THE EDITOR, Sir:
IT IS time that the government realises that the country is in a serious economic crisis.
Instead of facing squarely the crisis that we are in, the government is trying to find external scapegoats to rationalise the crisis, when the crisis is largely a result of Government's profligate spending and inability to take the very difficult and politically incorrect decisions that can bring about wealth creation and long-term economic growth.
The time has now come for there to be a serious bi-partisan approach to the economic problems facing the country. I am not speaking now of the traditional lovefests that have been indulged in the past. Neither am I talking about the creation of a new committee of economic management to indulge wishful thinking. I am speaking of what rational people do in a time of crisis: they huddle down and get into a mood for war. They become resolute and decisive. They call upon and employ resources and expertise outside of their present areas of competence to bring to bear with laser-like precision on the presenting problem.
I do not see the government doing any of this. The Minister of Finance is still thinking that the way out is to increase the country's stock of debt. The downgrading of the country's debt rating by Standard and Poors might have come as a blessing to the country as it will make it more difficult for the government to borrow externally. This will not prevent them from borrowing internally, however, which they will do since salaries have to be paid. To deal with the present crisis, the government must do the following:
1. It should swallow a good dose of humility and realise that the PNP of itself does not have all the answers to the country's economic problems. There is no doubt that politics is still in strong control of the commanding heights of the Jamaican economy. It would be foolish to think otherwise. In this 'huddling down' that is required, they must seize the high moral ground and call upon the expertise of those in the Opposition and in the larger society to help in the framing of a path forward. This will inspire confidence in local and overseas investors who will now see that they mean business.
2. An immediate cap must be put on the national debt. No one, individual or government, can borrow his way into a secure future. A secure future comes with discipline, hard work and productivity.
The government must seriously begin to aggressively collect the revenue that is due to it on the road. It must move to aggressively contain expenditure especially on capital projects that are subject to overrun and that may not augment the country's fortunes anytime soon.
3. The time has come for the government to trim the civil service. This will mean a loss of jobs to quite a number of people, but this can be done gradually, humanely with counselling facilities being made available to them. No government of Jamaica wants to take the politically incorrect decision to cut the civil service, yet we know that the Jamaican Civil Service at its present level is top heavy and is a burden to the country despite the assorted attempts at its reform. More can be done to stem the colossal waste that persists in the management of statutory bodies and state agencies.
4. Every attempt must be made to spur production and this means among other things bringing interest rates to a realistic level that will inspire people to borrow. The banks must be encouraged or forced to lessen the gap between the rates at which they take in deposits and those at which they lend money. The gap is usuriously still too wide despite the government's attempts at lowering the cash reserves for banks. If the government believes that they have a healthy NIR that can defend the exchange rate, why the anxiety at moving interest rates to ridiculous high levels to stave off runs on the exchange rate? It makes more prudent economic sense to err on the side of production than on the side of defending an elusive, cosmetic exchange rate.
5. Finally, as a show of good faith, the government must roll back the recent increases in the salaries of Parliamentarians. This will not sit well with our MPs. But the government cannot morally ask others to tighten their belts, bite bullets or sacrifice, when they have allowed themselves to be voted salary increases way above the inflation figure for this fiscal year. It would be a tremendous show of goodwill and of a determination to move in a radically new direction that the war posture mentioned earlier demands.
I urge the Prime Minister and his entire Cabinet to come clean to the people of Jamaica and let us know what we truly face, if they know.
The lying and the skulduggery must end. This is no longer a game of playing marbles or 'ketchy shubby.' We have a serious battle on our hands. Over to you Mr. Prime Minister.
I am etc.,
RALSTON B. NEMBHARD (Rev.)
stead6655@aol.com.
Via Go-Jamaica
