ADDRESS
BY
PRIME MINISTER, RT. HON. P. J. PATTERSON, P.C., Q.C., M.P.
AT
JMA ANNUAL BANQUET
JAMAICA PEGASUS HOTEL
FRIDAY, MAY 7, 1993
UWI LIBRARIES
SALUTATIONS
Annual JMA BANQUET
- have earned grandfather's rights
- spoken as Minister for Industry
''when there was all pepper and
no salt.''
- as Deputy Prime Minister,
representing the Prime Minister.
- first occasion as Prime Minister.
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UWI LIBRARIES
Recently concluded General
Elections
- successfully behind
enables us to speak against
background of overvvhelming vote
of confidence and clear mandate to
lead the Government for a full fiveyear
term of my own.
The clarity of the outcome is beyond
question - but we must not overlook
the shortcomings which must be
corrected in our electoral machinery.
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My commitment to free and fair
elections does not rest on whether or
not it will affect the investment climate
- it is more fundamental than that. I am
not a latter day convert to electoral
reform - because I have always
believed that the right of the
Government to determine national
policy must be based on the consent
and the will of the people - fairly and
freely expressed.
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I remain committed to completing the
process of electoral reform commenced
in 1978.
The areas for improvement have been
clearly identified and the Government
has already accepted a number of
proposals in principle.
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Practical and sensible solutions are
within our grasp, but it would cause
further divisiveness rather than
promote unity were we to try and
impose these in the absence of
bi-partisan agreement and national
consensus.
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· This is precisely why the Electoral
Advisory Committee was created in
the first instance and why I have by
letter invited the Leader of the
Opposition from April 7 to let us meet
\¥ith our respective teams and settle
such questions as are outstanding, face
to face.
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Leadership of consultation and
consensus rather than confrontation.
Due recognition that the Government
must represent the interests of all
the people.
In the final analysis, it derives its
authority from the electoral will of the
people and it is to them that it remains
accountable.
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Freedom of speech and the force of
contending ideas must the fostered and
the more protected in a fledgling
democracy - but we cannot afford to
have talk as our number one industry and
stifle all efforts at growth and production.
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The better life we seek for all will only
be achieved by our creative
and the industry of our people.
.
energies
It should not escape attention that our
election success was not based on
reckless public spending or rash
. .
campaign promises.
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Despite the corrective measures which
we had the courage to undertake, we
were able to secure confidence in the
economic path on which we are
embarked and support for the social
programmes at varying stages of
implementation.
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ECONOMIC STABILITY
The economic environment, internally
an externally,
.
IS critical to the
development of business investment and
hence to national growth .
Our Government,
.
since 1989, em-barked
on an economic model, which we
remain determined to continue.
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UWI LIBRARIES
Even while in opposition, I played a
leading part in the several consultations
"\Vith all sectors that led to the
formulation of the policy. It therefore
enjoys my enthusiastic support. It was
not entered into lightly. There is no
intention to abandon it or effect
capricious changes.
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Today, ~e have just concluded
negotiations with the World Bank on a
structural adjustment loan to further the
process of liberalization, facilitate
exports and
.
improve customs
administration. It is expected that Board
ratification in early June will make
available a sum of US$75 million in
tranches and be complementary to the
Extended Fund Facility.
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We have long passed the point of no
return but not yet completely out of the
tunnel.
We are yet to achieve those levels of
sustained economic growth which
enable us to satisfy the needs of a young
population.
The boom in the financial sector is yet
to be reflected in productive expansion
and higher levels of domestic savings.
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There
.
IS a reduction of
unemployment overall but not so among
the youth and this is aggravated by
inadequate skill training.
Tight monetary policies and budgetary
constraints have imposed severe
restrictions on the pace with which we
redress social imbalances and create
adequate physical infrastructure.
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MUCH OF THE ECONOMIC NEWS
IS ENCOURAGING -
• Inflation is being brought under
control. We have done better than the 25
per cent rate of inflation targeted for the
last fiscal year. Provisional data indicate
that the turnout will be some 21.2 per
cent.
For the new fiscal year our target
will be 6.5 per cent.
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• We are yet to attain the ultimate
perfection of a foreign exchange system
where no semblance of a parallel market
exists. But, we live in a real world and,
after all, this is still Jamaica.
Despite the size and rates of
exchange on the parallel market, we must
all welcome the relative stability in the
foreign exchange rate that we have
enjoyed during the past 12 months.
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• There have been improvements in
the Net International Reserves.
• We have reduced the size of the
national external debt.
• We have increased the amounts in
our foreign currency accounts.
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• We have moved beyond a balanced
Central Government Budget to a Public
Sector surplus.
• We have reduced out debt service
ratio.
These are all indications that the
course we are following will bring the
desired results. We intend to stay the
course and reap the growth dividend.
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TOWARDS AN INDUSTRIAL
POLICY
The building of a sound and equitable
market-driven economy is not achieved,
as some would believe~ by Government
simply adopting a hands-off attitude.
Government must play a positive and
pro-active role in national development.
