Holness’ conundrum
PM claims country in lag period between strengthened economy and translation to household benefits
Published:Thursday | February 15, 2024 | 12:13 AMKimone Francis/Senior Staff Reporter
Prime Minister Andrew Holness says his administration is facing a real “conundrum” of turning frowns into smiles even as it presides over a strong economic policy that has pulled Jamaica back from the “brink of bankruptcy”.
Noting a record-low unemployment rate of 4.2 per cent, creating 150,000 new jobs since 2016, an improved credit rating of BB-, 10 consecutive quarters of economic growth, a balance of payments current account surplus of US$352 million, and a near 74 per cent debt-to-GDP ratio, Holness said getting inflation within the targeted band of four to six per cent will be the linchpin between a solid economy and Jamaicans benefiting from it.
The prime minister, who noted that he would use the occasion to campaign, said it was evident that all economic metrics are headed in the right direction and that these will determine how Jamaicans feel about the economic gains.
He said there is a sense that his Government has done well in terms of its economic policy, but translating the positive statistics into smiles is the bottom line.
“That’s the real issue,” he told dental professionals yesterday during the Jamaica Dental Association’s 60th Annual Dental Convention.
He said there is a lag time between attaining a strong economy and translating this into household benefits, noting that the country is now moving through that period.
The prime minister said that, for the last decade, Jamaicans have worked collectively to put the country in a solid economic position.
The next decade, he said, is to continue strong economic management while, without engaging in reckless spending or spurious programmes, using the dividends to make the lives of Jamaicans much better than they are now.
He said there is an ‘impatience in democracy’, which keeps countries free, especially where there are high levels of frustration, but noted that this also creates problems.
Holness said Jamaica has been in this situation before where the economy is positively turning, but equally, social pressures are increasing.
He said that in these instances, the politics tend to tilt towards the social pressures, which, in turn, undermines the economy.
“We must maintain our strong and well-performing economy,” he urged, asking the question at the same time, “How do we solve this kind of conundrum?”
He said the issue has coincided with the political season, which often leads to overpromising, which upends economic stability.
His reference to the political season was in relation to the local government elections set for February 26.
Holness said his Government has created a platform of a “caring economy”, which looks at a social safety net.
Under this, Holness said the benefits of the Programme of Advancement Through Health and Education have increased, the number of medications covered by the National Health Fund have increased, and there is now a prosthesis and dental programme in place as well as a social housing programme.
On the issue of poor road surfaces which, he said, has caused many Jamaicans not to smile, the $40-billion SPARK (Shared Prosperity through Accelerated Improvement to our Road Network) programme is expected to address their plight.
Under the programme, $150 million is allocated to each constituency for road repairs.
“This $40 billion will improve the driving experience in Jamaica,” he said.