Revised export policies help boost economic growth
06 Oct '06
2 min read
Country's leading business personalities discussed modes in which both the Government and private sector could incite better economic growth and resolved for a more collaborative and structured export policy.
They wanted a clearly defined export policy and some form of import substitution because the country certainly has a balance of payments problem.
They suggested that since there are no export policies or manufacturing policies and the business sector, the banking sector and the Government should provide incentives to companies that export their products.
They felt, it was vitally important to tie export policy into education and educate the Jamaican workforce for the industries of the future.
The fundamental issues facing Jamaica is that they have to redefine what should be exported apart from bananas and sugar as both Ireland and Singapore do very little cultivation but have grown their respective economies.
The country's two biggest exports are agriculture and tourism and therefore should curb high import duties on meals and drinks provided to guests.
If one looks at the correlation between income and exports, countries that export more enjoy better incomes.
Over the last 30 to 40 years, the only new export that has led to some kind of policy is the garment industry, which is no longer sustainable because garments can be produced cheaper elsewhere.
According to them country's policy-makers must fully understand that they have to create wealth and cannot borrow our way out of our problems.
The private sector of Jamaica looks out for its own self-interests and ignores everything else and many big companies even do not pay their taxes on a timely basis which have to be looked into.
The world is weary of hearing about Jamaica's problems and lack of growth and hence at least now the country must have a sustainable plan to grow its economy.
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