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Fixing the economy for our 50-year independence
Published: Sunday | August 7, 2011 0 Comments
Prime Minister Sir Alexander Bustamante stands on the saluting dais at South Parade Monday morning as he takes the salute at the military parade to mark Independence Day in 1962. Brigadier Paul Crook, chief of staff of the Jamaica Defence Force stands on Sir Alexander's right, and on his left is the commissioner of police, Noel Crosswell. - File
Ralph S. Thomas, Guest Columnist
THE FIGHTER-BOMBER waggled its mighty wings as it circled the town, and then suddenly dived into a shallow bombing run. Bright light of the midday sun gleamed on its polished metal skin. The deafening roar of its straining Rolls Royce engines filled the ears of awe-struck children and adults on the ground alike.
As if in a trance, they quickly rushed into the streets to see this awesome behemoth of deathly potential descend upon them. Its malevolent presence filled the sky like an eagle descending on prey as it scraped the treetops, rattling tin roofs and tearing leaves from mango trees.
Captivated by the thrill of the moment, I recklessly ran along the narrow unpaved street of my small mid-island town; the drumbeat of my pounding heart competing with the noise of the approaching monster. Unimpressed by the aircraft or the moment, the neighbour's dog, as usual, chased the fleet-footed boy and this time with a mighty lunge, took a huge bite out of my new khaki short pants, sharp teeth barely scraping flesh. None of this mattered, something bigger was happening and I made a mental note to deal with my nemesis the wicked dog later; that's what stones were made for back then. As I looked up in awe-struck wonder, I recall seeing the symbol of a bullseye with a red centre, which I now know to be the symbol of the Royal Air Force.
It was August 6, 1962, the day of Jamaica's independence and liberation from British colonial government. The bombing run of the aircraft was a goodbye and a final showing of military might by the departing power. That day was filled with pomp and ceremony all over Jamaica and wild joyful celebrations at what we had become, an island nation. I watched grown men including my father cry as the British anthem was sung for the last time; the symbol of colonial power the Union Jack flag lowered for the last time and the unfamiliar soul-stirring strains of a new national anthem played. Children gleefully sang and danced, waved flags, paraded, recited patriotic pledges and poems they had practised for weeks, ate cake and at the end of the day, like the adults we returned to our normal lives. Notwithstanding the enormous responsibility and consequences of self-government where much had changed, much remained the same for the people.
As we approach our 50th year of Independence, it is undeniable that as a people we have created a national identity of being Jamaican, being 'Little but Tallawah'; meaning that despite our small size we are capable of huge achievements belied by our physical size as a nation of less than three million persons. These accomplishments transcend time, as over the past 50 years we have cumulated achievements in all dimensions ranging from; culture, academic achievements, sports, science and other endeavours. Jamaicans of all walks of life have penetrated societies across the globe.
They fill every niche and crack in some societies, holding both menial and technical jobs and walk the corridors of power in nations all over the world; forming the sleeping giant inappropriately referred to as the Jamaican diaspora. Rather than being described as a scattered fragment, dispersed seeds cast by the wayside, we must regard these off-shore countrymen and their offspring as part of that greater nation that transcends physical and geographic boundaries; a nation with an inclusive population of some five million Jamaicans, powerful beyond belief if united in a common cause.
If computed, the total net worth of this inclusive Jamaican population would be astounding and the inventory of skills incredible. If this potential of a truly inclusive Jamaican nation state could be actualised, pride and connectivity to our nationhood achieved, and our combined potential unlocked through new relationships with our diaspora, we would not need to be prostituting ourselves to enclave investors as we are doing now. As a beginning, let the inclusive Jamaican population invest in Jamaica by offering them as a priority, the same deals and preferences being so liberally offered to non-Jamaican foreign investors.
Our model of Foreign Direct Investment (FDI), highly criticised by the World Bank study on Jamaica must be changed in order to create the level of growth in Gross Domestic Product (GDP) that we must achieve if we are to attain first-world status in our lifetimes.
