Our new prime minister's first job

Tuesday, October 25, 2011

LIKE Mr Bruce Golding before him, Prime Minister Andrew Holness becomes chief executive of Jamaica in perhaps the worst global economic environment since the 1930s.

Assuming that he wins the next election, he will have a similar need to that of Mr Golding to make some very tough decisions, as the history of financial crises suggests that the current "modern day depression" may last for much of his new mandate.

We rather suspect that few, if any, will quarrel with our view that the first job of our new prime minister must be to fix Jamaica's economy. Without job creation, which is contingent on much faster economic growth, social progress based on handouts will eventually dissipate like mist in the wind.

We note that in his inaugural address, Mr Holness noted the need to break out of the vicious circle of Jamaica's debt where "we now borrow to repay previous borrowings". He outlined a plan to reduce Jamaica's debt by increasing revenue through tax reform, and managing expenditure through public sector wage moderation and the reduction of waste, bureaucracy and corruption. Over the next few weeks, our new PM will need to outline in much more detail Jamaica's strategy to deal with the debt and the International Monetary Fund (IMF).

The Opposition will also need to tell us what they would do differently, starting with whether they agree with the seven per cent increase in public sector wages, the chief cause of the strain on the current IMF agreement, as indicated yesterday by outgoing EU Ambassador Marco Mazzocchi Alemanni.

We found ourselves being able to share the view of the new PM in some other key areas of his address:

* that economic growth is closely related to labour productivity, itself a function of training, given that close to 70 per cent of our employed labour force is untrained.

* that removing inefficient bureaucracy would reduce the cost of doing business, corruption and cronyism. We believe a fresh look at how to involve the private sector further in this process, to build on and widen similar initiatives to the Jamaica Chamber of Commerce's (JCC's) "legs and regs" would help to provide the infusion of technology and business process engineering called for by the PM.

* that the high cost of energy "is a universal cry across all divides in Jamaica", and that "it is also universally agreed that Jamaica must diversify its energy sources and create competitive markets for the provision of electricity". Fortuitously, this extremely important debate about the future of Jamaica is to be directly addressed this coming Thursday at the JCC's 'Pluggin into Downtown' seminar.

* that it is necessary to remove the walls of the zones of exclusion called garrisons. We believe integrating these closed communities into a common vision of Jamaica requires a broad unleashing of social entrepreneurship, particularly through job creation, as has been noted by Dr Henley Morgan and many others.

As the PM seeks to apply new thinking to the old problems, we hope that the JCC seminar will provide fresh ideas for driving urban development, starting with the redevelopment of our capital city, akin to the Colombian capital of Bogota which, at its peak, had a significantly higher murder rate than Jamaica.

Most importantly, we must as Jamaicans recognise the need to funnel helpful ideas to the new Government, to ensure that we are all part of the solution, inasmuch as we all share ownership of the problem.

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COMMENTS (9)

wanda woeman
10/26/2011

It is strange that when the JLP sought state power you did not demand to know how they would do things differently. The PNP has no obligation to divulge their plans to you. It is the JLP which is in power who we should look to for the salvation they promised, and which you are so quick to defend in your 1st paragraph, offering the new PM an out before he even begins.
“You will do well, but just in case you don’t it is not your fault because we are undergoing the worst recession in 30 years.” We know that this reasoning would stop on Day 1 if the PNP ever gets to power. Other countries are doing well in spite of this recession, Guyana included, while Ja. has slipped several places in various world ratings.

Nejeeper KNG
10/25/2011

Maslow's Hierarchy of Needs states that the following needs have to be met to influence any personal development.
1. Biological and Physiological needs - air, food, drink, shelter, warmth, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, etc.
5. Self-Actualization needs - realising personal potential, etc.

Nejeeper KNG
10/25/2011

You cannot have a flourishing economy in an environment where criminals strike at will. They are targeting prominent business persons and robbing and killing at will. Safety is second on the list; without SAFETY according to Maslow you cannot have Belongingness, Esteem needs and Self-Actualization. Without safety it is impossible to flourish.

Nejeeper KNG
10/25/2011

Maslow's Hierarchy of Needs states that the following needs have to be met to influence and personal development.
1. Biological and Physiological needs - air, food, drink, shelter, warmth, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, etc.
5. Self-Actualization needs - realising personal potential, etc.

Meat Head
10/25/2011

Very well put, disentanglement from the IMF spiral is a critical long-term imperative, but it will be accomplished primarily through growing the economy, not austerity. In the short term, crime must be reduced and education and infrastructure improved, which will require spending. Austerity alone will not grow the economy as Greece and the UK have demonstrated and taxing/borrowing to redistribute will not either, as the PNP has also demonstrated. Our PM seems to understand this.

PL BOGLE
10/25/2011

There must be monetary and fiscal policies to promote economic growth and job creation for this country to move forward. Employment is a right of all those who want to work. Growth without job creation can only lead to frustration bitterness and anger, particularly of the youth, who in restiveness, can make social explosion to happen. And that will make nonsense of the highest of any economic growth.

kevin sanders
10/25/2011

If we don't bring crime under control no investment will survive. It is crime which has brought us to this high level of unemployment. Who wants to continue doing business when extortionists are plaguing you for money, thieves are breaking into your place of business or holding you hostage at gunpoint. I say we make an all out push to weed out the criminals among us. It is still too easy to acquire a gun legally or illegally.

D T
10/25/2011

A reduction is crime will fuel new business all over the country. Once these business start to rise up we will need trained professional to work and carry us into the 21st century. Education is needed to get these people properly trained, we have to show the young in Ja that there is a better future than crime. We cant always use force it only makes then tougher, lets us work together for a better Ja it is the only way forward

0o k
10/25/2011

The Comrade Opposition is a joke. Throughout the 2007 Campaign, they ramped up negative arguments about going to IMF, now they want more IMF Money to fund Crash Programmes.
Drew must carry out the GOJ/IMF Deal to the letter, don't watch the noise in the marketplace.
The Economy, Education and Crime should be the PMs focus.

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Our new prime minister's first job