New Directions

Volume 12 | Issue 4 Article 17

10-1-1985 Under Seaga: 1981-1983 Linus A. Hoskins

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Recommended Citation Hoskins, Linus A. (1985) "Jamaica Under Seaga: 1981-1983," New Directions: Vol. 12: Iss. 4, Article 17. Available at: http://dh.howard.edu/newdirections/vol12/iss4/17

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26 By Linus A. Hoskins

rime Minister [Edward] Seaga viewed his [1980] election as “a declaration against Commu­ Pnism in Jamaica” and promised a moderate government following a nonaligned policy of good relations with all.1 Describing his party’s victory in the October 30, 1980 general elec­ tions as “an overwhelming mandate by the people of Jamaica,” the prime minister has insisted that the victory enabled his government to “give the people the policies and programmes necessary to restore the economy.” In his first official address to the people, he said: . .. We hope to offer, in this new era o f our political life, the people of famaica a principled government. We hope to offer the people o f Jamaica in this new era creative government. We hope to offer a government o f sanity. We hope to offer a government that knows where it is going and can say so with conviction and with credibility. We hope to offer a govern­ ment that will not have hostile relations with the international fora o f the world, but will have good relations with the international community of nations and we hope to offer a government that has no quarrel within our domestic situation with those particular segments o f our society which are the roots o f our demo­ cratic system and our constitutional proc­ ess . . .2 According to some political observ­ ers, Seaga’s landslide election victory represented “a mandate for (his) free enterprise programmes and a rejection of the socialist experiment of the former administra­ tion, which was accused of spreading poverty instead of wealth”.3 The prime minister has indicated that his victory and similar conser-

NEW DIRECTIONS X T O B E R 1985 vative swings in the Caribbean were “a ment but is also determined not to take obsession with the spread of “Com- 27 message that we are ready to contain a “high profile in any single direction”. munist imperialism” is directed the expansion of Cubanism” and that By adopting this “constructive role”, toward Castro’s . Indeed, the move away from the influence of the administration seeks to avoid “the throughout the 1980 campaign, Seaga the Soviet Union and Cuba has gained advocacy of one cause or the other threatened the Cubans by warning that momentum because of economic mis­ which could prejudice (its) ability to they would not be welcomed “if they management under socialist regimes. conciliate” its own national interests. are becoming involved in (Jamaica’s) Seaga has said that another reason that domestic politics” and are bent on ex­ he Seaga administration is also Cubanism has failed to win support in porting revolution to the region. determined to stymie the the Caribbean was due to socialism’s “interference of foreign . . . I f Castro wants to be accepted in “ideological incompatibility” with powers in (its) domestic this region, then he must be able to prove Caribbean peoples’ thinking and he T his credentials by not exporting revolu­ affairs” and guided by the “greater reassured Jamaicans that with his elec­ principle of moral judgement”, it has tion or ideology. We are rather firm in toral victory they were now “free of vowed always to commit itself “to the our belief that he exported revolution to ideological adventurism”. struggle against racist regimes, wher­ Greruida, and. . .to . We . . .T he economic and ideological mis­ ever they may be” and likewise those believe that Cuban expansionism will con­ adventure of the Marxist system was not “regimes which violate human rights.” tinue through its role as a proxy for the acceptable to a people accustomed to the The government is also adamantly Soviet Union. The Cubans set up Jamaica lifestyle and expectations o f the market against “racist oppression and as their espionage center o f the Caribbean system. . .4 colonialism.” According to the govern­ so they could have easier access to subver­ As an unabashed proponent of the ment’s manifesto: sives on other islands, who could come free enterprise system, Seaga is con­ here to deal with them rather than going vinced that Jamaica’s bread is buttered . . . We support liberation movements to Havana and risking exposure. How can in Washington and not, as his pred­ against racism, oppression and colonial­ you normalize relations with a country ecessor seemed to believe, in Havana ism. We do not accept that liberation acting like that. . . ?7 movements can justify our support in any or Moscow. As a result, he wasted no To demonstrate that he meant busi­ country whose nationals freely vote to time in reversing Jamaica’s political ness, Seaga’s first act as prime minister establish or continue any political rela­ course in order to undo the damage was to expel Cuban Ambassador Ulises tionship. Nor do we support expansionist which, he charges, has been caused by Estrada, who left Jamaica on Novem­ movements operating under the guise of eight years of mismanagement and ex­ ber 3, 1980 along with several other liberation movements; and we condemn perimentation with Cuban-type solu­ Cubans. In addition to the accusation all the disguised attempts to infiltrate tions.5 that Cuba was “instrumental in smug­ and exploit any country. . . 6 In the foreign policy area, the Seaga gling arms and ammunition into administration is staunchly anti-Com- And finally, with regard to regional Jamaica” during the 1980 election cam­ munist and stresses that its “first interests, the [Seaga] administration paign, the Seaga government specifical­ priority is to re-establish confidence in regards the Caribbean as its “natural ly accused Estrada of being involved in Jamaica as a stable pro-Western na­ area of interest” with emphasis placed a scheme that illegally shipped 200,000 tion”. According to the government’s on the role of CARICOM, the Carib­ shotgun shells and .38 caliber pistol am­ election manifesto, its policy is to halt bean Bank and the University of the munition to Jamaica from and of what it sees as “the expansionist West Indies (UWI). Its overall policy stockpiling M-16 rifles in the Cuban movement of Communist imperialism” position on the Caribbean is that “with Embassy—rifles which were allegedly and to “combat the threat of alien ideol­ closer cooperation for mutual benefit”, used to attack supporters of the ogies” in the region. Caribbean governments “can halt the Jamaican Labour Party (JLP) and the On the issue of nonalignment, unlike expansionist movement of Communist security forces.8 the Manley administration, the Seaga imperialism operating under the In January 1981, the Jamaican gov­ administration not only does not intend pretext of a liberation movement.” ernment terminated the “brigadista” to play an aggressive role in the move­ Prime Minister Seaga’s paranoid program and immediately recalled all

