Role of Entrepreneurship in Mayaro and Point Fortin

8/6/2019 Role of Entrepreneurship in Mayaro and Point Fortin

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THE FACTOR OF THEROLE OFENTREPRENEURSHIP INTHE COMMUNITIES OFPOINT FORTIN ANDMAYAROECONOMIC ASSESSMENTOF DUTCH DISEASECOMMUNITIES

The economic factors of production have experiencednegative fluctuations due to the

presence of the paradox of plenty in these communities.These effects can be minimizedvia the development of entrepreneurship in the areaswhich can be encouragedthrough private and governmentinvestments into the varioustypes of capital.

Izraeel Khan11/3/2011


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INTRODUCTION

It can be realized that the determination of the suitability of the establishment of the localizationof a physical location for the development of a business is dependent on the quantity and themagnitude of the effects of the measure of positive enhancement and sustainability forecasted.Concomitantly, the adverse or negative attributes of the utilization of a specified area of localization is also analyzed and compared to the presence of possible advantages. Generally,theres the existence of four main factors of production: identification of land space, presence of a labour force (skilled and unskilled), capital (financial, social etc) and very importantlyentrepreneurial talent . Theres the realization that the fourth factor of production experiences theutilization of an amalgamation of the listed remaining factors. Consequently, it is apprehendedthat the possibility for the extraction and satisfaction of the demands of these variable factors of

production can result in the generation of a highly efficient and even effective business strategic plan.

Consequently, in this literature theres the concentration or emphasis in the avenue of the selection of suitable physical localization where theres sizeable provision of the factors of production in appropriate quantities such that theres maximization of profit within the businessi.e. marginal costs are equivalent to marginal returns . In this literature theres the presentationof two areas of location i.e. Point Fortin and Mayaro where theres the execution of a feasibilityanalysis of each individualized area.

CHARACTERISTICS ADVANTAGEOUS OF POINT FORTIN LOCALIZATION

Firstly, in respect to the region of Point Fortin theres an analysis of its land space (first factor of production). Point Fortin has narrow elongated shape with a north-east to north-west axis. Ithas a coastline of approximately 10 kilometres and comprises a total area of approximately 2388hectares... (Borough of Point Fortin Final Draft Municipal Development Program by All Inclusive Development Services Limited*). Conversely, this physical region has topographicalcharacteristics of minimal anticlines and synclines where the land formation is predominantlylevel and low lying in nature with about 80% being lower than 75 feet (*). As a result, the

presentation of a generally physically suitable environment in terms of its physical layoutdemonstrates the possibility for the construction of the fast food business (even in sizeable

proportion).

Secondly, theres the analytical apprehension of the identification of the potential magnitude of the labour force present in the region based on the amalgamation of certain contributors such as

population density, the birth rate, increase in the quantity of working female individuals andnegative factors such as the death rate, infant mortality rate, quantity of individualsinstitutionalized in hospitals and even the measure of the level of the crime rate (murder rate andrate of criminal arrests) displayed in the communities of Point Fortin and surrounding environs.

It can be recognized as according to Appendix #1 that theres the following apprehension:

Q = f 1 (k. ( APF) [equation #1]

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ID NUMBER: 9970 NAME: IZRAEEL K


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Q = f 1 {k. f (T PF, - DR, - CR, - IMR, BR, RI, )} [equation #2]

Consequently, it can be observed that the generalized production output of a business isdefinitely dependent on certain primary factors such as the selected areas total available

population capacity which is the resultant effect of the combination of the total populationcapacity and the negative and positive contributors as listed above in detail. In relation to thestatistical population capacity analysis of Point Fortin, the Population Census in the year 2000registered approximately 19,056 persons which accounted for 1.5 % of the nations total

population capacity. The largest percentage magnitude contributor of Point Fortins populationcapacity was Point Fortin South i.e. 52 % as indicated diagrammatically in Appendix #2.Conversely, in the year 2000, the labour force magnitude in Point Fortin generated 64% of thenon-institutional population as within a six year period i.e. from the year 2000 to 2006 there wasa diminution in Point Fortins unemployment rate magnitude from 20.7 % to 8.9 %. Theres eventhe postulation that theres a projected population increase in capacity of approximately 6000

persons within the time period line from the year 2000 to 2020 i.e. from a registered value of 19,036 persons in the Borough of Point Fortin in the year 2000 to approximately 25,000 personsin the year 2020. The statistical representation of the population distribution of the communitiesof Point Fortin and its respective projection can be indicated in a tabulated format in Appendix#3. Definitely, the increase in the propensity for an abundant workforce in the recent years in thearea of Point Fortin presents the possibility for the efficient and effective growth of an infant

business (in this scenario reference to food business) in two major aspects: the ready availabilityof labour resources and the possibility of significant demand for the business goods i.e. the

propensity for the development of recognizable profit values through the presentation of thetrend in increasing population growth rate of Point Fortin (large target market) . It can be noted that theres the projected possibility of maximization of profit for an infantbusiness in the year 2011 where the population capacity and consequently the population density is at maximum

position (in accordance with equation #1).Thirdly, theres the presentation of the availability of development and sourcing of alternatecapital formations such as mainly human capital where theres the existence of increased levelsin the generation of a greater percentage of educated and skilled individuals in the Point Fortin

