Jamaica’s resilient response to Gilbert’s devastation
The following statement on the recovery programme following Hurricane Gilbert’s devastation of Jamaica on September 12, 1988, was delivered by me in Parliament on December 14 that year.
Most Jamaicans arriving home today unwittingly raise the same query to friends and relatives: “I thought there was a hurricane?”
The observation, of course, reflects the genuine bewilderment of those who arrive with the expectation of seeing wreckage and garbage strewn on the streets, shortage of food, darkness in homes, joblessness in factories and an air of hopelessness and despair.
That, indeed, was the picture of a shattered Jamaica after Hurricane Gilbert slammed ashore on September 12. The remarkable recovery which has taken place since then is such a tribute to the resilience and resourcefulness of the Jamaican people and our ability to manage our way out of crisis, that we must never ever doubt ourselves and our capacity to accomplish what we will.
There is no wreckage or garbage on the streets; they are clean again. There is no shortage of food; the shops are filled again.
There is no darkness in the homes; the lights are on again.
There is no joblessness in factories; people are at work again.
But underlying these indisputables, there is yet still much to be done in restoring shelter, repairing public buildings, rehabilitating farms, repairing roads and reviving tourism and industry.
As we set about these tasks, each with a determination to put his own corner back in shape, inevitably we question ourselves: will we ever be able to repair it all and to resume the course on which we were travelling before Gilbert blew many of our hopes away? This is the question I want to address tonight because no matter how well we do to repair things in our own corner, we still want to, and must know, what the bigger picture will look like again.
It is necessary to portray this bigger picture to refresh our minds on where we were before Gilbert entered our lives.
By some strange coincidence, on the Friday night before the fateful Monday on which Gilbert struck, I was the guest speaker at a dinner where I gave a progress report on how we were moving forward over the period to date. I could speak with confidence that we were well on track to achieving the targets we had set for the year:
Economic growth was in fact at five per cent, better than the four per cent we targeted; exports were better than projected; imports with adjustment for the bulk import of cars, were on target; investment was greater than expected; inflation was even lower than targeted; and employment was continuing to climb.
I could speak with confidence on the bright period of performance up to Gilbert because this was not the beginning of an upturn but the continuation of the positive upward movement of the economy since 1986; 1988, up to August, was simply repeating the healthy performance of the previous years.
The generally positive picture of economic performance up to August was altered on September 12 by the extensive damage to property, production and earnings resulting from Hurricane Gilbert, which could reach as high as J$10 billion or US$1.8 billion.
It was recognised from the very outset that although a substantial portion of the capital losses and earnings were covered by insurance, mostly re-insured overseas, the time required for reconstruction and repair would require exceptional support in the short run if we were not to be blown off course in reaching our future goals.
Hurricane Gilbert passed directly over Jamaica on September 12. It was classified as a Category 5 hurricane — the worst. The eye went ashore at Morant Bay and passed along the length of the island before exiting near Negril. The highest wind speed recorded at the airport was 132 miles per hour in Kingston. But while overland Gilbert went through a remarkable intensification period with barometric pressure falling from 28.49 inches to 25.28 inches, the lowest pressure ever recorded in the western hemisphere.
Indeed, wind speeds increased to 184 miles per hour, with gusts of nearly 200 miles per hour. Gilbert ranks as the most powerful hurricane in this century and we felt its full force.
Hurricane Gilbert meant that, in the short term, a programme had to be put in place to manage the emergency to prevent panic, restore the basics for day to day existence, provide food supply and shelter, deal with health preservation and ensure the maintenance of law and order. It meant as well, the rapid resumption of productive activities;
restoration of power and water, repair of the communication network, including roads.
When the hurricane passed, the future seemed bleak. It appeared that we were blown off course completely, that we would have to start from scratch once more along the difficult and, at times, discouraging road we were forced to take at the beginning of 1981. The prospects certainly looked grim.
It was recognised that if normal economic life could not be resumed early, our concerns about the welfare of the population would become even greater and the problems worse. Indeed, if the basis of improvement in economic well-being was destroyed, then, worse yet, the prospects envisaged for social well-being under the social well-being programme would be considerably worse.
In the process of organising the management of the building effort, it was clearly recognised that the strong and positive economic picture up to August was in jeopardy in maintaining the same results after Gilbert.
It was obvious that there would be the need for a significant rebuilding programme to replace destroyed and damaged capital stock.
It was recognised also that for the population as a whole, there was a need for massive programmes of food supplies to be provided with dispatch, and for utilities governing the basic necessities of life to be restored rapidly.
It was clear that all these urgencies and developments meant modification of the volume and pattern of trade, the level and composition of investment, foreign exchange requirements, the behaviour of prices and the role of Government.