NEW DIRECTIONS OCTOBER 1985 Jamaican students who were in Cuba tion member of Parliament D.K. Dun­ he Cuban government categori­ under the program. According to a can for “behaving in a manner pre­ cally denied the Jamaican State Department report, under the judicial to the national interest.” The government’s charges that it “brigadista” program, Cuba “trained government’s Minister of National Tharbored criminals wanted by about 1,400 Jamaican youths in Cuba as Security and Justice, Winston police in Jamaica. Cuba responded by construction workers.” Furthermore, Spaulding, accused Duncan of making charging that the break in diplomatic “political indoctrination in Cuba formed public statements “supportive of a relations “was carried out by the part of this group’s curriculum” during foreign power with which Jamaica had government of Seaga but was decreed which the “youths received military severed diplomatic connections for in Washington.. .as one more step in training while in Cuba, including in­ behaving in a manner prejudicial to the Yankee government’s aggressive struction in revolutionary tactics and Jamaica’s interest and particularly in anti-Cuban strategy.” The Cuban use of arms.”9 respect to the island’s security.” The government also accused Seaga of government’s position was that by sen­ attempting to be “the most loquacious n October 29, 1981, after one ding the top-level delegation to Cuba, leading choir boy of imperialism in the year in office, the Seaga Caribbean”. administration did the ultimate by breaking diplomatic rela­ Domestic Policy tionsO with Cuba, claiming that Havana When he became prime had sheltered/harbored criminals The cardinal features of the Seaga wanted for prosecution by police in minister in 1980, Edward administration’s supply-side economic Jamaica.10 Seaga stated that he philosophy are that “the private sector And in December 1982, the Jamaican inherited a nation that must save the country and that market government refused to extend the work forces would be allowed to have full permit of Cuban journalist Godefroid was ‘lurching from crisis play”.16 The government is guided by Tchamlesso, who had been covering to crisis’. the belief that “the first lesson is that the Caribbean for eight years as chief Socialism cannot produce economic correspondent for Prensa Latina. No growth” and that after eight years of reasons were given by the government Socialist policies which virtually turned for denying the extension. Jamaica into a “giant slum”, the only Needless to say, the Jamaican gov­ prescription that can restore economic ernment’s decision to sever diplomatic vitality is an economy “which rewards relations with Cuba in 1981 was greeted the PNP “appeared willing to subor­ personal initiative and enterprise.” The with indignation by opposition parties, dinate the interests of Jamaica to those specifics of this new philosophy are both in and out of Jamaica, and by the of Cuba.”14 (i) reliance on the private sector (free Cuban government. In fact, as a riposte Indeed the PNP was not the only enterprise) and foreign investment to be to the government’s bizarre, diplomatic political faction in Jamaica that rejected the “leader in the country’s economic action, Jamaica’s opposition People’s the government’s diplomatic break with development” (ii) deregulation of the National Party [PNP] Vice-President Cuba. In an opinion poll conducted in economy and (iii) an export-oriented and former Foreign Affairs Minister December 1981, “a majority of structural adjustment program. Percival Patterson headed a high-level Jamaicans disagree(d) with the Seaga The government intends to rely on delegation which left for Havana on government’s break in diplomatic ties the “participation of the private sector November 11, 1981 “to discuss with with Cuba.” The poll, which was con­ through the provision of technology and Cuban officials the recent break of ducted by JLP supporter political scien­ managerial skills” to reverse the flag­ diplomatic relations with Cuba by the tist Carl Stone, indicated a 48 percent ging fortunes of the important export government of Prime Minister Edward disagreement with the decision, while crops, banana and sugar, and make a Seaga”11 and “to consolidate long­ 41 percent favored the action. Eleven new thrust in housing.17 In the area of standing relations between the PNP percent had no opinion. The same poll housing, the government seeks to enter and the communist party of Cuba”.12 also revealed: into joint-ventures with private reput­ The PNP condemned the government’s able companies to develop low and decision, arguing that the government . . . as many as 21 percent of the ruling middle-income homes. Two thousand “had tendered no evidence that the JLP ’s own supporters did not endorse the homes were scheduled for building in men were in Cuba” and suggested that government’s action. And among the 1982 under this arrangement. The gov­ “several steps could have been taken to opposition PNP supporters, some 91 per­ ernment insists that “rent control show displeasure short of severing rela­ cent o f those interviewed were solidly would remain as a means of protecting tions”. The PNP also called on the gov­ behhid their party’s stand in objecting to the tenant” but as Minister of ernment “to allow freedom of move­ the break in diplomatic relations with Construction warns: ment to all Jamaicans wishing to visit Cuba. The poll disclosed that JLP sup­ Cuba”.13 porters and “independent opinion” were .. . i f the day should come when the For its part, the government brought against the break largely because o f the supply reached saturation point, then the a parliamentary censure motion against (spurious reasons advanced by the govern­ government would monitor the situation PNP’s General Secretary and opposi­ ment. . . 15 arid if it demands, we will relax control

