EDITORIAL - The Dickensian shame of Armadale
Published: Monday September 14, 2009
In a sense, the Armadale enquiry wasn't really necessary. It wasn't going to tell us anything that we didn't know. Most Jamaicans know about the horrible conditions at the so-called correctional centres and places of safety.
Sadie Keating's committee earlier this decade, for instance, documented rampant sexual and physical abuse at both government and privately run homes where children ought to believe they have bankable guarantees of refuge and well-being.
We are aware, too, of the beatings and torture in 2000 at the prison in St Catherine, and the findings of the sole commissioner who probed that atrocity. Before these, there was the report on the riots at the Tower Street Correctional Centre that highlighted the overcrowding at the prison, the ill-treatment of prisoners, and the general corruption of the system.
But even though there would be no grand revelations from Justice Harrison's probe of the events in May at Armadale, St Ann, where seven of the inmates of this facility for girls were burnt to death, we knew that it was important that we hear what happened and the circumstances in which it happened. For it is important, we feel, continuously to confront ourselves and to test our tolerance for indecency until, perhaps, we are at a point where we can no longer endure and, therefore, shame ourselves into action - to a behaviour for the better.
A degrading Dickensian hellhole
In the first regard, the enquiry did not disappoint, confirming Armadale as a degrading Dickensian hellhole for which no one, from top to bottom and in-between, assumes any responsibility and has no expectation of being held to account. Unless, perhaps, Justice Harrison deems someone criminally liable for starting the fire that caused the deaths and the Office of the Director of Public Prosecutions prefers charges against that individual.
But igniting the fire that caused the deaths and injuries was not the worse thing that happened at Armadale. The fire, the raw truth be acknowledged, was mere symptomatic of something far nastier and more corrosive than what is likely to have been a case of bad judgement: it is a toxic cocktail of abrogation of responsibility and indecent disrespect. So people who find themselves in a particular circumstance or are hemmed into a certain stratum are worthy, it appears, of not more than a Dickensian workhouse.
Psychotic behaviour
Should such an assertion be deemed unfair, how else then is the evidence of Dr Micas Campbell, who attended to the Armadale girls, explained?
Several of the 61 wards, she said, displayed various forms of psychotic behaviour, including hallucination and suicidal and homicidal tendencies. Some were particularly aggressive. Some suffered from depression and anxiety. But the State, in whose care they were placed, which had responsibility for their welfare, could not find it possible to ensure that teenage girls with deep psychological problems receive prescribed medication on a regular basis. Nor could Dr Campbell get two girls, with deeper problems, complicated by diagnosis of HIV, removed from Armadale. They died in the fire.
That attitude is symptomatic of a culture in which what happened at Armadale in May was entirely possible. What is worse, no one at any level of the system seems to feel responsible, which makes them irresponsible, and should go, starting at the top of the correctional system.
The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published. http://www.jamaica-gleaner.com/gleaner/20090914/cleisure/cleisure1.html
Monday, September 14, 2009
Tuesday, September 1, 2009
Managing in times of recession: success through partnership and collaboration
Managing in times of recession: success through partnership and collaboration
Published: Tuesday September 1, 2009
Ibrahim Ajagunna, Director, Academic Studies, Caribbean Maritime Institute (CMI)and Fritz Pinnock,Executive Director (CMI), Contributors
The impact of the recent recession has had a tremendous effect on the shipping industry and Maritime Education in Jamaica.
Both are now downsizing in all aspects of their operations simply because of recession. It is important to recognise that the roots of a recession and its true starting point rest in several quarters of positive but slowing growth before the actual recession.
While this is so, it is also important to recognise other economic change variables such as national unemployment rates or consumer confidence and spending levels, which are all a part of the economic system and which must be taken into consideration when considering a recession.
In an economic environment where inflation is prevalent, people tend to cut out things like leisure spending and spend less on things they usually indulge in.
People will attempt to save more money than they usually do and sometimes they do so through wrong investments that yield super profit in a short time period. As a result of this people and businesses start finding ways to cut costs and avoid unneeded expenditures which will eventually lead to decline in the Gross Domestic Product.
As experienced recently in the shipping industry and other businesses in Jamaica, unemployment rates continue to rise because these companies start to lay off workers to cut more costs.
This however occurs because consumers are not spending like they use to do. These combined factors according to experts help to drive an economy into a state of recession. Economists also believe that this set of circumstances, coupled with the ability of people to get access to greater amounts of loan money, creates a cycle of unsustainable economic activity which may eventually grind an economy to a near halt existence.
Rough tide
These views are not different from experiences in Jamaica over the last few years.
The Hellenic Shipping News recently revealed the rough tide for shipping lines globally for which there has been sharp reduction in cargo volumes worldwide. The last six months for example have seen a huge amount of capacity changes in the container industry, including the lay up of vessels.
