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Jamaica

Weekly reporter for May 18 2002

In this week's edition we feature several interesting facts about Jamaica:

Child Labour in Jamaica is a problem despite UN's efforts. A more concerted effort might be necessary to end this menance.

Virus resistant papaya could go commercial next year

LOCAL researchers are working to develop a new breed of papaya that is resistant to the ringspot virus that has crippled the country's papaya industry.

Ricky Wate, chairman of the Jamaica Papaya Growers Association (JPGA), explained that the research on the new breed was now almost at the commercial stage as a result of collaborative work between the Jamaica Agricultural Development Foundation (JADF), and Dr Paula Tennant, a research scientist at the Biotechnology Centre at the University of the West Indies (UWI).

"They have the plants in a research area at Brampton in Old Harbour and I think that we may be able to test these plants in the field some time next year," he said.

Chief executive officer at the JADF, Vitus Evans, added that the biotechnological methods used to develop this resistant breed of papaya involves the use of a vaccination technique, where part of a virus is transferred and incorporated into the plant's make-up. These transgenic or genetically-modified plants are able to recognise the presence of the ringspot virus and to subsequently mount a "vigorous defence".

Evans also said that genetically-modified papaya varieties are being field tested under regulations stipulated by Jamaica's National Biosafety Committee to assess their agronomic performance as well as their resistance to virus populations.

"More importantly, rigorous testing of the nutritional composition and safety of fruits from the transgenic papaya plants are being conducted. The potential and limitations of this new product will be thoroughly assessed prior to consideration by the National Biosafety Committee on release of the material," Evans said.

First detected in the island in 1989 at the Bernard Lodge Estate in St Catherine, the ringspot disease has devastated the papaya industry, driving farmers out of the market and destroying a number of plantations in the south eastern section of the island, including Belvedere in St Thomas and Clarendon Park in Colgate, St Mary.

Characterised by the yellowing of leaves -- with dark green streaks and c-shaped rings on the fruits, stalks and stems -- the disease serves to reduce the vigour of trees and plants, reducing fruit quality and flavour. It is spread from plant to plant by insects called aphids.

"Presently, approximately 410 hectares (1,000 acres) of land is cultivated under papaya, and this figure is down from the 1997 figure said JPGA chairman Wate. He added that apart from developing a resistant variety of the fruit, the JADF's rebuilding strategy also "includes moves to increase the involvement of small papaya farmers who are serious about co-operating with others in the industry." He said these small farmers are being assisted to acquire the necessary technology to grow the fruit and market their produce by teaming with larger growers.

Already, some success has been achieved from these measures as the association was able to increase the acreage of papaya under cultivation by approximately 80 hectares (200 acres) over the last two years.

Noting the industry's earning potential, Wate remarked that papaya was the second highest earner of foreign exchange for the non-traditional export sector, with earnings of US$10 million before the disease hit the island. Earnings from exports now stand at about US$5 million.

Papayas, which are ready to be harvested within nine months of being planted are shipped mainly to the North American and European markets, including Moscow and Finland.

Locally, there is also huge demand for the fruit. "I would say the local consumption is easily over 45,000 kilograms (100,000 lbs) per week This is compared to the much smaller consumption level of 2,250 to 4,500 kilograms (5,000 to 10,000 lbs) some 12 years ago," Wate added.

Jamaican tourism going bust

THE question is put deliberately to be provocative. For that is how the debate has been shaping up as between the Jamaica Tourist Board (JTB) with its umbrella the Ministry of Tourism and one of the major players Gordon Butch Stewart with his umbrella (by and large) the Jamaica Hotel and Tourist Association (JHTA). The bottom line is that economic interest of Jamaica is at stake, for tourism is a lifeline of the economy. Having spoken at length over the past few days of public wrangling, with both the minister of tourism, Portia Simpson Miller, and protagonist, Butch Stewart, I now offer a few perspectives.

In the first place, believe it or not, both Mr Stewart and Minister Portia Simpson-Miller share the same objective, that is, greater efficiency within the JTB. The similarity has been obscured in the back and forth blame exchanges. And the answer to the question in the title of this piece is, "Forget it". We cannot afford the cass-cass. However, there are some useful indicators coming from the debate and from gleanings in my discussions with the minister and the major player whom she terms a "major partner".

