LETTER OF THE DAY - Private sector: long on demands, short on vision
Published:Tuesday | September 28, 2010 | 12:00 AM
The Editor, Sir:
I would like to comment on your articles 'Developing competent leaders' of September 26, and 'Prescriptions for growth, jobs' of September 27. When viewed together they portray a very interesting diagnosis of the private sector umbrella organisations as agents of change.
One of the classic roles of effective government in a democratic market-oriented society is to provide the infrastructure that allows and encourages free and fair exchange, under the restraint of affordability. The expectation is that the Government will implement policies which encourage the expansion of the private sector. The prudent approach is to engage policies that have a positive marginal return. It is evaluated by positive gross domestic product or net employment over a reasonable period.
The generic role of the private sector is to recognise and create demand, and provide the goods and services to meet that demand. They will, from time to time, seek the assistance of government at various levels, to assist them by enacting new rules, legislation and procedures with a view to enhancing their bottom line. This most recent 'prescription' gave no measured result from the changes they hoped to achieve. It is a number of specific demands, but there is a sense that these leaders do not have a long-term vision and it failed to inspire.
For this reason, even as an advocate of the private sector, I suggest that the propositions put forward by them have been received with scepticism. In order to receive broad support, the private-sector organisations should provide candid estimates of the improvement these changes will generate. What are the projected net savings, and how many new jobs will be created?
Job creation important
People need jobs and the Government will listen if the message of job creation is conveyed in the changes you seek. The country has a limited tax base from which it receives revenue. If you can show how the Government can save or how it can generate additional revenue from an expanded base, they will listen.
It is also about how the available resources are utilised. The continuous improvement of all the factors of production is very important. Effective cohesion between education and training will enhance the permanent development of the workforce. The empirical evidence provided in the article 'Developing competent leaders' illustrated that the private sector has not been good managers of their human resources. As a part of the strategic vision, serious companies recruit wisely and develop leaders who will ensure the continuity of their organisation.
I am, etc.,
LAWRENCE CUMMINGS