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From private sector to public sector: a reflection
Published: Sunday | August 30, 2009
Don Wehby, Contributor
Prime Minister Bruce Golding (left) hosted a farewell luncheon in July for Senator Don Wehby, who ended a two-year secondment at the Ministry of Finance and the Public Service to return to his previous employer, GraceKennedy Limited. - File
When I first received the call from Prime Minister Bruce Golding inviting me to join his Cabinet, many of my colleagues, from both the private and public sectors, told me I was crazy for considering it. They said I was taking a huge risk by leaving my position at GraceKennedy and entering the public service. But I felt that if I could make a positive contribution, regardless of how small, then I should do so. Though Jamaica's problems are not new, we have missed many opportunities to make the fundamental changes that have been necessary. Instead of sitting on the veranda and complaining about our circumstances, more of us need to go out and do something about it. We must think of it as a service we are doing for our children.
I would like to thank the honourable prime minister, the members of the Cabinet, all the senators and members of the Government's team for giving me the opportunity to serve my country. The opposition leader and other members of the Opposition also offered kind words of encouragement. I found PM Golding to be an excellent leader and a brilliant man. He is a very hard worker who has a passion to see a better Jamaica. Sometimes, I would feel down and stressed, as the more you work, it seems the worse things get ... from one crisis to another ... every day.
Nevertheless, I enjoyed my time in Government and have developed a new respect for those who give public service. A simple thank you from the man in the street meant so much to me. I have no regrets.
Upon my appointment as minister without portfolio in the Ministry of Finance and the Public Service, I knew that Jamaica's large public-debt problem was going to be the greatest challenge. I also knew that the problem was going to take some time to solve and some very tough decisions. In less than a month, I found out that the situation was much worse than I had imagined. Our total public debt was just under a trillion dollars, and the economy was growing on average one per cent per year for the last decade. Over 50 cents of every dollar goes to service debt, leaving very little for the social sector. In addition, contributing to our mounting debt problem was the poor management of many of our public bodies and public companies, resulting in huge losses over the years that taxpayers will ultimately have to pay for. I will save my comments on Air Jamaica et al for another time.
As we go forward, securing the economic future of our country is going to be contingent on improving those figures. Most important is the need for reducing fiscal deficits over the medium term towards a balanced budget. In the private sector, if you spend more than you earn, you are guaranteed bankruptcy. The Government has been doing this for as long as I can remember, and the more you do that, the more you borrow.
Institutional capacity
Before arriving in Government, I was under the impression that most of Jamaica's implementation challenges were due to a lack of innovation and political will, but I have since learnt otherwise. In this short span of time, I have worked alongside some of the most dedicated and brilliant minds from both the public and private sectors. I am proud to say that there is no shortage of innovative ideas for Jamaica's many challenges, but my colleagues and I have found that institutional capacity and management of information in the public sector is lacking in a very serious way. A task that would take four days in the private sector could take months in Government.
The Ministry of Finance and the Public Service is technologically very behind. Our technical persons are operating without the proper tools and training to perform top-quality economic modelling, and the Accountant General's Department, the biggest handler of central government accounts, operates largely on a manual system. We must implement a new integrated management information system. We cannot run an effective Government on pieces of information. I know Cabinet discussed the issue, and I am hoping priority is placed on it. We must also have proper succession planning in place by having a formal training programme of the best and brightest from our universities entering the civil service in a management programme. It is, therefore, critical to strengthen the public-sector personnel and the systems in place to achieve our full productive efficiency.
There are many excellent reform programmes under way within the Ministry of Finance and other ministries that will help to address social and economic problems, but my biggest concern is our institutional capacity to implement these reforms in a manner that is timely. This points to the need for additional human and technical resources
, some of which could be seconded from the private sector or the diaspora to be assigned to walk critical, high-priority projects through to completion.
Public Service
The Jamaican situation is very complex and requires tough decisions that will be politically risky and unpopular. It calls for consensus across party lines; social partnership between the Government and all other sectors of society; and, shared sacrifices. I should also mention the apparent mistrust between the various stakeholders. This is one of the biggest hurdles we will have to overcome. I have been to several meetings with the PM trying to address this problem.
Our efforts must be even more robust now as the challenges are greater, exacerbated by a series of crises over the last two years - the food crisis, the oil crisis, then the financial crisis, culminating in a full global slowdown. Though there are signs of recovery in some of the major economies, including our biggest trading partner, the United States, we cannot let the opportunity pass to implement the fundamental changes that the Jamaican economy needs. As many leaders have been saying at this time, "you should never waste a good crisis".
