Roger Hosein, Martin Franklin and Stephan T. Narine2011

Location of Study

The Saint Andrew/Saint David (SASD) Region

Initial household budgetary study done in 1997-1998 indicatedthat 40.5% of the SASD population was deemed poor.

2007-2008 study done by Ministry of Social Developmentindicated that this figure was reduced to 37.1%, but this region inT&T is still deemed to have the highest poverty rate.

Unemployment Rate In SASD vs T&T

0

5

10

15

20

25

30

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

UR in SASD

UR in T&T

Source: Central Statistical Office : Unemployment Report 2010

The SASD had a higher rate of unemployment from 1991-2007 but within

the last three years it has remained lower than the national rate of

unemployment.

Occupation in SASD 1991-2000-2008 as a Percentage Proportion of T&T

Occupation in the SASD as a Percentage Proportion of T&T

Occupation/Year 1991 2000 2008

Legislators, Senior Officials and Managers 3.37 4.42 3.67

Professionals 2 0.68 4.13

Technicians and Associate Professionals 1.91 3.58 3.32

Clerks 2.75 2.73 3.14

Service Workers and Shop Sale Workers 4.66 3.03 5.36

Agricultural, Forestry and Fishery 5.64 18.5 16.4

Craft and Related Works 3.52 3.1 4.25

Plant and Machine Operators 3.48 5.05 5.1

Elementary Occupations 6.11 4.6 6.35

Source: CSO Continuous Sampling Survey of the Population (CSSP)

1991-2008 has shown a significant increase in the informal sector.

The SASD region in 1991 accounted for 15.27% of persons

employed in the informal sector, however by 2008 this figure

reached 27%.

Localised Economic Development (LED)

‘‘LED means more than just economic growth. It is promoting participation

and local dialogue, connecting people and their resources for better

employment and a higher quality of life for both men and women.’’

(International Labour Organization , 2006)

Hartwick Rule CSR SME LED

CSR- Corporate Social Responsibility

SME- Small Micro-Enterprise

LED- Local Economic Development

Corporate Social ResponsibilityMajor Crude Oil and Natural Gas Producers in T&T 2010

Crude Oil Producers in T&T

(2010)

% of Total

Production

Ownership

Status

BPTT 20% Foreign

BG 1.8% Foreign

Petrotrin 14.2% Local

Primera Energy Resources Ltd. 0.5% Local

Trinmar 22.8% Local

BHP Billiton 9.6% Foreign

EOG Resources Ltd 7.6% Foreign

REPSOL 14% Foreign

T&T Major Natural Gas Producers (2010)

BPTT 59.4% Foreign

BG Trinidad and Tobago 23.3% Foreign

EOG Resources Trinidad Ltd 12.4% Foreign

Trinmar 0.6% Local

BHP Billiton 3.5% Local

REPSOL 0.8% Local

Source: Ministry of Energy and Energy Affairs Consolidated Report

2010

The biggest subset of crude oil and natural gas production players in T&T are

foreign multinational corporations.

Foreign MNCs would then be in the best position to contribute to the

sustainable economic development of the SASD region through venture

philanthropic practices.

Dutch Disease and The Hartwick Rule

The term ‘Dutch Disease’ basically refers to the negative effect a

booming tradable resource has on other traditional export sectors thus

creating a sole dependence on the booming tradable resource. E.g.

the petroleum sector in Trinidad and Tobago.

In an exhaustible resource economy where there is a constant level

of consumption, sustainable development can only be induced if the

value of investment equals the value of rents on extracted resources.

(Hartwick, 1977; Solow1986)

For sustainable local economic development to be promoted in the

SASD as explained by the Hartwick Rule, it is necessary that there be

a balance between extraction of natural resources and venture

philanthropic contributions by MNCs in Trinidad and Tobago in terms of

investment in human capital.

Economic Rent

Economic Rent in T&T, US$Mill. , 1995-2010.