According to Hellenic Shipping News, many shipping lines have responded to this tide with job cuts, and increases in freight rates have sharply plummeted in the last few months since the meltdown started.
The chief executive officer of Maersk Line, Eivind Kolding, in an interview with Hellenic Shipping News said that more job losses are likely at Maersk Line in 2010. Also, as part of the economic recession fallout, the AP Moller-Maersk subsidiary has indicated it will charge $300 more per 20-foot equivalent unit (TEU) on its Far East to Mediterranean and Northern Europe lanes with effect from 1 July 2009.
There is no doubt that this will extend to the Caribbean making the cost of goods to the consumer skyrocket. The question is, could this be an opportunity for shipping lines to cut costs and increase their revenue using the recession as a yardstick? Can partnership and collaboration help resolve the present bottleneck? The answer to the last question may probably be yes based on the following.
Partnerships and collaborative arrangements amongst all stakeholders in the shipping industry is one effective way of achieving success in the industry. Partnership and collaboration is a process of joint decision making among autonomous and key stakeholders of an inter-organisational domain to resolve problems of the domain and/or to manage issues related to the domain. It occurs when a group of autonomous stakeholders of a problem domain engage in an interactive process, using shared rules, norms, and structures, to act or decide on issues related to that domain.
Future challenges
It can lead to better decisions that are more likely to be implemented and, at the same time, better prepare agencies and communities for future challenges. Partnerships and collaborative ventures can help to unite the multiplicity of interests throughout all sectors of the diverse shipping industry.
To realise the growth potential of the industry, it is important to develop a high-quality, profitable and sustainable activity, through a partnership of industry, government and other stakeholders. Such a common arrangement will allow the private sector to work in conjunction with the public sector on a wide range of issues, for example, policy formulation, infrastructure development and provision, the development of maritime facilities and amenities, marketing and promotion and the development of skilled personnel for the industry.
By developing interpersonal and inter-organisational linkages, managers can be better informed and make choices about future directions that are more likely to solve the problems at hand. Collaborative decision-making and on-the-ground partnerships can enhance the capacity of agencies and communities to deal with problems in the future.
Published: Tuesday September 1, 2009
Ibrahim Ajagunna, Director, Academic Studies, Caribbean Maritime Institute (CMI)and Fritz Pinnock,Executive Director (CMI), Contributors
The impact of the recent recession has had a tremendous effect on the shipping industry and Maritime Education in Jamaica.
Both are now downsizing in all aspects of their operations simply because of recession. It is important to recognise that the roots of a recession and its true starting point rest in several quarters of positive but slowing growth before the actual recession.
While this is so, it is also important to recognise other economic change variables such as national unemployment rates or consumer confidence and spending levels, which are all a part of the economic system and which must be taken into consideration when considering a recession.
In an economic environment where inflation is prevalent, people tend to cut out things like leisure spending and spend less on things they usually indulge in.
People will attempt to save more money than they usually do and sometimes they do so through wrong investments that yield super profit in a short time period. As a result of this people and businesses start finding ways to cut costs and avoid unneeded expenditures which will eventually lead to decline in the Gross Domestic Product.
As experienced recently in the shipping industry and other businesses in Jamaica, unemployment rates continue to rise because these companies start to lay off workers to cut more costs.
This however occurs because consumers are not spending like they use to do. These combined factors according to experts help to drive an economy into a state of recession. Economists also believe that this set of circumstances, coupled with the ability of people to get access to greater amounts of loan money, creates a cycle of unsustainable economic activity which may eventually grind an economy to a near halt existence.
Rough tide
These views are not different from experiences in Jamaica over the last few years.
The Hellenic Shipping News recently revealed the rough tide for shipping lines globally for which there has been sharp reduction in cargo volumes worldwide. The last six months for example have seen a huge amount of capacity changes in the container industry, including the lay up of vessels.
According to Hellenic Shipping News, many shipping lines have responded to this tide with job cuts, and increases in freight rates have sharply plummeted in the last few months since the meltdown started.
The chief executive officer of Maersk Line, Eivind Kolding, in an interview with Hellenic Shipping News said that more job losses are likely at Maersk Line in 2010. Also, as part of the economic recession fallout, the AP Moller-Maersk subsidiary has indicated it will charge $300 more per 20-foot equivalent unit (TEU) on its Far East to Mediterranean and Northern Europe lanes with effect from 1 July 2009.
There is no doubt that this will extend to the Caribbean making the cost of goods to the consumer skyrocket. The question is, could this be an opportunity for shipping lines to cut costs and increase their revenue using the recession as a yardstick? Can partnership and collaboration help resolve the present bottleneck? The answer to the last question may probably be yes based on the following.
