Golding misses the boat

[Don1]

Dixon to head new PetroCaribe team
published: Thursday | July 31, 2008


Dr Jean Dixon
A technical team headed by Dr Jean Dixon is to assess and recommend areas in which PetroCaribe funds can be invested to spur national development.
Prime Minister Bruce Golding has earmarked energy and agriculture among the sectors to be reviewed for investment. Dixon's team is also to consider infrastructure projects that have a social impact.
"In relation to the agricultural projects, the team has been instructed to consider new [COLOR=orange! important][COLOR=orange! important]technologies[/COLOR][/COLOR] and to set up food processing facilities to ensure the speedy and efficient distribution of food production," said a release from the Office of the Prime Minister.
The team to do the review will be drafted from the ministries of Energy and Finance, Planning Institute of Jamaica and the Petroleum [COLOR=orange! important][COLOR=orange! important]Corporation[/COLOR][/COLOR] of Jamaica.
Its members will also assess the mode to be used for repayment of the PetroCaribe [COLOR=orange! important][COLOR=orange! important]loan[/COLOR][/COLOR].
Specially created vehicle
Under the arrangement with Venezuela, Jamaica can retain 60 per cent of its oil bill for 25 years, which it holds under a specially created vehicle, the PetroCaribe Development Fund, and repay at one to two per cent interest.
But the agreement allows for repayment other than cash to include commodities, such as bananas and sugar, as well as services.
Dixon's team will determine at repayment which is the better option.
In the meantime, the funds accrued can be used to finance development projects
Since its inception, the PetroCaribe Development Fund, which operates from the Ministry of Finance, has made distributions to Air Jamaica, the finance ministry for [COLOR=orange! important][COLOR=orange! important]debt[/COLOR][/COLOR] refinancing, the Ministry of Housing, Urban Development Corporation, Port Authority, Sugar Company of Jamaica, Airports Authority, Wallenford Coffee and Jamaica Urban Transit Company. The new technical team is to be constituted and its terms of reference signed off on by Golding within three weeks, the OPM said.



Without vision... our people will continue to perish.

Jamaica has a huge windfall of cheap money through Petro Caribe... and chooses to invest it primarily on physical capital as opposed to building social capital..... typical of our bankrupt, shortsighted policymakers and upended policies.

Our problems and chief roadblocks to development are based on poor social capital first and poor infrastructure a distant second... even the blind should be able to see that.

This money should primarily be used in a broadbased program to fund a revolution in our education and vocational training systems at all levels over the next 10 years (as well as improving squatter/slum communities) ... laying the groundwork for better social relations and a knowledge based service economy... which will itself generate the wealth to build the physical infrastructure we also do need.


This is another and particularly blatant (because this is readily available and dirt cheap money) disregard of putting people first in development.

We continue to have leaders from both sides of the divide, with priorities that are backward.... and so we cannot progress substantially.

What a shame.

[OJ]

good points don 1.. I often wonder what the cost benefits would be if we had invested the monies we spent oh the hyway project in decreasing the number of squatter slum communities.. Just a thought!

[Islandman]

I don't think it is as clear-cut as that, with one way right the other way wrong. Both approaches if done properly and creatively can work.

Invest in the infrastructure first, which provides opportunities to enterpeneurs to invest and hence for the economy to develop, which will payoff in increased revenue for the much-needed social programs.

OR

Invest in the social programs first, get the payoff in the better skilled workforce, and this will create more economic opportunities for both the workfers and the entrepeneurs that will employ them.

We in Jamaica have seen firsthand what a disaster can result when popular social programs are developed without any real plan as to how they will be funded and sustained. Similarly, overspending on non-revenue generating infrastructure like parks and stadiums which rarely get used and cost a lot to maintain is also a horrible plan.

[Mosiah]

Can we invest in both at the same time?

[Lazie]

The gov't is in a position if damn if dem do, damn if dem don't. With the current crisis being faced due to rising energy and food prices, there has been alot of talk about food security and addressing the energy situation.

How much money has been allocated for social intervention this year? If 10 people should be polled there is a chance that all 10 could recommend 10 different ways to spend the petrocaribe fund.

[Mosiah]

Isn't that how it's always been?

[Lazie]

Isn't that how it's always been?

Really? Do you recall during the campaign the only argument/question put forward by the then gov't was "how are they going to finance all these promises?"

The police is claiming they don't have enough resources. The principal and even the minister has admitted that the amount allocated for education is not enough, the amount allocated for the CDF is said to be a broken promise by Dr. Davis.

Would the food processing plants provide needed jobs? Or unuh not in dat?

[Don1]

The gov't is in a position if damn if dem do, damn if dem don't. With the current crisis being faced due to rising energy and food prices, there has been alot of talk about food security and addressing the energy situation.

How much money has been allocated for social intervention this year? If 10 people should be polled there is a chance that all 10 could recommend 10 different ways to spend the petrocaribe fund.

Democracy is about having the ability to express different opinions.

I expressed mine and gave my reasons.

Jamaica's priorities have always been misplaced by its leaders. This policy by Golding is just a continuation of that trend in my opinion.

Time to invest intelligently in people... not things. That's the only sure way to development.

[Lazie]

Democracy is about having the ability to express different opinions.

I expressed mine and gave my reasons.

