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Jamaica: Open for Business
Published: Wednesday | June 8, 2011
Din Duggan
I got a good laugh last week. After an exhausting morning travelling on the Knutsford Express bus service from Kingston to Montego Bay, I settled in at Sangster International Airport for a grossly overpriced meal consisting of a scrawny piece of jerk chicken, dry rice and peas, and a bottle of Red Stripe that must have been sprinkled with gold dust to justify its ridiculous price.
My inner miserable old man bemoaned the four-hour journey to this underwhelming lunch instead of the much tastier and more generous offering I would have got for a fraction of the cost at Scotchie's or JoJo's or Wally's Pan Chicken in Kingston. I then grouchily recalled the good old days of 20-minute Air Jamaica Express flights to Montego Bay and direct flights to Atlanta from Kingston. A sign abruptly interrupted my rant.
'Jamaica: Open for Business'.
are we for real?
I nearly choked on the dry rice and gold dust before I eventually stopped laughing and composed myself. Open for what kind of business? Were they serious? I needed to put my analytical mettle to the test to figure it out.
My analysis - like any legitimate business venture in Jamaica - begins at the Office of the Registrar of Titles. As any business person can attest, visiting the Companies Office of Jamaica - as it is officially known - has historically been a frustrating experience replete with delays, obstructions and unexpected setbacks - not unlike Asafa Powell's recent career. The last time I stopped by I quickly surveyed the place. The only smiling face was that of Commerce Minister Karl Samuda hanging on the wall. To be fair, though, this was in late 2007, not long after Mr Samuda assumed his post. Perhaps - as the ministry has proclaimed - things have truly improved and the Companies Office has grown more hospitable of late.
The most recent Doing Business Survey, published by the International Finance Corporation and World Bank, doesn't reflect any improvements in Jamaica's business environment. In fact, in 2010, Jamaica dropped two places to 81st in the survey, which measures the relative ease of doing business in 183 countries.
Jamaica earned high marks for opening and closing businesses. However, we ranked wretchedly low in the simplicity (or lack thereof) of real-estate transactions, straightforwardness of our tax system, and in contract enforcement - areas (the last two especially) vital to attracting and sustaining suitable investments.
greasing palms
Could it be that the international organisations are mistaken and conditions are indeed favourable on the ground? Not quite. While local entrepreneurs might agree that it's now easier to organise a business (on paper), many have recounted tales of facing tremendous hardships in securing the necessary permits to launch promising ventures. A common complaint is that those unwilling or unable to leverage 'links' or grease palms face an uphill effort.
Perhaps business conditions are less turbulent in the air. Not so, either. The Caribbean's first low-cost airline, REDjet, was denied permission to establish headquarters in Kingston. The company later set up shop in Barbados - subsequently announcing flights as low as US$10 between Kingston and Port-of-Spain. Jamaican and Trinidadian authorities grounded that plan, though - ostensibly to protect the government-affiliated Caribbean Airlines, perhaps the most woefully inefficient airline on earth.
It isn't smooth sailing at sea, either. Jamaica's territorial waters contain substantial populations of conch and lobster. But only a handful of entities hold the valuable licences to lawfully extract these resources. This small collective that constitutes our official lobster industry generates roughly US$8 million per year in revenue. This pales in comparison to the estimated US$25 million of lobster being illegally poached from our waters annually at the hands of rogue fishers from as far afield as Japan. Perhaps the sign 'Jamaica: Open for Business' is intended for them.
Or maybe it is intended for the Trinidadians who seem to have free rein in snapping up our assets on the cheap. Or the China-based company contracted to do the bulk of the work associated with the Chinese 'development' loan that has been so graciously extended to us.
But I think I've found a more logical explanation. Of course, the advertisement was shortened. It should have no doubt read: 'Jamaica: Open for Business ... if you're well connected, well heeled, or simply hoping to enrich yourself - legally or otherwise - at the expense of ordinary Jamaicans.
'
Din Duggan is an attorney working as a consultant with a global legal search firm. Email him at columns@gleanerjm.com or dinduggan@gmail.com, or follow him or view his past columns at facebook.com/dinduggan and twitter.com/YoungDuggan.