To begin with, as Bruce Golding noted on his radio talk-show programme Disclosure, the call by Butch Stewart for reform within the operations of the JTB is not new; according to Golding, his archives indicate Stewart's theme dates back to Year 2000 and even earlier. Therefore, the call for reform is not just a knee-jerk reaction to the disastrous decline of over 22 per cent in tourist arrivals last month. On the other hand, Minister Simpson is quite new to her ministry as well as to the tourism sector generally. Inevitably, on her learning curve, she has to be guided by her internal advisers as well by the players in the wider field of the tourism industry.

That observation dovetails with the efficiency objectives of both Stewart and Simpson Miller. For I gather that whereas the minister has been doing internal re-structuring (she calls it "tightening"). Mr Stewart is calling for wider dialogue and input from the significant players in the industry. However, that, I gather, does not mean only the larger players like himself. What I heard from Stewart, is his calling for a return to the days when collective input and "seminars" involving a wide cross-section of industry players used to be initiated by the JTB.

That kind of approach makes sense to me. For if all those who have a significant stake are involved in collective decision-making on behalf of the industry, the blame-game must disappear. Minister Simpson-Miller may find that in her drive for greater efficiency, the collective intellectual energy, the wisdom and experience of the wider industry will serve her well. And Fay Pickersgill, Executive Director of the JTB may find that instead of having to be defensive about her staff and operations, she can fall back on the fact that the wider industry industry was fully courted and respected. To qoute another major player, "the collective use of the intellectual energy of those who have ideas to contribute, could lead to a brilliant result for Jamaica."

One such idea came from John Lynch now with Sandals but formerly director of marketing for JTB, as heard on a radio talk-show programme. Dealing with JTB's difficulty in getting a new TV commercial aired because of limited funding and indebtedness, Lynch said why not resurrect the old successful TV ad, "Come back to Jamaica". He claimed that a large proportion of Americans have never seen it. Now that is an example of the kind of cost-cutting ideas that may serve the JTB well and, of course, the nation in the process.

Let us recognise that a call for efficiency does not mean that the management and staff of JTB are not hard at work, doing the best they can. I know from talking with Minister Simpson Miller that a major concern of hers is that the staff should not be de-motivated by what may appear as a denigration of their efforts. She is right. But I also heard Stewart praising JTB staff as having "good people" working there. The issue is not whether management and staff are working hard. It is whether a new structure or a new approach will reap much better results from the existing staff.

In that vein, if scaling back some parts of the operations, re-configuring use of resources, staff-cutting and redundancies become necessary in the short run, then it may be painful but unavoidable to bite the bullet. Some of the greatest and most successful organisations have had to do this from time to time. IBM and Chrysler in the USA are notable examples. And yes, the JTB under its new chairman, banker Bill Clarke, has ordered a new study to determine a re-structuring of JTB. The motive is a good one. However, let me join all those who point out that with the last such study only three years old, why on earth does JTB need another one now?

I am reminded of being recruited by a Canadian government (Ontario) to do a study for a new policy initiative. When I arrived to work inhouse, I was shocked to find a number of similar studies had been done by previous consultants whose work was no less or even better than I could do. I strongly suggest to Chairman Clarke, the board and the minister that the only study to be done now is a study of the studies already on the shelf. And as a corollary, have board meetings every month instead of every three months.

A final observation. The minister is right to point out that her purview is a destination whereas large players like Sandals and SuperClubs are selling their special products. But in fact the interests of both are fully intertwined. If a supermarket does not advertise itself, there won't be the swell of customers to buy their excellent products. But if the excellent products do not advertise themselves, there won't be the swell of demand for them in the supermarket. Both store and product must have complimentary advertising. The one helps the other.

So let's not waste mental energy comparing whether JTB or individual hotels do more or less proportionate advertising. Instead, let's focus in optimal results and best return for every dollar spent on advertising the destination (the supermarket) as well as the products (large, medium, small hotels). The resulting synergy of ideas, efforts, resources and results will be for the nation the economic salvation we all earnestly seek.

Geof Brown is HRD consultant and retired senior lecturer, UWI.

Immense Jamaican Debts

NOT many Jamaicans, it seems, have fully grasped the immense seriousness of the country's massive and mounting debt which has doubled to $495 billion since l989. As devastating as the debt itself is, the interest and principal account for $135 billion or 64 per cent of the total expenditure, leaving just 36 per cent to finance other inescapable requirements for running the country. So at present the government has no alternative but to borrow or the country will face social dislocation.

