COMMENTARY: VI economics
Shaina M. Smith - Wednesday, June 13th, 2012 at 7:06 AM
Shaina M. Smith
I had an interesting conversation the other day with two friends on immigration, labour and social development in the Virgin Islands for two (2) hours straight in the Situation Room. …Interesting indeed. We even had some other friends who phoned in their two cents on matters such as the OECS free movement of people and potential implications to us here in the VI.
We’ve concluded that we are in a grave situation, which is our dependency on migrant labour and the implications that it has on our society and economy. We also talked about the solution being found in our education system and not necessarily more immigration laws and regulations. We should seek to modernise existing laws and actually enforce them and stop playing games with issues like illegal immigration.
First off it is important to note that the migration of people is as old as man has been on the earth; so as long as there is opportunity on the VI shores, people will come and go but how we manage it based on our priorities is what will make the difference. Virgin Islanders at one time had to seek employment offshore to feed their families and through the wisdom of leadership we were able to grow the local economy and have them return a generation or two later. So if the priority is for our labour force to be more home-grown, we have to produce the right skill set for the labour market locally.
Sidebar: And when we do, we also need to stop discriminating against ourselves and hire our own when they qualify. Personally, I think it is nonsense when we have graduates turned away because ‘someone’ doesn’t think they deserve to be paid ‘5 figures’ for no explicable reason but don’t seem to have a problem paying ‘6 figures’ to a non-national who does not have a vested interest in the Virgin Islands’ development when the two-, three- or four-year contract ends. When are we going to stop acting like crabs in a barrel and see each other’s worth and celebrate one another? There is power in unity and we can’t progress as a country with an individualistic attitude.
Okay, back to the point. We can’t talk about labour and not bring up work permits. We spoke about how many feel we shouldn’t enact a definitive time limit on work permits where an employee would have to exit the job market for a time to allow Virgin Islanders an opportunity to enter or be promoted because of the perceived hardship it would put on businesses. In my opinion, somehow this position doesn’t align with our priority of Virgin Islanders being the movers and shakers in the economy and not just being employed. Thus Government/public policy should reflect this stance. We agree policies should be fair to employers and employees but the agenda should be clear and without apology.
People come to do business in the VI for various reasons and yes we want to facilitate business but not accommodate it at any cost. There is a difference. We should not be afraid to enact policy in our interests because no one else will. We would do well to remember when special interest groups like OECD or WTO make up the rules we have to abide by them because we have more to gain than the inconvenience it may cause. That is how it is and will always be. We also need to bear in mind that there is no such thing as indefinite growth and the Virgin Islands need to be actively looking at diversifying our economy so that it is less vulnerable because of external dependences. So when the argument is made that businesses will leave, at some point it may happen for other reasons and my question is what will we do then?
I’ve been hearing comments that Virgin Islanders are passive and we don’t speak up for ourselves. I say that’s a person who doesn’t know our history. We have a proud heritage of standing tall and pushing for change, that is how we are where we are today; but I think the last two (2) generations have become complacent because of the sight of a few millions dollars. And if we’re not careful we will become en grafted in lopsided partnerships that are not as beneficial as they appear. There is no such thing as a free lunch. Economic Colonisation….hmmm, that’s sounds like a topic for the National Boardroom.
Back to the solution: If the education system is revamped to match the reality on the ground, young professionals will be globally competitive and able to land a job anywhere in the world, more so at home. We have failed this generation for not enacting education and training systems reform nearly fifteen (15) years ago and we need to fast track the desperately needed changes to mitigate the marginalisation of Virgin Islanders further in the job market as well as rising unemployment. It seems to me other countries are looking out for their interest by educating their population and sending them out to be employed wherever there is prospects to send money back home to build their economy. Meanwhile, our college graduates are having to sit at home for six (6) months; sometimes more, and contemplate whether to go back to the US/UK for make a life for themselves. This further compounds the problem with a brain drain. We can’t build a nation without people!
