A Jamaica Poor No More
                                   by Michael I Phillips

        Chapter 3

Jamaicanism - A Pathway to Prosperity

It is painfully obvious that under the present economic system Jamaica will be poor forever. A Jamaica poor forever or A Jamaica poor no more. The choice is perpetual poverty or an end to poverty. The solution is not capitalism. It is not communism. It is not socialism. It is a completely new –ism which is unique to Jamaica, so I call it Jamaicanism. Under Jamaicanism, my proposed economic system, Jamaica will be poor no more.

Foreign and local corporations make money in Jamaica. These corporations get rich in Jamaica. So, Jamaica government must form its own corporation too in order to get rich also. This Jamaica Government. Corporation(JGC)  will compete with the other corporations so it will be no puny company. By necessity it will start out small but its goal is to be the largest and most efficient  corporation in Jamaica with subsidiaries all over the island. It will not follow civil service rules but will follow the rules and practices of corporations. Existing corporations do not really care about Jamaica, but only for making a profit for their shareholders.  The Jamaica Government Corporation will care about making a profit, but their primary goal is caring about the citizens of Jamaica.

One of the first reactions to this idea was that “the Jamaica government could not even run a patty shop”. This was not completely unexpected. This is a popular stereotype of government.

 I myself have encountered  such a problem. Once on my return to the US from a vacation in Jamaica, I found myself stuck with a lot of Jamaican money. I am sure this happens to a lot of tourists. So I thought, “ why not set up a charity collection box in the airport so that departing tourists could donate their Jamaican money before they flew back to their home”?  I suggested this by  mail to government officials. I even  sought the assistance of persons of influence there in Jamaica that I knew personally.  Finally I got a positive response. I was elated and could not wait to see this put into effect the next time I went back to Jamaica. I had to search the airport diligently but finally I found it. It was a very inconspicuous brown box with a slot to insert money. “Is this it? I thought. I had no Jamaican money so I decided to donate a few American dollars. I could not get the money through the slot!

Years later, I was in Dublin airport, Ireland. There was my donation box. It was no puny inconspicuous box. It was a prominently-displayed transparent artistic plastic globe that I am sure attracted tourists to donate their left-over euros.

I have also encountered charges of cronyism and corruption which would undermine this government corporations. To be sure, these are also real problems. But, they are not insurmountable. They exist in the present keep-Jamaica-poor system and should not stifle or prevent us from adopting a system to take Jamaica on the road to prosperity.  Besides,  awareness of these problems and setting up government as a corporation will minimize these problems.

 The old school, stuck- in-their-ways, will not run this government corporation. Instead the corporation will seek out new innovative committed leaders who will recognize that the destiny of Jamaica is in their hands.  Consequently, one of the most important officers will be a Director of Innovation, who will be charged with considering the feasibility of  latest computer technology for application to the variety of industries.

I remember a long time ago when the British had and ran the Suez Canal. When the Egyptians took it over, there was a feeling that they could not administer it. But they did, and even better than the British. There is an element of that here now, a feeling that Jamaicans cannot do it as well as the foreign corporations. We shall not be undermined by such imposed inferiority complex. “A prophet is  without honour  in his own country.” We are not just seeking parity. Instead, our motto will be, ”Anything they can do, we can do better”. Or, at least we shall always try to do it better.

 Jamaicans have excelled internationally in many fields. For example, Jamaican Ann-Marie Campbell, executive vice president of United States Home Depot stores, has been ranked as the 16th most powerful woman in the world for 2018 by Fortune Magazine. In her role as executive vice president, she has responsibility for some 2,000 Home Depot stores throughout the US. Campbell cites her Jamaican heritage as a major reason for her success.

Even our much maligned civil service  workers do not get the credit  they deserve at home. But, they are recognized internationally. Our public sector workers have been hailed for their contribution to the country's positive performance in the 2017-2018 Global Competitiveness Report, which shows that Jamaica is ranked 27 out of 140 countries in labour market efficiency.

This Jamaica Government Corporation will enter into any enterprise in which it analyses and foresees a healthy profit.  Big corporations have diversified into a variety of fields to become conglomerates. Do you remember when General Electric was a company which made refrigerators, stoves and other appliances? Well now General Electric Company (GE) is an American multinational conglomerate incorporated in New York. As of 2018, it operates through the following segments: aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, venture capital and finance, lighting, transportation, and oil and gas.

Likewise, JGC will be a conglomerate with companies all over the island involved in tourism, agriculture, housing and all sorts of businesses. They will have sole proprietorships, partnerships with other companies or even individuals. Like corporations they will even buy out other companies. Let me emphasize that all transactions with other companies or individuals will be voluntary and without compulsion. In time, JGC will have a wide network of companies and businesses all over the island for the benefit of Jamaica and the Jamaican people.

JGC shall include sole proprietorships, partnerships, franchises, franchisors, active investments and passive investments. Partnerships are very important as there would be many partnerships all over the island. The attraction of partnerships between companies and individuals and JGC will provide the expertise and means to increase profits and JGC will then receive a percentage of the increased profits, It is a win-win situation for both parties. If profits do not increase, then the partner would pay nothing to JGC, but would only pay if profits increase. In other partnerships JGC will benefit from the expertise of the partner, always for the mutual satisfaction of both. Foreign corporations that funnel money out of Jamaica, like Uber,  fast food chains and even real estate companies. would be primary targets of JGC competition.

This book provides only the framework and direction of these business arrangements. The exact details are beyond the scope as they would depend on the specific circumstances of each agreement.

