T&T
must beware 'curse of oil'
President Bush has declared T&T a wealthy
country. This has fostered a feeling of pride
and what seems to be a glossy achievement and
progress as
we head toward the 2020 vision of moving out of the Third World status.
However,
T&T is in great danger-danger because
of over-dependence on our oil reserves. The effects
of this boom have compromised the old social institutions
and prompted a dangerous reliance on foreign money
and labour.
The trouble with booms is that they typically
bring neither sustained economic growth nor cultural
improvements; the riches they create are spent
without investments into other natural resources,
disrupting normal behaviour, fomenting unrealistic
expectations, and inspiring envy. And booms always
come to an end. Government spending sustains local
commerce.
In addition, the Government has been rescuing
failed businesses, eg BWIA, and public construction
projects keep many concerns going, eg UDeCOTT,
labour contractors, import firms, wholesalers,
lawyers, agents, etc.
There is still hope for us to achieve the 2020
vision, but only through wise investments in other
natural resources, especially our agricultural
sector.
Continued dependence on oil will result in an
almost insurmountable convergence of structural
changes that nearly always accompany a resource
boom in a Third World country.
The
economists will remind you that there is a name
for this phenomenon. It is called the "curse
of oil".
Melitha Jueanville
Sangre Grande
Thursday,
March 13th 2008 / Trinidad Express
