the 30 member-states in the Caribbean region. There is the need for more commercial opportunities that would impact the community with job and entrepreneurial empowerments.

Mineral extraction and oil exploration could be providential! Consider these foregoing source references.

In a previous blog, Guyana prioritized oil exploration and drilling as an economic activity in their Exclusive Economic Zone…

… the oil industry/eco-system could be a dizzying ride, up and down, complete with exhilaration and anxiety, especially for communities with mono-industrial economic engines. Trinidad is once such community. Now Guyana is entering that fray.

There are other countries seeking to join these ranks: Haiti, Jamaica, and the Bahamas.

A key consideration in this commentary is the concept of Exclusive Economic Zones (EEZ). Every Caribbean nation with no immediate neighbor within the 200 miles has this exclusive territory to exploit; the previously identified blog-commentary from May 25, 2015 detailed the encyclopedic details, shown here again in Appendix A.

The EEZ is factored in for mineral extraction and oil exploration. This is both a simple and a complicated issue. There is a lot of heavy-lifting involved to balance the needs of commerce and environmental protection.

This is the guidance from the book Go Lean … Caribbean. The CU federation is designed to employ best practices for economics, security and governance. The CU/Go Lean roadmap posits that “Extractions” (Oil and minerals like Rare Earths) must be a significant tactic for the Caribbean region to elevate its society.

The implementation of the CU allows for the designation of an enlarged Exclusive Economic Zones – requiring special approval from an United Nations Tribunal – consolidating existing EEZ’s and the technocratic cooperative-administration of Extractions within that space. This vision was embedded in the Go Lean’s book’s opening Declaration of Interdependence. See the need for regional coordination and integration pronounced these sample stanzas (Page 11 – 13):

i. Whereas the earth’s climate has undeniably changed resulting in more severe tropical weather storms, it is necessary to prepare to insure the safety and security of life, property and systems of commerce in our geographical region. As nature recognizes no borders in the target of its destruction, we also must set aside border considerations in the preparation and response to these weather challenges.

v. Whereas the natural formation of our landmass and coastlines entail a large portion of waterscapes, the reality of management of our interior calls for extended oversight of the waterways between the islands. The internationally accepted 12-mile limits for national borders must be extended by International Tribunals to encompass the areas in between islands. The individual states must maintain their 12-mile borders while the sovereignty of this expanded area, the Exclusive Economic Zone, must be vested in the accedence of this Federation.

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building…. In addition, the Federation must invigorate the enterprises related to existing industries like … fisheries … – impacting the region with more jobs.

The Go Lean book provides a 370-page guide on “how” to optimize the eco-system for mineral extraction and oil exploration in an integrated Caribbean region, for the geographic area of the Caribbean Sea. This is the “Commerce of the Seas”.

The Go Lean/CU roadmap asserts that as the confederation for the region’s 30 member-states, the CU, will be the administrator of this EEZ. Step One / Day One of the roadmap calls for awarding contracts for oil exploration and other extractions in the EEZ – this is one of  the methods for financing the CU; this is how to Pay For Change.

The Go Lean roadmap details a series of community ethos, strategies, tactics, implementations and advocacies to foster development, administration and protections in the Caribbean EEZ. Consider this sample except (headlines) from the book’s Page 195:

10 Ways to Impact Extractions

Case Study: The Bottom Line on the Deepwater Horizon Oil Spill
The disaster (also referred to as the BP Oil spill or the Macondo blowout) was an oil spill in the Gulf of Mexico on the BP operated Macondo Prospect, considered the largest accidental marine oil spill in the history of the petroleum industry. Following the explosion and sinking of the Deepwater Horizon oil rig, which claimed 11 lives, a sea-floor oil gusher flowed for 87 days, until it was finally capped on 15 July 2010. The total discharge is estimated at 4.9 million barrels (210 million gallons), resulting in a massive response ensued to protect beaches, wetlands and estuaries from the spreading oil utilizing skimmer ships, floating booms, controlled burns and 1.84 million gallons of Corexit (a chemical oil dispersant). After several failed efforts to contain the flow, the well was declared sealed on 19 September 2010. Due to the months-long spill, along with adverse effects from the response and cleanup activities, extensive damage to marine and wildlife habitats, fishing and tourism industries, and human health problems have continued through this day, 2013. Three years after the spill, tar balls could still be found on the Mississippi coast. …

[See Trailer of the resultant 2016 Movie-Storytelling in the Appendix B VIDEO below.]

1

 Lean-in for Caribbean Integration
The CU treaty unifies the Caribbean region into one single market of 42 million people across 30 member-states, thereby empowering the economic engines in and on behalf of the region, including many public works projects and the emergence of many new industries. The new regional jurisdiction allows for mineral extraction (mines), oil/natural gas exploration in the Exclusive Economic Zone and some federal oversight for domestic mining/drilling/extraction operations, especially where systemic threats or cross-border administration are concerned. One CU mandate is to protect tourism. This is just one of the negative side-effects to be on guard for, see Appendix ZK (Page 334) for other concerns.

2

 Oil – Mitigation Plan
The concept of oil exploration is very strategic for the CU, as there are member-states that are oil producers. With energy prices so high, this is a lucrative endeavor. But there is risk, tied to the reward equation; the CU cannot endure a Deepwater Horizon-style disaster. Risk management and disaster mitigation plan must therefore be embedded into every drilling permit. The CU will oversee this governance and provide transparent oversight, accountability & reporting.

