Making A Difference In Our Space

Public Relations, Intercultural & Interpersonal Communication Blog

Tuesday, February 15, 2011

Topic of the Month


Discuss Standard and Poor's rating of the government's economic performance.

  • How can it help enhance the government's image in terms of managing Trinidad and Tobago's economy? 

  • Reflect on Julian Assange, the Wikileaks disclosures, and show a connection between these two issues.


Author: Sherrese Charles 
              Public Relations Student

In its Annual report, published on January 14th 2011, International Rating Agency Standard and Poor’s, gave Trinidad and Tobago an affirming  ‘A’ in foreign currency and ‘A+’ in local currency long-term sovereign credit rating. At the same time, the country received an ‘A’ in short-term rating. The long-term rating AA transfer and convertibility assessment is unchanged. The rating of Standard and Poor’s upon Trinidad and Tobago would have many implications both positive and negative. One of the negative implications is that Trinidad and Tobago’s economy has become overly dependent on the energy sector.
The government needs to diversify the economy. For example, the expansion of the Cocoa Industry, planting of vegetables and other crops, and the exploring of other industries such as tourism and recycling.  Current studies show that oil and natural gas resources could be depleted in ten to fifteen years. The government’s pursuit of attaining developed nation status may be thwarted with the progression of this developing economy, as more persons may not be satisfied with the current conditions. The crime level will surely increase with corruption and petty crimes. A positive implication is that the per capita income is high. Standard and Poor’s rating of Trinidad and Tobago will illustrate to the world that we are open to trade and foreign investors. In addition, more job opportunities in the energy sector and non-energy sector such as hotels, restaurants, manufacturing of food products, and construction sectors will become available. 
Julian Assange is an Australian publisher/journalist/software developer and Internet activist. He is the founder, spokesperson and editor in chief of Wikileaks, a whistleblower website for worldwide news leaks, with the stated purpose of creating open governments. Toward the end of last year, Wikileaks exposed over 400 files on Trinidad and Tobago consisting of classified information, also concerning the US embassy diplomatic cables in Trinidad and Tobago. It is important to note that the Wikileaks website has brought to light many keys issues such as the SIA and more importantly the US has taken information from the Wikileaks site to gather secret information on Atlantic LNG.
Last year, United States Embassy officials were asked by US Secretary of State, Hillary Clinton, to conduct secret information-gathering on the facilities of Atlantic LNG because its loss would possibly have an immediate and deleterious effect on the United States. According to a cable, classed as top secret, but published on the Wikileaks website this month, Clinton included Trinidad and Tobago’s natural gas facility on a series of world-wide infrastructure assets that needed to be placed on the Critical Foreign Dependencies Initiative (CFDI) list. Atlantic LNG, which the cable noted, provides 70 percent of US natural gas import needs.

    Posted by M.A.D Blogger at 9:00 PM


    15 comments:

    That was well done Sherrese... It is becoming evident that in everything, whether we would like to think so or not, has an impact on our society in a positive or negative way. How we deal with it is what would have made a great difference. We need to be cognizant of our surroundings.
     
    Denicia Dalyrimple
    February 17, 2011 at 8:50 AM
    Glad to see the blog up and running. I hope we really make a difference.
     
    Unknown
    February 17, 2011 at 4:17 PM
    Nicely put together Sherrese.

    Additionally, Trinidad and Tobago may be pleased about receiving and “A” rating from an international rating agency such as Standard and Poor’s, the country still has to be cautious as to how the future is approached. This is because even though at present they maybe financial capable of meeting commitment, with the rapid changes that is occurring in the global economy at the moment, maintaining this rating is not promised.
     
    Simara Anthony
    February 17, 2011 at 4:37 PM
    Good work. This report by S&P gave the indication that there is satisfaction with the management of the economy. While this may be so, one of the negative implications mentioned in the paper is that the economy has become overly dependent on the energy sector. This is so true, for it is estimated that only four percent of the people are employed in the energy sector, thereby making 96 percent of the population dependent on this sector for earning foreign exchange. Therefore, if the sector is on the decline, wasted resources will eventually run out. I believe as a country we need to restructure our economy so that we are less dependent on energy, and in agreement with Sherrese, to have other sectors earning the foreign exchange as well. While the ratings given by S&P can work in benefit of the government and for us as a striving economy, it is necessary to do some in-house checks because the agency cautioned, “fiscal deterioration, as well as further slippages in the pace of restructuring government-owned entities, could lead them to lower the country’s ratings.”
     
    aviean
    February 18, 2011 at 12:49 AM
    This was very enjoyable. I totally agree with Sherrese when she said that our economy has become overly dependent on the energy sector. Since we are unsure of the amount years we have left before the gas or oil resources depletes, it should definitely be in our best interest to invest in agriculture and tourism. Hopefully Trinidad and Tobago maintains the A ratings given by Standard and Poor's because while there might be some negative effects of the positive ratings, to get anything less would definitely damage the country's economy.
     
