PRODUCTIVITY & COMPETITIVENESS
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1 PRODUCTIVITY & COMPETITIVENESS TRINIDAD AND TOBAGO FRAMEWORK Presented by ECA Trinidad and Tobago
2 INTRODUCTION Small and medium enterprises (SMEs) perform a pivotal role in stimulating economic growth in Trinidad and Tobago. Globalisation implies greater competition for local businesses. The level of productivity (efficiency) of our SMEs is a strong factor in determining their ability to withstand the inherent threats of globalisation. High levels of productivity within our SMEs will better position them to capitalise on the many opportunities created by level access to international markets by virtue of their cost efficient, quality offerings. In Trinidad and Tobago s high dependence on a primarily single market economy (Energy Sector), high risk of extinction if low productivity persists. 2
3 PRODUCTIVITY FACTS AND FIGURES - T&T Fiscal 2012: The productivity of all workers in all industries, as measured by the All Items Productivity Index, fell by 6.3 percent Fiscal 2011: Productivity increased by 7.4 percent increase (Review of the Economy 2013, published by Trinidad and Tobago's Ministry of Finance and the Economy along with national budget documents) Fourth quarter of fiscal the productivity of all workers in all industries decreased by 4.9 percent. Fourth quarter of fiscal percent (year-on-year) increase in productivity reported 3
4 PRODUCTIVITY FACTS AND FIGURES T&T Overall, productivity in the non-energy sector fell by 2.3 percent (year-on-year) in the fourth quarter, compared to an 8.8 percent productivity gain reported for the similar period one year earlier. First Qtr Fiscal 2013: The productivity of all workers in all industries rose by 2.5 percent, a marked improvement First quarter of fiscal 2012: 8.7 percent decline which was recorded 4
5 MECHANISMS IN PLACE TO ADDRESS PRODUCTIVITY August 2009 Gov t re-established the National Productivity Council comprising 15 members (private sector, trade unions, civil society, academia and gov t). promotion and development of greater productivity and quality awareness and consciousness, inculcation of new values and attitudes in TT regarding productivity, quality and competitiveness, advice to the Government on the formulation of national policies and strategies Establishment of a National Productivity Centre (NPC) over the period The work of the (NPC) is undertaken through 3 sub committees. 5
6 Economic Development Board (EDB) 24th June Cabinet established a National Innovation System and the Economic Development Board. EDB consults with communities and stakeholder advisory councils Provides technical advice and support for National Innovation Policy Performs an advisory role Advises the Minister on productivity policy implementation 6
7 COUNCIL ON COMPETITIVENESS AND INNOVATION (CCI) June 2010 CCI was formed to Improve global competitiveness and diversification; Improve the competitiveness of existing industries Strengthen human capital in existing firms and Facilitate entrepreneurship and new business creation locally Support the Ministerial Council to establish, build and strengthen a National Innovation System to facilitate an innovation driven economy; Create, develop and strengthen a National Innovation System In 2015, the CCI will play a supporting role in the hosting of forums, provide opportunity for innovation and competitiveness discussions 7
8 COUNCIL ON COMPETITIVENESS AND INNOVATION (CCI) INITIATIVES The CCI has executed various initiatives with the aim of boosting Trinidad and Tobago s competitiveness ranking including: an analysis of competitiveness strategies of leading countries in the GCI to inform Trinidad and Tobago s national competitiveness strategy, the development of Trinidad and Tobago s National Competitiveness Framework, and the hosting of sensitisation sessions with public and private sector actors on the GCI and the Executive Opinion Survey which informs the GCR. The work to improve Trinidad and Tobago s ranking in the GCI is important as T&T seeks to boost its national competitiveness and raise investor confidence in our country. There has been a call to the Private Sector and leading business executives to partner in the work of enhancing competitiveness and business productivity in Trinidad and Tobago so as to achieve sustained economic growth and prosperity. 8
9 2014 GLOBAL COMPETITIVENESS INDEX (GCI) The Global Competitiveness Report (GCR) (which is based on the GCI) is published annually by the World Economic Forum and measures the microeconomic and macroeconomic foundations of national competitiveness to assess the ability of a country to achieve high levels of prosperity via increased productivity of its firms The World Economic Forum (WEF) ranked Trinidad and Tobago s competiveness 84 th place 2012: The World Economic Forum (WEF) ranked Trinidad and Tobago s competiveness 81 st out of 142 The labour market efficiency pillar was ranked 10th out of the 12 pillars in WEF s competiveness report. Monitoring of the GCI and the implementation of frameworks which facilitate the nation s improved ranking in this Index, fall within the purview of the CCI. 9
10 HOW CAN CEC ASSIST WITH IMPROVED PRODUCTIVITY AND COMPETITIVENESS? Productivity and Competitiveness are critical to business survival in Trinidad and Tobago and the assumption is that the situation is the same throughout the region. Therefore the CEC can champion relevant studies throughout the region: to ensure consistency of the productivity and competitive measures used; to identify any areas which with minimum intervention may have major impact (low-hanging fruit); as well as to determine the impact and result of the measures implemented with the objective of enabling greater productivity and competitiveness of SMEs in the region. 10
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