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Prime Minister Golding must change course
GEORGE LAWSON
Friday, October 19, 2007
LET me begin by congratulating Team Golding for clinching victory in the exciting, long, hard-fought general election campaign and the professional and clean manner in which it conducted its campaign. Most impressive about Team Golding's trek to Jamaica House was the manner in which the Jamaica Labour Party stuck to the issues, as it fought very successfully in driving home those points.
The mismanagement of the near-stagnated economy, corruption and ineptness, the unfriendly business climate, perpetual scandals, waste, cost overruns, an out-of-control crime rate, the high cost of education and its failing system, a rising and out-of-control unemployment level, to list a few of the negatives that held sway under the PNP's near two-decade rule, had reached unprecedented levels. The electorate's tolerance level ran out, and they voted for a change. And now the long hard race to Jamaica House is over and, as was anticipated by many, the Golding-led JLP has clinched victory. While the margin of victory was not what many were anticipating, the fact still remains that Golding and the Labour Party were accorded a mandate by the electorate, and now it is time for Team Golding to get to work.
Between 1962 and 1972, the nation moved forward - socially, economically and politically - under a business-friendly administration, as it experienced years of double-digit economic growth. Our GDP then was a shining example for others to follow. Today, it has been all but reduced to rubble. As a newly independent state we demonstrated to the rest of the world that we had the capability to be a nation on the move. Singapore's Lee Kuan Yew was elated about our nation's successful economic model and subsequently sent an emissary to Jamaica to look at it, later copied it, perfected it and today Singapore's economy is on the move while we are currently at the bottom of the ladder. Can Team Golding get the nation back on track? Teamwork can do it, in the same manner teamwork broke the PNP's 18-year stranglehold on government.
Where did we go wrong?
Our country's economy has gone 'straight to hell', which is no fault of the Jamaican people. The slide began in the '70s and escalated in the '90s, the result of bad political decisions, all attributed to both PNP administrations. While the slide began under PNP Democratic Socialism in the '70s, Jamaica's greatest economic crash came about in the '90s - the era of the great economic meltdown. The meltdown resulted in the administration's painful economic intervention - the creation of FINSAC. Golding must rid Jamaica of this evil monster (FINSAC). The recent condemnation of this monster by affected local businessmen cannot be taken lightly. The savage destruction of the indigenous banks, their owners, other entrepreneurs was the result of bad political policies. The administration's intervention was, in the eyes of the affected bankers and entrepreneurs, a hostile one.
As former Crown Eagle chairman Paul Chen Young stated in a recent letter to the Gleaner, "In most countries that have experienced turmoil in the financial sector, speedy action is taken by the authorities to intervene and to help restore order. The financial sector is like no other sector. This is what is described as the 'commanding heights of the economy', from which there are numerous implications for credit policy and the use of a country's financial resources.
It is because of this reason why then minister of finance, Mr Edward Seaga embarked on the successful 'Jamaicanisation' programme of the financial sector in the 1960s. It took over 30 years for Jamaicans to develop a comprehensive and sophisticated financial sector that Finance Minister Davies dismantled in just about two years.
The revitalisation and building of hotels in the 1990s, including the divestment of government-owned hotels, is the best example of how the financial sector, owned and controlled by Jamaicans, played a vital role in the country's development. Foreign-owned banks sat on the sidelines and escaped the meltdown as ruinous high interest rates and inflation crushed the now maligned indigenous entities which committed resources to helping to develop the country."
Paul Chen Young's observation supports my concept that it was bad policies that cause the crash of the '90s. our most disastrous economic meltdown.
The role of the banking and financial sectors
The Jamaican banking & financial sectors demonstrated phenomenal growth, particularly among the indigenous banks. I recall a financial review written by veteran journalist Carl Wint of the Gleaner who praised the innovation and professional standards brought to the banking industry by none other than our local pacesetters, Don Crawford of the Century Group of Companies, and Paul Chen Young of the Eagle Group. Another very noted professor, Dr Carl Stone, made similar observations and commendations.
Take a look at the contributions of those two gentlemen in the fields of tourism, banking and insurance. They were brutalised and abused by acts of injustice, and are in self-imposed exile in "The land of The Free, and the home of The Brave" - the USA.
