Dealing with a seismic shift in the economic order
published: Friday | February 7, 2003
THE VARIOUS crises that have affected the Jamaican economy are the result of a seismic shift in the economic order, as it pertained to a small developing Caribbean economy. It is no different from the drastic change-over from the end of slavery (1830s) to a free labour using plantation economic model in the nineteen century; or the transition from a plantation-led model to a mineral export and tourism service economy model in the 20th century. The challenge facing Jamaica in the 21st century is how to make this transition against the rise of free trade (WTO led) super economic blocs (EU, FTAA led); unilateralism (USA) and radical changes in supply costs, labour demand and marketing techniques.
To survive, Jamaica will have to undergo radical restructuring of current 'modus operandi', although it is attempting to do just that, hence the appearance of coming apart at the seams. In the 21st century the appeal of being small is not likely to carry much weight, unless you can reposition yourself to meet global needs, without the benefit of special trade help. It's a 'swim or sink' mentality as can be seen in the challenges to affirmative action in the USA and the closing (figuratively) of borders in Europe to economic migrants.
Some of our current social and political difficulties, have a lot to do with our inability to move the Jamaican economy into a dominant service mode (offering for example high quality entertainment and tourism services), with linkages to agriculture, using modern (I need to re-emphasise this word) techniques. It will necessitate developing highly educated and motivated workers, who are adaptable and who know the difference between servitude and service. This does not discard other production activities (as some are wont to do) but it does mean high earning production areas. The cries for more factories in response to the need for jobs does not make sense if the workers cannot raise their productivities or the products sold does not bring in the requisite rate of return for such investment).
The good thing about this restructuring is that Jamaicans have shown great adaptability in the past and I see no reason why they can't do so again. Jamaican workers in other destinations and cultures quickly adapt to raising their productivities and changing their work attitude. Once everyone recognises that we need to change to global standards, the productivities will rise in Jamaica, from the laid-back culture. I was struck for instance with the statement that emerged in the Manchester Editor's Forum, that rural labour was unwilling to work for lower wages than what they received as remittances from relatives. The challenge will be to raise the attractiveness of farm returns, so as to make higher farm wages feasible, and agricultural investment feasible. This, however, may not be resolved until the end of agricultural subsidies for EU and US farmers, along with greater market access into rich countries markets.
