Friday, August 21, 2009

Creating a reward system for economic progress

Over the past few weeks, Jamaica has been grappling with the issues of a credit rating downgrade, a fragile fiscal situation, and a reported 3.9 per cent decline in the economy. The GDP numbers show that the only sector that has shown any positive signs of worth is agriculture.

On the other hand the benefits of the economic contraction we are facing are manifest in a stable foreign exchange rate, low inflation, and the ability to reduce interest rates given the contracting demand in the economy. In other words, the economic contraction has provided the country with a clean slate on which to draw a new design for the economy.

In order to create this new design though, we are going to have to sit down and carefully determine where we want to go and what the best options are to get there. We also have to remember that an economy is made up of individual players, who contribute to the macroeconomic numbers we love to bandy about, and create a system of reward that will encourage the type of economic behaviour we need to drive the economy forward.

This need to chart a new course for Jamaica is the most important task facing the country's policymakers now. The global crisis has provided us with that opportunity and if we mess it up this time, the consequences will be dire. It is therefore very important that we not only have all hands on deck, but that a team is constructed that will have nothing else to do, but chart the economic course for Jamaica. This must be the only job of the team, with no distractions of any other office.

SWOT analysis

In order to determine what plans are needed for Jamaica's progress, we have to approach it like any company that is involved in a strategic retreat. We first have to take a hard look at what Jamaica's long term objectives are and what is the vision we want to achieve, like the 2030 mission statement of making Jamaica the choice place to live and raise families.

After we have very carefully determined what our strategic objectives are, we should go about looking at a 'SWOT analysis' for the country, that is the Strengths, Weaknesses, Opportunities, and Threats that must be considered to achieve the defined vision.

We would, of course, seek to exploit the strengths and opportunities and put policies in place to eliminate the weaknesses and threats. As an example, how do we benefit from the opportunities in the fields of music and sports and how do we eliminate the threats presented by low literacy, onerous bureaucracy, and the abuse of our citizens? In the case of the Armadale inquiry for example, one logical outcome must be that those who were responsible for the horrific treatment meted out to the wards are held accountable for their actions as would be done in any self-respecting country.

This SWOT analysis would allow us to then plan the specific strategies we need to implement in the short, medium, and long terms. It would also allow us to determine which resources we will need to meet those strategic objectives and how best to spend those resources. Without this clear plan as to how we need to move forward as a country, we will continue to grope in the dark, shooting aimlessly at any obstacle that comes in our way without being sure whether it is a real target or a decoy.

For example, the biggest long-term problem we face as a country is production and productivity, which manifests itself in the balance of payments. The immediate short-term problem we face, however, is the fiscal problem, and the fact remains if we do not address this short-term problem we will not have the wherewithal to deal with the longer-term one. It is therefore very important that we understand what needs to be done in the short term and what the dependencies are. Without a proper understanding of this relationship we will only continue the downward spiral the country has found itself in since the 1970s.

Incentivising economic progress

But how do we ensure that the individual behaviour we seek to encourage finds its way into positive economic development-type behaviour patterns? At the heart of this is determining what the role of government is from the role of the market economy. I have always publicly stated my preference for the market economy as the main allocation method for economic resources.

The public sector bureaucracy has been too involved in determining the allocation of our scarce economic resources, which is one of the reasons for our lack of economic development. Examples include the takeover of private companies during the FINSAC era, the allocation of some of our best farmlands to sugar, and the allocation of scarce tax resources to prop up unprofitable public sector entities. All these experiences helped create a situation where we have to bear the high cost of inefficient resource allocation in the high interest rates we have been paying since the 1990s.

The question many would have is, that being the case, why wouldn't we have experienced high interest rates before the 1990s, when the government was always trying to allocate resources based on political and other non-economic considerations? The answer to that question is that prior to the 1990s Jamaica had a closed economy and was therefore protected from global competition. One consequence of this was foreign exchange restrictions. It is therefore more important now than ever that the market be used as the primary means of allocating resources.

The role of government therefore must be to create the incentives to push the market in the direction where we want it to move. The design of these incentives cannot be managed by bureaucrats and special interest groups sitting in a room by themselves to determine what is best for the country. It must be a very deliberate planning approach by a team of professionals, with no special interest employed by the government, and must be carefully looked over by the government and aligned with the country's strategic objectives based on the SWOT analysis.

This will of course mean understanding what sectors we truly have a comparative advantage in, rather than those we get aid from like sugar, and being aware of the main challenges facing the country. Coming out of this process, the government should then objectively create the incentives needed to encourage market behaviour towards economic progress. A failure to do so will mean a continuation along the path we have taken for the past three decades.


