Introduction
Trinidad and Tobago (T&T), like many small island developing states, faces significant challenges in transforming its public sector into a high-performance, future-ready entity. Although the country possesses a wealth of human capital, much of this potential remains locked within inefficient bureaucracies that limit innovation, reduce responsiveness, and constrain economic progress. Unlocking this capacity will require comprehensive reform of the public service, including redirecting top talent, streamlining outdated processes, integrating digital technologies, and adopting proven global practices.
An efficient public sector is not solely an administrative objective but a strategic pathway to greater foreign direct investment (FDI), sectoral innovation, and improved national competitiveness. This document explores how T&T can make this shift by creating innovation hubs within the public sector, reengineering core workflows using artificial intelligence and automation, applying lessons from international case studies, and drawing inspiration from bold reform models such as the “Elon DOGE” initiative.
Economic and Social Context
Trinidad and Tobago’s ongoing fiscal challenges are compounded by significant economic pressures, including rising inflation and persistent unemployment, which have heightened public reliance on subsidies and complicated efforts at government reform.
Between 2020 and 2024, Trinidad and Tobago spent approximately 4.464 billion TTD on fuel subsidies alone. These subsidies aim to shield citizens from volatile market prices by paying fuel companies the difference between the subsidized price and the market price. However, many economists argue that the subsidy is costly and regressive, disproportionately benefiting higher-income groups rather than the poor.
Energy economist Gregory McGuire argued that the economic justification for the subsidy “was always weak and misplaced.” He emphasized that “the solution to the problem of high transit costs for the vast majority of people is to have an efficient mass transit system. Instead, we have created this monster over the last 46 years, which is now difficult to kill.” (Javeed, Asha, 2022)
Past governments in Trinidad and Tobago have recognized the significant financial burden that subsidies place on the economy and have repeatedly supported plans to liberalize fuel prices. However, every attempt to reduce subsidies and increase government revenue has faced strong public backlash.
Recent efforts, such as the 2020 cuts to the GATE program and the 2022 fuel price hikes, sparked protests not only because of the subsidy reductions themselves but also due to rising living costs and increasing concerns about safety and security. These issues remain significant today, with the Consumer Price Index rising by 4.7% between April 2024 and April 2025 (CSO, 2025), unemployment at 5.4% in the first quarter of 2024, and crime rates reaching historic highs, with 624 murders recorded in 2024. The combination of economic pressures and social challenges continues to contribute to public frustration and resistance to reform.
Diagnosing the Problem: Using the Theory of Constraints
Given that inefficiency remains widespread and every attempt to cut spending on the citizen side leads to backlash without meaningful progress, what then is the true constraint holding Trinidad and Tobago back from real transformation? One way to uncover this underlying issue is by applying the Theory of Constraints (TOC).
Developed by Eliyahu Goldratt, “The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e., constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor. In manufacturing, the constraint is often referred to as a bottleneck. It hypothesizes that every complex system, including manufacturing processes, consists of multiple linked activities, one of which acts as a constraint upon the entire system (i.e., the constraint activity is the ‘weakest link in the chain’)” (Lean Production, 2021). Although originally applied in manufacturing, TOC is increasingly used to diagnose dysfunction in complex systems, including government operations.
In the context of Trinidad and Tobago, excessive government spending is often treated as the core issue. However, TOC encourages a deeper analysis. Spending is not the main constraint, but rather a symptom. The real constraint lies in inefficient and outdated processes embedded across public institutions. These processes drive up costs, reduce productivity, and make reform politically difficult. Until these internal failures are addressed, efforts at fiscal consolidation or systemic transformation are unlikely to succeed.