Scholarships need to target specific areas in the job market, both private and public sectors at all levels of skills – semi-skilled, skilled and professional, to build a stronger economy and raise the quality of life for everyone. Businesses in all sectors can partner with Government and offer scholarships – full or partial, as socially responsible corporate citizens. Graduates who don’t return home is also economic potential not realised because they aren’t here renting, buying food and clothing, opening businesses or paying taxes. We need to pay close attention to the VI Diaspora and develop a strategy to engage them to be key players in the country’s development in the very near future.
Local employers need to balance profit with patriotism and take a nationalistic view to business that is not just about making money. They need to be very concerned about matters such as education reform and put pressure on policy-makers to make these changes happen. The quality of the services they deliver depends on the quality of their employees. Importing labour should be viewed as a temporary fix not the permanent solution. And I’m not saying that we will never need immigrant labour but I am saying that a balance needs to be struck at some point.
The work permit statistics honestly confuse me because I’m not sure each work permit represents a value-added job to the economy. In order to get a grasp of the situation, a labour market assessment needs to be done (like 10 years ago) to tell the true story and not speculations as to what the job market really looks like. I’ve said it before and will say it again, running a country without proper statistical data is like driving a car without working gauges in the dashboard. We don’t know our speed, how much gas we have or if the engine is about to overheat. Uninformed decisions are equivalent to throwing dice with the country’s future and we have to step up our information systems game or constantly be playing catch up or worse, be left behind. The job market is fiercely competitive and the government needs to be proactive in addressing issues with labour and immigration services delivered to the public and business sector.
My friends and I didn’t get to discuss how immigration and labour shapes us socially but we plan to meet up on July 5th and have a dialogue so stay tuned for that one. All in all, like I heard an elder say the other night on ZCCR, we need a “huddle” to confront what challenges us and not be afraid to have the hard conversations that in the long run will help us become a better Virgin Islands socially and economically. Stay tuned…
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42 Comments
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Same old rehash- BVI for BV Islanders- problem Shaina is that many voters today were not born here- and many of them probably voted for you like me- but never again- the proof of the pudding is in the taste- today’s world is about COMPETENCE not ENTITLEMENT- go sit down woman- stop preaching division- it is rusty politics-
“Same old rehash- BVI for BV Islanders- problem Shaina is that many voters today were not born here- ”
Unfortunatley this is very true and with the VI diaspora continuously growing coupled with the myriad of problems facing the country, COMPETENT indigenous VIslanders are quickly becoming an endangered specie in their homeland and may have to fight for their ENTITLMENTS literally…SAD!
You’ve touched on some very solid issues. Worth reflection on.
Shaina. I have a bit of a problem with the idea of local employers balancing profit with patriotism. Here is my point; I am asking Bobbys to make business decision in the national interest but when I am ready to make by weekly grocery purchases I take the boat to St Thomas in order to save myself a few pennies. Bobbys motive and my motive are incongruous.
HAHA!! Now we cooking! You touched on a very good point, we want but we don’t give. We expect local businesses to sponsor our events, donate stuff and have spectular prices but we hardly shop here.
Well penned Shaina. I have to agree with “Intelligent Bull” though. I might come as a shock to many, but if some of you would dig a little deeper including you, Shaina, you may or may not be amazed at your findings. You need to step outside the box and really get down-under. Widen your conversation group then you will discover the unknown. Things can be much better in all areas of the Virgin Islands but it’s all about greed. Every man for himself. I have to agree with Mr. Dick Read when interviewed about becoming a future Politician. He said that he is an honest man. Most Politicians too often start out honest but allow self greed to take over that is why the Virgin Islands are in the mess its in. It’s no longer about country. It’s about “SELF”
What’s in it for me(wifm) Shaina, think about why Mr. Anghel Smith and why he gave up politricks.
I agree you have to dig deep, at least for those with the ballz. However, you know what happens when you continue to sweep dirt under a carpet without cleaning? The build up is so massive the damn coffee table can’t even stand on its 4 legs. This is what we face in the Virgin Islands…..CORRUPTION ON A GRAND SCALE; the mound of dirt under the VI carpet is massive!!