population as indicated in Appendix #4 . The statistical data suggests the increase in the quantityof students with pass rates in Mathematics and English which can signify the presence of anincreased intellectually competent labour force. Conversely, in relation to the infrastructural capital integrity of Point Fortin its an urban centre whose form is structured bycommunitycharacteristics, open space system, and road networkbinds the development clusterstogether (*). Theres the realization from a simplistic factual analysis of Point Fortin thatthe Downtown District is actually the Boroughs centre hub of commercial activities as it

possesses a high quanta of vehicular and pedestrian traffic as diagrammatically indicated inAppendix #5. It is theoretically postulated that the possibility of the maximization of profit andrevenue earnings of the proposed fast food business can definitely be attained through thelocalization of the business in the Downtown District.

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CHARACTERISTICS DISADVANTAGEOUS OF POINT FORTIN LOCALIZATION

The Borough of Point Fortin has been analyzed to have generated several inconsistencies or definitely observable deficiencies which have developed throughout the recent years due to aninadequacy in the sustainable development of major sectors such as infrastructural, social andeconomical growth of the region. In other words, the major advantageous attributes of PointFortin as the prime location for the initialization of a business development are contested bythe present inefficiencies constructed due to ineffective management, development and eveninadequate government spending or privatized investments in the specified sectors as described

below.

Firstly, theres the necessity for the enhancement of the infrastructural capital in terms of the provision of health, safety and convenience of the population (*). In other words, theresthe requirement for the initiation of greater quanta of private investments or governmentspending directed towards the overall infrastructural development of the community such as theincreased generation; efficient hospitals (sufficiently equipped technologically to matchincreasing population), parks, restaurants, shopping centres, cinemas, cultural centres etc.Presently, theres the evidence of aging infrastructure within the Borough.

Secondly, theres the development of inefficiencies or even deficiencies in specified social programmes where theres the reduction in the quantifiable measure of opportunities presentedfor educational advancement, effective / efficient healthcare and the rate of development of sufficient quanta of households unsuitable to the rate of the Boroughs population growth. Theincreasing possibility of insufficient quantity of homes constructed compared to its populationdemand can result in an amplification of the poverty rate . Consequently, theres the

predictability of an increase in the Boroughs crime rate level and magnitude of squatting. Itcan be logically deduced that the significant poverty levels exhibited in these communities are

the direct result of several salient factors such as price inflation of goods especially agricultural produce caused by the Dutch Disease Syndrome (Appendix # 6), increased unemploymentlevels and even to a lower degree the increased levels of institutionalized percentage of the

population Conversely, the educational standards of the labour force can eventually experience adiminution futuristically provided that the rate of the production of homeless families becomesa significantly comparable to the rate of the generation of graduates from the surroundingeducational institutions.

Thirdly, theres the development of intensified concentration of business and communityfacilitations in the regional areas of Point Fortin Proper which has resulted in the fabrication of two main deficiencies: the presence of pedestrian and vehicular traffic or congestion in theCentral Business District of Point Fortin Proper and the minimal or insufficient generation of modernized facilities in the surrounding regions of the Borough. As a result, this inefficiency is adefinite impediment in the attraction of foreign and even domestically based investors as the rateof return on investments (ROI) as depicted by the measure of the rate of flow of customers isseverely hampered or reduced.

Most importantly, it is apprehended that Point Fortin has definitely developed an economicdeprivation for diversification or variability in the fabrication of an efficient economic basedue to the Boroughs concentrated reliance on its sustainability via the development and

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expansion of the petroleum sector (Dutch Disease Syndrome). The petroleum industry hasdeveloped the pronouncement of an oil mentality culture within the community which hasfabricated negative repercussions in many aspects:

The petrochemical industry has executed or initiated minimal CSR (Corporate SocialResponsibility) activities in recent times in Point Fortin where theres a lack of investments of hotelling rents by these multi-national companies into the developmentof the social capital which embraces essential factors of economic production andsocial lifehuman health, literacy and life expectancy, cultural and social integrityand social cohesion (Framing Corporate Social Responsibility and Contribution toSustainable Development, Werner Hediger) of the local community. It can be stated thatin relation to the Projects Managers comments, The companies in the sample spent over $54 million on external social and environmental programmes per annum, but existing programmes are not aligned with the countrys development goals .

Theres the recognized gravitation of a significant percentage of the labour force of the Borough directed towards the oil sector due to the presentation of highly attractivewage offerings as indicated in Appendix #7. Consequently, theres the development of the reduction in the employment levels of the alternate sectors [non-tradeable (NT) andnon-boom tradeable sector (NBT)] within the community due to the resourcemovement effect of the labour force towards the oil sector as indicated by the DutchDisease Model proposed by Corden and Neary in Appendix #8. This trend is supported

by increased unemployment levels developed within the community as observed inAppendix # 9 .

The detailed attributes (advantageous and disadvantageous) of Point Fortins localization can be

further analyzed in Appendices #10, 11 and 12.