3

 “Rare Earth” Rush – Minerals Priced higher than Gold (Year 2010: $1,000 a pound; $2,200 per kilogram)
There is a “rush”/quest to harvest rare earth elements. These include lanthanide elements (fifteen metallic chemical elements with atomic numbers 57 through 71, from lanthanum through lutetium) for metals that are ferromagnetic, this means their magnetism only appear at low temperatures. Rare earth magnets are made from these compounds and are ideal in many high-tech products. The CU will foster the regional exploration and extraction of these pricey materials.

4

 Pipeline Strategy/Tactical Alignment

5

 Emergency Response / Trauma Center
The CU accedence grants authority for federal jurisdiction on oil exploration/drilling projects. This is due to the environmental concerns, systemic threats and the strategic implications for energy security. So CU Emergency (Risk, Disaster, and Medical Trauma) Managers will audit and test shutdown, mitigation and emergency procedures annually.

6

 Exclusive Economic Zone Oversight / Research and Exploration

7

 State Regulated Mining – Peer Review

8

 Precious Metals – Exclusive to Caribbean Dollar

9

 Treasure Hunting in EEZ – CU must grant Excavation “Permits”

10

 Ferries Schedule for Transport to Offshore Rigs

The CU will foster “Extractions” as an industrial alternative to tourism. We have the natural resources (in the waterscapes), the skills and the passionate work-force. We only need the Commerce of the Seas. The Caribbean people are now ready for this industrial empowerment as mineral/oil extraction is both good … and bad!

The Go Lean roadmap asserts that economic needs are undeniable and tempting. While the region sorely needs the economic empowerments, this roadmap also details the mitigations and security measures to guarantee environmental protection.

There is much at stake when communities get the Art-and-Science of mineral extraction wrong!

This commentary ends this deep, long review of the Commerce of the Seas discussion. We have considered many different industries: Tourism, Cruise Lines, Shipping-Trade, Shipbuilding, Ship-breaking and now, Extractions. That is a lot of details to get right! The optimizations of these areas are the hallmarks of a technocracy. Yes, we can … get this right!

Now is the time for all of the Caribbean, the people, business, institutions and governments, to lean-in for the technocratic deliveries of the Go Lean/CU roadmap. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———–

Appendix A – Exclusive Economic Zone

An Exclusive Economic Zone (EEZ) is a sea zone prescribed by the United Nations Convention on the Law of the Sea over which a state has special rights regarding the exploration and use of marine resources, including energy production from water and wind.[1] It stretches from the baseline out to 200 nautical miles (nmi) from its coast. In colloquial usage, the term may include the continental shelf. The term does not include either the territorial sea or the continental shelf beyond the 200 nmi limit. The difference between the territorial sea and the exclusive economic zone is that the first confers full sovereignty over the waters, whereas the second is merely a “sovereign right” which refers to the coastal state’s rights below the surface of the sea. The surface waters, as can be seen in the map, are international waters.[2]

Generally, a state’s EEZ extends to a distance of 200 nautical miles (370 km) out from its coastal baseline. The exception to this rule occurs when EEZs would overlap; that is, state coastal baselines are less than 400 nautical miles (740 km) apart. When an overlap occurs, it is up to the states to delineate the actual maritime boundary.[3] Generally, any point within an overlapping area defaults to the nearest state.[4]

A state’s Exclusive Economic Zone starts at the landward edge of its territorial sea and extends outward to a distance of 200 nautical miles (370.4 km) from the baseline. The Exclusive Economic Zone stretches much further into sea than the territorial waters, which end at 12 nmi (22 km) from the coastal baseline (if following the rules set out in the UN Convention on the Law of the Sea).[5] Thus, the EEZ includes the contiguous zone. States also have rights to the seabed of what is called the continental shelf up to 350 nautical miles (648 km) from the coastal baseline, beyond the EEZ, but such areas are not part of their EEZ. The legal definition of the continental shelf does not directly correspond to the geological meaning of the term, as it also includes the continental rise and slope, and the entire seabed within the EEZ.

The following is a list of the largest Exclusive Economic Zones; by country with a few noticeable deviations:

Country EEZ Kilometers2 Additional Details
United States 11,351,000 The American EEZ – the world’s largest – includes the Caribbean overseas territories of Puerto Rico and the US Virgin Islands.
France 11,035,000 The French EEZ includes the Caribbean overseas territories of Guadeloupe, Martinique, Saint Martin, Saint Barthélemy and French Guiana.
Australia 8,505,348 Australia has the third largest exclusive economic zone, behind the United States and France, with the total area actually exceeding that of its land territory. Per the UN convention, Australia’s EEZ generally extends 200 nautical miles (370 km) from the coastline of Australia and its external territories, except where a maritime delimitation agreement exists with another state.[15]The United Nations Commission on the Limits of the Continental Shelf confirmed, in April 2008, Australia’s rights over an additional 2.5 million square kilometres of seabed beyond the limits of Australia’s EEZ.[16][17] Australia also claimed, in its submission to the UN Commission on the Limits of the Continental Shelf, additional Continental Shelf past its EEZ from the Australian Antarctic Territory,[18] but these claims were deferred on Australia’s request. However, Australia’s EEZ from its Antarctic Territory is approximately 2 million square kilometres.[17]
Russia 7,566,673
United Kingdom 6,805,586 The UK includes the Caribbean territories of Anguilla, Bermuda, Cayman Islands, Montserrat, Turks & Caicos and the British Virgin Islands.
Indonesia 6,159,032
Canada 5,599,077 Canada is unusual in that its EEZ, covering 2,755,564 km2, is slightly smaller than its territorial waters.[20] The latter generally extend only 12 nautical miles from the shore, but also include inland marine waters such as Hudson Bay (about 300 nautical miles (560 km; 350 mi) across), the Gulf of Saint Lawrence and the internal waters of the Arctic archipelago.
Japan 4,479,388 In addition to Japan’s recognized EEZ, it also has a joint regime with Republic of (South) Korea and has disputes over other territories it claims but are in dispute with all its Asian neighbors (Russia, Republic of Korea and China).
New Zealand 4,083,744
Chile 3,681,989
Brazil 3,660,955 In 2004, the country submitted its claims to the United Nations Commission on the Limits of the Continental Shelf (CLCS) to extend its maritime continental margin.[19]
Mexico 3,269,386 Mexico’s EEZ comprises half of the Gulf of Mexico, with the other half claimed by the US.[32]
Micronesia 2,996,419 The Federated States of Micronesia comprise around 607 islands (a combined land area of approximately 702 km2 or 271 sq mi) that cover a longitudinal distance of almost 2,700 km (1,678 mi) just north of the equator. They lie northeast of New Guinea, south of Guam and the Marianas, west of Nauru and the Marshall Islands, east of Palau and the Philippines, about 2,900 km (1,802 mi) north of eastern Australia and some 4,000 km (2,485 mi) southwest of the main islands of Hawaii. While the FSM’s total land area is quite small, its EEZ occupies more than 2,900,000 km2 (1,000,000 sq mi) of the Pacific Ocean.
Denmark 2,551,238 The Kingdom of Denmark includes the autonomous province of Greenland and the self-governing province of the Faroe Islands. The EEZs of the latter two do not form part of the EEZ of the European Union. See Photo 4.
Papua New Guinea 2,402,288
China 2,287,969
Marshall Islands 1,990,530 The Republic of the Marshall Islands is an island country located near the equator in the Pacific Ocean, slightly west of the International Date Line. Geographically, the country is part of the larger island group of Micronesia. The country’s population of 68,480 people is spread out over 24 coral atolls, comprising 1,156 individual islands and islets. The land mass amounts to 181 km2 (70 sq mi) but the EEZ is 1,990,000 km2, one of the world’s largest.
Portugal 1,727,408 Portugal has the 10th largest EEZ in the world. Presently, it is divided in three non-contiguous sub-zones:

Portugal submitted a claim to extend its jurisdiction over additional 2.15 million square kilometers of the neighboring continental shelf in May 2009,[44] resulting in an area with a total of more than 3,877,408 km2. The submission, as well as a detailed map, can be found in the Task Group for the extension of the Continental Shelf website.

Spain disputes the EEZ’s southern border, maintaining that it should be drawn halfway between Madeira and the Canary Islands. But Portugal exercises sovereignty over the SavageIslands, a small archipelago north of the Canaries, claiming an EEZ border further south. Spain objects, arguing that the SavageIslands do not have a separate continental shelf,[45] citing article 121 of the United Nations Convention on the Law of the Sea.[46] <<< See Photo 6 >>>
Philippines 1,590,780 The Philippines’ EEZ covers 2,265,684 (135,783) km2[41]. See Photo 5.
Solomon Islands 1,589,477
South Africa 1,535,538
Fiji 1,282,978 Fiji is an archipelago of more than 332 islands, of which 110 are permanently inhabited, and more than 500 islets, amounting to a total land area of about 18,300 square kilometres (7,100 sq mi).
Argentina 1,159,063
Spain 1,039,233
Bahamas 654,715
Cuba 350,751
Jamaica 258,137
Dominican Republic 255,898
Barbados 186,898
Netherlands 154,011 The Kingdom of the Netherlands include the Antilles islands of Aruba. Bonaire, Curacao, Saba, Sint Maarten and Sint Eustatius
Guyana 137,765
Suriname 127,772
Haiti 126,760
Antigua and Barbuda 110,089
Trinidad and Tobago 74,199
St Vincent and the Grenadines 36,302
Belize 35,351
Dominica 28,985
Grenada 27,426
Saint Lucia 15,617
Saint Kitts and Nevis 9,974

(Source: Retrieved May 25, 2017 from: http://en.wikipedia.org/wiki/Exclusive_economic_zone)

———–

Appendix B VIDEO – Deepwater Horizon (2016) Official Movie Trailer – ‘Heroes’ – https://youtu.be/S-UPJyEHmM0

Published on May 26, 2016 – Deepwater Horizon – Now Playing.
#DeepwaterHorizonMovie

CU Blog - Commerce of the Seas - Extraction Realities - Photo 6

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Commerce of the Seas – Lessons from Alang (India)

Posted on June 13, 2017 in Economics, Government, Industries, Tactical

Go Lean Commentary

Despite our beautiful vistas in the Caribbean – with our sun, sand and sea – not everywhere is paradisiac. Some locations are just plain ordinary, or even Less-Than. Tourism is the region’s Number 1 economic activity, but there are certain areas where tourists should not venture. This is true for agricultural areas and certain industrial zones.