Kickbacks, Human Smuggling, drug smuggling, prositution, child/sexual abuse, legal inequities, $$$ for political favors, $$$ to keep the SYSTEM stagnated, NO ACCOUNTABILITY! – Just to name a few.
The BVI has got to focus on buiding the infrastructure that will put the country at the cutting edge- first class airlift-hospital- schools- college- sewage- water supply- energy provision- that is the first step- all else is pie in the sky
Touching a little bit on the “brain drain”.
It is not only college graduates contemplating wether to go back to the US/UK. What about all those bright minds right now sitting in the puplic service (they are there), probably playing solitaire because they are not being giving the chance to progress, being undervalued and even micro-managed?
Government needs to seriously start looking at ensuring their is work progression in the service, ie:retire persons at the appropriate age allowing fresh new ideas and current training to flow into the service.
Imagine a person holding a Dept. head position for almost 20yrs, sometimes not even taking a vacation. This persons’ brain is already drained and they cannot bring anything new to the service.
I also believe that students who study abroad should bite the bullet and seek some overseas work to increase their experience if they cannot find work at home. Government can also look at letting scholarship students seek work outside the service and reimburse government.
“Government can also look at letting scholarship students seek work outside the service and reimburse government.”
Why should the graduates be forced to pay back Government they are not the ones who lost sight or planning?
I do agree though that Government needs to seek reimbursement from those who spend more than four years or two years in school (whether they work in the civil service or not they have wasted tax payer money!) ………..we have too much of that and it certainly does not serve the tax payer well…..
Intelligent talk- but it will never happen SHAINA the BVI is run by international investors and big business- DEM RUN TING THESES DAYS- politicians rececive their instructions from them- one way or another- both VIP and NDP- and the politics is about what is in it for me- we are a selfish self centred people- and until it affects us WE DO NOT CARE PERIOD-big bucks run things here- so all your good ideas are ultimately meaningless dear!
That’s not why. The reason is that regardless of how it ‘looks’, we do not have BVI COMPANIES, LOCAL COMPANIES here, we have ‘branches’ which are not controlled locally. How do you expect a foreign company with one tiny branch here to adhere to BVI laws and focus primarily on BVI? It will NOT happen! We need to just enjoy our position and make the best of the opportunities we get from it.
With the advent of technology, acting the ass will just chase businesses away, leaving ‘shell’ offices with about 5 people, while running the bulk of it from Panama, Hong Kong, Cayman etc. As someone said before, if you don’t understand this industry then you’re in a lot of trouble. Tourism is impacted and controlled to an extent by locals, Financial Services? NOT SO MUCH SO LIVE WITH IT! It is not easy for a local to wakeup and say they’re starting a Trust Company. It takes time, contacts, international links etc., it’s not all about us.
…When I say adhere to BVI Laws that was a slight error, I meant focusing on BVI ‘only’. ANy company/branch set up here regardless of size must adhere to BVI law so I strike that off.
You hit the nail on the head. The financial services industry is capable and willing to move to anywhere it can best serve it’s clientelle and maintain a business recognized of high quality in the global market. They are not going to risk anything, especially having to rotate experienced and capable staff on work permit limitations imposed by the BVI government. They will easily leave and set up shop elsewhere. Once one makes the move it will be a dominoe affect. Many countries, including Cayman has recognized this problem and removed restrictions on work permits.
The BVI needs to focus on areas of growth that have been ignored. Alternative energy sources would provide a great scope of career opportunities for one example. We need to stop telling our kids to be lawyers and entice them to take studies in areas that will benefit the country. We need engineers capable of assessing our terrain and ensuring buidlings and roads don’t crumble. We need experts in water and sewage. We need persons capable of preserving our waterways and our fish and wildlife. We need economists and finance specialists and those who want to spin off and be politicians and have the capability to run our country with some sense and knowledge. We need farmers to produce fresh foods and fruits to fill our tables and reduce our food costs. We need envisionaries and entrepreneurs who are willing to open new businesses to offer the people of the BVI, provide jobs, and improve our economy. We need people to allow others a chance to try and improve themselves and the country instead of holding others back out of jealousy or whatnot. There are so many opportunities to be strived for. Dreams to be lived, but we lack providing our children with the power to dream. Support them in their interests. Teach them to study and to work. Tell them there is as much honour in being a hairdresser, mechanic or plumber as there is in being an attorney.
