Title: The role of Culture in Suriname
1- The role of Culture in Surinames Productivity
- Going beyond mere development plans
Ir. Steven Coutinho MBA
September 25, 2014
2Background speaker
Background speaker
Recent Publications / Seminars
Relevant Experience
- Support of Minister Economic Development with
Curacao economic strategy Curacaos Economic
Potential (May 13) - Lead UNDP consultant for Surinames Multi-Annual
Development Plan 2006 2011 (Oct 05 July 06)
- Author Thinking Outside Natures Box strategies
for economic development (Jan14)
Work Experience
- RBC Royal Bank Managing Director Dutch Caribbean
Suriname (June 14 current) - RBC Royal Bank Vice President Corporate Banking
DC Suriname, Responsible for all sovereign debt
raisings and infrastructure investments in DC
Suriname, (Jan 12 May 14). - Hakrinbank Executive Board of Directors (2nd
largest Commercial Bank in Suriname) (Apr 09
Jan 12) - FMO Private Equity (3bln development finance
institution specialized in emerging markets
focus on Latin America) (Mar 08 Jul 08) - Andersen Consulting / Accenture Senior Strategy
Consultant (Sep 02 Jul 06)
- Key Note Speaker ILO Latin America Conference
National Productivity and Culture (Oct 14) - Het Verband tussen Sinterklaas en Economie
(Coaching Magazine, Curacao, Mar 14) - Key Note Speaker UNDP Kòrsou Kapasitá, (Oct
13) - Key Note Speaker Increasing Curacao Salaries a
broader economic perspective, Guardian Group
Pension Day, (May 13) - Over 10 local (Suriname) publications in United
Business Magazine and local newspapers (01
05)
Education
- MBA in Finance from Wharton School (ranked no.1
globally by Financial Times) (Aug 07 Mar 09) - MSc in Mathematics and Physics from University of
Groningen (Summa Cum Laude) (Aug 96 01) - Diploma Universidad Complutense de Madrid
Spanish (Sep 01 02)
3In context some words from a Nobel Laureate
Economics is marked by a startling crudeness in
the way it thinks about individuals and their
motivations, yet it builds a huge structure on
the basis of these simplistic foundations.
4Agenda
- A relationship between strategy and mental
models? - Back to Economic Basics
- Adding the necessary human / cultural dimension
5Agenda
- A relationship between strategy and mental
models? - Back to Economic Basics
- But adding the necessary human dimension
6Observations from the audience at a seminar on
Economic Development last year
Its agriculture that will make us rich
Leave it up to Government to help us
We should get more aid / borrow more money
The Private Sector shouldnt be so greedy
We should make a development plan
Leave it up to Natural Resources
If only we had the right leaders
7The above observations can be grouped along two
clusters 1. Sectoral Strategy (how do we become
wealthy?)2. Mindset or Mental Models (who is
responsible?)
Economic Development is driven by how people think
Framework for Action(Strategy Implementation)
- Shared framework of development and the roles
each one plays
Mental Models
- The invisible parts of change
Address one without the other and there will be
no implementation
8Focus of Development plans is 99 on the visible
parts of change
5 building blocks of successful countries
- Ownership - a high-ranking political principal
- clear authority to make decisions, - Targets - clear benchmarks for success
(failure) - use of automatic exit provisions
when initiatives do not meet targets, - Overarching Strategy - clear choice selected
export sectors and their development
through FDI - each sector supported by focused
policies. - Implementation - reliance on agencies with
demonstrated competence, a degree of
autonomy from daily politics - clear
support from political principal - Deliberation - use of deliberation bodies that
engage the private sector .
