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The lose-lose political game

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Dear Editor,

Politicians are vilified for every perceived wrong, but the reality is that politics is a thankless profession. There is a great disconnect between what any system of governance can deliver and the demands of the citizenry. Usually, citizens expect politicians to be the provider of all services, therefore astute politicians will carefully present themselves as the problem-solvers of every ailment affecting the country, even those which are better rectified by the market.

It's quite unfortunate, but too many of us live in an alternative universe, we want a pro-business environment to be created, but we are not willing to support less regulations and a smaller government. However, when the debt stock increases and investors migrate we blame politicians for not having political will to execute reforms which we would vote against.

Government must provide essential services; no one is doubting that, but operating enterprises and financing social programmes are not the functions of government, and if we want social programmes then clearly tax rates will increase, because every service has to be provided at a cost.

At least one former politician, Christopher Tufton, was rather cogent in his analysis of Jamaica's economy at a recent media forum: "Jamaica needs a dose of pragmatism and leadership...we need to facilitate ready projects within three months. Government needs to say, where a private investor has an investment proposal and the capacity and willingness to finance that investment, Cabinet will give priority to ensure affirmation of investment... we need to fast-track divesting non-core activities. The Government cannot be all things to all men," he said.

Any administration which embarked on these reforms, especially privatisation, will be accused of 'selling out' Jamaica by misguided statists who are yet to understand the market. Big, bloated governments only harm the economy and the evidence is overwhelming. According to a study conducted by the European Central Bank, which reviewed 108 countries over a 38-year period, "government consumption is consistently detrimental to output growth, irrespective of the country sample considered (developed and emerging economies)".

Many persons claim that the IMF programme will result in a more efficient government, but to real free marketers it's quite tepid. No politician is brave enough to create a less state-centric economy. And if such a politician existed, he wouldn't last long. Since we refuse to change our views on economics then we should expect the years of slow growth and high debt to continue. Unfortunately the Opposition is not preferred by the masses, so we are trapped with the PNP for 18.5 years again.

Lipton Matthews

lo_matthews@yahoo.com

The lose-lose political game

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