Seam­less tran­si­tion to the for­mal econ­omy vi­tal

Jamaica Gleaner - - ENTERTAINMENT -

FI­NANCE AND Pub­lic Ser­vice Min­is­ter Aud­ley Shaw says the ease of do­ing busi­ness in Ja­maica must fa­cil­i­tate a seam­less tran­si­tion of busi­nesses op­er­at­ing in­for­mally to the for­mal econ­omy.

Speak­ing at the an­nual Lat­inFi­nance Caribbean In­vest­ment and Fi­nance forum at the Mon­tego Bay Con­fer­ence Cen­tre last week, Shaw noted that po­ten­tial en­trepreneurs were of­ten dis­cour­aged from uti­liz­ing the for­mal pro­ce­dures to es­tab­lish busi­nesses.

This, he said, was be­cause of bu­reau­cracy, while not­ing “clear and over­whelm­ing ev­i­dence” of in­for­mal prac­tices, par­tic­u­larly among mi­cro, small and medi­um­size en­ter­prises (MSMEs).

“What we find is that these en­trepreneurs of­ten re­sort to op­er­at­ing within the in­for­mal sec­tor, which has less pro­tec­tion for labour con­di­tions,” Shaw pointed out.

He said that placed them at a great dis­ad­van­tage as it ren­ders them more vul­ner­a­ble to labour shocks.

Hence the need to en­sure that the process for es­tab­lish­ing busi­nesses is more ac­com­mo­dat­ing, Shaw added.

BUSI­NESS REG­U­LA­TION

Mean­while, Bank of Ja­maica Gov­er­nor Brian Wyn­ter un­der­scored the im­por­tance of get­ting more in­for­mal busi­nesses reg­u­larised.

He said that was in or­der to en­sure that the coun­try is not, among other things, de­prived of po­ten­tial tax rev­enue.

Speak­ing with JIS News, Wyn­ter em­pha­sised that “it is im­per­a­tive that we find ways to bring peo­ple into the for­mal sec­tor, where we will def­i­nitely know who is do­ing what”.

In this re­gard, he agreed that “we have to cre­ate the en­vi­ron­ment that will make it eas­ier for per­sons want­ing to make the tran­si­tion from the in­for­mal into the for­mal sec­tor”.

Lat­inFi­nance is the lead­ing source of mar­ket in­tel­li­gence on the economies of Latin Amer­ica and the Caribbean.

It has cov­ered de­vel­op­ments re­lated to the bank­ing and cap­i­tal mar­kets in the re­gion for more than 25 years.

SHAW

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