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'Spend within your means' - Colombian economist says Jamaica has no other way out of dire situation
Published: Wednesday | June 19, 2013 5 Comments
Juan Carlos Echeverry, former finance minister in Colombia, speaks with The Gleaner at the World Bank's offices in New Kingston yesterday. Gladstone Taylor/Photographer
Gary Spaulding, Senior Gleaner Writer
"Don't fool yourself and then ask to be fooled." That's the word to Jamaicans from internationally renowned economist Juan Carlos Echeverry, the official who has been credited for steering Colombia out of dire economic straits - considered worse than those faced by Jamaica - to stability and growth.
Instead, Echeverry, chosen by four international publications as 'The Best Minister of Finance of the Americas' in 2011, urged Jamaicans to be patient as the Government moves to set the economy on a similar path.
Echeverry expressed optimism that Jamaica would be able to achieve similar economic growth levels of up to 7.9 per cent annually to that of his country as well as a sharp decline in criminality. He, however, hastened to call for the Government to be consistent in its approach to governance.
"We all have to learn patience because what led us to this crisis in the first place is impatience," he asserted in an exclusive interview with The Gleaner yesterday. "At the very least, we got to this point because we were impatient."
Echeverry, who is in Jamaica as a guest of the World Bank, is expected to meet with Minister of Finance and Planning Dr Peter Phillips today, before he departs.
NEED TO GET THINGS RIGHT
"This is a hard world that we live in. We don't live alone here," he said. "We have a lot of competitors who are trying to get things right in order to compete … "
Added Echeverry: "We have to be more patient, more serious, more committed, well co-ordinated, believe more in ourselves and more in the Government, and allow the Government to give time frames to apply the medicine."
The former minister, who was a technocrat in Colombia before assuming the finance portfolio, spent much of yesterday in an interactive workshop with top Jamaican technocrats at the World Bank office in New Kingston.
Echeverry warned that the principles of economics indicate that Jamaicans must spend within their means.
"Economically, we ask our governments to spend more than we give in taxes … . 'Give me more health care, give me more this and that', but we don't want to pay taxes, yet we are impatient to see results. … All too often, we ask our Government to provide more services than our taxes can afford to provide."
He stressed that no serious government should systematically spend more than it has.
"While this may be excused for one or two years, you cannot do it for 10 years," he asserted. "You have to spend within your means."
Echeverry suggested that if the crime rate continues to climb, the Government must sacrifice all things to fight crime.
"There is no way you can fight crime and not sacrifice other means," he stressed.
Prior to his tenure as minister of finance and economic planning between August 2010 and September 2012, Echeverry was a technocrat in much of the preceding 15 years.
He has been credited for lifting Colombia - previously marred by widescale narco-trafficking, reeling under the weight of crime and violence, and crippled by an economy that experienced negative growth of minus 4.9 per cent - out of its economic woes.
Echeverry is a former dean of economics at Universidad de los Andes (Bogotá). He has a PhD in economics from New York University and is a macroeconomist, policymaker and university professor, experienced in economic and political analysis.
gary.spaulding@gleanerjm.com
Published: Wednesday | June 19, 2013 5 Comments
Juan Carlos Echeverry, former finance minister in Colombia, speaks with The Gleaner at the World Bank's offices in New Kingston yesterday. Gladstone Taylor/Photographer
Gary Spaulding, Senior Gleaner Writer
"Don't fool yourself and then ask to be fooled." That's the word to Jamaicans from internationally renowned economist Juan Carlos Echeverry, the official who has been credited for steering Colombia out of dire economic straits - considered worse than those faced by Jamaica - to stability and growth.
Instead, Echeverry, chosen by four international publications as 'The Best Minister of Finance of the Americas' in 2011, urged Jamaicans to be patient as the Government moves to set the economy on a similar path.
Echeverry expressed optimism that Jamaica would be able to achieve similar economic growth levels of up to 7.9 per cent annually to that of his country as well as a sharp decline in criminality. He, however, hastened to call for the Government to be consistent in its approach to governance.
"We all have to learn patience because what led us to this crisis in the first place is impatience," he asserted in an exclusive interview with The Gleaner yesterday. "At the very least, we got to this point because we were impatient."
Echeverry, who is in Jamaica as a guest of the World Bank, is expected to meet with Minister of Finance and Planning Dr Peter Phillips today, before he departs.
NEED TO GET THINGS RIGHT
"This is a hard world that we live in. We don't live alone here," he said. "We have a lot of competitors who are trying to get things right in order to compete … "
Added Echeverry: "We have to be more patient, more serious, more committed, well co-ordinated, believe more in ourselves and more in the Government, and allow the Government to give time frames to apply the medicine."
The former minister, who was a technocrat in Colombia before assuming the finance portfolio, spent much of yesterday in an interactive workshop with top Jamaican technocrats at the World Bank office in New Kingston.
Echeverry warned that the principles of economics indicate that Jamaicans must spend within their means.
"Economically, we ask our governments to spend more than we give in taxes … . 'Give me more health care, give me more this and that', but we don't want to pay taxes, yet we are impatient to see results. … All too often, we ask our Government to provide more services than our taxes can afford to provide."
He stressed that no serious government should systematically spend more than it has.
"While this may be excused for one or two years, you cannot do it for 10 years," he asserted. "You have to spend within your means."
Echeverry suggested that if the crime rate continues to climb, the Government must sacrifice all things to fight crime.
"There is no way you can fight crime and not sacrifice other means," he stressed.
Prior to his tenure as minister of finance and economic planning between August 2010 and September 2012, Echeverry was a technocrat in much of the preceding 15 years.
He has been credited for lifting Colombia - previously marred by widescale narco-trafficking, reeling under the weight of crime and violence, and crippled by an economy that experienced negative growth of minus 4.9 per cent - out of its economic woes.
Echeverry is a former dean of economics at Universidad de los Andes (Bogotá). He has a PhD in economics from New York University and is a macroeconomist, policymaker and university professor, experienced in economic and political analysis.
gary.spaulding@gleanerjm.com
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