Partnerships and collaborative arrangements amongst all stakeholders in the shipping industry is one effective way of achieving success in the industry. Partnership and collaboration is a process of joint decision making among autonomous and key stakeholders of an inter-organisational domain to resolve problems of the domain and/or to manage issues related to the domain. It occurs when a group of autonomous stakeholders of a problem domain engage in an interactive process, using shared rules, norms, and structures, to act or decide on issues related to that domain.
Future challenges
It can lead to better decisions that are more likely to be implemented and, at the same time, better prepare agencies and communities for future challenges. Partnerships and collaborative ventures can help to unite the multiplicity of interests throughout all sectors of the diverse shipping industry.
To realise the growth potential of the industry, it is important to develop a high-quality, profitable and sustainable activity, through a partnership of industry, government and other stakeholders. Such a common arrangement will allow the private sector to work in conjunction with the public sector on a wide range of issues, for example, policy formulation, infrastructure development and provision, the development of maritime facilities and amenities, marketing and promotion and the development of skilled personnel for the industry.
By developing interpersonal and inter-organisational linkages, managers can be better informed and make choices about future directions that are more likely to solve the problems at hand. Collaborative decision-making and on-the-ground partnerships can enhance the capacity of agencies and communities to deal with problems in the future.
Saturday, August 1, 2009
NCJRS Abstracts Database - Corruption and Regulatory Structures
"NCJ Number
207126
Title:
Corruption and Regulatory Structures
Author(s):
Anthony Ogus
Publication Date:
July 2004
Pages:
18
Type:
Legislation/policy analysis
Origin:
United States
Language:
English
Annotation:
This article examines the problem of suppressing corruption in developing nations, focusing specifically on a critique of the conventional, regulatory strategies espoused by Western institutions.
Abstract:
One of the major obstacles to economic growth in developing nations has been identified as corruption. Governments in these developing countries have fallen under increased scrutiny and pressure from the World Bank and other international organizations to combat the problem. Western institutions have been urging developing countries to adopt the regulatory methods used to constrain corruption in Western industrialized societies. These regulatory methods focus on greater accountability and transparency in decisionmaking and on intensifying law enforcement efforts. The author argues that these strategies are not necessarily appropriate for developing nations facing problems of restricted law enforcement resources and deeply culturally embedded practices of corruption. Rather than adopting the Western regulatory model, the author asserts that developing nations should focus on reducing the opportunities for corruption within the context of regulatory decisionmaking, instead of attempting to suppress it altogether. The key aspects of regulatory institutions and procedures that have the potential of achieving the goal of reducing opportunities for corruption are identified, some of which are inconsistent with regulatory methods recommended by Western institutions. Reducing opportunities for corruption will not only be a more effective means of controlling corruption, it will also demand fewer resources than the Western regulatory approach. References
Main Term(s):
Corruption of public officials; Developing Countries
Index Term(s): Law enforcement; Regulatory agencies"
http://www.ncjrs.gov/app/publications/abstract.aspx?ID=207126
207126
Title:
Corruption and Regulatory Structures
Author(s):
Anthony Ogus
Publication Date:
July 2004
Pages:
18
Type:
Legislation/policy analysis
Origin:
United States
Language:
English
Annotation:
This article examines the problem of suppressing corruption in developing nations, focusing specifically on a critique of the conventional, regulatory strategies espoused by Western institutions.
Abstract:
One of the major obstacles to economic growth in developing nations has been identified as corruption. Governments in these developing countries have fallen under increased scrutiny and pressure from the World Bank and other international organizations to combat the problem. Western institutions have been urging developing countries to adopt the regulatory methods used to constrain corruption in Western industrialized societies. These regulatory methods focus on greater accountability and transparency in decisionmaking and on intensifying law enforcement efforts. The author argues that these strategies are not necessarily appropriate for developing nations facing problems of restricted law enforcement resources and deeply culturally embedded practices of corruption. Rather than adopting the Western regulatory model, the author asserts that developing nations should focus on reducing the opportunities for corruption within the context of regulatory decisionmaking, instead of attempting to suppress it altogether. The key aspects of regulatory institutions and procedures that have the potential of achieving the goal of reducing opportunities for corruption are identified, some of which are inconsistent with regulatory methods recommended by Western institutions. Reducing opportunities for corruption will not only be a more effective means of controlling corruption, it will also demand fewer resources than the Western regulatory approach. References
Main Term(s):
Corruption of public officials; Developing Countries
Index Term(s): Law enforcement; Regulatory agencies"
http://www.ncjrs.gov/app/publications/abstract.aspx?ID=207126
Wednesday, June 24, 2009
Wellness Tour cares for the elderly and children
Jamaica Gleaner Online
Wellness Tour cares for the elderly and children
Published: Tuesday June 23, 2009
Elderly patients listen attentively during the launch of the Wellness Tour, held at Swallowfield Chapel June 2-6.
