Completing the Jamaican economic growth agenda
We congratulate the Government for the formation of the Economic Growth Council (EGC). We also welcome the publication of its report. This note is a response to the EGC’s invitation for comments and observations. The report is very timely and provides a platform on which to develop a focused and comprehensive programme that, if adequately resourced, should deliver the inclusive growth and social well-being that is the right of every Jamaican citizen.
An important observation is the absence of a considered treatment of the vital importance of scientific and technological knowledge for socio-economic progress. The EGC report should have explicitly recognised that without a robust science and technology (S&T) infrastructure the country will not be able to comfortably and effectively compete in a rapidly changing global knowledge environment. Countries with strong science and technology communities have proven to be resilient to natural and economic shocks, deliver strong growth and development, as well as being capable of identifying new pathways to socio-economic progress. We therefore suggest that two factors — inclusive growth and innovation — demand more critical attention and should be fully addressed as the council gets into its stride.
Inclusive growth
The report carefully outlines what economic growth means within the Jamaican context and highlights the factors that inhibit sustained growth. However, it does not make a distinction between economic growth and socio-economic development. Growth does not automatically translate into inclusive social well-being, as it does not necessarily offer the latitude for all citizens to exploit and benefit from their talents and realise their potential. Growth is necessary, but must be inclusive, adaptable and sustainable to truly meet national objectives of equity and hope.
Inclusive growth is an essential prerequisite for broad-based socio-economic development. Accordingly, we take issue with the notion that the informal sector is an impediment to economic growth, as we believe that this vital sector, if properly engaged, can become a major driver of creativity, innovation and economic dynamism.
The informal sector is the largest segment of our workforce, providing the means of survival and livelihoods for the majority of Jamaicans. This is where creativity abounds and, if paid adequate attention, can be harnessed to improve the quality of life of those trapped in poverty. We therefore need to upgrade the informal sector by enabling access to the required legal, financial, social, and technological tools for its members to become full participants in formal socio-economic activities. Given the proper attention, the talents, skills and savvy that reside in this sector can be effectively incorporated into the ensuing plans and programmes of the council.
Implicit in these considerations is the imperative to eradicate poverty. Many benefits will accrue from aggressively tackling poverty, such as overall increased production and productivity, as well as improved social order and discipline, detailed as follows:
* Hope and opportunity positively impacting mental well-being;
* Job creation and the possibility for higher-paying jobs through continued education and training;
* Decrease in violence, resulting in lower incarceration rates and less burden on the State, as well as increased personal safety;
* Decrease in antisocial behaviour and the attendant costs to society, inter alia, damage to infrastructure, public health and transportation;
* Broaden entrepreneurship and diversification of the economy; and
* Ability to absorb those from uncompetitive and marginalised industries.
Eradicating poverty directly and positively will impact the financial, environmental and social order. We should remind ourselves that the cost of poverty to society is high: conservatively over 10 per cent of gross domestic product.
Knowledge and the formal sector
Our formal sector has survived largely on the conclusions of imported scientific and technological research, skills and insights of foreign knowledge workers, along with the innate ingenuity of our local professionals. However, not all local problems can readily be solved by foreign expertise unfamiliar with our environment and culture. This is especially so in an era of rapid climate change and environmental degradation. Agriculture and food security, for example, require site-specific information to arrive at appropriate solutions.
The formal sector, in order to remain relevant and competitive, must invest in local research and experimental development to keep abreast of local conditions and needs. Without this type of strategic investment in S&T, the gradual decline in aspects of production, productivity and services will remain barriers to growth and development.
It is not sufficient to simply invest in some aspects of information communication technologies to the relative exclusion of other relevant, new and emerging scientific methods, such as bio- and nanotechnologies, robotics, and the management of information including metadata and the Internet of Things. The private sector’s participation in local S&T development and implementation strategies must therefore be drastically improved and included in these plans.
The formal sector must begin to utilise more knowledge workers and enable them to source information, learn from it, build on it, and create reservoirs of institutional knowledge and memory. These capabilities allow more innovation and the resolution of chronic and emerging problems.
Innovation for growth
No economic system has been able to survive, much less compete, without innovation or the use of knowledge to identify and solve developmental issues. Innovation is not a tool like science or technology, but is the way these tools are effectively used. To expand and deepen the ability to innovate, a country must be able to follow and exploit the potential of global S&T knowledge and incorporate it into its own system for growth and development.
The making of the developed countries, big and small, was directly attributable to technological advancements as a consequence of scientific research and development, which provided an enabling environment for innovation to blossom. Scientific research and development provide a powerful set of instruments to underpin technological development. If this principle is not actively embraced in our growth agenda, the country will pay a heavy price as development will be stagnated. Strategic investments in S&T will enable us to achieve our goals and aspirations. Underinvestment will prolong our frustration and inability to successfully compete both locally and abroad.
To have an impactful S&T system depends not only on the presence of scientific bodies but how they are aggregated to support the growth agenda. It is not sufficient to mention human resource development without considering the infrastructure needed to ensure that capabilities developed are effectively harnessed. Jamaica has over 40 S&T bodies, but the research that is being undertaken by them appears to be in decline. Exploiting modern and emerging technologies will require relevant and properly resourced research units. Also, there must be an implementing and executing infrastructure to deploy effectively the knowledge generated.
An active research and development system is needed to enable innovation to spur growth. In this regard, the National Commission on Science and Technology (NCST) must be faithful to its mandate as set out in law: Clause 4.1 “The principal object of the commission shall be to operate as the umbrella organisation responsible for fostering and advancing the national policy and strategy for science and technology in Jamaica.” (National Commission on Science and Technology Act, 2007)
A cohesive S&T system is critical to innovation and is needed to sustain and expand our ability to respond to the demands of the productive and services sectors. We should remember that in the early days of the NCST, the private sector was a significant partner in the development and execution of its mandate. So much so, the private sector was the major partner in the creation of, and chaired, the accompanying National Foundation on Science and Technology. This relationship has subsequently eroded and must be reinvigorated to enable the private sector to be directly involved in the decision-making for national S&T development. Without embedding S&T into the growth agenda to drive innovation, we will fall short of achieving our goal of sustained economic growth and social well-being for all. This is made easier by the fact that our prime minister is directly responsible for both the EGC and the NCST.
Dr Arnoldo K Ventura (akhaleelventura@gmail.com) is a student of science and technology for development for over 50 years and former special adviser to prime ministers of Jamaica.
Dr Sandra M E Wint (smewint@gmail.com) is a science and technology policy specialist interested in building capacity for sustainable development.