Agri-business for economic growth

Delford G. Morgan, Contributor

JAMAICA'S ECONOMIC underdevelopment is rooted in our failure to craft and implement a coherent national development strategy that is pivoted around the strength of our national resources.

The inevitable consequences have been a steady decline in productivity, and an ominous and spiralling escalation in unemployment and unemployables, leading to a rise in social tensions among the underclass, as manifested in the violence unleashed on the society.

I think it fair comment that, despite so cruelly exposing our socio-economic vulnerabilities, our collective political leadership are yet to talk of, much more to fashion, a rescue plan to lessen our dependence on the very vulnerable tourism, bauxite and remittance sectors. There are no visible moves ahead to forge consensus on a common goal, born of a shared vision of what is to be done, even if we leave room for discourse on how best to proceed, among other things. There is, in short, a seeming cerebral inability to arrest our productive paralysis.

The agricultural sector is prime proof of our gazing. Jamaica, apart from its beauty and vibrant culture, boasts fertile and arable lands suited to the growing of tropical crops that once made the island the economic jewel in the English crown. I posit that, in the short to medium term, agriculture can become the main driving force of the economy and the catalyst for the expansion of the Jamaican manufacturing sector. The real profit in agriculture comes from adding value through processing which will, in turn, spawn a light industrialised sector. This has huge potential for economic activity in terms of revenue, wages (jobs), savings and more disposable income to improve standards of living.

For this to happen, resort must be had to an agri-business development plan (ADP). Such a plan must provide incentives to stimulate start-ups and upgrades to existing farms, as well as special grants or loans to tool and fit processing and storage facilities. There must, however, be coincidence and harmony between raw production, processing and markets. A focused, resourced and well-directed campaign to exploit our agricultural resources will be intolerant of unharvested or mass spoilage of output and idle factories.

This developmental path is being pursued by many developing countries to grow productivity. Rwanda, decimated 16 years ago by genocide, grew its economy in the five years leading up to 2009 by an average of 8.8 per cent per annum, and by a staggering 11 per cent in 2008. This was done partly on the back on an initiative they call "SMART FARMING", where farmers are encouraged to increase output for processing by planting the crops best suited for their region, rather than subsistence farming. In Ghana, President John Atta Mills in the 2009 Budget Debate declared that "agriculture will be the main driver of growth" in an economy growing above 6 per cent per annum for most of the past decade. It is in the area of processing that the sector is driving the growth of jobs and hope for ordinary Ghanaians. It is, therefore, not surprising that agriculture accounts for 42 per cent of GDP (a measure of economic performance) and 54 per cent of the workforce.

Self-reliance

The growing sophistication of the hospitality industry and local palates partly account for Jamaica's food bill being in excess of US$0.8 billion. Any successful drive for self-reliance in foods must ensure that quality and consistency do not become casualties. It is the production and processing of guilty products that will first, reduce imports and second, create jobs in the various links of the production chain. At the same time, and more so after the local market is tapped out, regard can be had for production for exports in niche areas.

Lest we forget, the State owns vast tracks of idle, arable lands and thousands of square feet of idle factories. A plan must be devised to dispossess our political overseers of these idle assets, and incentivise and encourage private-sector partnership to unleash the productive capacity of our agri-business potential.

Delford G. Morgan is an attorney-at-law, who can be reached at pepe.morgan@yahoo.com