I am glad u said intelligent talk and good ideas so let us make it reality and stop hinny and horning
Strong, thought-provoking commentary: tough, unvarnished, real talk. A must read for all Virgin Islanders, especially policy makers.
Shaina strike the core of the problem. Nonetheless, a few comments for the discussion. The rapid growth of the BVI economy increased the demand for skilled and professional skills and it also highlighted a shortage of these skills; consequently labour had to imported. But the BVI did not effectively develop and implement a strategy to link its local labour needs to the expanding economy.
Further, the expanding economy provided great opportunities yet the BVI did not effectively invest in its human capital. It ‘s approaching the mature phase of its growth continuum and must take action to sustain the mature phase and hold decline at bay. The BVI is small and as noted it cannot sustain indefinite growth.
Thus, it needs to develop and implement a strategic master plan for educating and training Virgin Islanders to take take full advantage of the growing economic opportunities at home.
Keep up the good work Shaina, this was a well thought out and balanced article.
Good article. I do agree with you about having people here on contract and paying them 6 figures but our own who are out of unversity has to be placed on some low scale. It is so wrong! We need to revamp not only the education system but also the salary scales in the VI government! I also agree with the scholarship parts. We have so much social issues in the VI and not one scholarships are targeting more pshychologists, mental health professions, school counsellors, each school should have its own counsellor not one for every three schools. This is so crazy!
The salaries in the civil service and statutory boards over need to be revised so that university graduates can willingly accept and stay in jobs when they return home. Further, the banks need to be better regulated to offer loans to these graduates so that they can immediatley begin to live independent lives as opposed to be stored away in their parent’s homes because of lack of ability to secure loans to provide shelter for themselves and potential families.
Their is a need for a moratorium on some work permits and policies in place to encourage companies to train BVIslanders to take up certain positions when work permits have expired….we should not be in the business of renewing work permits two, three and four times…….someone has to have the balls to put a stop somewhere or else this country is history!
The problem in the BVI is that we think it’s all about us. We don’t see the bigger global picture and that’s killing us. As BVI Lawyer stated below, this mentality came about as a result of vote grabbing politicians poisoning people’s minds with this bullshit about being from here and yadda yadda.
The companies you work for are not local companies, they’re international companies with a small BVI branch. They’re here for business, they’re not being r un by the local BVI branch manager, they’re being run from overseas and decisions are made based on global happenings not BVI. IF they decide to cut staff across the board of course they need to abide by the laws of the applicable jurisdictions, but they don’t have to seek permission to make a global business decision, that’s the part we fail to understand. As long as they lay you off within the confines of the law, that’s that. Until we realize that Labour cannot force a private company, based overseas with a branch here, to put a local to be their manager or financial controller, we’re in trouble.
I agree it is well said. But the “profit vs patriotism” issue is a bit more complicated than Shaina suggests.
In my industry (financial services), most businesses are only connected to BVI in a small way (the law firm Maples & Calder has over 600 employees worldwide and Appleby has over 800, but each only has 20 or so in BVI; TMF has over 100 offices in nearly 75 countries of which the BVI is only one).
Normally good profits is good patriotism (profitable businesses are good for the country as a whole – they push up wages and enhance the economy), but expecting foreign owned businesses who only have a small stake in the BVI as part of their global business to operate themselves for the greater good of the BVI is probably just unrealistic. They want to make profits, and if they can make them here, then they will. But if they can’t, then they will go elsewhere. That may be an unpleasant truth, but it is a truth nonetheless.
Some of these same companies make profits but the REAL question is how much of these companies give back to the community? Providing jobs is the usual jargon but what else is contributed to the Territory in which they are reaping huge profits?