The Government immediately sought assistance. The response has overwhelming. Over US$600 million was quickly pledged by friendly countries and institutions,
an enormous amount. In addition, there was a universal outpouring of voluntary contributions in cash and kind.
Within days of the hurricane, the IMF approved Jamaica’s application for a new stand-by arrangement — subject to the review of the original targets. The World Bank organised a donor countries group meeting on Jamaica in Berlin in the midst of the annual meeting of the World Bank and IMF — a first in their history.
The basic premise on which the various meetings which followed took decisions pertaining to assistance to Jamaica, was that Jamaica was the outstanding example of a developing country that had adopted, since the 1980s, and is implementing, policies which are correct, consistent and effective — policies which are designed to adjust the economy and to enhance its efficiency so that it can grow and develop. Jamaica’s success thus far was understood by all. The strength of the foundation of the economy we had created was emphasised by all.
Recently, the main donor countries and institutions examined with us our performance to date and the near term prospects to determine with us if we were being blown off-course. They concluded with us that in this financial year the economy would continue to grow but at a somewhat lower pace, around three per cent.
The growth for the rest of this financial year will be pushed mainly by domestic investment expenditure in infrastructure, building repairs, restoration and improvements in the utilities and communication systems. In the process, employment will expand significantly through the next four months and consumption will grow strongly. All that development will impact on our import levels which will expand significantly, on prices which will rise for a time before retreating and on the extent of our budgetary borrowings to meet immediate needs.
In substance, the assessment concluded that our valiant and successful efforts at recovery over the years would not be blown off-course by Gilbert, forcing us to painfully start from scratch again. The immediate results for this fiscal year would still be positive but somewhat downgraded in terms of our original targets which we were well on the way to achieving up to August.
Once again, our management strength and skills as a Government and resilience and resourcefulness as a people were put to the test and the results delivered:
As of today, three months after Gilbert:
1) Food, water and power supplies have been restored — on target;
2) Special short-term work projects have been implemented, putting 70,000 people to work;
3) Food stamps are being distributed to 848,000 persons;
4) 40 per cent of damaged acreage in banana and coffee have been rehabilitated and sugar production will start on schedule in this month. Fifty per cent – 90 per cent of new planting targets have been achieved in legumes, vegetables, condiments, fruits, plantains, and potatoes;
5) 88 per cent of hotel capacity has resumed business;
6) With few exceptions, manufacturing plants have been reopened;
7) Nearly 1,000 roads are under repairs;
8) Contracts have been awarded for the repair of 262 of the 516 infant, primary and all-age schools for which the Ministry of Education is responsible;
9) In all but eight of the 131 secondary educational institutions contracts for repairs are under way or in the process of negotiation;
10) Work is proceeding well in the repairs required at CAST, the UWI and other tertiary institutions;
11) 55 of the 149 health clinics and centres which were damaged are under repair;
12) All but eight of the 26 hospitals damaged are now being repaired and contracts for six of the eight are under negotiation;
13) $10 million have been provided to carry out repairs to basic schools;
14) To assist the final remaining areas which require some support to regain full stride a ministry paper has been tabled today advising that effective Friday, December 16, new rates of duty will apply to the importation of capital goods reducing the aggregate rate of customs and stamp duty to a maximum of 20 per cent where allowable under the Caricom regime, and to only the applicable rate of customs duty where such duties are above 20 per cent by removing any additional stamp duty.
This measure was to be introduced in the budget presentation next year but has been brought forward on the representation of the manufacturers and the hotel association to enable them to dispense with obsolete equipment by importing more efficient substitutes at this time to aid their modernisation programme. The 20 per cent aggregate rate on capital goods is the goal of the tariff reform programme which has now been achieved by these reliefs ahead of target. Last year the programme achieved the targeted level of a maximum aggregate rate of 10 per cent import duties on raw materials.
This is in addition to the provision of US$15 million or J$82.5 million of financing which I negotiated in Berlin to assist the manufacturing and tourism sectors in re-financing the purchase of new equipment and the provision of working capital at concessional rates of interest.
These very positive areas of performance are offset by the level of progress being made in other areas, notably:
1) The restoration of other public buildings such as post offices, police stations, court houses,and so on, in respect of which only 20 per cent of the damage has presently been restored;
2) The repair and rebuilding of homes, the damage in respect of which exceeds 50 per cent of total housing in the country. Building stamps valuing from $500 – $10,000 have been provided to assist low-income householders to repair or rebuild their homes but have been distributed only in two parishes to date — St Thomas and Portland — with Hanover and Clarendon to follow next, then St James and Trelawny shortly after.
