For years I have been stating that Jamaica stands out as one of the slowest-growing economies in the Latin America and Caribbean region, grappling with stubbornly low productivity growth. This stagnation stems from a weak business environment, a lack of innovation, and significant human capital constraints. The economy is insufficiently diversified and heavily reliant on low-productivity services that primarily cater to the tourism sector.

Recently, the World Bank agreed.

Jamaica is at a critical crossroads and we must act decisively to secure our future. It is time to move beyond mere resilience and adopt a bold vision for socio-economic development, one that demands a foreign policy firmly centred on economic growth and international trade, particularly in key sectors like agriculture, tourism, and technology.

As policymakers, our foremost duty is to cultivate an economic environment that uplifts every Jamaican, boosts per capita income, and creates opportunities for all citizens, particularly the youth and vulnerable populations.

Over the past 14 years we have observed a concerning stagnation in wealth distribution characterised by widening income disparities and limited social mobility. This necessitates urgent action to instil a renewed belief in progress and opportunity across our communities.

Our aim is not just to elevate grass roots communities to the middle class, but to empower those already in the middle class to achieve international wealth during this term. Realising this transformation necessitates more than rhetoric; we require a clear, structured plan that is specific, measurable, actionable, relevant, and time-bound — often referred to as SMART goals — to effectively capitalise on the economic opportunities before us.

Although our national trade policy has been framed as export-driven — this was notably emphasized in the 2019 National Trade Policy — it has not translated into tangible growth and development over the years.

We must abandon the protectionist mindset that restricts us to producing mere samples for export. Currently, our imports consistently dwarf our exports, with alarming figures indicating a ratio of 4:1. Despite our ambitious import substitution policy aimed at reducing dependency on foreign goods, we remain significantly distant from establishing a fully export-driven economy or enhancing our manufacturing outcomes.

An illustrative example is our rum industry: Despite Jamaica having a rich history of rum production since 1749, it remains our primary manufacturing export nearly 300 years later, accounting for a staggering 79 per cent of our total manufacturing export earnings in 2019 and continues to hold that dominant position.

The primary industries driving our domestic export earnings — rum, alumina and bauxite, sugar, bananas, coffee, and mining — have stagnated for decades, resulting in lost opportunities for innovation and diversification. Despite the existence of organisations like Jamaica Promotions Corporation (Jampro), the Economic Growth Council, and various governmental ministries focused on economic development, we have yet to achieve the transformative results needed for national growth and extensive job creation.

A critical analysis of 2024 data starkly highlights Jamaica’s significant underperformance in exports of goods and services per capita compared to its regional peers. For example, Costa Rica’s gross domestic product (GDP) for 2024 is projected at approximately US$95.15 billion in current prices and US$177 billion in purchasing power parity (PPP) terms. This results in a remarkable GDP per capita of US$17,860.41, supported by a population of 5.1 million.

In contrast, Jamaica’s GDP for the same year is estimated at just US$20.586 billion nominal and US$33.775 billion in PPP terms. This translates to a GDP per capita of only US$7,487 based on a population of 2.85 million. Consequently, Costa Rica’s wealth per person is nearly two and a half times greater than that of Jamaica, underscoring a stark economic disparity that demands urgent attention and the need for targeted action and a competitive strategy.

In today’s globalised economy, Jamaica must carve out specialised niche markets to establish its unique identity. True wealth creation hinges on diverse exports in both goods and services, encompassing areas such as digital technologies, creative industries, and agro-processing. To ensure a prosperous future for our three million citizens, we must broaden our horizons and reach beyond our localised market, which is simply too limited to meet our economic needs.

Our political incrementalism have ceded small, gradual changes to existing policies.

Just as speed to market is crucial in the business sector, so too is the promptness of policy and decision-making in politics and government. As the world grapples with the lasting impact of the MAGA – America First Administration, it becomes increasingly clear that we are unaccustomed to this accelerated pace in political change. An intriguing lesson emerges: How quickly and effectively policy can be implemented and expedited under strong and decisive leadership.

Traditionally, in Jamaica and similar political environments, the process for enacting change has been lengthy and convoluted. It typically involves multiple rounds of public consultations, followed by deliberations in oversight committees, and the drafting of various discussion papers — often colour-coded, including red, yellow, purple, and green papers. This protracted process can stretch over several legislative sessions and even across different administrations, often culminating in a ceremonial church service to commemorate the conclusion of the legislative journey.

However, as the global landscape shifts and evolves, we must adapt and become more agile in our approach to governance. The need for timely and effective responses to emerging challenges is more pressing than ever. If we fail to prepare for these rapid changes, the consequences could be severe, transforming the pleas for help into desperate cries. In this new era, the difference between those who will succeed and those who will be left behind will depend on our ability to keep pace with the unfolding realities of our time.

It is imperative, especially now, that we implement a transformative plan to reshape Jamaica’s economy into a formidable, internationally competitive, value-added export powerhouse. This demands a relentless focus on products and services whereby we can develop a global competitive advantage, managing all inputs along our value chain — from sustainable sourcing of raw materials to the production of high-quality finished goods. If we fail to take these crucial steps we risk becoming mere imitators in the global marketplace, without reaping the flattery, royalties, or economic rewards that rightfully belong to us.

Together, let’s commit to this essential transformation for a brighter, more prosperous future for Jamaica.

This year we head to the polls to elect a new Administration that will shape the future of our economy and governance. If we are genuinely committed achieving real economic growth it is vital to prioritise competence over mere political popularity.

We must select representatives for Parliament and agency boards based on their courage, qualifications, and experience rather than their loyalty as long-standing party activists or private sector interests. By doing so, we can ensure that decision-makers are equipped with the skills and knowledge necessary to address the complex challenges our society faces, ultimately leading to more effective and accountable governance.

It’s time to shift from the slow pace of political incrementalism to a bold, proactive dynamism that drives meaningful change.

Lisa Hanna is Member of Parliament for St Ann South Eastern, People’s National Party spokesperson on foreign affairs and foreign trade, and a former Cabinet member.

PULL QUOTE

The primary industries driving our domestic export earnings — rum, alumina and bauxite, sugar, bananas, coffee, and mining — have stagnated for decades, resulting in lost opportunities for innovation and diversification. Despite the existence of organisations like Jamaica Promotions Corporation (Jampro), the Economic Growth Council, and various governmental ministries focused on economic development, we have yet to achieve the transformative results needed for national growth and extensive job creation