The profits are not made in the BVI only. The BVI offices benefit from cross border transactions which spread across the businesses in different jurisdictions. Surely the profits will have to be shared between them. A law firm with a branch in UK and one in BVI, the UK firm would be working on a big deal that involved a BVI company set up to facilitate the deal. A lot of the work may occur in the VI but it’s generated by the UK entity so the fees must be shared between each office, it’s not necessarily a ‘BVI’ thing.
@ Movements – I understand what you are saying and I have been working in the financial services industry for well over 15 years at the senior level. So cross border transactions with the BVI BC in the company structure is nothing new. Along with annual budget for the various office locations.
My question is the ‘CORPORATE SOCIAL RESPONSIBILITY’ of some of these companies to the BVI? Yes there is the annual license fee plus per active company fee for being able to operate in the BVI as an agent. Yes the Government License Fee is paid by the ‘international clients’ to the FSC. Aside from that, what is the corporate responsibility? It is not just financial services industry but what about the charter yacht industry that is making money hand over fist and ruining (no proper method of ridding waste) the very environment in which they make money? Case and point the degradation of CGB and Great Harbour, JVD over the many years.
Points taken Truth, but let’s agree on something and this is no excuse. I do believe in corporate responsibility regardless of industry. But the sad part is how many people are willing to dip into their pocket, especially in these times, while Government continue to squander millions. I think that’s the issue that we face. People see how the Government waste so much and then wonder why should they even bother. In the end, any company, local or foreign that’s making money in BVI should give back in some way to the country whether big or small.
@ Movements – LOL! (I am not laughing at you) I am laughing because of the truth in your statement about Government squandering of funds. Many years of wasteful spending and lack of proper priortizing are what have this Territory in a mess. i.e. – the hospital project is 12 years and counting.
Perhaps when we as a people see corrupt elected officials serve serious jail time for their crimes then would we see a change. I am doubtful of that though because some from both sides of the political fence are loyal to the same master; which unfortunately is not the voting public.
BVI Lawyer understands the industry very well and until we do the same, we will be fighting a losing battle. The major private institutions operating here are not BVI companies. They merely have a small unit operating in the BVI. They are controlled by people staffed in the bigger more developed countries and don’t give a damn about BVI, that’s the reality of it.
If they have over 1000 employees worldwide and 20 in the BVI. What makes the BVI so good to them that they will put such a focus on that? They look at their business globally so we shouldnt take things so personal. A hire, a lay off etc. isn’t always about BVI, it’s about global positioning. We are too caughtup in ourselves and think its about Us uss us.
Yes, we shouldn’t lay down and take anything, BUT we need to understand how these industries work. A company based in Jersey with 1500 staff and have a small office in the BVI with 15 people working could give a damn what Pickering or Labour Dept thinks about them. They don’t see BVI when making decisions, they see a global branding and global positioning so we need to realize that. We also need to start pushing and positioning ourselves to be placed in overseas positions when the opportunity arises.
I know locals who were given the opportunity to work in another country for their employer and turned it down. Of course not everyone would want to make that change and for various reasons, but I’m talking about young people without kids etc. so no hold back, but refused. But stay in BVI complaining everyday about expat this and that. The companies are global so many of their hires will be global to meet their needs, that’s reality. Harneys is probably the only major firm that’s actually based in BVI hence their number of employees. Look at Citco for example, they have over 50 locations, BVI used to hvae 70 employees now they have about 35, but doing more work. WAKEUP!
I think you have advanced the wrong argument, excusably, because of the word ” Patriotism”.
An accurate reading of Shaina’s paragraph on the subject would indicate that the word choice better served, would be “Enlightened Self Interest” . Clearly it is in the employer’s interest to have stable pool of local talent from which to draw. It reduces recruitment costs, relocation costs, perquisites, and sadly, remunneration costs.
What Shaina is really asking to Corporate Community to do is be better citizens in advocating for improved educational standards and opportunities that enable the development talent in the host country. This is not about real, imagined or unvarnished reminders about relocation, or the size of companies.
Ultimately it is how swiftly we are able to react to market conditions, innovation, favourable legislative framework, and forming effective partnerships to ward off threats to the industry that ensures our survival………..and thrive we will.
