The role of Culture in Suriname

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• The role of Culture in Surinames Productivity
• Going beyond mere development plans

Ir. Steven Coutinho MBA
September 25, 2014
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Background 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)

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In 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.
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Agenda

• A relationship between strategy and mental
  models?
• Back to Economic Basics
• Adding the necessary human / cultural dimension

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Agenda

• A relationship between strategy and mental
  models?
• Back to Economic Basics
• But adding the necessary human dimension

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Observations 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
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The 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
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Focus 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
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Mental 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
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Conclusion
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
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Agenda

• A relationship between strategy and mental
  models?
• Back to Economic Basics
• But adding the necessary human dimension

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The 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)
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What 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
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Conventional wisdom its the additional value
created that leads to higher salaries. Its the
higher salaries that leads to wealth
Understanding Value Add
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Indeed, GDP per Capita is driven by Value Added
per Employee (productivity)
World economies ranked by productiviity
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But 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
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Curacao is characterized by some high productive
sectors so GDP per Capita is one of the highest
in the region.
GDP per capita
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Agenda

• A relationship between strategy and mental
  models?
• Back to Economic Basics
• Adding the human / cultural dimension

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The 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
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Expanding 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
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Evidence 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