Jamaica's economy and survival - what if, what then?

Collette J.-A. Smith, Contributor

If we should strip the Jamaican economy of the multilateral and bilateral organisations to which we are becoming increasingly indebted, what then? What if those donors and lending agencies suddenly begin to experience cash-flow challenges that prevent them from fulfilling the promises to continue lending? What then?

Being able to make unpopular decisions which lead to improvements in a number of macroeconomic variables is good, and was necessary. However, is that sufficient? Jamaican bondholders who made the sacrifices to surrender their high-interest-(coupon)-bearing bonds ought to be commended. Though the debt cost (i.e., interest cost) may be lower, we continue to borrow and increase the volume of debt. What then?

Now, Jamaica is at a juncture where we are not producing our way out of the spiralling debt. What is our game plan? Professor Anthony Clayton of the University of the West Indies' Institute of Sustainable Development, and others, have long spoken about the multibillion-dollar benefits that can accrue to Jamaica from the bio-flavanoid industry (use of herbs and spices for medicines, essences, flavours, colouring, etc). Other realistic recommendations have also been made, while others are coming in the form of empirical research findings.

Agro-processing expansion

One recommendation which will be presented in my research, for example, is the expansion of agro-processing beyond traditional companies like GraceKennedy and others to the local and regional community level. Through strategic alliances and partnerships, farmer groups and the Rural Agricultural Development Authority can organise these companies/cooperatives. With a proper business plan, good corporate governance/management, clearly outlined strategies, and an excellent prospectus, they can be listed on the Junior Stock Exchange. Persons locally and in the diaspora can then purchase shares in these cooperatives/companies. The target markets will be both local and within overseas locales where there are Caribbean people with a desire (palate) and need for local foods (properly processed and packaged to international standards).

Why has a country so abundantly blessed with water and sunshine not maximised the benefit of hydro and solar energy/power generation? How long will we wait for others to create and copyright what we can do for ourselves?

What prevents us from revitalising our woodwork and metalwork industries to manufacture furniture and fittings for the local market and export? I know a major real-estate developer who has carried on his grandfather's and father's business. His first 'experiment' was a wooden desk, until he made one out of metal. This is now proudly displayed in his office. We have many members of our youth population who would be gainfully employed in this industry.

Additionally, can we bring the executive agencies of Government up to efficient levels, with desired management structures and assessment of person-job fit, where they begin to function autonomously, generate profits and pay taxes? Once these goals are achieved, they may also be considered for public listing to access low-cost capital for government budgetary support of the same agencies.

Better development plan needed

Prudent management of these revenues will be key to sustainable development and long-term growth. We need a robust, realistic, consensus-driven development plan, aimed at:

Instilling a sense of personhood and civic pride.

Developing and harnessing the skills of our people, in areas where they are best suited. Call out the psychometricians - and let the psychologists come along too. Let them help us to identify the aptitudes of our people using scientific methodology as early as the primary-school stage so our people can begin to develop a sense of purpose as they find their niche.

Identifying and honing our distinctive competencies - with the requisite legal protection for long-term benefits, and preventing piracy of their material and other innovations.

Embracing the pillars of good governance, where respect for the rule of law, ethics and accountability becomes our modus operandi.

Collette J.-A. Smith is CEO of CJAS Consultancy & Training. Email feedback to columns@gleanerjm.com and c_jas2002@yahoo.com.