Jamaica today would do well with such talents, patriotism, and dignity. The fallout of the country's financial sector must be placed squarely at the feet of the rotten policies of government that wiped out the entire financial and investment sectors, and created unprecedented poverty and a deprived generation.
Bring back the indigenous bankers and entrepreneurs
The Golding administration should do whatever it takes to get those local pacesetters (Don Crawford, Paul Chen Young) and other technocrats back to Jamaica, so they can assist in bringing the economy back on track. The hostility unleashed on Crawford, Chen Young, and other local entrepreneurs was a bad course to have taken. Since Golding intends to change course, the time is ripe for his finance minister, his attorney general, the solicitor general and others to sit down at the conference table with Crawford, Chen Young et al, and come to some amicable settlement that will send a clear signal to the international investors' world that Jamaica is serious and mature enough to embrace and welcome foreign participation.
Until these ugly issues are amicably resolved to the mutual satisfaction of both state and investors there will forever be doubt about Jamaica's readiness to welcome international investors. There are no doubts that these investors wield a great deal of influence and could facilitate the process of development. The long drawn-out legal battle being fought in the court between the state, Crawford, Chen Young et al should be settled. It is high time that closure be brought to these matters.
I am therefore imploring the new administration to bring back the indigenous bankers without delay. The economy needs fixing! With a successful economy there will be more jobs, and with more jobs we could see a drastic reduction in the crime rate, as has been the case in New York.
The appointment of GraceKennedy's Don Wehby is a major step in what could be a successful marriage between the private sector and the state. Golding and his team should ignore the detractors who are creating a storm in a teacup over Wehby's appointment. A while back I advised Golding not to listen to the negative spin doctors and detractors, but to heed instead the voice of the people.
I will once again reiterate, Bruce, please listen to the voice of the people, ignore the detractors, do what is best for the nation. Full speed ahead, Bruce, the people gave you the mandate.
George Lawson is a freelance journalist and a lecturer in Mass Communication in a New York City College. Send comments and criticism to Geelaws@hotmail.com
GEORGE LAWSON
Friday, October 19, 2007
LET me begin by congratulating Team Golding for clinching victory in the exciting, long, hard-fought general election campaign and the professional and clean manner in which it conducted its campaign. Most impressive about Team Golding's trek to Jamaica House was the manner in which the Jamaica Labour Party stuck to the issues, as it fought very successfully in driving home those points.
The mismanagement of the near-stagnated economy, corruption and ineptness, the unfriendly business climate, perpetual scandals, waste, cost overruns, an out-of-control crime rate, the high cost of education and its failing system, a rising and out-of-control unemployment level, to list a few of the negatives that held sway under the PNP's near two-decade rule, had reached unprecedented levels. The electorate's tolerance level ran out, and they voted for a change. And now the long hard race to Jamaica House is over and, as was anticipated by many, the Golding-led JLP has clinched victory. While the margin of victory was not what many were anticipating, the fact still remains that Golding and the Labour Party were accorded a mandate by the electorate, and now it is time for Team Golding to get to work.
Between 1962 and 1972, the nation moved forward - socially, economically and politically - under a business-friendly administration, as it experienced years of double-digit economic growth. Our GDP then was a shining example for others to follow. Today, it has been all but reduced to rubble. As a newly independent state we demonstrated to the rest of the world that we had the capability to be a nation on the move. Singapore's Lee Kuan Yew was elated about our nation's successful economic model and subsequently sent an emissary to Jamaica to look at it, later copied it, perfected it and today Singapore's economy is on the move while we are currently at the bottom of the ladder. Can Team Golding get the nation back on track? Teamwork can do it, in the same manner teamwork broke the PNP's 18-year stranglehold on government.
Where did we go wrong?
