Hilton, CAL, TSTT, NGC, PTSC, VMCOTT, etc. What do they have in common? Firstly, they are all totally or partially, commercial state entities, in one form or the other. Secondly, their viability always comes to the fore in times of tight fiscal revenues, like now, because of the high cost of funding these enterprises by the Treasury and therefore by taxpayers. Thirdly, and whether we recognize it or not, they all relate to the issue of the role of the state in economic activity.
I raise this issue of the role of the state because I was a member of the State Enterprise Review Committee which was appointed to examine the role of state-owned enterprises in 2016 and I recognise that a new administration unsurprisingly is grappling with some of the same issues all over again.
Frustratingly, from some of the statements being made, I fear that some of the same mistakes are going to be made and it is taxpayers that are going to bear the brunt of these mistakes.
The State and state enterprises can play a critical role in national economic development, whether or not this is recognized by policy makers. They can even play a pivotal role in the more general framework of industrial policy and consequently can help or hinder national development
It is in this context that I draw attention of policy makers to the release of a hot-off-the-press World Bank Group Policy Report, April 2026 which is titled “Industrial Policy for Development” by Fernandes and Reed. The Report is easy to read and simplifies a lot of jargon.
Importantly for countries like us “industrialisation” does not only refer to manufacturing but includes several other sectors including tourism. The report includes chapters on, how to do industrialization and which sectors to target. Relatively simple to read and pragmatic are useful qualities of the Report. This should be good for our busy policy makers.
The report also comes at a propitious time because I read that the World Bank is to establish an office in this country sometime soon.
Again, I call for the establishment of an appropriately staffed Economic Development Advisory Board to develop a strategic plan for this country. I feel certain that the World Bank would be willing to help with this exercise.
Finally, I recommend that this exercise be quickly initiated because if the boom in our oil and gas sectors take off, as many have predicted, that is likely to mean the end of any strategic plan, until the next bust comes along!
