Let's focus on big industries

Friday, February 10, 2012

Dear Editor,

Many years ago, a University of Cambridge professor came to Jamaica and explained why the failure rate in A' Level Economics was the highest.

My late headmaster, Professor EB Hazelwood said Economics is not a subject because it deals with too much uncertainties and so it was not taught in his school (St Simons College). I agree, because as a social science it deals with uncertainties unlike exact sciences.

One thing is certain in the sphere of Economics is the trade cycle. The recession we have been experiencing is just a phase of that cycle which has already moved to another phase of depression until eventually, other things remaining equal, we will return to prosperity.

All this is consistent with, and obedience to the natural laws that change is inevitable. Einstein's theory of relativity deals exhaustively with this and says, for example, a change in time will determine whether or not our planet continues to exist. Other scientists have proven that change will bring about the extinction of the sun and the world with it.

Recession brings with it a contraction in demand and price and opens a wealth of opportunity for investors who are prepared to invest for the long term.

Speaking of investors, Jamaica, which was once the richest colony in the British Empire, was recently reported by experts to be one of the best places on earth to invest, and so we expect massive inflow of foreign investments to stimulate investment and export.

In the context of investment for export, we could start with expanding tourism, which is really supposed to be an invisible export industry. We must, as far as practicable, be value-added exporters and focus less on earth-scratching industries and move to big industries such as motor vehicle and food.

GraceKennedy is taking the lead in the latter at present as it has announced plans to operate on three continents.

Incidentally, the marginal man, who is supposed to fuel production, is expending more of our limited resources on phone cards than on food, increasing demand for fuel and denying the productive sector of capital.

Having said all the above, our main goal must be to increase employment of our people as is the focus of Sister P and all our maximum leaders before her, and not the balancing of our budget. We must optimise the use of all possible resources and pay our debts promptly.

I think we can achieve all these, because Usain Bolt is just a sample of what we are capable of. The US Embassy and the Canadian High Commission have confirmed this by opening their doors very wide to our people in their national interest and I could go on to the part Jamaicans play in the reconstruction of Britain after the last World War, etcetera.

Owen S Crosbie

3 Hotel Street

Mandeville

oss@cwjamaica.com