NEW DIRECTIONS OCTOBER 1985 progressively. But the fa d that we cannot drain on the public purse.” The govern­ were offered tax incentives for up to 10 deregulate now, does not negate our posi­ ment has also indicated that it will not years, they were not “granted protec­ tion to deregulate in this sedion o f the protect local businesses from foreign tion from competition as was the policy economy when we can. . . 18 competition and further that the “pro­ in the past.” The Jamaican government has also cess of protection” they enjoyed under The questions segments of the placed a great deal of emphasis on the Manley government would be dis­ private sector were asking were: Can attracting foreign investment. Accord­ continued. The Seaga administration the relatively underdeveloped Jamaican ing to Prime Minister Seaga, Jamaica has argued that by permitting the economy, shielded from foreign compe­ received 408 “serious” investment pro­ importation of cheaper products, the tition for decades, withstand the impact posals worth over US $550 million and cost of living will be reduced and the of the change? Can local manufacturers, requiring two and a half million square consumer also stands to benefit. As a strangled by shortage of foreign ex­ feet of factory space, as of September result, local producers faced with change to buy raw materials and bur­ 1, 1981. The proposals represented an cheaper products would be forced into dened by inferior technology, compete employment potential of 25,000 per­ the production of products “which in terms of quality and prices with prod­ sons and consisted of US $338 million ucts from high-powered transnationals? in foreign investment (embracing 244 However, foreseeing the tremendous projects) and US $218 million in local dislocations that could result from the investment (covering 164 projects). Seaga’s first act as prime deregulation policy, the government ap­ And in an attempt to coordinate/con- minister was to expel plied to the World Bank for a “struc­ solidate private sector and foreign tural adjustment loan”, apparently to investment policies, the Private Sector Cuban Ambassador provide the foreign exchange element Organization of Jamaica (PSOJ) and a Ulises Estrada. vital for the adjustment that had to be Joint U.S./Jamaica Investment Com­ made. mission were formed, and in June 1982 the government established an Advi­ rime Minister Seaga has stated sory Council to the Minister of Industry that the special responsibility in the structural adjustment of and Commerce “to further cooperation the Jamaican economy was between itself and the private sector”. P transforming it from largely a domestic The Council was also charged with productive sector to one that produced monitoring “the implementation of for export. He adds that the basic objec­ structural adjustment and economic have viable markets in which they can tive was to gear the manufacturing sec­ restoration programmes, including the compete.” tor for export so as to be a net earner of deregulation of the economy.”19 In other words, the government has foreign exchange. According to Seaga, s mentioned, a major element adopted what some political commenta­ the process of structural adjustment of the government’s free tors have termed “a policy of doctrin­ embodied deregulation, marketing and enterprise policy is deregula­ aire capitalism”.20 As one Jamaican col­ incentives and the program was being tion of the economy. This umnist observes: carried out on a very methodical and “irrevocable”A policy means that since systematic basis. He concludes by in­ . . . (By this policy), the government private enterprise can run business will deregulate the economy and phase out dicating that policies were put in place more efficiently than government, then all the various restridions and licenses to ensure markets and provide incen­ the government would try to divest and red tape with which the Manley tives and that the strategy of deregula­ itself of many public enterprises. For administration had entangled the private tion was devised to remove the restric­ example, by July 1981, six publicly- sector in its efforts to keep track o f and tions on certain consumer items.23 owned enterprises with total assets of control the flow o f scarce foreign ex­ Nevertheless, some analysts have in­ US $137 million were sold to the change. . .21 sisted that the government had to private sector by the government implement aspects of the deregulation Divestment Committee as a signal of The aim of deregulation was “to program even before it received the the government’s resolve that “govern­ make a radical switch from the import- World Bank loan as a precondition to ments should not run business enter­ substitution approach used for the past convince the Bank that it was serious prises.” It should be pointed out that 20 years to industrialization by export about its new policy. In addition, the these public companies were set up by orientation”.22 And to show that it U.S. business sector had also put pres­ the PNP “in its attempts to control the meant business, the government an­ sure on the government to “free up the commanding heights of the economy”. nounced in July 1981 that “no licenses market” again as a precondition for The Seaga government is now argu­ at all would be needed to import certain U.S. private investment. ing that since the combined losses from items” and in October 1982, 400 items these and other statutory corporations were removed from the list of quan­ t should be pointed out here that totalled US $250 million over the past titative restrictions “because by and the Seaga government made a five years, then, its policy of divestment large, they were not locally produced.” serious mistake in opening up or represents “an effort to get rid of In addition, while the several hundred deregulating the Jamaican econ­ uneconomic dead-wood which (is) a local and foreign investment applicants omyI so suddenly. This view has had