The elderly and children from the Swallowfield community between June 2 and 6 received health care during the Shipping Association of Jamaica (SAJ), Rotary and Rotaract Club of Liguanea Plains (RCLP) 'Wellness Tour 2009' held at the Swallowfield Chapel.
A partnership between the SAJ, the Rotary and Rotaract clubs as well as Swallowfield Chapel, the four-day tour provided screening for vision, cholesterol, hypertension, diabetes, Pap smears and breast examinations as well as general medical check-ups. A team of seven doctors, including two ophthalmologists, nurses and personnel from the Diabetes Association of Jamaica provided medical care.
The first three days of the clinic were dedicated to the care of the elderly, who received free prescription medication, while Saturday was dedicated entirely to children of the community.
Great importance
Speaking at the launch, Diana Reynolds, human resource and development manager of the SAJ, noted that wellness was of great importance to the association. The desire to ensure the medical needs of individuals in our neighbouring Greenwich Town community led the SAJ to purchase this mobile clinic. The idea of the Wellness Tour, she noted, was the brainchild of the SAJ's general manager, Trevor Riley.
"We are proud to say that the clinic has grown beyond the Greenwich Town community and has spread its wings to communities across Jamaica, through its partnership with the Rotary Club of Liguanea Plains and the churches and schools which host the tour," Reynolds said.
She pointed out that the SAJ's focus on wellness was also staff oriented, noting that the association recently launched a staff wellness programme to help employees create a healthier lifestyle.
"We implore you, in this challenging economic climate, to focus on the health and well-being of your staff members, so they can be in the best of health to perform their respective duties," Reynolds said.
Michael Bernard, president of the Rotary Club of Liguanea Plains, said that the Wellness Tour assists the club in fulfilling its mandate of decreasing the child mortality rate. "It is a good fit that the Rotary Club would partner with the SAJ and the Swallowfield Chapel to extend health care and fellowship to the members of the community," Bernard said.
Pastor David Henry of the Swallowfield Chapel thanked the volunteers who came out to serve unselfishly. "As disciples of Christ, we at Swallowfield have been commissioned not only to spread the gospel but also to care for the sick and those in need," Henry said.
In its fourth year, the Wellness Tour has provided medical care to more than 3,000 children and adults in communities across the island. The aim of the tour is to provide medical screening facilities to individuals who face challenges accessing these services. Partners for the tour include the Diabetes Association of Jamaica, Foundation for International Self-Help, SecuriPro, Atlas Security, Maritime and Transport Limited and Marine Haulage.
Diana Reynolds, human resource and development manager of the Shipping Association of Jamaica, in conversation with Pastor David Henry (centre) of Swallowfield Chapel and Michael Bernard, president of the Rotary Club of Liguanea Plains, after the opening of the Wellness Tour at the chapel recently. Copyright Jamaica-Gleaner.com
http://www.jamaica-gleaner.com/gleaner/20090623/shipping/shipping1.html
Wellness Tour cares for the elderly and children
Published: Tuesday June 23, 2009
Elderly patients listen attentively during the launch of the Wellness Tour, held at Swallowfield Chapel June 2-6.
The elderly and children from the Swallowfield community between June 2 and 6 received health care during the Shipping Association of Jamaica (SAJ), Rotary and Rotaract Club of Liguanea Plains (RCLP) 'Wellness Tour 2009' held at the Swallowfield Chapel.
A partnership between the SAJ, the Rotary and Rotaract clubs as well as Swallowfield Chapel, the four-day tour provided screening for vision, cholesterol, hypertension, diabetes, Pap smears and breast examinations as well as general medical check-ups. A team of seven doctors, including two ophthalmologists, nurses and personnel from the Diabetes Association of Jamaica provided medical care.
The first three days of the clinic were dedicated to the care of the elderly, who received free prescription medication, while Saturday was dedicated entirely to children of the community.
Great importance
Speaking at the launch, Diana Reynolds, human resource and development manager of the SAJ, noted that wellness was of great importance to the association. The desire to ensure the medical needs of individuals in our neighbouring Greenwich Town community led the SAJ to purchase this mobile clinic. The idea of the Wellness Tour, she noted, was the brainchild of the SAJ's general manager, Trevor Riley.
"We are proud to say that the clinic has grown beyond the Greenwich Town community and has spread its wings to communities across Jamaica, through its partnership with the Rotary Club of Liguanea Plains and the churches and schools which host the tour," Reynolds said.
She pointed out that the SAJ's focus on wellness was also staff oriented, noting that the association recently launched a staff wellness programme to help employees create a healthier lifestyle.
"We implore you, in this challenging economic climate, to focus on the health and well-being of your staff members, so they can be in the best of health to perform their respective duties," Reynolds said.
Michael Bernard, president of the Rotary Club of Liguanea Plains, said that the Wellness Tour assists the club in fulfilling its mandate of decreasing the child mortality rate. "It is a good fit that the Rotary Club would partner with the SAJ and the Swallowfield Chapel to extend health care and fellowship to the members of the community," Bernard said.
