Robert Buddan, Contributor
IAN RANDLE Publishers just launched the collection of Prime Minister Patterson's budget presentations between 1992 and 2002. Edited by Senator Delano Franklyn, the apt title is The Challenges of Change. While Mr. Franklyn nicely summed up the major themes of these presentations, Professor Richard Bernal, in his review, insightfully captured the philosophy underlying Mr. Patterson's governance. The philosophy is to move from economic adjustment to economic transformation, social empowerment and participatory governance. The operationalisation of this philosophy continues to work itself out. The work of the Party's Policy Review Commission, the Party's last retreat and the NEC's upcoming special meeting on the economy (scheduled for January 10) are some of the more current occasions for this.
My own reading of Mr. Patterson is based, not just on what he believes, but on how his vision differs from that of the JLP's. If the JLP's approach has been centred on economic management and growth, the PNP's has been centred on the culture of governance and transformation. The JLP's message has been that if the electorate puts the right party leadership in Government, (this being the Seaga-led JLP), it will manage the economy right, get economic growth and other problems like unemployment and crime will go away.
The PNP's message has been more complex. It is that sound economic management of the economy can produce growth but past experience has shown that what an economy needs is sustainable growth. Sustainable growth cannot depend on just having the right people in Government since people die or retire. Sustainability comes when structures can survive personalities. At any rate, the old economy cannot be productive in the new environment of globalisation. The question is no longer about management of the (old) economy but about economic transformation to a new economy. This new economy must be competitive but competitiveness requires more than the right incentives to the private sector. The private sector itself must become competitive, aggressive, and visionary. And, the new economy must have the infrastructure that will give it legs upon which the private sector can step forward.
But even more fundamentally, the economy, even with a modern infrastructure, cannot provide sustainable development if people are not at the centre of development. This is where all other models have failed. The new development requires social empowerment and participatory governance driven by people's needs. For this, there has to be a new culture of governance. That culture of governance must have a modus operandi and this should include social partnership, new values and attitudes, and inclusiveness. It is the emphasis on this culture of governance rather than the economics of growth that separates the PNP and the JLP, and this is a wide separation.
OLD AND NEW DEVELOPMENT
In the old model of development, economic capital and those who possess it the private sector were regarded as the driving force of growth. Growth will then "trickle down". That model has been discredited because growth has not been sustained and has not spread out more broadly to create human development. In the new model, the driving force of development is social and human capital. When people are properly educated, trained and housed; when they develop values and attitudes so that they are motivated for excellence; and when they can work together in partnership in the social sector, the economic enterprise and political governance, sustainable development becomes possible. If people steal from firms or strike because they hate management, and if managers (in the public and private sectors) mistreat workers, clients and consumers, economic capital by itself will not sustain much less improve its value.
It is not enough to create and invest economic capital. It is necessary to establish a market-friendly environment. Such an environment allows markets to work, but the Patterson administration has rightly insisted that such an environment also needs an effective state to build social capital. At the same time, partnership is critical if social partners are to have enough competence and trust to work together.
WORKING TOGETHER FOR DEVELOPMENT
To me, the challenge of governance and change for 2004 (and beyond) is to get the formula to work together for development to operate at a greater level of maturity. It has to be the formula to deal with debt, crime and socio-political tribalism. It has to be the formula for CARICOM and the Single Market and Economy, and it has to be the formula for the international community to help people around the world. We must re-focus away from terrorism and war (US foreign policy) to national, regional and global development (people's policy).
It is good that the party leaders have resumed their summit and have agreed on an education policy. That must continue and spread to other areas. It is encouraging to hear Mr. Patterson speak about imminent social partnerships between private sector and labour. It is inspiring that civil society group like Partners for Progress are facilitating partnerships. We have heard but need to hear more from the private sector about its own new standards for good corporate governance and social responsibility. All of these must move beyond talk, stop-go exercises, and limited experiments between political parties. The challenges of change apply to all.
It is good to hear the Sugar Corporation of Jamaica talk about increasing production with a plan in place to motivate people, set standards and build on team-work. These are the essence of social capital.
This shows that a new generation of younger leadership is out there and many of the brightest talents are actually in the public sector and state enterprises. It is good that Scotia Bank has put in so many millions in health and education and the National Commercial Bank gives great support to education. These are leading examples of corporate social responsibility.
It is great that tourism is doing so well and that agriculture is rebounding. We now need to make these sustainable. Further developments in tourism and the gains of investments in infrastructure are yet to make their full impact on the economy. The economy itself, we must remember, is growing. But we need stronger growth. We have hopeful news that the private sector and the Government are working out a scheme to alleviate the debt and fiscal burdens. Mr. Patterson is reported to have said that the worse of the economic woes of 2003 is behind us. We hope 2004 will prove him right.
It is fitting to hear Mr. Patterson speak through his 2002 budget presentation about what the new economy requires. He says, "We have to get our education and training system to deliver graduates who can compete with graduates from anywhere in the world. We have to get our infrastructure, our justice system, our crime levels, our government systems, our production costs all meeting global standards. This is the only basis on which we will survive and prosper. Prospering in the new global environment is the goal of our far-reaching restructuring of the Jamaican economy."
But economic restructuring is not the ultimate end. In his presentation of 1999, Mr. Patterson stressed the need for a new paradigm and renewal of governance. To this end, "Our vision cannot be confined to building a nation of material self-sufficiency. Improved governance, a dynamic social policy and addressing the spiritual needs of the people are essential ingredients in bringing social cohesion to a nation." These are Jamaica's ongoing challenges of change.
Robert Buddan lectures in the Department of Government, UWI, Mona. E-Mail: Robert.Buddan@uwimona.edu.jm