NEW DIRECTIONS OCTOBER 1985 widespread support in Jamaica. Manu­ premise that an unfettered economy find the cupboard bare, we had to rebuild facturers and exporters associations will kindle orientation toward export a shattered economy laid waste by years of and the Workers Party of Jamaica were production and create the resources inefficiency ami neglect, and to return the among its supporters, while the necessary for economic and social country to a path o f growth after 8V2 Jamaican business sector became indig­ development. The centerpiece of the years—just 18 months short o f a decade— nant at the government’s deregulation structural adjustment is to gear the of declining production. . ,29 policy and the fact that it had tremen­ manufacturing sector to seek markets In his report, the prime minister out­ dous difficulty in obtaining foreign ex­ overseas as opposed to the import sub­ lined the main achievements of his change for exports. According to R. stitution model that had been followed government as follows: Anthony Williams, president of the since Jamaica began its industrializa­ Jamaican Manufacturers Association, tion program in the late 1950s. This is . . . We have restored a sense o f order, “thirty-three factories have been closed to be backed up by the development of rationality and predictability to the coun­ because of the problems spawned by the export agricultural sector, particu- try’s life. By the same token we have the government’s (deregulation) brought back confidence to the country policy.”24 Also, staunch JLP supporter, and hope in its future. Crime and violence Gleaner columnist Carl Stone, warned have been reduced and people no longer the government that when the Chilean have the acute sense o f personal insecurity economy was opened up overnight in One must bear in mind that was for the most part the case in the the two-year period 1975-77, employ­ that there are at least later years o f the Seventies when there ment in the manufacturing sector fell two sides to every story. was the comistent fear o f attack from the by 18 percent due to uncontrolled com­ gunman, the crimiml and the “revolu­ petition from cheap imports. He went tionary.” We have put basic food items on to ask: and other necessities back on the shelves . . . Why should the technocrats o f the and in continuing supply, ending the World Bank ayid the IM F [International anxiety o f the housewife and the prosperi­ Monetary Fund] be pressuring us to open ty of black marketeers trading in basic up the economy fully when in their own human needs and profiting on the suffer­ countries protectionism is on the upswing ing of shortages. and none o f these countries has opened up So too have we eased the shortages o f beyond controlled competition?. . .25 basic medical supplies and equipment with more consistent flows as we move Another deleterious effect of this new larly the export of nontraditional towards fu ll restoration o f services. policy was that since industrial develop­ crops.27 We have turned around the economy, ment in Jamaica was “established and registering positive growth, a distinctive engineered for the protected local Impact of New Economic Policies achievement against the negative back­ market” during the 1950s and 1960s, When he became prime minister in ground o f where we were coming from by removing that protection such a 1980, stated that he and in the context o f the most punishing policy (which was formulated in collu­ inherited a nation that was “lurching world recession in 50 years. In doing so, sion with an IMF agreement) has had from crisis to crisis.” Two years later, we are swimming against the world tide serious effects on employment and and gaining, while many, including the he insisted that Jamaica has experi­ investment. And the eventual denoue­ enced an “economic miracle”, an “eco­ prosperous and powerful, are slipping. ment has been that the Jamaican econ­ nomic turn-around” through a policy of Only 5 o f the more than 50 countries in omy has become dominated by foreign reliance on private enterprise. This, he this hemisphere are likely to show any investors and a few rich Jamaicans—a insists further, represents “change growth this year and Jamaica is one. situation which existed in the 1960s26 without chaos” and “a mammoth We have restored confidence in Jamaica during the JLP’s reign to the extent achievement.” Deputy Prime Minister among the world’s financial institutions, that domestic and foreign capitalists and Minister of Foreign Affairs and making it possible for us to fin d the money had such a field day that Jamaica came Foreign Trade, , also has for Jamaica’s development needs. to be known as the “new Riviera”. This suggested that the Jamaican economy We have begun the diffiadt but essen­ was the same situation the Manley had demonstrated positive growth rates tial task of structurally adjusting our administration sought to rectify and in as a result of the “combination of a free economy for future sustained growth which a massive brain drain of market economy supported by the which can meet competition and profit, Jamaican professionals and business­ public sector and the entrepreneurial hot lose, by it. man to North America occurred, and skills of an enlightened private We have created new investment starts destabilization measures were taken sector.”28 And in a report to Parliament in industry a)id agricidture in the econ­ against his administration by the U.S. on the government’s second year in of­ omy at the rate o f nearly eight per month government and the IMF. fice, Prime Minister Seaga said: or two per week. When last did that ever And finally, the Seaga government happen? has indicated that its structural adjust­ . . .[As] the first government in We are laying the foundation for the ment program is primarily based on the Jamaica’s history to come to office and recovery of our major agricultural crops,