PROPOSITIONS OF THE SUITABLE ENHANCEMENTS OF THE ATTRIBUTES O FPOINT FORTIN LOCALIZATION

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Theres the development of several designated propositions as presented in this literature whichcan be utilized in Point Fortins capital and labour development such that positive impacts suchas the generation of increased entrepreneurship can be recognized:

The possible increase in the quanta of government injections or investments (G) into thedevelopment or fabrication of enhanced social and physical infrastructure / facilities. This

procedure follows the concept of the Hartwick Rule to a specified degree i.e. theresthe injection of a percentage of Hotelling Rents (R) into reproducible capital (K) astheres the resultant production of sustainable economy or specifically an enhancedefficiently designed infrastructural base within the communities of Point Fortin. Thisconcept can be indicated mathematically below:

Y = TE + R [equation #3]

where, Y = income / $

TE = transferred earnings / $

R = Hotelling Rents / $

The possible revitalization of the agricultural and manufacturing sectors which haveexperienced depletions in employment and output levels due to the resource labour movement effect of the Dutch Disease Syndrome.

The possible institution of an effectively designated direct route between San Fernandoand Point Fortin whereby theres the calculated reduction in traffic or vehicular congestion while concomitantly theres an increased influx of a customer base to the

various businesses localized in the communities of Point Fortin. The possible upgrading of presently located parks and recreation grounds while theres

the possible proposition of the generation of a golf course along with the fabrication of new theme parks as indicated in Appendix #13.

CHARACTERISTICS ADVANTAGEOUS OF MAYARO LOCALIZATION

Theres the apprehension of the fact that in the Mayaro municipality theres a large percentage of agricultural landscape which enables the possibility of the region to act prominently as part of the food basket of Trinidad and Tobago and as an important contributor of food security for the

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nation (Mayaro / Rio Claro Regional Municipality, Kairi Consultancy Limited ). Conversely,theres the realization that Mayaros coastal zone has been deemed as recreation corridor of south-eastern Trinidad (). Subsequently, the amalgamation of the attributes of the regionslandscape, seascape and relatively low population density has proven beneficial in the

possibilities for the enhancement of the resort tourism and even the ecotourism industries in thecoastal zonal region along the south-eastern border of Trinidad . Conversely, the topographicalcharacteristics of the Mayaro / Rio Claro region consists of basically low- lying to mildly slopinggradient with an excellent naturally designed drainage system caused by the existence of thePoole Ortoire, Pilote and Moruga Rivers. Consequently, it can be realized that this regiongenerates an excellent geographical positioning for fast food businesses as the customer flowrate can be impressively high based on seasonal demand i.e. during holidays, Easter and Carnivalweekends etc where theres reasonably high level of influx of foreigners or nationals. The regiondefinitely possesses the necessary land space (first factor of production) with viable opportunitiesfor investment in venture capitals.

Secondly, in relation to the second factor of production i.e. labour force magnitude, theres anincreasing population growth which is predominantly youthful in nature as theres the

possibility for vibrant workforce who possesses the energy and capacity for effective andefficient labour output given that the population magnitude is sufficiently educated and trained inthe relevant academic or kinestatic skill base. The population size therefore should experiencemaximum exposure to various categorizations of training which theoretically should be providedvia the state through the utilization of the fabrication of a sufficiency in the quanta of primary,secondary and tertiary level educational and vocational institutions. The population sizes of various communities in Mayaro / Rio Claro can be observed in Appendix #14. The increasedinvestment in entrepreneurial activities can therefore attain maximized profit margins throughthe utilization of relatively youthful workforce.

Conversely in recognition of the third factor of production which is the fabrication of capital(infrastructural) it can be realized that theres the existence of a series of beach houses which arelocalized along the south-eastern stretch of Trinidad which are purposely constructed for thefacilitation of the provision of relaxation / leisure. These facilities are targeted towards theoccasional tourists who are particularly present during vacation and national celebration periods(example Carnival), oil and gas labour force and nationals who are desiring break from the lifeof work (niche marketing).

CHARACTERISTICS DISADVANTAGEOUS OF MAYARO LOCALIZATION

Theres the realization of the fact that theres the existence of a similarity in the categorizationand level of detrimental impacts experienced in the regions of Mayaro and Point Fortin whichwere fabricated or stimulated via the insufficiency in the production of government funding and

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privatized or even venture capital operations. The analytical apprehension and observation of thealternate categorizations of negatively impacted trends associated with the underdevelopmentof Mayaros municipality can explicated in the following paragraphs.

Firstly, theres the immediate recognition of an overall poorly and an immensely inadequatelydesignated infrastructural capital construct which can be categorized into the classifications of institutional (predominantly medical), educational, recreational and physical developmentdeficiencies in the region. In relation to the production of medical services theres theobservation of an inadequately generated quantity of privatized and government hospitals,community clinics, doctors offices etc whereby the primary and secondary health careservices remain an issue with the need for a hospital to service the needs of the local populationand the oil and gas industry in cases of emergencies ( ). Consequently, the production of anincreasing population growth where the projected regions population capacity is 38,600 in the

year 2020 theres the high probability that the insufficient production of medical services canresult in the fabrication of an increased death rate and even infant mortality rate . Theseincreased population prohibitor rates can definitely negatively affect the labour forcemagnitude and consequently the economic efficiency and effectiveness of the existing businessesin the region as indicated in equation #2.