We must own the resources of our country and partner on more equal terms with foreign investors in mutually beneficial relationships; guaranteeing the rights of investors, while reshaping the linkages to our economy and protecting local stakeholders. Our people must benefit more directly from the high levels of FDI that we have enjoyed. In many countries, including China, FDI in businesses must take the form of joint ventures with local partners. The intention is to gain from transfer of knowledge, skills and technology to the host country over some time horizon; so that the overall objectives of national economic growth can be achieved.
Our tourism industry must be reinvented and a way found to safely open the doors of the all-inclusive hotels, so that tourists can freely intermingle with our local population, spend in our corner shops, play dominoes and dance on our street corners and drive in our local taxi-cabs and share our culture. The streets of Montego Bay are empty of tourists, the all-inclusive hotels are not. Intermingling occurs in other countries, why not in Jamaica? The streets of the city of New York are filled with tourists despite the many risks and dangers that occur in large cities. In Nassau, Bahamas, tourists roam free. Achievement of such a goal would drive GDP growth, as the income multiplier effect of such spending would be greater than that presently obtaining under enclave tourism. Achievement of such goals over time should be linked to the continued availability of tax and other incentives to the industry. This can be reinforced by requirements for increased consumption of output from our agri-business sector, accompanied by improved quality and production in that area.
As we contemplate the next 50 years of nationhood, we must consider how to reconstruct our economy which is badly positioned for the future. We must question every assumption and economic model used to plan for our development, recognising the flaws demonstrated by the poor outcomes and the critical gaps in implementation capabilities of our institutions. This debate must occur in a manner that fully recognises the urgency of now, and the critical imperative that our economy must be put on the right track to achieve sustainable development. Deficits of implementation must be remedied and persons of high integrity and skill must be found to carry out the required tasks of nation-building, regardless of colour, class, creed or political affiliation. The circumstances of the times require no less. Let us put the best minds and technologies to work on our problems.
Poorly negotiated agreement
Our massive debt burden which has accelerated recently continues to impede growth. The poorly negotiated International Monetary Fund agreement ties our hands behind our backs, limiting our capacity to stimulate and reposition our economy. As a national goal, we must continue to honour our national debt obligations; but also be realistic about the implications for future economic growth and outcomes for our people. We must consider current trends in debt-restructuring evident in the debt crises of Greece and Ireland among other countries and devise the best ways to moderate the effects of the debt burden through effective debt renegotiation and rescheduling. There are consequences which must be considered and weighed in the balance as we seek to formulate new national strategies on economic management and economic development.
At our first Independence celebrations the British gave us theatre, such as the overflying aircraft which visited most townships in Jamaica. They gave us a governor general and all the pomp and grandeur that accompanied a decadent past; institutions which exist to this day; a sad reflection on the state of our Independence. On the horizon, we see a new bombing run on the people of Jamaica, as millions will be wasted in over-celebrating an empty promise of Independence, as a prelude to an election.
Let us have joyful celebrations and spend less; but better yet, we should spend time and money in considering how we got into this mess, and how best to get out of it. Save the parades and pageantry for real achievements. Let us make the year one of serious debate, strategising and planning on how to get the economy restarted and restructured in a sustainable way and our country placed on a correct path that guides us to developed-country status in the shortest possible time.
As we begin our 50th year, let us look forward with hope and seek to mobilise this nation to achieve its full potential. It is not just the responsibility of politicians, but a commitment to be made by all businesspersons and citizens of an inclusive Jamaica of five million persons.
