An Eye Opener
I recently stumbled upon a LinkedIn post that echoed a common concern gaining traction in Trinidad and Tobago—the accessibility of foreign exchange. This issue has taken center stage as its effects are sure to set off a dire chain reaction that would shake the core of the economy.
The repercussions of this exchange rate crisis are felt in everyday life. The prices consumers pay at the gas pump, in grocery stores, for taxi fares, and various other expenses have been on the rise as the ripple effect of these exchange rates reverberates through society.
Adding to the woes, there has been a recent reduction in credit card limits, with the maximum amount of USD one can spend in a single cycle dropping from 10,000 USD to 5,000 USD.
A New Perspective
A comment under the LinkedIn post offered an interesting perspective—it pointed out that Trinidad does not have control over the flow of foreign exchange, as it is dependent on the country issuing the currency (the United States in this case). The commenter further emphasized that while the internal economy of Trinidad regarding imports and distribution hasn't changed significantly, the country no longer boasts the vast reserves of oil and gas it once did. This led the commenter to pose a thought-provoking question to the original poster: "What sector of the economy brings in all this foreign exchange?"
This exchange on LinkedIn was an eye-opener for me. In retrospect, it appears to be a classic problem of supply and demand. The demand for USD in the country has surged, while the supply has dwindled.
Looking at the Numbers
A deeper dive into Trinidad's 2022 budget allocation reveals an interesting focus. Education and training, along with healthcare, received the lion's share of funding, standing at $7.453 billion and $6.892 billion, respectively.
While prioritizing education and healthcare makes sense on the surface, as the country aims to enrich and secure it's most valuable resource (its citizens); it begs the question of whether Trinidad has the means to fully harness its citizens' potential.
Trinidad has had the GATE program for 19 years since its inception in 2004. What do the numbers really say? How many qualified individuals benefitted from the program? Out of the tens of thousands of qualified individuals produced in almost 2 decades, how many are still actively contributing to the development of the nation? How many leave the country for opportunities in a foreign land? Are our qualified individuals placed in positions that can best utilize their talent?
I personally know many talented individuals, particularly in the tech field that has left the country to pursue opportunities at prominent companies like Cashapp, Google, Twitter / X, Meta, and Amazon. To be frank, the recent spike in crime has also prompted me to more carefully consider migration, as Trinidad and Tobago was ranked 6th in the "Most Criminal Countries" list by the World of Statistics.
An unanswered litany of questions
Is the grass truly greener on the other side, or is the quality of life better when facing housing crises in Canada or America as an immigrant in a foreign land, despite better compensation? Can Trinidad rectify its issues, and if so, what steps must be taken to stimulate economic growth? What does the 2023 budget hold in store for the nation?
Can Trinidad heal itself and rapidly expand to provide more value to foreign nations? How can the country compete on a global scale when it faces disadvantages? Could technology be the solution, and does Trinidad have the necessary infrastructure to compete? If not, how long would it take to establish that foundation, and would it be too late once achieved?
These burning questions serve as a backdrop to my anticipation surrounding Trinidad's 2023 budget, scheduled for release in the coming days. As the nation grapples with economic challenges and seeks a brighter future, the budget will undoubtedly play a crucial role in charting the course ahead.