Gareth Manning, Gleaner Writer
Douglas Orane, GraceKennedy board chairman and chief executive officer. - IAN ALLEN/STAFF PHOTOGRAPHER
JAMAICA'S COMPETITIVENESS has fallen, a World Economic Forum (WEF) report states. The Global Competitiveness Report 2005 ranks Jamaica 70th of 117 countries, compared to a 2004 ranking of 65th.
Trinidad remains the highest ranked English-speaking Caribbean country, placing 60th after dropping almost 10 places. Finland and the United States hold first and second spots respectively. Newcomer Guyana ranked 115th.
The report defines competitiveness as a collection of factors, policies and institutions that determine the level of productivity of a country, and ultimately its prosperity. It measures competitiveness on three tiers: the macroeconomic environment; the state of the country's public institutions, and its level of technological readiness. Jamaica ranked 99th, 65th and 45th respectively on all three levels, while Trinidad and Tobago ranked 40th, 83rd and 62nd. Guyana ranked 113th, 109th and 115th.
The report cites a large fiscal deficit, issues relating to organised crime, public sector transparency and customer service as some of the issues affecting growth in competitiveness. The report was made at the launch of the Competitiveness Committee recently. The committee was launched under a partnership between government and the European Union's Private Sector Development Programme (PSDP) and will seek to intensify Jamaica's efforts to compete in the market-driven technology-based global environment-based on the report's findings. The committee is funded to the tune of ¤28.6 million.
Chief executive officer of GraceKennedy Company Limited, Douglas Orane, says for the country to record better results it must be more efficient. To achieve this, he says, Jamaicans must produce more with less effort, be punctual and reduce waste.
"I believe this committee is watershed to signal a different way of running our businesses and particularly for small and medium sized businesses that will need assistance in order to get over the hump," Mr. Orane said.
The country's violent environment is unsuitable for businesses to perform efficiently and crime must be cut so that Jamaica can compete better, he said. Some four GraceKennedy employees have been murdered this year and senator Orane questioned how world class companies could be built in such an environment.
But while Jamaica has dropped overall in the competitiveness ranking, the country has made improvements in some areas.
Minister of Development, Dr. Paul Robertson, noted that the country was ranked 18th in bureaucracy and 42nd for tax system efficiency. He said the country has made significant improvements in public institutions' efficiency through the World Bank's Public Sector Modernisation Programme.
That programme has improved the operations of several public sector bodies and has increased customer service efficiency to cut red tape, he said. Dr. Robertson named the Registrar of Companies, National Land Agency and the National Work Agency as examples of institutions that have increased their efficiency as a result.
Additionally, Jamaica has been benefiting from large investments in telecommunications, tourism and bauxite, the minister said. That should improve overall business prospects in Jamaica.
Government recently facilitated multibillion-dollar investments in broadband access to improve the telecommunications sector, while Jamalco is spending US$1.2 billion starting this year, to expand its Clarendon alumina plant.
But Minister Robertson says more needs to be done to create a productive, business friendly environment to allow firms to compete in the global market.
To enhance competitiveness, coordination is critical, the minister said. "The private sector, government and labour must work together towards specific sector based targets."
Meanwhile, Bustamante Industrial Trade Union vice-president, senator Dwight Nelson said the workforce needs to be reformed if companies are to compete in the global environment. He said the country lacks an efficient, trained and motivated labour force in an era where the market demands workers to be multi-skilled.
"The labour force of Jamaica, as presently constituted, cannot enhance national competitiveness," he said, noting that 74 per cent of the force has had no training. So trade unions and employers should partner to ensure workers are trained to meet market demands.
In addition the senator Nelson said the country needs to review the flexi-work week proposal made in 2002, if it is to become more competitive. "This country cannot become competitive working five days per week, eight hours per day."
The Competitiveness Committee will review existing legislation, policies and institutional mechanisms that pose barriers to effective business operation and growth and other issues that impact productivity. It will act as a direct channel between stakeholders and government.