Ralph S. Thomas is a senior teaching fellow and joint appointee of the Mona School of Business and the Department of Management Studies, UWI. He is a financial consultant and was a vice-president of the Bank of New York-Mellon. Email feedback to columns@gleanerjm.com and ralphthomas003@yahoo.com
CAPTION: Prime Minister Sir Alexander Bustamante stands on the saluting dais at South Parade Monday morning as he takes the salute at the military parade to mark Independence Day in 1962. Brigadier Paul Crook, chief of staff of the Jamaica Defence Force stands on Sir Alexander's right, and on his left is the commissioner of police, Noel Crosswell. - File
Published: Sunday | August 7, 2011 0 Comments
Prime Minister Sir Alexander Bustamante stands on the saluting dais at South Parade Monday morning as he takes the salute at the military parade to mark Independence Day in 1962. Brigadier Paul Crook, chief of staff of the Jamaica Defence Force stands on Sir Alexander's right, and on his left is the commissioner of police, Noel Crosswell. - File
Ralph S. Thomas, Guest Columnist
THE FIGHTER-BOMBER waggled its mighty wings as it circled the town, and then suddenly dived into a shallow bombing run. Bright light of the midday sun gleamed on its polished metal skin. The deafening roar of its straining Rolls Royce engines filled the ears of awe-struck children and adults on the ground alike.
As if in a trance, they quickly rushed into the streets to see this awesome behemoth of deathly potential descend upon them. Its malevolent presence filled the sky like an eagle descending on prey as it scraped the treetops, rattling tin roofs and tearing leaves from mango trees.
Captivated by the thrill of the moment, I recklessly ran along the narrow unpaved street of my small mid-island town; the drumbeat of my pounding heart competing with the noise of the approaching monster. Unimpressed by the aircraft or the moment, the neighbour's dog, as usual, chased the fleet-footed boy and this time with a mighty lunge, took a huge bite out of my new khaki short pants, sharp teeth barely scraping flesh. None of this mattered, something bigger was happening and I made a mental note to deal with my nemesis the wicked dog later; that's what stones were made for back then. As I looked up in awe-struck wonder, I recall seeing the symbol of a bullseye with a red centre, which I now know to be the symbol of the Royal Air Force.
It was August 6, 1962, the day of Jamaica's independence and liberation from British colonial government. The bombing run of the aircraft was a goodbye and a final showing of military might by the departing power. That day was filled with pomp and ceremony all over Jamaica and wild joyful celebrations at what we had become, an island nation. I watched grown men including my father cry as the British anthem was sung for the last time; the symbol of colonial power the Union Jack flag lowered for the last time and the unfamiliar soul-stirring strains of a new national anthem played. Children gleefully sang and danced, waved flags, paraded, recited patriotic pledges and poems they had practised for weeks, ate cake and at the end of the day, like the adults we returned to our normal lives. Notwithstanding the enormous responsibility and consequences of self-government where much had changed, much remained the same for the people.
As we approach our 50th year of Independence, it is undeniable that as a people we have created a national identity of being Jamaican, being 'Little but Tallawah'; meaning that despite our small size we are capable of huge achievements belied by our physical size as a nation of less than three million persons. These accomplishments transcend time, as over the past 50 years we have cumulated achievements in all dimensions ranging from; culture, academic achievements, sports, science and other endeavours. Jamaicans of all walks of life have penetrated societies across the globe.
They fill every niche and crack in some societies, holding both menial and technical jobs and walk the corridors of power in nations all over the world; forming the sleeping giant inappropriately referred to as the Jamaican diaspora. Rather than being described as a scattered fragment, dispersed seeds cast by the wayside, we must regard these off-shore countrymen and their offspring as part of that greater nation that transcends physical and geographic boundaries; a nation with an inclusive population of some five million Jamaicans, powerful beyond belief if united in a common cause.
If computed, the total net worth of this inclusive Jamaican population would be astounding and the inventory of skills incredible. If this potential of a truly inclusive Jamaican nation state could be actualised, pride and connectivity to our nationhood achieved, and our combined potential unlocked through new relationships with our diaspora, we would not need to be prostituting ourselves to enclave investors as we are doing now. As a beginning, let the inclusive Jamaican population invest in Jamaica by offering them as a priority, the same deals and preferences being so liberally offered to non-Jamaican foreign investors.
Our model of Foreign Direct Investment (FDI), highly criticised by the World Bank study on Jamaica must be changed in order to create the level of growth in Gross Domestic Product (GDP) that we must achieve if we are to attain first-world status in our lifetimes.
