OraneWhile there might be a general perception that the Jamaican economy is moribund, the facts could be far from dismal. In order to get a glimpse of the brighter side, one needs to look beyond the macro-economic indicators that are published.
This is how Senator Douglas Orane, chairman and chief executive officer at Grace, Kennedy entreated his audience to take another look before painting or accepting a total doomsday picture for Jamaica: "Some people are down in the dumps, Sen. Orane said. "They are so depressed and emotionally upset that they are virtually paralyzed. When one accepts such an environment as reality, nothing can get done."
Senator Orane, was speaking at Mayberry Investment's Monthly Investor's Workshop in November on the theme "Local business with a global perspective: How to succeed in business in Jamaica today". He pointed out what each individual can do to surmount the negatives in the environment and go on to make a living.
First of all, Senator Orane said, persons have to seek the right facts in order to get a healthier picture of what is going on in the economy. For example, he said, while the goods producing sector declined by 0.8 per cent in 1999, real output from services grew by 4.0 per cent. Furthermore, last year Jamaica recorded an inflation rate of 6.4 per cent, which was the lowest in 17 years. And while the construction sector declined by 1.6 per cent last year, housing starts were up by 18.5 per cent.
What created this paradox? "In fact", Senator Orane said, "there's a tremendous boom in residential building in Jamaica today, which spills over into furniture, home appliances and other industries that support new homes".
He said that Grace, Kennedy's own retail chain, Rapid Sheffield, has experienced an increase in cement sales year over year. In the first six months of this year, cement sales were up 10.2 per cent over the same period last year, Orane said.
Other positive figures cited by Senator Orane included tourism - tourist and cruise ship passenger arrivals up 6.1 per cent and 22.0 per cent respectively for the first eight months of this year over the comparable period last year; deposits and assets under management up 23.0 per cent since the beginning of the year at their own Merchant Bank, George & Branday; and, according to the World Investment Report, foreign direct investment in Jamaica was US$520 million last year compared with US$320 million the year before.
So growth, he said, is taking place.
Seeking growth in external markets
Yet, Senator Orane said that for a company like Grace, Kennedy, there is a limit to how much growth can take place in Jamaica. So the company has to seek to grow outside of Jamaica as well so that it can be better equipped "to meet its own aspirations and those of its employees."
For the nine-month period ended September 30, thirty per cent of Grace, Kennedy Group's pre-tax profit of $716.2 million came from economies outside of Jamaica, Senator Orane said. Not all the companies in the group contributing to these foreign earnings are physically located outside of Jamaica. For example, their export trading companies located in the island earn foreign exchange, as do Grace Remittance Services and their management of Kingston Wharves.
Opportunities
Referring to Grace, Kennedy's tradition and practice of outsourcing many of the support services it requires such as information technology, computer services, warehousing and delivery services, Senator Orane said that there are opportunities in Jamaica for those who wanted to be truly entrepreneurial.
But, he said, such individuals must be prepared to strive for excellence, take appropriate measures to offset risks and be prepared to fight for Jamaica.
"Jamaica is the only piece of the planet Earth for which we as Jamaicans have an inalienable right," Senator Orane said. "So stay here and fight for it. Let's take the country back from the dishonest and the corrupt".