Anonymous said...

This is a topic that is near to my heart... Many thanks!
Exactly where are your contact details though?

Here is my website ... Waist Hip Ratio Calculator

Anonymous said...

Today, I went to the beach front with my children.
I found a sea shell and gave it to my 4 year old daughter and said "You can hear the ocean if you put this to your ear."
She put the shell to her ear and screamed.
There was a hermit crab inside and it pinched her
ear. She never wants to go back! LoL I know this is
entirely off topic but I had to tell someone!

Feel free to surf to my webpage - diet that works

Anonymous said...

Hello, everything is going nicely here and ofcourse every one is sharing
data, that's truly good, keep up writing.

my blog post - diets that work

Anonymous said...

I know this web page provides quality depending content and additional
data, is there any other website which offers such information in quality?

Feel free to visit my homepage - bankruptcy florida

Anonymous said...

Hello! This post could not be written any better!
Reading this post reminds me of my good old room mate!
He always kept talking about this. I will forward this post to him.
Pretty sure he will have a good read. Thanks for sharing!

my web page ... waist to height ratio

Anonymous said...

What i don't realize is in fact how you're no longer really
much more well-preferred than you might be right now.
You're very intelligent. You know therefore significantly on the subject of this matter, produced me for my part consider it from a lot of numerous angles. Its like women and men aren't fascinated unless it's something to accomplish with Lady gaga! Your own stuffs great. All the time take care of it up!

Review my web page: accupril dosage forms

Anonymous said...

Paragraph writing is also a excitement, if you be familiar with
after that you can write if not it is complex to write.

My blog post: airplane simulation games

Anonymous said...

My spouse and I absolutely love your blog and find most of your post's to be exactly what I'm looking
for. Do you offer guest writers to write content in your case?
I wouldn't mind composing a post or elaborating on a few of the subjects you write concerning here. Again, awesome blog!

Here is my page; Easy Diets that work

Anonymous said...

I love your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone
to do it for you? Plz reply as I'm looking to design my own blog and would like to know where u got this from. appreciate it

Here is my homepage; size genetics

Anonymous said...

What's up to all, how is all, I think every one is getting more from this web site, and your views are good designed for new visitors.

My website - semenax pills

Anonymous said...

Thanks for one's marvelous posting! I seriously enjoyed reading it, you will be a great author. I will make certain to bookmark your blog and definitely will come back very soon. I want to encourage that you continue your great job, have a nice holiday weekend!

Feel free to surf to my weblog :: Activity calorie calculator

Anonymous said...

You actually make it seem so easy with your presentation but I find this topic to
be really something which I think I would never understand.
It seems too complicated and very broad for me.
I am looking forward for your next post, I will try to get
the hang of it!

My blog :: weight loss calculator

Anonymous said...

Thanks for every other fantastic article. The place else
may just anyone get that kind of info in such a perfect manner of writing?
I've a presentation subsequent week, and I'm at the search for such info.

my web-site adiphene ingredients

Anonymous said...

Please let me know if you're looking for a writer for your site. You have some really great articles and I believe I would be a good asset. If you ever want to take some of the load off, I'd really like
to write some content for your blog in exchange for a link back to mine.
Please send me an e-mail if interested. Regards!

Here is my blog post ... buy koutea

Anonymous said...

Simply wish to say your article is as astonishing.
The clarity in your put up is just great and i could suppose you're knowledgeable on this subject. Well together with your permission allow me to grasp your RSS feed to keep up to date with imminent post. Thank you one million and please keep up the gratifying work.

my web page ... diet plans for women

Anonymous said...

Really when someone doesn't understand afterward its up to other people that they will assist, so here it occurs.

My web-site; diets that work for women

Anonymous said...

Everything is very open with a really clear clarification of the challenges.

It was truly informative. Your site is useful.
Thanks for sharing!

My website ... andropause pill

Anonymous said...

Hi to every body, it's my first go to see of this webpage; this web site carries amazing and truly excellent data in favor of visitors.

My web site; windows xp registry cleaner

Anonymous said...

Does your site have a contact page? I'm having trouble locating it but, I'd like to send you an email.

I've got some ideas for your blog you might be interested in hearing. Either way, great website and I look forward to seeing it expand over time.

Here is my homepage ... semen volume enhancement

Anonymous said...

For hottest information you have to pay a visit web and on world-wide-web I found this site as a best site for hottest updates.

Also visit my blog post :: how many calories do you burn walking

Anonymous said...

I'm not sure where you're getting your info, but good topic.
I needs to spend some time learning much more or understanding
more. Thanks for excellent info I was looking for this info for my

Here is my weblog bmi chart female

Anonymous said...

