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Addressing the 'development' problem
published: Saturday | November 22, 2003

THE EDITOR, Sir:

MANY SUGGESTIONS have been made to address the 'development' problem, some have been well thought through, others superficial and some of little relevance. But all are well meaning. I am at a loss to know into which category my own suggestions fall, probably to some they are irrelevant, but what is certain is that they indicate a willingness to question the fundamental assumptions on which our current policies and strategies are based and on which our development institutions operate. A few of my suggestions, and even observations as they can be called, are as follows:

There is a need for a development goal and strategy rooted in a vision. This has not been enunciated nor executed since Norman Manley was Minister of Development. Much of what is now proposed is reinventing the wheel. An observer or participant of the social and economic scene could reproduce the plans and ideas of the often maligned seventies and even before and find them relevant today. What has existed has been various mid-term and short-term development plans that have not been executed and frequent policy instrumentalism rather than policy coherence. The foundation of the policy pursued has been the search for the "big project" whether the Thermoplastic Plant, Highway 2000 etc. as the panacea for development.

EXPECTED TAKE-OFF

The expected take-off did not materialise with bauxite. Jamaica failed to capture the value-added from aluminium due to lack of energy to build a smelter. However, we are now committing ourselves to pursuing an oil-based strategy and preference for personal rather than mass transport, in a situation of depleting international oil reserves, and the prospect of significantly higher oil prices in the future, as there is increasing world demand from new growth countries such as China, Latin America, etc.

Technological change is leading to job obsolescence without any serious labour market analysis or analysis of the impact on training. There is the arrival of one-person bus, self-service gas stations, electronic check-out counters, automation of back room brokerage firms' activities etc. All of these production improving devices will lead to reduction in entry level and permanent jobs if they are generalised. Where is the analysis of the changing labour market and production processes, and the effect of the future job prospects in the face of increasing unemployment?

The governance system and approach is hierarchical and top down despite the rhetoric of participation, connecting with people, decentralisation etc. Parish Councils often criticised for doing little or nothing are just appendages of political parties rather than parish governments. Their cost and utility are now subject to question. The functions of local government in any municipality anywhere in the hemisphere would include public cleansing, local roads and works, welfare, local economic development support etc. In Jamaica these local services are performed by institutions of central government with head offices in Kingston. What is the role of local councils? If many are managed by incompetent political directorate, then that is indicative of the regard political parties have for the system. Indeed, there is a case for local government to be free of the partisan political control with budgets mandated through the constitutional process.

There has been no attention to serious development planning. The only attempt has been in Montego Bay, where a plan was developed, even with its imperfections. However, the bureaucracy, despite talk of modernisation will thwart any ideas that do not emanate from their sterile minds.

REVOLUTIONARY THINKING

There is a need for revolutionary thinking and massive economic and social reengineering to address the problems of rural-urban migration, the absorptive and carrying capacities of urban areas, real rural development, land use, building of new towns and village, meaning community development etc. The present situation in the urban areas that have festered over the years will certainly destroy the country, if not addressed.

Private enterprises must recognise that their success depends on the increase and redistribution of income in favour of the lower income groups that consume the larger part of their income on basic and durable goods. There is no business in Jamaica that has made considerable profits in the last five years that has not depended on the middle and lower income groups' high propensity to consume. This is true of the mobile phone market, Cash Pot, supermarkets and retail enterprises etc. Financial enterprises are reflection of success of these enterprises. The most successful enterprises in Kingston start downtown, not uptown.

The tendency of private enterprise to integrate horizontally, as in the case of the food processing and distribution and drink enterprises, is not conducive to entrepreneurial development and local economic development.

Most of the creative and original ideas spring from the local communities but these ideas when captured by economic elites result in exclusion of the originators. Drop-pan was invented in local communities decades ago but the originators have been excluded from the transformation of the game into a cash cow; indeed they are persecuted. The game has gone from a partly trust-based transactions to pure commercial transaction.

It is proposed to turn the People's Co-operative Banks into branches of a national bank instead of strong local institutions and, of course, focus decisions at the top. This, despite the fact that during the financial institutions meltdown the credit unions remained viable and they are managed by members. These banks should remain People's Banks supported by community enterprise zone and community reinvestment acts and be the foundation of a meaningful development programme which alone can help to solve the problem of poverty and unemployment.

These are a few suggestions and, hopefully, a basis for discussion.

I am, etc.,

MARTIN AFFLICK

1Sefton Road

Kingston 5

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