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EDITORIAL - Jamaica's Bad Report Card
Published: Monday | September 12, 2011
The latest Global Competitiveness report, published last week by the World Economic Forum, must make depressing reading for Dr Christopher Tufton, recently installed as the minister for investment during Prime Minister Golding's reshuffle of his Cabinet.
Rather, it is the section on Jamaica that is likely to dishearten Dr Tufton, who is keen to entice foreign capital to the island to help kick-start the long-stuttering economy.
But as we have been doing in recent years, Jamaica has tumbled on the competitiveness index, now at 107, against 95 the previous year and 91 in 2009-2010. For those who will point out that the latest report ranks 142 countries against 139 in the previous year, it is also worthy noting that where this represents an addition of three countries, Jamaica slumped 12 places on the index.
Nor is it useful to attempt to dismiss or ignore these reports. For the fact is they are widely used by individuals and firms which invest in foreign countries. The higher one is on the competitiveness index, the more attractive you are likely to be to the prospective investor.
Wading through the data
But these reports are important not only for the overall ranking they assign to countries. They also provide plenty of background data on actual performance of sectors, as well as perceptions about matters of governance, which investors are likely to find useful when determining where to put their money.
In that regard, it can be of no pleasure to anyone in the Government that Jamaica is at the bottom of the pile, at 142, of the countries ranked, for the state of its macroeconomic environment. The Government may argue that it has little control - given the weak global economy - over many of the poor macroeconomic variables highlighted in the report. In any event, it will claim some of these are on the improve since the data were gathered for the survey.
More problematic, however, is people's perception of the quality of governance in Jamaica and the state of its institutions, as captured in the document.
While, for instance, Jamaica does relatively well in perception of the independence of the judiciary - it is ranked 48 -- the report reiterates the low levels of trust for politicians, for which the country is ranked 112.
Additionally, we are ranked 123 with regard to the burden imposed by government regulations, and 121 in relation to views that favouritism arises when government officials make decisions.
Slash bureaucracy
Dr Tufton has not yet publicly addressed this report. But one of his early assignments in his new ministry was to preside at the launch in Jamaica of the UN's annual report on foreign direct investment (FDI), which showed inflows in Jamaica last year slipped by more than 60 per cent to around US$200 million.
The aggressive programme Dr Tufton has outlined to improve FDI and create jobs would not have been helped by this survey. Nor does he have control over all the variables necessary to improve Jamaica's competitiveness standing.
However, he can, if he wishes, put life, real energy and less talk in that oft-rolled-out project to cut red tape. Success there would bring real value.
Published: Monday | September 12, 2011
The latest Global Competitiveness report, published last week by the World Economic Forum, must make depressing reading for Dr Christopher Tufton, recently installed as the minister for investment during Prime Minister Golding's reshuffle of his Cabinet.
Rather, it is the section on Jamaica that is likely to dishearten Dr Tufton, who is keen to entice foreign capital to the island to help kick-start the long-stuttering economy.
But as we have been doing in recent years, Jamaica has tumbled on the competitiveness index, now at 107, against 95 the previous year and 91 in 2009-2010. For those who will point out that the latest report ranks 142 countries against 139 in the previous year, it is also worthy noting that where this represents an addition of three countries, Jamaica slumped 12 places on the index.
Nor is it useful to attempt to dismiss or ignore these reports. For the fact is they are widely used by individuals and firms which invest in foreign countries. The higher one is on the competitiveness index, the more attractive you are likely to be to the prospective investor.
Wading through the data
But these reports are important not only for the overall ranking they assign to countries. They also provide plenty of background data on actual performance of sectors, as well as perceptions about matters of governance, which investors are likely to find useful when determining where to put their money.
In that regard, it can be of no pleasure to anyone in the Government that Jamaica is at the bottom of the pile, at 142, of the countries ranked, for the state of its macroeconomic environment. The Government may argue that it has little control - given the weak global economy - over many of the poor macroeconomic variables highlighted in the report. In any event, it will claim some of these are on the improve since the data were gathered for the survey.
More problematic, however, is people's perception of the quality of governance in Jamaica and the state of its institutions, as captured in the document.
While, for instance, Jamaica does relatively well in perception of the independence of the judiciary - it is ranked 48 -- the report reiterates the low levels of trust for politicians, for which the country is ranked 112.
Additionally, we are ranked 123 with regard to the burden imposed by government regulations, and 121 in relation to views that favouritism arises when government officials make decisions.
Slash bureaucracy
Dr Tufton has not yet publicly addressed this report. But one of his early assignments in his new ministry was to preside at the launch in Jamaica of the UN's annual report on foreign direct investment (FDI), which showed inflows in Jamaica last year slipped by more than 60 per cent to around US$200 million.
The aggressive programme Dr Tufton has outlined to improve FDI and create jobs would not have been helped by this survey. Nor does he have control over all the variables necessary to improve Jamaica's competitiveness standing.
However, he can, if he wishes, put life, real energy and less talk in that oft-rolled-out project to cut red tape. Success there would bring real value.