Clear Ownership
Targets
Overarching Strategy
Export and Domestic Sectors
EnablingSectors
Public Policy and Enabling Institutions
All Sectors
Prioritisation
Focus Sectors
Business Cases
Implementation
Monitoring and Dialogue
9Mental Models - understanding the invisible parts
of change. Thinking is influenced by Culture
(parenting, education, etc)
- What are some of the basic beliefs that influence
frames of reference (beliefs, inferences, goals)? - Who is out there? - What are the groups that we
can describe according to their frames of
reference? - Where can we start in attempting to bring those
groups to a shared vision?Every nation has
leaders which fall into 5 groups
Innovation
Looking for a referee
Go-It-Alones
Source of Advantage
Frustrated Partners
Influenced by Culture (parenting, education, etc)
Open Traders
Somewhat Satisfied
Natural Resources
Private Sector
Primary Actor
PublicSector
Intensity
Source Plowing the Sea. Fairbanks,
Lindsay Geert Hofstede, 1990 IMF Publications
10Conclusion
Only once we understand each others frame of
reference, our view of the world and our roles
in it, can we continue on a successful journey
forward
Sometimes people hold a core belief that is very
strong. When they are presented with evidence
that works against that belief, the new evidence
cannot be accepted. It would create a feeling
that is extremely uncomfortable, called cognitive
dissonance. And because it is so important to
protect the core belief, they will rationalize,
ignore and even deny anything that doesn't fit in
with the core belief. ? Frantz Fanon, Black
Skin, White Masks
11Agenda
- A relationship between strategy and mental
models? - Back to Economic Basics
- But adding the necessary human dimension
12The goal behind any action framework should be to
attain more wealth for more people
Wealth Framework
Wealth
GDP / Capita(Added Value / Capita)
Income taxed to deliver healthcare, education, etc
EqualDistribution
Salaries
Performance Analysis
Added Value (Sector A)
Employees (Sector A)
13What is normally focussed on developing an
on-paper strategy
Wealth Framework
Wealth
GDP / Capita(Added Value / Capita)
Income taxed to deliver healthcare, education, etc
EqualDistribution
Salaries
Performance Analysis
Added Value (Sector A)
Employees (Sector A)
What is normally focussed on
14Conventional wisdom its the additional value
created that leads to higher salaries. Its the
higher salaries that leads to wealth
Understanding Value Add
15Indeed, GDP per Capita is driven by Value Added
per Employee (productivity)
World economies ranked by productiviity
16But productivity needs to be understood at the
sectoral level to drive change. Suriname is
characterized by low productive sectors so GDP
per Capita is low
Surinamese economy broken down per sector
GDP per capita
17Curacao is characterized by some high productive
sectors so GDP per Capita is one of the highest
in the region.
GDP per capita
18Agenda
- A relationship between strategy and mental
models? - Back to Economic Basics
- Adding the human / cultural dimension
19The other side of the equation
Wealth Framework
Wealth
GDP / Capita(Added Value / Capita)
Income taxed to deliver healthcare, education, etc
EqualDistribution
Salaries
Performance Analysis
Added Value (Sector A)
Employees (Sector A)
Just more education?
Skillset(Relevant)
Culture
20Expanding focus on both private and public
sector (framework), but also on individual,
family and community (mindset)
Wealth
GDP / Capita(Added Value / Capita)
Income taxed to deliver healthcare, education, etc
EqualDistribution
Performance Analysis
Salaries
Employees (Sector A)
Added Value (Sector A)
Added Value (Sector A)
Employees (Sector A)
StrategyLow Cost
StrategyDifferentiated
Skillset(Relevance)
Culture
Strategy
DimensionA
Sector-by-SectorPolicies
Governance Dialogue
Additional Focus
Implementation
Individual Value A
Public Investments
Private Investments
Work
Education
Parenting
Attraction FDI
Public Private Partnerships
21Evidence of the invisible parts of change.
Culture Matters
Suriname Cultural indicators
Strength
Governance
Diversification
Econ. Development
Indicator
Power Distant
Uncertainty Avoidant
Col
lectivist
Feminine
Source Hofstede, IMF, 2010
Employees (Sector A)
Employees (Sector A)
What values are we portraying to raise our
children?
Parenting
What values are we teaching our children?
Skillset(Relevance)
Culture
Education
How are we managing our staff and employees to
add value to the company?
DimensionA
Work
Individual Value A
Work
Education
Parenting