Delroy Chuck WHEN I read a recent pronouncement of Prime Minister P.J. Patterson that "Jamaica is poised to take off to new horizons of growth, development and progress" I am reminded of an African President, giving his State of the Nation's address, who said: "My fellow countrymen, last year our economy stood on the precipice of disaster, this year we are about to take a giant step forward." Well, we have heard many times that we are on the verge of an economic take-off, and still the country declines relentlessly into a vortex of economic hardships, more suffering and deeper stagnation. Somebody needs to take responsibility, to own the recurring economic problems and frankly apologise to the nation for the economic failures of the past decade and more. Yet, no one will, as scapegoats are readily contrived for every failure of monetary policy, economic prescription or fiscal imbalance.
POLICY ERRORS
When things go wrong and no one takes responsibility, the real likelihood is that the true culprits survive to repeat the mistakes, continue the policy errors and push the country even deeper into the economic pit. When will someone in authority accept and realise that the country is on the wrong economic path and now is the time for a reality check and changes in our economic direction?
I do not know what measures Prime Minister Patterson and his Ministers use, as they go around the country spreading the good economic news of solid achievements, economic progress and stability in our currency. They no doubt live in a totally different Jamaica from the vast majority who struggle daily to find the next meal, experience perennial unemployment, encounter mounting price increases, and overcome bouts of despair and depression. Where are the growth, development and progress of which the Prime Minister speaks but which the rest of the country cannot see, experience or measure? Surely, our expectations and standards cannot be so skewed and inverted that we readily ignore the evident decay and measurable deterioration everywhere and con ourselves to believe the dreams and promises that never seem to materialise.
To be sure, Jamaica needs growth, development and progress. Our people need jobs, opportunities and choices and, in a nutshell, the freedom to move forward and, I dare say, in any direction they so desire. Yet, that cannot happen unless we create an environment for our people to have trust and confidence, for the country to attract productive investment and for our economy to expand. We need an economic environment to create ways and means to work our way out of the debts, the decay and deterioration.
Let's get real, if Jamaica is to become a first world country, for our people to enjoy a decent quality of life and for us to have a country of which we can be proud, then talk is not enough, loans and remittances cannot do it, and politics cannot be the priority or the gateway to the promised land. What this country needs more now than ever is to forget the talk, put economics first, create the business atmosphere to attract billions of dollars of investment and encourage tens of billions of foreign currency to pour into our country to spur production and development, growth and progress.
If Jamaica is to move forward, we need a complete reversal of the present monetary and economic policies that are simply strangling production and deterring development. The present prolonged high interest rate policy is just madness and the major obstacle for businesses to thrive.
Again, it is just continued madness to use tens of billions of dollars to protect a currency the value in which no one has any confidence. When the government has to use high interest rates, the NIR, indexed bonds, moral suasion and concealed threats to protect the currency, then it is a losing battle and the environment is created for speculators to thrive, as the market attempts to find realistic exchange rates. Most importantly, we need to ask what can we do to attract foreign investors. Local investors alone cannot do it. The tens of billions of foreign currency needed to turn Jamaica around cannot come from our savings and from the best ideas of our local businessmen.
MASSIVE FOREIGN INVESTMENT
In truth, every country that has taken off economically has had the benefit of massive foreign investments. Well, will we accept the reality that the present business atmosphere is hostile to local business and, predictably, even more hostile to foreign investment. Why are the foreign firms that made soap, toothpaste, tyres, razor blades, garments and a host of daily used items no longer manufacturing here?
When foreign firms are leaving, then growth and development tend to leave with them. The policies that cause them to leave must be abandoned and better policies implemented, hopefully, to attract them and others back to our shores. Yes, until we wake up to that reality, growth and development will be pleasant mirages, which, tantalisingly, always seem so near, yet so deceptive and unreal.
Delroy Chuck is an attorney-at-law and Opposition Member of Parliament. He can be contacted by e-mail at delchuck@hotmail.com.
