Jamaica – Page 4 – Go Lean…Caribbean

Tag: Jamaica

For Canadian Banks: Caribbean is a ‘Bad Bet’

Posted on December 31, 2014 in Economics, Strategy

Go Lean Commentary

There is no one entity designated to regulate the Caribbean banking sector in its full entirety. There are however some financial institutions doing business in much of the region who thusly have to make regionalized assessments. This includes NGOs like the World Bank and the Inter-American Development Bank, plus for-profit institutions like the Royal Bank of Canada (RBC) and the Bank of Nova Scotia (Scotiabank).

The subsequent news articles reflect the assessment of Caribbean economics from the point-of-view of Canadian Bankers: RBC and Scotiabank. Their conclusion:

All is not well in the Caribbean.

These articles highlighting the need for regional stewardship and oversight of banking in the Caribbean. This is the siren call of the book Go Lean…Caribbean; it serves as a roadmap for the introduction and implementation of the technocratic Caribbean Union Trade Federation (CU) and Caribbean Central Bank (CCB) to provide better stewardship, to ensure that the economic failures of the past, in the Caribbean and other regions, do not re-occur here in the homeland.

According to these following articles, the need for this CU/CCB administration is past due:

Title # 1: RBC Wealth Management pulls out of Caribbean markets
Caribbean 360 – Regional News Site (Posted 11/21/2014; retrieved 12/30/2014) –
http://www.caribbean360.com/news/canadas-largest-bank-shutters-wealth-management-branches-in-the-bahamas-barbados-and-the-cayman-islands

BRIDGETOWN, Barbados – The Royal Bank of Canada (RBC) is now the latest Canadian bank to cut its losses in the Caribbean, following a decision to close its Caribbean wealth management divisions and several international advisory businesses in North America.

The move follows RBC’s sale of its Jamaican operations earlier this year, and an announcement by The Bank of Nova Scotia earlier this month of its plans to close around 120 branches in Mexico and the Caribbean (35 in the Caribbean specifically).

Canadian bank CIBC also suffered a net-loss on its FirstCaribbean bank operations in April 2014, for which it incurred a CDN $420 million goodwill impairment charge primarily related to its under-performing operation in the Bahamas.

Speaking to media sources in Canada following the RBC developments, Craig Fehr – an analyst with Edward Jones – said:

What we’re seeing is the banks are doing a thorough evaluation of their business mix and figuring out what makes sense long term and what is probably best left in the hands of someone else.

Sources indicate that the closure of RBC’s regional wealth management divisions – domiciled in The Bahamas, Barbados and the Cayman Islands – as well as management teams in Toronto, Montreal and the United States, could affect over 300 employees.

While heads of RBC’s regional wealth management divisions in the Caribbean declined specific comment on the exit and its impacts, RBC spokesman Claire Holland has confirmed the closures, while declining to offer specifics on the bank’s exit strategy:

“As there are a number of strategic options being considered as part of the exit, it would be premature at this stage to estimate the number of employees that will be impacted”, she said, while adding that the focus of the bank’s international growth strategy will now be on operating in major financial centres where RBC has “competitive strengths.”

RBC’s Caribbean wealth management divisions manage a portion of over CDN$43.2 billion in assets under the affected US and international wealth management operations.

When contacted for comment, Director of the Barbados International Business Association (BIBA), Henderson Holmes, said that his organisation was still trying to ascertain the facts before making a full statement on the RBC exit.

Holmes however cautioned that an exit “would not be good for Barbados”, while stating that BIBA’s current considerations were in whether a purchaser has been identified for the Barbados business, and whether its assets would remain in the country.

According to the International Monetary Fund, RBC, CIBC and the Bank of Nova Scotia hold around 60% of total banking assets in the Caribbean – a fact which the Fund says places the region at an increased risk of exposure to foreign financial crises.

For its part, RBC indicates that the closures will allow the bank to place increased focus on high net-worth and ultra-high net worth clients in key expansion markets, including Canada, the United States, the British Isles and Asia.

————

Title # 2: Scotiabank loans to hospitality sector ‘impaired’
Nassau Guardian Daily Newspaper Website (Posted 11/07/2014; retrieved 12/30/2014) –
http://www.thenassauguardian.com/bahamas-business/40-bahamas-business/51574-scotiabank-loans-to-hospitality-sector-impaired
By: K. Quincy Parker, Guardian Business Editor

Scotiabank loans to the Caribbean hospitality sector have apparently lost hundreds of millions of dollars in value; a portfolio worth $1.3 billion a year ago fell to a $1 billion before a restructuring which has led to write-downs in the region, and which may mean branch closures and job losses in The Bahamas.

It appears that Scotiabank’s Caribbean write-downs – or adjustment to the value of its business – largely stem from three “net impaired” loans to the hospitality sector in the region. In fact, Canadian financial publications note that “trouble in the Caribbean” is becoming a common refrain. Scotiabank’s write-down follows on the heels of an even bigger one by First Caribbean earlier this year.

After 125 years of operations in the region, Scotiabank’s Chief Executive Officer Brian Porter said during a call this week that the bank will close a significant number of branches in the Caribbean (35 branches was the estimate given) as part of the restructuring. The shift is expected to mean layoffs as well, but local representatives could not speak to the extent – if any – of closures or job cuts in The Bahamas.

Scotiabank’s spokespeople told Guardian Business on Thursday that the lender’s growth in the region has “created some overlap and duplication of services”.

“As a result, we undertook a review of our operating model and international distribution network and found opportunities to strengthen our retail presence by investing in areas that are going to improve the speed and quality of service for our customers,” the bank said in a statement released to this paper.

Porter has announced changes including branch closures, restructuring charges totaling more than $450 million, 1,500 layoffs – mostly in Canada – and loan losses of $109 million in the Caribbean. He also revealed that Scotiabank will either close or downsize 120 branches, largely in Mexico and the Caribbean, to focus on high-growth markets such as Chile and Colombia.

The Scotiabank Bahamas statement said: “The numbers announced relating to branch closures were across the Bank’s international network.

“The bank is still undergoing its review and while this process will take some time, it will be carefully planned with consideration given to all affected stakeholders including employees and our customers”.

