EDITORIAL -Gov't can't find economic starting blocks

THE ANALYSTS have been busy with comparative analyses to illustrate the magnitude of Jamaica's 12 medals - including four gold - at the London Olympics.

As we noted yesterday, in track and field, our medal haul placed us, in aggregate terms, third behind the United States and Russia, whose populations are, respectively, around 310 million and 142 million.

Measured by medals per number of people in the country, Jamaica, with a population of 2.7 million, was fourth. But when it came to gold medals, with four, we were, on a per capita basis, second only to Grenada, which boasts Kirani James' winning effort, and that country's sole medal in the men's 400 metres.

But there is one bit of comparative data, though on the face of it cute, about which this newspaper is not, and Jamaicans ought not to be, proud. It has to do with medals won relative to the per capita wealth of the country.

By that measure, Jamaica led the world. With a per capita GDP (gross domestic product) of US$5,562, each medal won by our athletes would, on a per capita GDP basis, be at a value of US$463.50. The gold would be at $1,391 each. Grenada, with a per capita GDP of US$7,780, or US$2,218 more than Jamaica's, is second in this ranking.

There would be perversity, in our view, for any serious celebration of this statistic, except of just how badly Jamaica has been left in the economic blocks and an example of world-class performance of some sectors despite the poor government management of the economy. To put it bluntly, that statistic, like potholes in the road and our lack of resources in schools, is an index of the country's poverty.

But worse, each new set of political leaders appears not to hear, or perhaps freezes on, the starter's gun. At least, that seems to be the case with the current lot.

Clear issues

Eight months ago when the Simpson Miller administration assumed office, the issues were already clear. Jamaica's four decades of anaemic economic growth was a notorious fact, as was our Greek-style national debt of 140 per cent of GDP.

That the debt was unsustainable was beyond debate, as was the fact that a new agreement with the International Monetary Fund would be critical to unlocking private capital markets and the freeing of resources from bilateral and multilateral institutions.

There were, as Donald Rumsfeld, the former US secretary of defence, might have put it, other known knowns. We knew that the International Monetary Fund had set specific criteria for it to open those negotiations and for its imprimatur. There had to be tax reform, pension reform and public sector reform to ensure, over time, sustainability in the national accounts.

It would be the best-kept secret in town if there has been any significant movement on these fronts. We discern no coherent economic strategy and the government seems directionless and floundering. Few would be surprised if it founders.

Moreover, its leader, and most credible communicator, seems to have abandoned the helm. Or should be false-started?

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