Theres the realization of the fact that theres an insufficiency in the quanta and quality of infrastructural capital in terms of the fabrication of medical, recreational and even educational

facilitation for the increasing population level of the region . It has been stated that in Mayaroprimary and secondary health care services remain an issue with the need for a hospital toservice the needs of the local population and the oil and gas industry in cases of emergencies(Mayaro / Rio Claro Regional Municipality, Kairi Consultancy Limited ). Conversely, theresthe necessity for the development of sport and recreational / leisure facilities such as cinemas,shopping malls, parks, promenades etc. in relation to educational facilitation theres an

inadequacy or even minimal presence of tertiary level institutions. As a result, theres thereduction in the capacity for the probable generation of sufficiently highly resourced and talentedhuman capital within the region. Consequently, the amalgamation of the insufficiency in thefabrication of the necessary infrastructural capital and minimal human capital resource base hasresulted in the presence of mainly dilapidated structural constructs with a generalizedtechnologically challenged population. In other words, in relation to the regions statisticalanalysis of the populations income distribution theres the apprehension that labour force ismade up principally of agricultural workers and workers in elementary occupations together accounting for over 40 percent of the workforcealso noted womenwere more dominant asclerks and as service workers ( ).

PROPOSITIONS OF THE SUITABLE ENHANCEMENTS OF THE ATTRIBUTES O FMAYAROS LOCALIZATION

Theres the development of several designated propositions as presented in this literature whichcan be utilized in Mayaros capital and labour development such that positive impacts such asthe generation of increased entrepreneurship can be recognized. :

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Theres the emulation of the first objective as explicated in the list of propositions for theenhancement for Point Fortins localization. In other words, theres the necessity for theutilization of a percentage of the Hotelling Rents attained by the relatively largeextractive industries in the fabrication of infrastructural capital such as governmental hospitals, privatized medical facilities, sporting facilities, secondary / tertiaryeducational institutions and training centres .

Theres the necessity for the development of an enhanced trade infrastructure such as the presence of efficiently designed and effectively mapped-out road networks and bridgeslocalized within the communities of Mayaro and even Guayaguayare (consideration for the percentage of the population workforce of Mayaro that are sectioned in the oil andgas industries). The quality and quantity of road networking systems can definitely affectthe GDP (Gross Domestic Product) of the community and consequently the profitmargins of entrepreneurial activities concentrated in the area as indicated in Appendix#15 and the finalized result is shown below:

E.G = M x [ + {kp 1[(L n)] + kp 2[(L n)] + kp X[(L n)] }] + TR (virtual services) + I + G +X

Theres the requirement of the revitalization of the agricultural and fisheries sectors inMayaro as these sectors have experienced deficiencies in productivity and employmentlevels due to the negative impacts of the Dutch Disease Syndrome in Mayaro.

The detailed attributes (advantageous and disadvantageous) of Point Fortins localization can befurther analyzed in Appendices #16, 17 and 18.

CONCLUSION:

PROPOSITION OF THE SUITABLE REGION OF SELECTION

Theres the realization of the comparison of the overall net effect of the positive and negativeattributes of the various types of factors of production in both communities as indicated inAppendix #19. It can be analyzed from the generated tabulated appendix that Point Fortin

possesses positive comparative difference specifically within the areas of infrastructural capitaland labour skill level of the population. Therefore, it can logically deduced that theres the

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greater possibility of larger returns on investment (ROI) for the fast food business in Point Fortin . This statement can be supported by the view that theres the enhanced capacity for thegeneration of higher profit margins due to the selection of a suitably talented labour pool incollaboration with the existence of sufficiently presented fixed assets i.e. land, leased buildingsetc within the community of Point Fortin. It can also be analyzed that specifically in relation tothe projected construction of a highway directed from San Fernando to Point Fortin theres thelarger probability of an even increased target market where the potential market can besignificantly enhanced. This result in turn can be very beneficial to the net income of the

business. Consequently, the report through the economic analysis of both communities i.e. PointFortin and Mayaro suggests the probable development of fast food business in the DowntownDistrict of Point Fortin where theres the hub of business and commercial activities. The

probable development of the highway as discussed earlier can present the reduction of vehicular traffic in the area as theres increased probability for the development of entrepreneurial talent.

APPENDICES

APPENDIX #1

These factors can be demonstrated mathematically in the following equation:

Measure of the Available Population = f (Total Population, Death Rate, Crime Rate, Infant

Mortality Rate, Birth Rate, Rate of Institutionalization)

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[statement #1]

= f (T PF, - DR, - CR, - IMR, BR, RI, ) [statement #2] The Availability of Labour Force in the Short Run = k. (Available Population of Point Fortin)

[statement #3]

L = k. X PF [statement #4]

L = k. f (T PF, - DR, - CR, - IMR, BR, RI, )

[statement #5]

L = k. ( APF) [statement #6]

Therefore total product output is given by the following:

Q = f 1 (L) [statement #7]

Q = f 1 (k. ( APF)[statement #8]

Consequently, Q = f 1 {k. f (T PF, - DR, - CR, - IMR, BR, RI, )}

[statement #9]

where,

k = constant of proportionality

L = magnitude of available labour force

TPF = magnitude of total population

DR = measurement of the death rateCR = measurement of the crime rateIMR = infant mortality rate

BR = birth rateRI = rate of institutionalization

= exogenous factors

XPF = magnitude of the available population of Point Fortin

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= magnitude of the population density of Point Fortin (number of persons per square

kilometre)

APF = measure of the land area of Point Fortin (square kilometres)

Q = production output

APPENDIX #2

POPULATION AND HOUSING PROJECTIONS BY COMMUNITY

COMMUNIT

Y

2000 2020 2000-2020COMMU

NITY NO.