The movement behind the book Go Lean…Caribbean wants to add another type of “not for tourists” industrial zone to the Caribbean landscape: Ship-breaking Yards.

Just that combination of words – “Ship” + “Breaking” – connotes some negative images. The lessons we learned from the Indian port city of Alang is that Ship-breaking is dirty; see the encyclopedic reference here:

Reference Title: Alang,  Indian State of Gujarat. 

CU Blog - Commerce of the Seas - Lessons from Alang - Photo 5Alang is a census town in Bhavnagar district in the Indian state of Gujarat. In the past three decades, its beaches have become a major worldwide centre for ship breaking. The longest ship ever built, Seawise Giant, was sailed to and beached here for demolition in December 2009. [1]

Marine salvage industry
The shipyards at Alang recycle approximately half of all ships salvaged around the world.[2] It is considered the world’s largest graveyard of ships.[3] The yards are located on the Gulf of Khambat, 50 km (31 mi) southeast of Bhavnagar. Large supertankers, car ferries, container ships, and a dwindling number of ocean liners are beached during high tide, and as the tide recedes, hundreds of manual laborers move onto the beach to dismantle each ship, salvaging what they can and reducing the rest to scrap.

The salvage yards at Alang have generated controversy about working conditions, workers’ living conditions, and the impact on the environment. One major problem is that despite many serious work-related injuries, the nearest full service hospital is 50 km (31 mi) away in Bhavnagar.

Alang - Photo 1

Alang - Photo 2

Alang - Photo 4

Future
Japan and the Gujarat government have joined hands to upgrade the existing Alang shipyard. The two parties have signed a Memorandum of Understanding, which focuses on technology transfer and financial assistance from Japan to assist in the upgrading of operations at Alang to meet international standards. This is a part of the Delhi Mumbai Industrial Corridor, a larger partnership between the Japanese and Gujarat government. Under this plan, Japan will address the environmental implications of ship breaking in Alang, and will develop a .marketing strategy. The project is to be carried out as a public-private partnership. The project’s aim is to make this shipyard the largest International Maritime Organisation-compliant ship recycling yard in the world.

Source: Retrieved June 8, 2017 from: https://en.wikipedia.org/wiki/Alang

The dirty nature of these industrial endeavors, as depicted in Alang, provides a negative lesson that we want to learn from to avoid all perilous consequences of doing this business in a “wrong” manner.

Another lesson we learn from Alang is that Ship-breaking work (jobs) is consistent and steady. There are many ships that have lived out their usefulness and now need to be dismantled for scrap; the more labor available, the more ships to break. This is such a positive lesson for us to learn right now, as the Caribbean region is badly in need of jobs. The economic engine involves salvaging the scrap metal (and other materials) for recycling.

The challenge is to embrace the commerce of Ship-breaking for the positives, while avoiding the negatives.

Challenge accepted! (The foregoing relates the welcoming support from Japan for clean ship-breaking).

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). This would be the governmental entity for a regional Single Market that covers the land territories of the 30 member-states, and their aligning seas; (including the 1,063,000 square miles of the Caribbean Sea). The Go Lean/CU roadmap features this prime directive, as defined by these 3 statements:

  • Optimization of the economic engines to grow the regional economy to $800 Billion & create 2.2 million new jobs.
  • Establishment of a security apparatus to protect public safety and ensure the economic engines of the region, including the seas.
  • Improvement of Caribbean governance to support these engines in local governments and in Self-Governing Entities, including a separation-of-powers between the member-states and CU federal agencies.

This commentary posits that there are opportunities for the Caribbean to better explore the “Commerce of the Seas”, to deploy International Maritime Organisation-compliant shipyards. There are so many lessons that we can learn from the Economic History of other communities’ exploitation of the high seas. This commentary is 4 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

The reference to “Commerce” refers to the economic interest of the 30 member-states in the Caribbean region. There is the need for more commercial opportunities that would impact the community with job and entrepreneurial empowerments. Ship-breaking could be providential!

Ship-breaking can provide high tech, mid tech and low tech jobs; especially if the salvage operation is executed in a technocratic manner. The Art & Science of technocratic ship-breaking versus dirty-breaking (i.e. Alang) was previously detailed in a blog-commentary on August 14, 2014. See some highlights from that blog in the excerpt here:

… ship-breaking activities in Third World countries, like Bangladesh, pose harm to the environment, workers and remaining systems of commerce. But when executed correctly, as in Brownsville-Texas, ship-breaking can be all positive. There are benefits in applying the appropriate best practices in handling hazardous materials. The tons of toxic waste (asbestos) can be properly managed and disposed of, with the proper eco-system surrounding the industry. The CU will facilitate the eco-system, especially with the Self-Governing Entities (SGE) concept for shipyards. This is covered in the Go Lean book under the auspices of “turn-around” industries, a federally regulated/promoted activity.

So there is a way to perform ship-breaking – one expression of maritime commerce – in a lean, clean manner while guaranteeing safety for the workers and profit for the investors.

This is the win-win … of the Go Lean roadmap.

