Mon | Aug 21, 2017

Jamaica, prepare to benefit from more trade

Published:Monday | May 23, 2016 | 5:00 AM

THE EDITOR, Sir:

By October 2016, the World Bank and International Financial Corporation will publish their 14th report on the Ease of Doing Business Index. The present Government will have little opportunity to influence the outcome of that report because the period that will be under review ends next month.

Nevertheless, it is important that the thrust to improve Jamaica's performance does not wane. Referring to Doing Business 2016: Measuring Regulatory Quality and Efficiency, in 'Jamaica Takes the Leap in Doing Business Indicators: 5 Lessons for the Wider Caribbean', Navita Anganu-Ramroop lamented that:

"Not all countries are bothered by rankings, and therefore not all countries make a concerted effort to change and attempt to improve same, failing to realise that the competitiveness of nations are equally important and necessary for the competitiveness of firms operating within the country."

Doing Business 2016 also states that Latin America and the Caribbean (LAC) is one of the regions "with the smallest share of economies implementing regulatory reforms. ..." In fact, Jamaica and The Bahamas were the only Caribbean nations that actually improved their global ranking in that report.

The Bahamas moved from 108th to 106th, while Jamaica moved from 71st to 64th out of 189 global economies. With the widening of the Panama Canal and construction of a second canal in Nicaragua, a significant increase in trade and investment can be expected in the Caribbean Basin. So, improving competitiveness of local firms is imperative and this through greater effort than before.

It is also important to realise that 11 out of the 12 highest-ranked nations within LAC are located in the Caribbean Basin. Jamaica cannot afford to slack up on its previous effort. It should be of no comfort that greater trade is expected in the greater Caribbean if we are ill-prepared to benefit from it.

Paul Hay

paul.hay@phcjam.com