THE DISAPPOINTMENT Prime Minister of Malaysia, Abdullah Ahmad Badawi, is reported to have expressed in the trade deficit Jamaica has with his country is one which the Jamaican Government and people should be eager to have reversed quickly, however challenging the process.
The visiting Prime Minister noted earlier this week that Malaysia exported over US$13 million worth of goods comprising mainly chemicals, machinery and appliances to Jamaica in 2005, while this country's exports to his country comprised a minuscule US$100,000 mainly of beverages and paper products.
This state of affairs is not, of course, peculiar to Malaysia/Jamaica trade - it is a reflection of the years of decline in manufacturing and the productive sector as a whole. While it may be argued that we have made some gains in the service sector, including tourism, and there is some glimmer of hope in bauxite, by and large, the economy remains in an anaemic state.
But chronic trade deficits have been a feature of Jamaica's economic life for the past 40 years, with a few exceptions. Exports from the country's primary industries have suffered extensively from external shocks, including declining markets, as well as from internal inefficiencies.
But, regrettably, we have also not been able to exploit to any significant degree the new avenues for expansion and growth. Attempts in the 1980s to make inroads into the garment sector failed, and today's information technology sector is expanding, but remains relatively small.
Ironically, while we have been a strong voice in international fora arguing for more favourable terms of trade, especially for our agricultural exports, we are in no position to satisfy even a tiny percentage of the potential market for our goods. The message from Prime Minister Badawi is that his country would be greatly interested in buying more products from Jamaica. Our dilemma is, we hardly have anything to sell, and in no appreciable quantity.
The range of issues to be addressed in reversing the current state is extensive. We need massive injection of capital and new investments, improvements in physical and communication infrastructure, upgrading the quality and efficiency of our workforce, and reducing bureaucratic red tape.
The stark picture painted by the Malaysian Prime Minister should serve to jolt us into the great opportunities that are passing us. In a competitive world economy, Jamaica will have to fight for its place to survive. Others have done it, so can we.
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