The Go Lean book/roadmap was published in November 2013 with a vision for a new industrialization for the region. The quest is for the region to cooperate, collaborate and convene so as to accomplish more as a unified Single Market than may be possible alone. Not one of the Caribbean member-states – all Third World – can do ship-breaking right. It would quickly denigrate to the Alang and Bangladesh models. But together, leveraging the interdependence – so much more can be accomplished. This was the vision of the opening Declaration of Interdependence in the book. Here, the need for regional coordination and integration was pronounced as the basis of reforming and transforming Caribbean society.

See a sample of relevant stanzas from the Declaration here (Page 11 – 13):

xi. Whereas all men are entitled to the benefits of good governance in a free society, “new guards” must be enacted to dissuade the emergence of incompetence, corruption, nepotism and cronyism at the peril of the people’s best interest. The Federation must guarantee the executions of a social contract between government and the governed.

xxvi. Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building…. In addition, the Federation must invigorate the enterprises related to existing industries like … fisheries … – impacting the region with more jobs.

Reforming and transforming the Caribbean is the quest. The Go Lean book explains “how”, providing 370-pages of turn-by-turn instructions on “how” to adopt new community ethos for economic regionalism, and “how” to execute the right strategies, tactics, and implementations to reboot, reform and transform the maritime commerce to benefit Caribbean society.

The issue of fostering industrial developments in the Art-and-Science of the salvage industry has been a frequent subject for previous blog-commentaries; consider this list of sample entries:

https://goleancaribbean.com/blog/?p=10140 Lessons Learned: Detroit demolishes thousands of structures
https://goleancaribbean.com/blog/?p=6760 A Lesson in ‘Garbage’
https://goleancaribbean.com/blog/?p=2953 Funding Caribbean Entrepreneurs – The ‘Crowdfunding’ Way
https://goleancaribbean.com/blog/?p=2857 Where the Jobs Are – Entrepreneurism in Junk

All Caribbean member-states are islands or coastal territories – they can all be candidates for maritime salvaging (ship-breaking) operations – even all at the same time. While there is a large footprint of “cheap” ship-breakers in Asia, not as many proliferate in the Western Hemisphere. It is a perfect time to explore these opportunities.

This is not tourism! Ship-breaking activities are not paradisiac nor inviting so they should be limited to shipyards, not beaches.

Alang - Photo 3Imagine: towing an old ship from the Americas to the Caribbean, rather than across the Atlantic and Indian Oceans; see the experience of salvaging the “Love Boat” in the Appendix VIDEO below.

This is commerce!

There is a need to transform maritime commerce for the Caribbean region; we can get more economic activity from this sector; the Go Lean book projects 15,000 new direct jobs in the shipbuilding and/or ship-breaking activities. The possibility of these new jobs is hope-inspiring. At last we can arrest the societal abandonment where men and women leave the community looking for any kind of work.

This is Commerce of the Seas; we saw how previous generations of Caribbean people lived off the sea; we can again, with these creative expressions of maritime commerce.

This plan is conceivable, believable and achievable. We urge all Caribbean stakeholders – governments, business owners and workers – to lean-in to this roadmap for economic empowerment. We can make the Caribbean homeland and seas better places to live, work and play. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

————–

Appendix VIDEO – The End of The Love Boat – https://youtu.be/lauAeMtzMYM

Published on Nov 5, 2016 – English Captions Available!!!
MS Pacific Princess is a voyage send possessed by Princess Cruises and worked by Princess Cruises and P&O Cruises Australia. She was inherent 1999 by the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France as MS R Three for Renaissance Cruises.

The vessel initially entered operation in 1999, with Renaissance Cruises. The ship was not claimed by the organization, ownership rather living with a gathering of French speculators, who rented the ship to the organization. In late 2001, the whole Renaissance armada was seized by lenders.

Pacific Princess in Yalta inlet.

In late 2002, Princess Cruises sanctioned the R Three, alongside sister transport R Four (now Ocean Princess). Both vessels entered operation before the end of 2002. The contract ended toward the end of 2004, at which time both vessels were acquired by Princess Cruises. Gabi Hollows renamed the ship Pacific Princess in Sydney on 8 December 2002.
This ship has been the subject of a state help choice by the European Commission: Decision 2006/219.
—
Princess Cruise Line Youtube channel: youtube.com/user/princesscruises
Cruise Ships Info Youtube channel: youtube.com/cruiseshipsinfo
Cruise Ships Info Facebook Page: facebook.com/cruiseshipsinfo
Cruise Ships Info Twitter Page: twitter.com/cruiseship_info
Cruise Ships Info Pinterest Page: pinterest.com/cruiseshipinfo

————–

Additional VIDEO – Jobs of Workers in Ship-breaking Industry –  https://www.youtube.com/watch?v=wOGjYfBltZc

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Commerce of the Seas – Shipbuilding Model of Ingalls

Posted on June 12, 2017 in Economics, Government, Industries

Go Lean Commentary

The ‘Law of Supply-and-Demand’ is almost as natural as the ‘Law of Gravity’; leave it alone and it will pre-determine what will happen … in the marketplace. But just like the ‘Law of Gravity’ can bend and be defied (think airplanes and rockets), so too the ‘Law of Supply-and-Demand’ can bend and be defied. A great example of defying ‘Supply-and-Demand’ is the Crony-Capitalism (subsidies and protectionist schemes) in the highly-protected Ship-Building industry. (See the Appendix below regarding OECD Ship-Building Industry monitoring efforts).