The Caribbean has had to learn hard lessons on banking … abroad. Due to the interconnectivity of the financial systems, bank troubles in foreign countries easily become trouble for the region. This was definitely true for the 2008 Banking Crisis that spurred the Great Recession. (Eventually the middle classes were impacted and shrunk our tourism marketing prospects). The events of this period were the lynchpin for the Go Lean movement, (book and blogs). This Go Lean book, and the associated movement, posits that the effects of the 2008 Great Recession continue to linger in the Caribbean. Therefore the book advocates instituting the appropriate governance on the region’s banking sector so as to apply the learned lessons from 2008. We do not want to be vulnerable to any financial mis-management of our North American neighbors; or some “plutocratic” elements there-in.

2008 was all about Wall Street (New York City). Today’s headlines are all about Canada. Though there is elasticity from these foreign financial centers, the Caribbean is big enough (42 million people in 30 member-states) to streamline its own viable financial / securities market. We can exert some control over our own economic destiny. We must assume the coveted role of protégé to our North American partners, not parasites, as experienced … to date.

The CU’s prime directive is to elevate the Caribbean’s economic-security-governing engines. Early in the book, the need for a regional steward was pronounced (Declaration of Interdependence – Page 13) with these statements:

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.

xxv. Whereas the legacy of international democracies had been imperiled due to a global financial crisis, the structure of the Federation must allow for financial stability and assurance of the Federation’s institutions. To mandate the economic vibrancy of the region, monetary and fiscal controls and policies must be incorporated as proactive and reactive measures. These measures must address threats against the financial integrity of the Federation and of the member-states.

The Go Lean book, and previous blog/commentaries, stressed the key community ethos, strategies, tactics, implementations and advocacies necessary to establish the regional financial eco-systems for Caribbean self-determination. These pointed are detailed in the book as follows:

Community Ethos – Economic Principles – Economic Systems Influence Individual Choices	Page 21
Community Ethos – Economic Principles – Voluntary Trade Creates Wealth	Page 21
Community Ethos – Economic Principles – Consequences of Choices Lie in the Future	Page 21
Community Ethos – Economic Principles – Money Multiplier	Page 23
Community Ethos – Governing Principles – Lean Operations	Page 24
Community Ethos – Governing Principles – Return on Investments	Page 24
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Help Entrepreneurship	Page 28
Community Ethos – Ways to Impact Turn-around – 2008 Crisis	Page 33
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategy – Mission – Fortify the Stability of the Securities Markets	Page 47
Strategy – CU Stakeholders to Protect – Banks & Depositors	Page 47
Tactical – Growing the Economy – Minimizing Bubbles	Page 69
Tactical – Separation-of-Powers – Depository Insurance & Regulatory Agency	Page 73
Anecdote – Turning Around CARICOM – Effects of 2008 Financial Crisis	Page 92
Implementation – Assemble Caribbean Central Bank as Cooperative	Page 96
Implementation – Ways to Better Manage Debt – Optimizing Wall Street Role	Page 114
Planning – 10 Big Ideas – Single Market / Currency Union	Page 127
Planning – Lessons Learned from the old West Indies Federation – Canada’s Help	Page 135
Planning – Lessons Learned from 2008	Page 136
Planning – Lessons Learned from Canada’s History	Page 146
Planning – Ways to Measure Progress	Page 147
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Improve Credit Ratings – 2008 Lessons	Page 155
Advocacy – Ways to Improve Housing – 2008 Mortgage Crisis Lessons	Page 161
Advocacy – Ways to Impact Labor Unions – 2008 Effects on Main Street Jobs	Page 164
Anecdote – Caribbean Industrialist – Growth and Success	Page 189
Advocacy – Reforms for Banking Regulations	Page 199
Advocacy – Ways to Impact Wall Street	Page 200
Advocacy – Ways to Impact Main Street	Page 201
Appendix – Offshore Financial Services Industry Developments	Page 321
Appendix – Bahamas & Tax Info Exchange Agreements	Page 322

The points of effective, technocratic regional stewardship, especially in response to the 2008 Great Recession / Financial Crisis, were further elaborated upon in these previous blog/commentaries:

https://goleancaribbean.com/blog/?p=3397	A Christmas Present for the Banks from the Omnibus Bill
https://goleancaribbean.com/blog/?p=3090	Lessons Learned – Europe Sovereign Debt Crisis of 2009
https://goleancaribbean.com/blog/?p=3028	Why India is doing better than most emerging markets since the crisis
https://goleancaribbean.com/blog/?p=2930	‘Too Big To Fail’ – Caribbean Version
https://goleancaribbean.com/blog/?p=2090	The Depth & Breadth of Remediating 2008
https://goleancaribbean.com/blog/?p=1896	The Crisis in Black Homeownership since 2008
https://goleancaribbean.com/blog/?p=1014	Canadian View: All is not well in the sunny Caribbean
https://goleancaribbean.com/blog/?p=841	Post 2008 – Having Less Babies is Bad for the Economy?
https://goleancaribbean.com/blog/?p=782	Open/Review the Time Capsule: The Great Recession of 2008
https://goleancaribbean.com/blog/?p=709	Analyzing the Data – Student debt holds back home buyers
https://goleancaribbean.com/blog/?p=518	Analyzing the Data – What Banks learn about financial risks

Canada has been a dear friend to the Caribbean – see Appendices below. It is unfortunate that so many of their banks have experienced losses doing business in the Caribbean – we have been a ‘bad bet’. We want these Canadian banks and Canada in general to have good returns on their Caribbean investments and nothing but pleasurable experiences interacting with our culture and society. We want the Caribbean to be a better place to live, work and play for Canadians.

According to the foregoing news articles, our parasitic regional culture has not being gracious to our Canadian guest and direct investors. We need the proposed successes of the Go Lean roadmap for so many reasons; one strong motivation is to turn-around the results of the Canadian-Caribbean relationships. We must diversify our economy, fortify our security and improve our governance so that Canada would consider us in the role of a protégé, not a parasite again and again. This is the purpose of the Go Lean roadmap, to provide a turn-by-turn direction to move the region to that destination.

Don’t give up on us Canada!

🙂

Download the book Go Lean … Caribbean – now!

——————–

Appendix A – Scotiabank in the Caribbean and Central America
We have been part of the Caribbean and Central America region since 1889 when we opened our first office in Kingston, Jamaica to support the trade of rum sugar and fish. This was the first time a Canadian bank had opened a branch outside the U.K. or the U.S. Scotiabank had a branch in Kingston before opening a branch in Toronto, Canada, where the Executive Offices are now located.