Our country's economy has gone 'straight to hell', which is no fault of the Jamaican people. The slide began in the '70s and escalated in the '90s, the result of bad political decisions, all attributed to both PNP administrations. While the slide began under PNP Democratic Socialism in the '70s, Jamaica's greatest economic crash came about in the '90s - the era of the great economic meltdown. The meltdown resulted in the administration's painful economic intervention - the creation of FINSAC. Golding must rid Jamaica of this evil monster (FINSAC). The recent condemnation of this monster by affected local businessmen cannot be taken lightly. The savage destruction of the indigenous banks, their owners, other entrepreneurs was the result of bad political policies. The administration's intervention was, in the eyes of the affected bankers and entrepreneurs, a hostile one.
As former Crown Eagle chairman Paul Chen Young stated in a recent letter to the Gleaner, "In most countries that have experienced turmoil in the financial sector, speedy action is taken by the authorities to intervene and to help restore order. The financial sector is like no other sector. This is what is described as the 'commanding heights of the economy', from which there are numerous implications for credit policy and the use of a country's financial resources.
It is because of this reason why then minister of finance, Mr Edward Seaga embarked on the successful 'Jamaicanisation' programme of the financial sector in the 1960s. It took over 30 years for Jamaicans to develop a comprehensive and sophisticated financial sector that Finance Minister Davies dismantled in just about two years.
The revitalisation and building of hotels in the 1990s, including the divestment of government-owned hotels, is the best example of how the financial sector, owned and controlled by Jamaicans, played a vital role in the country's development. Foreign-owned banks sat on the sidelines and escaped the meltdown as ruinous high interest rates and inflation crushed the now maligned indigenous entities which committed resources to helping to develop the country."
Paul Chen Young's observation supports my concept that it was bad policies that cause the crash of the '90s. our most disastrous economic meltdown.
The role of the banking and financial sectors
The Jamaican banking & financial sectors demonstrated phenomenal growth, particularly among the indigenous banks. I recall a financial review written by veteran journalist Carl Wint of the Gleaner who praised the innovation and professional standards brought to the banking industry by none other than our local pacesetters, Don Crawford of the Century Group of Companies, and Paul Chen Young of the Eagle Group. Another very noted professor, Dr Carl Stone, made similar observations and commendations.
Take a look at the contributions of those two gentlemen in the fields of tourism, banking and insurance. They were brutalised and abused by acts of injustice, and are in self-imposed exile in "The land of The Free, and the home of The Brave" - the USA.
Jamaica today would do well with such talents, patriotism, and dignity. The fallout of the country's financial sector must be placed squarely at the feet of the rotten policies of government that wiped out the entire financial and investment sectors, and created unprecedented poverty and a deprived generation.
Bring back the indigenous bankers and entrepreneurs
The Golding administration should do whatever it takes to get those local pacesetters (Don Crawford, Paul Chen Young) and other technocrats back to Jamaica, so they can assist in bringing the economy back on track. The hostility unleashed on Crawford, Chen Young, and other local entrepreneurs was a bad course to have taken. Since Golding intends to change course, the time is ripe for his finance minister, his attorney general, the solicitor general and others to sit down at the conference table with Crawford, Chen Young et al, and come to some amicable settlement that will send a clear signal to the international investors' world that Jamaica is serious and mature enough to embrace and welcome foreign participation.
Until these ugly issues are amicably resolved to the mutual satisfaction of both state and investors there will forever be doubt about Jamaica's readiness to welcome international investors. There are no doubts that these investors wield a great deal of influence and could facilitate the process of development. The long drawn-out legal battle being fought in the court between the state, Crawford, Chen Young et al should be settled. It is high time that closure be brought to these matters.
I am therefore imploring the new administration to bring back the indigenous bankers without delay. The economy needs fixing! With a successful economy there will be more jobs, and with more jobs we could see a drastic reduction in the crime rate, as has been the case in New York.
The appointment of GraceKennedy's Don Wehby is a major step in what could be a successful marriage between the private sector and the state. Golding and his team should ignore the detractors who are creating a storm in a teacup over Wehby's appointment. A while back I advised Golding not to listen to the negative spin doctors and detractors, but to heed instead the voice of the people.
I will once again reiterate, Bruce, please listen to the voice of the people, ignore the detractors, do what is best for the nation. Full speed ahead, Bruce, the people gave you the mandate.
George Lawson is a freelance journalist and a lecturer in Mass Communication in a New York City College. Send comments and criticism to Geelaws@hotmail.com
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