Case Studies of Local Inefficiency
Two recent cases help illustrate how these inefficiencies are engrained in daily government operations:
- TTD 2.6 Billion Revenue Discrepancy: Auditor General’s Department (AGD) 2024 Report on 2023 Public Accounts: A striking example of process inefficiency is the TTD 2.6 billion revenue discrepancy uncovered in the 2023 Public Accounts. Despite the existence of robust financial management laws and regulations, the Ministry of Finance failed to adhere to established protocols for recording, reviewing, and submitting financial data. According to the Auditor General, tax refund payments were misclassified, inflating reported revenue, while critical financial documents were submitted past statutory deadlines. The Ministry of Finance stated that the discrepancy occurred due to a system malfunction. Regardless, there was a lack of effective internal controls, insufficient oversight, and no systematic double-checking of figures, which contributed to the error remaining undetected for months.
“The inability to produce accurate and complete accounts showing fully the financial position of Trinidad and Tobago for financial year 2023, by the Ministry of Finance resulted in the Auditor General receiving five versions of Treasury Statements comprising significant material adjustments as large as $2.599 billion.” (Auditor General Department Special Report 2023, pg. 25)
The fact that such a significant misstatement could occur, despite clear legal requirements, underscores the weakness of existing financial processes and raises serious concerns about accountability, transparency, and the reliability of public financial management in Trinidad and Tobago.
- Frequent Leadership Handovers in State Agencies: Another form of inefficiency stems from frequent leadership handovers in state agencies following elections, driven by political motives that disrupt governance. For instance, after the Trinidad and Tobago General Elections on April 28, 2025, the entire UDeCOTT board resigned on May 6, 2025 (Urban Development Corporation of Trinidad and Tobago, 2025) and Trinidad Petroleum Holdings’ Chairman signalled his exit on May 1, 2025 (Hamilton-Davis, Ryan, 2025). These changes occur because new governments replace agency leaders to align with political priorities, often appointing individuals based on allegiance rather than expertise. This practice erodes institutional memory, as new leaders lack the context of ongoing projects, leading to delays.
These examples highlight that the primary bottleneck in Trinidad and Tobago’s public sector is not the level of spending itself, but the inefficient and outdated processes that waste resources and hinder delivery. Overspending is a consequence, not the root cause. While public resistance and expectations for state support remain serious obstacles to reform, they are not the core constraint. These patterns of inefficiency reflect a deeper structural failure. Public expectations for support are not irrational, but rather a byproduct of long-standing policy choices and weak delivery systems. Addressing the root process failures is essential to restoring fiscal discipline and public trust.
Fiscal Consequences of Inefficiencies
As a result of these spending patterns and inefficiencies, Trinidad and Tobago is projected to have a fiscal deficit of approximately $5.5 billion in 2025 (Ministry of Finance, 2024), representing about 2.9% of GDP. This deficit means the government’s planned spending will exceed expected revenue by this amount for the year. Persistent deficits require increased borrowing, which raises national debt and reduces the government’s flexibility to invest in critical services. The inefficiencies highlighted in the Auditor General’s findings and leadership handovers further exacerbate excessive spending and squander resources that could help ease fiscal pressures.
The real leverage point for change is within the government’s systems and processes. If these are modernized and made more accountable, the government can begin to spend less, deliver more, and gradually shift public expectations through demonstrated results and improved trust.
Addressing the Core Constraint
To transform and optimize processes, the Government of Trinidad and Tobago must begin by targeting its most important but underutilized resource: the people. Redirecting talented individuals into focused high-performance hubs that provide them with the necessary training and challenging projects can help them hone their skills and boost the country’s Foreign Direct Investment (FDI). It will also stimulate industry growth and create more competitive and enticing job opportunities, reducing brain drain.
Step 1: Talent Identification and Deployment
This transformation should begin with a nationwide public sector talent audit to identify individuals with strong technical expertise, leadership ability, and specialized sector knowledge. These employees can then be strategically reassigned to innovation projects in priority sectors including energy, tourism, finance, renewable energy, agriculture, and technology. By aligning talent with national development priorities, Trinidad and Tobago can empower its workforce to thrive in purpose-driven environments where innovation, problem-solving, and results take center stage.