NEW DIRECTIONS OCTOBER 1985 introducing a spectacular range o f new 1981; after being a negative figure be­ goods was $283 million in 1981 or $31.3 crops, and providing the farmer with tween 1979-80; million (i.e., 12.4 percent) more than the abundance of credit and services. We have (vii) Current account deficit averaged 1980 figure; in 1982 the figure in­ turned around the crash in tourism to minus 1.8 percent in 1981; after an creased to $325 million or by 15 per­ prosperity for the economy and particu­ average of minus 4.0 percent between cent. larly for the workers. 1973-80; There is no doubt that the achieve­ We are bringing order to real estate ments outlined seem very impressive. development and justice and equity to the (viii) Investment which averaged in­ In addition they have been publicly business o f rental o f premises. creases of 6.0 percent between 1973-80 lauded by the highest officials in the We are bringing order into our public jumped to 25.9 percent in 1981; Reagan administration. The adminis­ transportation system to provide reliable (ix) Arrears in payment for goods and tration has specifically praised the and reputable service. And, because we services as of March 31, 1982 was zero; Seaga government for “its remarkable dare to care about corruption in public life compared to US $105 million in 1981 control of prices and the impressive we have initiated mechanisms to ensure reduction in the cost of living index, as the integrity o f the award o f contracts well as the reduction of the budget through the establishment of an Insur­ deficit ahead of schedule, the conserva­ ance Placements Committee and the tive monetary policy, fiscal restraint appointment o f a Contractor-General. . . Jamaicans are beginning and the opening up of the economy to Because we dare to care about the young to realize that conditions foreign (U.S.) investment”. we have created the H.E.A.R.T. Pro­ in the country are getting gramme to give them the skills to “learn to owever, one must bear in earn ’’for their future. We are building 50 worse. mind that there are at least primary schools because we dare to care two sides to every story. In­ that a place in school should be the birth­ deed the dialectics of economic right of every child. progressH in Jamaica suggest that the We have introduced compulsory educa­ picture isn’t as rosy as painted by the tion because we dare to care that our government. The general contention is children shall not grow up crippled by that the government’s economic prog­ illiteracy. nostications were overly optimistic. Because we dare to care, we are estab­ In fact, during the past year, the gov­ lishing a Golden Age Home to offer a ernment had to revise its economic higher level of care for the aged helpless and US $50 million in 1980; forecasts downward and some pub­ and the poor. . . (x) Inflation fell from an annual aver­ lished analyses have concluded that In more specific and statistical terms, age of 22.0 percent between 1973-80 to “Jamaica Still Isn’t Making It”; that he cited the following achievements. 5.1 percent in 1981 but increased slight­ “Seaga Is In Trouble”; and that there ly to 6.9 percent in 1982; “is a growing threat that the marginal (i) Real economic growth of 3.3 per­ progress made during the past two (xi) Unemployynent dropped from 27.3 cent in 1981, 1.0 percent in 1982 and years has fueled expectations beyond percent in 1980 to 25.8 percent in 1982; 1.7 percent for 1983, compared to an reason” to the extent that the govern­ annual average growth rate of minus (xii) Standard of Living Index improved ment has used the marginal economic 2.8 percent between 1973-80; by 9.3 percent in 1981; after an annual fortunes “to mask the multitude of for­ (ii) Agriculture grew by 3.5 percent in average deterioration of 3.6 percent midable problems” facing the country 1981, after an annual average growth between 1973-80; as a result of inappropriate economic rate of minus 0.5 percent between (xiii) Major aimes decreased by 8.3 policies.30 In other words, deliberate at­ 1973-80; percent in 1981; after an annual tempts were made to make the Jamai­ (iii) Manufacturing grew by 0.4 per­ average increase of 7.2 percent be­ can people believe that their economic cent in 1981; after an annual average tween 1973-80; situtaion appeared much better than it growth rate of minus 3.6 percent be­ (xiv) Industrial Relations climate im­ really was. tween 1973-80; proved by 4.0 percent in 1981; after an A closer examination of the picture on the other side of the economic coin (iv) Construction grew in 1981 by 2.5 annual average deterioration of 6.1 per­ cent between 1973-80; under the Seaga administration reveals percent and by 26 percent in 1982; after the following: an annual average growth rate of minus (xv) Domestic exports earnings in­ First, there was a price index increase 9.6 percent between 1973-80; creased from US $1.7 billion in 1980 to US $1.8 billion in 1981; on “an annualized basis” of 4.7 percent (v) Capital formation grew by 26 per­ in 1981 over 1980 and an 8.4 percent in­ cent in 1981; after an annual average (xvi) Gross revenue from tourism, which crease in 1982 over 1981. As a result of growth rate of 6 percent between declined dramatically between 1979 the November 1983 devaluation of 77 1973-80; and 1980, brought in $280 million in percent, gasoline prices increased from (vi) Foreign exchange reserves annual 1981; J$6.00 to J$9.00 per gallon (i.e., US change (surplus) was 43.0 million in (xvii) Total exports of nontraditional $1.85 to US $2.74) by the end of 1983;