Pastor David Henry of the Swallowfield Chapel thanked the volunteers who came out to serve unselfishly. "As disciples of Christ, we at Swallowfield have been commissioned not only to spread the gospel but also to care for the sick and those in need," Henry said.
In its fourth year, the Wellness Tour has provided medical care to more than 3,000 children and adults in communities across the island. The aim of the tour is to provide medical screening facilities to individuals who face challenges accessing these services. Partners for the tour include the Diabetes Association of Jamaica, Foundation for International Self-Help, SecuriPro, Atlas Security, Maritime and Transport Limited and Marine Haulage.
Diana Reynolds, human resource and development manager of the Shipping Association of Jamaica, in conversation with Pastor David Henry (centre) of Swallowfield Chapel and Michael Bernard, president of the Rotary Club of Liguanea Plains, after the opening of the Wellness Tour at the chapel recently. Copyright Jamaica-Gleaner.com
http://www.jamaica-gleaner.com/gleaner/20090623/shipping/shipping1.html
Tuesday, May 5, 2009
Producing to survive instead of borrowing - KEN CHAPLIN
Tuesday, May 05, 2009
Apart from the effects the global economic recession is having on Jamaica, the country's gravest problem is not producing enough goods and services to ensure economic stability and viability, yet it wants to enjoy a high standard of living mainly through borrowing upon borrowing.
All the statistics on the economy released by Finance Minister Audley Shaw in his 2009-2010 budget presentation point to the need for Jamaica to produce far more goods and services in order to survive, especially in the current world economic environment. The Gross Domestic Product is the most important barometer for measuring economic stability, in that it measures the value of goods and services produced by a country. If a country is not producing sufficient goods and services to maintain a level of economic and social stability, it cannot be said to be doing well. Jamaica is not doing well and has been borrowing money to survive instead of producing to survive.
The debt ratio to the GDP is staggering. At the end of March this year the ratio stood at 108.9 per cent. In actual figures, we owed $1.2 trillion dollars and we are still borrowing. Of a budget of $555 billion, $309 billion had to be reserved for debt payments. Under law, the first charge on the budget is debt servicing.
The expected revenue for the fiscal year will be $321 billion. Government will have to borrow $215.8 billion and impose $18.131 billion in taxes or 1.5 per cent of GDP to close the fiscal gap. The major portion of the revenue will come from an increase of $8.75 per litre in the Special Consumption Tax on petrol which is estimated to yield $13.3 billion, and broadening the General Consumption Tax (GCT) estimated to yield $7.5 billion. It has been widely recognised that the government has no other option but to increase taxes although the level of the increase in petrol prices and some of the items added to the GCT basket is being questioned. For example, it includes computers and books. This is unacceptable.
Some economists wanted the government to cut its spending, but others argue to the contrary that, like President Obama's administration, government should increase spending, give the economy a stimulus injection, especially in infrastructure development and create better conditions for increasing goods and services to improve the GDP standing. Hence this year 20 per cent of the intake from the SCT on fuel will be used on road rehabilitation, 35 per cent next year and 50 per cent in year three. There is also money for capital development, but many more incentives will be needed to enhance production appreciably. When Prime Minister Bruce Golding speaks in the budget debate today he is expected to announce other incentives to raise the level of the production of goods and services.
In his landmark contribution to the debate last Tuesday, Opposition spokesman on finance, Dr Omar Davies, proposed an economic recovery programme for national growth which would see an additional $6 billion added to the budget for capital programmes, including infrastructural works like draining, river training, reforestation and building retaining walls.
The programme, he said, could be financed by withdrawing $3 billion from the Universal Acess Fund and the Tourism Enhancement Fund. He suggested a tax regime which could result in the rolling back of the tax increase on petrol. Many people are calling Dr Davies' contribution as the most statesmanlike speech he has ever made in a budget debate, including those he made during his 14 years as minister of finance.
But to return to the importance of having a strong GDP. The fiscal deficit this year is targeted at 5.5. per cent of the GDP or $65.4 billion. Such a deficit is much too high for a small economy and shows that the country is living well above its means and has to increase its income considerably. The internationally accepted safe point is 3 per cent of GDP. We cannot compare our position with that of a large country like the United States which has a large economy and can cope with the problem better than a small country like Jamaica. Their deficit is running at about 8 per cent of the GDP. Another figure we have to watch is the current account deficit which, for the financial year just ended, was 19.2 of GDP, a deterioration of 3.9 per cent over the previous year.
