Downer IN SPITE of the country's recent economic woes and the need for defined fiscal policies which lead to lower interest rates, low inflation and a better business operating environment, Jamaica is still regarded as a good investment location.
PriceWaterhouseCoopers senior partner Richard Downer, the man charged with sorting out Century National Bank and Bear Sterns associate director of emerging markets, Adam Margolin, both said investors were committed to doing business here.
Both speakers were making presentations under the subject, "Creating the Ideal Investment Climate" at the Jamaican Institute of Management's (JIM) Convention last weekend at the Holiday Inn, Sunspree Resort in Montego Bay.
Mr. Downer revealed the results of a 1999 survey of 200 multinational companies operating in 20 countries, which indicated that investor commitment in the Latin American and Caribbean (LAC) region was still high despite recent economic crises.
Examining Jamaica's position in light of the survey, Mr. Downer said that, while small by Latin American standards, it was large enough to attract Caribbean investment, thereby ranking it as one of the countries seen as having investment potential.
He noted that as an investment location, Jamaica was at the "liberal end of the spectrum" as the country's investment regulations do not discriminate against foreign investment.
Mr. Downer also said Jamaica's legal framework was seen as being competitive, a significant finding, he said, given that 43 per cent of respondents had identified "an unclear legislative framework" as the biggest barrier to investment.
Mr. Margolin said the Jamaican government should be given credit for taking action in imposing fiscal discipline, which he said was critical for helping to restore confidence among foreign investors. Other positive actions he said were monetary loosening and trade liberalisation.
However, he said the country's high exchange rate, high real interest rates and scarce bank lending will remain a matter of concern. Presenting what he described as some "non-standard policies" for Jamaica in creating a better business climate, Mr. Margolin suggested the following:
spend more on infrastructure development
sell assets and strip down the public sector
cut taxes
create greater transparency in Government
foster a culture of charity thereby freeing up government funds to concentrate on the areas of infrastructure and education
formally dollarise the monetary system.
Chief executive officer of the Hart Group of companies, Mark Hart, in his presentation observed that all too often Jamaican bureaucrats discouraged investors by "rolling out the red tape instead of the red carpet."
He added that many problems stemmed from the perception of the investor as someone "out to make a lot of money," instead of a partner in development.