Creating Innovation Hubs through Public-Private Partnerships (PPPs)
Next, the government should actively collaborate with the private sector to establish innovation hubs where employees can learn while solving real-world problems and strengthening sector resources. In the energy sector, for example, T&T could collaborate with international companies to develop next-generation energy infrastructure, blending local expertise with global best practices.
These hubs would operate semi-independently, fostering creativity and rapid experimentation. Beyond energy, similar innovation hubs could focus on digital finance, AI research, green energy, manufacturing automation, sustainable tourism, and other areas where global investors are actively seeking emerging markets to support, thereby enhancing Trinidad and Tobago’s investor attractiveness.
Incentivizing Mobility and Leadership
To maximize the impact of innovation hubs, it is essential to retain and motivate the skilled public servants who will lead these efforts. Beyond initial talent placement, sustained engagement depends on providing clear pathways for growth and recognition. Incentives such as performance-based bonuses, training scholarships, rotational assignments, and advancement into leadership roles within innovation hubs can help build a results-oriented culture. These mechanisms encourage high performers to remain in the system, reduce talent loss, and reinforce collaboration, creativity, and accountability across the public sector.
Step 2: Reengineering Government Processes
While redeploying talent is essential, it must be complemented by reengineering how the public sector operates. Outdated workflows, redundant paperwork, and inefficient systems continue to
erode trust and waste national resources. AI, automation, and digital transformation provide the tools necessary to reverse this.
Mapping and Streamlining Core Processes
To do this, ministries should begin by mapping out core public sector processes such as procurement, public service delivery, and regulatory functions. These processes often involve excessive bureaucracy, redundancy, and delays. By adopting lean methodologies and tools, like using a high-level process map to outline processes from start to finish and a Value Stream Map to remove non-value-adding steps, public services can become more agile and cost-effective.
While the Auditor General’s Department (AGD) currently focuses on primary financial and compliance audits, there is an opportunity to expand its mandate to include dedicated process improvement audits. These audits would analyze government operations to identify bottlenecks, redundancies, and inefficiencies, providing actionable recommendations to streamline workflows and reduce waste.
Leverage AI-Powered Automation and Predictive Tools
Additionally, AI can automate routine administrative functions such as document verification, tax calculations, benefits disbursement, and data entry. More advanced use cases involve predictive analytics. For example, flagging which infrastructure projects are likely to exceed their budgets, or detecting fraud in subsidy applications. AI chatbots and digital assistants can also offer round-the-clock citizen services, reducing waiting times and boosting satisfaction.
Trinidad and Tobago is currently trying to leverage AI usage through the Ministry of Public Administration and Artificial Intelligence (MPAAi), recently established following the 2025 elections. The ministry promises to lead efforts to integrate AI-driven solutions across government functions, effectively using AI tools to modernize workflows, improve service delivery, and foster digital transformation.
Training, Reskilling, and Change Management
Technology adoption without workforce preparation is bound to fail. To successfully implement AI and automation, public sector employees need to be equipped with the skills necessary to work alongside advanced technologies. Creating training programs and fostering a culture of continuous learning can ensure that employees can effectively use new systems, resulting in a more efficient government. MPAAi’s promised AI training initiatives for public officers exemplify this approach.
Global Use Cases: Lessons in Public Sector Transformation
Several countries have redefined their public sectors through bold, technology-led reforms. These cases serve as models for how T&T can modernize and improve efficiency while reducing dependency on subsidies.
