Author: Chad Bristol

The world economy is going through major changes.[1] In the aftermath of the global financial crisis the process of economic globalization lost dynamism. By 2016, global cross-border capital flows had declined roughly 65% vis-à-vis the peak (of US$12.4 trillion) reached in 2007.[2] Foreign direct investment (FDI) flows also fluctuated significantly over the last few years and are still below the level achieved at the eve of the financial crisis. Trade in goods has also plateaued as a proportion of global GDP and in some years exports of goods increased below the expansion of world output.

These trends, however, do not hold in the case of services. Trade in services has not only increased as a share of global GDP, but also the services sector has become the main destination for FDI flows around the globe. The share of services in global trade is also increasing, reflecting the increased tradability of services in the digital era. Moreover, all over the world, but particularly in high-income economies, one observes the growing “servicification” of manufacturing activities, as services inputs embodied in the production process (e.g. R&D, design, and professional services), as well as services activities at the point of sale (e.g., financing, training, after-sales support), become increasingly important. 

This trend towards the growing importance of the services sector in the world economy is now entering a new phase. Throughout modern history one can identify waves of innovation that marked the beginning of a new era.  These “waves” are typically associated with so-called general purpose technologies (GPTs) that had dramatic implications for wealth creation, income distribution, jobs and wages.  The steam engine (the lever behind the first Industrial Revolution, 1760-1830), electrification (the lever behind the second Industrial Revolution, 1870-1914), and information and communication technologies (ICT, the levers behind the current digital age) had significant impacts on productivity, international trade, and the economic structure of nations.  The next “wave” of GPTs is centered around artificial intelligence (AI) technologies.  

It is difficult at this stage to estimate the impact that AI will have on the labor market.  This GPT, however, will affect both manual labor and cognitive activities.  Concerns about a “robocalypse” are popular in science-fiction and in Hollywood movies.  The reality, however, is that disruptions will be driven mainly by software and digital platforms based on AI.  Productivity impacts may be exponential, but these innovations will tend also to foster income inequality and job displacement.  Some of the policy solutions being discussed include the adoption of universal basic income schemes and the reduction of work hours as mechanisms to reduce the social impact of AI.  These policies may help, but they raise a series of challenges in terms of financing and how to implement a new social contract.

There is a policy, however, which has broad support among researchers.  This involves retraining the workforce with a view to explore new partnerships between humans and AI-based innovations.  Such a strategy is inevitably services-intensive and it requires a rethinking of how education systems will adapt to this new world.  A good example are the efforts of the Finnish government to train 1 percent of its population on the basics of AI.  This effort is not designed to create a new generation of AI-software developers, but its aim is mainly to prepare Finland to the inevitable democratic debate on how to adjust to an AI-led economy.

For a country like Barbados, which is already a services-intensive economy, these discussions may look too esoteric for the population at large.  Moreover, one could argue that Barbados’ comparative advantage is based on exports of services, like tourism, that have a strong human-veneer (a hotel receptionist, a bartender, …) and that are less likely to be affected by AI.  The reality, however, is that in the AI-led economy, competitive advantage at the level of firms will be increasingly determined by the capacity of economic agents to work with these innovations.  By leveraging AI-based platforms, Barbados can, for example, brand itself as an ideal place for matching compassionate caregivers with the growing international demand generated by the aging population of industrialized countries.  In short, service-focused impact investments exploring generosity and volunteer activities will become an important source of dynamism in the AI-based era.[3]

Increasing concerns related to energy security, global warming and climate change, depleting petroleum oil reserves, and the fluctuating price of oil have led to a demand for renewable energy resources. As a result, plant biomass has emerged as an abundant, low-cost, renewable, green energy option for conversion to fermentable sugars from which biofuels can be derived. “Also of particular interest are agricultural plants such as wheat, corn and sugarcane.

Currently, the USA and Brazil are the top two producers of biofuels in the world. Cornstarch is the major biofuel feedstock in the USA, while Brazil uses sugarcane juice. Together they account for 80-90% of biofuels produced globally. Despite this, they have received heavy criticism for direct utilization of food resources for this purpose.