What must also be of critical concern is the fact that our public debt at the end of March 2002 was a startling 133 per cent of our Gross Domestic Product, the total value of the goods and services we produced which meant we did not produce sufficiently in relation to our debt. We have to embark on a more aggressive investment programme because it is from increased production of goods (especially for export) and services that revenue will also flow by way of taxes and fees to help finance the budget. Increased production of goods and service will also provide more jobs.

In his budget presentation, Mr Patterson said that the goal of the government is "to get the debt to the GDP ratio well below 100 per cent within five years and that the borrowing strategy cannot work". Finance minister Dr Omar Davies has also recognised this untenable position. He said in his presentation that the primary objective of the debt management strategy is to minimise debt-service cost and to reduce the overall debt burden. It occurs to me that the government is on the right track in deciding to pursue an austere budget for the 2002-2003 fiscal year which calls for the spending of $210 billion that is $10 billion less than was actually spent last year.

Debt payments this year, as already mentioned, total $135 billion or 64 per cent of expenditure compared with $148 billion or 67 per cent in the revised budget last year. In financing a budget, the experts say the ideal is to have a surplus for development projects. Dr Davies said that the present objective is for the surplus to take place in the 2004-2005 fiscal year. At the same time, this column has been told that controlled deficit, if this is the result of prudent spending like on education, is acceptable in many countries.

While I do not have any claim to financial or economic expertise, it seems to me that the time is coming when the government will have to put a cap on borrowing and set an annual target for debt payment. This would mean tightening up on spending, increased taxation and improved tax collection. We have to take into account also that the sale of assets, the proceeds from which help to run the country, is reaching depletion point. Of course, the government's debt management strategy is to raise adequate levels of financing at minimum costs, while pursuing strategies to ensure that the national public debt progresses to and is maintained at sustainable levels over the medium term. Another objective is to attract investment on a greater magnitude to increase production of goods and services in order to accelerate meaningful growth. There is no doubt that the debt burden is placing the country at risk and a national approach to deal with the problem is imperative.

It is clear to me that increased taxation, whichever party forms the next government, is inevitable. The country has to learn to develop a greater capacity to live within its means. Tackling the debt problem aggressively is going to be a painful exercise.

Opposition spokesman on finance, Audley Shaw's proposal to raise low-cost funds as well as to seek debt relief was arrogantly dismissed by Dr Davies as " mumbo jumbo". However, some aspects of the proposals, particularly that which deals with debt forgiveness, deserve consideration. Apart from his mean remarks about Shaw's proposals, Dr Davies made perhaps his most brilliant budget presentation in the nine years he has been finance minister which was also one of the best by any finance minister I have heard.

He showed a comprehensive grasp of the economy and its problems and whether all of his solutions will work out is left to be seen. He was not afraid to say that it was an austere budget and he presented the facts, plain and simple. Both the presentations of Mr Patterson and Mr Shaw were in essence more suited for the political platform. In an election year, it is normal for prime ministers to deliver electioneering speeches in their budget presentations.

The erudite Opposition leader Edward Seaga spoke as a statesman and demonstrated his considerable knowledge of the economy and how to mend it and move forward. Readers may recall that a joint select committee of Parliament had requested certain information from the Ministry of Finance and the Bank of Jamaica for a study on the collapse of the financial sector. The request was refused. Mr Seaga said that if the JLP forms the next government it would have such a study undertaken. But after hearing his scholarly presentation on the cause of the collapse, I wonder if the proposed study will still be necessary.

Notable omission

During the budget debate, Mr Patterson presented a Code of Conduct for ministers based on the United Kingdom's code. It was a good first step and I do not agree with those who said the move was a facade or "face card", as some Jamaicans put it. However, I am sceptical whether all ministers will live up to its provisions. Some of them have poor records. There is one case where some ministers ignored the law of the land for years by not making their annual returns of income, assets and liabilities to the Parliamentary Integrity Commission. We will see what happens after the new measures are in effect.

Dr Karl Blythe disobeyed the directions of Cabinet regarding the Operation PRIDE programme and was forced to resign only after the matter was exposed by Mr Shaw. Sometime ago Mr Patterson promised to deal with ministers who did not perform well. Apart from Dr Blythe there was, for example, Phillip Paulwell, minister of industry, commerce and technology who made a shambles of the information technology programme.