POPULATION

AVEHHOLD

SIZE

NO.OF

HHOLDS

NO. OFDWELL

INGUNITS

PROJ.POPULA

TION

PROJ.

AVEHHOLD

SIZE

PROJ. NO.OF

HHOLDS

PROJ. NO. OFDWELL

INGUNITS

ADD.DWELL

INGUNITSREQUIRED

AVE.HOUSINGREQUIRE

MENT.

POINT 1 2,722 2.9 925 1,1019 3,330 3.0 1,110 1,110 91 5

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FORTINPROPER

(14%) (13%)

POINTFORTINCENTRA

L

2 4,584(24%)

3.2 1,433 1,566 6,035(24%)

3.2 1,886 1,886 320 16

CLIFTONHILL

3 307 (2%) 3.6 86 128 759 (3%) 3.6 210 210 82 4

NEWLANDS

4 637 (3%) 3.1 204 213 837 (3%) 3.1 270 270 57 3

TECHIER VILLAGE

5 1,534(8%)

3.1 496 522 1,866(8%)

3.1 602 602 80 4

EGYPTVILLAGE

6 2,106(11%)

3.2 647 703 2,573(10%)

3.2 804 804 101 5

POINTFORTINNORTH

7 1,833(10%)

3.4 532 556 2,618(10%)

3.4 770 770 214 11

COCHRA NE

8 432 (3%) 3.4 126 129 816 (3%) 3.4 240 240 111 6

GONZALES

9 1,401(7%)

3.4 406 427 1,802(7%)

3.4 530 530 103 5

POINTFORTINSOUTH

10 9,897(52%)

3.5 2,825 3,005 13,017(52%)

3.4 3810 3810 805 40

POINTLIGOURE 11 1,400(7%) 3.3 443 2,528(10%) 3.2 790 790 347 17

HOLLYWOOD

12 765 (4%) 3.8 203 217 1,102(4%)

3.8 290 290 73 4

NEWVILLAGE

13 1,668(9%)

3.4 483 510 2,176(9%)

3.4 640 640 130 6

FANNYVILLAGE

14 3,749(20%)

3.5 1,062 1,147 4,364(18%)

3.4 1280 1280 133 7

CAP DEVILLE

15 2,315(12%)

3.6 688 2,847(11%)

3.5 810 810 122 6

TOTALPOINT

FORTIN

- 19,036(100%)

3.3 5,715 6,146 28,000(100%)

3.3 7576 7576 1,430 72

* Source: Borough of Point Fortin Final Draft Municipal Development Program by All Inclusive Development Services Limited

APPENDIX #3

APPENDIX #4

EDUCATIONAL STANDARDS OF THE COMMUNITY OF POINT FORTIN

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+ Q: point of possible

maximum productivityfor an entrepreneurial /

business venture


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Table 6: English and Mathematics Pass/Fail Rates for Point Fortin East Secondary (PFES) and Point Fortin West Secondary(PFWS), 2003-2009.

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English A (%) Mathematics (%) Pass Fail Pass Fail

PFES (2002-2003) 29 71 23.1 76.9 PFES (2003-2004) 33.6 66.4 25.5 74.5 PFES (2004-2005) 26.2 73.8 15.5 84.5 PFES (2005-2006) 35.4 64.6 18.2 81.8 PFES (2006-2007) 40.2 59.8 30 70 PFES (2007-2008) 44.1 56 36 64 PFES (2008-2009) 50.3 49.7 28 72

Point Fortin East Secondary School PFWS (2007-2008) 6 94 3 97 PFWS (2008-2009) 16 84 2 98 Source: Compiled from information supplied by PFSS

APPENDIX #5

GEOGRAPHICAL PLAN VIEW OF POINT FORTIN

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* Source: Borough of Point Fortin Final Draft Municipal Development Program by All Inclusive Development Services Limited

APPENDIX #6

PRICES OF AGRICULTURAL GOODS IN POINT FORTIN, MAYARO

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AND SAN FERNANDO

Table : Average prices of basic commodities

Commodity San Fernando Market PF Market Mayaro market PF/San Fernando Mayaro/San FernandoPachoi $7.00/bundle $8.00/bundle $7.00/bundle 1.1 1.0

