Chapter 14 the Way Forward

8/16/2019 Chapter 14 the Way Forward

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The Way ForwardThe Way Forward

IOB: CaribbeanSociety and Business

Mary K King

March 2005


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The Present SituationThe Present Situation

he !cono"y o# $ at the "o"ent is broad%y de#ined as

Modern day &%antation 'ith the oi%/gassector being the "ain earner o# #oreigne(change and contributor to )*&

oday ho'e+er, the oi%/gas sector does not -ro+ide "uch e"-%oy"ent. o# the%abour #orce


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!arnings o# this o##shore sector su--ortsin the "ain the co""ercia% and industria%

acti+ities o# the onshore sector A sustainab%e econo"y is de#ined by the

&3AMI* o# acti+ities that start at the to-'ith research and de+e%o-"ent 'hich

s-a'ns ne' ideas and in+entions, hencene' I& and the acco"-anying #ir"s thatcreate e"-%oy"ent


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A sustainab%e econo"y then goes through theA sustainab%e econo"y then goes through the+arious %ayers o# the &3AMI* #ro" research+arious %ayers o# the &3AMI* #ro" research

and de+e%o-"ent do'n'ards throughand de+e%o-"ent do'n'ards through -ro#essiona%s, inno+ators, entre-reneurs and -ro#essiona%s, inno+ators, entre-reneurs and#ina%%y to se"i and nons4i%%ed 'or4ers#ina%%y to se"i and nons4i%%ed 'or4ers

In $ today this &3AMI* is truncated and atIn $ today this &3AMI* is truncated and at

the -%ateaus to- is the energy sector togetherthe -%ateaus to- is the energy sector together'ith the traders, o-erators, construction,'ith the traders, o-erators, construction,"aintenance and the asse"b%y o# the onshore"aintenance and the asse"b%y o# the onshoresector sector


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Both the onshore and %oca% energy sector acti+itiesBoth the onshore and %oca% energy sector acti+itiesare characterised by noninno+ation dri+enare characterised by noninno+ation dri+en

e"-%oy"ent and entre-reneurshi-e"-%oy"ent and entre-reneurshi-

ence the a"ount o# I&, -atents and co-yright #orence the a"ount o# I&, -atents and co-yright #orso#t'are etc7 is +irtua%%y none(istentso#t'are etc7 is +irtua%%y none(istent

I# #or any reason the energy sector 'as to co%%a-seI# #or any reason the energy sector 'as to co%%a-se

#or a sustained %ength o# ti"e 8as it did a#ter the#or a sustained %ength o# ti"e 8as it did a#ter the190s boo"; the econo"y 'i%% i"-%ode7 he190s boo"; the econo"y 'i%% i"-%ode7 he+o%ati%ity #unds 'i%% at best %ead to a so#t %anding+o%ati%ity #unds 'i%% at best %ead to a so#t %andingto -o+erty7to -o+erty7


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PatentsPatents

A &atent is a docu"ent, issued u-on a--%icationA &atent is a docu"ent, issued u-on a--%ication by a go+ern"ent o##ice or a regiona% o##ice acting by a go+ern"ent o##ice or a regiona% o##ice acting

#or se+era% countries 'hich describes an#or se+era% countries 'hich describes anin+ention and creates a %ega% situation in 'hichin+ention and creates a %ega% situation in 'hichthe -atented in+ention can nor"a%%y be e(-%oitedthe -atented in+ention can nor"a%%y be e(-%oited'ith the authorisation o# the o'ner o# the -atent7'ith the authorisation o# the o'ner o# the -atent7

An in+ention is a so%ution to a s-eci#ic -rob%e"An in+ention is a so%ution to a s-eci#ic -rob%e"in the #ie%d o# techno%ogy and "ay re%ate to ain the #ie%d o# techno%ogy and "ay re%ate to a -roduct or -rocess -roduct or -rocess


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PatentsPatents

he o'ner is not gi+en the right to -ractice herin+ention she has the right to -re+ent others #ro"co""ercia%%y e(-%oiting the in+ention7 he -rotection is usua%%y %i"ited to 20 years

he State "ay gi+e -atent rights but does notauto"atica%%y en#orce the"7 It is u- to the o'nerto bring an action #or in#ringe"ent o# her rights7