Ahaa, its pleasant conversation concerning this article here at this
webpage, I have read all that, so now me also commenting at this place.

Review my website; how to calculate bmr

Anonymous said...

Hey there! This post couldn't be written any better! Reading this post reminds me of my previous room mate! He always kept talking about this. I will forward this page to him. Pretty sure he will have a good read. Many thanks for sharing!

Look into my web site tips on how to lose weight fast

Anonymous said...

I will right away grasp your rss as I can not find your e-mail subscription link or
newsletter service. Do you've any? Please let me recognize so that I may just subscribe. Thanks.

Feel free to surf to my blog post: best diet plan for women

Anonymous said...

My partner and I stumbled over here coming from a different web page and thought I might as well check things out.
I like what I see so now i am following you.
Look forward to going over your web page yet again.

my site diets that work for women

Anonymous said...

Your style is so unique compared to other people
I have read stuff from. Thanks for posting when you have the opportunity, Guess I'll just book mark this blog.

Review my website: healthy diet plan

Anonymous said...

For most up-to-date news you have to pay a quick visit web and on internet I found this site as
a most excellent site for newest updates.

Here is my weblog :: weight loss

Anonymous said...

Howdy! I simply would like to offer you
a big thumbs up for your great info you have got right here on
this post. I'll be coming back to your website for more soon.

Here is my weblog ... bmi calculator men

Anonymous said...

Heya are using Wordpress for your blog platform?
I'm new to the blog world but I'm trying to get started
and create my own. Do you require any coding expertise to make your own blog?

Any help would be really appreciated!

Look at my website - easy diets for women

Anonymous said...

At this moment I am ready to do my breakfast, afterward having my breakfast coming yet again to read other news.

Here is my blog ... what should i weigh

Anonymous said...

Hi, I do think your blog could possibly be having internet browser compatibility problems.
Whenever I take a look at your site in Safari, it looks fine but when opening
in Internet Explorer, it has some overlapping issues.
I simply wanted to give you a quick heads up! Aside from that, excellent blog!

Also visit my web-site: crash diets that work

Anonymous said...

Thanks for sharing your thoughts. I really appreciate your efforts and I am waiting for your
next post thanks once again.

Feel free to visit my web-site; diet plans that work

Anonymous said...

Piece of writing writing is also a excitement, if you know afterward you can
write otherwise it is complex to write.

my website - diets that work fast for women

Anonymous said...

Wonderful, what a webpage it is! This webpage presents valuable data to us, keep
it up.

Visit my site ... diets that work

Anonymous said...

Pretty! This was a really wonderful article. Many thanks for providing these details.

My homepage ... breast actives

Anonymous said...

Hello just wanted to give you a quick heads up and let you know a few of the pictures aren't loading properly. I'm not sure
why but I think its a linking issue. I've tried it in two different web browsers and both show the same results.

My weblog; volume pills scam

Anonymous said...

These are genuinely enormous ideas in regarding blogging.
You have touched some nice factors here. Any way keep up wrinting.

Have a look at my web-site :: diet Plans that work fast

Anonymous said...

Very quickly this site will be famous among all blogging and site-building
people, due to it's good articles

my homepage ... hip waist ratio

Anonymous said...

It's really a great and helpful piece of info. I am glad that you shared this useful information with us. Please keep us informed like this. Thanks for sharing.

Feel free to visit my homepage: diet plans that work

Anonymous said...

Hi would you mind sharing which blog platform you're using? I'm going to
start my own blog in the near future but I'm having a tough time choosing between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I'm looking for
something unique. P.S Apologies for being off-topic but I had to ask!

Feel free to surf to my blog post; bmr calculator

Anonymous said...

It's going to be ending of mine day, except before ending I am reading this impressive post to improve my knowledge.

my web site ... fastest way to lose weight

Anonymous said...

Wow that was odd. I just wrote an extremely long comment but after I clicked submit my comment didn't appear. Grrrr... well I'm not writing all that over again.
Regardless, just wanted to say superb blog!

Feel free to visit my homepage; losing weight fast

Anonymous said...

hello there and thank you for your info – I have definitely picked up something new from right
here. I did however expertise several technical issues using this site, as I experienced to reload the web site many
times previous to I could get it to load correctly. I had been wondering if your web hosting is OK?
Not that I am complaining, but sluggish loading
instances times will very frequently affect your placement
in google and can damage your high-quality score if ads and marketing with Adwords.
Well I am adding this RSS to my email and can look out
for a lot more of your respective fascinating content.

Ensure that you update this again very soon.

Also visit my web blog ... how to lose weight quickly

Anonymous said...