As usual, government gives "a little something" to soothe taxpayers whenever it imposes taxation. It was a good decision to take the tax burden off PAYE employees. There are 1.3 million workers in the labour force of whom 323,000 are PAYE workers. For the workers, the income tax threshold is to be doubled from $220,500 to $440,000 by January 1, 2010, which means that an additional 85,000 people will no longer pay income tax, bringing the total to 132,000. Some 191,000 workers will take home an additional $55,000 per year. But there are nearly a million other workers outside the loop who are going to feel the bite of the tax increase on petrol. So when journalists asked Finance Minister Audley Shaw at his press conference whether the government would be considering increasing the fares charged by taxi operators, Shaw seemed upset by the question and referred the journalists to Transport Minister Mike Henry. It was a perfectly legitimate question, because in the past price increases in petrol have caused unrest as taxi operators passed on the increase to commuters.The truth is that the government should have discussed the matter with taxi operators before the tax and established a position prior to the announcement.
Another matter of concern is that up to the time of writing this column the additional list of items to attract GCT had not been completed. It seems to me that the list was put together hurriedly. When GCT was introduced during the Seaga administration in the 1980s, as communication consultant to the Revenue Board which was compiling the list, I noted that it took the team several weeks working long hours to prepare the list of items, including those which were zero-rated.
http://www.jamaicaobserver.com/columns/html/20090504T220000-0500_150776_OBS_PRODUCING_TO_SURVIVE_INSTEAD_OF_BORROWING.asp
Apart from the effects the global economic recession is having on Jamaica, the country's gravest problem is not producing enough goods and services to ensure economic stability and viability, yet it wants to enjoy a high standard of living mainly through borrowing upon borrowing.
All the statistics on the economy released by Finance Minister Audley Shaw in his 2009-2010 budget presentation point to the need for Jamaica to produce far more goods and services in order to survive, especially in the current world economic environment. The Gross Domestic Product is the most important barometer for measuring economic stability, in that it measures the value of goods and services produced by a country. If a country is not producing sufficient goods and services to maintain a level of economic and social stability, it cannot be said to be doing well. Jamaica is not doing well and has been borrowing money to survive instead of producing to survive.
The debt ratio to the GDP is staggering. At the end of March this year the ratio stood at 108.9 per cent. In actual figures, we owed $1.2 trillion dollars and we are still borrowing. Of a budget of $555 billion, $309 billion had to be reserved for debt payments. Under law, the first charge on the budget is debt servicing.
The expected revenue for the fiscal year will be $321 billion. Government will have to borrow $215.8 billion and impose $18.131 billion in taxes or 1.5 per cent of GDP to close the fiscal gap. The major portion of the revenue will come from an increase of $8.75 per litre in the Special Consumption Tax on petrol which is estimated to yield $13.3 billion, and broadening the General Consumption Tax (GCT) estimated to yield $7.5 billion. It has been widely recognised that the government has no other option but to increase taxes although the level of the increase in petrol prices and some of the items added to the GCT basket is being questioned. For example, it includes computers and books. This is unacceptable.
Some economists wanted the government to cut its spending, but others argue to the contrary that, like President Obama's administration, government should increase spending, give the economy a stimulus injection, especially in infrastructure development and create better conditions for increasing goods and services to improve the GDP standing. Hence this year 20 per cent of the intake from the SCT on fuel will be used on road rehabilitation, 35 per cent next year and 50 per cent in year three. There is also money for capital development, but many more incentives will be needed to enhance production appreciably. When Prime Minister Bruce Golding speaks in the budget debate today he is expected to announce other incentives to raise the level of the production of goods and services.
In his landmark contribution to the debate last Tuesday, Opposition spokesman on finance, Dr Omar Davies, proposed an economic recovery programme for national growth which would see an additional $6 billion added to the budget for capital programmes, including infrastructural works like draining, river training, reforestation and building retaining walls.
The programme, he said, could be financed by withdrawing $3 billion from the Universal Acess Fund and the Tourism Enhancement Fund. He suggested a tax regime which could result in the rolling back of the tax increase on petrol. Many people are calling Dr Davies' contribution as the most statesmanlike speech he has ever made in a budget debate, including those he made during his 14 years as minister of finance.
But to return to the importance of having a strong GDP. The fiscal deficit this year is targeted at 5.5. per cent of the GDP or $65.4 billion. Such a deficit is much too high for a small economy and shows that the country is living well above its means and has to increase its income considerably. The internationally accepted safe point is 3 per cent of GDP. We cannot compare our position with that of a large country like the United States which has a large economy and can cope with the problem better than a small country like Jamaica. Their deficit is running at about 8 per cent of the GDP. Another figure we have to watch is the current account deficit which, for the financial year just ended, was 19.2 of GDP, a deterioration of 3.9 per cent over the previous year.
