Dear Editor,
The director of the Planning Institute of Jamaica informs us that a stimulus is not under consideration as there is no deficiency in demand and it is not affordable.
The more realistic Economic Programme Oversight Committe deputy chair remarked that the primary surplus that exists due to the expenditure cutbacks has to be used for debt repayment; consequently none is left for a needed stimulus.
Implicit in his statement is the acknowledgement that there is a need for a stimulus, eschewing argument that the unemployment, inflation, currency depreciation, and income and layoff situation need a relief. It thereby rejects his esteemed colleague's statement that there is no deficiency in demand presumable because people are consuming multiple imported goods in our open economy.
This has contributed to the fact that the number of people sleeping downtown in front of the accountant general and courts offices with a few mongrel dogs beside them is growing; many others have joined the ranks of bus loader men; there is an increase in the number of beggars and too many imported fake items are passed off as consumer products.
There is definitely the need for a growth strategy and for stimulus to be unloaded on the system. This cannot come from quantitative easing or from fiscal reserves as there is none of the latter. The strategy needs a stimulus fund. The fund must be financed from existing resources and not by taxation though -- a good amount of income redistribution is necessary. Austerity, though needed, cannot get us out of the rut.
A clear recognition of the issues must be done; unemployment and poverty have increased while income and consumer capacity have decreased. The Government must mobilise and sources funding from the various international funds, as well as he Jamaica Social Investment Fund, National Housing Trust, CHASE Fund, EU poverty reduction fund, Tourism Enhancement Fund, etc. These resources in combination with the large private banking idle resources are needed to finance innovative and carefully planned investment in the area of import substitution and exports, especially in the fields of agriculture and food processing.
The approach must be to focus on sound projects, especially in manufacturing, giving priority to the sector, in spite of what the university lecturer says.
While funding is necessary success can only come if investment funds are provided for technologically competitive, economically sound and innovative projects, generating quality jobs.
Martin Afflick
martinafflick@yahoo.com
Growth strategy needed to dig us out of the rut
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The director of the Planning Institute of Jamaica informs us that a stimulus is not under consideration as there is no deficiency in demand and it is not affordable.
The more realistic Economic Programme Oversight Committe deputy chair remarked that the primary surplus that exists due to the expenditure cutbacks has to be used for debt repayment; consequently none is left for a needed stimulus.
Implicit in his statement is the acknowledgement that there is a need for a stimulus, eschewing argument that the unemployment, inflation, currency depreciation, and income and layoff situation need a relief. It thereby rejects his esteemed colleague's statement that there is no deficiency in demand presumable because people are consuming multiple imported goods in our open economy.
This has contributed to the fact that the number of people sleeping downtown in front of the accountant general and courts offices with a few mongrel dogs beside them is growing; many others have joined the ranks of bus loader men; there is an increase in the number of beggars and too many imported fake items are passed off as consumer products.
There is definitely the need for a growth strategy and for stimulus to be unloaded on the system. This cannot come from quantitative easing or from fiscal reserves as there is none of the latter. The strategy needs a stimulus fund. The fund must be financed from existing resources and not by taxation though -- a good amount of income redistribution is necessary. Austerity, though needed, cannot get us out of the rut.
A clear recognition of the issues must be done; unemployment and poverty have increased while income and consumer capacity have decreased. The Government must mobilise and sources funding from the various international funds, as well as he Jamaica Social Investment Fund, National Housing Trust, CHASE Fund, EU poverty reduction fund, Tourism Enhancement Fund, etc. These resources in combination with the large private banking idle resources are needed to finance innovative and carefully planned investment in the area of import substitution and exports, especially in the fields of agriculture and food processing.
The approach must be to focus on sound projects, especially in manufacturing, giving priority to the sector, in spite of what the university lecturer says.
While funding is necessary success can only come if investment funds are provided for technologically competitive, economically sound and innovative projects, generating quality jobs.
Martin Afflick
martinafflick@yahoo.com
Growth strategy needed to dig us out of the rut
-->