Cassava $3.00/ lb $4.00/ lb $3.25/lb 1.3 1.1Corn $10.00 for 5 $10.00 for 5 $10 for 5 1 1.0Pawpaw $4/ lb $6.00/lb $4.00/lb 1.5 1.0Pumpkin $1.50/ lb $2.00/lb $2.00/lb 1.3 1.3Bodi $7.00/ bundle $6.00/bundle $7.00/bundle 0.9 1.0Melongene $4/ lb $5.00/ lb $5.00/lb 1.3 1.3Eddoes $4.00/ lb $5.00/lb $4.00/lb 1.3 1.0Yam $3/ lb $3/lb $4.00/lb 1 1.3Tomatoes $10/lb $12.00 / lb $11.00/lb 1.2 1.1Water melon $2.50 / lb $3.00/lb $3.00/lb 1.2 1.2Citrus $2.00 for 4 $6.00 for 5 $6.00 for 3 2.4 1.0Celery $2/ bundle $3.00/ bundle $3.00/bundle 1.5 1.5Callaloo bush $6.00/ bundle $6.00/ bundle $6.00/bundle 1 1.0Plantain $5.00/ lb $5.00/ Lb $5.00/lb 1 1.0Caraille $5.00/ lb $5.00/ Lb $5.00/lb 1 1.0Hot peppers $1.00 for 5 $1.00 for 5 $1 for 3 1 1.6Pimento $2.00 for 5 $2.00 for 5 $2.00 for 8 1 0.6Cucumber $4/ lb $3.00/lb $3.00/lb 0.8 0.8Ochro $1.00 for 4 $2.00 for 6 $1.00 for 5 1.4 0.8Unweighted average 1.2 0.6Source: computed.

*Source:Oil boom, Rebuilding a Culture of Entrepreneurship and the Need for Micro financing in a Petroleum RichSub Economy, Roger Hosein, Martin Franklin and Justin Joseph

APPENDIX # 7

EMPLOYMENT AND AVERAGE INCOME TRENDS OF PETROLEUM SECTOR IN

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R - This region which represents the diagrammatic negative shift of the LBT curve is consequent of the effectof the resource labour movement. In other words, theres an increase in the measure of magnitude of the

boom tradeable sector (BT) which has resulted in the generation of a contraction of the non-boom tradeable(NBT) sector (deagriculturization effect) and an initial reduction in the magnitude of the non-tradeablesector (deindustrialization).

19

Figure 1: Illustration of the impact of a boom on wageswagew2

w1

w0

NT1

NT0

NBT0

NBT1

NBT2B AL

0 NT

L1 NT

L1BT

L0BT

L0BNBT

0T0 NTR S


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S - This region represents the diagrammatic positive shift of the NBT curve as its consequent of the demandfor these services (construction/manufacturing industry) through an increased level of wealth of a nation inan oil boom.

APPENDIX # 9

UNEMPLOYMENT LEVELS IN POINT FORTIN AND MAYARO

Table 4: Unemployment for T&T, Nariva/Mayaro and Point Fortin.

T&T NM PFCompensation per worker in the petroleum sector as a

percentage of the national average.1991 18.5 12 24.9 226 1992 19.6 13.3 24.1 237 1993 19.8 13 32.2 236 1994 18.4 16.2 24.4 227 1995 17.2 17.8 29.3 227 1996 16.2 16.8 27.1 262 1997 15 15.6 27.5 310 1998 14.2 16.1 24.1 308 1999 13.1 15.7 27.3 319 2000 12.1 13.5 20.7 215 2001 10.8 14.3 22.4 208 2002 10.4 15.8 18.4 296 2003 10.5 15.9 24.4 299 2004 8.3 15.7 19.1 324 2005 8 20.4 15.1 318 2006 6.2 17.7 8.9 321 2007 5.6 20.9 16.7 337

Source: CSSP of T&T (various years)

C - Theres an indication of increased levels of unemployment in Mayaro and Point Fortin as compared to thetotal unemployment level of the nation. In other words, these oil enriched communities experienceapproximately the largest levels of unemployment in the nation which is consequent of the elevateddemand for increased wages in the NBT and NT sectors. This effect is the direct results of the employers

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attempt to reduce the continuation of the labour resource movement to the BT sector. In turn, theemployers in these sectors (NBT and NT sectors) experience a reduction in their labour force and also theystruggle to maintain their present labour magnitude due to rising prices in raw materials etc caused byinternational markets. The rising levels in the unemployment rates in these sectors have even propelled a

percentage of the public to strive to enter the BT sector.

APPENDIX # 1 0

CHARACTERISTICS ADVANTAGEOUS TO POINT FORTIN(STRENGTHS)

CAPITAL LABOUR LANDINFR / C +/- FINAN /

CHUMAN +/- LABOUR

FORCEMAG.

+/- SKILLLEV.

+/- PHYS.TRAITS

+/-

INTER NAL

STR ENGTHS

Theres theexistence of

port facilitieswhich can

assist in thedevelopmentof the nationsGDP level via

trade.

+ Highlyeducated

labour force.

+ Theres anincreasing

populationgrowth as it

provides agreater labour

resource pool.

+ Highlyskilledlabour

force at

present.

+ Flat landstructure

(topography)available for

theexpansion of business

+

The presenceof commercial

activitylocalized inDowntownDistrict of

Point Fortin.

+ Presently,large

percentageof

residentsown their homes.