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 1

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 2

Look at the numbers in the 2 photos above. It is apparent that the US distorts the Supply-and-Demand factors for Ship-Building in its market; their protectionist laws prevent the international market from supplying domestic shipping needs. This is bad! Though there is the need for some government-aid, to protect jobs and defense options,  the US model of Crony-Capitalism is a blatant distortion – Source: https://youtu.be/GpwzoDGDGAQ.

Ship-Building can be a strategic industry! The book Go Lean…Caribbean asserts that 15,000 new direct jobs can be created with strategic endeavors for the Ship-Building industry in the region. (Even more indirect jobs applies – multiplier rate of 3-to-1).  The Go Lean book calls for the elevation of Caribbean economics, positing that governmental entities must stimulate and incubate this industry. The book surveyed the world looking for industrial opportunities that could be fully explored in the Caribbean region where the natural resources of the region could be considered; the region is known for sun, sand and sea.

Tourism is a natural assumption for utilizing these “sun, sand and sea“ resources, but with the recent inadequacies of this industry, there needs to be more diversity in our commercial offerings; ship-building – which needs the sea – was identified as an ideal supplement and alternative for regional commerce. This reference to “regional commerce” refers to the economic interest that the 30 member-states in the Caribbean have to consider to provide job and entrepreneurial opportunities for its people. So this Ship-Building focus prioritizes the “Commerce of the Seas” concept. This commentary is 3 of 4 in a series considering the Lessons in Economic History related to “Commerce of the Seas”, the Crony-Capitalism in laws and practices around the maritime eco-system in the United States … and other countries. The full series is as follows:

  1. Commerce of the Seas – Stupidity of the Jones Act
  2. Commerce of the Seas – Book Review: ‘Sea Power’
  3. Commerce of the Seas – Shipbuilding Model of Ingalls
  4. Commerce of the Seas – Lessons from Alang (India)

There are many Lessons in Economic History for the Caribbean to glean by considering the actuality of this industry. Let’s consider the role model of just one American shipbuilding entity: Ingalls Shipbuilding Company in Pascagoula, Mississippi. See the reference source here, describing the business model for building ships to ‘Supply’ any open ‘Demand’ in the commercial market:

Title: Ingalls Shipbuilding 

Ingalls Shipbuilding is a shipyard located in Pascagoula, Mississippi, United States, originally established in 1938, and is now part of Huntington Ingalls Industries. It is a leading producer of ships for the United States Navy, and at 12,500 employees, the largest private employer in Mississippi.

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 3

Pascagoula River and Ingalls Shipyard

CU Blog - Commerce of the Seas - Model of Ingalls - Photo 5

History

In 1938, Ingalls Shipbuilding Corporation was founded by Robert Ingersoll Ingalls, Sr. (1882–1951) of Birmingham, Alabama, on the East Bank of the PascagoulaRiver in Mississippi.[1] Ingalls was located where the Pascagoula River runs into the Gulf of Mexico. It started out building commercial ships including the USS George Clymer (APA-27), which took part in Liberty Fleet Day 27 September 1941. In the 1950s Ingalls started bidding on Navy work, winning a contract in 1957 to build 12 nuclear-powered attack submarines.

Litton Industries acquired Ingalls in 1961, and in 1968 expanded its facilities to the other side of the river. Ingalls reached a high point of employment in 1977, with 27,280 workers. In April 2001, Litton was acquired by the Northrop Grumman Corporation.[2]

On August 29, 2005, Ingalls facilities were damaged by Hurricane Katrina; most of the ships in dock and construction escaped serious harm. While shipbuilding was halted for a while due to the destruction of many buildings, most vehicles, and the large overhead cranes, the facility continues to operate today.

On March 31, 2011, Northrop Grumman spun off its shipbuilding sector (including Ingalls Shipbuilding) into a new corporation, Huntington Ingalls Industries.

In 2015, Ingalls Shipbuilding Company signed a contract with US Navy for new destroyers, littoral combat ships and new landing craft. USS John Finn (DDG-113) was one of the first destroyers was launched on March 28. Company also is building Ralph Johnson (DDG 114), Paul Ignatius (DDG 117) and Delbert D. Black (DDG 119).

On March 21, 2015, the new San Antonio LPD 17-class amphibious ship John P. Murtha (LPD 26) was ceremonially christened. The vessel having been launched on October 30 and scheduled to be delivered in 2016.

On March 27, 2015, the shipyard received construction contracts for their next destroyers. Ingalls Shipbuilding Company was awarded a $604.3 million contract modification to build the yet-to-be-named DDG 121.

On March 31, 2015, the shipyard also received another contract with a $500 million fixed price to build the eighth National Security Cutter (NSC) for the US Coast Guard. Most of them will be under construction until 2019. The cutters are the most advanced ships ever built for the Coast Guard. [3]

On June 30, 2016, Ingalls Shipbuilding signed a contract with US Navy to build the U.S. Navy’s next large-deck amphibious assault warship. The contract included planning, advanced engineering and procurement of long-lead material, is just over $272 million. If options are exercised, the cumulative value of the contract would be $3.1 billion.[4]
…
Ships built

Source: Retrieved 06-11-2017 from Wikipedia: https://en.wikipedia.org/wiki/Ingalls_Shipbuilding

———–

VIDEO – Ingalls Shipbuilding Promotional Video – https://youtu.be/EFl8Tl0ImJo

Published on Jan 10, 2017 – Ingalls Shipbuilding is located in Pascagoula, Mississippi on 800 acres of the most important real estate in America. With 11,000 employees, Ingalls is the largest manufacturing employer in Mississippi and a major contributor to the economic growth of both Mississippi and Alabama. Our 77-year legacy has continuously proven we have the talent, experience and facilities to simultaneously build more classes of ships than any other shipyard in America.

