Unfinished business

Ronald Mason, Contributor

In all societies, there is the need to have consensus as distinct from unanimity. In Jamaica, we have the strong tendency to do tomorrow what ought to be done today, or better yet, what should have been done yesterday.

At this juncture of our Independence journey, we have still not achieved consensus as to what is the principal driver of economic activity for the growth and development of the society. Is it to be Government or private sector? The fence sitters are to be excluded if they offer public-private partnership as the response.

The 1970s saw the flirtation with democratic socialism. Persons would adopt catchphrases such as 'control of the commanding heights of the economy' and 'rapacious capitalist'. State-directed entities in areas that were not essential to governance became prevalent. Government owned and operated the JPS, ports, airports, agricultural endeavours at Hounslow and controlled commodities such as the cocoa and coffee industry boards.

In the sugar industry, production fell from pre-1970 highs of 500,000 tons to where we struggle to produce 30,000 tons today. This kind of failure does not represent well for the public sector driving economic activity.

POLAR OPPOSITE

In the private sector, Lasco Group is the polar opposite. GraceKennedy Group now has interests as diverse as retail, manufacturing, banking and insurance. They and other private entities have done well since the 1970s.

What is most commendable is that it was done in the private sector, with the Government recognising the need for acting as enablers. The Government granted waivers, licences and set up regulatory bodies such as the Financial Services Commission, Trade Board and the Bureau of Standards.

On review of what exists of the public entities, which of them would be preferred as we strive to come out of the malaise that passes for economic activity today? The answer is a most complex one.

What of the public-sector transformation? How will we account for the class divisions, race perception and the multi-tiered educational system which purports to be based on universality? The traditional high schools have little in common with outcomes had from the failing schools. This is where the future leaders and entrepreneurs are to be nurtured and encouraged.

I would find it interesting to review the backgrounds of the achievers featured on the television programme 'Wealth Magazine'. They, as achievers, had the tools to seek and attain economic success. The rare person makes it to CXC passes from the non-traditional failing school, yet the numbers of persons attending these schools is much larger.

Are we as a country ready to nurture, encourage and support with enabling policies the recreation of what once was the 21 families who owned the wealth of Jamaica? Should we be asking if the 21 families will ever relinquished the commanding heights of the economy?

The projection to the future 50 years finds a country with low educational attainment for the masses and a clash with technology that will result in low job creation, but ensure economic growth. WEBEX, smartphones, e-commerce, back-office operations in offshore locations and accommodating the time and language barriers will all have greater impact.

Has the decision been taken by the Cabinet that these activities will be driven in the national interest by those with profit motive? The knowledge and information age will not produce the best benefit where it is entangled in bureaucracy. Cabinet has to resolve the business of who will drive growth. I make the case for the private sector.

CASUALTIES OF GOVERNMENT

Let us look at the Cocoa Industry Board (CIB). Why does it exist? Is it to guarantee the quality and to protect the fine grade brand that our production is known for, or the reality that the CIB purchases the farmers' produce and then does not pay them for an extraordinarily long period, and when it does get around to paying, it is a miserly rate compared to the global market price.

We do not have value added. We do not have efficiency of reaping and collection. These are the casualties of Government and would be the polar opposite were the industry to be privatised. The marketplace would dictate prices and assure consistency of supply. The marketplace would provide for the maximising of profit.

Government would have to do the international interventions which assure brand protection for a fee levied on the cocoa industry. What prevails now is neither fish nor fowl. Government must regulate, set tax-focused policy, facilitate international trade, and get out of the way.

Remember, money is like a whore; it goes to the highest bidder. Let us finish the long debate. It is now stifling our dream to be the place of choice.

Ronald Mason is an immigration attorney-at-law, mediator, and talk-show host. Email feedback to columns@gleanerjm.com and nationsagenda@gmail.com.