Final Review
As I have stated on previous occasions (I learnt in Government that you have to say the same thing many times to get people's attention), the Government has a responsibility to ensure certain things to guarantee a stable economic climate, namely:
i. A sound predictable macroeconomic policy framework;
ii. Disciplined and strong fiscal management of the economy;
iii. A tax system that is simple and competitive;
iv. A modernised labour market geared towards high levels of productivity;
v. A simplified business-friendly bureaucracy;
vi. Effective measures to prevent corruption and fight crime;
vii. Supportive infrastructure.
The only way to achieve these conditions is for the Government to undertake comprehensive reform, particularly:
i. Controlling public-sector balances and debt;
ii. Rationalising public bodies;
iii. Improving central government financial management and budget processes;
iv. Increasing revenue collection;
v. Increasing growth and competitiveness; and as I mentioned before
vi. Managing the public-sector wage bill.
Having said this, we must renew the entreneural spirit and grow the economy. If we get the above right, I can assure Jamaica, local and foreign investments will be flowing.
These reforms have been agreed on and supported by our multilateral development partners. We must ensure that all the resources are put in place to meet these reforms on a timely and accurate basis ... very, very important.
Over the last two years, there are several other important developments that I was able to be part of, including the establishment of the Junior Stock Exchange; the Social Partnership; the restructuring of and final divestment recommendation for Air Jamaica; and some aspects of tax reform, including the finalisation of the Blueprint for Taxation Reform by the National Planning Summit, the International Financial Centre and the casino integrated resorts development. Another important milestone is the resumption of Jamaica's relationships with our multilateral development partners and our proposed return to the International Monetary Fund (which I will comment on at a later date).
These things, however, are just the tip of the iceberg. I cannot reiterate enough how urgently we must make the fundamental changes referred to above. Maintaining the status quo is not an option. Jamaica has been in a crisis for many years, and we will have to work together more closely than we have ever worked before in order to ensure a return to stability and an outlook of growth and development for the future.
Finally, big up Bolt and the Jamaican athletes. We can be the best, but we must work hard and believe in ourselves.
God bless our beloved country!
Don Wehby, a senior executive at the GraceKennedy Group, was until recently, minister without portfolio in the Ministry of Finance and the Public Service.
Published: Sunday | August 30, 2009
Don Wehby, Contributor
Prime Minister Bruce Golding (left) hosted a farewell luncheon in July for Senator Don Wehby, who ended a two-year secondment at the Ministry of Finance and the Public Service to return to his previous employer, GraceKennedy Limited. - File
When I first received the call from Prime Minister Bruce Golding inviting me to join his Cabinet, many of my colleagues, from both the private and public sectors, told me I was crazy for considering it. They said I was taking a huge risk by leaving my position at GraceKennedy and entering the public service. But I felt that if I could make a positive contribution, regardless of how small, then I should do so. Though Jamaica's problems are not new, we have missed many opportunities to make the fundamental changes that have been necessary. Instead of sitting on the veranda and complaining about our circumstances, more of us need to go out and do something about it. We must think of it as a service we are doing for our children.
I would like to thank the honourable prime minister, the members of the Cabinet, all the senators and members of the Government's team for giving me the opportunity to serve my country. The opposition leader and other members of the Opposition also offered kind words of encouragement. I found PM Golding to be an excellent leader and a brilliant man. He is a very hard worker who has a passion to see a better Jamaica. Sometimes, I would feel down and stressed, as the more you work, it seems the worse things get ... from one crisis to another ... every day.
Nevertheless, I enjoyed my time in Government and have developed a new respect for those who give public service. A simple thank you from the man in the street meant so much to me. I have no regrets.
Upon my appointment as minister without portfolio in the Ministry of Finance and the Public Service, I knew that Jamaica's large public-debt problem was going to be the greatest challenge. I also knew that the problem was going to take some time to solve and some very tough decisions. In less than a month, I found out that the situation was much worse than I had imagined. Our total public debt was just under a trillion dollars, and the economy was growing on average one per cent per year for the last decade. Over 50 cents of every dollar goes to service debt, leaving very little for the social sector. In addition, contributing to our mounting debt problem was the poor management of many of our public bodies and public companies, resulting in huge losses over the years that taxpayers will ultimately have to pay for. I will save my comments on Air Jamaica et al for another time.
As we go forward, securing the economic future of our country is going to be contingent on improving those figures. Most important is the need for reducing fiscal deficits over the medium term towards a balanced budget. In the private sector, if you spend more than you earn, you are guaranteed bankruptcy. The Government has been doing this for as long as I can remember, and the more you do that, the more you borrow.
