Dennise Williams, Staff Reporter
Hughes and Byles
"IF WE can just deal with crime, everybody going to Heaven will stop here and not want to leave," states Dr. Wesley Hughes, Director General of the Planning Institute of Jamaica.
Dr. Hughes was the guest speaker at yesterday's Life of Jamaica (LoJ) Investment Seminar held at the Jamaica Conference Centre.
The main focus of the seminar was pension funds and its importance to the long-term prosperity of LoJ's clients and Jamaicans on a whole. In light of this, Richard Byles, chief executive officer and president of LoJ, announced that the company would be launching a retirement scheme for individuals not in a company scheme, and that LoJ would also have an Internet-based access to client accounts so that sales agents could answer questions in a more timely fashion.
However, it was Dr. Hughes' optimistic viewpoint of Jamaica's prospects that took centre stage. He explained that discussions regarding pensions were timely now that Jamaica is on a path of economic stability.
"I have a positive sense of the future. One of the good things that have quietly happened in Jamaica is that we are less in a crisis mode on a macroeconomic level. This means that we can focus on long-term planning."
In fact, Dr. Hughes believes that if crime were managed, Jamaica could have double-digit growth based on current trends. "Interest rates and inflation are trending down. Wage growth is moderate and in line with productivity. This has generated an increased level of savings and a positive sense about the future.
PENSION
"Therefore, we are now at a stage where we can talk about long-term growth. Before, pension discussion could not take place where uncertainty due to high inflation took place. I remember in the 1970s when we had to scramble to find money to pay for the current month's oil bill. At that time, speaking about pension and any other long-term investment was purely academic. Society can feel proud of this shift that has taken place."
Dr. Hughes then spoke on the way forward. "The future looks very bright if we can deal with two things crime and education.
"The Government has a vision for us to focus on economic growth and equity in society. But this is something that takes time and commitment. And for the short term, the Government is focused on getting the economy to be more efficient.
"I think today, after 20 years of reforms, that the Jamaican economy is fundamentally stronger. The economy is better regulated, more open and more efficient than 20 years ago. The economy is in a better place to meet global challenges if we can just deal with the crime problem.
"We have a social deficit. We must invest in the inner city and education. I will give a hint. The funding of education will be priority like housing was a priority in the 1970s with the establishment of the National Housing Trust. We have to fund education without necessarily taxing the population more. It may be a question of shifting priorities. We cannot have a future without improving the quality of the labour force."
