Positioning Ja for growth
Published:Thursday | May 16, 2013 | 12:00 AM
THE EDITOR, Sir:
The International Monetary Fund (IMF) agreement has been approved with the objective of restoring macroeconomic stability/price stability as a necessary condition for investment and growth. However, as yet, there is no plan for economic development, despite all the rhetoric, and column inches published by Government and private individuals. In my view, only Financial Gleaner columnist Wilbern Persuad has made a sound suggestion regarding what might be termed as the need for information on lessons learned from past failures and business models.
His observations I include in my suggestion for policy and project consideration as follows:
Conduct business case studies of the efficacy of organisational models and identify lessons that ought to be learned from failure of large public- and private-sector enterprises in the recent past. This should include Air Jamaica and a host of FINSAC-related enterprises. It should be noted that already a report has been published on Lehman Bros and its role in the US recession. We need to know what are the causes of failure, learn lessons and make the necessary policy/decision-making adjustments.
Place on the agenda for implementation the growth-inducement strategy, which is the only realistic proposal on the table. This strategy was criticised before it was even completed by ex-politicians and armchair economists. Yet nothing of consequence has been presented except rhetoric regarding failed past projects.
Formulate a long-term economic modernisation and transformative growth strategy. This would involve massive reorganisation of the human-capital development programmes with rationalisation of educational financing, development and implementation of technical skills-training programmes, apprenticeship programmes, as well as subsidies to progressive firms to undertake training programmes.
An industrial estate should be developed on the Vere Plains in Clarendon with wharf, airport, factory space, and housing.
Plan and implement an economic modernisation strategy and halt focusing government resources on gaming, and enclave tourism. The returns and exclusion from beaches, as well as import dependence do not justify the investment. The young people of Falmouth made this plain in interviews weeks ago. The Government and private sector should invest in the diversification and variety of tourist offering.
The Jamaica Manufacturers' Association president has called for job-creation and investment incentives. Government should call the bluff, if it is one, or give support if it is genuine. In any event, we need the private sector to step up to the plate. Some of the imports are just rubbish, including toothpaste that does not melt, razor blade that does not cut but press hair, toilet paper - enough said. However, the consumer must not be asked to pay more for similar products. The latter type of import substitution failed in the past.
REFORM NECESSARY
Public-sector reform is a must with or without the IMF. This should not just involve the amalgamation of agencies and cost reduction, but more significant improvements in the effectiveness of the agencies must be achieved. This involves a review of workload, personnel performance etc. Everyone from permanent secretary to clerk should be reviewed and, if found wanting, separated. The last reforms in the '80s and '90s only dealt with cost savings and resulted in staff that were not liked, or out of favour, being separated; or in many cases competent ones taking a package and then rejoining the service on contract.
Some agencies in their current form are obstacles to investment, including the National Land Agency and parish councils. In many cases, it takes decades to get a land title. How is that for efficiency?
MARTIN AFFLICK