Institutional capacity
Before arriving in Government, I was under the impression that most of Jamaica's implementation challenges were due to a lack of innovation and political will, but I have since learnt otherwise. In this short span of time, I have worked alongside some of the most dedicated and brilliant minds from both the public and private sectors. I am proud to say that there is no shortage of innovative ideas for Jamaica's many challenges, but my colleagues and I have found that institutional capacity and management of information in the public sector is lacking in a very serious way. A task that would take four days in the private sector could take months in Government.
The Ministry of Finance and the Public Service is technologically very behind. Our technical persons are operating without the proper tools and training to perform top-quality economic modelling, and the Accountant General's Department, the biggest handler of central government accounts, operates largely on a manual system. We must implement a new integrated management information system. We cannot run an effective Government on pieces of information. I know Cabinet discussed the issue, and I am hoping priority is placed on it. We must also have proper succession planning in place by having a formal training programme of the best and brightest from our universities entering the civil service in a management programme. It is, therefore, critical to strengthen the public-sector personnel and the systems in place to achieve our full productive efficiency.
There are many excellent reform programmes under way within the Ministry of Finance and other ministries that will help to address social and economic problems, but my biggest concern is our institutional capacity to implement these reforms in a manner that is timely. This points to the need for additional human and technical resources
, some of which could be seconded from the private sector or the diaspora to be assigned to walk critical, high-priority projects through to completion.
Public Service
The Jamaican situation is very complex and requires tough decisions that will be politically risky and unpopular. It calls for consensus across party lines; social partnership between the Government and all other sectors of society; and, shared sacrifices. I should also mention the apparent mistrust between the various stakeholders. This is one of the biggest hurdles we will have to overcome. I have been to several meetings with the PM trying to address this problem.
Our efforts must be even more robust now as the challenges are greater, exacerbated by a series of crises over the last two years - the food crisis, the oil crisis, then the financial crisis, culminating in a full global slowdown. Though there are signs of recovery in some of the major economies, including our biggest trading partner, the United States, we cannot let the opportunity pass to implement the fundamental changes that the Jamaican economy needs. As many leaders have been saying at this time, "you should never waste a good crisis".
Final Review
As I have stated on previous occasions (I learnt in Government that you have to say the same thing many times to get people's attention), the Government has a responsibility to ensure certain things to guarantee a stable economic climate, namely:
i. A sound predictable macroeconomic policy framework;
ii. Disciplined and strong fiscal management of the economy;
iii. A tax system that is simple and competitive;
iv. A modernised labour market geared towards high levels of productivity;
v. A simplified business-friendly bureaucracy;
vi. Effective measures to prevent corruption and fight crime;
vii. Supportive infrastructure.
The only way to achieve these conditions is for the Government to undertake comprehensive reform, particularly:
i. Controlling public-sector balances and debt;
ii. Rationalising public bodies;
iii. Improving central government financial management and budget processes;
iv. Increasing revenue collection;
v. Increasing growth and competitiveness; and as I mentioned before
vi. Managing the public-sector wage bill.
Having said this, we must renew the entreneural spirit and grow the economy. If we get the above right, I can assure Jamaica, local and foreign investments will be flowing.
These reforms have been agreed on and supported by our multilateral development partners. We must ensure that all the resources are put in place to meet these reforms on a timely and accurate basis ... very, very important.
Over the last two years, there are several other important developments that I was able to be part of, including the establishment of the Junior Stock Exchange; the Social Partnership; the restructuring of and final divestment recommendation for Air Jamaica; and some aspects of tax reform, including the finalisation of the Blueprint for Taxation Reform by the National Planning Summit, the International Financial Centre and the casino integrated resorts development. Another important milestone is the resumption of Jamaica's relationships with our multilateral development partners and our proposed return to the International Monetary Fund (which I will comment on at a later date).
These things, however, are just the tip of the iceberg. I cannot reiterate enough how urgently we must make the fundamental changes referred to above. Maintaining the status quo is not an option. Jamaica has been in a crisis for many years, and we will have to work together more closely than we have ever worked before in order to ensure a return to stability and an outlook of growth and development for the future.
Finally, big up Bolt and the Jamaican athletes. We can be the best, but we must work hard and believe in ourselves.
God bless our beloved country!
Don Wehby, a senior executive at the GraceKennedy Group, was until recently, minister without portfolio in the Ministry of Finance and the Public Service.
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