So"e countries gi+es -rotection under


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opyri!htopyri!ht

Co-yright dea%s 'ith #or"s o# creati+ity -ri"ari%y'ith a%% #or"s o# -ub%ic co""unication, -rinted,sound and te%e+ision broadcasting, #i%"s and a%so

co"-uterised syste"s #or the storage and retrie+a%o# in#or"ation7 So"e countries 8inc%7 $; -rotects so#t'are by co-yright7 Co-yright -rotects on%y the #or" o# e(-ression o#

the ideas and not the ideas the"se%+es7 hecreati+ity -rotected is in the choice andarrange"ent o# 'ords, "usica% notes, co%ours7Co"-uter -rogra"s etc


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opyri!htopyri!ht

he %a' -rotects the o'ner against those'ho 'ou%d ta4e and use the #or" in 'hich

the origina% 'or4 'as e(-ressed by theauthor 'ithout her authorisation

he 'or4 is -rotected irres-ecti+e o# its=ua%ity and she "ay use it as she 'ishesand "ay e(c%ude others #ro" using it7


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Trade$ar%sTrade$ar%s

A rade"ar4 is a sign that indi+idua%ises thegoods o# gi+en enter-rise and distinguishes the"

#or" that o# its co"-etitors7 he t'o as-ects o# the trade"ar4 are that it "ust

indicate the source o# the good and that itse-arates it #ro" others7

>I&O has used the conce-t as any +isib%e signca-ab%e o# distinguishing the goods or ser+ices o#an enter-rise #ro" those o# another


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Ser&ice 'ar%sSer&ice 'ar%s

hese are "ar4s that distinguish a"ongthe di##erent ser+ices such as insurance

co"-anies, car renta% #ir"s, air%ines etc7hey #u%#i%% essentia%%y the sa"e #unction

#or ser+ice as trade"ar4s do #or goods7

hese "ar4s can be registered, rene'edand cance%%ed7 A%so they can be assignedand %icensed7


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ollecti&e 'ar%sollecti&e 'ar%s

A Co%%ecti+e Mar4 "ay be o'ned by anassociation 'hose "e"bers "ay use the co%%ecti+e"ar4

hese "ar4s "ay be used by an enter-rise inaddition to its o'n trade "ar47

Co%%ecti+e "ar4s -%ay an i"-ortant ro%e in the -rotection o# custo"ers against "is%eading

-ractices hese "ar4s are ad"itted #or registration in

countries other than the country o# theorganisation that o'ns the "ar4


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erti(ication 'ar%erti(ication 'ar%

his Certi#ication Mar4 can on%y be usedin connection 'ith standards7

his di##ers #ro" a Co%%ecti+e "ar4 in thatit can be used by anyone that co"-%ies'ith the de#ined standard

he organisation that a--%ies #or the "ar4

"ust be co"-etent to certi#y the -roductsconcerned and beco"es the re-resentati+e#or the -roducts that bear the "ar47


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Industrial )esi!nsIndustrial )esi!ns

An Industria% *esign in the %ega% sense is theright gi+en, -ursuant to a registration -rocess, to

-rotect the origina% orna"enta% and non#unctiona% #eatures o# an industria% artic%e or

-roduct that resu%t #ro" a design acti+ity

Since +isua% a--ea% is one 'ay a consu"er

chooses a -roduct this -rotection ser+es as ani"-ortant #unction o# -rotecting one o# thedistincti+e #eatures by 'hich an enter-riseachie+es "ar4et success7


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Industrial )esi!nsIndustrial )esi!ns

he design "ust be a--%ied to uti%itarian artic%es'hich distinguishes it #ro" co-yright 'hich re#ers"ain%y to aesthetic creations7

he rights o# the o'ner o# a registered industria%design accords to the o'ner the e(c%usi+e right to

-re+ent unauthorised e(-%oitation o# the design inindustria% artic%es

he o'nershi- o# the design %ies 'ith the e"-%oyero# the -erson 'ho does the design 'hether she is ane"-%oyee or a contractor7 he idea here is that thedesign is 'hat is being -aid #or, not the -roduct7


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Industrial )esi!nIndustrial )esi!n

It is 'orth noting that in the case o# acontractor "a4ing a -roduct and in so

doing i"-%e"ents a no+e% design o'ns thedesign since she 'as e"-%oyed to bui%d a -roduct to certain s-eci#ications7I# the -erson that did the no+e% design

'ere an e"-%oyee 'hose ?ob it is to dosuch 'or4 then the e"-%oyer o'ns thedesign 8e7g7 co"-uter so#t'are;7


