Following the national election debates The Gleaner asked both main parties to provide documents expounding upon their economic policies. Part II saw the Jamaica Labour Party (JLP) respond to our request. What follows in Part I is the response of The People’s National Party (PNP) …

Balancing the Books, Balancing Lives

The People’s National Party (PNP) remains unapologetic in its commitment to creating a quality society in which Jamaicans co-exist in peace and are afforded opportunities to attain their full potential. It is the reason we strive for prudent management of the economy and progressive realisation of the quality society in which every Jamaican deserves to live. This is a society, which must be truly democratic in its processes, allows equitable access to resources, and assures citizens of their rights. In this people-centred quality society:

- We have a clearly defined sense of ourselves as a family with a shared vision that inspires everyone to strive for the best for self and country.

- The rule of law is observed and human rights and justice are guaranteed.

- Public resources are managed with transparency and accountability.

- High quality education, health care, and other social services are accessible to ALL, and

- People take personal responsibility for their lives.

As a diverse family, energised by mutual love and respect, we shape a future in which we conquer divisiveness, injustice, prejudice and poverty. This society cannot be wished or ‘promised’ into existence and we most certainly cannot achieve it in a climate of economic uncertainty. It requires an enabling environment comprising visionary, inspirational and committed leadership; a sound macro-economic framework; stable, safe and secure social conditions; strong social, cultural and human capital; and, mechanisms by which citizens can access services.

For the purposes of this article, we focus on the economic environment, especially as it relates to our pledge to fight poverty through the policies and programmes outlined in the manifesto. A central aspect which we explore here is the commitment to bringing people from the periphery into the economic net by providing opportunities through which they can be empowered to improve their lives.

The Economic Environment

The PNP believes economic policies and strategies should be focused on improving the lives of people – we cannot talk in any serious manner about guaranteeing people’s interests where economic uncertainty exists. We do not seek economic growth and stability as ends in themselves; we strive to achieve them so as to ensure we can better serve our people, especially the poor and vulnerable among us. That is why we focused first on creating stability, as this created the confidence that has led to record levels of local and foreign investment. Indeed, the unprecedented investment flows now provides Jamaica with the platform for rapid growth and job creation.

Strong Leadership for Real Challenges

While the base has been laid for the economy to thrive, there remains a major challenge – the reduction and subsequent elimination of the budget deficit. Contrary to the view of others, we believe deficit financing of social expenditure is unsustainable as it leads to higher interest rates and inflation. Higher interest rates increase the burden of servicing the national debt and squeeze the business sector, slow down economic growth and job creation. In practical terms, there is only one-way to achieve the objective: contain public expenditure within revenues. This allows interest rates to fall, thereby reducing interest payments, which in turn leads to improved funding availability for social interventions. Reduced interest rates also stimulate economic growth further by encouraging businesses to invest and in so doing facilitate job creation.

One of the most critical ways to get to the desired budget surplus is through increased ownership and participation of Jamaicans in the economy. While liberalisation of the economy has broadened participation, we acknowledge that it has not gone far enough to fully include average Jamaicans. Beyond liberalization, we intend to pursue democratisation of participation in the economy. This is consistent with a people-centred society and aims to broaden the range of Jamaican investors, owners, operators, and employees in the various industries. This is a critical aspect of our economic planning and is the basis on which we Jamaicans have painstakingly made the sacrifices, which have led to the solid macro-economic conditions we now enjoy. To this end, it is imperative that all the gains won to date be preserved.

In our early years in government we asked Jamaicans to “hold strain”, to be patient while we try to establish the foundations for a solid macro-economic programme. We had inherited an economy from the 1980’s with negative net international reserves of US$875 million; a fictitious foreign exchange market with an artificial exchange rate; and, the inability to borrow except from the multilateral financial institutions with the associated harsh conditions. Our reform of the sector included a market driven foreign exchange system, reflecting a true rate of exchange. At the same time inflation was tamed: seven of the last ten years inflation was under 10 per cent, dropping to a historic low of below 5.8% in 2006. This, like the current confidence in the Jamaican economy, credit worthiness, low interest rates, adequate financial reserves, and record levels of foreign direct investments, hold significant benefits for all segments of our society.

As we broaden participation in the economy, we broaden the producers and owners of wealth as well as sources of revenue for the economy. One will readily notice our manifesto’s emphasis on developing micro, small and medium businesses and the creation of a creative economy as two ways in which we will achieve economic democratisation. Correspondingly, this broadened participation in and ownership of wealth will contribute to the reduction in poverty to which we are committed.

