Consensus on economic priorities emerging

Wednesday, December 21, 2011

We believe that a consensus is emerging in the country — particularly among the political parties, the private sector and the trade unions — that the economic policy options open to Jamaica in the immediate future are few and very limited.

The political great debate between Mr Audley Shaw of the Jamaica Labour Party (JLP) and Dr Peter Phillips of the People's National Party (PNP) revealed a broad common understanding of the economic situation in which Jamaica finds itself. They identified similar goals, eg economic growth, job creation and a shared view of economic policy inevitability, such as an agreement with the International Monetary Fund (IMF).

The direction of economic policy and the economic policy priorities for a new government appear to be consonant with many of the pronouncements from the spokespersons and leaders of the private sector. The three big points of consensus on economic policy are all points that our editorials have been calling for over a long period.

Employment creation is the top priority for a desired outcome from economic policy because the beginning and end/goal of policy is the well-being of the majority of the people. In an editorial in March 2009, we pointed out that employment is a necessity for human self-actualisation. Without the productive activity of work, personhood cannot be realised. We made a plea that as a nation we have a civic duty to save every job as far as is humanly possible and to create as many employment opportunities.

We reminded that every employee is both a worker and a consumer and hence every job lost is a customer lost. On December 4, 2011, we declared that employment must be the priority of the next Government.

The second priority is to stop the excessive borrowing and institute proper debt management policy. This has been a crusade of our editorials in which we spoke of the dangers of excessive borrowing. On November 27, 2011, we stated that the newly elected Government will have to make very difficult political decisions which successive administrations have postponed. These decisions centre on the fact that the nation has been living beyond its means through local and overseas borrowing.

Third, economic growth and debt servicing require Jamaica to earn more foreign exchange and this means that the country has to increase its exports, as Mr Gordon 'Butch' Stewart said last week. In a recent editorial we called for the formulation and implementation of an export development strategy. We also stated that the export drive should be accompanied by measures to reduce imports, especially of products that can be produced here. Import substitution saves foreign exchange, with the best and easiest possibilities being in domestic food production.

We feel gratified that our editorials have helped to inform and galvanise public debate on economic policy, and we are pleased to have contributed to what we discern is an emerging consensus on economic policy priorities. It is the responsibility of all citizens to inform themselves on economic issues and to contribute to the national dialogue on economic policy in whatever way possible.

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Consensus on economic priorities emerging