Corruption and economic growth

Curtis Webley, Guest Columnist

The general consensus among Jamaica's policymakers and the International Monetary Fund is that the devaluation of the Jamaican dollar will spur economic growth with increased foreign investments. Theoretically, this scenario might be correct for the patriotic foreign investors and aficionados; however, devaluation might not be enough to entice new investors or even bolster foreign investments because of the perception and history of our corrupt practices.

One of the most important factors that stifle economic growth, especially those of emerging economies, is the perception of government corruption. This includes, but is not limited to, bribery, nepotism, cronyism, and money laundering.

We have seen well-documented evidence which supports the fact that corruption is a deterrent to economic growth. Our ranking on the Global Corruption Perception Index is consistently low; but what are we doing to curtail the monster of corruption?

The Jamaica Labour Party (JLP) and the People's National Party (PNP) have made minimal strides to curb corruption, although they are aware of its significant negative impact on the country's economic growth and sustenance. While both parties preached a zero-tolerance approach to corruption, there are no serious collective or concerted efforts made to rid the country of this atrocity. Their actions are duplicitous, as was demonstrated with the recent curtailment of power to the contractor general's office.

You may recall former Contractor General Greg Christie's vow to rid the country of corruption. He made a gallant attempt to do so while facing many prejudicial and political obstacles. Were these obstructions to reduce Mr Christie's power based on the notion that corruption is so pervasive in the Government, and his relentless efforts might unravel some unsavoury events, forcing political accountability, political exodus, or early political retirement?

an ominous signal

Could this objection to the maintenance and enforcement of law be similar to those of the Christopher 'Dudus' Coke's extradition saga where Senator Desmond McKenzie expressed "fear of instability, severe repercussion, and collateral damage?" Such public theatrics might be an ominous signal that warrants further investigation.

Jamaica's solution to corruption is not embedded in a pond of colourful, repetitive, oratorical skills that get stagnated because there is no drainage. It is entrenched in the reservoir that contains the rain of corruption.

Therefore, political reformation and corruption cleansing should begin with Parliament and all government offices, including the judicial system and the police force. What we have seen and have come to accept as corruption panacea are basic police bribe-taking or bribe-offering scandals, which are usually thrown out of court for lack of evidence.

These laborious, minuscule tasks seem to be nothing more than flagrant, surreptitious attempts to appease the international watchdogs, and to cover our defiance to exposure of transparency, insecurity, and fragile political longevity.

It is a fact that Jamaica, like many other countries, cannot solve its corrupt practices and economic problems with a bottom-up approach. This is micromanagement that is counterproductive. Corruption does not start with the marginalised and average citizen; it does not start in a vacuum, and there is no magic wand that can be waved to cure the problem.

The logical, parochial thought process would dictate that the root of the tree of corruption is its cause, and not its branches; it's a trickle-down process.

I think that our leaders need to put egos aside, and think about the people of Jamaica; their continued sufferings, their pains, their ambitions, their integrity, and expand the powers of the contractor general's office; employ collective intellectual vigilance and consistency to replace mediocrity; extrapolate, expose, investigate, publicise, and prosecute high-profile cases, and make examples of those who are found guilty of corruptible practices.

This top-down approach would minimise corruption in the top tier of our society where it's needed the most, and its ripple effect disseminated to the ordinary citizens.

This tactic, my friends, most certainly will have a positive effect on foreign investments, sustainable economic growth and employment, and improve local and international perception.

Curtis Webley is a certified public accountant. Email feedback to columns@gleanerjm.com and cwebley@wascpafirm.com.