We can put in perspective now more fully the programme of rebuilding, most of which has already been accomplished in the first three months with almost all the balance remaining to be completed in the next three months.
In that period, we will be taking further steps with an eye to minimising the damage in any future recurrence of such a catastrophe.
On a personal household level, a film is being completed to show householders how to put hurricane braces and straps on their repaired roofs and in rebuilding destroyed homes. This, along with other building features, will be shown islandwide by JIS and on JBC.
The burning issue of insurance cover is also being addressed, with assistance from the World Bank, studies are being carried out on both crop and credit insurance with the consultant already selected to carry out the crop insurance study. Government, too, is assessing the adequacy of its own level of insurance of public buildings.
These are being undertaken to ensure that in he event of any future disaster, much more coverage will be in place for investment and property so that we will be better able to manage any rebuilding required from our own resources. We must realise that the level of assistance achieved to deal with the extensive damage in this instance was obtained by a very special effort in very special circumstances. Wise leadership must learn from the past and plan for the future.
We can go forward confidently in the knowledge that we are still on course in our programme of development over the medium term in securing both the economic and social well-being which are our goals.
Indeed, with appropriate policies and effective management, next year, 1989/90, is projected to achieve one of the highest rates of economic growth,
exceeding 5.5 per cent with: price increases returning to the target level of seven per cent to eight per cent; export expansion growing by nearly 16 per cent; deficit levels reduced to the low targets of pre-Gilbert performance; and a continuation of the substantial increase in new employment which has been occurring over the past two to three years.
The future continues to hold the excitement of new opportunities and greater prospects for increased well-being if we maintain the policies that have taken us thus far. The medium term is well mapped in terms of both economic growth plans and social well-being programmes, and we are still on course to reach these goals which will mark the end of a decade-long struggle for recovery and rebuilding after the ravages of man-made and other disasters.
As we approach the end of this year, we have much to look back on, the remarkable contrast of a year of devastation and development. But we can look forward to the end of the year in the secure knowledge that what remains to be done can and will be done in the early part of the new year.
As the new year commences, we will assemble in the House of Representatives for the final meeting on January 4. On that occasion I will address the House advising on the date on which Parliament will be dissolved and setting out clearly the issues before the nation.
Gilbert has been the waking, living, breathing preoccupation of each of us since September 12. The it1pact of the worst hurricane of this century consumed our every thought. This must no longer continue . While there is unfinished business still at hand, the systems are in place to provide the implementation to completion over the next three to four months.
Government has managed the crisis by putting the systems of management in place; by providing the huge resources required to finance the programmes of recovery; by designating specific support and assistance to ensure the speedy return of electricity, water and food supplies; by providing 70,000 short-term jobs to displaced and dislocated persons; by issuing food stamps to over 800,000 persons; by programming the issue of building stamps to more than 50 per cent of the households in the country, the full total in need of repair and rebuilding; by reserving agricultural stamps for subsistence farmers and fishermen to be issued as appropriate to seasonal demand; by rebuilding schools, clinics, hospitals, and other public buildings; by providing tax incentives and funds for refinancing to deal with problems of agriculture, manufacturing, and tourism; and by carrying out the most extensive programme of repairs ever witnessed on some 1,000 roads.
In so doing, we have covered every sector and interest area possible, encouraging voluntary agencies to fill in the gaps in personal needs by offering generous duty relief on gifts from abroad to households and communities and by assisting the agencies with logistical support to clear and distribute relief goods.
All this represents the largest and mightiest
force of individuals, organisations, and government with
its agencies ever moulded into one massive team to cover the worst natural disaster in our history by a thoroughly comprehensive effort which is reaching into every affected corner of our nation and the lives of our people.
As I said at the beginning, we must never doubt our own ability to accomplish what we will under proper management, appropriate policies and in the spirit of calm and goodwill which has been established as the base of all we do.
But it is time now to bring down the curtain on the preoccupation with Gilbert, and get back to the wider and deeper considerations of our future. This now is our mission as we move to close the tragic chapter on our immediate past misfortune, and re-open the chapter on the programmes which will deal with the fortunes of our future.
Let us give thanks and praises to Almighty god for sparing lives and giving strength and guidance; to good friends everywhere across the world — countries of goodwill, agencies of support, and people of kind hearts, Jamaican nationals and others who rushed to assist us; to our own people and institutions who poured their efforts into the huge melting pot which produced the national recipe for successful recovery.
As we go on to finish the job which is firmly on a path to completion, let us, in the spirit of Christmas, give thanks and praises for our nation, and may God bless each and every one with the spirit of Christmas.