Like the Jamaica Chamber of Commerce (JCC), we, too, are concerned about the recent slide of the Jamaica dollar, whose value has declined approximately five per cent against its US counterpart during the past month.

But while we agree that devaluation has been a major contributor to Jamaica's high levels of inflation, we insist that it is primarily a symptom of a more fundamental malaise rather than the problem itself. That is, the inability of Jamaican governments to properly manage the economy, leading to large fiscal deficits.

It is this fear, in the face of the global economic meltdown, that Jamaica will be unable to fund its budget and meet all its obligations that is contributing to this latest round of devaluation. Unfortunately, the Government of Prime Minister Bruce Golding has not done enough to reassure Jamaicans that it is in control of events and to halt the perceptible beginning of a descent into panic.

Credit crisis status

We do not mean that the Government should, as has largely been its approach, tell people that the economy, for the most part remains on track and that the fallout from the international credit crisis will be minimal. Such an argument, as Mr Golding must know is, in the long run, just not credible. Nor is it good enough to highlight historical failures in an effort to deflect current blame.

The mature response is for the Government to accept that Jamaica faces a crisis, outline its responses, and then rally the country in support of its efforts. These must go beyond the monetary measures already taken by the central bank to curtail demand and stabilise the exchange rate, or the deployment of the other limited range of options open to it.

Fiscal measures needed

It is likely that some tough fiscal measures are necessary, backed by policies to stimulate investment and growth as well as administrative support to ensure that announcements become practical undertakings.

In other words, we are challenging Prime Minister Golding to shift gears and take a new approach to the crisis. He must start by declaring the facts and outline how his government intends to face the challenge.

The PM and the JCC will find that the international rating agencies, which have threatened to downgrade Jamaica's sovereign debt, are more likely to respond positively to specific and credible strategies than mere feel-good statements.

The search for solutions, however, rests not only with the Government. It demands, too, serious engagement from a responsible Opposition which understands that what is at stake is more than partisan interests. The private sector also has to consider itself part of a broad partnership, bringing to the table substantive ideas.

But it is the responsibility of the Government to lead, starting with, as Mr Golding likes to style himself, the chief servant. The longer he waits, the bleaker the prospects.

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