Alternatively, non-food agricultural waste material such as bagasse generated from milling and processing of the sugarcane crop, can be used for the production of biofuels. Bagasse is composed of approximately 80% sugars, which when broken down, can be used to make biofuels. Additionally, other chemical compounds can be produced from the process inclusive of sugar alcohols, and carboxylic acids among other compounds that have market value. These are used as chemical building blocks, where they can be converted to a number of high-value bio-based materials. One of the more environmentally friendly and low energy methods used to derive fuels and other products from bagasse relies on biotechnology. Bacteria, in particular, are used for these purposes.

This approach opens avenues for the realization of an environmentally friendly and economically feasible strategy to convert sugarcane bagasse to bioethanol and other bio-products. Sugarcane is Barbados’ main agricultural and export crop where millions of tons of bagasse are accumulated annually.

However, Barbados has not implemented any specific plan to convert the bagasse component to fermentable sugars for the production of bio-compounds, inclusive of biofuels and other value-added compounds from which revenue can be generated. Nevertheless, Barbados is considered to have a high potential for biofuel from bagasse. The use of bagasse as a renewable resource to generate marketable bio-products is important to the diversification of the sugarcane product. The sugarcane industry can be further expanded to create not only sugar for local and international use but also for the production of biofuels for domestic use and speciality chemicals for export.

Domestic production and supply of biofuels can help in reducing the cost of importing fuels by supplementing local fuel demands as several models of vehicles are designed to carry an ethanol fuel mix. Speciality chemicals derived from renewable resources are in demand world-wide. This, therefore, presents a unique opportunity for a sugarcane producing country to such as Barbados to take advantage. Such chemicals are used in the pharmaceutical and polymer industries among others.

Our research efforts are focused on the utilisation of sugarcane bagasse as a substrate for bacteria isolated from bagasse, to produce fermentable sugars and other bio-compounds. This type of research is necessary in Barbados in order to explore the production of biofuels and commercially significant bio-products from bagasse.

The World’s Ocean is essential to life on our planet. It is the largest source of oxygen providing approximately 70% of the air that we breathe and absorbs around 25% of our carbon dioxide emissions. It is a source of food and sustains billions of livelihoods globally. It also provides coastal protection and is a vehicle for international trade while regulating weather and mitigating impacts of climate change.

Unfortunately, human activity is putting the health of this natural resource in peril. From habitat degradation caused by nutrient, chemical and plastics pollution, overfishing and unsustainable fishing to impacts of climate change such as rising sea levels, increased frequency and severity of extreme weather events, our Ocean is suffering.

However, there are many international, regional and national campaigns and initiatives that are placing the Ocean at the forefront.

Much of Nikola’s work revolves around promoting sustainable fisheries management and reduction of plastic pollution in the context of the Blue Economy.  From chatting with youth to fisherfolk and other stakeholders, Nikola acts as an intermediary between the people and politics. She is inspiring society to make small changes that have big impact towards an environmentally sustainable and conscious Caribbean.

With the creation of the Ministry of Maritime Affairs and the Blue Economy* in Barbados in mid 2018, Nikola is hopeful of the action that Barbados and the Caribbean region will take to sustainably manage our Ocean resources.

[*The Blue Economy is generally described as the sustainable use of ocean resources for ocean ecosystem health, economic growth and improved livelihoods and jobs (adapted from EU). It covers established oceans-related sectors such as fisheries, maritime transport, shipbuilding and tourism as well as new and emerging industries, including renewable ocean energy and biotechnology].

As a country, Barbados has the potential to make our fisheries more sustainable, designate marine spaces as marine managed areas and to look towards marine biotechnology and renewable offshore energy which will help us to continue to build resilience to changes in climate.

As individuals, we can also play our role in sustainably using the Ocean’s resources. Here are some tips on how you can help:

1. Make sustainable seafood choices –  choose lionfish, dolphinfish and flying fish and avoid shark and marlin!
2. Reduce your plastic use and choose to reuse!
3. Reduce use of fertilizers, pesticides and other chemicals that enter our water sources and damage our coral reefs
4. Reduce energy use – switch to renewable!
5. Get involved with a local NGO that is acting to protect our Ocean such as Slow Food Barbados, CORALL or the Future Centre Trust.

If we protect the Ocean, it will continue to support and protect us.