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Part of the Government's efforts at improving the public transportation system.Bruce Golding, Contributor
The overall objective for the manufacturing sector as set out in the PNP's 1997 election manifesto was to raise significantly the performance of the sector through higher levels of investment, exports, employment and productivity.
There are no available data to measure the level of investment that has taken place since 1997. Major investment in expansion and retooling has been made by some large companies such as Wray & Nephew, Red Stripe, Jamaica Broilers and Grace Kennedy. At the same time, there has been substantial disinvestment resulting from business closures and the shift to non-manufacturing operations. Export of manufactured goods has fallen by over 30 per cent between 1997 and 2001 in both the traditional and non-traditional categories. Employment in the sector which in 1988 stood at 136,000 had fallen to 89,000 in 1997 and fell further to 83,000 in 2001. Total output of the sector has declined by four per cent since 1997 and its contribution to GDP has fallen from 16.4 per cent to 15.5 per cent.
Now to the specific policy measures promised in the 1997 manifesto:
Import duties: To eliminate import duties on non-competing raw materials and capital equipment. This has been done.
Trade financing: To provide access to trade financing through the Ex-Im Bank. Trade financing through the Ex-Im Bank has been increased to just under $3 billion in 2001.
Anti-dumping measures: To enforce effective anti-dumping legislation and import standards and use countervailing duties where necessary to protect manufacturers from unfair trade practices. The Government has made good on this commitment although illicit imports continue to pose a threat to local manufacturers.
Improvement in ground, sea and air transportation: The Government can claim relative success in terms of air and sea cargo facilities. Its efforts at improving ground transportation will be commented on elsewhere.
Modernisation of communications: A solid achievement, one might say, as continuing improvements have been made in telecommunications although they remain expensive when compared with those of our trading partners.
Improvement in the energy sector: There is no solid achievement here! The manufacturing sector has been disrupted by a spate of scheduled and unscheduled power outages for the past two years which are continuing as this piece is being written. Last October, the then Minister of Mining & Energy, Robert Pickersgill, declared that "power cuts are a thing of the past". He was shouting in the wrong jungle! In addition, the rising cost of electricity - some US 15 cents per kwh -- undermines the competitiveness of local manufacturers whose foreign counterparts enjoy rates as much as 50 per cent less and better.
Differential interest rates for the manufacturing sector: This has not materialised. The additional credit yielded by the reduction in the cash reserve requirements imposed on commercial banks have been routed through the Development Bank of Jamaica primarily to the large hotel sector and to finance high-profile government projects and road repairs contracted on deferred-payment arrangements. Concessionary funds made available through some commercial banks, limited though they are, have not been taken up because of stringent qualifying requirements.
Restructuring of modernisation programme: A few additional incentives were added to the Industry Modernisation Programme administered through JAMPRO which has been in place since the 1980s. The general thrust and impact of the programme, however, has weakened considerably.
Mineral expansion: The 1997 manifesto promised direct foreign investment of more than US$60 million in the mineral sector. Some investment has taken place, especially in limestone extraction and processing but we are nowhere near the US$60 million promised.
Provision of new industrial space: The industrial park promised for central Jamaica has not materialised. The first phase of the Portmore Informatics Park was completed in 2000. It was expected to provide employment for 3,000 persons. It has, however, achieved very little, its principal intended occupant being the ill-fated Jamaica Call Centre. The promised expansion of the Montego Free Zone was carried out. So, too, was the completion of the Small Business Industrial Park at Fellowship Hall.
Apparel sector: The PNP promised to restructure the apparel sector to improve competitiveness, increase value-added and provide new jobs. It has failed! The apparel sector is shrinking rapidly. Companies continue to close down operations with two more doing so as recently as last month. Apparel exports have fallen almost 50 per cent from US$532 million in 1997 to US$289 million in 2001 and employment levels have similarly nose-dived.
MUSIC, CULTURE, ENTERTAINMENT & SPORTS
In its 1997 manifesto, the PNP promised to transform the music and entertainment sector into a cohesive industry, whatever that was intended to mean. It was to have involved the development of a national policy on culture and entertainment, more financial and institutional support for cultural activities and a review of the copyright and intellectual property legislation.