Some 120 plus years later, Scotiabank is the leading bank in the Caribbean and Central America, with operations in 25 countries, including affiliates. We are the only Canadian bank with operations in four of the seven Central American countries, namely Costa Rica, Belize, Panama and El Salvador.

Scotiabank Facts:

Scotiabank employs 7,765 people in the region
Serves more than two million customers
About 99% of employees are hired locally
There are 294 branches and over 655 automated banking machines (ATMs) throughout the region

Our international strategy focuses on investing resources in high-potential markets where Scotiabank anticipates solid, long-term economic growth. We pride ourselves on leveraging the best Canadian sales and service practices to retain and attract high-value customers abroad. Our core purpose is to be the best at helping you become financially better off by providing relevant solutions to meet your unique needs.
(Source: http://www.scotiabank.com/jm/en/0,,37,00.html retrieved December 31, 2014)

VIDEO – Scotiabank Celebrates 125 Years in Jamaica – http://youtu.be/17WPQTE4Lr8

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Appendix B – Scotiabank and the Diaspora

The Scotiabank Caribbean Carnival Toronto is an exciting three-week cultural explosion of Caribbean music, cuisine, revelry as well as visual and performing arts. In its 45th year it has become a major international event and the largest cultural festival of its kind in North America.

As Carnival is an international cultural phenomenon, the great metropolis of Toronto and its environs will come alive as the city explodes with the pulsating rhythms and melodies of Calypso, Soca, Reggae, Hip Hop, Chutney, Steel Pan and Brass Bands. This colourful exhibition and display of genius is truly a musical panorama that is certain to bring a pleasing smile to the ancestral titans of Pan and Calypso music.

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Bahamas, Banks, Canada, Debt, Image, Jamaica

‘Too Big To Fail’ – Caribbean Version

Posted on November 14, 2014 in Economics, Government

Go Lean Commentary

The book Go Lean…Caribbean serves as a roadmap to implement the technocratic Caribbean Union Trade Federation (CU) and Caribbean Central Bank (CCB) to provide better stewardship, to ensure that the economic failures of the past do not re-occur.

What economic failures?

There were crises on 2 levels: the Global Financial Crisis of 2007 – 2009 and regional financial banking dysfunctions.

Global – The banks labeled “Too Big To Fail” impacted the world’s economy during the Global Financial Crisis. (See the VIDEO below on the anatomy and consequence of the Credit Crisis). Though the epi-center was on Wall Street, the Caribbean was not spared; it was deeply impacted with onslaughts to every aspect of Caribbean life (think: Tourism decline). In many ways, the crisis has still not passed.

Regional – The Caribbean region has not been front-and-center to many financial crises in the past, compared to the 465 US bank failures between 2008 and 2012.^[a]But over the past few decades, there have been some failures among local commercial banks and affiliated insurance companies where the institutions could not meet demands from depositors for withdrawal. Consider these examples from Jamaica and Trinidad:

There was a banking crisis in Jamaica in the 1990s. In January 1997, the decision was made to establish the Financial Sector Adjustment Company (FINSAC) with a mandate to take control and restructure the financial sector. FINSAC took control of 5 of the 9 commercial banks, 10 merchant banks, 21 insurance companies, 34 securities firms and 15 hotels. It was also involved in the re-capitalization and restructuring of 2 life insurance companies, with the requirement that they relinquish their shares in 2 commercial banks.^[b]
For Trinidad, the notable failure was the holding company CL Financial, with subsidiaries Colonial Life Insurance Company and the CLICO Investment Bank (CIB). In mid-January 2009, this group approached the Central Bank of Trinidad and Tobago requesting financial assistance due to persistent liquidity problems. The global financial events of 2008 combined with other factors placed tremendous strain on the group’s Balance Sheet. The CL Financial lines of business ranged from the areas of finance and energy to manufacturing and real estate services. The group’s assets were estimated at US$16 billion at year-end 2007, and it had a presence in at least thirty countries worldwide, including Barbados. Most significantly, the company held investments in real estate in Trinidad and the United States of America, and in the world’s largest methanol plant prior to its difficulties.

Welcome to the new Caribbean economy.

With the advent of the CARICOM Single Market & Economy (CSME), a more integrated region is expected to lead to greater linkages among the member-states of this existing economic union. The Go Lean roadmap calls for the deployment of the Caribbean Central Bank. So the issue of financial contagions will now have to be a constant concern for this regional sentinel.

The biggest threat of global financial contagions for this region has been dilution of net worth for the citizens of the US, Canada and Western Europe, the primary source of Caribbean tourists.

The prime directive of the CU is to optimize economic, security and governing engines to impact the Caribbean’s Greater Good, for all stakeholders: residents, visitors, bank depositors and mortgage-holders. This need was pronounced early in the Go Lean book, in the Declaration of Interdependence – (Page 13):

xxv. Whereas the legacy of international democracies had been imperiled due to a global financial crisis, the structure of the Federation must allow for financial stability and assurance of the Federation’s institutions. To mandate the economic vibrancy of the region, monetary and fiscal controls and policies must be incorporated as proactive and reactive measures. These measures must address threats against the financial integrity of the CU and of the member-states.

The foregoing news articles shows the type of functions executed by technocracies: monitoring risks, assessing risk factors, managing leverage and regulating industry performances. This first article considers and welcomes new stewardship for the global “too big to fail” banks:

Title #1: New bank rules proposed to end ‘too big to fail’
By: Joshua Franklin and Huw Jones

BASEL, Switzerland/LONDON (Reuters) – Banks may have to scrap dividends and rein in bonuses if they breach new rules designed to ensure that creditors rather than taxpayers pick up the bill when big lenders collapse.

Mark Carney, chairman of the Financial Stability Board and Bank of England governor, said the rules, proposed on Monday, marked a watershed in putting an end to taxpayer bailouts of banks considered too big to fail.

“Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved (wound down) without recourse to public subsidy and without disruption to the wider financial system,” Carney said in a statement.

After the financial crisis in 2007-2009, governments had to spend billions of dollars of taxpayer money to rescue banks that ran into trouble and could have threatened the global financial system if allowed to go under.

Since then, regulators from the Group of 20 economies have been trying to find ways to prevent this happening again.

The plans envisage that global banks like Goldman Sachs and HSBC should have a buffer of bonds or equity equivalent to at least 16 to 20 percent of their risk-weighted assets, such as loans, from January 2019.

These bonds would be converted to equity to help shore up a stricken bank. The banks’ total buffer would include the minimum mandatory core capital requirements banks must already hold to bolster their defences against future crises.