Singapore: The Smart Nation Initiative
Started in 2014 by Singapore’s Ministry of Digital Development and Information, the Smart Nation initiative has transformed traditional government operations through an integrated approach that includes AI-powered traffic systems, real-time public service platforms, and smart healthcare. Today, 99% of all government-citizen transactions can be completed online (Smart Nation, 2025), significantly reducing operational costs while enhancing service quality and investor confidence. Singapore’s efforts have earned it consistent top rankings in global indices: it ranked 5th in the IMD Smart City Index in 2024 and remains Asia’s top smart city, placing 9th globally in 2025 (Smart Singapore, 2025). Additionally, Singapore ranks first in Asia and seventh worldwide in the Smart City Index, and it has climbed to fourth place in the global startup ecosystem rankings. These achievements underscore Singapore’s position as a magnet for global tech investors and a leader in digital government innovation.
Dubai: Paperless Government
In 2021, Dubai became the world’s first government to go 100% paperless. With a focus on government integration, this initiative was implemented in five phases, ensuring that all entities transitioned and obtained a “100% paperless” stamp as official recognition. The strategy has resulted in the elimination of over 331 million sheets of paper annually, saving more than 39,000 trees, AED 1.3 billion (approximately USD 354 million), and over 14 million work hours across the government (Digital Dubai, 2021). This transformation has not only increased operational efficiency and ease of doing business but also contributed substantially to environmental sustainability by reducing paper usage and its associated ecological impact.
India: Direct Benefit Transfer (DBT)
India’s Direct Benefit Transfer (DBT) system, launched in 2013, leverages advanced technologies including artificial intelligence and biometric identification through the JAM trinity — Jan Dhan bank accounts, Aadhaar unique ID numbers, and mobile phones — to deliver subsidies directly to beneficiaries. This digital transformation has drastically reduced fraud, eliminated ghost beneficiaries, and minimized leakages in welfare programs, resulting in cumulative savings of approximately ₹3.48 trillion (around USD 42 billion) by 2024, while expanding beneficiary coverage sixteen-fold from 110 million to 1.76 billion people. The system has also halved subsidy allocations as a share of total government expenditure, reducing it from 16% in 2023 before DBT to 9% in 2024, reflecting major improvements in fiscal efficiency and targeted welfare delivery. Moreover, the Welfare Efficiency Index, which measures combined fiscal and social outcomes, has nearly tripled from 0.32 in 2014 to 0.91 in 2023, underscoring
DBT’s success in enhancing both inclusion and effectiveness in poverty reduction initiatives (Press Information Bureau 2025; BlueKraft 2025; Economic Times 2025).
Estonia: E-Governance Model
Launching its first e-service in 2000, Estonia’s E-Governance Model has made Estonia one of the most advanced countries in the world, ranking 2nd in the United Nations 2024 E-Government Development Index (E-Estonia, 2025). As of 2025, all state services are fully digitized, including voting, tax filing, marriage, healthcare, divorce, and more.
This digital transformation is largely enabled by X-Road, established in 2001 and often considered “The Backbone of Estonia’s Interoperable Digital State” (E-Estonia, 2025). X-Road is an open-source scalable data exchange system that focuses on interoperability across all government services. It allows public servants to access data from different organizations with the end-user providing their data only once. For example, “The police can access information from the health system, tax authority, or business registry—and vice versa” (E-Estonia, 2025).
According to the Estonian government, X-Road saves “1,345 years of working time annually by eliminating redundant paperwork, allowing instant access to reliable information and letting public employees focus on meaningful tasks that require human judgment.” These efficiencies translate into savings of approximately 2% of Estonia’s GDP yearly.
Due to its success, over twenty countries, including Japan and Finland, have implemented X-Road or built their version based on its open-source software. Notably, iGovTT, the National ICT Company of Trinidad and Tobago, is currently developing an interoperability system built on X-Road (iGovTT, 2025). If implemented, this will revolutionize local operations by enabling seamless data exchange and enhancing service delivery.
Step 3: Building and Rebranding T&T as and Innovation Destination
Moreover, Trinidad and Tobago is already making strides in transitioning toward digital services. One notable example is D”Hub. Launched in 2023 by the Ministry of Digital Transformation, D’Hub serves as a public-private ecosystem that empowers local developers and civil servants with training, tools, and resources to co-create secure, high-quality digital solutions. Through initiatives like the D’Hub Challenge Series, public sector specialists and local developers work together to solve real government and societal challenges through digital solutions. This model directly addresses systemic inefficiency while also stimulating local capacity, economic diversification, and tech-sector growth.
