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Jamaica too rich to be poor, says Golding - JLP outlines underpinned by economic vision wealth creation
Published in the Jamaica Gleaner: Friday | August 3, 2007
Keith Collister, Business Writer
The Jamaica Labour Party (JLP)has enunciated a new economic vision for Jamaica built on wealth creation.
Bruce Golding, leader of the JLP and prime ministerial aspirant, said at the launch of his party's manifesto Monday that the island could generate sufficient wealth to provide a good standard of living and a better quality life for all people.
"Jamaica is just too rich to be so poor," said Golding.
His vision, he said, is a Jamaica "where every child can wake up and have a good school to attend" and "every working adult can wake up with a good job to go to."
Entitled 'A better way for a better Jamaica', Mr. Golding argued the manifesto was drafted in the context of a nation that after 45 years of independence was one of the most indebted in the world, was experiencing one of the highest rates of crime (particularly murder), and which, despite its low productivity was facing intense competition under "a global reality where there was no longer any tariff protection."
As part of a sound macro-economic policy framework, Golding proposed making the Bank of Jamaica independent - the Governor would be expected to report to Parliament twice a year - with a clear mandate to achieve price stability.
He would set a finite limit to the level of debt (95 per cent) and the fiscal deficit (3.0 per cent) in relation to GDP, which should only be exceeded, he said, in national emergencies, thereby sending a signal to local investors, foreign investors and the entire world that: "No government, no matter how powerful, should be able to mortgage the future of the country."
Supporting this planned capping of the debt, the JLP would establish a firm policy that channels all proceeds from the sale of government assets into debt reduction.
Tax rates and administration must become competitive, said the JLP leader, noting that there were no country limits on where foreign investors could place their capital, as had happened during the cold war.
Golding also expressed a commitment to creating a business-friendly environment.
Jamaica open for business
"Jamaica must not only be open for business but ready and anxious for investment," he said.
The JLP leader says he intends to create one agency, comprised of all the relevant authorities that evaluate building applications, to shorten the approval process.
Any developer against whose plan the authority has not registered an objection within 90 days will be entitled to proceed with the development. He also intends to establish performance targets for each agency of the state.
Golding also says he will bring to fruition the long delayed Social Partnership agreement between government, opposition, private sector and trade unions, not "to create a mere statement of goodwill", but to establish commitments.
His plan includes the consolidation of Jampro, the Development Bank of Jamaica and Exim Bank into a mega agency with the responsibility of the financing, marketing and promotion of Jamaica.
Targeted foreign investments will centre on those that are labour intensive, to add jobs to the economy.
The focus on job creation also means special attention for small and medium size enterprises.
Special projects outlined in the manifesto include the creation of an offshore financial sector in downtown Kingston as a "fulcrum" of its redevelopment, and as a means of strengthening the country's economic base, the party said.
The JLP has also vowed to press ahead with plans for an air transhipment hub at Vernamfield in Clarendon to parallel the success achieved in maritime transhipment at Kingston's seaport; transforming Fort Augusta into a large-scale Freeport; developingPort Royal into a cruise ship destination, and modernising Port Esquivel in St. Catherine to grow maritime transhipment.
Golding says his plan, under Caricom, is to leverage Jamaica's membership in the 15-member bloc to generate new business by combining energies and resources to secure investments and create jobs as opposed to one dominant member accruing most of the benefits.
As for tourism, a high income earner for Jamaica, Golding said while he was grateful for the recent hotel investments, suggested that the island was attracting too much low end business.
He said that while on a visit to Turk's and Caicos, that country's premier said he had turned down some of the investors who wanted to set up hotels there, noting that he wanted US$450/night rooms and not properties selling rooms at US$90.
Night time entertainment
He adds that while there has been some attempt to target the high end market such as Palmyra, Jamaica needed to move to the top end of the spectrum, saying it required the development of attractions, particularly for night time entertainment, and the right policy framework to attract investment.
Golding said his vision includes development that is "private sector led, government facilitated", underpinned by job growth.
His outlook for Jamaica, he said Monday, remains optimistic.
keithcollister@cwjamaica.com
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