Happy Independence Day, Jamaica! As we celebrate the 53rd anniversary of the date when the British flag was lowered for the last time and replaced with our iconic black, green and gold standard, it is an ideal time to reflect on what it means to be an independent nation.

When we made the bold step towards self-governance, there must have been an expectation that we would be able to manage our own affairs and lift our country to new heights. Half-a-century later, can we report that we have been successful in doing what it takes to be truly independent?

We may have fulfilled one definition of independence — “not subject to another’s authority or jurisdiction” — but there are other characteristics that we have not yet acquired. An autonomous entity should not be dependent on others for its existence, or have to rely on others for support.

Dependence is entrenched

Unfortunately, Jamaica is heavily dependent on several outside forces for our survival. A lot of the food we eat and products we use are procured from overseas. When I was a child, there were many local brands that met our needs; back then, it was unusual to see foreign items on sale.

Much of the purchasing power of our people and our nation is channelled overseas. Over the years, as our tastes have become acclimatised to foreign goods and our local industries have dwindled, we have regressed to the precarious position where we cannot manage without external supplies.

Today, we are also dependent on outside sources to provide the money we require to survive. We rely on international lending agencies that continually give us a financial lifeline to prevent us from drowning in the turbulent economic waters. Financial freedom has definitely eluded us in Jamaica.

Jamaica personified

If we compare Jamaica to an individual, we can see that this person is in deep financial woes. She doesn’t earn enough revenue to pay her bills, so she relies heavily on borrowing. Her indebtedness increases every year, her savings are non-existent and her ability to attain her goals is in jeopardy.

As I have said many times before, it is impossible to solve a budget deficit by borrowing, as it will only sink you deeper in the mire of debt. Jamaica’s loans only give her a short-term respite to deal with her expenses, but eventually they cost her much more to repay the interest and principal.

While her forebears enjoyed some amount of financial security, Jamaica’s children face a dim future. Since she is not able to put aside any funds to build a nest egg, she cannot help them to enjoy a better life. When she dies, her legacy to her descendants will be a crippling debt burden.

Advice to Jamaica

If Jamaica were really a person, I would suggest that she apply more caution with her spending, as she needs to ensure that her funds will be put to the best possible use. She needs to stop making frivolous, impulsive financial decisions and concentrate on taking care of her children.

However, she cannot focus solely on paying her bills, as some of her revenue must be redirected into projects that can generate more money. Cutting back on costs may stem her current spending overruns, but it won’t allow her to progress and create the lifestyle that her children deserve.

I would advise her to become innovative in earning her way out of debt and into financial security. Since she is strapped for cash to invest in income-generating projects, she will need to look at opportunities to use her available resources to make money without expending too much capital.

Produce more, earn more

I usually recommend that the easiest way to immediately increase your income is to do more of what you are already doing to earn. For example, if you are employed as an accountant, you can prepare the books for a few small business customers in your free time to boost your earnings.

Similarly for Jamaica, I suggest that she stop procrastinating and get serious about expanding her income creation options. She is so popular with other persons around the world that she should have little problems in reaching out to them and showcasing her excellent products and services.

To do this, she must remove all the impediments to production that now impede her progress. She has to assess her business processes and get rid of the bureaucracy that prevents her from making money. She must use international best practices to create a lean, mean earning machine.

Towards true independence

Jamaica also needs to look inwards and realise that she has all the resources in-house to succeed. She doesn’t need to spend excessively on foreign consultants to help her, as there are local providers with the right solutions to her problems. Start valuing what you have at home, Jamaica.

To succeed, everyone needs to join with Jamaica in her quest to become truly independent. Let’s support her by using our spending dollars locally wherever possible. Let’s be financially prudent and save more. Let’s look for opportunities to showcase Brand Jamaica and boost our earnings.

Cherryl is a money coach, business mentor, and founder of Financially S.M.A.R.T. Services. Her upcoming book, “The 3 Ms of Money” will reveal all the secrets she learned about financial success. Get more advice on money and business matters at www.financiallysmartadvice.com and www.entrepreneursinjamaica.com. Email comments to cherryl@financiallysmartonline.com.