The new rule will apply to 30 banks the regulators have deemed to be globally “systemically important,” though initially three from China on that list of 30 would be exempt.

G2O leaders are expected to back the proposal later this week in Australia. It is being put out to public consultation until Feb. 2, 2015.

David Ereira, a partner at law firm Linklaters, said that on its own the new rule as proposed would not end “too big to fail” banks and that politically tricky details still had to be settled.

BASELTOWER

Carney was confident the new rule would be applied as central banks and governments had a hand in drafting them.

“This isn’t something that we cooked up in Basel tower and are just presenting to everybody,” he told a news conference, referring to the FSB’s headquarters in Switzerland.

Most of the banks would need to sell more bonds to comply with the new rules, the FSB said. Some bonds, known as “senior debt” that banks have already sold to investors, would need restructuring.

Senior debt was largely protected during the financial crisis, which meant investors did not lose their money. But Carney said it in future these bonds might have to bear losses if allowed under national rules and if investors were warned in advance.

The new buffer, formally known as total loss absorbing capacity or TLAC, must be at least twice a bank’s leverage ratio, a separate measure of capital to total assets regardless of the level of risk.

Globally, the leverage ratio has been set provisionally at 3 percent but it could be higher when finalised in 2015.

Some of the buffer must be held at major overseas subsidiaries to reassure regulators outside a bank’s home country. Banks may have to hold more than the minimum because of “add-ons” due to specific business models, Carney said.

Elke Koenig, president of German regulator Bafin, said supervisors should orient themselves more toward the upper end of the 16-20 percent range, though banks may be given more time to comply.

Fitch ratings agency said banks might end up with a buffer equivalent to as much as a quarter of their risk-weighted assets once other capital requirements were included. Analysts have estimated this could run to billions of dollars.

Analysts at Citi estimated the new rule could cost European banks up to 3 percent of profits in 2016.

Citi said European banks would be required to issue the biggest chunk of new bonds, including BNP Paribas , Deutsche Bank , BBVA and UniCredit , with Swiss and British banks the least affected in Europe.

(Additional reporting by Alexander Huebner in Bonn, Editing by Keiron Henderson and Jane Merriman)
Reuters Newswire Service – Online Site (Posted 11/10/2014; retrieved 11/13/2014) –
http://news.yahoo.com/g20-proposes-buffer-end-too-big-fail-banks-061252790–sector.html

Within the region, this second article considers the stewardship of one Caribbean financial institution in Jamaica and their lending practices:

Title #2: VMBS sees dramatic fall in foreclosures

VICTORIA Mutual Building Society (VMBS) recorded a three-quarters drop in property foreclosures last year.

It signals greater resilience by homeowners during an austere economy affected by heavy currency depreciation.

“The building society also enabled more members who were facing financial difficulties to retain ownership of their homes,” said VMBS in a statement about its year ended December 31, 2013. “Foreclosures on properties totalled 10 last year, compared to 37 the year before.”

Its non-performing loans, or loans unserviced for over 90 days, moved from 6.9 per cent at the beginning of the year to 5.6 per cent at the end.

“This improvement was the result of the continued drive to engage members who were having difficulty meeting their monthly mortgage payments, and working with them collaboratively, with the aim of helping them to bring their accounts current and retain ownership of their homes,” said Michael McMorris, chairman of Victoria Mutual, in his report for the group’s 135th annual general meeting held last month.

Greater focus was also placed on sales and services with mortgage disbursements up 133 per cent to $3.3 billion last year, the company indicated.

The Victoria Mutual Group, an amalgam of various financial, mortgage and insurance entities, made less after-tax surplus at $965.8 million for 2013 compared with $1 billion a year earlier.

The group’s pre-tax surplus actually increased year on year but its after-tax surplus dipped 4.2 per cent to $965.8 million as it was “adversely affected by the imposition of an asset tax on regulated financial institutions, which applied to both VMBS and VM Wealth Management,” stated the company.

The VM Group said that it aims to keep mortgage rates low by reducing administration costs, which augurs well for prospective homeowners.

Stated McMorris: “Internally, the year 2014 will see a continuation of a number of projects and initiatives geared towards improving efficiency and service delivery throughout the group.”

VM Group will seek to improve its financial advisory and brokerage services by growing the assets it manages on behalf of clients.

“To do this, Victoria Mutual Wealth Management Limited (VMWM) is working on new products to allow clients to customise their investment portfolios,” stated McMorris.

VMBS Money Transfer Services Limited (VMTS) plans to expand its services, both locally and overseas. The remittance company became profitable two years ago, and saw earnings grow by 61 per cent last year, due largely to an increase in fees, the company stated. VMTS also benefited from a 28 per cent increase in foreign exchange trading gains.

“Better gains on foreign exchange in part reflected a more challenging business environment last year, when depreciation of the Jamaican dollar was higher than 12 per cent,” stated the company.

VMBS allows its debit card holders free withdrawals at any of its teller machine or point-of-sale terminals.
Jamaica Observer Daily Newspaper – Online Site (Posted 08/20/2014; retrieved 11/13/2014) – http://www.jamaicaobserver.com/business/VMBS-sees-dramatic-fall-in-foreclosures_17381839

The related subjects of banking oversight and optimizing financial governance have been a frequent topic for blogging by the Go Lean promoters, as sampled here:

5 Steps of a Bubble – Learning to make a resilient economy

Canadian Imperial Bank of Commerce failing investment in FirstCaribbean Bank

Bitcoin needs regulatory framework to change ‘risky’ image

Open the Time Capsule: The Great Recession of 2008

What Usain Bolt can teach banks about financial risk

Barbados Central Bank records $3.7m loss in 2013

US Federal Reserve Releases Transcripts from 2008 Meetings

Dominica raises EC$20 million on regional securities market

Fractional Banking System – How to Create Money from Thin Air

Book Review: ‘Wrong – Nine Economic Policy Disasters and What We Can Learn…’

10 Things We Want from the US – # 2: American Capital

The Erosion of the Middle Class

All Caribbean countries have experienced economic dysfunction: English, Dutch, French and Spanish territories. In line with the foregoing articles, the Go Lean book details many infrastructural enhancements/advocacies to the region’s financial eco-system; to facilitate efficient management of the economy … going forward:

