Andre Haughton | Wealth creation through technology advancements and innovations

Jamaica is at a critical juncture in its economic life, similar to what it was in the 1960s when it missed the technological boom that China, the United States, Japan, Singapore, and other countries were able to capitalise on to advance their economies.

According to the World Bank, average real GDP growth over the past three decades has been 0.8 per cent, way below the 2.7 per cent growth in Latin America and other Caribbean countries on average. In 2015, the Government of Jamaica hypothesised to achieve GDP growth of five per cent per annum by 2019, but could not materialise this feat because the country’s policies do not target any high-growth industries.

With an aim of job creation, Jamaica was able to reduce unemployment to record lows, but has not been able to increase the value of output in any significant manner. As a matter of fact, GDP per capita in 2023 is less than what it was back in 2019, meandering around US$5,000, which is a serious cause for concern. A solid turn around is needed if Jamaica intends to increase per capita income to $13,000 to meet the Vision 2030 developmental goals. Jamaica’s economic developmental pursuit is intricately linked to its ability to harness emerging technological advancements, such as artificial intelligence (AI), blockchain, digital transformation and other innovations. These applications possess immense potential to propel Jamaica’s GDP forward and foster inclusive growth and wealth creation.

ON THE RISE

AI and machine learning are on the rise. According to a recent report by PwC, AI technologies have the potential to generate more revenue than the economies of China and India combined, adding up to US$15.7 trillion to the global economy by 2030. Artificial intelligence is programmes embedded in machines designed to think and learn like humans, enabling them to perform tasks and make decisions without being explicitly programmed. Data-driven insights from AI and machine-learning algorithms can significantly contribute to Jamaica’s economic growth pursuits by leveraging AI in key industries, such as financial services, producers of government services, tourism, healthcare, agriculture and others.

AI-driven solutions, such as personalised customer experiences and predictive analytics, enable businesses to gain deeper insights into consumer needs. An expansion of the AI family, Edge AI, which enables real-time decision-making and data processing, as well as reducing dormancy and enhancing privacy. Edge AI can be applied in various areas, including autonomous vehicles, smart homes, smart business processes and smart industrial automation. AI technologies will revolutionise industries and lay the foundation for heightened productivity gains across Jamaica. Industrial policy must be used wisely.

With Data Protection Act coming into play at the end of 2023, Jamaica must ask the question: are the government ministries, departments and agencies and local businesses ready? With the rise in cyber threats on the government, as well as on businesses in Jamaica in recent times, innovative cybersecurity technologies are becoming essential. These include advanced threat detection systems, security analytics, encryption techniques, and secure authentication methods. Data protection is also going to be important to accompany cybersecurity measures. Which will become essential if Jamaica embarks upon big data analytics. This involving extracting insights and patterns from large and complex datasets which has been on the rise globally. It helps businesses make informed decisions, understand customer behaviour, and optimise operations. Big data analytics can be applied across sectors, including finance, marketing, healthcare, and transportation.

BLOCKCHAIN

Blockchain technology can be used for more transparency and efficiency. Blockchain is a decentralised and secure digital ledger that records transactions across multiple computers. It offers transparency, immutability, and increased security, making it valuable in industries such as finance, supply chain. The global blockchain market is expected to reach $39.7 billion by 2025, as reported by Markets and Markets. Jamaica can leverage blockchain in finance, supply chain management, and public services to enhance trust, reduce fraud, and streamline processes. The Bank of Jamaica, for example, has digital currency that is not built on blockchain technology and therefore does not have all the security and other features.

Digital transformation and e-commerce present opportunities for Jamaica’s economic growth, but Internet coverage is a critical factor in realising their full potential. According to Statista, global retail e-commerce sales amounted to $4.28 trillion in 2020, showcasing the immense market potential. By embracing digital transformation, Jamaica can diversify its economy, stimulate entrepreneurship, and attract foreign investment. To address Internet coverage limitations, targeted efforts to improve Internet coverage across the island from the current 60 per cent to 95 per cent or more to unlock the potential of connectivity and Internet of things in Jamaica. These efforts should focus on expanding infrastructure, improving broadband accessibility, and fostering digital literacy to ensure inclusivity and maximise the benefits of e-commerce. According to a report by Grand View Research, the global IoT market is projected to reach $1.5 trillion by 2027. Embracing IoT can revolutionise sectors, such as agriculture, transportation, and energy management, driving efficiency, cost savings, and sustainable practices. For Jamaica to benefit from the IoT the government must engage public-private partnerships to expand Internet coverage. Investing in localised IoT infrastructure can bridge the connectivity gap, enabling Jamaica to leverage this transformative technology.

TRANSFORMING INDUSTRIES

Augmented reality (AR) and virtual reality (VR) technologies are transforming industries, such as retail, real estate, tourism, and entertainment. AR enhances the real-world environment with digital information, while VR creates a simulated environment. These technologies can provide immersive product experiences, virtual tours, and training simulations in Jamaica.

The renewable energy sector offers Jamaica a unique opportunity for economic growth while addressing sustainability goals. The global renewable energy market is projected to reach US$1.5 trillion by 2025, according to a report by Allied Market Research. Investing in solar and wind-power infrastructure can drive job creation, reduce energy costs, and attract environmentally conscious businesses. While Internet coverage limitations exist, efforts should be made to prioritise connectivity in areas where renewable energy projects are concentrated, enabling efficient monitoring and management.

These innovation and technological advancements hold immense potential for Jamaica’s economic growth and wealth creation. Efforts to bridge the digital divide should prioritise infrastructure development, public-private partnerships, and localised idiosyncratic solutions. As a nation we cannot allow ourselves to remain in our usual approach to national development. Critical decisions must be made. The ability to do so is always present, but the willingness by leaders has not necessarily been there. These plastic leaders are more inclined to line their pockets with crumbs rather than creating hefty meals that everyone can enjoy more. This should not be so in a country with so much potential. So many people believe in the Jamaican dream, but have been sabotaging themselves by warping their reality and their perception of what good leadership is about and how good leaders should approach national development. The time for change is now.

Andre Haughton is a senior lecturer in the Department of Economics at The University of the West Indies, Mona. He is also the People’s National Party shadow cabinet minister to Commerce, Innovation and Technology. Reach him via social media at @drandrehaughton on Instagram, Facebook, Twitter and LinkedIn. Send feedback to columns@gleanerjm.com.