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Editorial
A word to Dr Phillips: Credibility has a short shelf life
Sunday, January 29, 2012
Credibility is a highly perishable asset. Indeed, a good reputation earned over many years can disappear in a second, especially given the general feeling of scepticism about the integrity of political leaders.
Traditionally, governments enjoy their best moments of credibility during their early days in office. Thereafter, that credibility declines and its speed is determined more by the governments' deeds than their words.
Of course, credibility can decline because of real or imagined reasons, as perception is shaped by facts, insufficient information and misinformation prompted by rumour or deliberately spread propaganda.
Public opinion is therefore shaped by the amount and accuracy of the information provided by the government, how this information is conveyed to the public, and how much of this information is imbibed and understood by the public.
When a government takes office it is given the benefit of the doubt about statements on goals to be achieved and policy measures to accomplish those goals. When it comes to economic policy, the standards are more rigorous because statements can be evaluated based on economic data. Above all, statements are assessed by whether they match actual economic outcomes.
Former Prime Minister Bruce Golding and former Finance Minister Audley Shaw changed the course of Jamaica's economic policy both in word and deed by successfully tackling difficult tasks, like divesting Air Jamaica and lowering interest rates.
Those measures gave them credibility locally and with the international financial institutions such as the International Monetary Fund (IMF).
It was this credibility that facilitated the Jamaica Debt Exchange and the enormous borrowing from the Inter-American Development Bank.
Unfortunately, that credibility and good reputation as a Government pursuing sound economic policy in the very difficult circumstances of a global financial crisis and a fiscal policy with the "ball and chain" of a huge national debt suffered some damage by the time of the general election in December 2011.
Obviously, the Administration had to take the rap for its failure to meet fiscal targets, both for expenditure and tax collection. However, the technical team at the Ministry of Finance cannot escape taking some of the blame.
With the change of Government, the credibility of Jamaica's economic policy rests on the solid reputation and quality of mind of Dr Peter Phillips — the new finance minister — and the competence of the Bank of Jamaica and the Planning Institute of Jamaica. But a minister is only as good as the technical team that advises and supports him.
Dr Phillips has inherited the same team that Mr Shaw depended on to his detriment. Same horse, same distance, same weight but different jockey. Maybe it is just a matter of chemistry or that the whip will be used. Let us hope the results are better this time around.
Read more: http://www.jamaicaobserver.com/edito...#ixzz1krVEpz4K
A word to Dr Phillips: Credibility has a short shelf life
Sunday, January 29, 2012
Credibility is a highly perishable asset. Indeed, a good reputation earned over many years can disappear in a second, especially given the general feeling of scepticism about the integrity of political leaders.
Traditionally, governments enjoy their best moments of credibility during their early days in office. Thereafter, that credibility declines and its speed is determined more by the governments' deeds than their words.
Of course, credibility can decline because of real or imagined reasons, as perception is shaped by facts, insufficient information and misinformation prompted by rumour or deliberately spread propaganda.
Public opinion is therefore shaped by the amount and accuracy of the information provided by the government, how this information is conveyed to the public, and how much of this information is imbibed and understood by the public.
When a government takes office it is given the benefit of the doubt about statements on goals to be achieved and policy measures to accomplish those goals. When it comes to economic policy, the standards are more rigorous because statements can be evaluated based on economic data. Above all, statements are assessed by whether they match actual economic outcomes.
Former Prime Minister Bruce Golding and former Finance Minister Audley Shaw changed the course of Jamaica's economic policy both in word and deed by successfully tackling difficult tasks, like divesting Air Jamaica and lowering interest rates.
Those measures gave them credibility locally and with the international financial institutions such as the International Monetary Fund (IMF).
It was this credibility that facilitated the Jamaica Debt Exchange and the enormous borrowing from the Inter-American Development Bank.
Unfortunately, that credibility and good reputation as a Government pursuing sound economic policy in the very difficult circumstances of a global financial crisis and a fiscal policy with the "ball and chain" of a huge national debt suffered some damage by the time of the general election in December 2011.
Obviously, the Administration had to take the rap for its failure to meet fiscal targets, both for expenditure and tax collection. However, the technical team at the Ministry of Finance cannot escape taking some of the blame.
With the change of Government, the credibility of Jamaica's economic policy rests on the solid reputation and quality of mind of Dr Peter Phillips — the new finance minister — and the competence of the Bank of Jamaica and the Planning Institute of Jamaica. But a minister is only as good as the technical team that advises and supports him.
Dr Phillips has inherited the same team that Mr Shaw depended on to his detriment. Same horse, same distance, same weight but different jockey. Maybe it is just a matter of chemistry or that the whip will be used. Let us hope the results are better this time around.
Read more: http://www.jamaicaobserver.com/edito...#ixzz1krVEpz4K