NEW DIRECTIONS OCTOBER 1985 public transportation and utility rates of trade increase of US $300 million in tion in the last harvest. And to make (electricity) increased by 17-54 percent; 1980 to US $600 million in 1981. In matters worse, the sugar industry was the price of milk went up by 40 cents. 1982, the trade deficit was US $619 severely hit by a foreign exchange Inflation hit a double-digit 16.7 percent million. In 1983, total export earnings shortage which was precipitated by the in 1983, after rising to only 6.5 percent fell by 10.8 percent. The country’s ill-advised implantation of a parallel in 1982. As of October 1982, the Seaga balance of payments deficit now stands market for the exchange of convertible government’s own statistics showed at US $280 million, while the deficit on currency by the government in Janu­ that 48 percent of Jamaica’s workers current account is about US $550 mil­ ary 1983. earned less than JA $40.00 or US lion, reflecting an increase over the past Seventh, conditions in Jamaica in 1982 $13.00 per week. three years of almost 50 percent. were severe for the “ordinary people’’ Fifth, the production o f bauxite, which in terms of their basic needs. For exam­ econd, domestic food production is the main source of foreign exchange ple, there were chronic shortages of declined by 19.2 percent dur­ ing the first half of 1982 and S there was a 45 percent in­ crease in food imports in 1981 over 1980 and a 17 percent hike during the first half of 1982, compared to the same period in 1981. In addition, the Jamai­ can Agricultural Society (JAS) has criti­ cized the government’s import policy and has expressed fear that if the situa­ tion continues “there is going to be absolutely no production in agriculture in Jamaica”. According to the JAS, “all we hear is produce for exports, and nobody is talking about producing for local consumption”. What the JAS sug­ gested is that the government conduct “a massive educational drive to review the trend of people preferring foreign goods to local goods”. There should also be proper presentation and packag­ ing to appeal to local consumers. The Seaga government has ignored this policy advice because its stated policy is to gear the Jamaican economy in the colonial “export-basis” direction and not meet the basic needs of the Jamai­ can people. Emphasis is on satisfying the American metropolitan market. earnings and a major source of govern­ drugs and medical supplies in govern­ Third, total external debt increased ment revenue, fell by 29.9 percent in ment hospitals and health centers; from US $1.4 billion between 1980-82 1982; the production of alumina also fell water and flour shortages; electrical to US $2.3 billion by the end of 1983. by about 23 percent; in addition, 1,500 black-outs; and inefficient bus transpor­ This means that each Jamaican owes workers were laid off in the bauxite in­ tation and mail services.* These condi­ $1000 as his/her share of this debt. dustry in 1982. In 1981, Jamaica earned tions were compounded by the laying Foreign debt now consumes 28 percent over $300 million from the export of off of workers at the Kingston Trans­ of all export earnings. Net foreign bauxite and alumina, but in 1982 earn­ shipment Port at Port Bustamante and reserves stood at minus US $700 ings dropped to about $240 million. at the Kingston Wharves Limited and million in 1982, compared to minus US This figure includes the U.S. stockpile Western Terminals; the laying off of $574 million in 1981 and minus US purchase of $67 million worth of workers by Reynolds Jamaica Mines; $481.1 million in 1980. As a result, the Jamaican bauxite in September 1982. and the surplus of employees of the Na­ national coffers are dry despite the Sixth, Jainaica’s sugar industry is now tional Sugar Group of Companies. massive infusion of overseas loans and headed for bankruptcy as seven state- the fact that the government borrows owned mills have been forced to close. s a riposte against the govern­ about US $1.5 million per day. The closing of these mills has meant the ment’s economic policies and Fourth, total imports in 1980 were US loss of jobs for 11,800 workers. Accor­ the progressively deteriorating $1.7 billion, while exports were US $1.4 ding to the National Sugar Company economic and human condi­ billion; in 1981 total imports were US (NSC), the sugar industry lost $300 mil­ tions,A the Jamaican working class took $2.1 billion while exports were US $1.5 lion along with a $50 million additional the following actions: (i) strikes by billion, that is, an unfavorable balance loss resulting from the drop in produc­ Kingston dock workers, the sugar in-

NEW DIRECTIONS OCTOBER 1985 dustry workers, the field workers in the tion open. The small manufacturers The government paid no attention to Frome factory, and the drivers and con­ have also described the government’s this gloomy warning. Approximately ductors who delivered mail to the rural credit policies as “not realistic”. six months later (October 1982), the areas, (ii) protest demonstrations by the Eighth, in September 1982, the govern­ Ministry of Education announced a 50 government’s legal officers attached to ment had to revise its predicted 4 percent percent cut in the 1982-83 operational the courts, (iii) island wide sick-outs by growth rate downwards to a mere 1 per­ budget for new secondary schools. One registered nurses, ancillary workers cent because of declining productivity of the main functions of these schools and psychiatric aides and, (iv) a slow­ in key sectors. In addition, confidential was to prepare students with market­ down by production workers at the projections by the government’s eco­ able, technical skills. The budget cuts Seprod Group of Companies which pro­ nomic planners have indicated that left these vocational areas almost inop­ duces soaps, cooking oil, detergents, short term economic problems will erative and teachers expressed deep commeal and animal feed. grow, viz, current account deficit is ex­ concern for the future of the program. The cuts served to further frustrate the efforts of committed teachers, to drive 33 them from the classrooms and to threaten the possible closing of some schools. In a final attempt to salvage this component of the country’s voca­ tional program, the Association of Prin­ cipals and Vice-Principals of these schools sent a resolution to the Ministry of Education. It stated, in part: . . .Be it resolved that this association views the attitude o f the Ministry o f Edu­ cation as not in keeping with the best interest o f education as it affects these schools, and be it further resolved that this association urges the Ministry o f Educa­ tion to restore the operational budget o f new secondary schools even to the 1981-82 level forthwith so that some degree o f nor­ mality can be restored to the schools to pre­ vent them from being closed... It must be pointed out that these budget cuts by the Jamaican Ministry of Education are analogous to the budget cuts in educational and job-training pro­ grams by the Reagan administration. The net effects of these policies of the In addition, local small manufacturers pected to reach $274 million by 1986, two governments are that the budget were unhappy over the “government’s and the trade deficit could reach $562 cuts “strike disproportionately and insensitivity to (their) peculiar prob­ million, forcing the government to severely at society’s poorest and most lems.” They complained that they were secure loans to cover a financial gap dependent citizens” and “unfortunately being “squeezed” out of business that could increase from the current and un-intentionally” create “welfare because of a number of problems, not $29.83 million to $97.7 million by 1986. dependency” rather than produce the the least among them being the govern­ Ninth, conditions in the education kind of technically-skilled citizens who ment’s tendency to treat small-scale system have reached such a cancerous can “pull themselves out of welfare enterprises as being on par with the state that Alfred Sangster, principal of dependency” and atrophy. large-scale industrial and manufactur­ the College of Arts, Science and Tech­ ing giants who were able to fend for nology (CAST) warned the government enth, the managing director of themselves and needed no assistance. that the College was faced with “the Estate Development Company As a result, several small factories, due constant hemorrhage of qualified staff” of the Ministry of Housing to financial difficulties, lack of raw who left for the private sector “or has stated unequivocally materials and import licenses, had to T worse still to specially created quasi­ that “the country may never solve its open only seasonally for three weeks government agencies with inflated housing problems in this decade” and during Easter and for special holidays emoluments” and that the government that the most the government can hope during which time they manufactured had to “come to terms with the condi­ to achieve is to keep the problems as much of their particular product as tions of service for its teachers or there “under control and to an acceptable possible, then closed down the factory, will shortly not be an educational degree”. The problems have been com­ leaving only the retail or wholesale sec­ system on which to build any future.” pounded by the fact that government

