Inclusive structure

After the research phase is completed, a forum is held with key stakeholders drawn from the private and public sectors, civil society and academia. This allows us to include these persons in the process, as well as for a broad spectrum of ideas to be discussed.

This activity is usually challenging to both parties, but out of this dialogue comes a research agenda that is informed by the highest scholarship but grounded in the daily realities of policy.

The forum is then followed by a focus group, which agrees on the agenda for the analysis phase. This process finally yields the policy recommendations which will be presented to policymakers.

While this may seem like a novel approach to the region, this process has been used elsewhere with much success. Its research-based, inclusive structure allows for critical input and participation of the wider society without slowing down or killing the process.

While it was previously reported that our methodology was strongly criticised, we would like to point out that our working paper was well-received by the private sector, government agencies and members of civil society present at the forum.

More important, these stakeholders have commended our efforts to bring the issue of foreign policy into the spotlight.

The working paper, Jamaica's Foreign Policy: Making the Economic Development Link (which represents the initial stage of our work) raises two critical points:

1) More transparency is necessary in how foreign policy decisions are made, to ensure that Jamaica derives maximum economic gain from its foreign policy activities.

2) Improved domestic management of foreign policy gains is required, e.g. trade preferences need to be translated into domestic economic growth gains.

The paper examined Jamaica's foreign relations from 1962 to present, looking at the country's early foreign policy when it was a recently independent state, and its subsequent relationships through the years with Europe, the United States, and CARICOM, as well as more recent relationships with Latin America (Venezuela, in particular).

In the context of foreign policy, the paper also looked at international economic relations, the bauxite levy and Lomé agreement (the bauxite and sugar industries), multilateral relations, and Jamaica's relationship with the IMF.

Some of the major lessons gained from this exercise and points for discussion are:

a) Foreign policy cannot be divorced from domestic policy

If you think about it, foreign policy and domestic policy cannot be separated from each other. Domestic policies provide the framework within which foreign policy outcomes can be translated into positive economic outcomes. So our policies should work to make this happen.

b) Development assistance and aid are relics of the past

Traditionally, Jamaica has been the recipient of significant amounts of aid and preferential access to both North American and European markets. During the Cold War, developing countries around the globe were able to expect development assistance and other forms of aid for simply proclaiming that they were 'with the West.' Since that time, the international political and economic systems have changed immensely. How that affects us is that Official Development Assistance is no longer an important category contributing to Jamaica's GDP.

c) The misallocation ofdiplomatic resources:

Jamaica is known internationally for its high visibility and engagement in issues pertinent to developing countries. Jamaica has, on numerous occasions, espoused a foreign policy predicated on ideology instead of pure pragmatism. Jamaica's visibility has, however, sometimes come at a high economic cost, particularly in the 1970s.

Significant amounts of diplomatic resources have also been spent on securing preferential agreements or extending these agreements when their status was challenged.

This has proven costly for two reasons.

First, preferences have not accorded the developmental benefits that were hoped for, and second, these very preferences stymied the development of more efficient and competitive industries.

d) Economic threats and opportunities: China, Latin America, Europe, and the USA (All that glitters might not be gold!)

"The world, it seems, is currently caught up in 'China Mania'. Discussions of development routinely point to China's developmental success and the fact that China is investing vast amounts into developing countries. China has, indeed, invested in many local ventures, but at a diplomatic level, we must ascertain how much benefit this engagement with China will provide in terms of aiding Jamaica's competitiveness.

Europe

Europe is gradually removing the preferences that we have relied upon for some time. The E.U. has indicated that it will direct aid to the Least Developed Countries. Jamaica ranks as a middle-income developing country. The challenge is for Jamaica to make the best use of the available aid and to continue lobbying for aid that directly assists in enhancing Jamaica's growth potential.

Latin America

Hugo Chavez is also attracting increasing international attention. Jamaica has, to a large extent, embraced Chavez and the credits accorded us under the PetroCaribe Agreement. This embrace of Chavez needs to be tempered with an injection of reality.

Three points are pertinent: 1) PetroCaribe is not a grant; it is a credit, and it is foolhardy to hope that we will not have to repay it. 2) Chavez's impact is inextricably linked to prevailing high oil prices. This point is supported by the fact that Chavez was elected to office in 1998 and only gained popularity in the last two or three years. 3) Chavez's rise and influence is based on a seeming 'cult of personality'. Chavez's influence and power is likely to pass and Jamaica must keep this reality in mind.

On a positive note, Jamaica could stand to benefit from the expansion of our contacts with Brazil. Brazil is one of the leading exporters of foodstuff, but the major problem thwarting the expansion of our imports of Brazilian products is the underdeveloped transportation links between the two countries.

North America

The U.S. and Canada remain the primary destination for Jamaican exports of goods and services. In addition, a significant percentage of the remittance flows to Jamaica originate in North America. Given these considerations, we should be trying to increase our economic linkages with North America, particularly with specific 'nodes' on the Eastern seaboard for the export of goods and services. In addition, the North American diaspora is very large. The effort to have dialogue with this section of the Jamaican citizenry should be expanded.

Recommendations

The forum and the report have generated a great deal of interest and even a stir among diplomatic, governmental and political circles. Unfortunately, many of the statements being touted as facts coming from CaPRI were brought on by erroneous reports of the recently held foreign policy forum, such as the suggestion that we close embassies. Nevertheless, what is clear is that there is a yearning on the part of many sectors of Jamaican society to have discussions such as these. With that in mind, we see the recent 'stir' as a positive development.