+ Theresrelativelylow crimerate which

consequentlyhas minimal

negativeeffect onavailable

populationfor the

developmentof a labour

force.

+ Presence of beaches

(recreationalactivities)

+

Theres thedevelopment

of new E-Teck Industrial Park.

+ Theres theexistence of

naturalresourcessuch as oil

and gas

+


+

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industrial firmssuch as oil andgas industries.

Theres theavailability of

recreation

grounds in thevariouscommunities

of Point Fortin.

+

TOTAL 5+ 2+ 2+ 1+ 3+

APPENDIX #1 1

CHARACTERISTICS DIS ADVANTAGEOUS TO POINT FORTIN(WEAKNESSES)

CAPITAL LABOUR LANDINFR / C +/

-FINAN /C +/

-HUMAN +/

-LABOUR FORCEMAG.

+/-

SKILL

LEV.

+/-

PHYS.TRAITS

+/-

INTER NAL

WE

AK NESSES


aginginfrastructur

e.

- Theresminimal

investment by

privatizedfirms intothe social

andinfrastructur al capital of

theBorough.

- Theresthe

presenceof a

minorityof the

population thats

involvedin

criminalactivities.However,this rate

of growthof

criminalactivity

canincrease

with

increasing povertylevels.

- Theresincreased

unemployment levels in

thecommunitydue to the

effects of theDutch

DiseaseSyndrome.

Also theresrestricted

opportunitiesoffered by

the petrochemica

l industry

- Situatedin a

remotelocation

withpoorqualityroads

localizedthrough

La Brea.

-

Theres thelack of

sufficientlydevelopedfacilitiessuch as

hospitals,cinemas,

- Theres presentlyminimal

investment by the

governmentinto the

developmen

- Theresthe

indicationof

increasing poverty

levelswhere the

- Theres alsoreduced

levels of anavailable

population asa source for

employment.This is due to

- Lowlyingareaswheretheres

the possibilit

y of

-

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parks etc. inthe

community.

t of theBorough

quantityof peoplewho are

homeless or

renting is

increasing.

the presenceof increasing

povertylevels as a

percentage of the

population isinvolved inillegal

activities

flooding.


trafficcongestion.

TOTAL 3- 2- 2- 2- 2-

APPENDIX #1 2

NET EFFECT OF THE POSITIVE AND NEGATIVE FACTORS AFFECTINGPOINT FORTIN

INFRASTRUC. CAP. FINAN. CAP. HUMAN CAP. LABOUR FORCEMAG.

LABOUR SKILL LAND

2+ 2- + * + * 1+ 1+

*These factors are overall positive in nature due to the assumed weighted averages of the positive factors exceedingthe negative factors present.

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APPENDIX #13

DEVELOPMENT STRATEGY OF POINT FORTIN CENTRAL

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APPENDIX #1 4

POPULATION 2000 MAYARO / RIO CLARO

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COMMUNITY HOUSEHOLD

TOTAL MALE FEMALE

%MALE

%FEMALE

NUMBER OF

DWELLUNITS

SHARE OFTOTAL

POPULATION(%)

RATIO OFHOUSEHOLD/ D WELING

UNITS

Guayaguayare 467 1659 862 797 52 48 536 5 87.13Mayaro 683 2558 1249 1309 49 51 793 8 86.13Ortoire 141 574 272 302 47 53 148 2 95.27

Rio Claro 937 3552 1781 1771 50 50 982 11 95.42

*CSO 2000 Population and Housing Census

APPENDIX #1 5

SIMPLISTIC ROAD NETWORK MODEL

DIAGRAM OF SIMPLISTIC ROAD MODEL BETWEEN FIRM AND RETAILER

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In the diagram shown above, theres the realization that for the supply of one type of good in agiven time of t/s for the first retailer (rt 1) theres the following observation:

The value of revenue generated from the first retailer (R 1):

p.Q s = R 1 [statement #1]

p.(Q s / t). t = R 1 [statement #2]

p.q.t = R 1 [statement #3]

However, it is understood, q v i.e. q = kv [statement #4]

kp.v.t = R 1 [statement #5]

kp. (L / t).t = R 1 [statement #6]

kp.L = R 1 [statement #7]

Therefore, for n number of retailers with assumptions as indicated below:

TR = + (R 1 + R 2 + R 3 + R n) [statement #8]

27

FIRMRETAILER RETAILER RETAILER

FIRM

L1

L2

L3

rt1

rt 2

rt 3

R 2

R 3

R 1


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TR = + {kp.(L 1 + L 2 + L n)} [statement #9]

TR = + {kp[(L n)]} [statement #10]

As a result, for H number of goods to be delivered to n number of retailers:

TR = + {kp 1[(L n)] + kp 2[(L n)] + kp H [(L n)] } [statement #11]

Therefore assuming that the consumption segment (C) of the four sector economy comprisesmainly of the total revenues acquired from all the firms of the industries then theres thefollowing perception for M firms manufacturing physical goods and services firms in thecountry:

C = TR (physical goods and services) + TR (virtual services) [statement #12]

C = TR (physical goods and services) + TR (virtual services) [statement #13]