We are the builder-of-record for 35 Aegis DDG 51 class guided missile destroyers, LHA 6 class large deck amphibious ships, National Security Cutters for the U.S. Coast Guard and the sole builder of the Navy’s fleet of San Antonio (LPD 17) class amphibious assault ships. Ingalls Shipbuilding has what it takes to build the capital ships that keep America and our allies safe.

Additional VIDEO consideration: https://youtu.be/0pak_gKglqo – Ingalls shows ‘Shipyard of the Future’.

Considering that 90% of all trade transports by water, there is natural demand for shipbuilding. There is a lot of supply as well.

Ingalls Shipbuilding Company is a definite beneficiary of government-aided commerce in the US; most of their shipbuilding engagements are government contracts. They are a leading producer of ships for the US Navy or Coast Guard, and at 12,500 employees, the largest private employer in Mississippi. As related in the first commentary in this series, the Jones Act has protected maritime commerce and shipbuilding for American stakeholders like Ingalls.

It is ‘high tide’ for the Caribbean to engage some protectionism strategies. Considering that the Caribbean region is the #1 market for the Cruise Line industry, collective bargaining should be prioritized to direct some shipbuilding business to local entities in this industry. The book Go Lean… Caribbean posits that as a unified region – a Single Market – the power of collective bargaining is possible. The book serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) with the charter to facilitate jobs in the region. We should explore the benefits of the shipbuilding (and ship-breaking) industry. This aligns with the CU charter; as defined by these 3 prime directives:

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

Early in the Go Lean book, this responsibility to create jobs was identified as an important function for the CU with this pronouncement in the Declaration of Interdependence (Pages 14):

xxiv.  Whereas a free market economy can be induced and spurred for continuous progress, the Federation must install the controls to better manage aspects of the economy: jobs, inflation, savings rate, investments and other economic principles. Thereby attracting direct foreign investment because of the stability and vibrancy of our economy.

xxvi.  Whereas the Caribbean region must have new jobs to empower the engines of the economy and create the income sources for prosperity, and encourage the next generation to forge their dreams right at home, the Federation must therefore foster the development of new industries, like that of ship-building…. In addition, the Federation must invigorate the enterprises related to existing industries tourism, fisheries and lotteries – impacting the region with more jobs.

Accordingly, the CU will facilitate the eco-system for Self-Governing Entities (SGE), an ideal concept for shipyards, with its exclusive federal regulation/promotion activities.

The Go Lean movement (book and blogs) also details the principle of job multipliers, how certain industries are better than others for generating multiple indirect jobs down the line for each direct job on a company’s payroll. In a previous blog-commentary, it was related that the shipbuilding industry has a job-multiplier rate of 3.0. So once the job-multiplier rate is applied to the 15,000 direct shipbuilding jobs, generating 45,000 indirect jobs, the full economic impact is 60,000. This is transforming!

The Go Lean book provides 370-pages of turn-by-turn instructions on “how” to reform and transform the Caribbean, starting first with how to adopt new community ethos, plus the strategies, tactics, implementations and advocacies to execute so as to transform the maritime commerce to benefit Caribbean society. Consider the Chapter excerpts and headlines from this sample on Page 209 related to Ship-Building:

10 Ways to Develop Ship-Building

1

 Lean-in for Caribbean Integration
The CU will allow for the unification of the region into one market, creating an economy of 30 member-states, 42 million people and 2010 GDP over $800 Billion. All of the member-states are either islands or coastal, therefore there are lots of coastline and harbors. Boats, yachts and ships are therefore plentiful in the region. Consistent with the CU’s mission for globalization, the region cannot just consume these vessels; we must create and build as well. There is a history of boat-building in the islands (slopes, schooners, clippers), but what had been missing to forge a formidable industry is the capital and the community “will”. The CU will now fill those gaps. The CU will tap the capital markets to secure long-term funding (stocks/bonds), prepare the labor force for advanced skill-sets, and negotiate treaties with “mature” EU states (i.e. Holland, Ireland) for master-apprentice labor-coaching. Boats, yachts and ships are considered durable goods, the opposite of planned obsolescence. …

2

 Cooperatives Movement – “Many hands make heavy job light”

3

 Ferry Operations – Demand & Supply
The CU envisions a fleet of ferries, to service the individual islands, in a scheme dubbed “Union Atlantic Turnpike”. The proliferation of scheduled ferries, synchronized with trains and trucks will depict a continuous logistic network. This constitutes the demand for ferries. The CU will henceforth award the contracts for building and maintaining the ferries to local industry players – this constitutes the supply. The CU will therefore foster a ship-building “incubator”.

4

 Spin-off Strategy – Low-risk Contracts
The CU vision is to deploy a “spin-off” strategy for ship-owning patrons. The CU region needs ships. Therefore, the CU will incentivize patrons to “go local” with their ship-building/maintenance needs. A domestic ship-building industry is a great source of skilled/high-wage jobs. So there are many ways to exploit the cost-benefit equation for a win-win.

