Charting our way on the ROAD TO PROSPERITY

By Don Wehby

Over the last few years, our nation has been focused on an International Monetary Fund (IMF) agreement, primarily to get our fiscal house in order and to reduce the debt burden. With the current debt level of more than J$1.92 trillion, we have had no choice but to concentrate our efforts in this area.

I have also been reading in the press recently about where the growth strategy is for our country. That is a fundamental question, because without growth, it's going to be difficult, almost impossible, to achieve the targets set by the IMF and meet the goals and aspirations of the Jamaican people.

Before we talk about the specifics of a growth strategy, there are some fundamentals that we must hold our Government responsible for in order to have truly private-sector-led growth:

1. A simple, competitive tax system.

2. A productive and educated workforce.

3. Law and order.

4. Simplified, friendly bureaucracy.

5. Competitive energy costs.

6. Disciplined and strong fiscal management of the Jamaican economy.

How have we been doing in these critical areas over the last 25-30 years? I'd like to submit that we have been doing an extremely poor job. We must hold ourselves accountable. We - the private sector, Government, unions, and all stakeholders - are responsible.

I certainly believe that if improvement is shown in these areas, it will have a significant impact on investment and growth in the Jamaican economy. Since we launched the National Export Strategy (NES) in 2008, we have been slow in getting out of the blocks to start implementing the measures that will move our export needle significantly.

HARNESSING POTENTIAL

The NES was aimed at finding a way to harness the goods and services Jamaica has to offer for wealth creation and economic development, 'making Jamaica a leading per capita export country known for its commitment to creativity, innovation and exceptional quality'. The question is, how much closer are we to that goal, more than five years after the NES? Persons need to be made responsible and held accountable for meeting targets outlined. What gets measured gets done. Jamaica needs an export-led growth strategy, and this should include tourism and remittance.

The NES goals are to:

Increase export GDP from 19 to 30 per cent;

Increase contribution of the export sector to overall employment;

Reduce the ratio of imports to exports;

Diversify exports through value addition, increased contribution of services export, and access to new and emerging markets;

Build a competitive mindset among producers who have the potential to export.

I submit to you that if we implement these measures, this current agreement with the IMF could be our last.

There are also some major projects that can have a game-changing effect on our economic growth. Here are a few that I think can be implemented in the medium term:

The logistics hub.

The Harmonisation project.

More focused growth in agriculture and agro-processing so that we can export more and import less.

The ICT sector.

We have great plans, but from where I sit, we have an implementation and execution deficit culture which we must change to ensure that the projects mentioned above can be achieved in the agreed time frame and within the agreed cost. Again, what gets measured gets done.

Implementation of the game-changing projects mentioned, coupled with a healthy export sector, will equate to improved balance of payments and increased foreign exchange. This could put Jamaica on the road to much-needed growth and prosperity.

We are too much of a great and blessed country to be underperforming in our economic development as we have been for the past 30-40 years. We need to take control of our destiny and stop the blame game. Vision 2030 will have the opportunity to become a reality. Let us do it. We can do it!

God bless Jamaica, land we love.

Don Wehby is group CEO of GraceKennedy Limited. Email feedback to columns@gleanerjm.com.