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Inte!rated ircuitsInte!rated ircuits

he %ayout designs o# integrated e%ectroniccircuits is the -roduct o# the hu"an "ind and aredri+en by the need to reduce their si@e and

increase #unctiona%ity he in+est"ent re=uired #or co"ing u- 'ith the

design "ay be enor"ous 'hi%e the cost o#co-ying is s"a%%, hence -rotection is re=uired7

Such designs are -rotected #or at %east 10 years715 years "ay used by certain countries and thisright inc%udes artic%es incor-orating the integratedcircuits7


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The Inno&ation )ia$ondThe Inno&ation )ia$ond

he as4 ahead o# the $ econo"y is to bui%d the to- o# the &3AMI*, i7e to

-roduce the SM!s that uti%ise 4no'%edgeand inno+ation to generate =ua%ity ?obs andg%oba% co"-etiti+eness7

he country has to -ut in -%ace a Scienti#ic

Inno+ation syste"7his has a%ready been described as the

Inno+ation *ia"ond7


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his *ia"ond is "ade u- o# the #our +ertices,+i@, u"an 3esource de+e%o-"ent, Centres o#!(ce%%ence and Business *e+e%o-"ent


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Inno+ation based on 4no'%edge de-ends on thee(istence o# high%y educated and trained -eo-%ee7g7 uni+ersity graduates7

But the re=uired education/training shou%d not be'hat is ty-ica% in $, i7e7 the certi#ication o# our -eo-%e7

!ducation /training "ust be about doing and bui%ding #or econo"ic de+e%o-"ent7 Our traininginstitutions "ust be +ery c%ose%y a%igned toindustry, e(isting and -%anned7


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I is at the "o"ent ta%4ing about beco"ingstudent #riend%y, about beco"ing a"ong the bestin the 'or%d in research, about o##eringconsu%ting and contract research to the region tohe%- in de+e%o-"ent, about earning "oney tohe%- -ay its o'n 'ay7

I has not yet begun to ta%4 about the -art ithas to -%ay in the Inno+ation *ia"ond nor thecreation o# the "ar4et it thin4s e(ists in theregion7


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Is -ro-osed su--ort #or the region is not

re=uired since industry at the -%ateau o# thetruncated &3AMI* does not re=uire research andde+e%o-"ent, and I is %oo4ing at its in+o%+e"ent'ith in'ard %oo4ing eyes, earning inco"e7

!cono"ic de+e%o-"ent in the region is about the

creation o# ne' SM!s that "ay %oo4 to the -%ateau#or e%e"ents o# the test "ar4et7

I or e+en


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entres o( *+cellenceentres o( *+cellence raditiona% uni+ersity graduates e+en i# they are 'e%%

trained 'i%% not on their o'n create the co""unity o#scho%ars and inno+ators re=uired #or the gro'th o# the&3AMI*7

Centres o# !(ce%%ence ha+e to be created that arec%ose%y a%%ied 'ith the uni+ersities, that source their

-eo-%e #ro" these graduates o# the uni+ersity andtheir "oti+ation #ro" the -ro#essors and researchersand +ice +ersa7

Centres o# !(ce%%ence ha+e to be s-ecia%istinstitutions that reduce the ris4 o# industria% research

and de+e%o-"ent and are direct%y re%ated to the -resent and en+isioned industria% sector hese Centres o# !(ce%%ence are a4in to the S7 Korean

industria% uni+ersities7


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entres o( *+cellenceentres o( *+cellence

But these Centres o# !(ce%%ence ha+e to be #ocussed on

+arious chosen sectors o# the econo"y7 As in Cuba they'i%% be o# the #o%%o'ing ty-es:

Areas in 'hich 'e intend to be 'or%d %eaders in3esearch. the ne' 4no'%edge to be used in inno+ation

In areas that 'e ha+e to i"-ort and/or %icense

techno%ogy that 'e can a--%y to create industria%a--%ications 'ith the ho-e o# creating -ro-rietarytechno%ogy as 'e de+e%o- g%oba% co" -etiti+eness7

In areas that 'e "ust 'or4 because o# our cu%ture orneed to be se%# su##icient because o# socia% or econo"ic

needs7


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entres o( *+cellenceentres o( *+cellence

We may wish to pause here todiscuss candidates for theareas mentioned.