D’Hub’s success is already recognized internationally, having won awards like the Inter-American Development Bank’s President’s Award for Innovation in the Public Sector (NRD Companies, n.d), and serves as a model that could be replicated in other sectors and other SIDS. By scaling up and replicating the D’Hub model in other sectors, Trinidad and Tobago can further leverage its top talent to earn more FDI and stimulate industry growth.
Additionally, through initiatives led by the Ministry of Digital Transformation, iGovTT and TTBizLink, citizens can now access various government services online, reducing physical interactions and opportunities for corruption. For example, online platforms powered by iGovTT facilitate driver’s license, renewals, passport appointments, document renewals and business permits.
To build on this momentum, Trinidad and Tobago must also focus on strategic external branding. Positioning the country as a regional innovation hub can attract high-value investments, FDI, and partnerships in emerging sectors such as digital finance, clean energy, and advanced agriculture. Targeted participation in international forums, investment expos, and digital campaigns can help promote T&T’s skilled workforce, infrastructure, and commitment to reform. A clear national innovation identity would not only increase investor confidence but also unify domestic efforts under a shared vision for growth.
Elon Musk and DOGE: A Hard Lesson in Government Efficiency
The Department of Government Efficiency (DOGE) is a U.S. federal initiative established by executive order on January 20, 2025, under President Donald Trump’s second administration. Formerly led by Elon Musk and initially intended to be co-led by Vivek Ramaswamy, DOGE was created to modernize federal government operations by leveraging technology, streamlining bureaucracy, and enforcing fiscal discipline. The department’s mission is to eliminate wasteful spending, improve transparency, and make government services faster, simpler, and more cost-effective. (Tikkanen, Amy, 2025)
DOGE operates as a specialized White House initiative, using advanced AI-driven analytics, business process automation, and cloud transformation to optimize government functions. Its core pillars include streamlining processes by removing redundant steps and paperwork to make government workflows more agile and responsive; optimizing resources by enhancing procurement strategies, reducing unnecessary contracts, and consolidating overlapping agencies to maximize taxpayer value; and enhancing transparency and accountability through real-time spending tracking, public leaderboards, and data-driven performance metrics to hold agencies accountable. (The White House, 2025)
“We’re cutting down the size of government. We have to,” Trump said earlier on Wednesday during the first cabinet meeting of his second term. “We’re bloated. We’re sloppy. We have a lot of people that aren’t doing their job.” (Gambino, Lauren, 2025)
By April 2025, DOGE reported cutting approximately $160 billion in federal spending by freezing grants, eliminating duplicative programs, and optimizing the workforce (Picchi, Aimee, 2025). The department has pushed for workforce reductions to reduce redundancies and improve efficiency. Its use of AI and automation has strengthened fraud detection and streamlined audits, promising significant long-term savings.
A notable example of DOGE’s impact is the modernization of the Office of Personnel Management’s retirement application process. After decades of relying on paper-based systems, OPM will transition to a fully digital, electronic retirement application process in June 2025. This overhaul will eliminate paper submissions, speed up processing times, reduce administrative burdens, and improve the experience for federal employees applying for retirement.
Despite its reported successes, the Department of Government Efficiency (DOGE) has faced significant criticism and resistance. One major concern is the aggressive cuts to essential services. DOGE’s rapid downsizing and budget reductions have impacted critical areas such as health programs and social services. Critics warn that these cuts risk undermining public welfare and national preparedness, disproportionately affecting vulnerable populations who rely heavily on these services. (Picchi, Aimee, 2025)
Another issue is the plan to reduce the federal workforce by up to 75 percent. Such drastic workforce reductions raise fears about losing valuable institutional knowledge and operational capacity. Many experts argue that this could impair the government’s ability to function effectively and respond to complex challenges. (Schwabish, Jonathan, 2025)
Transparency and oversight have also been points of contention. Although DOGE promotes transparency, its operations have been criticized for secrecy and limited public accountability. Elon Musk’s role as an unpaid advisor without formal government authority has fueled debates about the legitimacy and oversight of the department’s activities.
