Monday, October 29, 2012

How Should We Solve The Problems Of The Forgotten “Rural Poor” In St. Lucia?

Posted by at

2 comments:

Anonymous said...

Credit availability, is a key factor in helping the poor to escape the poverty trap ...

=============
I'm afraid that this writer has allowed himself to engage in the fantasy that to attack, improve upon, or rectify one key dimension of the poverty variable, the problem will be 80 percent solved.

OK, he did not say 80 percent.

But in business, 80 percent would be considered a spectacular achievement, granted the many societal constraints and imperfections!

Yet, this failure to fully understand the limitations facing our would-be entrepreneurs is like filling up the gas tank, when the car really needs a brand new battery in order for it to work!

A wrong-headed focus on credit is like having the cart before the horse!

Before the would-be entrepereneurs can utilize any form of credit, whether this be from a mico- or other type of window or financing facility, there must be some reasonable expectation that there would a rate of return on investment (profit) greater than the borrowing cost of money (the interest rate charged to the borrower).

And that too, presupposes the creation of a value-added product or service (something people here or abroad will be willing to pay money for) -- with or without a domestic market.

In other words, there is the need to identify a sustainable market, be it broad or a niche market for sustianable and substantial income stream or flow.

So the absorptive capacity to use the financing must be matched too, by capability or capacity to do so.

The question that emerges from this is: do the potential recipients of the loans in the rural areas have any kind of market and for any kind of product that has a sustainable market potential on the global value chains.

The quality of our education system down to the K-level does not suggest that we are on fast track -- or any track kind of track to achieve this basic step.

Simply put: the political directorate of both main parties, especially the last one, have not positioned St. Lucians for the 21st century global economy.

There is no vision, implied or stated in taking a hands-on approach to furthering the rapid development and incorporation of information and MANAGEMENT technology in the way we do business and bring the rural poor onto the global value chains.

The WEVANDEZ MODEL is still what informs business decision making at the micro level for the most part.

Nothing greater.

The benefits of mandating the incorporation of forward and backward integration for all businesses operating in St. Lucia as a way of doing business, with a global perspective -- a conscientious effort towards a decidedly cultural shift for a nation-wide competitive advantage -- escapes us.

Our political directorate does not understand what is, or what it takes to create competitive advantage. That's not even on its radar screens!

What a pity!

November 1, 2012 at 7:01 AM
Anonymous said...

Make land available to the rural poor, and give them the incentive to produce quality products. Then, the marketing agency buys from the farmers and then resell at wholesale to industry and consumers. The hotel industry should by now be the biggest market for local products.So, once a month bring All the chefs together to get feedback. Repeat the success in other areas,making improvements where neccessary.

November 1, 2012 at 9:42 AM

Post a Comment

Subscribe to: Post Comments (Atom)