Ethos-Strategy-Tactics-Implementation-Advocacy	Page
Anecdote – Caribbean Single Market & Economy	15
Anecdote – Puerto Rico – The Caribbean’s Greece	18
Economic Systems Influence Individual Choices	21
Improve Sharing	35
Confederating Non-Sovereignty	45
Facilitate Currency Union/Co-op of Caribbean Dollar	45
Fostering a Technocracy	64
Caribbean Central Bank	73
Deposit Insurance Regulations	73
Securities Regulatory Authority	74
Modeling the European Union / Central Bank	130
Lessons from 2008	136
Anecdote – Caribbean Currencies	149
Growing the Economy	151
Creating Jobs	152
Better Manage Foreign Exchange	154
Improve Credit Ratings	155
Foster Cooperatives	176
Banking Reforms	199
Wall Street – Capital/Securities Market	200
Impact the Diaspora	219
Impact Retirement – Need for Savings	221
Help the Middle Class	223
Re-boot Jamaica	239
Appendix – Alternative Remittance Modes	270

There is no doubt that there has been mis-management of the Caribbean economy in the past. Consider the example of Jamaica; their currency has suffered from many de-valuations and depreciations; an average amount of $2.50 a year since the 1970’s; trading at 87-to-1 US Dollar; (at the time that Go Lean was composed – November 2013). Social Anthropologist posit that when societies come under duress, the communities have 2 choices: ‘Fight” or “Flight”. How have the countries responded that are cited in this commentary? They have chosen “flight”. A previous blog reported an average of 70 percent brain-drain rate across the region; with Jamaica at 85% and Trinidad at 79%.

Now is the time for change; time for new stewards of the Caribbean economy, security and governing engines. It’s time for the CU/CCB. We must prove that we have learned from the past. See the VIDEO below on the anatomy and consequence of the Credit Crisis.

The purpose of this roadmap is to provide that new stewardship. A lot is at stake: the destination for the hopes and dreams of the Caribbean youth. No more flight! We must act now and make the Caribbean, a better place to live, work and play. 🙂

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Appendix Video: – The Short and Simple Story of the Credit Crisis – http://youtu.be/bx_LWm6_6tA

Source References:

[a]. https://news.yahoo.com/facts-numbers-us-bank-failures-183852568.html

[b]. http://www.centralbank.org.bb/WEBCBB.nsf/WorkingPapers/DB0CF759B9E97FB9042579D70047F645/$FILE/Exploring%20Liquidity%20Linkages%20among%20CARICOM%20Banking%20Systems.pdf

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2008, Banks, Crony-Capitalism, Jamaica, Security, Trinidad

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Jamaica’s Public Pension Under-funded

Posted on November 10, 2014 in Economics, Locations

Go Lean Commentary

“Stealing from Peter to pay Paul” – Old Adage.

This above statement does not need to be explained; every reader fully understands and appreciates the meaning of this expression. It reflects a practice in financial management when revenue resources are out-paced by financial obligations. This is when reorganization becomes necessary. In fact, the publishers of the book Go Lean … Caribbean, SFE Foundation, is well suited to comment on these practices, as their charter is portfolio reorganizations for individuals, families and institutions.

On Page 8 of the book, the detailed profile of the foundation features influences from a noted American Economist Paul Romer by listing two of his famous quotations:

1. “A crisis is a terrible thing to waste”
2. “Economic growth occurs whenever people take resources and re-arrange them in ways that are more valuable”

The foregoing article relates a need in Jamaica to reorganize the pension program for retired civil servants. The system is broken! This subject of retirement is therefore important for retired people (old) and active workers (young), as every civil servant is either retired or want to be … someday:

Title: Public pension reform programme won’t work – Unfunded obligations at J$680B and growing
Sub-Title: Public-sector employees now enjoy very generous pension benefits that Government pays from current revenue.
By: A.C. Countz, Guest Columnist

The Jamaican Government does not put aside the necessary funds to finance pension obligations as they are incurred, as would be done in a private-sector scheme. It has a planned ‘reform’ that will further increase the pension fund deficit. This is irresponsible.

If past pension benefits were funded, as in most private-sector firms, that is, in a special segregated fund with an adequate balance to pay for the pension obligations relating to past service, then the Government (taxpayers) would have to find, right now, about J$680 billion to put into this fund.

Additionally, Government would have to put in 5.0 percent of pensionable annual salary for the public service in years going forward.

Currently, there are many members of the public sector, those of pensionable age, who receive pensions totaling J$23 billion per annum, while employee contributions amount to J$4.4 billion per annum.

In other words, Government is paying out annually almost J$19 billion more in pensions than incoming employee contributions.

Government now plans to reform the pension plan by April Fool’s Day 2016.

CURRENT PROPOSALS
The reform hopes to achieve:

1. Unification of all the different legislations that deal with these pensions and, as far as possible, standardise pensions terms across the whole public sector;

2. A defined benefit scheme would continue, though moderated;

3. An increase in retirement age to 65, gradually for existing employees – apparently lower retirement age for soldiers, policemen and maybe national and local politicians;

4. Calculate pensions based on average last five year’s service (calculation now based on final salary);

5. Calculate pensions based on 1.8 percent of average last five year’s service for every year served. There would be transitional arrangements whereby persons over 54 years old at the start of reform would get a higher percentage of between 2.0 per cent and 2.2 percent.

6. Pensions would not be indexed although the Government might increase pensions if a ‘surplus’ in the scheme is produced – as there is no segregated fund, one cannot imagine how this surplus is to be calculated; and

7. A lump sum of 25 percent of pension benefits payable on retirement and ongoing pension reduced – presumably the reduction will be actuarially calculated.

The Government proposals in the White Paper are faulty and, if implemented, will not make the public-sector pension plan affordable in the future. It is a Band-Aid when strong reform is needed.

The finances of the country are in a disastrous, although possibly better managed, condition.

RIGHT WAY FOR REFORM
Here are some suggestions for pension reform that are more appropriate than those in the White Paper:

1. Terminate the existing defined benefit scheme. Honour past service with existing benefits;

2. Commence a defined contribution scheme at once for ALL public servants, including statutory bodies and executive agencies. All future service for existing employees and all new employees to go into the defined contribution scheme. All employees to start paying a basic contribution of 5.0 per cent of pensionable salaries – these should be defined to exclude non-salary benefits. Employees should be encouraged to make further voluntary contributions to become entitled to a larger pension on retirement. Government to seek a waiver from IMF to allow them to fund the employer’s contribution of 5.0 per cent per annum from now;

3. Defined Contribution (DC) scheme to be operated in a properly managed and transparent segregated fund;

4. Government should face the issue squarely and acknowledge that they have debts, not accounted for in the national debt, of say J$700 billion representing the present day value of unfunded obligations. This amount should be properly accounted for in the national debt and arrangements made to fund it;

5. It is irresponsible for Government to reform the public sector pension scheme in a way that is certain to continue to increase the size of its unfunded obligations. Proper reform will be difficult to deal with, especially coinciding with the end of the pay freeze, but to do otherwise is once again not to face reality.