C = M x [ + {kp 1[(L n)] + kp 2[(L n)] + kp H[(L n)] }] + TR (virtual services)

[statement#14]

GDP = M x [ + {kp 1[(L n)] + kp 2[(L n)] + kp X[(L n)] }] + TR (virtual services) + I + G + X

[statement#15]

E.G = M x [ + {kp 1[(L n)] + kp 2[(L n)] + kp X[(L n)] }] + TR (virtual services) + I + G + X

[statement#16]

28

SUGGESTED LIST OF VARIABLES:rt = retailer

p = unit price of goods supplied / US$Qs

= quantity of goods supplied

v = velocity of vehicle / ms -1

t = time taken for transaction or deliveryof goods / s

L = length of roads / mq = rate of delivery of goods / (no. of

goods s -1)k = constant of proportionality / (no. of

goods m -1)

ASSUMPTIONSThe type of good distributed to all retailers in the giventimeframe is identical.The price of the goods distributed to all retailers isidentical.Theres the existence of sufficient resources necessary to

supply the goods to all retailers in the given timeframe.The rate of delivery of goods is constant for all retailers.A fixed percentage of retailers and even large-scaleconsumers acquire goods directly from the firm i.e. withoutthe necessity for the delivery of the goods ().


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APPENDIX # 1 6

CHARACTERISTICS ADVANTAGEOUS TO MAYARO(STRENGTHS)

CAPITAL LABOUR LANDINTER NA

LSTR ENGTHS

INFR / C +/- FINAN /C

+/- HUMAN +/- LABOUR FORCEMAG.

+/- SKILL

LEV.

+/- PHYS.TRAITS

+/-


beach resortsalong the

peripheral of the Mayarocoastline

+ Theresgenerally asource of ayoung and

vibrant population

with thenecessaryenergies to

generate productive

performancein varioussectors

+ Theres anincreasing

populationrate

+ Theres large percentage of available land

space for building

+


industrialfirms such asoil and gas

industries atthe

Guayaguayareregion

+ Theres a large percentage of

arable lands(prime for

agriculturization)

+

Theres the presence of

natural forestryand other ecological

resources (oiland gas reserves)

+

TOTAL 2+ 1+ 1+ 3+

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APPENDIX #1 7

CHARACTERISTICS ADVANTAGEOUS TO MAYARO(WEAKNESSES)

CAPITAL LABOUR LANDINTER NAL

WEAK NESSES

INFR / C +/- FINAN /C +/- HUMAN +/- LABOUR FORCEMAG.

+/- SKILLLEV.

+/- PHYS.TRAITS

+/-

Theres the production

of inefficient

andinadequate

socialfacilitiessuch as

hospitals,restaurants,

cinemas, parks etc.

_ Theresminimal

execution of investments by

privatizedfirms (CSR) to

theinfrastructuralcapital of thecommunity

_ Theresgeneralpoorlyeducated

populationworkforce

_ Theresminimal

specializedacademicand even

tradedevelopedskill levelswithin the

populationworkforce

_ Thecommunities

of Mayaro aregenerallyremotely

located suchas

Guayaguayare

_

Theres thegeneral

existenceof poorroading

stock anddilapidated

bridges

_ Theresminimalquanta of

governmentfunding to thevarious sectors

such asagricultural

and fisheries

_ Theres anelement of criminalactivitywithin

pockets inthe

communitiesas theres a

smallreduction in

productivitydue to the

presence of illegal

activities

_ Theresgenerally

susceptibilityflooding

coupled withthe

occurrencesof natural

disasters suchas hurricanes,forest fires etc

_

Theresinadequatequantity of secondary

and tertiaryacademic

and

_ Theresminimal

existence of entrepreneurial

acitivitieswithin the

environs of

_

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vocationalinstitutions

MayaroCentral

Therespoorwater

facilitationfor

households

_

TOTAL 4- 3- 2- 1- 2-

APPENDIX #1 8

NET EFFECT OF THE POSITIVE AND NEGATIVE FACTORS AFFECTINGMAYARO

INFRASTRUC. CAP. FINAN. CAP. HUMAN CAP. LABOUR FORCEMAG.

LABOUR SKILL LAND

2- 3- 1- 1+ 1- 1+

APPENDIX #19

COMPARISON OF THE NET EFFECT OF THE POSITIVE AND NEGATIVE

FACTORS AFFECTING BOTH COMMUNITIES

COMMUNITY INFRASTRUC.CAP. (PD)

FINAN. CAP.(PD)

HUMAN CAP.(PD)

LABOUR FORCE MAG.

(PD)

LABOUR SKILL(PD)

LAND (PD)

POINT FORTIN 4+ 1+ 2+MAYARO

*PD Points Difference

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REFERENCES

Borough of Point Fortin Final Draft Municipal Development Program by All Inclusive

Development Services Limited Economics, Lipsey and Chrystal (11 th Edition)

Oil boom, Rebuilding a Culture of Entrepreneurship and the Need for Micro financing in a Petroleum Rich Sub Economy , Roger Hosein, Martin Franklin and Justin Joseph

Mayaro / Rio Claro Regional Municipality , Kairi Consultancy Limited

Role of Entrepreneurship in Mayaro and Point Fortin

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