5

 Cruise Ship Dry-Dock – Let’s Make-A-Deal
The Caribbean region is the Number One market for the Cruise Line industry. Big expenses for Cruise Lines are port charges and landing fees. The CU will offer rebates and incentives for the Cruise Lines to use local dry-docks for retro-fittings and refurbishing.

6

 Yacht Development – Catering to a Special Market

7

 Sailboats – For Every Man
The history of Caribbean boat building is rich with sailing crafts; cruise ships evolved from local Banana-Boats. The CU will channel that history, passion and ethos for the region to design/develop best-inbred sailboats, big and small.

8

 Boat Shows and Open Houses – Show and Tell

9

 Regattas – More than Just Winning a Race
The history of the region has highlighted ships, boats and boat building. There is the tradition of Regattas, used to showcase the islands boat building prowess. [199] The CU now intends to feature Regattas in the same manner that automakers feature auto racing (NASCAR, IndyCar, Formula-One), as a demonstration platform for their art and science.

10

 Maritime Emergencies – Professional Response
The CU will deploy the necessary equipment and training for the ship-building industry to respond to maritime emergencies in the region. Therefore a disabled cruise ship will have the rapid response of “support-barges”, tug boats, dredging equipment, portable generators. This effort will be marshaled by the CU Emergency Management Agency.

The CU will foster shipbuilding as an industrial supplement and alternative to tourism. We have the resources (waterscapes, ports and harbors), the skills and the passionate work-force. We only need the Commerce of the Seas. The Caribbean people are now ready for this industrial empowerment. But we need to be cautious as to which role model we emulate. The US does provide material support and subsidies to their shipbuilding industry, but their protection laws – i.e. the Jones Act – have nullifies the positive effects of a Free Market. While other countries build and launch hundreds of ships every year, the US model only produce 2. That’s a lot of missing jobs, and artificially induced high prices.

In the Caribbean, we must do better. Fortunately, we do not have the Crony-Capitalism of the Jones Act to deter us. We can follow other – better – models to progress our societal investments in this industry. This is the assertion of the Go Lean roadmap.

We hereby urge all Caribbean stakeholders – governments and citizens – to lean-in to this Go Lean roadmap to foster this industrial development, so that our region can be a better homeland and seas to live, work and play. 🙂

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

Sign the petition to lean-in for this roadmap for the Caribbean Union Trade Federation.

———–
Appendix – The OECD Council Working Party on Shipbuilding

(OECD = Organization of Economic Cooperation and Development)

The OECD Council Working Party on Shipbuilding (WP6) seeks to progressively establish normal competitive conditions in the industry. It encourages transparency through data collection and analysis, and seeks to expand policy dialogue with non-OECD economies that have significant shipbuilding industries. WP6 is the only international body that can influence and guide government policies by identifying and, where possible, eliminating factors that distort the shipbuilding market.

The Working Party is chaired by Ambassador Elin Østebø Johansen, Permanent Representative of Norway to the OECD. Participating OECD members are: Denmark, Finland, Germany, Italy, Japan, Korea, Netherlands, Norway, Poland, Portugal, Sweden and Turkey. Croatia and Romania are full participants in the Working Party, and the Russian Federation participates as an observer. The European Commission, representing the European Union, also participates in WP6 meetings.

What does the Working Party on Shipbuilding do?
The WP6 has placed a high priority on encouraging policy dialogues, and on establishing close working relationships with non-OECD economies. In particular, these economies were invited to participate on an equal footing with OECD members in the negotiations on a shipbuilding agreement that ran from 2002 until 2005, and Brazil, China, Croatia, the Philippines, Romania, the Russian Federation, Chinese Taipei and Ukraine participated in those negotiations. Although the negotiations were eventually halted, a close working relationship has continued with all of these economies.

The WP6 organizes regular workshops aimed at facilitating the exchange of information on policy and industry developments, and as well as the economies already mentioned, other participants have come from India, and Indonesia, amongst others.

The WP6 has also worked closely with industry groups representing shipbuilders, ship owners, ship operators and trade union interests, so that a wide range of perspectives can be taken into account by WP6 members during their formulation of policy responses to address issues and challenges faced by the global shipbuilding sector.

What is the relevance of the Working Party to non-OECD economies and industry?

While the world’s shipbuilding industry has been through a period of record production, it was severely affected by the 2008 global financial crisis, and recent years have seen very low levels of new orders received by virtually all shipyards. The global industry now faces a number of challenges, most notably global excess capacity, which will place the economic viability of the industry under pressure in some parts of the world.

Persistent worldwide overcapacity may encourage governments to provide support through subsidies and other measures, as well as spur other market distorting practices, which can create major structural problems even in the most efficient shipbuilding industries. But potential market distortions can be addressed through close co-operation among economies with significant shipbuilding sectors and the active involvement of industry.

———-

INVENTORY OF GOVERNMENT SUPPORT MEASURES

The Inventory of Government Subsidies and Other Support Measures is a regular exercise for the WP6. The main aim of this exercise is to provide transparency and continuity of data on support measures for the shipbuilding industry. As well as WP6 participants, the Inventory provides some information on the support measures in Partner economies.

 

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