The basis of any reform must be to halt the growth of the unfunded obligation of the scheme in respect of past service and to fund on a current basis future service obligations.

Jamaica is badly served if EPOC, civil society and private sector organisations – to say nothing about the IMF – allow this pusillanimous approach to be followed.

Government reform must at a minimum stop the growth in the unfunded obligations of the scheme and include a plan to fund what is due for past service over a committed period of time.

A defined contribution scheme should be introduced for all future service.

This will be impossible for government to do unless there is public pressure on them to counterbalance the civil service lobby.

This column reviews the audited and in-house accounts and reports of companies and entities owned or influenced by Government.
Jamaica Gleaner Newspaper Online Site (Posted 08/20/2014; retrieved 03/06/2014) –
http://jamaica-gleaner.com/gleaner/20140820/business/business6.html

The book Go Lean … Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU). The technocratic CU is proffered to provide economic, security and economic security solutions for the 30 Caribbean member-states, including Jamaica. This mandate is important for retirement planning for current and future generations. This is detailed early on in the book’s Declaration of Interdependence, as follows on Page 13:

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.

The roadmap posits that retirement is a community issue, and that the mandate for the CU to manage economic security issues must encompass retirement planning as well. Applying lessons from the US and other western democracies, the key to technocratic retirement planning is the time-value-of-money; the ability to invest small amounts when young so that compounded returns can grow exponentially to benefit the saver when they are old; this is depicted in the VIDEO below. This is based on one assumption, that there is a capital/security market to facilitate the investment. This is where the Caribbean status quo is most lacking.

Without question, the role model for Caribbean capital/security markets would be New York City’s Wall Street. This ‘metonym’ refers to more than just the ‘street’, but rather the entire eco-system for financial investing in the US. While, the Caribbean region cannot rival Wall Street (for liquidity), we can reorganize and optimize the existing financial markets – the current 9 Stock Exchanges – with the introduction of the Caribbean Dollar, managed by a technocratic Caribbean Central Bank.

Liquidity refers to the availability of money, therefore the Go Lean roadmap portrays the need for public messaging to encourage more savings/investments. This messaging pronounces the need for Caribbean stakeholders to “steal from Peter to pay Paul”, where “Paul” is their future selves; see VIDEO below. The book describes this “deferred gratification” as a community ethos that is required to forge permanent change; this is advantageous for the entire Caribbean, and individual member-states like Jamaica.

There are some realities for Jamaica that must not be ignored. This country has experienced numerous currency devaluations and hyper-inflation episodes that has undermined the good habit of savings. These realities were detailed in the Go Lean book (Pages 239 & 297), depicting the “misery index” that Jamaicans had to endure. No wonder the societal abandonment rate in Jamaica is among the highest in the region. A previous Go Lean blog/commentary listed an abandonment rate of 85% among the college educated population.

The Go Lean roadmap addresses pension reorganization by first rebooting the region’s currency, economic and governing engines.

Related subjects on currency, economic, and governing dysfunction in the region that may affect the management of pensions have been previously blogged by the Go Lean promoters, as sampled here:

Inflation Matters – A factor in ‘Pensions’

Canadian Retirees – Florida’s Snowbirds Chilly Welcome

US Federal Reserve releases transcripts from 2008 meetings regarding mitigations of the financial crisis

Dominica demonstrates Caribbean liquidity by raising EC$20 million on regional securities market

Time Value of Money – basis for retirement planning

Book Review: ‘Wrong – Nine Economic Policy Disasters and What We Can Learn…’

What’s Holding Back Jamaica’s Reforms

The purpose of the Go Lean roadmap is to turn-around the downward trends in the Caribbean today, to reverse course and elevate Caribbean society. The Go Lean roadmap, applying lessons from the currency, economic and governing dysfunction of past years, has envisioned the CU with the following prime directives:

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

The Go Lean book details a series of assessments, community ethos, strategies, tactics, implementations and advocacies to optimize financial/retirement planning and performance:

Assessment – Caribbean Single Market & Economy – need for integration	Page 15
Assessment – The Greece of the Caribbean – dysfunctional debt policies	Page 18
Community Ethos – Deferred Gratification	Page 21
Community Ethos – Consequences of Choices Lie in the Future	Page 21
Community Ethos – Money Multiplier – Control of Local/Regional Currency	Page 22
Community Ethos – Return on Investments	Page 24
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Impact the Greater Good	Page 37
Implementation – Ways to Better Manage Debt	Page 114
Implementation – Reasons to Repatriate	Page 118
Planning – Lessons from 2008	Page 136
Advocacy – Ways to Control Inflation	Page 153
Advocacy – Ways to Better Manage Foreign Exchange	Page 154
Advocacy – Ways to Manage Federal Civil Service – Pension -vs- 401K	Page 173
Advocacy – Reforms for Banking Regulations	Page 199
Advocacy – Ways to Impact Wall Street	Page 200
Advocacy – Ways to Improve Elder-Care	Page 225
Advocacy – Ways to Impact Retirement	Page 231
Advocacy – Ways to Re-boot Jamaica	Page 239
Appendix – Jamaica’s International Perception	Page 297
Appendix – Lessons Learned – Floating a Currency	Page 316
Appendix – Controlling Inflation – Technical Details	Page 318

In most Caribbean countries, the largest employer is the government. Therefore public-sector employees are the largest group of workers. The foregoing news article was written as an audit-analysis to an audience of two, the Responsible Government Ministers for the Jamaican public-sector employees’ pension. The article specifically identified them as:

Dr. Peter Phillips – Ministry of Finance and Planning
Derrick Kellier – Ministry of Labour and Social Security

The Go Lean roadmap, on the other hand, was written for a different audience, all Caribbean stakeholders: citizens, Diaspora, government officials, civil servants, retirees and the youth. This is an empowerment plan for most aspects of Caribbean life, in fact there are 144 different advocacies in the Go Lean book. This is heavy-lifting; an investment in the people of the Caribbean for the elevation of the Caribbean.

