Dear Editor,
The Bank of Jamaica's latest economic report has indicated Jamaica's fifth quarter of contraction and, based on STATIN's research, unemployment is now up to 16.3%. While there is renewed focus on creating jobs and growth, insufficient attention is being paid to structural reforms. The Government is expected to create an environment which is conducive to investment, while private sector employers create jobs when there is an incentive to do so. In order to create sustainable jobs and long-term growth, structural reform must be a priority.
Furthermore, the view that emergency job programmes are good, because they provide short-term employment, thereby boosting consumer spending is fallacious. Investment in capital equipment and research drives growth.
Even if Jamaica's economic profile could attract a stimulus, very little would be achieved if reforms are avoided, Japan is a perfect example of this. Japan has received more than 10 stimulus packages, but the economy has not been rejuvenated, due to the absence of structural reforms.
Although agriculture in Japan is heavily subsidised, and the price of rice is supported by an 800% tariff, the sector is still uncompetitive. Jamaicans who believe in banning imported products, or placing tariffs on them, could learn from Japan.
It is an exercise in futility to speak about creating jobs and growth, without mentioning the need to reform the economy. Any country that is serious about courting foreign investors, will have a proper insolvency Act. New Zealand ranks number one on the World Bank's Doing Business Report, in terms of investor protection, Jamaica ranks 82, obviously the former will have an environement more conducive to investment.
There is also talk in some quarters about innovation, but innovation and entrepreneurship can only flourish when strong intellectual property laws exist.
Robust growth only occurs in an economy when the foundation is in place, and the present Administration has shown no commitment to reform. Everyone seems to be interested in growing the economy without reforming it, and if we continue on this path we should expect things to get worse, not better.
Lipton Matthews
lo_matthews@yahoo.com
It's about reform, not jobs
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The Bank of Jamaica's latest economic report has indicated Jamaica's fifth quarter of contraction and, based on STATIN's research, unemployment is now up to 16.3%. While there is renewed focus on creating jobs and growth, insufficient attention is being paid to structural reforms. The Government is expected to create an environment which is conducive to investment, while private sector employers create jobs when there is an incentive to do so. In order to create sustainable jobs and long-term growth, structural reform must be a priority.
Furthermore, the view that emergency job programmes are good, because they provide short-term employment, thereby boosting consumer spending is fallacious. Investment in capital equipment and research drives growth.
Even if Jamaica's economic profile could attract a stimulus, very little would be achieved if reforms are avoided, Japan is a perfect example of this. Japan has received more than 10 stimulus packages, but the economy has not been rejuvenated, due to the absence of structural reforms.
Although agriculture in Japan is heavily subsidised, and the price of rice is supported by an 800% tariff, the sector is still uncompetitive. Jamaicans who believe in banning imported products, or placing tariffs on them, could learn from Japan.
It is an exercise in futility to speak about creating jobs and growth, without mentioning the need to reform the economy. Any country that is serious about courting foreign investors, will have a proper insolvency Act. New Zealand ranks number one on the World Bank's Doing Business Report, in terms of investor protection, Jamaica ranks 82, obviously the former will have an environement more conducive to investment.
There is also talk in some quarters about innovation, but innovation and entrepreneurship can only flourish when strong intellectual property laws exist.
Robust growth only occurs in an economy when the foundation is in place, and the present Administration has shown no commitment to reform. Everyone seems to be interested in growing the economy without reforming it, and if we continue on this path we should expect things to get worse, not better.
Lipton Matthews
lo_matthews@yahoo.com
It's about reform, not jobs
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