NEW DIRECTIONS OCTOBER 1985 policy has relied on the private sector to Eleventh, the government has been recovery.” As the pro-government Daily be “the greatest provider of housing for publicly accused of “contradicting Gleaner concurs: “not until this problem the people of the country”. The reality, employment figures for the island”. (unemployment) is solved, can Seaga however, was the private sector only According to Manley, Prime Minister regard his government as successful.” showed interest in housing develop­ Seaga has indicated that in 1981 his Twelfth, another glaring testimony of ment as it concerned the upper-middle administration reduced unemployment the negative detrimental impact of the and upper-income brackets. By so do­ by 0.6 percent since taking office. In Seaga government’s policies is in the ing, they were able to maximize then- other words, the government boasts area of migration (brain drain) of thou­ rates of return, with minimal invest­ that unemployment stood at 26 percent sands of Jamaicans to the United ment problems or risks. Government in 1981 implying that that figure was 32 States. Jamaicans have become so policy has been oblivious to the many percent when Seaga came into office. frustrated with their government’s Jamaican families who have been left However, Manley has indicated that if policies that they have resorted to ille­ “homeless and without hope of owning that’s the case, then the prime minister gal entry into the by 34 their own home”. was guilty of “gross dishonesty” means of forged U.S. birth certificates. In 1982, the housing shortage in because “unemployment figures are It is very instructive to recall that Jamaica was 65,000 units. In addition, taken in April and October of each year. conventional wisdom once suggested rent and security of shelter for the peo­ The unemployment figure for Novem­ that thousands of qualified, professional ple were number one priorities on the ber 1980 was 26.8 percent”. and middle-income Jamaicans left the public opinion polls. In reality, official records have re­ country when the Manley administra­ The housing problem reached such a vealed that the level of unemployment tion adopted its policy of Democratic critical stage that the opposition leader, actually increased from 261,500 to Socialism in 1974 as a means to meet Michael Manley, was compelled to con­ 280,700 over the period October 1981 the basic needs of the broad masses of clude during his 1982 budget speech to to April 1982. It stood at the end at 27 the Jamaican people. Ironically, in Parliament that “the government has percent. This represented a 1.4 percent 1982, several thousands of poor disen­ no housing policy.” Manley said that increase in the jobless rate over the chanted low-income Jamaicans left the the increases in the importation and the period. The government’s own Depart­ country because of the pro-U.S. busi­ production of construction materials ment of Statistics also has shown that ness, private enterprise (sector) and were not going towards building hous­ the unemployment rate increased from non-Jamaican orientation of its govern­ ing for the poor, but were for commer­ 26.2 percent to 27 percent between ment’s policies. cial building and housing for the rich. In April 1981 and April 1982. The In examining the startlingly high rate addition, he said that existing housing unemployment rate among women in of migration, it was uncovered that 100 settlements were in an advanced state April 1982 was 43.1 percent, up from permanent visas and 400 non-perma­ of decay, social and economic infra­ 42.9 percent since October 1981. The nent visas were granted daily. On an ag­ structure was missing from the devel­ rate among men stood at 15.3 percent, gregate basis, this means that each year opments, rents were excessive, the an increase of 1.1 percent since October 36,000 Jamaicans have been leaving the landlord-bailiff was the terror of poor 1981. At the end of 1983, unemploy­ country permanently for the United people and certain greedy private sec­ ment officially stood at 27 percent or States. tor developers were ripping off unfor­ over 300,000 Jamaicans out of work in tunate house purchasers for non­ spite of the government’s boasts of inally, it is again instructive to existent schemes. He also indicated economic recovery and new jobs. recall that during the 1980 that during his tenure “there were Rent general elections, the JLP cam­ The mood of the country, therefore, Laws establishing Rent Boards and paigned and won on the slogan is that the unemployment rate has Community Tribunals to ensure fan- thatF the “poor can’t take no more.” reached “catastrophic proportions.” rent for tenants and fair treatments by Since taking office, however, the ruling The general contention is that by put­ landlords. Rents were rolled back in JLP government has concluded that, in­ ting the entire responsibility in the many cases.” deed, the poor can take some more. hands of the private sector, the “gov­ Thirteenth, juxtaposed to the twin ernment accepts no responsibility itself problems of chronic high unemploy­ anley further stated that be­ for indicating and implementing pro­ ment and migration is the “moral mess” tween 1976 and 1980, the Na­ grams which will have the effect of that has permeated all aspects of life in tional Housing Trust (NHT) creating direct employment.” There Jamaica under the Seaga government. built over 17,381 housing also has been a clarion call for a “Na­ M Church ministers have publicly warned units, but in the first two years since the tional Objective” to reduce the unem­ the government that “no nation that Seaga government took office, only ployment rate to two or three percent kicks morality overboard can survive” 1,100 housing units were started. The because unemployment is seen “as the while in an editorial in The Jamaica Daily NHT was created during the Manley root cause of several other problems.” News (December 29, 1982), Jean administration “to mobilize workers’ In addition, the opposition party has Jackson surmises: savings to provide them with housing called upon the government “to pub­ on an income-related basis.” Emphasis licly state what it is doing to reverse this . . . Looking back at the year 1982, it was on providing low and middle in­ alarming rise in unemployment while seems that the focus ivas on the material; come housing. we are supposed to be in a period of the emphasis on the tangible to the exclu-

