When it comes to tracking trade the numbers can be dizzying. Volume of exports, number of suppliers, net profits, logistics costs — the sector generates an enormous amount of vital, but long-winded, paperwork. Thankfully for those in the business, there are a number of technological tools available to help shift through the data, and policymakers in the Caribbean are now making use of these cutting-edge IT platforms to transform trade.
Trade Vista
Early in July the Organisation of Eastern Caribbean States (OECS) signed an important trade agreement that will further the use of big data in trade. The EUR3.6 million TradeCom II initiative aims to strengthen economies in African, Caribbean and Pacific (ACP) nations through deepening trade links with the European Union. Part of this mission includes upgrading trade expertise through technology and the OECS has already begun trialling an advanced IT platform that will be able to track trade statistics in real-time and collect and sort trade data.
So far Trade Vista, as the portal is known, has been piloted in the agricultural sector but funding from TradeCom II will allow the OECS to expand its application to other industries. Head of the OECS Trade Policy Unit Virginia Paul explains: “The trade information portal will draw data from sources such as Com Trade and National Statistics offices and present it in a user friendly format so that users can analyse trade (import and export) patterns with single countries or a group of countries with which the OECS member states have trade relations, such as USA, Canada and members of the European Union.”
Having this kind of information at their fingertips will allow policymakers and exporters to see where their efforts can deliver the most rewards. “The analysis that one is able to undertake utilising the data can point to potential export markets, investment opportunities, or lead one to do further investigation to address trade-restrictive measures,” says Paul.
The OECS is hoping that Trade Vista will help bring more young people into the agricultural sector by engaging their interest in technology and inspiring them to target new niches. The organisation is also hoping it will help reduce the Eastern Caribbean’s food import bill by identifying areas where local providers can supersede imported goods. The platform has already flagged up those areas where imports are high but domestic farmers can meet local demand, such as in lettuce, broccoli, kale and poultry products.
But it’s not just the agricultural sector that is set to benefit. Trade Vista can also deliver huge benefits to the creative industries and other non-traditional exports. No matter the industry,
Caribbean trade has its own unique challenges. Less resources, smaller scale production, high transport costs, exporters face a number of hurdles getting their products off island. Many find the best route to profitability is targeting high value niches. Big data can help them identify these niches before they become overcrowded, leading to a host of other indirect benefits such as greater innovation and entrepreneurship and more employment among young people.
Knowledge is power and in the turbulent landscape of global trade every bit of information helps. US research firm Gartner defines ‘big data’ as information which has five key characteristics: volume, variety, velocity, voracity and value. In other words, real-time, high-quality information that is taken from a range of sources and produces useful insights.
With targeted, smart and responsive data, Caribbean exporters will be able to compete more effectively and become more resilient to market shocks. Data and analytics will allow them to forecast demand, make more accurate predictions on long-term trends, optimise their logistics and add or reduce inventory as necessary.
A database of readily available statistics will also help foster cooperation between the public and private sector, often a contentious relationship in the Caribbean. As government, development bodies and small businesses parse the data and monitor their progress, it gives all players an opportunity to weigh in on how to enhance intra-regional and international trade, and identify gaps that need to be addressed.
The Caribbean is far behind in its treatment and use of big data but the region is steadily making progress. In the meantime, it can look to the lessons learned by the current global big data revolution. Data is only as good as the analytics programme accompanying it; and a robust analytics model must go hand in hand with a strong security framework to ensure data protection and privacy.
Computer driven models are extremely helpful, but not water-tight. While the technology can spit out forecasts and detailed reports, these models run the risk of being too inflexible and not cognisant enough of issues on the ground, especially in the Caribbean where conditions can change in an instant. The impact of natural disasters on the agricultural sector, for example, can throw markets for a loop and significantly disrupt data-driven insights.
The technology must therefore go hand in hand with a human component. And that human component needs to be adequately trained. Big data has largely been used in the tourism industry and statistics departments, but other sectors may be less familiar with analytics. Addressing the data science skills gap will require educational efforts and greater public outreach and awareness.
Ultimately, the technology must be accessible to everyone, from the budding business owner to the farmer in the field. Collection of data can enable growth, but dissemination of that data is necessary for that growth to become sustainable.