Published: Wednesday | June 8, 2011
Din Duggan
I got a good laugh last week. After an exhausting morning travelling on the Knutsford Express bus service from Kingston to Montego Bay, I settled in at Sangster International Airport for a grossly overpriced meal consisting of a scrawny piece of jerk chicken, dry rice and peas, and a bottle of Red Stripe that must have been sprinkled with gold dust to justify its ridiculous price.
My inner miserable old man bemoaned the four-hour journey to this underwhelming lunch instead of the much tastier and more generous offering I would have got for a fraction of the cost at Scotchie's or JoJo's or Wally's Pan Chicken in Kingston. I then grouchily recalled the good old days of 20-minute Air Jamaica Express flights to Montego Bay and direct flights to Atlanta from Kingston. A sign abruptly interrupted my rant.
'Jamaica: Open for Business'.
are we for real?
I nearly choked on the dry rice and gold dust before I eventually stopped laughing and composed myself. Open for what kind of business? Were they serious? I needed to put my analytical mettle to the test to figure it out.
My analysis - like any legitimate business venture in Jamaica - begins at the Office of the Registrar of Titles. As any business person can attest, visiting the Companies Office of Jamaica - as it is officially known - has historically been a frustrating experience replete with delays, obstructions and unexpected setbacks - not unlike Asafa Powell's recent career. The last time I stopped by I quickly surveyed the place. The only smiling face was that of Commerce Minister Karl Samuda hanging on the wall. To be fair, though, this was in late 2007, not long after Mr Samuda assumed his post. Perhaps - as the ministry has proclaimed - things have truly improved and the Companies Office has grown more hospitable of late.
The most recent Doing Business Survey, published by the International Finance Corporation and World Bank, doesn't reflect any improvements in Jamaica's business environment. In fact, in 2010, Jamaica dropped two places to 81st in the survey, which measures the relative ease of doing business in 183 countries.
Jamaica earned high marks for opening and closing businesses. However, we ranked wretchedly low in the simplicity (or lack thereof) of real-estate transactions, straightforwardness of our tax system, and in contract enforcement - areas (the last two especially) vital to attracting and sustaining suitable investments.
greasing palms
Could it be that the international organisations are mistaken and conditions are indeed favourable on the ground? Not quite. While local entrepreneurs might agree that it's now easier to organise a business (on paper), many have recounted tales of facing tremendous hardships in securing the necessary permits to launch promising ventures. A common complaint is that those unwilling or unable to leverage 'links' or grease palms face an uphill effort.
Perhaps business conditions are less turbulent in the air. Not so, either. The Caribbean's first low-cost airline, REDjet, was denied permission to establish headquarters in Kingston. The company later set up shop in Barbados - subsequently announcing flights as low as US$10 between Kingston and Port-of-Spain. Jamaican and Trinidadian authorities grounded that plan, though - ostensibly to protect the government-affiliated Caribbean Airlines, perhaps the most woefully inefficient airline on earth.
It isn't smooth sailing at sea, either. Jamaica's territorial waters contain substantial populations of conch and lobster. But only a handful of entities hold the valuable licences to lawfully extract these resources. This small collective that constitutes our official lobster industry generates roughly US$8 million per year in revenue. This pales in comparison to the estimated US$25 million of lobster being illegally poached from our waters annually at the hands of rogue fishers from as far afield as Japan. Perhaps the sign 'Jamaica: Open for Business' is intended for them.
Or maybe it is intended for the Trinidadians who seem to have free rein in snapping up our assets on the cheap. Or the China-based company contracted to do the bulk of the work associated with the Chinese 'development' loan that has been so graciously extended to us.
But I think I've found a more logical explanation. Of course, the advertisement was shortened. It should have no doubt read: 'Jamaica: Open for Business ... if you're well connected, well heeled, or simply hoping to enrich yourself - legally or otherwise - at the expense of ordinary Jamaicans.
'
Din Duggan is an attorney working as a consultant with a global legal search firm. Email him at columns@gleanerjm.com or dinduggan@gmail.com, or follow him or view his past columns at facebook.com/dinduggan and twitter.com/YoungDuggan.
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