You cannot regulate higher employment of BVIslanders as the government is trying to do. Instead the up and coming youth need to be prepared to compete in the workplace. This phobia that employers prefer to hire outsiders to perform jobs that BVIslanders can do, must stop. It is only an excuse! No businessman is stupid enough to prefer foreign labor over equally qualified and motivated local hire. I employ nothing but BVIslanders. All of my employees are wonderful in their own way, but as I look to expand I am finding it very hard to come across qualified and motivated young BVIslanders – I even asked one young man why he thought that he qualified to work for me and he answered “because I born here”. That is an attitude fostered by vote grabbing politicians that is not only hurting the young um-employed, but will eventually lead to the destruction of business in the British Virgin Islands.
I understand your point completely but there are some employers who PREFER foreign workers over localy qualified…in certain industries here it is quite common.
What’s the name of your business?
she is a sell-out
Explain? Because she’s local and successful? She’s advocating for LOCALS and she’s a sellout? You’re a jackass!
Well said . Food for us all to improve our lives and the lives of our children and their children.
Looking forward for your next topic.
It is a very well thought out commentary. But the one issue that jumped out at me was global competitiveness of our workforce. When I travel to Hong Kong I meet secretaries – *secretaries* – who speak three languages, have a university degree, and would never dream of leaving the office before 8pm, and often work until 10pm. And if those are the secretaries, you can imagine what the professionals and mid-managers are like. It will be a long, long time before the BVI becomes globally competitive on that scale.
Bravo! I hope that those in power get your message.
Working slave hours is not a good example for the B.V.I. to follow.
But they suffer their first heart attack when they are in their forties.
I won’t take ‘not 2 sure’s’ post too literal.
I don’t think the person is advocating for BVIslanders to start working 12hrs a day or to become overworked. I think this person is trying to highlight what is missing as it relates to many locals in the workforce and that’s DRIVE, DETERMINATION and PRODUCTION.
It means going above and beyond. It means trying to succeed and get the job done no matter what. It means sacrificing a lunch hour sometimes to please the client. It means not leaving everyday 5pm on the dot and then complain when you don’t get a raise or bonus. If the clock strikes 5pm, you do not have any emergencies, you have 15mins to spare, a client needs something, it’s Friday afternoon, the coming Monday is a Holiday. Do you pack up and leave the client hanging or you spend 10mins to get the job done?
I’ll stand corrected if I’m wrong, but I think this is what Not2sure is talking about. The only way you can excel in the financial services field especially is to put in work, real work and stand out as a productive employee that he business cannot afford to lose!!
True. Also true in any business. Virgin Islanders typically work hard unless they have drastically changed. If they have slacked off they need to get back on track. BVI is competing with many jurisdictions and destination for providing financial and tourism services.
Congratulations to all the commentors, the quality of the comments and politeness has improved over the past two days on this news site. This is the first place to start by showing a great clean and effective communication by intelligent citizens and residents of the BVI. That helps our brand too.
It was refreshing to read the intelligent comments whether I agree with all or not. Bloggers who can only make negative comments that cannot help the situation of the BVI, take note and try to upgrade your comments that will help others outside the BVI to see us in a more positive light. We are not all bad, we have a lot of positive things about us, too.
Amen to that – the detractors and defamers “haters”, will have to flee for refuge as they are confronted with the power of intellect that resides in this community.
Finally, the real BVI ( residents and nationals) people of good will, are standing up to the caricatured representations of the people of this community.
I also want to single out for mention, in contradiction to those who would wish us to believe otherwise, that” the BVI is still the safest part of the Caribbean”. These are the words from the country’s ‘top cop’ – UK careered, BVI Ag. Police Commissioner, David Morris – June 14th 2012.
Judging from the plethora of rehashed and recycled incidents of crime in the print and electronic media, many were being misled to think otherwise. MEDIA HYSTERIA – BEWARE.
BVI is a very open and free society, but excessive repetitions and sensationalism in crime reporting, which now incidentally, includes USVI crime reports to the exclusion of virtually anything else recently from that quarter, is regrettable.
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