Concomitantly, we have committed to the following as additional ways of improving our economy and ensuring improved management of resources:

1. Improve the level of efficiency of government ministries, statutory bodies, and public sector companies

2. Simplified, efficient and equitable tax system and a “wider” tax net.

3. Consolidated deductions from both employers and employees for NIF, NHT, HEART/NTA etc.

4. Provision of incentives for investments in the Creative economy, and emerging technologies in Agriculture and Energy diversification

5. Incentivising and building capacity for entrepreneurship among youth.

Fellow Jamaicans, let’s use our heads – nothing in life is free. The challenges faced by the Jamaican economy will not be met by leadership, which promises to spend more to solve each problem identified, even while lamenting the high national debt. Certainly the current global economic conditions will not find favour with the Opposition’s proposed approach and the implications for Jamaica’s debt.

Let’s work together in a practical, visionary way to shape our future together to maximise the solid base established for the growth, jobs and momentum we all desire for our country – advancing to the quality society.

Following the national election debates The Gleaner asked both main parties to provide documents expounding upon their economic policies. Part I saw the People’s National Party (PNP) respond to our request. What follows in Part II is the response of the Jamaica Labour Party (JLP) …

Wealth creation versus poverty alleviation

The JLP believes that wealth creation as measured by an increase in GDP per capita is the primary means by which to judge economic development in Jamaica. This view does not trivialize other important benchmarks such as poverty, literacy, income inequality, life expectancy, etc. but rather is based on the principle that these metrics can only be addressed sustainably through economic growth. Dr. Davies is on record as saying that poverty is the primary benchmark through which he judges development. Under such a regime, poverty alleviation achieved by the expansion of remittances or social welfare systems is acceptable. While the JLP believes any instance of poverty reduction is cause for celebration, it strongly believes that the long-term increase in standard of living of the Jamaican people can only be achieved by an obsessive focus on growth.

Macro stability is necessary but not sufficient

Both parties have committed themselves to maintain fiscal restraint and macroeconomic stability. The PNP’s economic model however reflects a “market fundamentalist” ideology. Despite the PNP’s false assertion that the JLP wishes to return Jamaica to the policies of the IMF, it is their total faith in the market that is ironically in total agreement with the Washington Consensus. With the exception of a pure floating exchange rate, Dr. Davies has in fact mirrored exactly the policies the IMF would suggest: high primary surpluses, massive cuts in real social spending and high taxes. The only thing he hasn’t done is accept the cheap money that usually comes with these onerous polices. Dr. Davies policy seems to be “the worst of both worlds.” In addition, it is also reflective of a now outdated paradigm in the international economic community that existed in the 1990s. This view has since fallen out of favour, particularly regarding the development of middle-income nations.

The JLP’s model on the other hand is based on the belief that macro stability is necessary but not sufficient for economic growth. In addition to macro economic stability, a responsible and aggressive industrial policy is required to increase total factor productivity and ultimately generate growth. This view is not an endorsement of a “statist” economic model or an attempt to revive the ISI (Import Substitution Industrialisation) or the “picking winners” polices of the past. Rather it is based on a new notion in the international economic community that the government must play an active role in setting industrial policy. For example, the Governments role in helping to overcome specific coordination failures that prevent new industries from starting and which cannot, by definition, be solved by private actors. These industries are those that are export oriented and in which Jamaica is globally competitive. The JLP manifesto not only identifies these industries, but also lays out a less bureaucratic and more pro-active approach to investment promotion in keeping with this ideology.

Are high primary surpluses the only way to reduce the debt burden?

Dr. Davies has said that the only way to reduce debt is to continue to incur onerous primary surpluses. While the JLP agrees that primary surpluses are the main means to reduce debt in the short term, it believes that legal and alternative approaches exist to quicken the pace of debt reduction. The JLP has placed a creative debt management strategy at the heart of its economic model. This strategy consists principally of capping the debt and deficit, using the proceeds of Petrocaribe and securitizations as debt fighting tools, using multilateral financing for specific projects and attempting to forge an agreement with the private sector to lower interest rates. Both parties concede that reducing the debt burden will be difficult, but the JLP has stated definitively that it is the biggest challenge facing the economy and refuses to take any options off the table.

