In a stark assessment of Trinidad and Tobago’s economic landscape, Dr. Fuad Khan delivers a piercing critique of the nation’s private sector, revealing what he describes as a fundamental transformation from development partner to permanent state client.
The analysis identifies a structural condition where private sector performance has become intrinsically tied to government spending patterns rather than market innovation. When state expenditure contracts, business confidence plummets; when government spending flows, temporary growth emerges. This dependency cycle signals a profound dysfunction within TT’s economic framework.
A truly independent private sector typically drives progress through anticipating demand, investing ahead of policy developments, and competing internationally. However, Dr. Khan observes that TT’s business community increasingly organizes strategies around public procurement cycles, tax concessions, and regulatory protections. Lobbying has effectively replaced innovation as the primary business strategy, while compliance has superseded creativity.
This dependency manifests across multiple sectors. Construction and infrastructure activities fluctuate directly with government capital expenditure. Energy services discussion about diversification rarely translates into action without state financing guarantees. Financial sector innovation remains superficial with minimal focus on funding productive enterprises. Retail and distribution sectors prioritize protected domestic markets over regional expansion.
The consequences are measurable and severe: minimal research and development investment, weak export capacity, stagnant productivity growth, and lagging technology adoption. These indicators reflect a business culture that favors insulation over innovation, ultimately creating a self-reinforcing cycle where navigating institutional weaknesses becomes a competitive advantage.
Young and innovative enterprises suffer most acutely in this environment, lacking the political access, legacy scale, or financial leverage to compete effectively. Many stagnate, relocate, or never launch, resulting in lost economic dynamism replaced by the illusion of stability.
While government policy enabled this dependency, Dr. Khan emphasizes that the private sector actively embraced it. The choice to abandon export ambition, underinvest in technology, and accept protection represents a voluntary surrender of competitive spirit.
True economic transformation requires a fundamental shift toward exports, technology investment, skills development, regional integration, and genuine competition. This transition will inevitably involve failure, consolidation, and discomfort—but remains essential for sustainable growth. Until TT’s private sector chooses independence over access, it will remain a client rather than a leader in national development.