Tweet
Logistics Hub: Our hope of economic growth?
BY JAMES A MCNISH
Tuesday, November 19, 2013
AMIDST the recently positive news that Jamaica has performed beyond expectations of the International Monetary Fund targets, the economy remains fragile as it continues to encounter headwinds from a Debt to GDP ratio of 140 per cent and decades of anaemic growth. A lack of economic growth can define and undermine the ability of any government to manage, effectively, the country's affairs. Against this backdrop, the Government needs to make it a national imperative to place our economy on a growth path for long-term sustainability through ambitious and clearly communicated reforms.
The logistics hub investment — the ubiquitous debate — by the Chinese is US$1.5 billion, approximately 10 per cent of GDP, the largest single investment in recent times. Of significance, it has the potential to open up other economic possibilities through private sector involvement. Jamaica ranks 124 out of 155 countries, according to the World Bank Logistics Performance Report 2012, however the country has the latent ability to improve and ascend to the top quintile of performers. Understandably, our logistics performance will not improve overnight, but it can be done through strategic planning and long-term comprehensive reforms. Moreover, the report discloses that freight transport and the accompanying logistics represent one of the most dynamic and important sectors of the European economy, accounting for at least 10 per cent of GDP. Within this context, the level of impact on our economy should be similar.
A map identifying the proposedsite of the new logistics hub
A map identifying the proposedsite of the new logistics hub
Considering that our unemployment rate is 15.4 per cent, with some 60 per cent unemployment between the ages 14 and 34, it is becoming increasingly crucial for the Government, through pro-business policies, to address this lingering issue. Taking long-term strategic decisions seem to be anathema to most of our national policymakers. A panoptic study of our model of doing business is required. The conventional manner of achieving sustained economic growth — the key priority — proves to be elusive. To achieve economic growth, the Government will have to think and act counter-conventionally by diversifying the economy. Currently our hope of achieving economic growth — although not a panacea — lies in the logistics hub.
For Jamaica to elevate to the elitist group of logistics performers, there are some essential variables — determinants of competitiveness — which must be present. They are as follows: competitive costs, sustained quality of service, flexible and harmonious labour force, investment in human capital, consistent government support, private sector involvement, integrated transportation system, elimination of bureaucracy, and a single window system for Customs processing.
As the logistics hub evolves, the Government should facilitate the creation of an economic city within the area to further develop the economy, generate regional growth and create employment opportunities. The economic city will incorporate a cluster-based development consisting of transportation, logistics hub and supply chain centres, educational services, commerce services, agricultural and food processing services, infrastructure and houses.
This concept possibly can spawn a diverse range of private sector investment opportunities. In the long run, Jamaica will be transformed into a First World economy, an outlier, attracting the most prestigious group of international investors on our shore.
I am making a strong appeal to the Government and interested stakeholders to expedite the conclusion of the investment in the proposed logistics hub so as to unlock the vast amount of business potential. Interestingly, Cuba, up and running, has approved the investment of its own logistic hub and its aim is to become the principal hub for the Americas. This proposed investment cannot be procrastinated and entangled in conflicts indefinitely or the opportunity will be lost.
Will we continue to vacillate on the investment of the logistics hub at the expense of economic growth and new investment opportunities?
James McNish, is a University of Technology, Jamaica lecturer.
jamcnish@utech.edu.jm
Read more: http://www.jamaicaobserver.com/colum...#ixzz2lI8zi3wk
BY JAMES A MCNISH
Tuesday, November 19, 2013
AMIDST the recently positive news that Jamaica has performed beyond expectations of the International Monetary Fund targets, the economy remains fragile as it continues to encounter headwinds from a Debt to GDP ratio of 140 per cent and decades of anaemic growth. A lack of economic growth can define and undermine the ability of any government to manage, effectively, the country's affairs. Against this backdrop, the Government needs to make it a national imperative to place our economy on a growth path for long-term sustainability through ambitious and clearly communicated reforms.
The logistics hub investment — the ubiquitous debate — by the Chinese is US$1.5 billion, approximately 10 per cent of GDP, the largest single investment in recent times. Of significance, it has the potential to open up other economic possibilities through private sector involvement. Jamaica ranks 124 out of 155 countries, according to the World Bank Logistics Performance Report 2012, however the country has the latent ability to improve and ascend to the top quintile of performers. Understandably, our logistics performance will not improve overnight, but it can be done through strategic planning and long-term comprehensive reforms. Moreover, the report discloses that freight transport and the accompanying logistics represent one of the most dynamic and important sectors of the European economy, accounting for at least 10 per cent of GDP. Within this context, the level of impact on our economy should be similar.
A map identifying the proposedsite of the new logistics hub
A map identifying the proposedsite of the new logistics hub
Considering that our unemployment rate is 15.4 per cent, with some 60 per cent unemployment between the ages 14 and 34, it is becoming increasingly crucial for the Government, through pro-business policies, to address this lingering issue. Taking long-term strategic decisions seem to be anathema to most of our national policymakers. A panoptic study of our model of doing business is required. The conventional manner of achieving sustained economic growth — the key priority — proves to be elusive. To achieve economic growth, the Government will have to think and act counter-conventionally by diversifying the economy. Currently our hope of achieving economic growth — although not a panacea — lies in the logistics hub.
For Jamaica to elevate to the elitist group of logistics performers, there are some essential variables — determinants of competitiveness — which must be present. They are as follows: competitive costs, sustained quality of service, flexible and harmonious labour force, investment in human capital, consistent government support, private sector involvement, integrated transportation system, elimination of bureaucracy, and a single window system for Customs processing.
As the logistics hub evolves, the Government should facilitate the creation of an economic city within the area to further develop the economy, generate regional growth and create employment opportunities. The economic city will incorporate a cluster-based development consisting of transportation, logistics hub and supply chain centres, educational services, commerce services, agricultural and food processing services, infrastructure and houses.
This concept possibly can spawn a diverse range of private sector investment opportunities. In the long run, Jamaica will be transformed into a First World economy, an outlier, attracting the most prestigious group of international investors on our shore.
I am making a strong appeal to the Government and interested stakeholders to expedite the conclusion of the investment in the proposed logistics hub so as to unlock the vast amount of business potential. Interestingly, Cuba, up and running, has approved the investment of its own logistic hub and its aim is to become the principal hub for the Americas. This proposed investment cannot be procrastinated and entangled in conflicts indefinitely or the opportunity will be lost.
Will we continue to vacillate on the investment of the logistics hub at the expense of economic growth and new investment opportunities?
James McNish, is a University of Technology, Jamaica lecturer.
jamcnish@utech.edu.jm
Read more: http://www.jamaicaobserver.com/colum...#ixzz2lI8zi3wk
Comment