Jamaica at Crossroads

By: Leroy A. Binns Ph.D.

In an era of globalization Jamaica the fourth largest Caribbean is facing a period of economic stagnation. As the nation prepares itself for national elections in the coming year, social unrest is magnified through decreasing productivity, high interest rates, an inadequate educational system, unemployment and an increase in crime.

The country struggles to pay an enormous debt estimated at over 60% of gross domestic product (GDP) compliments of a disintegrating public sector. Case in point reflects insufficient assistance to the Ministry of Agriculture which desperately needs capital to create incentives for farmers to address cultivation and local consumption requirements and for authorities to promote the exportation of output overseas. An identical assessment is also applicable to other governmental departments that include the Ministry of Tourism which has been granted limited funding incapable of addressing necessary promotions abroad.

Debt financing has also created additional burdens. As a corrective measure, high interest rates have been introduced but such has resulted in reduced financial transactions which in turn have been partly responsible for a limited introduction of enterprises and the closure and on some occasions the transferal of establishments. In additional such drastically diminished sales of large ticket items as consumers although experiencing an atmosphere of relatively low inflation are unable or unwilling to acquire loans with austere penalties.

Education as well suffers due to restraints on monetary supply and its adverse effects are demonstrated through unsuccessful attempts to provide adequate schooling for students. Theoretically the government has transformed junior secondary institutions by granting such the status of traditional high schools yet their academic achievements remain largely unchanged. In contrast amidst the implementation of a replacement for the Common Entrance Examination (CEE)) policy makers failed to acknowledge the correlation between primary and secondary education and therefore excluded the former from appropriate scrutiny. An error of omission with relation to improved training and incentives for teachers is also worthy of recognition as many qualified instructors have sought safe haven within other sectors at home or have opted for residency overseas thus reducing proficiency.

Unsurprisingly the economic crisis has contributed to rising unemployment, under-employment and an insurgence of crime on the island. As businesses “downsize” or collapse under extreme operational expenditure and fiscal loss employee are made redundant. In many instances in this climate of unrealistic prices and taxation some workers offer their services of long hours under unacceptable working conditions for sparse remuneration and unsatisfactory benefits. To amplify the situation the flight of talented Jamaicans which was common during the latter half of the 1970s under the Manley regime has again been manifested through scores of professionals who have been lured by foreign companies.

Although unlawful behavior is attributed to numerous sociological factors from a psychological perspective an inability to appear “functional” within society cannot be overlooked. Unfortunately some disenchanted citizens many of whom are lacking the necessary skills that commensurate with coveted assignments have resorted to criminal activities. Over the years such atrocities which include rapes, robberies and murders have thrived and in part destroyed the nation’s image abroad hence resulting in fear and paranoia and the loss of foreign capital in areas of investment and tourism.

A reversal to the complex economic crisis is attainable. The island enjoys a geographic advantage based on its close proximity to the United States and Canada and is beneficiary of close relations with the industrialized world and many under-developed countries. Moreover her characteristics are conducive to mining, marine, agricultural and tourism ventures.

Within this context partnerships must be created with service industries. (e.g., lending institutions and other multinational corporations), governments and political alliances (e.g., the EU, NAFTA, OAS, the Non Aligned Movement and CARICOM) for restoration of fiscal stability through active participation in the global economy. Such engagements which could encompass joint exercises to assist the Ministry of Agriculture would result in widespread production, consumption and exportation of commodities beneficial to all participants. A similar association with the Ministry of Tourism could yield dividends from world wide advertising and both transformations would boost employment on the island.

Exchange programs initiated by governmental agencies coupled with the utilization of Jamaican technocrats at home and abroad in spheres of technological development, management and manufacturing are also critical components to the advancement of job creation and efficiency. The strengthening of relations through the removal of tariff restrictions pertinent to the advancement of trade and commerce between Third World nations may also allow Jamaica an opportunity to profit from showcasing its produce overseas.

Implementation of the abovementioned considerations could have far reaching implications. A metamorphosis would entail a decrease in crime, rising employment and upgraded services throughout agriculture, education, tourism and health care sectors to name a few. Moreover with an injection of foreign capital the government’s response could include the stabilization of the Jamaican currency and a reduction in interest rates thus improving consumer confidence.

An ineptness to confront the surmounting issues of the day will render the nation a victim to a period of great possibilities. The Jamaican leadership must seize the challenge to rebuild a nation rich in resource yet restricted by vision