Good governance is an economic issue

The JLP has placed good governance at the heart of its Manifesto. It believes that good governance is not solely a legal issue but is an integral part of economic policy in three clear ways. First, it frees up resources by reducing waste and corruption in the public sector. Second, it insulates monetary policy from politics through the creation of an independent central bank. Third, it reduces Jamaica ’s political risk premium in the international capital markets and therefore lowers interest rates on its external debt. The PNP has a less focused good governance agenda and approaches the issues through a purely legal lens.

Education and healthcare are investments not expenses

The JLP believes that education and health are not merely social expenditure items but are investments in human capital. It believes that the cost of waiting to make these investments at some point in the future is significantly more expensive than the budgetary costs of making these investments in the short term. Since the return on these investments exceeds our cost of financing they should be pursued. This point is especially true if they are financed by multilateral and long dated financing sources. This principle governs financial theory and private capital budgeting decisions and should govern public policy as well. As a result, education and health are viewed as investments designed to generate revenue to the central government and not as social charges. The PNP believes that social spending is an expense to be spent when and if the government can afford to distribute resources.

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Police vote mix-up
There was confusion today as security forces turned out to vote today, in adcance of Election Day next Monday.

At the Mobile Reserve in the corporate area there was some police personnel reported that their names were not on the lists at the various polling divisions.

The polling station opened on time and long lines were observed at the start of voting.

However the voting process later progressed smoothly.

Police Commissioner Lucius Thomas is registered to cast his ballot at Mobile Reserve.

Assistant Commissioner in charge of Operations Owen Ellington who is also registered at that location cast his ballot this morning.

Meanwhile voting at the Hunts Bay and the Elleston Road police stations was reported to be smooth.

At the Hunts Bay Station which has two polling divisions, Returning Officer Jacqueline Shakes, said voting started off slowly this morning.

A CAFFE observer at the station reported that the process was incident free.

There was more activity at the Elleston Road station as several plain clothes police personnel were seen waiting to cast their ballots.

However, there were not many problems reported by Election Day workers as they also voted today.

… EOJ can’t fix it, says Walker
Director of Elections Danville Walker says the Electoral Office of Jamaica (EOJ) cannot address the problems being encountered by the police personnel.

He says the confusion may be the result of recent police transfers.

Mr. Walker says affected police personnel should seek the permission of their commanding officers to go to the parishes where their names are registered. Otherwise Mr. Walker says they will not be able to vote.

He says with in terms of operations, the Election Day activities have been progressing well.

More than 32,000 members of the security forces and Election Day workers were registered to vote today.

Government wants apology
The Government wants Opposition Leader Bruce Golding to apologise for what it says was a deliberate attempt to mislead the country.

Mr. Golding admitted yesterday that he withheld certain key information at a press conference when he stated that Police Commissioner Lucius Thomas was not in favour of the recent State of Public Emergency.

The Commissioner has since been reported as saying the statement attributed to him by Mr. Golding is not true.

According to the Commissioner he had recommended a State of Emergency in the parishes of Kingston, St. Andrew and St. Thomas.

Information Minister Donald Buchanan says Mr. Golding was trying to confuse the country about the integrity of the Prime Minister when she called the State of Public Emergency.

Manifestos on education lack substance - Jamaica Teachers’ Association (JTA)
The Jamaica Teachers’ Association (JTA) yesterday likened the manifestos of the main political parties on education, to cheese trix, claiming that they lacked substance. At the same time, the JTA has come out strongly against a proposal by the Jamaica Labour Party (JLP) to introduce performance-based pay for the island’s teachers.

Security forces, election workers vote today
Members of the security forces and election day workers go to the polls today to cast their ballots in the country’s 15th general election since Adult Suffrage in 1944.

Douglas in tough fight to retain seat
OLD FOX Harry Douglas, who had announced that he would not be seeking re-election after four terms as Member of Parliament for South East St. Mary, is facing an unceremonial exit from politics, according to a recent Gleaner-commissioned Bill Johnson poll.

Residents say South East St Mary is heading in wrong direction
IF HARRY Douglas is depending on the ‘Portia factor’ to take him to victory in South East St. Mary next week, he may want to reconsider.

An article in today’s edition of Barbados’ The Nation newspaper gives a “grim” assessment of Jamaica’s political culture, as written by a Bajan studying in Kingston:

“To these faces of orange and green, a vote for their party is the validation of tomorrow’s meal and to deprive them of such is to throw oneself into the lion’s den.”

