Raymond Forrest, Contributor
Prime Minister P.J.Patterson making his contribution to the 2005/2006 Budget Debate in Parliament at Gordon House, on Tuesday, April 26. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
THE ROLE that a government should play in a modern economy can vary according to the type of economy that it wishes, as well as the level of the development stage that it is at. The current role that governments are expected to play in capitalist-like economies, at the start of the twenty-first century however, is clearly supposed to be one of an active enabler, and not an active provider.
An enabler, unlike an activist government provider, is supposed to set up the facilitating structures (economic, legal and social), that will allow the private sector to flourish and sustain economic growth.
Unlike its role as an activist government, where the government has a large part to play in providing jobs, undertaking competitive or monopoly economic activities, and generating large-scale investments, the enabling government is merely expected to promote the conditions that will achieve the macro-economic objectives that it seeks.
ROLE
Jamaica is at the point in its history where it is not quite clear whether its future role should be that of an enabler, or that of an activist government, wishing to jump-start major economic activities. I say this in light of frequent criticisms that the government is not doing enough to generate employment or that the government is stifling private sector growth through its onerous tax measures. On the other hand, there are also persons who believe that the state cannot absolve itself of major involvement in economic transformation as our local private sector is weak and/or unwilling to follow overseas investors, and spend large sums on the kind of social and capital expansion that will transform the Jamaican economy.
At this juncture of epochal change in Jamaica, with the transition from an agricultural era into a knowledge-based era, the country will clearly progress only if it makes substantial progress in developing areas like, transparent rules of governance, establishing widespread applicability of law and order .
Whether the social conditions are receptive enough for the kind of role that our government should play in becoming an enabler, is however, a major question at this time, and until that is settled, the island of Jamaica will continue to lag behind in achieving our expectations.
