Are the seeds beginning to sprout?

Ronald Mason Contributor

Jamaica has had many decades of poor, ineffective administrations. This is evidenced by declining rates of productivity. The gross domestic product has barely averaged 0.8 per cent annual growth. Unemployment continues at worrying levels, with youth unemployment above 30 per cent.

But for the significant and continuing migration of some of our most educated and industrious citizens, we would likely have had social unrest. We got to the point in the last two years where we could not borrow on the international money markets at any reasonable rate of interest. Grant funding was greatly jeopardised. We were in danger of a collapsing economy with all the attendant bad after-effects.

The country's credibility with the lender of last resort, the International Monetary Fund (IMF), was at a very low state.

The Government had begun the journey to bail water from the sinking ship called SS Jamaica. The effort was feeble and destined to fail. This led to the re-entry of the IMF. However, this time they came with a take-it, -do-it-or-you-sink attitude.

The IMF was prepared to have us wallow in our own devices and bear the harsh consequences. The negotiations were born of national consultation and were so demanding that mention was made of sovereignty being threatened and then tears flowed. We entered into the extended fund facility for four years on terms dictated by the IMF.

Correcting our indiscipline

All our years of sloth and indiscipline were now to be corrected without us having much choice. Do it or else. Here we are now, the first signs that the seeds planted by the reluctant farmer, at the direction of the overseer (the IMF), are beginning to sprout.

The value of the Jamaican currency has depreciated and we cannot establish a fixed rate of exchange. The politicians may follow the populist pleas, the people bear hardships, but the currency will find an economically justified level of exchange.

Our major trading partner, the United States, has an inflation rate of approximately two per cent per annum. Our rate of inflation is closer to 10 per cent per annum.

The value of the Jamaican dollar must be allowed to reflect this. In addition, we do not produce enough to positively impact this. Nor can we export our way out, as most of our manufactured goods are really fabricated from imported raw materials.

We must get real. The changes are coming.

Red Stripe now grows cassava to substitute in the beer-manufacturing process. This product is abundant and will be converted by value added, made attractive for export. Good.

Gore developers will now save the country some US$2 million, opting to use cement for roofing on their buildings. This will be used in place of imported material. Will the other developers follow their lead?

The Bog Walk Gorge is to be evaluated for the feasibility of damming. Let us imagine if it is found that it can be done, it would be a double project. Construction would provide jobs for years, water for domestic and irrigation purposes, as well as hydroelectricity generation. Recall that decades ago we generated electricity at Kent Village from the same source. This would be a renewable source, but I am expecting the environmentalists to clamour to save some animal or plant.

The north-south highway construction continues apace. The economic impact of being able to have commercial goods moved, bypassing this mountain range, will prove beneficial. In addition, the planned development for the adjoining 1,200 acres will also stimulate economic activity.

Lights are to be installed before July 2014 at Sabina Park, which will facilitate night cricket and other usages at the venue. Each activity there has the potential to increase the multiplier effect in the communities that border the park. May we begin an extensive marketing campaign to book events with some frequency. Initially, the installation of the lights will cost US$2.1 million, to be 97 per cent completed by a local firm.

The construction of the 381-megawatt electricity generation plant using natural gas is moving along. As this is written, we are awaiting the grant of the licence. This will have a ripple effect throughout the economy. Let us not reject the best option in search of the perfect alternative. I note some government safeguards have been included, designed to call for intervention if the project displays signs of faltering before the expected finish.

The bill to facilitate flexible work arrangements has been tabled in Parliament. This paves the way for increased productivity and job creation. At a recent workshop for export-led small businesses, the interest and participation was high, signalling a new era. We are at last moving in a new, serious direction.

The Jamaican economy grew by 1.8 per cent in the fourth quarter of 2013 over the corresponding period in 2012. There are signs of life. The seeds have begun to sprout. Let us reach for the full watering can. The seeds need all our help.

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