Read the full article from The Nation online.

This general election will be the first in Jamaica to use new electronic voter identification.

Over 600 polling stations in 13 marginal constituencies in the parishes of Kingston, St. Andrew and St. James will use the Electronic Identification of the Voter and Ballot Issuing System (EIVBIS) on Election Day, September 3.

The technology was approved after being successfully tested by the Electoral Office of Jamaica (EOJ) in the constituency of South East St. Andrew during the 2003 local government elections.

With some polling stations recording voter turnout of over 100 per cent in the 2002 election - including a staggering 805 per cent at Arthur Wint Basic School in Hanover West - the Electoral Office of Jamaica (EOJ) hopes that the new system will reduce bogus voting.

While the machines will not enable you to vote electronically, they will be used to identify you, using your fingerprints. They will match your print on the day with that which you provided when registering to vote. Having identified you, the system will then print a ballot ready for you to cast your vote.

If you are rejected, the presiding officer will revert to asking you certain questions to ascertain whether or not you are the person you claim to be.

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CAFFE Ready again
Election watchdog group, Citizens for a Free and Fair Elections (CAFFE) says it is ready for the upcoming general election on Monday, September 3.

According to CAFFE director Nancy Anderson, training for volunteers in preparation for next Monday will end tomorrow before their deployment:

Earlier this month CAFFE indicated that it acquired half of the 2,000 volunteers needed.

However, while not being able to give the current number of volunteers now in place, Mrs. Anderson said there has been a significant improvement:

Bruce clarifies
JLP Leader, Bruce Golding is seeking to clarify statements he made claiming that the Police Commissioner Lucius Thomas was not in favour of the recent State of Public Emergency.

Mr. Golding is claiming that he did not reveal certain key information at a press conference when he made the statement about the Commissioner.

This could have resulted in a misrepresentation of the Commissioner’s view on the State of Emergency.

The state of emergency was lifted on Friday, shortly after it was announced that the Election Day would be on September 3.

Prime Minister Portia Simpson Miller later said she advised the Governor General to lift the state of emergency after receiving word from the Jamaica Public Service Company (JPS) that power had been restored to more than 50 per cent of the country.

PM defends state of emergency
Prime Minister Portia Simpson Miller has again defended her decision to impose a State of Public Emergency following the passage of Hurricane Dean.

Mrs. Simpson Miller told PNP supporters in Sav-la-mar last night that her action was responsible.

She said she had to call for a state of emergency as part of measures to prevent looting, given that the country was without electrical power.

Portia still ahead in personality contest
WHILE THE Jamaica Labour Party has chopped away at the People’s National Party (PNP) lead in popular support, with both organisations now neck and neck, Prime Minister Portia Simpson Miller is still well ahead of her rival Bruce Golding in personal ratings.

VOX POP
The Gleaner took to the streets of the Corporate Area yesterday to get the opinions of a few Jamaicans on the race.

Needed: More women, youths in Senate
A YOUNG breed of politicians, and a standard bearer for women in Jamaican politics, believe that laws should be effected to allow for a certain proportion of the Senate to be made up of women and youths.

DEAD HEAT! PNP, JLP locked in a tussle a week away from election day
As Hurricane Dean approached the island a week ago, the electorate was at a crossroad about which party should form the next government.

Political campaigning to resume - ECJ commends Cabinet for early election date
Jamaicans should brace themselves this week for an increase in election campaigning after a lull due to the passage of Hurricane Dean.

Noteworthy proposals on justice reform
Judging by the sheer number of placard-bearing women and men who have made their way on to the evening news demanding ‘JUSTICE!’, reminding authorities of their essential rights, and feeling they have been disenfranchised from these, the topic would have been an impossible one to omit from any serious manifesto. Both parties try to convince us that they are indeed serious about citizens’ individual rights. Complete with quotes from Martin Luther King Jr., the manifestos make earnest, if not accurate, pronouncements about justice being a fundamental pillar of any thriving democracy.

‘ALL SYSTEMS GO’ - September 3 polls announced, Electoral Office ready
Despite the fury of Hurricane Dean, which left sections of the country devastated, Director of Elections, Danville Walker, says it’s all systems go for a September 3 general election.

State of emergency lifted
The controversial and much-debated state of public emergency, announced by Prime Minister Portia Simpson Miller in the wake of Hurricane Dean, is now a thing of the past.