Dear Editor,

The recent caution by Dr Damien King about the dangers of oil is timely. His concern about the resource curse raises a question we must confront honestly: Are our institutions ready to manage sudden wealth responsibly?

But warnings alone are not policy. If Jamaica is serious, the response must be clear, actionable, and immediate — before any well is drilled.

First, Parliament should establish a Sovereign Wealth Fund by law, with strict rules on saving, spending, and public reporting. A portion of all future oil revenues must be ring-fenced for long-term national development — education, infrastructure, and debt reduction — not short-term political gain.

Second, Jamaica must adopt a transparent revenue and contract framework. All agreements with exploration and production companies should be publicly disclosed. Jamaica should formally align with global transparency standards such as the Extractive Industries Transparency Initiative (EITI), ensuring that citizens can see what is earned, spent, and saved.

Third, we need a strong, independent regulatory authority for the energy sector — separate from political control — responsible for licensing, environmental oversight, and compliance. Without this, even well-designed laws will fail in practice.

Fourth, environmental protection must be non-negotiable. Mandatory Environmental and Social Impact Assessments (ESIAs) should be required before drilling, along with a fully funded Oil Spill Response Framework to protect our coasts, fisheries, and tourism industry.

Fifth, Jamaica must invest now in human capital. Institutions such as Church Teachers’ College and others should develop programmes in energy literacy, technical training, safety certification, and environmental management. If oil comes, Jamaicans must be prepared to work in the sector — not watch it from the sidelines.

Sixth, fiscal discipline is essential. Oil revenues must not replace taxation or encourage reckless borrowing. Instead, they should strengthen macroeconomic stability and reduce debt.

At present, Jamaica manages its finances through systems led by the Bank of Jamaica and the Ministry of Finance and the Public Service which focus on foreign reserves, debt control, and overall economic stability. However, this is not the same as a Sovereign Wealth Fund. A Sovereign Wealth Fund is a legally established, independent structure designed specifically to receive and invest resource revenues, with clear rules that limit political interference and ensure long-term national benefit. Without such a mechanism, any future oil income would simply flow into general government accounts, increasing the risk of short-term spending and weakened accountability.

Dr King is right to warn us about temptation. But the answer is not to hope opportunity never arrives. The answer is to build systems strong enough to withstand it.

Jamaica does not need to choose between oil and good governance. It must choose governance first.

Dudley McLean II

dm15094@gmail.com