Additionally, DOGE’s reforms have encountered legal and political challenges. The department has faced lawsuits, employee protests, and political resistance, which have complicated implementation efforts. These challenges raise important questions about how to balance the drive for efficiency with democratic governance and workers’ rights.
Finally, some independent analyses question the accuracy of DOGE’s claimed savings. Critics suggest that the reported $160 billion in savings may be overstated or contain errors. Moreover, the cuts could have unintended long-term costs by weakening revenue-generating functions and critical research capacities within the government. (Picchi, Aimee, 2025)
The DOGE example and global cases offer valuable insights for Trinidad and Tobago’s public sector reform. Like DOGE’s disruption of bureaucracy, Trinidad and Tobago must embrace bold reforms that replace outdated processes and management with merit-based, tech-enabled leadership. While DOGE’s approach in the US included aggressive staff cuts and rapid downsizing, which made it controversial and “hated” by many, the lesson for Trinidad and Tobago is not about eliminating jobs. Rather, it’s about the willingness to pursue bold, sometimes unpopular reforms that are necessary for long-term sustainability. In T&T, this means focusing on process improvement, redeploying and upskilling talent, and leveraging technology to deliver better value for money. The “hard pill” is the commitment to real accountability and efficiency, not mass layoffs.
The transformation of the public sector in Trinidad and Tobago will have significant effects on government subsidies, revenues, and overall efficiency. Beyond boosting the economy, creating
an efficient government through the removal of paper-based processes, introducing interoperable digital systems, reducing bureaucracy, and training top public sector talent will improve all sectors. For example, adopting digital solutions like AI diagnostics in public health can improve outcomes and lower costs. In education, integrating digital learning and AI tools can reduce the need for extensive physical infrastructure and enhance educational quality, strengthening the workforce for future growth. Fully digitizing government services such as permits, licenses, and registrations will reduce operational costs, increase transparency, and generate more revenue through service fees. Increasing efficiencies in the public sector allow the government to generate more revenue and make key investments. One such investment could be diversifying the energy sector by supporting renewable energy sources like solar and wind, exploring green hydrogen production, and revitalizing existing refineries by integrating hydrogen technologies. These steps would reduce reliance on fossil fuels while using current infrastructure to support a cleaner and more diversified energy future. Overall, these changes will create a more responsive, efficient, and citizen-centred government that supports sustainable development and economic diversification in Trinidad and Tobago.
Conclusion
Lastly, both the People’s National Movement (PNM) and the United National Congress (UNC) have made bold promises in their manifestos, ranging from integrity and efficiency to diversification and modernization. However, the repeated inability to fulfill these commitments is not simply a matter of political will or effort. Instead, it reflects the reality that Trinidad and Tobago’s core government processes are so fundamentally flawed, inefficient, and resistant to change that even well-intentioned leaders are set up to fail. The persistent issues — outdated workflows, weak internal controls, lack of accountability, and unchecked spending — create an environment where promises cannot be delivered, no matter which party is in power. Both parties have encountered the same obstacles: attempts at reform are undermined by red tape, fragmented systems, and a culture that tolerates inefficiency and waste. Until these underlying process failures are addressed and government spending is brought under control, manifesto promises will continue to go unfulfilled. True progress requires a shift in focus: from making new pledges to fundamentally transforming how government operates. Only by fixing the machinery of the state — streamlining processes, enforcing accountability, and prioritizing efficiency — can any government hope to deliver on its promises and restore public trust.
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