Agriculture Business

Jamaica is an agricultural country. An agricultural country is almost synonymous with poverty.  Farmers in Jamaica basically eke out a living. Even in prosperous America, the family farm is a dying business. Despite  state-of-the art agriculture machinery and high tech methods, according to The Hightower Lowdown, May 2019,the 2018 median farm income for US farm households was a minus $1,553 (Net Farm Income is the money left over after a farm family subtracts the cost of producing their crops from the amount they get paid for them.) They can’t even break even.  Why? It is because corporate middlemen, commodity speculators and monopolistic wholesalers dominate the market and control the prices paid to the farmers.

Everywhere n the US, the family farm  is being replaced by agribusiness.  But, here in Jamaica in my proposal, the farmers will team up with JGC to form agribusiness for the benefit of all. No longer will the government just advise farmers  but it will serve as a business partner in a profit making venture in a unique relationship which I call Partnership With People (PWP).

So JGC will team up with farmers to create agribusiness in which the agricultural industry will engage in the producing operations of a farm, the manufacture and distribution of farm equipment and supplies, and the processing, storage, and distribution of farm commodities.
Objectives

• Provide food needs of Jamaica
• Make a profit
• Fair price to farmers
• Reduce the importation of food
• Increase yields through technology and research

Focus Areas

• Seek value-added food processing. For example with the fore mentioned yellow yam, JGC would investigate the feasibility of yam chips, like potato and banana chips. In America I have found potato bread in supermarkets. Could there be yam bread from yam flower? Recently cassava is used in the production of Red Stripe beer.
• Marketing
  • Foreign
  • Local – supermarkets, hotels, restaurants
• Collection and storage
• Agri-technology – greenhouse. Irrigation. pest control, fertilizer, etc.
• Provide a guaranteed price to farmers
• Mechanisation

Jamaica Hotel Business
Tourism is a vital industry in Jamaica. So, the Jamaica Business Corporation should be deeply involved in  the hotel business. This business is complex and very competitive. But, it is not rocket science. So, with the proper commitment, expertise and training, Jamaica can compete with Hilton, Hyatt, Sheraton or any of the big hotel guns. Why should foreign hotel corporations essentially get the lion’s share of our tourism market? We need a new attitude. Unfortunately, the fact is we have been wasting opportunities.

Hotels have crashed and burned over the years with the government trying to rescue them.  For instance, in 2009 the Breeze Montego Bay Hotel bit the dust and closed. Jamaica rescued it by buying it and up to 2019 it remained shuttered. In 2011 it went up for sale with a valuation of US$14.32 million. Now in 2018 it is reported to be  in the process of being sold for US$7.8 million. In about a decade, this property did not appreciate, but instead lost about US$6 million dollars.  This is Jamaica-poor-forever policy. I am sure the new buyer will make a mint.  If the new buyer can make a mint, then JGC can make a mint too. Why wait until the property value falls by over US$6 million?

Auto Dealership Business
This is a perfect business for the JGC. They would have an automatic large customer base – the government vehicles, busses, cars, vans, trucks etcetera. They would acquire and repair these vehicles. Of course they would not be limited to government vehicles only, but would also provide quality service to the general public at competitive rates.

Housing Construction and Rental Business
A popular route individuals have amassed fortunes is by real estate .business. This include not just the buying and selling of commercial and residential property but also the renting of property. The Jamaica corporation should become the landlord of Jamaica. Not only will the corporation achieve great wealth but Jamaicans will receive a fairer deal. So far, the Government providing of houses has been essentially limited to low income housing to enable poor people to obtain a home. Why should the government be restricted to the unprofitable  provision of homes for the poor? It is time to provide housing for all socioeconomic groups and at a profit. Let the profits come rolling in for the benefit of all Jamaica.

Secondhand Clothing Business

As department store after department store goes bankrupt in America  because of internet competition,  one of the most flourishing business is second hand stores. Such stores as Goodwill Industries, Thrift Shops and 2^nd Avenue Value stores are teeming with shoppers. They employ many and are obviously making a profit.

Lately, when I go to Jamaica, I collect and take a whole suitcase of used clothing back to give to charity. I lug this clothing from the airport to my hotel, then I seek out a nearby charity and then lug the clothing there. Getting donations to a charity can be a pain and if made easier would encourage much more giving. Lots of Jamaicans, like me, come home for vacation.  With the proper publicity, lots more Jamaicans could be persuaded to give if the process were simpler. I suggest the Jamaica Business Corporation set up donations right in the airport. Nothing could be simpler.

I recognize distribution can be a problem. Disaster relief after a hurricane often ends up stockpiled on the pier unused. So, the solution for all these donations  is setting up second hand shops with the proceeds going to charities. They will provide employment and good money for worthwhile causes instead of gathering dust at some wharf or ending up in some dump.

Miscellaneous Businesses

There are many other business in which the JGC could participate. Some of these include:

• Maid Service Business
  A new business that is quietly sweeping America is the maid service cleaning business. I think it would do pretty good in Jamaica too. It is the cleaning of homes and office buildings. The maids are fully trained by the company and the company guarantees results. The maids work in at least pairs. The company provides transportation, cleaning equipment and supplies for the maids.  The business is bonded and insured against theft.  There are fixed hourly rates and offer daily, weekly, bi-weekly service.

• Banking Services
  Bank of Jamaica should offer banking services to compete with banks like Nova Scotia and Barclays with island-wide branches located in and offered as extended services of post offices.

• Garden Service Business
   – similar to the maid services business.
• Jamaica Bed &Breakfast (B&B)  Business -modeled after Air B&B