As usual, government gives "a little something" to soothe taxpayers whenever it imposes taxation. It was a good decision to take the tax burden off PAYE employees. There are 1.3 million workers in the labour force of whom 323,000 are PAYE workers. For the workers, the income tax threshold is to be doubled from $220,500 to $440,000 by January 1, 2010, which means that an additional 85,000 people will no longer pay income tax, bringing the total to 132,000. Some 191,000 workers will take home an additional $55,000 per year. But there are nearly a million other workers outside the loop who are going to feel the bite of the tax increase on petrol. So when journalists asked Finance Minister Audley Shaw at his press conference whether the government would be considering increasing the fares charged by taxi operators, Shaw seemed upset by the question and referred the journalists to Transport Minister Mike Henry. It was a perfectly legitimate question, because in the past price increases in petrol have caused unrest as taxi operators passed on the increase to commuters.The truth is that the government should have discussed the matter with taxi operators before the tax and established a position prior to the announcement.
Another matter of concern is that up to the time of writing this column the additional list of items to attract GCT had not been completed. It seems to me that the list was put together hurriedly. When GCT was introduced during the Seaga administration in the 1980s, as communication consultant to the Revenue Board which was compiling the list, I noted that it took the team several weeks working long hours to prepare the list of items, including those which were zero-rated.
http://www.jamaicaobserver.com/columns/html/20090504T220000-0500_150776_OBS_PRODUCING_TO_SURVIVE_INSTEAD_OF_BORROWING.asp
Sunday, May 3, 2009
SOLUTION -Lessons from the 70's by Esther Tyson
Lessons from the '70s - Now our fear is global recession. Esther Tyson
Jamaica Gleaner Online
Lessons from the '70s
Published: Sunday May 3, 2009
Rice wars, flour wars, empty supermarket shelves, scarcity of goods, five flights a day to Miami, mass migration, emptied houses and captured houses.
This picture describes Jamaica in the period of the 1970s. We have lessons to learn from this time. Those among us who were not yet born need to learn from those of us who were here. These times with which we are faced are similar yet different. In the 1970s, the USA became the land of hope and promise for many Jamaicans. Stories are told of many Jamaicans who left their good jobs here to go abroad to serve at a gas station; some who left their comfortable homes to live in substandard housing in order to escape the fear they had of living in Jamaica.
This time, escaping Jamaica will not find us leaving our fears behind, because it is no longer an isolated situation belonging to Jamaica - it is worldwide. In the 1970s, the fear for many was that Jamaica was being transformed into a communist nation. Now our fear is global recession. Therefore, it makes no sense to run elsewhere to escape this fear; instead, we have some lessons to learn from that period on how to survive this recession.
Feeding ourselves
We need to find a way to feed ourselves. We need to teach our children how to grow their own food. Backyard gardening needs to become a way of life for those of us who have backyards. Those of us without backyards need to do container gardening.
At our school, we used to have a number of students doing agricultural science up to the CXC-CSEC level, but then the interest in the subject declined. Over the last few years, however, the students' interest in the subject has been revived. Students are transferring the knowledge learnt about gardening at school to their homes. More of our schools need to engage our students in the rudiments of knowing how to grow their own food.
In addition, we need to find ways to share the excess that we reap with others. We can do this by organising in our communities, or at work or at church, to determine who will be growing what at each growing period and then do an exchange with each other, so that nothing goes to waste.
Accessing reasonably priced dry goods
With regard to accessing reasonably priced dry goods, we need to find the wholesalers who are offering good prices for their products. We could again, in our groups, buy these goods wholesale and divide them among ourselves.
Instead of buying high-priced meats at the supermarkets, we need to find a source, possibly the market, or else a butcher where we can get it at a price more reasonable than is offered in the supermarkets. If we have to travel to a rural area to do so, this could be done even once a month, and again the group would cover the cost of the transportation. This could work out, even with the cost of gas, to be cheaper than buying in the supermarkets. In addition, we need to eat less meat and add more vegetables to our diets. In any regard, it is a healthier option.
With the price of petrol being hiked by the new tax, persons need to again use the strength of community to assist each other. We need to look at carpooling. If your neighbour's children go to the same school as yours, or if you work in the same area, arrange that you share the job of transportation. Half of the week you drive, the other half the neighbour drives. In the '70s, the gas guzzlers on the roads became a thing of the past. Those of us who are now purchasing vehicles need to look at the mileage that the vehicles offer per litre of gas as a criterion for buying them.
Furthermore, we need to learn to be satisfied with less and we need to 'tun our han mek fashion'. In an effort to conserve, we need to seriously look at recycling. Containers bought with one item can be reused to store other dry goods, etc. With regards to our clothing, we would save money if we remove worn collars and sew them back on the reverse side instead of discarding the item of clothing.
There are many other such ways that we can cut back on expenditure. The Jamaica Public Service gives tips to the country as to how to conserve on the use of electricity. Let us implement these in our daily lives.