We must own the resources of our country and partner on more equal terms with foreign investors in mutually beneficial relationships; guaranteeing the rights of investors, while reshaping the linkages to our economy and protecting local stakeholders. Our people must benefit more directly from the high levels of FDI that we have enjoyed. In many countries, including China, FDI in businesses must take the form of joint ventures with local partners. The intention is to gain from transfer of knowledge, skills and technology to the host country over some time horizon; so that the overall objectives of national economic growth can be achieved.
Our tourism industry must be reinvented and a way found to safely open the doors of the all-inclusive hotels, so that tourists can freely intermingle with our local population, spend in our corner shops, play dominoes and dance on our street corners and drive in our local taxi-cabs and share our culture. The streets of Montego Bay are empty of tourists, the all-inclusive hotels are not. Intermingling occurs in other countries, why not in Jamaica? The streets of the city of New York are filled with tourists despite the many risks and dangers that occur in large cities. In Nassau, Bahamas, tourists roam free. Achievement of such a goal would drive GDP growth, as the income multiplier effect of such spending would be greater than that presently obtaining under enclave tourism. Achievement of such goals over time should be linked to the continued availability of tax and other incentives to the industry. This can be reinforced by requirements for increased consumption of output from our agri-business sector, accompanied by improved quality and production in that area.
As we contemplate the next 50 years of nationhood, we must consider how to reconstruct our economy which is badly positioned for the future. We must question every assumption and economic model used to plan for our development, recognising the flaws demonstrated by the poor outcomes and the critical gaps in implementation capabilities of our institutions. This debate must occur in a manner that fully recognises the urgency of now, and the critical imperative that our economy must be put on the right track to achieve sustainable development. Deficits of implementation must be remedied and persons of high integrity and skill must be found to carry out the required tasks of nation-building, regardless of colour, class, creed or political affiliation. The circumstances of the times require no less. Let us put the best minds and technologies to work on our problems.
Poorly negotiated agreement
Our massive debt burden which has accelerated recently continues to impede growth. The poorly negotiated International Monetary Fund agreement ties our hands behind our backs, limiting our capacity to stimulate and reposition our economy. As a national goal, we must continue to honour our national debt obligations; but also be realistic about the implications for future economic growth and outcomes for our people. We must consider current trends in debt-restructuring evident in the debt crises of Greece and Ireland among other countries and devise the best ways to moderate the effects of the debt burden through effective debt renegotiation and rescheduling. There are consequences which must be considered and weighed in the balance as we seek to formulate new national strategies on economic management and economic development.
At our first Independence celebrations the British gave us theatre, such as the overflying aircraft which visited most townships in Jamaica. They gave us a governor general and all the pomp and grandeur that accompanied a decadent past; institutions which exist to this day; a sad reflection on the state of our Independence. On the horizon, we see a new bombing run on the people of Jamaica, as millions will be wasted in over-celebrating an empty promise of Independence, as a prelude to an election.
Let us have joyful celebrations and spend less; but better yet, we should spend time and money in considering how we got into this mess, and how best to get out of it. Save the parades and pageantry for real achievements. Let us make the year one of serious debate, strategising and planning on how to get the economy restarted and restructured in a sustainable way and our country placed on a correct path that guides us to developed-country status in the shortest possible time.
As we begin our 50th year, let us look forward with hope and seek to mobilise this nation to achieve its full potential. It is not just the responsibility of politicians, but a commitment to be made by all businesspersons and citizens of an inclusive Jamaica of five million persons.
Ralph S. Thomas is a senior teaching fellow and joint appointee of the Mona School of Business and the Department of Management Studies, UWI. He is a financial consultant and was a vice-president of the Bank of New York-Mellon. Email feedback to columns@gleanerjm.com and ralphthomas003@yahoo.com
CAPTION: Prime Minister Sir Alexander Bustamante stands on the saluting dais at South Parade Monday morning as he takes the salute at the military parade to mark Independence Day in 1962. Brigadier Paul Crook, chief of staff of the Jamaica Defence Force stands on Sir Alexander's right, and on his left is the commissioner of police, Noel Crosswell. - File
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