THE EDITOR, Sir:
I MUST take this opportunity to congratulate staff reporter McPherse Thompson on his well-timed article, 'Remittances needed for development,' in the September 18 issue of your newspaper. The importance of remittance to the Jamaican economy can never be overstated. Foreign exchange is indeed, the lifeblood of the economy. However, the government must do more to increase the inflow of foreign exchange via remittance and other legitimate means.
For Jamaicans abroad to invest more in their country, there has to be a lot more incentives to do so. Appealing to patriotism is simply not enough. The world has changed drastically over the last few decades. Unfortunately, people now are increasingly asking 'What can a country do for me,' rather than 'What can I do for my country?' This kind of thinking has led to mass migration around the world.
As a Jamaican living in the USA, I have persuaded close friends and associates to invest in Jamaica. In talking to many Jamaicans, the following are some simple but very effective factors that can help to attract foreign exchange to the island. Some of the items below are already outlined in Mr. Thompson's article. This only serves to reinforce their significance.
1. There has to be 100 per cent perception that money invested in banks is safe. We cannot have a repeat of the former Century National Bank. An increase in the amount for deposit insurance can help alleviate this problem.
2. The banks in Jamaica should have avenues where foreigners could remit money for free if it is going into saving or investment accounts.
3. A major reduction in crime rate is needed.
4. A compilation of various investment opportunities (small and large). This can be from joint ventures in construction projects, tourism, short-term capital investment, government projects, and so on. Not many people are interested in peanut farming.
5. No taxes on capital investment dividends. No fees for entrepreneurs.
6. An attractive retirement programme.
7. Custom incentives, for example, no hassle on personal items for proven foreign investors.
8. Political stability.
9. A free flow of capital to and from the country.
Absolutely no government interference, unless there are questionable transactions.
10. Again; the banking system has to be stable or perceived to be so.
My research has shown that there are several small South American countries which are aggressively competing for the foreign dollars, and are doing a good job of it.
Beautiful beaches, golden sunshine and patriotic sentiments do help, but people are looking for much, much more.
I am etc,
ALVIN BUCHANAN
alvinb@htn.net
Via Go-Jamaica
