CONCLUSION

After five years of reforms under two IMF programmes, Jamaica has not reaped the expected dividends to break us out of the decades-old low-growth pattern. Macroeconomic stability, while necessary, is clearly not sufficient to guarantee higher growth.

However, as our macroeconomic situation improves, Jamaica must now focus on removing impediments to the growth of our local private sector, and especially the MSMEs which can deliver inclusive growth, jobs, and innovation.

While crime and education will likely require a medium-term horizon for sustained improvements, the oppressive taxation and bureaucratic regulation which drives MSMEs to informality can be addressed in the short term.

Government contracting which prefers locals can be addressed in the short term. As our macroeconomic situation improves, Jamaica must be more discriminating in the type of investor and investment that we solicit and encourage, particularly where that investor will dominate a sector.

The minister of finance has abandoned talk of five per cent growth per year within four years (5 in 4) along with his previous position as deputy chair of the Economic Growth Council, and is now pitching a new term – economic independence. If the minister is serious, then he should realise that true economic independence means that Jamaica should not behave like a capital-starved country. We should not allow capital to be ‘weaponised’ in a sort of ‘debt trap diplomacy’, and be used by others to obtain advantageous access to our market.

Economic independence cannot be about opaque contracts and predatory loan practices that mire our nation in debt and undercut its sovereignty.

We must instead seek investment that develops sustainable growth, strengthens the rule of law, and builds our capacity to stand on our own two feet.