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,usiness )e&elop$ent -nits,usiness )e&elop$ent -nits

!"erging #ro" the Centres o# !(ce%%ence there'i%% indeed be the source ideas that can be ta4ento "ar4et7 But 'hat is re=uired areinstitutiona%ised en+iron"ents that ares-eci#ica%%y designed to "a4e the transition #ro"4no'%edge to business o--ortunity7

he accent 'i%% be on integrated su--ort #orentre-reneurs to reduce cost and bui%d a #a"i%yo# interacting inno+ati+e entre-reneurs, ho-e#u%%y%i4e 'hat e+o%+ed in Si%icon a%%ey o# the


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>hat is en+isioned is not a hard boundary bet'een the Centres o# !(ce%%ence and theBusiness


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.enture apital.enture apital

enture ca-ita% as re=uired 'i%% be necessari%y highris4 #unding7 raditiona%%y our #inancia% sector hashad no e(-erience 'ith this 4ind o# #unding and has

#unded business "ain%y +ia debtOur Stoc4 Mar4et has not -ro+en to be the -%ace to

raise ca-ita% and its second tier has one #ir" on it at -resent7 Both Singa-ore and S7 Korea ha+e #ound it necessary

to in+o%+e their go+ern"ents in the -ro+ision o#enture Ca-ita% #unds 8as "uch as 60 o# a+ai%ab%e#unding;7 In this 'ay the ris4 is s-read o+er thecountry as a 'ho%e7


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.enture apital.enture apital

Another source o# #unding is +ia e(isting -%ateau#ir"s that are unab%e to change their industria%cu%ture to get in+o%+ed in inno+ati+e acti+ities7ence they "ay be ab%e to s-onsor SM!s +ia a+aried suite o# #unding instru"ents7

he business units 'ou%d be o# he%- to such #ir"sin i"-ro+ing the e##iciency o# the use o# its #undsin de+e%o-ing entre-reneuria% ideas7

Such sche"es #a%% under the heading o# Cor-orate

enturing, a suggestion no' be#ore our&ar%ia"ent, sta%%ed ho'e+er since the -resententure Ca-ita% Act see"s unab%e toacco""odate it7


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The Test 'ar%etThe Test 'ar%et

ou 'i%% reca%% that &orter -%aced a signi#icanta"ount o# i"-ortance on the %oca% "ar4et7o'e+er $s "ar4et is s"a%% and 'ays "ust

be #ound to "agni#y its i"-act7

But e+en in its s"a%%ness it ser+es a re%ati+e%y%arge *I energy sector that at -resent attractsinternationa% ser+ice industries at the cuttingedge o# techno%ogy7 urther $ is not the #irstchoice o# *I to -ro+ide these ser+ices either

because o# custo" or %oca% ine(-erience7

/ l t t/ocal ontent


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/ocal ontent/ocal ontent

Co""ent has a%ready been "ade on the $s)o+ern"ent intention to #aci%itate the use o#%oca% content in the energy sector7 As a

-rere=uisite to this is the renegotiation o#agree"ents it has "ade 'ith the O so

as to #a+our its %oca% institutions o+er others7 hese ideas ha+e to be e(-anded to the areas

concerned in the econo"ic de+e%o-"ent o# thecountry7

or e(a"-%e concessions ha+e to be o##ered tothe 'or%d c%ass industria% -%ayers %ocated in $and the region to use the -roducts and ser+ices o#the Centres o# !(ce%%ence and their re%ated

business


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The Pilot FishThe Pilot Fish

But, as is Singa-ore, $ is situated in an area'ith a %arge "ass o# -eo-%e around it, theA"ericas 8north, South and Centra%; and theCaribbean7

So"e o# these countries are in+estors in $a%ready, hence any -roducts and ser+ices 'e "ay be ab%e to se%% to the" %oca%%y cou%d ha+e a"ar4et i"age beyond our shores7

But of particular significance is attractingventure capital from abroad to start up firms inT&T (via the business units) that have marketsthat span the globalised region.


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The Pilot FishThe Pilot FishMany countries are bui%ding industria% -ar4s 'ith the

ho-e that the MCs 'i%% estab%ish industria% -resencesthere7


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0 .enture apital Par% 0 .enture apital Par% !+ery sing%e #ir" in the 'or%d today has to

continue to inno+ate i# it is to re"ain co"-etiti+e7 Inno+ation is -eo-%e intensi+e and the cost o#

hu"an resources in the de+e%o-ed 'or%d is high

and e+en "ore so #or de+e%o-ers and researchers7ence 'e in $ shou%d be %oo4ing to attract

both ca-ita% and co"-anies to start ne' SM!s in$ 'here our contribution is 'e%% trained sta##and good in#rastructure at >a%%er#ie%d7

C%ear%y co"-anies to "a4e a%u"iniu" 'hee%s, do"edica% transcri-tion and do'nstrea" "anu#acturing at >a%%er#ie%d are +isions o# a -ast age7


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0 .enture apital Par% 0 .enture apital Par%

Let us pause here again tobrainstorm as to what kind of

firms we should attract at theWallerfield ! "ark sinceclustering is the key to sustaineddevelopment .