The prime minister was rather selective in adopting the United Kingdom Code of Conduct for ministers. He selected seven of the nine requirements. The two he omitted are the ones most constantly abused by ministers not only in this administration but also by past administrations. These are:

*Ministers must keep separate their roles as minister and constituency member. In this country the two roles are sometimes wrapped up into one.

*Ministers must not use government resources for party/political purposes. They must uphold the political impartiality of the civil service and not ask civil servants to act in any way which would conflict with the Civil Service Code. Mr Patterson needs to explain why those two sections have been omitted from the proposed Code of Conduct for Jamaican ministers. It is open secret that some public servants as well as state ground and air transport are used for political purposes.

Cheaper AIDS drugs

FOUR of the world's largest pharmaceutical companies -- Merck Sharp & Dohme, Glaxo Smith Kline, Boehringer Ingelheim, and Bristol Myers Squibb -- have agreed to slash the price of their HIV/AIDS treatment drugs to Jamaica by up to 90 per cent, a development which health officials say could mean a lifeline to the estimated 20,000 Jamaicans living with HIV.

Additionally, Boehringer Ingelheim will provide, free of cost, to public sector hospitals, the drug Viramine, specifically for treatment of pregnant women so as to prevent mother-to-child-transmission (MTCT) of AIDS. This will benefit up to 500 mothers a year.

The price reductions were announced yesterday by the health minister, John Junor, after two days of negotiations in Kingston between the firms, the Jamaican government, regional and international health organisations and AIDS support groups.

"...We gratefully accept the prices that have been offered even though they are above our ideal prices," Junor told a press conference at the Renaissance Jamaica Grande hotel in Ocho Rios. "...They will open a stream of opportunities for many sufferers with AIDS."

Yesterday's announcement came nearly two months after local company, LASCO, announced that it was placing on the market a series of anti-retroviral drugs, which would have been 80 per cent cheaper than any available brands. These LASCO-marketed drugs are produced by an Indian firm, Cipla Limited.

Under the agreement the following concessions will be made by the pharmaceutical majors:

* Boehringer Ingelheim, in addition to the free Viramine to battle mother-to-child transmission of AIDS, will cut the cost of the drug by 56 per cent, from US$770 to US$432 a year per patient to public sector patients.

* Bristol Myers Squibb is offering to the public sector a 90 per cent reduction on its anti-retroviral drugs Zerit and Videx, which will see their cost dropping to US$270 and US$310 per patient per year. According to Junor, his ministry is continuing its talks with Bristol Myers Squibb seeking a reduction in price to the private sector.

"Bristol Myers Squibb is also willing to offer this price to the private sector as well, with the clear understanding that the HIV patients benefit fully from the reduced price," the minister explained.

* Glaxo Smith Kline is offering to the public health sector and non-governmental organisations (NGOs) a 74.45 per cent reduction on the cost of their drugs, Combivir, Retrovir and Epivir from over US$4,000 to US$1,022 per patient per year. Prices of these drugs to private health sectors remain the same.

* Merck Sharp & Dohme (IA) Corp will make their drugs, CRIXIVAN (idanavir sulfate) and STOCTRIN (Efavirenz) available to the public and private health sectors for US$600 and US$500 respectively -- an 85 per cent reduction.

Of Jamaica's HIV/AIDS population, an estimated 4,000 need anti-retroviral drugs, but only a minuscule amount actually use them. They were just too expensive.

"Due to the high cost of these drugs, less than five per cent of persons with AIDS who are in need of ARV drugs are currently taking them," Junor said.

This latest initiative, which will bring Jamaica in line with a handful of other third world countries where the pharmaceutical firms have so far slashed prices, will increase access, but Junor indicated that costs, for many people, will continue to be prohibitive.

"We recognise that there is still need for the government health sector to invest additional funds in setting up a comprehensive HIV programme, which would ensure that we could take full advantage of any further reductions by pharmaceutical companies," Junor said.

It was a position endorsed by Sean Hughes of Merck Sharp & Dohme, who, while hailing the partnership between the government and the companies, stressed that lowering the cost of anti-retroviral drugs represented only part of the solution to the HIV/AIDS epidemic.

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