The requisite investment of the resources (time, talent, treasuries) for this goal to elevate society may be too big for any one Caribbean member-state alone. Rather, shifting the responsibility to a region-wide, professionally-managed, deputized technocracy will result in “greater” production and greater accountability. Retirement planning and pensions are not optional, they need “greater” production and “greater” accountability; they need a “greater” return on investment – see VIDEO below on the slow-but-steady basics of “compound” investing.

Retirement planning for the Caribbean needs to “Go Lean“.

All Caribbean stakeholders are hereby urged to lean-in to this roadmap to make our Caribbean homeland a better place to live, work, and play.

Download the book Go Lean … Caribbean – now!

———

Video: Retirement Basics: The Power of Compounding – http://youtu.be/immQX0RKFY0

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Jamaica to receive World Bank funds to help in crime fight

Posted on March 26, 2014 in Economics, Government, Implementation, Social, Tactical

Go Lean Commentary

The publisher of the book Go Lean … Caribbean commends the Government of Jamaica and the Washington DC-based World Bank institution for their diligent effort to forge solutions to some of the crucial challenges of Jamaica. Crime has proceeded to cast such a “dark cloud” on Jamaica that the country is near the assessment of a “Failed-State”. The societal problems in Jamaica are so bad that many different advocacies from the Go Lean book can be applied to bring much needed improvements to the island. The book thusly serves as a roadmap for the implementation of the Caribbean Union Trade Federation (CU), a regional entity projected to also forge solutions for the Caribbean region as a whole and Jamaica in particular.

WASHINGTON D.C. – The World Bank says more than 80,000 Jamaican citizens will benefit from improved services, basic infrastructure and targeted crime and violence interventions in 18 vulnerable inner-city communities as a result of a US$42 million project for integrated community development.

The Washington-based financial institution said the new project is a continuation of the partnership between the Jamaica government and the World Bank on upgrading some of the country’s most vulnerable and volatile communities.

It said the project builds on the success of the “Inner City Basic Services for the Poor Project” to address accelerating urban decay and declining citizen security.

“The project aims to foster a more inclusive society in Jamaica by improving the quality of life of marginalized city dwellers,” said Sophie Sirtaine, World Bank country director for the Caribbean.

“It also aims to prevent crime and violence by engaging youth in public safety initiatives and providing them with job skills training,” she added.

As a result of the funding, Sirtaine said more than 50,000 people will benefit from improved solid waste management services, street lighting, paved roads and drainage.

She said residents in the 18 communities would “feel safer” and that 1200 families will have their piped water connection repaired and 4,500 residents receiving educational and skills training.

“As we strive to advance the targets of the Vision 2030, where access to reliable services and adequate infrastructure is the norm, enhancing community safety and security is a priority,” said Scarlette Gillings, managing director of the Jamaica Social Investment Fund.

“And these communities are places of choice to live, work, raise families and do business,” she added.

In the Kingston Metropolitan Area, the World Bank said poverty has doubled in two years from seven per cent in 2008 to more than 14 per cent in 2010.

It also said youth unemployment is on the rise, with more than 50 per cent of young people unemployed, adding that homicides and other violent crimes rates are among “the highest in the Latin America and Caribbean region”.

Source: Caribbean360.com – Caribbean Online Magazine (Retrieved 03/20/2014) http://www.caribbean360.com/index.php/business/1107320.html#ixzz2wvpxCnMA

While the foregoing article identifies these 3 objectives of the announced project: improved services, basic infrastructure and targeted crime & violence interventions, the Go Lean roadmap depicts 144 missions for the CU to engage, and provides the turn-by-turn directions on how to implement and ensure their success. At the outset of the book (Page 12), public safeguards are identified as prime directives in the Declaration of Interdependence:

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.

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 antecedence of this Federation must equip the security apparatus with the tools and techniques for predictive and proactive interdiction.

In addition to crime, the roadmap targets delivery of government services, identifying best practices in agile methodologies to guarantee fewer defects and more efficiency; (Pages 109 & 147). In fact, the name Go Lean refers to the commitment to lean project management methodologies in the structure of the CU; this is defined in the book’s Preface (Page 4).

Lastly, the book also details investments and the impact of pipelines in the region, recognizing that this field is an “art and a science”. These investments are identified as strategic, tactical and operational in their Caribbean deliveries (Page 43). This synchronizes with the World Bank and Jamaica’s initiatives to help the municipalities to better provide quality services with their Vision 2030 plan.

The book Go Lean … Caribbean is an economic empowerment plan for the Caribbean first and foremost. This means addressing the underlying issues that mitigate poverty: jobs, education and economic growth; (Page 222). The CU projects the creation of 2.2 million new jobs regionally while growing the economy to $800 Billion. This roadmap, once executed, should help Jamaica (and equally all 30 Caribbean member-states) shed this “Failed-State” eventuality.

Download the book Go Lean … Caribbean – now!

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What’s Holding Back Jamaica’s Reforms

Posted on March 24, 2014 in Planning, Social

Go Lean Commentary

“The issues and solutions in the book Go Lean … Caribbean are spot on!” This can easily be the conclusion after considering the subsequent news article and contribution from local Jamaica-based blogger Dennis Chung. Go Lean serves as a roadmap for the implementation of the Caribbean Union Trade Federation (CU), a technocratic federal government to administer and optimize the economic/security/ governing engines of the region’s 30 member-states. Mr. Chung’s blog screams: “Now is the time to reboot!”

Jamaica had always been “on the radar scene” for this roadmap, as the country has always sought solutions from super-national schemes. The country was prominent in the now defunct West Indies Federation (1958 – 1962), Caribbean Free Trade Associations (CARIFTA) and its many subsequent iterations (CariCom and CSME – Caribbean Single Market & Economy), Organization of American States (OAS), Association of Caribbean States (ACS) and other multi-lateral agencies and entities. Jamaica has always depended on the “kindness of strangers”, conjuring images of a Depression-era “soup kitchen” scene; in fact, the “soup (agency) du jour” is the International Monetary Fund (IMF) and their reform agenda (of funding and technical consultancy).

