Use Global Slowdown to Transform the Economy for Growth – FSC Head

Executive Director of the Financial Services Commission (FSC), Rohan Barnett, has said that Jamaica must use the period of the global economic slowdown to work to transform the economy and position the country on a path towards sustained growth.
Mr. Barnett, who was representing Finance and Public Service Minister, Audley Shaw, at Guardian Life Insurance Limited’s ‘Stars Luncheon’ at the Terra Nova Hotel in Kingston on Tuesday (Feb. 3), said that “this is not a time to roll over and play dead. It’s not a time to talk our people into despair, and our economy into deeper depression”.
“Obviously, we have to be in a position where we’re prepared for the rebound in the market. To be prepared and ready, we must create a wholesome economic space, we must correct the inherent weaknesses that have handicapped us for too long,” he pointed out.
Stating that economic growth was the “only real solution” to the country’s problems, the FSC head said that Government is pursuing reform policies, which are tailored towards increasing fiscal responsibilities, and reducing debt and achieving sustained growth.
He noted further that the social partnership for transformation, involving the Government, the opposition, the private sector, the trade unions and civil society, is set to gather momentum, as stakeholders become more cognisant of the urgent need to establish a stable and safe economic and social environment.
“This, we believe, will form the sure foundation for rapid investment, economic growth, job creation, social equity, and justice,” he argued.
Stressing that the prevailing challenges “can’t go on forever” and “those of us who prepare today, will prosper tomorrow,” Mr. Barnett said that now is an opportune time for entities to implement programmes such as worker skills training, technology upgrading, and research and development.
“More companies must now expose themselves to programmes such as the Private Sector Development Programme (PSDO), and the Quality Jamaica Project, which includes training in Hazard Analysis Critical Control Point (HACCP), as well as the modernisation of industry programme. We must sharpen our focus on increasing productivity in order to achieve international competitiveness, niche investment opportunities, in addition to our traditional exports and markets, in which we have established a strong presence,” he underscored.
Citing sectors, which present the potential for growth, Mr. Barnett said that the manufacturing sector is diverse and modern, with furniture manufacturing, in particular, presenting a very lucrative option, given the growth of tourism and other industries that have direct linkages to this area.
He also pointed to opportunities in agro-processing, food processing, beverages, and tobacco, pointing out that the food processing sector grew by 3.3 per cent in 2007, while growth in the beverages and tobacco sectors stood at 1.8 per cent.
“Continued growth in these sub-categories is expected due to the anticipated increase in food production. That drives the notion that we can, indeed, produce more food to feed ourselves, feed the region, and increase our market share. This is the time for that,” the FSC head stated, while also citing bio-technology as another area of opportunity.