Political and economic peculiarities, Jamaica-style
Published:Friday | June 10, 2011 | 12:00 AM
I once met a most interesting person, an engineer, who from the tenor of conversation may have been permanent secretary in our ministry of construction, or works, or housing — one of those that handles projects making or building things, spend big money creating measurable physical realities.
Can't recall the person's name. Even if I did, I wouldn't reveal it here.
We discussed lamentable waste in government expenditure. In instances I recounted there was obvious substandard construction. A sidewalk for instance, constructed below specifications - an abundance of sand but little cement - it was bound to fail and need fixing in a matter of months, not years.
Treasury cost would double, not mentioning other inevitable economic costs and potential loss of life from accidents caused by dangerous walkways.
This worldly, wise, experienced engineer civil servant was guiding me, a young inexperienced economist, still wet behind the ears, to look not from an economic or construction viewpoint but from Jamaican political reality.
The walkway, gully works, or roadway would go through three rounds of construction. First round provides work to party supporters through an area leader or 'don'.
At this time, the facility's specifications and longevity are non-issues - of no consequence. This might happen close to an election.
The second round occurs as inevitable failures emerge - more work and money circulate.
Finally, thrice lucky this time, the real work is entertained, specifications met. Perhaps it may be close to another election cycle.
Reflecting on this view, you find not too much with which to quarrel. Does it fit the reality we know? My hope is that the J$800-million one-mile piece of roadway to be constructed in Audley Shaw's constituency has collapsed the three phases into one. If that is so, we should commend Minister Henry for farsightedness. If not, well, who can help us?
This, of course, brings us to China loans, IMF, JDX, our finance ministry's agenda for growth and the perception revealed to us, about ourselves, from WikiLeaks.
My last column suggested WikiLeaks cables provide a reflectively piercing looking glass. Like a woman's makeup mirror magnifying each blemish before it is artfully hidden. Like your presumed friend chatting about you to another in your absence.
As a fly on the wall, you'll learn much. Is this a true friend? Should we not have known it before, we know now, the United States is by no means our friend despite Bustamante's exhortation: 'we are with the West'.
Palmerston was right: countries have only permanent interests, not friends. If we, as a country, naively believe the opposite, the West certainly makes no such error.
We squander our patrimony, deny funding for education but happily pay sums as high as US$41 million (J$3.52 billion) in cost overruns on construction projects. We give away national assets to plunderers who make political contributions, or who may facilitate three months' food imports for special treatment in bauxite negotiations.
When we face predictable, inevitable fiscal and balance of payments difficulties, we go on the hunt for mild terms in negotiations with the IMF.
We are the fools if we believe the USA shall go out to bat for us - even if it is US corporate citizens that benefit from our corruption or stupidity. If WikiLeaks cables remove the cataract from our eyes, The Gleaner shall have done us a favour.
unclear lessons
Yet, honestly, what we have learnt is unclear.
Did we not know that the Trafigura incident forced postponement of the election from 2006 to 2007, thereby perhaps occasioning the PNP loss and JLP win? If Jamaicans did not know, the Americans, British and Canadians certainly did.
Did we not know that the Americans, British and Canadians worry about the way in which we spend their outright aid, loan money and those from the IMF?
Did we not know that they worry about the way in which we would use and protect their technology for law enforcement, defence or war as we wish? They know corrupt political figures siphon off funds for themselves and supporters; they worry about criminal elements creeping into our governance structures, not because they love us but because they want to protect themselves.
Yet none - neither the US, Britain nor Canada - can boast squeaky cleanliness and corruption-free politics. Quite the contrary.
The difference is that ever so often we get a high-profile arrest, prosecution and jail time. Jamaica frowns on such happenings. We do not readily imagine top-notch lawyer, banker or politician in lockups five or 10 to a cell.
I recall two cases in 30 years but we'll certainly have to change our jail accommodations; I forget, we still have the farm at St Mary.
Now to the China loan, the IMF and JDX: you ask how in the world do you connect these? Actually, China must use some of its massive holdings of US-dollar denominated reserves. It, too, has 'permanent interests' if not friends. It must make its way in a hostile world knowing it shall face opposition from the West founded on nothing but misunderstanding at best, prejudice and jingoism at worst.
Money, like water seeps, through any crevice or bursts any dam seeking its own level. In the same way, we might view as one source, the China loan, JDX and IMF that provide funding whose impact we must optimise.
It is for us to see our permanent interests and so structure our economic policy responses to take the utmost benefit from the cards we draw. The hand is not as bad as it might seem should we play skilfully. Our finance ministry should contemplate these issues.
Can Jamaicans subscribe to bonds geared to particular developmental objectives or has JDX so damaged the credibility of the Government as borrower? Can the Government achieve the loyal following attained, if only for a time, by OLINT and Cash Plus? These are thoughts perhaps fit for Jamaica's interesting political and economic peculiarities.
Wilberne Persaud, Columnist