    Anonymous
    February 18, 2011 at 1:10 AM
    This was a very interesting post. The fact that Juilen Assange have leaked over 400 classified files on Trinidad and Tobago is something that should not be overlooked. I also believe that in order to maintain our 'A' rating the government needs to put in place alternative methods of securing the economy and not be so dependent on the energy sector.
    *Jeunesse
     
    Unknown
    February 18, 2011 at 1:52 AM
    It is clear to see that, our economy has matured. Receiving an 'A' credit rating is good, however how we utilize and take advantage of the opportunities this fosters is the biggest challenge.
     
    lauryn
    February 18, 2011 at 9:05 AM
    great job Sherrese, it shows that hard work and perseverance pays off. The "A" rating received by Trinidad and Tobago could lead us to become complacent and lull us into believing that everything is hunky dory and the real impact of the economic downturn can really hit us hard.
    Beware T&T.
     
    Unknown
    February 18, 2011 at 10:32 AM
    great job Sherrese. I am really glad that this blog is up and running. I hope with this opportunity we would live to the logo "making a difference in our space".
     
    Mandy
    February 18, 2011 at 8:47 PM
    It is important that we diversify and agriculture should be our main focus. In Trinidad and Tobago we import bananas, rice, sugar and other fruits and vegetables that can be harvested locally. Let us take a page out of Cuba's book on how their economy is functioned. We can establish the organoponicos, which is a system of urban gardens and consists of low-level concrete walls filled with organic matter and soil, with lines of drip irrigation laid on the surface of the growing media. It provides access to job opportinities and a fresh food supply to the community. All this should be encouraged by the government in the hopes for a better future.
     
    Unknown
    February 23, 2011 at 12:21 PM
    That should be job opportunities, thank you.
     
    Unknown
    February 23, 2011 at 12:24 PM
    Sherrese, you have shown us that we cannot like the ostrich, bury our heads in sand and hope that our problems will go away. It is clear that we are under scrutiny by the noteworthies of the world. It would be great if we could redeem ourselves through self-sacrifice and note worthy contributions but we are rather happy in our own little comfort zones. It has become our tradition to wait on the government for initiative and change. This was not always so, or else the steel pan would never have been invented. Let us remind ourselves of what really lies within us and do what we can to live our motto and watchwords once again.
     
    Unknown
    March 3, 2011 at 3:38 AM
    Very well put together Ms. Charles. The importance of the diversification of the country's economy seems to be taken very casually not only by our everyday citizen but by some politicians as well. However with the move of diversification one must also retain the fact that as a nation we are also well on the way of transforming into a "developed" nation or atleast as close as we can get to resembling one. Taking the previous information into consideration it would therefore be nothing short of a backward step to immediately turn to the agricultural sector as a means of diversification. While I maintain that agriculture is an important part in the economy, the vast numbers of our university graduates and academic scholars should be used to stratigecally analyse our countrys ability to diversify and build ourselves in other ways. The fact that you have indeed mentioned tourism and recycling and with research I am sure you have completed to come up with those two alternatives it is without question that you are indeed well on your way to becoming one of the scholars I mentioned about. Congrats on a well done essay and I look with high expectations for your future contributions to our nations development.
     
    Unknown
    March 14, 2011 at 10:44 AM
    Well it's good for international goodwill that we got the A rating but in the meantime we need to work hard at keeping the A rating by government, business and citizens investing in Agriculture, Intelligent Infrastructure reform, intelligent social services, proactive education, empowering men once more no matter the race (its not only black men who sometimes feel demasculated, I date all races and genders and I am privy to a lot of people's insecurities). In a nutshell, we must not rest on our laurel of the A-rating. We have a LOT of work to do!
     
    gldnvirginia
    March 16, 2011 at 2:53 AM
    A commendable response Sherrese.Quite enlightening for the reintroduction of diversification of the Agricultural sector,which should be booming today but instead we see the total opposite.Our economy is at a standstill.There is a negative growth.Our country is not one which is being promoted for foreign investment at this moment.So then where are we now?
     
    ava moses
    March 20, 2011 at 9:40 PM

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