Wehby

As my tenure as senator and minister in the Ministry of Finance and the Public Service comes to an end next week, I thought it appropriate to write this column on social partnership.

Jamaica has run fiscal deficits continuously since Independence. This has contributed to a growing debt stock and a sluggish rate of economic growth. We have been muddling along, but we can afford to do that no longer. The time has come when a turning point is needed so that we can break the vicious cycle and realise our Vision 2030 dream: "Jamaica, the place of choice to live, raise families and do business." This is not just an exercise for Government, but a task for all the stakeholders of the Jamaican society, and a critical element towards achieving the Vision is a strong, effective and long-term social partnership.

In the prime minister's acceptance speech in 2007, he said that, regardless of the size of the majority, no government will "be able to take this country forward as fast as this country needs to go if it does so on its own steam, without the cooperation of all the people of Jamaica". He spoke of a "new paradigm of constructive engagement" that would invite all the stakeholders of the Jamaican society.

SUCCESS STORIES

In many other jurisdictions, social partnerships have been instrumental in overcoming major social and economic dilemmas, fostering sustained growth, equity and justice for broad cross-sections of society. In the case of Ireland in the 1980s, their economic fundamentals were strikingly similar to our own, and the social partnership has been credited with producing a much-needed recovery. Between 1979 and 1987, Ireland's unemployment rate rose from 7.1 per cent to 18 per cent, and the debt/GNP ratio was approaching 130 per cent. Through the work of the social partnership, the Government deficit declined from 8.5 per cent of GDP in 1987 to 2.3 per cent in 1994, and total employment grew by more than 1.2 per cent a year for seven years.

The partnership was so successful that a team of Jamaicans, comprising government officials, members of the private sector, the Opposition, trade unions and representatives from wider civil society, travelled to Ireland in 2003 to study its model and meet with many of the key figures involved in the transformation.

Social partnership has also succeeded for one of our nearby CARICOM neighbours. The experiment in Barbados, as in Ireland, came as a response to a grave economic crisis, but resulted in a paradigm shift that changed the process of governance and consultation. Notwithstanding the pressures now from the global financial crisis, both Barbados and Ireland subsequently saw remarkable improvements in social and economic conditions.

Several have tried and failed to forge the type of social partnership needed to correct some of Jamaica's imbalances and act as a catalyst for growth and development. Though it is unfortunate that it has taken years of unsustainable trends in our economic performance and the first-ever global financial crisis for all of the various stakeholders to embrace the concept, I think many would agree that there is no better time. We must work to achieve a successful social partnership.

The current effort at social partnership in Jamaica is operating under the name Partnership for Transformation (PFT) This partnership is a commitment between the Government and the private sector (as represented by the PSOJ), the Opposition, the trade unions, Jamaica Employers' Federation, civil society groups and non-governmental organisations for consultation on issues of national importance. For example, in recent weeks, the Government has presented to the partnership on the critical IMF discussions taking place. This is one way in which we are working to build trust among stakeholders, a factor that has been a stumbling block in previous attempts to form a social partnership.

The Partnership demands concrete support at the political level and a sense of national purpose for all partners as it will be a key element in Jamaica's immediate recovery from the global crisis and subsequent sustained growth. Very quickly, it was able to agree on five focus areas that will be addressed in the PFT agreement. These are:

Rule of law

Fiscal and monetary performance

Education and training

Job creation

Trust among partners

It is hoped that the PFT agreement will be finalised during this fiscal year.

THE WAY FORWARD

Studies have shown that countries with effective institutions of conflict management and good governance adjust to economic shocks and continue on a growth path more successfully than countries that do not. It is the concept of shared sacrifice and the distribution of cost. This can only occur in the framework of social partnership.

It is my hope that social partnership will begin to flourish and ultimately lead to consensus between the Government and other social partners on issues, strategies and eventually a map of solutions. It is important that they put aside political tribalism and come to consensus on the responsibilities of government and each of the other agents of society.

The time has now come when Jamaica can no longer avoid making the truly tough decisions that are required to secure our social and economic future. Therefore, it is imperative that all of the society's stakeholders be involved and buy into our national development strategy along with the difficult policy decisions that have to be made. It will take a great deal of sacrifice and compromise towards the national good.

Irish Prime Minister Brian Cowen had this to say about the real meaning of social partnership:

"It is not about a consensus which is created and sustained in Government Buildings in denial of the real world. Neither is it a selfless search for the common good without reference to the underlying conflicts and divergence of interest between the parties ... social partnership is about structuring the engagement which takes place anyway between the social partners, and between the social partners and the Government, so that each can take better-informed decisions about how their interests are best advanced."

May God bless Jamaica.

Senator Don Wehby is minister without portfolio in the Ministry of Finance & the Public Service. Feedback may be sent to columns@gleanerjm.com