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UWI LIBRARIES
Even in the market economy, the
Government must be at the centre of
strategic planning for national
development. It has to establish that broad
policy framework which indicates
strategic areas and the potential for
competitive production.
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The industrial sector is of great
importance to our economy, both as an
earner of foreign exchange and as an
employer of labour. It has great potential
for further development.
The newly industrialized counties of
Japan and East Asia have attracted a great
deal of attention because of their
phenomenal export success. It is
generally acknowledged that the
industrial policy which they have
developed has made a
.
maJor
contribution to this success.
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While not suggesting that improving
the pef ormance of this sector can be
accomplished by imitation, it would be
foolhardy not to learn from the
experience of others.
Since the 1970's, Jamaica has
experienced stagnation
.
Ill our
manufacturing sector. Our effort to
switch from an import substitution to an
export- oriented strategy
.
Ill
manufacturing has met with limited
success.
This is due largely to the inability of
domestic industries to adapt to the changing
conditions in the international environment.
The growth of our manufac-
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tured exports has therefore been sluggish
in the face of the rapid growth in world
trade in manufactured products.
It is clear that to face the challenges of
the world today, we need a new industrial
strategy. We must develop a formula that
will bring about the necessary balance of
appropriate incentives, capabilities and
institutional support to stimulate the pace
and direction of industrial policy.
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An industrial policy will seek to guide,
shape and promote our industrial
development. It is not concerned with
short-term issues but rather "\Vith a longterm
strategy for industry, particularly
with regard to the development of
competitive industries in international
trade. It must involve the strategic
targeting of industries for increased
efficiency.
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We have initiated a process to
formulate an international competitive
strategy and action plan for Jamaica. Work
has already begun with the establishment
of a Technical Steering Committee being
co-ordinated out of the Office of the Prime
Minister.
The Technical Committee has begun
drafting the terms of reference for a
structured mechanism which will
facilitate the necessary public and
private sector and labour collaboration
in the development of such a policy.
UWI LIBRARIES
It is not intended to result in a
Government position but a national policy
on which we are all engaged.
To lay the groundwork for this policy, it
will be necessary to review past
strategies, our regulatory and legal
framework and other issues which
impact on the formulation and
implementation of the policy.
UWI LIBRARIES
We will need to examine the changing
international environment, emerging
economic and trading blocs, new and
emerging technological processes and
application and their implications for
growth and development. .
We need also to examine our resource
base - both human and material.
UWI LIBRARIES
We need to identify sectors in which
there is a comparative competitive
advantage.
We need to examine the role of incentives.
We need to look at the respective roles
of Government and private sector ins the
promotion and development process.
UWI LIBRARIES
I anticipate the active participation of
representatives of this organization along
with the relevant public and private
sector agencies in this vital exercise.
UWI LIBRARIES
CHALLENGE TO THE PRIVATE
SECTOR
• It is not only in the development of an
industrial policy that the private sector is
expected to be an active participant.
• There still lingers a tendency for all
sectors of our society to highlight the
symptoms of national problems and then
call on Government to find the solutions.
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UWI LIBRARIES
It seems as if we have not yet, as a
society, made the psychological
transition from the
dependency syndrome of prior years
to the realities of a market-driven
economy.
UWI LIBRARIES
• With freedom comes responsibility.
That it is a phrase often used makes it no
less true. This administration has been
keeping faith with the private sector with
regard to fashioning the
.
eco-nom1c
policies and legislative framework
needed for the development of a market
economy.
UWI LIBRARIES
• There are further steps which the
Government needs and is prepared to
take in creating an environment that
favour business and investment -
the reduction of red tape and
bureaucracy,
improvement in support
.
services,
reliable and efficient utilities,
clearly defined and secure
investment policies.
UWI LIBRARIES
• The private sector was very much in
the forefront of calling for a liberalized
economy, to exhort the Government to
make the transition and watch Jamaica
grow. But this growth will not be
forthcoming without the requisite action
by the private sector. For many, it will
require a full and active change of
attitude.
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• Let me suggest some areas in \Vhich
the private sector can take a lead and in
\Vhich I throw out a challenge to you
tonight to make things happen.
UWI LIBRARIES
The area of training and manpower. I
challenge the private sector to begin a
National Programme of human resource
development. You know what your needs
are in this area. My challenge to you
tonight is develop creative ways to
supplement
Government
the
.
Ill
efforts of the
providing the
requisite training needs of your sector.
UWI LIBRARIES
• The private sector too must play its
part as the engine of growth and
production:
* increase in investment
* enhance productivity
* greater market penetration
UWI LIBRARIES
• No nation can thrive without a healthy
work force. I challenge you tonight to
come up with fresh ideas as to how to
keep the work force healthy with
preventative health care.
• In the area of providing buildings for
industry, I challenge this group in
particular to findways and means of
providing these facilities without
reliance on the public purse.
UWI LIBRARIES
• Let us continue to work even more
closely together to build a strong economy
and a nation in which everyone can aim
to meet their goals for personal growth
and development.
UWI LIBRARIES
