Trinidad was first settled by pre-agricultural Archaic people at least 7, years ago, making it the earliest settled part of the Caribbean. Ceramic-using agriculturalists settled Trinidad around BC, and then moved further up the Lesser Antillean chain.
Economic reforms adopted in the early s had resulted in an average economic growth of 7. This endured until when the economy slowly started to improve with an expected growth rate of 3. The high dependence on oil and gas provokes certain internal and external economic challenges that need to be dealt with properly and sustainably.
Section two discusses the main fiscal policy challenges in the light of Need essay sample on "Economic Paper Trinidad and Tobago"? Section six discusses the environmental policy in the light of sustainable development. The last section gives an overview of wage and employment generation policies.
Institutions It is commonly accepted that the wealth of a country is greatly determined by good institutions. They concluded that most of the successful economies in the world thank their success to traditional establishment of political and economic institutions that are similar to the West-Minster model of Great Britain.
That is, there is a formal separation of powers between the Executive, the Legislative and the Judiciary. The fundamental advantage of this system is that it traditionally incorporates economic inclusiveness, which in turn leads not only to the fulfillment of specific economic demands- i.
Despite characterizing the basic institutions as good, some curious remarks need to be mentioned. First of all, there is a discrepancy between practice and theory of the separation of power element. Real power has resided with the executive branch since Colonial times.
In fact, decisive power was centralized in the colonial governor as the representative of the Crown. This tradition extends to the present, as real power resides with the Cabinet, particularly the Prime Minister, and Parliament can block only decisive bills.
The following quote comes from the Trinidad Guardian Newspaper: Although being recognized by the successive governments as a problem of corruption there is no broad political will to reform campaign finance, and few public officials are ever prosecuted.
This could again, but not conclusively, be attributed to the central role played by the prime-minister in influencing the rule of law. In conclusion, as far as overall institutional quality is concerned, the country does relatively well in the Caribbean region on the basis of the indices of economic freedom, ease of doing business, voice and accountability, government effectiveness and regulatory quality.
Although the average score is not high in terms of institutional quality there is without a doubt enough space for improvement. IDB working paper series II. Fiscal Policy A quick look at the conventional fiscal balance sheet over the past decade shows a fiscal balance that predominantly moves in the same direction with the GDP trough the business cycles.
This would imply a countercyclical fiscal policy that stimulates aggregate demand in times of economic down turn and withdraws from it during periods of economic downturn. However, despite sustained deficits, and high level of government expenditure averaging There are cyclical factors that need to be taken into consideration when reading the balance sheets.
Research papers show that despite of its countercyclical appearance, the fiscal policy is in fact pro-cyclical.
The reason for this is very straight forward: When measuring the degree of pro-cyclicality of Trinidad and Tobago in relation to the Latin American and Caribbean region LACit is considered alarmingly profound. The moral of the story is that in order to measure the effectiveness of fiscal policy we should look to cyclically adjusted measurements, especially in the case of resource dependent countries like Trinidad.
Recently the government had been trying to move towards a counter cyclical fiscal policy which proves to be a considerable challenge. We see that in its management of debts and taxes.
The government consciously chose for deficit spending until as a measure to return to pre-crisis growth rates. Deficit spending refers to a situation in which government spending exceeds tax receipts.
There are conditions attached to this, namely that there should not be a structural deficit. The basic idea is that the government should run a deficit in times of economic downturn to compensate for the shortfall in aggregate demand, but run surpluses in boom times so that there is no net deficit over an economic cycle.
There is a certain degree of unease among oppositional political groups about the medium term future of the structural debt. According to the Budget Statement this expenditure was necessary to prevent the economy from slipping back into a financial and economic crisis.
This gives the government a great degree of economic sovereignty in controlling the local currency. Trinidad and Tobago has improved its remarkably weak and outdated tax regime, but still has a long way to go. Despite the introduction of new tax technology, there still is a lack of qualified staff to manage it.
Apart from the actions already undertaken to improve the overall tax regime, the budget statement specified the areas of further action:We are delighted to welcome Ashgate Publishing and Gower books into the Taylor & Francis Group.
This report, based on the Private Sector Assessment Report for Trinidad and Tobago, was formatted and edited by The Economist Intelligence Unit at the request of the Compete Caribbean Program, but was not authored by .
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Capital: Port of Spain, Trinidad Population: Trinidad and Tobago's population stands at 1,, People of African and Indian descent comprise the majority of the population, with people of mixed race, European, Chinese and Middle Eastern ancestry adding diversity to our ethnic mix.
Trinidad and Tobago (/ ˈ t r ɪ n ɪ d æ d t ə ˈ b eɪ ɡ oʊ / (listen), / t oʊ-/), officially the Republic of Trinidad and Tobago, is a twin island sovereign state that is the southernmost nation of the West Indies in the Caribbean.
The Trinidad and Tobago Electricity Commission was established as a Statutory authority in and operates under the Trinidad and Tobago Electricity Commission Act Chapter which was revised in to allow the partial divestment of its generation assets.