A sense of community
What I am saying is that in these difficult times we need to develop a sense of community. We need to learn to depend on each other and support each other. That community can be geographical or it can be an organisation or your workplace. If you are one of the fortunate ones who are not affected negatively by this global meltdown, then you can help others in your community who are less fortunate.
Those of us who were here in the 1970s, and who survived in spite of the economic difficulties that the country experienced, need to share with others how we did this.
As the well-known song says, "No man is an island, no man stands alone, each man's joy is joy to me, each man's grief is my own. We need one another, so I will defend, each man as my brother, each man as my friend."
Esther Tyson is principal of Ardenne High School, St. Andrew. Feedback may be sent to columns@gleanerjm.com. Copyright Jamaica-Gleaner.com
http://www.jamaica-gleaner.com/gleaner/20090503/cleisure/cleisure5.html
Jamaica Gleaner Online
Lessons from the '70s
Published: Sunday May 3, 2009
Rice wars, flour wars, empty supermarket shelves, scarcity of goods, five flights a day to Miami, mass migration, emptied houses and captured houses.
This picture describes Jamaica in the period of the 1970s. We have lessons to learn from this time. Those among us who were not yet born need to learn from those of us who were here. These times with which we are faced are similar yet different. In the 1970s, the USA became the land of hope and promise for many Jamaicans. Stories are told of many Jamaicans who left their good jobs here to go abroad to serve at a gas station; some who left their comfortable homes to live in substandard housing in order to escape the fear they had of living in Jamaica.
This time, escaping Jamaica will not find us leaving our fears behind, because it is no longer an isolated situation belonging to Jamaica - it is worldwide. In the 1970s, the fear for many was that Jamaica was being transformed into a communist nation. Now our fear is global recession. Therefore, it makes no sense to run elsewhere to escape this fear; instead, we have some lessons to learn from that period on how to survive this recession.
Feeding ourselves
We need to find a way to feed ourselves. We need to teach our children how to grow their own food. Backyard gardening needs to become a way of life for those of us who have backyards. Those of us without backyards need to do container gardening.
At our school, we used to have a number of students doing agricultural science up to the CXC-CSEC level, but then the interest in the subject declined. Over the last few years, however, the students' interest in the subject has been revived. Students are transferring the knowledge learnt about gardening at school to their homes. More of our schools need to engage our students in the rudiments of knowing how to grow their own food.
In addition, we need to find ways to share the excess that we reap with others. We can do this by organising in our communities, or at work or at church, to determine who will be growing what at each growing period and then do an exchange with each other, so that nothing goes to waste.
Accessing reasonably priced dry goods
With regard to accessing reasonably priced dry goods, we need to find the wholesalers who are offering good prices for their products. We could again, in our groups, buy these goods wholesale and divide them among ourselves.
Instead of buying high-priced meats at the supermarkets, we need to find a source, possibly the market, or else a butcher where we can get it at a price more reasonable than is offered in the supermarkets. If we have to travel to a rural area to do so, this could be done even once a month, and again the group would cover the cost of the transportation. This could work out, even with the cost of gas, to be cheaper than buying in the supermarkets. In addition, we need to eat less meat and add more vegetables to our diets. In any regard, it is a healthier option.
With the price of petrol being hiked by the new tax, persons need to again use the strength of community to assist each other. We need to look at carpooling. If your neighbour's children go to the same school as yours, or if you work in the same area, arrange that you share the job of transportation. Half of the week you drive, the other half the neighbour drives. In the '70s, the gas guzzlers on the roads became a thing of the past. Those of us who are now purchasing vehicles need to look at the mileage that the vehicles offer per litre of gas as a criterion for buying them.
Furthermore, we need to learn to be satisfied with less and we need to 'tun our han mek fashion'. In an effort to conserve, we need to seriously look at recycling. Containers bought with one item can be reused to store other dry goods, etc. With regards to our clothing, we would save money if we remove worn collars and sew them back on the reverse side instead of discarding the item of clothing.
There are many other such ways that we can cut back on expenditure. The Jamaica Public Service gives tips to the country as to how to conserve on the use of electricity. Let us implement these in our daily lives.
A sense of community
What I am saying is that in these difficult times we need to develop a sense of community. We need to learn to depend on each other and support each other. That community can be geographical or it can be an organisation or your workplace. If you are one of the fortunate ones who are not affected negatively by this global meltdown, then you can help others in your community who are less fortunate.
Those of us who were here in the 1970s, and who survived in spite of the economic difficulties that the country experienced, need to share with others how we did this.
As the well-known song says, "No man is an island, no man stands alone, each man's joy is joy to me, each man's grief is my own. We need one another, so I will defend, each man as my brother, each man as my friend."
Esther Tyson is principal of Ardenne High School, St. Andrew. Feedback may be sent to columns@gleanerjm.com. Copyright Jamaica-Gleaner.com
http://www.jamaica-gleaner.com/gleaner/20090503/cleisure/cleisure5.html
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