Almost without exception, all Caribbean countries are net importers of technology, especially ICT. In other words, we import considerably more of the ICT goods and services we use than we export. With Vashti Maharaj, the Adviser, Digital Trade Policy, of the Commonwealth Secretariat, we discuss technology as an export and how Caribbean countries can better develop this increasingly crucial aspect of their economy. Some of the areas covered include: defining the concept of technology as an export; factors hindering the growth of the technology export sector in the region; important trade agreements that can benefit Caribbean technology exporters; and advice she would give to a Caribbean tech entrepreneur looking to expand internationally.

 

This episode is also available on SoundCloud, Apple Podcasts, Spotify and Amazon Music!!

Technology exports have become a cornerstone of global trade, contributing significantly to countries’ economic growth and development. Several longstanding studies have pointed to the connection between a country’s product and export composition and its development trajectory. Key findings include:

  • A positive relationship exists between exports and economic growth. Countries that successfully export ICT-enabled goods and services can benefit from increased foreign exchange earnings, job creation, and technological advancement
  • Increased economic resilience, due to export diversification, that can help countries reduce their vulnerability to fluctuations in global markets
  • Countries can command higher prices, by producing when more complex products that tend to result in higher value-added exports.

To an appreciable degree, most Caribbean countries have not developed their technology export segment – although they aim to achieve developed nation status in the not-too-distant future. Thus, it appears that we are ‘leaving money on the table’, by not expanding our export portfolio to include more technology-intensive, high-value and sophisticated goods and services, which can accelerate our economic and social development.

To be clear, it is unlikely that the Caribbean region can compete with existing, cheaper and well-established locations operating in the technology manufacturing space, in particular. However, manufacturing is just a sliver of that market. The development of technology or ICT-enabled products and services is a considerably wider segment that we have not fully explored.

 

Introducing our guest

Vashti Maharaj

Vashti Maharaj currently serves as Adviser, Digital Trade Policy in the Commonwealth Connectivity Agenda Section in the Trade, Oceans and Natural Resources Directorate of the Commonwealth Secretariat where she primarily focuses on advancing the Commonwealth’s work on digital trade and works as part of a multidisciplinary team to deliver the goals of the Commonwealth Connectivity Agenda for Trade and Investment.

For the past decade, she has worked extensively on national and regional projects in the primary areas of e-governance, electronic commerce, telecommunications, data protection, intellectual property and cyber security from a policy and regulatory perspective. She has been involved in projects led by the International Telecommunications Union, the Caribbean Telecommunications Union, the World Bank as well as Commonwealth Connects and is also a member of the University of Oxford, Cyber Security Capacity Building Centre’s Working Group on Cybersecurity, Policy, Legal and Regulatory Environment, Vice-Chair of the Legal Reform Advisory Board of the International Chamber of Commerce as well as Vice-Chair of the Pacific E-commerce Development Partners Sub-Committee.

 

Insights into our conversation

When thinking about technology exports, it is easy to fall into the trap of thinking about it in terms of manufacturing: producing computer chips or assembling electronic devices for export; or the offshore outsourcing of services, such as call centres or business processes, which has become an increasingly important industry in many Caribbean countries. However, technology as an export is defined more broadly than that: as the sale or transfer of technological knowledge, products, or services to another country.

Through that lens, and as the conversation with Vashti emphasises, almost any product or service that leverages technology for sale outside of one’s home country could be defined as a technology export. Moreover, it suggests that Caribbean countries have not even begun to scratch the surface of the opportunities – and possibilities – that exist. However, it also means that we need to be intentional about improving our enabling environment locally to allow entrepreneurs and businesses to thrive at home and not have to emigrate to more supportive locations.

Below are some of the questions posed to Vashti that drove our conversation.

  1. How would you define the concept of technology as an export, and how have these exports evolved over the last decade?
  2. Are there any statistics on Caribbean technology exports?
  3. Regarding the call centre and BPO industry, although there is technology sophistication in that environment, it does not appear to reflect on society as a whole. What do you think?
  4. Are there trends of which we should be aware that would allow us to better harness our potential?
  5. What are the key factors hindering the growth of the technology export sector in the Caribbean?
  6. What are key trade agreements and initiatives that can benefit Caribbean technology exporters?
  7. What advice would you give to a tech entrepreneur in the Caribbean looking to expand internationally?

 

We would love to hear your thoughts!

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Also, if you or a member of your network is interested in joining us for an episode, do get in touch.

Let’s make it happen!

 

Select links

Below are links to some of the organisations and resources that either were mentioned during the episode, or otherwise, might be useful:

 

 

Images credit:  Commonwealth Secretariat; Gerd Altmann (Pixabay); myUKhub2 (Pixabay);  Frimufilms (Freepik) 

Music credit: The Last Word (Oui Ma Chérie), by Andy Narrell

Podcast editing support:  Mayra Bonilla Lopez