Jamaica's priorities have always been misplaced by its leaders. This policy by Golding is just a continuation of that trend in my opinion.

Time to invest intelligently in people... not things. That's the only sure way to development.

Expressing your opinion is all well and good. What about those who have been knocking the gov't for not spending enough on the security forces. See Mark Shields a sey him wish the JCF had their own air wing. Talk to anyone in the health sector they will also tell you they don't have enough resources.

The gov't has to do something about the massive debt we currently have. What is wrong with using the cheap money on these projects instead of getting more expensive money to do the same thing? Don't it money has already been allocated for social intervention?

[Islandman]

We can and usually govts do, but it will never be enough. Hence there will always be complaints about priorities.

[Islandman]

But which people?

When teachers strike or threaten to strike, teachers and schools should be the highest priority. When police vex , police ad security are the highest priority. When doctor and nurse vex, health and hospital care is the highest priority. When somebody show how terriible people in the ghetto live, housing for the poor and is the highest priority.

Isn't it clear that the economy must be vibrant to have any chance of supporting all of this or it will only be a short-term fix? Look like them need one of the 10% a month clubs to invest that Petro Caribe money!

[Don1]

I don't think it is as clear-cut as that, with one way right the other way wrong. Both approaches if done properly and creatively can work.

Invest in the infrastructure first, which provides opportunities to enterpeneurs to invest and hence for the economy to develop, which will payoff in increased revenue for the much-needed social programs.

OR

Invest in the social programs first, get the payoff in the better skilled workforce, and this will create more economic opportunities for both the workfers and the entrepeneurs that will employ them.

We in Jamaica have seen firsthand what a disaster can result when popular social programs are developed without any real plan as to how they will be funded and sustained. Similarly, overspending on non-revenue generating infrastructure like parks and stadiums which rarely get used and cost a lot to maintain is also a horrible plan.

We have tried that first approach for many years... it's called trickle down economics. Our public sector is inefficient and our private sector is corrupt and selfish.... trickle down has been a failure (no.. a disaster!) and should be discarded or substantially modified.... Golding has a chance to make a change with this petro windfall and has passed on it apparently.

Note: I am not advocating a spending free for all on "popular" programs... but an education and vocational development led strategy along with physical upgrading of depressed communities... after consensus on the modalities is established.

Answer: build a social contract around common goals and strategies to build social capital... then invest intelligently in people.
Our poor social relations and poor education are our primary bottlenecks to economic progress.. not lack of infrastructure, factories, airlines, refineries, farms or other "things".... incentives to foreign and local capital can address provisioning of those "things" substantially.

That social capital development strategy within the context of a generalized societal agreement has never been tried and is apparently beyond all administrations... including the current one.

So let's continue with our crime plans and lack of real development ad infinitum... it's all related.

[Don1]

Expressing your opinion is all well and good. What about those who have been knocking the gov't for not spending enough on the security forces. See Mark Shields a sey him wish the JCF had their own air wing. Talk to anyone in the health sector they will also tell you they don't have enough resources.

The gov't has to do something about the massive debt we currently have. What is wrong with using the cheap money on these projects instead of getting more expensive money to do the same thing? Don't it money has already been allocated for social intervention?

All those people expressing their opinion on their priorities is normal and nothing to get exercised about.

It is up to the government to prioritize its spending.. and with respect to this windfall.. they have chosen infrastructure over people.
You seem to agree with this.. that's your right. I have a different opinion and I don't need any politician's or pundit's advice to shape it.

As to the money allocated for social intervention... that's like putting a band aid on a severed arm... just lip service to say that something is being done.

It all goes to one question.. what is Jamaica's biggest problem? Some say crime others say unemployment.
To me these are symptoms of the real problem... fractured social relations... between individuals, communities, political parties and social classes... the only real answer is massively upgraded education at all levels and investment in the poor to unleash their economic potential... the PAYOFF will be greater than any infrastructure investment.

This is why I believe in social contracts and not crime plans.

[Don1]

But which people?

When teachers strike or threaten to strike, teachers and schools should be the highest priority. When police vex , police ad security are the highest priority. When doctor and nurse vex, health and hospital care is the highest priority. When somebody show how terriible people in the ghetto live, housing for the poor and is the highest priority.

Isn't it clear that the economy must be vibrant to have any chance of supporting all of this or it will only be a short-term fix? Look like them need one of the 10% a month clubs to invest that Petro Caribe money!

You are talking here of fighting fires which is short term.. I am not! GOJ and every government will always have to fight fires.

I am speaking of a long term development strategy.. funded by this windfall... it's apples and oranges.

Jamaica will NEVER have a vibrant economy to fund these programs if we spend much of our time in contention and ignorance with large sections of the population alienated and depressed.

I'm not a fan of the trickle down theory for Jamaica.

[Don1]

Really? Do you recall during the campaign the only argument/question put forward by the then gov't was "how are they going to finance all these promises?"

The police is claiming they don't have enough resources. The principal and even the minister has admitted that the amount allocated for education is not enough, the amount allocated for the CDF is said to be a broken promise by Dr. Davis.

Would the food processing plants provide needed jobs? Or unuh not in dat?

this is not a political tit for tat discussion

this is a technical question on developmental STRATEGY and priorities.

bringing in party politics is distracting and unhelpful.