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0 .enture apital Par% 0 .enture apital Par%

he -otentia% in+estors 'i%% not co"e to $ totrain our -eo-%e hence 'e ha+e to train the"ourse%+es7

>e cannot e(-ect to train our -eo-%e i# 'e do notstretch the"7 hey ha+e to atte"-t -ro?ects thatthey ha+e ne+er done be#ore7

>e ha+e to reduce se+ere%y our de-endence on

consu%tants 'ho "ay ha+e done it be#ore but 'hodid not see it #it to %oo4 #or outside he%- 'hen it'as needed in the #irst instance in their countries7

Waller(ield . Par%Waller(ield . Par%


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Waller(ield . Par%Waller(ield . Par%

o' do 'e bui%d a igh ech &ar4 by si"-%y

-aying #or the in#rastructure 'ithout 'e ourse%+es bui%ding and inno+ating to -ro+ide both goodser+ice and e(-erience #or our -eo-%e7

)ood te%eco""unications are o# i"-ortance to the

country in these days o# g%oba%isation7 But ho' can'e bui%d our broadband net'or4 by using orthA"erican consu%tants and construction #ir"s7 >e'i%% get the techno%ogica% arte#acts but not i"bibethe techno%ogy and the abi%ity to inno+ate7

&ub%ic te%eco""unications is no' the do"ain a%%o+er the 'or%d o# the su-er co"-anies7 >hat is ourro%e as entre-reneurs and inno+ators in thisen+iron"entD


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'ana!e$ent o( the Inno&ation'ana!e$ent o( the Inno&ation

Syste$Syste$he dis-arate +ertices o# the Inno+ation

Syste" needs so"e coordination i#

anything use#u% is to co"e about7or e(a"-%e the enture Ca-ita% Act 'as

su--osed to encourage C ir"s that'ou%d ha+e s-a'ned SM!s7

othing ha--ened and neither #ir"s nor"oney beca"e a+ai%ab%e7


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'ana!e$ent o( the Inno&ation'ana!e$ent o( the Inno&ation

Syste$Syste$ he SB*C and it e+o%utions 'ere su--osed to

s-a'n s"a%% and "icro enter-rises, nothing use#u%as #ar as g%oba% co"-etiti+eness has ha--ened7

he go+ern"ent -rocure"ent -o%icy is su--osedto s-a'n SM!s but it a--ears to be re%ated to as"a%% -art o# standard -urchases7

I shou%d -%ay a #unda"enta% -art in thisecono"ic restructuring but to date I has notgot the -oint7


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'ana!e$ent o( the IS'ana!e$ent o( the IS

Eoca% content in the energy sector does not a--earto be %oo4ing at i"-ro+ing the econo"ic #actors o#the country

>a%%er#ie%d &ar4 and the


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)o+ern"ent has not a--reciated that it has to be a"a?or in+estor in enture Ca-ita% resources7

ence the Manage"ent o# the IS re=uires a coordination a"ong a%% #our o# the +ertices o# the Syste"7

A c%ear +ision has to be articu%ated to the a%%er#ie%d &ar4 has to be gi+en the direction in

concert 'ith the IS7 egotiations ha+e to be started 'ith the +arious trade

bodies and %egis%ation -ut in -%ace to i"-%e"ent the"ar4et conditions, and concessions7


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We have seen in two of our ma#ore$amples% ingapore and . 'orea% and to

a lesser e$tent in reland that the government had to take a decisive role inmanaging the economic restructuring ofthe country. ur private sector does nothave the e$perience to make the diamondwork% and in the past have taken the easyway out. ur future then is in the handsof the public sector decisions.

ari11ean ,usiness andar ean us ness an


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ari11ean ,usiness andar ean us ness anSocietySociety

This Course has been about the ideas that Ihave been developing over many years andhave had the opportunity to discuss them inthe press.

This class has given me the idealopportunity to discuss them with a group ofvery intelligent people but moreso a group

of people that can do something aboutmaking the economic changes that arenecessary.


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ari11ean ,usiness andari11ean ,usiness and

SocietySociety

*ll that is left for me to do is wish that youen#oyed this rather intensive set ofsessions and that you do well in your

e$ams.

Thank +ou.

Documents

Chapter 14 the Way Forward