Jamaica's REEL problem
This where I begin to disagree,
When a sliding dollar becomes a good thing I think it fair for people to get worried. The rationale behind Jamaica's sliding dollar in relation to the US dollar is that this will allow for imports to become more expensive and for exports and local produce to become relatively cheaper. So the sliding dollar is justified, or is it?
If the aim is to boost aggregate demand in other words, boost local production why not focus on allowing the country to produce more? In order to do this we need to look at our business environment and confidence within our economy. This implies that government should be working earnestly to keep businesses open and to make it easier for persons to open new businesses.
Seems reasonable and practical doesn't it?
But another problem is that Jamaica wants to have a extended fund arrangement with the IMF, with a sliding dollar when we borrow a fixed amount in USD, we will eventually have to pay back more to the IMF. So our main goal should be to reduce all forms of debt repayment and the only way to do so is to give our foreign exchange market room to become positively effective.
Local business owners tend to feel disenfranchised by government as foreign firms who do not contribute profits to national income are the ones who gain the benefits of doing business. Sir Arthur Lewis, a Nobel laureate recipient was very insightful to say that we should encourage foreign firms to come in and help us develop, but Caribbean governments over the years have abused this model and have allowed foreign firms to 'steal away our riches'.
Here in Jamaica we have the potential to be an integrated and sea hub within the region, also we have the potential to be the largest manufacturer within CARICOM, but the only stumbling block is in adequate fiscal responsibility on the part of Government and we need to start growing our way out of our problems instead of borrowing. We have gotten too accustomed to living beyond our means, too accustomed to food imports and too accustomed to globalized cultures which stifle our small economy. As a country however there are things that we can tap into to make profits and some are as simple as making proactive copyright laws, sports tourism advertising and exporting labor
When a sliding dollar becomes a good thing I think it fair for people to get worried. The rationale behind Jamaica's sliding dollar in relation to the US dollar is that this will allow for imports to become more expensive and for exports and local produce to become relatively cheaper. So the sliding dollar is justified, or is it?
If the aim is to boost aggregate demand in other words, boost local production why not focus on allowing the country to produce more? In order to do this we need to look at our business environment and confidence within our economy. This implies that government should be working earnestly to keep businesses open and to make it easier for persons to open new businesses.
Seems reasonable and practical doesn't it?
But another problem is that Jamaica wants to have a extended fund arrangement with the IMF, with a sliding dollar when we borrow a fixed amount in USD, we will eventually have to pay back more to the IMF. So our main goal should be to reduce all forms of debt repayment and the only way to do so is to give our foreign exchange market room to become positively effective.
Local business owners tend to feel disenfranchised by government as foreign firms who do not contribute profits to national income are the ones who gain the benefits of doing business. Sir Arthur Lewis, a Nobel laureate recipient was very insightful to say that we should encourage foreign firms to come in and help us develop, but Caribbean governments over the years have abused this model and have allowed foreign firms to 'steal away our riches'.
Here in Jamaica we have the potential to be an integrated and sea hub within the region, also we have the potential to be the largest manufacturer within CARICOM, but the only stumbling block is in adequate fiscal responsibility on the part of Government and we need to start growing our way out of our problems instead of borrowing. We have gotten too accustomed to living beyond our means, too accustomed to food imports and too accustomed to globalized cultures which stifle our small economy. As a country however there are things that we can tap into to make profits and some are as simple as making proactive copyright laws, sports tourism advertising and exporting labor
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