THE EDITOR, Madam:
MINISTER PAULWELL'S attempts to create an Information Technology (IT) sector, by providing incentives for potential investors, and training to create a local labour force, demonstrates a proactive stance by his Ministry to create economic opportunities. In the context of a country struggling to keep pace with the needs of a largely dissatisfied electorate, the Minister must be given credit.
The IT sector can clearly provide benefits for many years to come and although the immediate opportunities will be located at the lower level of the technological base, the evolving nature of the industry offers many, higher end opportunities, with the right planning.
Ultimately however, the most critical variables influencing economic opportunities is a stable economic and social environment, infrastructure such as roads, ports, telephone etc., an effective legal system, and a trainable workforce. Incentives such as those proposed by the Minister usually makes the difference when these things are already in place.
I support Paulwell's proactive stance as I strongly believe that governments in developing countries must assume an aggressive approach to job creation, but this should complement the macro-economic fundamentals.
One fear is that Paulwell's attempts are likely to be undermined if not supported by the other areas of Government. If the Government does not work as a unit, both in setting objectives and working towards them, then initiatives such as this will be short-lived. Issues such as security, labour market reform, government red tape are all areas needing urgent attention.
Another issue is the need to act as a unit in negotiating with multi-nationals. They (multi-nationals) are very clear on what they want from countries such as ours. If the State does not act as a unit, we run the risk of giving away more than we should. Bargaining is critical when attracting foreign direct investment. We must be clear what we are giving away and what we are getting in return. This is a team approach, not confined to any single Ministry.
Finally, if the Government decides to adopt a proactive stance to enhance economic opportunities, there should be a close link between policies on trade, foreign investment, and industry. This is necessary to ensure a cohesive national economic strategy. Anything less will create a lack of focus and conflict between local and international investors, and units within the Government.
Good luck to Minister Paulwell.
I am etc.,
CHRIS TUFTON
E-mail: CCTufton@yahoo.com
Manchester Business School
Booth Street West
Manchester, England
Via Go-Jamaica