Gathering research from a Jamaica Gleaner newspaper article (“IMF says Yes – US$1.27B loan for Jamaica approved – US$950M fund for financial sector” – Jamaica-gleaner.com – 5 February 2010), this is proof that for some time, rebooting the economic engines has been high on the agenda for Jamaica’s government and business leaders. That news article, and the Go Lean roadmap (10 Ways to Re-boot Jamaica – Page 239) reports that the global economic downturn has had a significant impact on the Jamaican economy for the years 2007 to 2009, resulting in negative economic growth. “The government implemented a new Debt Management Initiative, the Jamaica Debt Exchange (JDX) on 14 January 2010. The initiative saw holders of Government of Jamaica (GOJ) bonds returning the high interest earning instruments for bonds with lower yields and longer maturities. The offer was taken up by over 95% of local financial institutions and was deemed a success by the government. Owing to the success of the JDX program, the Government was successful in entering into a borrowing arrangement with the IMF in February 2010 for US$1.27 billion.”

See the actual news article here:

By Dennis Chung, CJ Contributor
Anyone who has been reading or listening to my recent commentaries would realize that I am fully in support of the reform agenda otherwise known as the IMF programme in Jamaica.

Similarly, anyone who has been listening to my commentaries in the past will also realize that I was not in favour of the prior IMF programmes, because I never thought they would have worked.

The reason why I think this current programme stands a better chance than the prior ones, is that I think that the approach this time is a fundamental shift.

The previous programmes focused on providing funding support to prop up the balance of payments and fiscal accounts, without undertaking any structural changes to the economic and social order.

In fact, the main theory under those programmes is that if we just devalued the dollar then everything would be OK after that. What occurred in those cases is that one had significant knee damage and got some steroid injections to keep running.

Under this current programme, before we get the steroid injections, we have done the corrective knee surgery to address the damaged ligaments and put a graft in to ensure that the damage is fixed.

The IMF has said after you surgically fix the knee, then we will provide you with the steroid shots you need (funding), so that you can not only run but outperform the competition.

So I think we stand a very good chance at recovery, but there are some significant risks we face.

So while we are better prepared to face the competition and finish the race, the fact is that our productivity is low because our muscles have been at rest for too long, and the shoes that we have are way past their useful life, so unless we change the shoes (support structures) we will only start the process of damaging our knee again, and maybe not finishing the programme successfully.

I have mentioned before that the significant risks to not realizing our goals are no longer with the fiscal side, but rest outside of the Ministry of Finance (the only other monetary situation that was causing significant challenge is the liquidity problem which the BOJ has sought to address). The main challenges we face today rest in three main areas.

These are:

(1) Energy costs. Here, a lot rests on the 360 MW project, and therefore, the management of it by the OUR [(Office of Utility Regulations)]. Energy is a significant challenge for manufacturers, and is certainly one of the reasons why we have seen growth in agriculture, construction, mining, and tourism and a decline in manufacturing in the last quarter. High energy costs inhibit Jamaica from moving from a producer of primary to secondary products.

(2) Crime. Indiscipline is the major contributor to our fundamental problem and hinders productivity. Crime and indiscipline lead to low productivity of labour and capital, otherwise called total factor productivity (TFP). Jamaica’s TFP has declined at a rate of approximately 1.5 percent annually on average since 1972. An example of indiscipline can be seen in an article I wrote about a few weeks ago concerning Jamaican timekeeping and meetings, road indiscipline and night noise. Unless we get serious about this, then productivity will not be positively affected. Our current attitude sees us unable to successfully compete and everyone grows at a faster rate than Jamaica. I want to also mention in particular the demise of societal values and the failure to protect our children from abuse. This all leads to an even more unproductive work force.

(3) Bureaucracy. This is probably the biggest challenge facing businesses and results in low productivity. I recently had an example, which illustrates that while the Government is trying to pull in one direction (to move the economy forward) its functionaries of government are pulling in the other direction. In the past week I have had two instances that remind me of this. The first is being stopped by a policeman to say he was carrying out a spot check (no reason other than that) and then proceeding to seek to extract something from me, which I refused to do because I told him it was not right.

The second instance, however, is a situation where I had to go to the rent board to resolve a matter, even though the tedious process already set me back two months as that is the time period they gave to me to deal with the matter. So if you are unable to afford to be without the income for two months, then you will lose your property before the rent board deals with it.

After waiting for the two months, though (trying to follow the rules) I get a call the day before the matter is to be dealt with, saying it has to be delayed because the person handling the matter was unavailable, and I would be advised to select another date. After a few days I called to complain about the situation and eventually had to report it to the parent ministry (Transport). I then received a call the day after for a hearing to be set, which date was inconvenient, but then again I had to seek a remedy outside of the rent board, as I might have grown too old waiting on them.

The question, therefore, is what is the purpose of the rent board, as they were supposed to have made the process easier, but only succeeded in supporting the violation of the rights of a property owner, ensured that the Government loses tax revenue because no income is collected during the period, and maybe their delay has caused others to lose their property, and has caused rental costs to be more expensive for future renters as one will now have to demand enough security deposit to compensate for the delay of the rent board.

So, while the government is pressing ahead with the reform agenda in many respects, there are other forces pulling in the other direction.

Caribbean Journal Online News Site (Retrieved 02/28/2014) –

http://www.caribjournal.com/2014/02/28/whats-holding-back-jamaicas-reforms/

The Go Lean roadmap posits that the Great Recession crisis lingers to this day and trumpets that “a crisis is a terrible thing to waste”. Now is the time for Jamaica and all of the Caribbean to forge permanent change by implementing the Five Year roadmap advocated in Go Lean … Caribbean. The book directly addresses the economic engines, security concerns and the governing optimizations needed to assuage these inadequacies identified so vividly in the foregoing blog:

Energy – Implementation of a Regional Power Grid to lower cost

Crime – CU jurisdiction for economic and cross-border racketeering

Bureaucracy – Deployment of lean processes/systems for efficiency

Plus, the book advocates to lean-in on the community ethos that would address the deficiency in societal progress/growth. Now finally, with the Go Lean implementations, the Caribbean region in general, and Jamaica in particular, can emerge and finally become a better place for all citizens to live, work and play.

Dennis Chung is a chartered accountant and is currently Vice President of the Institute of Chartered Accountants of Jamaica. He has written two books: Charting Jamaica’s Economic and Social Development – 2009; and Achieving Life’s Equilibrium – balancing health, wealth, and happiness for optimal living – 2012. Both books are available at Amazon in both digital and paperback format. His blog is dcjottings.blogspot.com. He can be reached at drachung@gmail.com.

Download the Book – Go Lean … Caribbean now!!!

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