Year Econ. Rent

(Millions)

Oil Price

(US$)

Oil Production

(000’s barrel per day)

1995 190.3 17.2 131.8

1996 273.2 20.4 129.1

1997 270.9 18.8 123.6

1998 - 11.1 121.1

1999 219.3 17.7 126.8

2000 690.1 29.0 130.5

2001 589.6 19.8 113.5

2002 548.6 29.4 130.6

2003 847.3 33.1 134.2

2004 1219.09 36.3 136.9

2005 2220.34 50.04 144.67

2006 2688.61 58.3 142.72

2007 2536.43 64.2 121.2

2008 3564.98 91.48 114.2

2009 1860.01 53.56 106.7

2010 2333.44 71.21 98.2

An appropriate amount of economic rent can be used to encourage

sustainable development in the SASD region through venture philanthropic

capital intervention since that region carries a comparative advantage, the

most accessible turtle nesting site in the Caribbean.

The hydrocarbon sector prospered from an increase in economic rents in the crude oil

subsection of the economy from US$190.3m in 1995 to US$2333.44m in 2010.

The Leatherback Turtle

Turtle Nesting vs. Turtle watchers

Year Turtle Nesting Turtle Watchers

2000 1242 12295

2001 2216 13433

2002 154 9041

2003 1512 9688

2004 1460 11396

2005 2194 14265

2006 1159 16554

2007 2534 14322

2008 1478 16527

2009 1758 11787

2010 1298 13526

There is a positive correlation in the number of turtles nesting and the number

of visitors for turtle watching between 2000-2008.

Trends in Ecotourism Globally

The Ecotourism Statistical Fact Sheet indicated that in 2006 international

tourist arrivals worldwide grew by 5.5% and exceeded 800 million for the first

time ever, it is expected that by 2020 global tourism is forecast to reach 1.56

billion international arrivals.

According to the World Tourism Organisation (WTO 2006) ecotourism was

growing globally 3 times faster than the tourism industry as a whole since its

growth rate is at 10%-12% per annum in the international market.

Encouraging signs for ecotourism in Trinidad and Tobago since World GDP

growth rate is expected to rise over the next five years and increase world GDP

usually has a positive correlation with tourist arrivals.

Opportunities for Small Micro Enterprises (SME) in the Turtle Tourism Industry.

Network of SME Opportunities in the Turtle Tourism Product

Leatherback

Turtles

Small Micro-

Enterprise

Food Service

Agriculture/Fisheries

Nature,

Cultural, Historical Tours Hosting

Photography

y

y

y

y

y

Local Art and Craft

& Culture

&

C

Hotel

Security

Services

Transport

Opportunities for Small Micro Enterprises (SME) in the Turtle Tourism Industry.

SMEs can be linked to both the production of goods or services needed as

part of the sustainable livelihood initiative in the SASD and the sale of these

products and services to the market, in this case the local community, the wider

national community and more importantly the visiting eco-tourists.

Assets are important in sustainable livelihoods since these are the resources

upon which people base their livelihood. For the residents of the SASD, the

assets can be classified into:

Natural/biological assets

Social and political assets

Human assets

Physical assets

Opportunities for Small Micro Enterprises (SME) in the Turtle Tourism Industry.

Heeks (1999) ‘‘there is a direct and growing relationship between the growth of

SMEs and poverty alleviation.’’

If MNCs are to fulfil their CSR in abiding with the Hartwick Rule, it is reasonable

to suggest that one such way of contributing to the sustainable development of the

SASD is to support and encourage the development of Small Micro-Enterprises

(SME).

E.g. MIPED (Mayaro Initiative for Private Enterprise Development)

Hartwick Rule CSR SME LED

Opportunities for Small Micro Enterprises (SME) in the Turtle Tourism Industry.

In the area of transport, residents of the SASD can form SMEs to provide

transportation services between the nearest hub (Sangre Grande) and the SASD,

as well as between the airport and the SASD.

The SASD is deficient in the area of small restaurants, cafeterias and catering

services.

Opportunities exist for SMEs to be established in laundry services, information

services, sanitation services, security services, and even photographic services.

Conclusion

This study has presented the SASD region in Trinidad and Tobago as one of

the country's poorest region but with a comparative advantage in terms of

being the most accessible nesting site of leatherback turtles globally.

A small proportion of the economic rent from crude oil and natural gas in

Trinidad and Tobago can be used to help promote sustainable LED in the

SASD through MNCs CSR in keeping with the Hartwick Rule.

Particular focus was placed on leatherback turtle nesting in the SASD region

within the context of ecotourism and tourism as well as opportunities for

sustainable livelihoods with the development of SMEs in the region founded

on the leatherback turtles.

Thank You