The PSOJ today
SINCE ITS birth in 1976, the PSOJ has transformed itself in many ways as it has adapted to the environmental shifts. The formation of the PSOJ in 1976 was done at a time when there was a more adversarial relationship between the private sector and the Government. At that time, there was a perception in some quarters that government policy was hostile to business, and, as a result there was uncertainty about business prospects in the island. It was a time when Jamaica’s economy was declining and there was a strong social transformation happening. This social transformation created some amount of hostility between society and holders of capital.
At that time, we operated in a closed economy of sorts, as much of the world’s economies, and there was a great deal of protectionism. During the 1970s, the economy also declined by over 21 per cent and the exchange rate was depreciating as a result of a shortage of foreign exchange. All of this culminated in the general election of 1980, where more than 700 persons were murdered, amid heightened political and social turmoil. And so, the PSOJ was born in an era of confrontation and turmoil, and out of the necessity to create a single powerful private-sector lobby that would advocate on behalf of the private sector.
Fast-forward to April 2016, when PSOJ celebrates its 40th anniversary, and the core role of the PSOJ has not changed, in that we still see ourselves as a strong advocacy voice for the private sector and our members in particular. What has changed, however, is the relationship between the private sector and government, and the method by which we seek to advocate for a better environment for doing business. This change has been necessary over the years to remain relevant, as the issues we confront today are not the same as 40 years ago.
Today, we operate in a world of free trade, market-driven exchange rates, significantly less social barriers, and market-driven policies. In addition, there is a much more collaborative approach to governance between the government and private sector. In fact, this has seen the establishment of several very successful public-private partnerships such as the Economic Policy Oversight Committee (EPOC), Partnership for Jamaica, Energy Sector Enterprise Team and several other public-private committees. The private sector has, therefore, become more and more a part of the governance structure of the country and this has demanded a different method of engagement. Since the Great Recession of 2008, the private sector has also worked with the Government on the two debt exchanges and monitored closely our economic reform programme through the EPOC. Today, the PSOJ seeks to influence government policy to create a more facilitative business environment through consistent dialogue and partnership with the policymakers. Of course, we still speak out on matters of national importance and will continue to do so.
After 40 years of existence, we still maintain the motto, ‘Free Enterprise. Watch Jamaica Grow’, which is as relevant today as 40 years ago. And we still represent the major companies and almost all the associations in Jamaica. The only difference is that we have adapted to the changing global and local environment in the way we advocate for an improved business environment. It is this ability to adapt over the years that has resulted in the PSOJ and our members still being very relevant today and growing. WILLIAM MAHFOOD President The Private Sector Organisation of Jamaica