EDITORIAL - Jamaica's problem of implementation

WE FIND insightful the view of Stanford University Professor Donald Harris that "historically we have had a big problem of implementation in Jamaica".

Professor Harris, a consultant economist with the Planning Institute of Jamaica (PIOJ), made this comment while promoting the institute's 'Growth-Inducement Strategy for Jamaica in the Short and Medium Term' before a group in Kingston last week.

While we make no comment on this occasion about the feasibility of the PIOJ's growth strategy, we find Professor Harris' observation about the country's implementation capability instructive. After all, the Jamaica-born professor played a leading role in developing the National Industrial Policy (NIP) under the P.J. Patterson administration in the 1990s.

That policy picked winners or industry clusters for which the State and private sector would collaborate in seeking local or foreign investors.

Except for the telecoms subsector, which fell under the wider information and communication technology sector, it is difficult to assess today the level of success in the implementation of the NIP.

If we review an earlier period, there was Agro21, an agricultural growth thrust under the Edward Seaga administration of the 1980s. The success of this programme is debatable. And there are other examples, across administrations, that raise questions about the country's implementation capability.

In his comments last week, Professor Harris posited that the implementation process could be made simpler if the Government concentrates on "a few things" spread over time.

But, based on our observation, the inability of successive administrations to focus on a defined set of projects/goals in the economic sphere over a sustained period has contributed significantly to our poor execution record.

Five-year electoral cycle

One factor, we suggest, that interrupts the implementation of economic policies and programmes is the five-year electoral cycle. Within this period, the political business cycle comes into play, where governments manipulate economic and/or fiscal policies and programmes to 'run wid it' in ensuring political gains in the ensuing electoral contest.

Furthermore, changes in political administrations frequently result in changes in critical personnel at the policy-implementation level - as we have observed with the current administration - which interrupts programme implementation.

Frequent interruptions by the political business cycle rob economic policies and programmes of stability and credibility, which are essential for sustained growth. As Professor Harris stated, "You can then demonstrate credibility in the programme ... and on that basis, you can build a platform to carry on growth in Jamaica."

Overcoming the negative effects of the five-year electoral cycle will require political maturity on the part of political players, as well as the wider society, to put the economy first.

A good place to start is for the Government, Opposition, private sector and labour to sign off on the protracted social partnership in which they are expected to agree on long-term economic goals that will be insulated from the political business cycle.

We suggest the PIOJ's 2030 Vision for Development as a good blueprint to follow.

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