Wilberne Persaud, Financial Gleaner Columnist
Persaud
The usual nationalist suspects of conscience have grumbled about crime and the fact that all classes live behind bars, allegations of corruption in places high and low, environmental degradation, wanton waste of resources, maladministration and much more.
In the hope that we can begin a turnaround in 2007, I will look at the potential for private initiative to generate private wealth, while also benefiting the public good.
Bear with me a moment: take time to savour Adam Smith's 230-year-old prose in its exquisite clarity and precision. The Wealth of Nations was published in 1776:
"In all countries where there is tolerable security, every man of common understanding will endeavour to employ whatever stock he can command in procuring either present enjoyment or future profit. If it is employed in procuring present enjoyment, it is a stock reserved for immediate consumption. If it is employed in procuring future profit, it must procure this profit either staying with him, or by going from him. In the one case it is fixed, in the other it is a circulating capital. A man must be perfectly crazy who, where there is tolerable security, does not employ all the stock which he commands, whether be his own or borrowed of other people, in some one or other of those three ways.
Hidden stock
"In those unfortunate countries, indeed, where men are continually afraid of the violence of their superiors, they frequently bury and conceal a great part of their stock, in order to have it always at hand to carry with them to some place of safety, in case of their being threatened with any of those disasters to which they consider themselves as at all times exposed. This is said to be a common practice in Turkey, in Indostan, and, I believe, in most other governments of Asia. It seems to have been a common practice among our ancestors during the violence of the feudal government. Treasure-trove was in those times considered as no contemptible part of the revenue of the greatest sovereigns in Europe. It consisted in such treasure as was found concealed in the earth, and to which no particular person could prove any right. This was regarded in those times as so important an object, that it was always considered as belonging to the sovereign, and neither to the finder nor to the proprietor of the land, unless the right to it had been conveyed to the latter by an express clause in his charter."
We have indeed come a long way from Adam Smith.
The Private Sector Organisation of Jamaica (PSOJ) was created in the 1970s.
Carlton Alexander, head of the GraceKennedy business enterprise was instrumental in its creation. The period of its creation would not have been described by Adam Smith as one of 'tolerable security'. So the PSOJ organised to be the one voice for the Jamaican private sector to talk to and negotiate with the government of the day - to be advocate for the interest of the private sector, to create an environment of 'tolerable security.
This institution has come a long way since its beginnings. Its story ought to be documented before the rich oral history possibilities are all lost, or become incredible legend.
But in our 21st century, we need to move well beyond tolerable security. Was this what the recent leadership selection process of the organisation was about? Did the protagonists go about it in the right way? It seems as if Bill Clarke wanted change, and modernisation for the new economy. Chatter has it that a major concern among some was the possibility of too great a conflict of interest.
The art of politicking
Regardless, Clarke, at least, as reported in The Gleaner, appears to have missed out on the opportunity to learn the art of politicking. As reported, it seems that he simply thought a good plan announced as an ultimatum was sufficient to carry the day. If not OK, I can always take my marbles home. So Chris Zacca won out in the end.
But, here's the thing: If self-interest of the leadership's affiliated enterprise conflicts with those of other members of the PSOJ, then, at best, the leader of the PSOJ would be conflicted. At worst, he would be biased.
Since Clarke's enterprise is a bank, the likelihood of its interest conflicting with the membership seems remote.
The sovereign focus
For a bank, self-interest is a vibrant private sector - full stop. Since Zacca's enterprises are so diverse, the chances of conflicts with other members are greater in a purely probabilistic or statistical sense.
Yet, if the wider society is to benefit from active competition among business enterprises, those issues should not matter. This is why I thought of Adam Smith's tolerable security. His focus was the sovereign. Ours must not only be the sovereign, but also the citizen, particularly the corporate citizen relative to the sovereign.
The playing field should be level for all players. So, for the PSOJ, its choice might have been a dilemma; for Jamaica it is a 'multi-lemma'.
The easiest solution is often not the best.
All the best for year 2007!
wilbe65@yahoo.com