No national policy has yet been enunciated. Budgetary support for cultural institutions such as the Jamaica Cultural Development Commission (JCDC), Institute of Jamaica, National Library and the Edna Manley College has declined in real terms. Duty concessions were granted on imported musical instruments and related equipment and some measures were taken to streamline the copyright and intellectual property provisions. Other than that no real impact has been made on the music, culture and entertainment sectors. They proceed largely on their own steam with the commercially profitable segments doing well while others languish for lack of support.
Apart from the new, impressive Montego Bay Civic Complex, the promise to provide physical infrastructure for cultural activities in communities and all parish capitals has not materialised.
The promise to establish at least two sports complexes in each parish has not been kept. The work which started on the VIF-funded sports complex for Montego Bay two years ago has stalled. Some improvements have been done to existing sports grounds in various parts of the island through the lottery-funded Sports Development Foundation and Lift Up Jamaica programme but the manifesto promise remains largely unfulfilled.
EDUCATION
Early childhood education: The PNP promised to place greater emphasis on early childhood education. While more needs to be done, it can take credit for increasing the share of the education budget allocated to early childhood education from 3.3 per cent in 1997 to five per cent in 2001, providing increasing numbers of trained teachers for basic schools among a number of other initiatives.
Full primary school enrolment by year 2000: This has not been achieved. The Survey of Living Conditions (SLC) reports that primary school enrolment for 2001 has declined to 91.1per cent - below the average of 92.7per cent recorded over the last decade. It identifies the reason for this as the fact that 6.7 per cent of primary age (6 -11 years) children are enrolled in early childhood facilities. The SLC reports that this is the highest level ever recorded and urges further investigation. One possible explanation is the shortage of primary school places at the right places resulting in children remaining longer than they should in basic school.
Continued tuition-free primary education: Somewhat of a no-brainer but still a promise kept.
GSAT to be introduced to replace Common Entrance Examination: This has been done.
Guaranteed availability of five years of secondary education to all by 2002: The PNP will argue that this has been done with the "upgrading" of all-age schools to "secondary" status but the facilities, equipment and teaching staff required to support curriculum delivery at secondary level lag far behind. Hence, the quality of the education offered is still well below what we have come to regard as "secondary" schooling.
Recent articles by Professor Stephen Vasciannie speak poignantly to this fact. In addition, the tuition requirements and the inadequate arrangements for state assistance have rendered what is supposed to be "available" inaccessible to many children of the poor.
Increasing the number of graduate teachers: The Government can be credited for increasing the number of graduate teachers from 2,700 in 1997 to over 3,800 in 2001 - an improvement of over 40 per cent.
Establishment of undergraduate degree programmes in Teachers' Colleges: This promise was reinforced by Education Minister Whiteman in September 1999 in an address to the Joint Board of Teacher Education. He reiterated it in September last year while addressing the Lasco Teacher of the Year award ceremony. It is a promise yet to be fulfilled.
High school equivalency programme: This programme was intended to provide opportunities for adult learners and school dropouts. It is not yet in place although the Prime Minister said in his budget speech in May that it will be introduced this year and will be ready to accept students in the latter part of 2003.
Computer literacy: The PNP pledged that all school leavers will be computer-literate by 2005. We have only just begun that journey with the provision of a limited number of computers in every school. Many more computers and teachers will be required if it is to be a compulsory course or if all students are to have sufficient access to computers to facilitate computer training.
School refurbishing: The PNP promised major refurbishing of all Government-funded schools. While it has increased budgetary provisions for repairs and refurbishing since 1997 to an average of $500 million each year, this has not been sufficient and many schools in need of repairs, particularly in rural areas, have not been touched.
Doubling the number of persons with tertiary training in 15 years: This is a target adopted by all CARICOM countries. The Prime Minister says that the figure for Jamaica is now seven per cent although I can find no statistical source for this. To reach this goal, much more would have to be done than has been achieved in the third term. Between 1997 and 2001 tertiary enrolment increased by less than five per cent.
Improved remuneration for teachers: While teachers' salaries are still not adequate, the Government must be given credit for effecting substantial improvements.
Bruce Golding, a businessman and radio talk show host, is a former Minister in the Jamaica Labour Party (JLP) Cabinet of the 1980s and former president of the National Democratic Movement (NDM).
