JEF Convention

SALUTATION

Permit me to say that this year’s Convention and Expo is particularly timely.

Staged under the theme “Collaborate…Innovate – Opportunities for Growth”, it echoes from the standpoint of the Government the prevailing efforts over the past three years, in particular, to create new opportunities for mutually beneficial co-operation between itself and the private sector in order to achieve sustained economic growth, and the development of decent work environments.

So, in light of this, I am very delighted to be here this evening to bring brief greetings on behalf of the Ministry of Labour and Social Security; and, in so doing, wish to use the opportunity to reinforce the Administration’s push towards -

  • Economic reform
  • Efficient and steady growth, and
  • The promotion of a creative and “new” economy.

With this in mind, I very much suspect that the sub-theme throughout the next four days of learning and sharing will be how growth in its myriad forms in the economy can lead to the growth and development of private and public sector entities, and those who manage and lead them.

JAMAICA IS OPEN FOR BUSINESS

As Minister of Labour and Social Security, then, I have a perspective on the phenomenon of growth in the economy, which begins, with a rejection of the view calling for the halting of the Administration’s efforts to grow the economy under the existing International Monetary Fund (IMF) agreement.

For, as I see it, on the basis of the Government’s very strong and thoughtful commitment over the past two years to the IMF’s programme objectives, Jamaica today is one of the few countries in the world undertaking tough, but necessary, economic adjustments while maintaining relative social cohesion.

I go even further to say that anyone who doubts that this piece of ‘rock’ in the Caribbean Sea that we call home is today seriously open for business is a poor interpreter of our recent economic history.

ECONOMIC HISTORY

For truth be told, that history saw where for some 40 years the Jamaican economy experienced extremely low levels of economic growth, declining productivity, and reduced international competitiveness.

What caused this crisis was our unsustainable debt burden, which undermined confidence and elevated the risks to economic stability.

As a consequence, our high debt service ratio in these circumstances served to limit the Government’s potential to provide the services needed to achieve sustained rates of growth and increased welfare support and assistance to our most vulnerable and poor citizens.

In light of this, therefore, my view – and that of the Cabinet – is that given the present dispensation in which we are forced to operate as a nation, we have no option at this time but to endure a little bit longer the stringencies and fiscal discipline imposed by the Administration’s Economic Reform Programme (ERP).

And we should remember as well that the absence of such a Programme prior to now placed us not only among the most indebted nations in the world, but stagnated the economy for all of some 40 years, and placed it on the brink of credit default.

Happily, the Jamaican economy is a far cry from this reality as I speak.

A lot of our economic indices in the 2014-2015 period are demonstrating positive results of the country’s comprehensive Economic Reform Programme (ERF) under the four-year Extended Fund Facility (EFF) Stand-by Agreement with the IMF.

In other words, the journey of economic reform in Jamaica in the first decade- and- a- half of the 21st century has started.

ECONOMIC TRANSFORMATION

This means that the opportunity now exists for all Jamaicans – the private and public sector, the labour movement, civil society, and the Government - to join hands, hearts and brains in the transformation of the economy and society through collaboration at all levels and innovation in terms of research and development, to spur long-term growth and development and the decent work agenda.

And, lest we forget, the basis for such collaboration and innovation now exists:

  • The economy, at long last, is growing at a rate of 1½ % (one-and-a half percent) – setting the stage for the generation of confidence in the ability of the economy to achieve further levels of growth ( 1.6 percent annually over the next five years ) and stability.
  • Jamaica’s business and consumer confidence is at an all-time high with 65% of firms reporting that it is a good time to expand their productive capacity to take advantage of the future economic opportunities.
  • Investment plans have surged 10% higher than the prior peak of 55% set in the second quarter of 2014.
  • Inflation is beginning to trend downwards – from 9.3% in January of last year to 5.3% in January of this year- the lowest in more than 40 years.
  • Last year we were able to reduce our food import bill by some J$5 Billion, or 4.5%, over the corresponding period for 2013.
  • The country has achieved a debt –to-GDP ratio that is trending downward.
  • The current deficit has, over three years, declined from 13% of GDP to low single digit.

What is more, the Government, in striving for growth, is pursuing-

  • Sensible tax reform
  • Strategies to increase investments
  • The establishment of a Growth Secretariat to be responsive to the growth needs, and
  • The crafting of a Five-Year strategic plan for the Business Processing Outsourcing (BPO) sector – which has grown from about 11,000 employees to some 17,000 in the past three (3) years.

Mr. Chairman, this catalogue of progress does not in any way represent the panacea of our redemption from negative economic growth in 2015-2016 and beyond.

Rather, what it does represent is the teachable moment that if we really want to succeed as a nation in the economic reform process currently under way, then we have to come to see ourselves as building a national community of common destiny.

This is why we in the Ministry of Labour and Social Security wish for this Convention and Expo every success, and why further, JEF has our abiding commendation.

For at the end of this business Convention, it will have communicated the very important message that there is tremendous value in Jamaicans, and the citizens of CARICOM in general, embracing the human resource development principle of collaborative and innovative growth strategies in improving our economic and social condition.

SHARED COMMON VISION

I therefore expect, Mr. Chairman, that the leaders, entrepreneurs, professionals and academics who will gather here at this Convention over the next four days of learning and sharing will, through their presentations and exhibits, address in some detail the impact of partnerships in developing decent work environments through a shared common vision capable of creating growth at the level of the economy, the firm and the individual.

Now is the time to build a community of common destiny by seeking win-win co-operation and common development.

The old mind-set of zero-sum game should now give way to a new paradigm of win-win and all-win cooperation.

In other words, if Jamaica – and, by extension, CARICOM - is to truly succeed in the 21st century, the interests of others must be accommodated while pursuing one’s own interests; and common development must be promoted while seeking one’s own development.

CONCLUSION

I therefore end my comments, Mr. Chairman, where I started - this Convention and Expo is most timely, and its theme very apt, in view of the Government’s efforts to change the picture of Jamaica’s economy in the future.

That future, I submit, belongs to all of us and we must, together, own it with pride by participating in the deepening of the economic reform process through actual achievements.

After all, try as you might, a single tree cannot block the chilly wind.

So, on behalf of the Ministry of Labour and Social Security, I wish this Business & Workplace Convention and Expo every success, and hope that the participants will experience great fulfillment. Thank you.