Superb blog you have here but I was curious about if you knew
of any discussion boards that cover the same topics
talked about in this article? I'd really love to be a part of online community where I can get comments from other experienced people that share the same interest. If you have any recommendations, please let me know. Cheers!

my web site see more

Anonymous said...

Simply desire to say your article is as surprising.
The clarity for your submit is simply great and i could
assume you're an expert on this subject. Fine together with your permission allow me to clutch your RSS feed to keep up to date with impending post. Thank you one million and please carry on the enjoyable work.

Review my website ... raspberry ketone reviews

Anonymous said...

Pretty! This was an extremely wonderful post. Thank you for supplying these details.

Look into my site; Does raspberry ketones work

Anonymous said...

Its not my first time to visit this website, i am visiting this site
dailly and get pleasant facts from here every day.

Feel free to visit my web blog :: raspberry ketones

Anonymous said...

When I originally commented I clicked the
"Notify me when new comments are added" checkbox and now each
time a comment is added I get several emails with
the same comment. Is there any way you can remove me from that service?

Appreciate it!

my web blog ... click here

Anonymous said...

I developed a secret system through a lifetime of study and hard work to learn how to how do You get a girlfriend.
You alert yourself on both conscious and subconscious
levels to recognize the lady you fancy feel that way.
I just couldn't do it. Do you not think that writing a simple love poem to get her back! Women are pretty good evidence of what's
going on wherever you live.

Anonymous said...

No doubt, there is little point in taking extra collision cover; it will work out to be your responsibility?
Getting car insurance is generally the minimum required liability coverage on a
2002 Honda Civic 10, 000 miles a year. These people will guide
the people through the whole process and make sure you cover all the angles here and ask questions that
are pertinent to your situation.

Here is my blog post Car Insurance (

Anonymous said...

Howdy! Do you know if they make any plugins to
help with Search Engine Optimization? I'm trying to get my blog to rank for some targeted keywords but I'm not seeing very good success.
If you know of any please share. Many thanks!

my web-site: Http://Pornharvest.Com/Index.Php?M=2139572

Anonymous said...

Whoa! This blog looks just like my old one! It's on a totally different subject but it has pretty much the same page layout and design. Wonderful choice of colors!

Here is my website: a dedicated teacher

Anonymous said...

Here are some tips you can ensure that auto insurance nationwide becomes cheaper for you.

However, you should check with the neighborhood body
shop in their area and ask them to explain in detail why this particular policy is the correct one to choose.

Also visit my web site ... cheap auto insurance quotes

Anonymous said...

Some women find intimacy as a major influence. Now is
the time to do the friend thing, they may be.

Some guys make a mistake of drowning themselves in alcohol then they
would contact their tips to attract women while intoxicated.
Never before had you seen a sudden change in appearance?
Kudos to you You must show kindness and understanding during this time.

If she disagrees, pull that away, don't give up now! There are many men, but steps can be taken to get him more women. However, many women are turned off by this.

柯云 said...

nike blazers uk
ray ban outlet
ralph lauren polo shirts
hollister clothing store
louis vuitton outlet
nike running shoes for men
nike free uk
insanity workout
coach outlet store online
louis vuitton outlet
oakley vault
coach outlet online
red bottom shoes
beats by dr dre
cheap basketball shoes
oakley sunglasses wholesale
michael kors outlet
cheap ray ban sunglasses
toms outlet
michael kors outlet online sale
tory burch flats
louis vuitton
coach outlet
nike roshe run mens
adidas originals
adidas superstar
louis vuitton outlet
ray bans
michael kors bags
the north face jackets
hollister clothing
adidas running shoes
coach outlet
timberland boots
burberry handbags
louis vuitton handbags
beats by dre outlet
ray ban sunglasses
coach outlet

郑佳颖 said...

vans shoes
nike mercurial
jordan 13
hogan outlet online
nike air force 1 high
falcons jersey
nike air zoom structure 19
cheap jordans
harden shoes
true religion outlet

jeje said...

michael kors handbags
nike huarache
air force ones
kobe sneakers
adidas eqt support adv
adidas gazelle
nike mercurial
ferragamo belt
nike huarache sale
patriots jerseys

Zist Corporation said...

If you get injured, you will need to report it to the insurance service provider and give information about the loss. You can go for injury claims if you are injured by an auto accident or any other method. Usually, the injured person would be asked to submit medical reports to the insurance service provider. The claims are settled as a single lump sum. Life Insurance Terms

Sophi Emma said...

Just Amazing information. I think I’m your big fan because you always come with such a wonderful information and it’s really gonna help us thanks for sharing valuable information with us keep posting Great work