From left, Clarke, Pennicook, and Jarrett
Dennise Williams, Staff Reporter
THE INSTITUTE of Chartered Accountants of Jamaica (ICAJ) held their forum on 'Accounting for Crime', November 27, at the Hilton Kingston Hotel. The forum was designed to facilitate far-reaching discussions on the cost of crime.
According to ICAJ president, Linroy Marshall, "It is envisioned that this forum on crime will heighten the consciences of Jamaicans as it relates to the reality of the significant losses being incurred by individuals, businesses and the economy in general as a result of the increasing levels of crime." The presenters looked at the wide-reaching effects of crime. Crime, both violent (guns, knives, stones) and non-violent (corruption, extortion, money laundering) was touched on by the presenters.
The nature of crime in Jamaica is so pervasive that Oliver Clarke, O.J., himself a chartered accountant, noted that, "Crime is washing up this place." He made particular note to the audience comprised of accountants that, "some of you here are working for firms employed in money laundering."
Earl Jarrett, general manager of Jamaica National Building Society, outlined the impact on crime on investments, specifically the dwindling quality of the labour force. First, he stated that investors want an orderly nation, one that is favourably regarded in the international marketplace. Investors also desire a skilled workforce with reliable work attitudes. However, the situation in Jamaica is not to that level. Explained Mr. Jarrett, "The present Jamaican reality is that labourers were most at risk for murders in 2001. The largest number killed in crimes in 2001 were young persons aged 21-25. Additionally, there has been an increase every year since 1997 in the number of violent crimes committed by youths 17 years and under."
Mr. Jarrett also highlighted the fact that over the last 10 years, 100,000 Jamaicans have migrated. "It is my understanding that 70 per cent of qualified Jamaicans live outside Jamaica." This means that investors coming to Jamaica will be required to pay more for security to keep their employees and businesses safe. Investors will also be required to pay a premium to qualified Jamaicans who choose to stay in the country. This pushes up the cost of doing business in Jamaica and makes the country unattractive.
Paul Pennicook, Director of Tourism, looked at the cost of crime, especially violent crime, on Jamaica's 'golden goose'. "The all-inclusive concept, which is a vacation paid for in advance, came about because of crime and the deteriorating social conditions of Jamaica. We have so much to offer that it is a shame to tell tourists to come to Jamaica and lock themselves up. But crime is seen as the biggest challenge to Jamaica today."
Mr. Pennicook admits that crimes against tourist have decreased year after year, but the biggest effect crime has on tourism is much more dangerous and expensive. It is the opportunity cost of lost business. Mr. Pennicook continues, "When something happens and is published, the cost to the business is the tourist that doesn't come to Jamaica. We don't know the number of people who would come to Jamaica but then change their minds. That number is very high. During the West Kingston violence of July 2001, the same evening that the first media reports went out, Ritz Carlton lost US$1 million in bookings. After that melee, a US$13 million ad campaign was needed to combat the negative publicity of that incident." But, before crime and violence can be eliminated, an understanding of the individuals who commit crimes is needed.
Professor Barry Chevannes, Dean of the Faculty of Social Science at the University of the West Indies explained, "The gun has become a part of our culture. The gun has meaning and power. It gives masculine power over weaker men and sexual power over women (this information was surprising to some members of the audience). Everybody in certain communities has a gun or wants a gun. When you take the gun away from a guy, the next day he buys another one."
But there is a way out. The presenters gave suggestions for the way forward.
Said Jarrett, "We need a large investment in the National Security over the next three years. The police need more cars, men and sophisticated technology."
Mr. Chevannes stated that the way out from under the siege of crime was to, "have an inner city renewal which includes housing mixed with all classes of Jamaicans as residents. Additionally, we need to create jobs, skills and remedial education for the residents of the inner city.
