Witter sceptical that PIOJ growth strategy packs enough punch

The growth-inducement strategy unveiled by the Planning Institute of Jamaica (PIOJ) earlier this year does not sufficiently address the efficiency and effectiveness of private-sector management, according to University of the West Indies (UWI) economist, Dr Michael Witter.

Addressing a seminar on the growth strategy report on Thursday, Witter, having given a historical account of five-year plans previously crafted by successive governments since political independence in the 1960s, said increased labour productivity was a recurring theme.

"In most of them there is a call, 'Let's find a way to reduce the cost of labour'," he observed. "It is quite remarkable that they are trying to reduce the cost of labour and not recognising that it is making poverty endemic."

Improve management

He emphasised that while it was important to increase labour productivity, it was also important to increase the productivity, efficiency and effectiveness of private-sector management.

"If we are going to put them as captains of industry in charge of our fate, they have to take more responsibility than they had in the past," the economist said.

The seminar was organised by the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) at the Mona campus of the UWI.

Witter, a senior research fellow in SALISES, noted that while the growth-inducement strategy acknowledges the importance of international competitiveness, it is not quite as forthright in emphasising it as much as previous reports.

Referring to economic partnership agreement with the European Union as well as other changing trade regimes, he said it was important that the growth strategy address the issue of diversifying trade and developing strategies for Jamaica to re-engage an international economy.

In terms of sector strategies, he said, all the plans - from the independence plan to the present - has mining, manufacturing and tourism as the leading sectors, either projecting their revitalisation or sometimes, the expansion of agriculture.

Witter was sceptical that the PIOJ strategy would be a real game-changer.

"What is it that the growth-inducement strategy will do differently about the success of those previous plans, or those that didn't have any success in regard to these same sectors?," he asked.

Without answering the question directly, he said the document recognises energy as an important cause for inefficiency and lack of competitiveness because of its high cost.

"But I think it needs to play a more central role. The issue of energy and the way in which to transform the way in which we generate power in our society, the way in which we use energy needs to play a more central role," he said.

He argued that there is equally insufficient emphasis on technology in regard to competitiveness, given that when previous plans were developed there was a paucity or lack of information-communication technology, which is now more relevant in terms of establishing production structures.

Dynamic sub-sectors

Witter also suggested that the growth strategy should pay more attention to more dynamic sub-sectors rather than just looking broadly, say, at manufacturing.

"The national industrial policy tries to do that with the concept of clusters," he said, adding that "perhaps we could spend a little more time looking at activities having to do with culture and sport and so on."

While recognising that the growth-inducement strategy is linked to Vision 2030, Witter suggested that the short-term plan should be extended into a longer- term one, and become more inclusive by bringing in academics, especially the young students at tertiary institutions.

Under the project, the PIOJ anticipates growth in the following areas between 2011 and 2014:

crime reduction, in which it will target 100 communities throughout Jamaica;

asset mobilisation which involve introducing facilities such as a credit bureau in the financial sector, as well as private land and government property;

the competitiveness covering tax-policy reform, as well as energy, manufacture, agriculture, exports and human resources;

business networks incorporating tourism and other services, government, information communication technology, medium, small and micro-enterprises;

built environment utilising the Jamaica Development Infras-tructure Programme, and housing development; and

urban regional development, including the redevelopment of downtown Kingston, West Kingston, the port of Falmouth and the Montego Bay Convention Centre.

mcpherse.thompson@gleanerjm.com