Garth Rattray | The issue of human capital investment

In a recent speech at a public forum against corruption hosted by the National Integrity Action, past president of the Private Sector Organisation of Jamaica Mr Howard Mitchell lashed the Government for spending heavily on the Legacy projects (described as the ‘Major Infrastructure Development Projects, a legacy for the next generation’, by Prime Minister Andrew Holness) without spending enough on improving the skill set of the inner-city population, the ‘human capital’.

Mr Mitchell lamented that the Three Miles overpass makes it easier for everyone to see how “poor, abandoned, and under-developed the people are”. However, he went on to suggest that the Government use the fiscal space provided by our freedom from stringent International Monetary Fund rules and regulations (I’m paraphrasing) to do more for the people.

Naturally, the administration was not too happy with his remarks as while speaking on a tour of the major infrastructure-improvement projects in the Corporate Area on June 1, 2018, the prime minister explained certain aspects of the programme. It was designed to provide convenience and ease to the commuting public, facilitate law enforcement, “move shacks and inner-city communities and informal settlements to developments where people can be proud and where every single Jamaican can feel that they have an opportunity”, propel Jamaica into a (First-World) future, and provide a legacy for future generations and, therefore, is crucial to our growth.

On the one hand, I can understand Mr Mitchell’s angst. Given our level of poverty, social despair, suffering, and consequent criminality, he wants to see inner-city improvement precede and possibly occur in tandem with infrastructure upgrades. But, on the other hand, the city planners will tell you that major infrastructure work is needed in order to facilitate inner-city improvement.

ALL TALK, NO ACTION

More to Mr Mitchell’s distress and anxiety. Talk of inner-city improvement has been going on for a very long time without enough palpable changes being made. Both sides of the aisle have spoken on the vexing issue, some extolling the efforts thus far and others decrying the lack of effort. And whenever the Government changes hands, the criticisms flow in the opposite direction.

The net scores are political points A+, but inner-city improvement F. Either way you look at it, there remain far too many disenfranchised and unstructured (informal) communities teeming with citizens living in squalor and under the thumb of ‘alternative governance’, veritable breeding grounds for vile and disruptive criminality. This is the 21st century, but there is precious little inner-city improvement to show for all the talk that has spanned decades.

Human capital consists of people’s health (state of physical, mental, and social well-being), knowledge (through education), skills (through training), and motivation (the reason for people’s actions, their willingness and goals as determined by their desires, social influence, culture, society, and lifestyle).

From a microeconomic standpoint, investment in human capital will improve and uplift employees so that they can be stimulated to become innovative and to think creatively. They will therefore improve the company’s assets. From a macroeconomic standpoint, investing in human capital will reduce crime, increase productivity, and bring about the extensive economic growth of a country.

In spite of all the taxes that we pay, governments can’t do what needs to be done alone. They will need to directly or indirectly partner with private concerns. However, first, they must gain the trust of potential partners by avoiding the politicising of national issues and stamping out corruption, which wastes millions of tax dollars annually.

This Government is hoping to literally pave the way for a win in the next general election, but it also needs to show the nation that it is improving the lives of our inner-city dwellers.

Garth A. Rattray is a medical doctor with a family practice. Email feedback to columns@gleanerjm.com and garthrattray@gmail.com.