Incentivise good citizenship
By Ian D Quan Soon
In a recent T&T Guardian article, columnist Raphael
John-Lall wrote: “The Government has spent $54
billion on the country’s national security over the
last eight years, with at least $828 millions of that
Ian D Quan- Soon
figure going to the Trinidad and Tobago Police Service
(TTPS), yet citizens are gripped by fear and forced to
watch over their shoulders in their homes and public
spaces as criminals have become more brazen in
their attacks. Not even babies and toddlers are
escaping the gunmen’s fire. Even National Security
Minister Fitzgerald Hinds, in an exclusive interview,
has declared to the Sunday Guardian that he
understood the trauma and fear that citizens are
living under and said the Government was working
on solutions.”
According to the Inter-American Development Bank,
“murders, shootings, wounding and domestic
violence cost T&T more than $6 billion in 2022”, or,
about 4.0 per cent of GDP. It would serve us well to
ask: what are the underlying causes for the
unrelenting rise in crime? Why are we failing to stem
the rise? And what could be done to get better results
for the monies being spent?
Who commits crimes and why?
Individuals commit crimes for various emotional and
financial reasons some of which are referred to as
white-collar crimes.
The former typically involve mostly friends,
acquaintances or family members. The latter commit
crimes for reasons related to poverty, drug dealing,
business disputes. Unlike crimes of passion most
crimes are committed by youth ages 14 through 17
and adults ages 18-45. The TT Children’s court
reported that for the period 2018 - 2022 an average of
443 criminal cases were filed against children for
each year.
During the period February 2018 through May 31,
2022, 1,771 criminal cases were filed against youth
ages 7 to 17. A widely accepted and vetted facet of
criminology, known as the “Age Crime Curve”,
indicates that across continents and centuries crimes
tend to peak in the late teenage years, with a sharp
drop off by adults in their 20’s, and declining
significantly for adults in their 40’s. T&T’s
population of males and females within the age
groups of 10 to 45 historically average a total of about
600,000 individuals.
If the major reason for committing crimes is
financial gain, the T&T government (GORTT) should
consider offering a financial incentive for all citizens
between ages 10 through 45 for the promotion of
good citizenship free of crime. The benefits of the
Good Citizenship Financial Awards (GCFA) program
would be as follow: Lower overall crime prevention
costs; reduction of crimes committed in both the
short and long terms periods; mitigation of society’s
fear of crime; reduction in overall poverty;
improvement in educational achievement within
poor and under-achieving communities.
How would the GCFA work?
GORTT would offer citizens ages 10 to 44, a $100,000
bond with a 20-year maturity period for everyone.
The total cost would be US$2.67 billion in 2023
dollars. This represents the present value of TT$60.0
Billion (600,000 X $100,000) in year 2043 dollars
(assuming the programme starts in 2023) discounted
at a 6.0 per cent rate of interest based on an
estimated average GORTT long-term cost of funds.
GORTT would allocate the afore-mentioned US$2.67
billion from its current Heritage Stabilization Funds
(HSF) for this purpose.
There would be no need for an immediate draw down
of the HSF: A set-aside allocation specifically for this
purpose would not negatively impact T&T’s financial
balance sheet or, the nation’s credit ratings.
To qualify for final payouts at maturity in year 2043,
individuals would be required to meet the following
standards:
(1) A crime-free record during the 20 year period;
(2) For ages 10-18, one must graduate from a GORTT
approved high school with educational qualifications
to-be-determined by the GORTT: number of passes,
etc.
(3) Distributions from Bond proceeds at maturity
must be utilised solely for the following purposes:
higher education, starting a business, retirement or
medical expenses for oneself or immediate family
(mother, father, sister, brother, son or daughter).
(4) Funds cannot be accessed prior to the 20-year
maturity period.
(5) In the event of one’s death, a beneficiary family
member would be eligible for a distribution of bond
proceeds beginning in year 20 provided the
beneficiary meets requirements for use of proceeds
as specified in (3) above.
The benefits of the programme would be as follow:
• Reductions in crimes by youth who would lose what
for them would be a guaranteed substantial life
savings, that would also help alleviate family
poverty;
• A guaranteed financial nest egg would help to level
the playing field for poor families due to better
educated youth and a guaranteed future family nestegg especially for larger families;
• Although citizens ages 1 through 9 and ages 45+
would not benefit immediately from the program,
less overall crime and associated costs would accrue
them and the nation each year. As the programme
progresses every citizen would eventually qualify for
the program and would benefit financially and
socially from the programme beginning at age 10;
• Parents would have an incentive to be involved to a
greater extent with their children’s education and in
reinforcing crime-free lifestyles.
Many would object to the programme’s cost and
affordability considering current government
expenditures and at the thought of designating the
HSF as the source of funding for the programme.
However, one must ask: What is the greatest threat
to the nation’s social and financial security? My
answer would be spiraling crime rates and associated
costs that have continued unabated since year 2000.
It should be noted, that as bonds mature many, if not
most, individuals would probably not immediately
draw down their entire nest-egg. As a result, the
impact on the HSF could be greatly minimised.
Further, the projected US$2.67 billion is relatively
small in relation to the current $6.0 billion annual
cost of crime to government, T&T businesses, T&T
families impacted by personal losses and to the
society in general due to curtailment of their
activities and increases in personal financial
protection costs for their homes, autos and other
possessions For many, this would be a radical
program and object simply on that basis. What are
the viable alternatives? Both governments have tried
everything else at great expense without success.
Many are calling for increases in numbers of police,
courts, jails, judges and more powerful arms to fight
the criminals, which would add to the permanent
fixed costs of national budgets. Moreover, our
freedoms and civil rights are under threat with calls
for workable government solutions, that resulted in a
recent recommendation by the Attorney General for
suspension of the right to trials by jury for certain
cases to help alleviate court backlogs.
Crime dictates our national and personal agendas at
great costs for everyone.
I am a former entrepreneur with 40 years in the
financial services industry on Wall Street, New York,
and as a ten (10) years investment asset manager for
the Unit Trust Corporation of Trinidad and Tobago
Growth and Income and Equity Funds, I have
conducted seminars throughout the country:
Chambers of Commerce, Credit Unions and business
associations. And, lectured on investments and
personal and family financial planning.
I have abiding interest in the welfare of my beloved
country and the economic wellbeing of my fellow
countrymen. I also have immediate family and
friends in Trinidad who live in fear for their wellbeing and personal properties. T&T are endowed with
ample resources and human potential that cannot
and must not be allowed to be wasted.
Citizens should heed Dr Martin Luther King’s dictum:
“The ultimate tragedy is not the oppression and
cruelty by the bad people but the silence over that by
the good people.”