NEW DIRECTIONS X T 0 B E R 1985 sion o f the intangible; on the ability to beat NOTES 19“Govt. to Set up Advisory Council to Further Co-operation with Private Sector.” News Release. any and every system to satisfy the wants No. 1038/82. (June 22, 1982), p. 1. o f the individual; on judging the worth of 20C/F Bowen, op. tit., p. 8. a person by the outward signs o f prosperity '“Jamaica Chalks up a Loss for Castro.” U.S. 2lIbid. News & World Report. (November 10, 1980), ^ “Jamaica as a ‘Model’ for Caribbean Basin with very little attention to the intrinsic p. 15. Plan” Caribbean Contact. (April 1982), p. 10; values o f life (and morality). . . 2“With Malice Toward None—Seaga.” The hereafter referred to as Jamaica as a model. Daily Gleaner. (November 3, 1980). p. 1. 23“Govt. Plans New Export Incentives to Boost 3“Seaga Launches Trade Policy.” Trinidad Economy.” The Jamaican Weekly Gleaner. or many Jamaicans, 1983 was to Express. (May 14, 1982), p. 17. (November 11, 1982), p. 6. 4Edward Seaga, “The Correct Path.’’ have been “the year of deliver­ 24C/F Caribbean Contact. (August 1982), p. 1. Keynote address to the IV Miami Conference on 25Bowen., op. tit. ance”. Instead it has become a Caribbean Trade, Investment and Development 26“Seaga Launches Trade Policy.” Trinidad year of doubt, uncertainty, and on November 23, 1980, p. 8. Express. (May 14, 1982). p. 17. 5“Jamaica: On the Mend.” Ebony. (May 1982), 27“Positive Growth Seen in 1982.” Jamaica chaos,F combining an unprecedented p. 79. Daily News. (January 1, 1983), p. 1. one-party state apparatus with a 'The Jamaican Labour Party, Change Without ^ “A Report to Parliament on the Administra­ recession-riddled economy. The situa­ Chaos: A National Programme for Reconstruction. tion’s Second Year in Office.” Statement No. Kingston, Jamaica (), p. 36. 1935/82 by Prime Minister Edward Seaga to the tion is very volatile. Seaga campaigned 7“Jamaica: No to Chaos.” Time. (November House of Representatives on November 2, 1982. on the slogan of deliverance from what 24, 1980), p. 59. 29“PM: Jamaica Poised for Growth.” The he then charged were eight years of 8U.S. Department of State, “Cuba’s Renewed Jamaican Weekly Gleaner. (November 8, 1982), Support for Violence in Latin America.” Special p. 1. mismanagement and leftist policies of Report. No. 90. (December 14, 1981), p. 9. ■“Carl Stone, “Seaga Is In Trouble.” Caribbean the Manley government that had left 9Ibid. Review. Vol. XI No. 4 (Fall 1982), p. 7. the economy in shambles. He pleaded ‘““Significance of Jamaica’s Break with Cuba.” Caribbean Contact. (December 1981), p. 1. Tt should be pointed out that as a result of with the citizenry to give him only three " “PNP Men off to Havana,” Trinidad Express. the grossly deteriorating conditions of the public years to turn the economy around. But (November 10, 1981), p. 7. utilities in Jamaica, the government was forced after three years, many Jamaicans are 12“JLP Raps PNP Plan to Visit Cuba.” Trinidad to appoint a legal ombudsman by March 1983 Express. (November 10, 1981), p. 6. “to deal with citizens’ complaints in respect of convinced that their deliverance is not uIbid. the services provided” and “to eliminate dissatis­ near, but far, far away. □ uIbid. factions among their customers.” According to 15“Opinion Polls Show Majority of Jamacians Peamel Charles, minister of Public Utilities and Reject Break with Cuba But Favor ‘Economic Transport, the government had found it neces­ Recovery’ Claim...” Caribbean Contact. (January sary to appoint such a person, Churchill Ray­ 1982) p. 6. mond, with the “permanent purpose of achieving Linus A. Hoskins, Ph.D., is a graduate assistant 1BWenty Bowen, “Jamaica: Confident Seaga substantial improvement in the operation of the professor and chairperson of the International Settles in...” Caribbean Contact, duly 1981), p. 8. utilities.” C/F “Minister Charles Receives P.U. Studies Program, School of Human Ecology, 17“Seaga Govt. Re-affirms Its Faith in Private Ombudsman.” News Release. No. 429/83. (March Howard University. This article was excerpted from Sector.” Trinidad Guardian. (April 8, 1982), p. 4. 23, 1983). his new 240-page report, “CARROT AND BIG- 18“Govt. Recognizes Role of Private Sector in STICK: Perspectives on U.S.-Caribbean- Housing, Says Min. Golding.” News Release. Jamaican Relations.” No. 2066/81. (October 20, 1981), pp. 1-2.

NEW DIRECTIONS OCTOBER 1985