Conditions for economic growth need to be established

Michael Bernard, director, Jamaica Freight & Shipping Company Limited

With Jamaica's projected growth for 2014 being 1.2 per cent, the economic outlook is going to be challenging, at best.

While Jamaica has passed three of the International Monetary Fund-prescribed tests, the conditions for the country's growth still have not been established.

With regard to trade, the depreciation of the Jamaican dollar, while appearing attractive for exporters, is negatively affecting importers. Added to this, is the increased duties and fees implemented by Jamaica Customs, which affects final costs of products to consumers. It was reported recently that 35 per cent of Customs' revenue intake goes to support the Government's Budget.

foreign exchange

The scarcity of foreign exchange to meet timely purchase commitments of manufacturers, for raw materials and commercial goods, for the distributive trade, is another factor that will negatively impact our economy. To be fair, the Bank of Jamaica has been busy mopping up liquidity in the system, while at the same time ensuring our net international reserve does not fall below the targeted figure and, at the same time, allowing the exchange rate to maintain its controlled slide.

The highly acclaimed Logistics Hub, while necessary and important to our economic survival, it cannot be seen as a panacea. At best, the impact will not be felt before 2015/2016. We must ensure that all the work necessary is completed in a timely manner. I am convinced that we will be ready. We must also view the delay in completion of the Panama Canal expansion as a blessing for our readiness.

The Caribbean Maritime Institute, HEART Trust NTA, Shipping Association of Jamaica and the Port Authority of Jamaica are already fast-tracking the training of workers, which is the lynchpin to a successful operating hub. The country needs additional projects that can be brought on stream quickly that can generate employment; for example, setting up cargo-relay stations and courting several large global-distribution entities.

I believe that the German auto school has a role to play in our success as a hub and, as such, it should be upgraded, expanded and students trained to service/repair heavy machineries and the modern vehicles now in production.

bureaucracy Government

The greatest impediment to our success, as I see it, is the urgent need to remove bureaucracy from Government entities, to become facilitators rather than gatekeepers. This will add to the ease of doing business in Jamaica. Some work has been done, but much more needs to be done, and very quickly.

Basic infrastructure of our roads, traffic flow, water-supply systems, and high cost of electricity need to be addressed urgently.

Marcus Garvey Drive comes readily to mind. It is in need of a pedestrian-crossing bridge, strategically placed, to avoid the further loss of lives. To date, three lives have been tragically lost and the impact on families and the community has been immeasurable.

If these systems and strategies are put in place, Jamaica will have hope for the future.