Jamaica must act now! Economic crisis looms

The Solutions

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The first thing that must be done is to reroute the US$750 million set aside as a safety net for the financial institutions from the Government of Jamaica Debt Exchange Programme (JDX programme). This US$750 million needs to be used for budgetary support to cover the US$117 million owed to public sector workers, and to maintain critical services and employment. The proposed rationaliztion of the public sector must be done with the objective of improving efficiency, and this must not be delayed.

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This should be coupled with maintaining duty waivers for manufacturing, small-business development, and alternative energy schemes only, and increasing incentives for the agro-industry and foreign exchange-earning sectors.

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Increase taxes on luxury goods and reducing them on basic foods and goods.

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Encourage the banking sector to increase credit directed to small-business development and non-traditional areas of economic activity.

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Renegotiate the Glencore/ Jamalco agreement for the forward purchase of bauxite.

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Renegotiate the Jamaica Public Service Company (JPSCO) agreement to allow net metering and other changes. Make loan funds available to small businesses and export manufacturers to install alternative energy systems. At the same time, put in special rates for the lowest-income families.

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Immediate realignment and development of a new international economic policy with Africa, the Middle and Far East, Brazil, India, China, Russia, Malaysia, Singapore, Canada and the Scandinavian countries.

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This would also mean completing the renegotiation of the IMF agreement on terms more favourable to Jamaica. This was the original objective of the programme that was not adhered to.

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There also needs to be a focus on attracting investment by Jamaicans locally and in the diaspora in projects which will generate significant employment and foreign exchange earnings – in the ICT Centre in Portmore; development of the historic triangle of Port Royal, downtown Kingston and Spanish Town; the expansion of the logistics capabilities linked to the Port of Kingston to establish Jamaica as a major distribution hub for the Americas; in carbon trading and other new, green industries.

Once more, Jamaicans United For Sustainable Development extends its willingness to meet with the minister of finance and any other ministers to elaborate on these proposals and to help develop a formula for incorporating the society in the rebuilding of the economy and to create job opportunities for ourselves.

There is no greater priority at this time.

By Richard Crawford

Richard Crawford (pictured) is convenor for Jamaicans United for Sustainable Development.

Source: The Gleaner

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