Don't knock foreign investors

The Editor, Sir:

I read with disappointment a letter from a Ms Carol Carter (August 14, 2010), criticising Lance Neita's article which identified a number of possible positives associated with Chinese investments in Jamaica. Ms Carter appears to be suggesting that foreign direct investments into Jamaica are tantamount to us selling our birthright and should not be encouraged as these potentially undermine the welfare of Jamaicans (my words).

First, I fully support Ms Carter's right to express her opinions, and, further, would be happy to see many more Jamaican entrepreneurs investing in the local economy. I also support the view that Jamaican companies interested in investing should be accorded the same and even more support towards expanding their business interests in the local economy, especially if those interests will lead to expanded local employment, the creation of economic value, and foreign-exchange earnings.

Attracting foreign capital

At the same time, however, we must be careful to recognise that as a country we are better off today because we have been able to attract and sustain foreign capital, management and market access to a wide range of locally produced goods and services. This is most evident in telecommunications, tourism, mining (bauxite), and agro processing, just to name a few. We must recognise that we are part of a global village where all countries, even those with highly planned economies such as our neighbour, Cuba, have recognised the benefits of foreign investments and taken steps to actively attract and accommodate these investments.

The issue for me is that we take steps, when we seek to attract foreign investors, to ensure that local investors are offered the same opportunities and there is a policy framework that supports an investment contract that translates to benefits to the local economy and the protection of the Jamaican citizenry. In the case of the sugar divestments, for nearly four years these assets were advertised for sale to both local and foreign investors. In addition, while the sugar factories are being sold, the lands for planting cane (approximately 30,000 hectares in the case of the Chinese investor) are being leased and therefore will reside in the hands of the Jamaican government on behalf of the people of Jamaica. In addition, all laws, commercial and otherwise, will apply to this investor, as is the case with any other investor.

Obvious upside

The obvious upside to this investment is that the industry will be expanded, thousands of jobs will be saved and additional ones created and the prospects for value-added activities in sugar refinery and ethanol production are real. How could this be perceived as bad for Jamaica?

The arguments advanced by Ms Carter about race and ethnicity are also unfortunate. Firstly, the package advertised for investments in the sugar industry did not specify nationality, race or ethnicity as a pre-qualification, rather a sound business plan, management skills, access to markets and capital to finance the investments. This, again, is standard procedure the world over. But further, allow me to remind all of us that our motto "out of many one people" was not a coincidence, but rather a recognition that this country was built on the efforts of many races, ethnic diversity and nationalities.

The Spanish, British, Africans, Chinese, Indians, and others all played a part in the history of our civilisation. They are still here.

I am, etc.,

CHRISTOPHER TUFTON

cctufton@yahoo.com

Ministry of Agriculture

Kingston