Business View Caribbean | May 2016

40 May 2016 - Business View Caribbean Business View Caribbean - May 2016 41 its institutions, lend themselves to certain validity and provide a platform for businesses to flourish.” Awhile ago, we spoke to the Minister of Finance and Planning who talked about how that Ministry helped move the country away from high debt and high un- employment. What is your interaction with the Min- istry of Finance and Planning and do you agree that the programs that the government has put in place have been successful? “Absolutely. The relationship is a symbiotic one – a joint approach of working very closely. The Ministry of Finance sets the macro-policies and the macro- framework. My Ministry looks at the real economy and ensures that business gets done. So, it’s really sort of a hand-in-glove approach, taking the cue from the macro-policies and strategies and ensuring that this Ministry and its several agencies interpret that policy thrust correctly and put in place the strategies, pro- grams, and plans to create the conditions for success- ful businesses.” A major initiative in your Ministry, and the country as a whole, has been its desire and intention to become the world’s fourth logistics hub. Can you speak about the progress that’s being made in that regard? “Progress certainly has been made from the conceptu- al framework that recognizes Jamaica’s geo-strategic location in the Caribbean vis-à-vis the expanded Pan- ama Canal, and the larger markets in this hemisphere - the United States, Canada, and Central and South America – and the trade route back to Europe. Jamai- ca enjoys a very strategic position in global trade. But we recognize that the geo-strategic location, by itself, is not sufficient. We have to put in place the critical infrastructure around the maritime and aviation op- portunities. This, we are doing. “We have gone into a concession arrangement with the third largest shipping entity in the world – CMA CGM – utilizing the port of Kingston, which is the seventh largest natural harbor in the world and the region’s largest transshipment port, as a major hub for its op- eration. Through that, we will be expanding the port, modernizing its capabilities, and deepening its draft to accommodate the largest ships coming through the Panama Canal, and generally helping to create a bet- ter environment for maritime services and activities. Similarly, we are pursuing the divestment of the air- port through concession management to look at how we are going to expand its offerings, particularly as it relates to cargo traffic, and to link those two special economic zones to provide an industrial platform for global multi-nationals to operate their manufacturing and logistics operations here in Jamaica. “So, a lot is happening. And we are focused, as well, on our internal logistics, meaning our network of high- ways and railways to link into these special economic zones and to create that environment for large multi- nationals to position themselves in this hemisphere and participate in global trade. So, we see the mega- ports of Singapore, Dubai, and Rotterdam, and we want to duplicate that here in Jamaica.” Will there come a day when the ribbon is cut and the world recognizes Jamaica as the fourth hub, or is it an ongoing process? “It is an ongoing process, but there’s a minimum set of developments we all look to: an improved maritime and transshipment hub port, improved aviation and air cargo, links by rail, and the development and expan- sion of special economic zones. These are some of the minimum conditions. We’re also looking at our inter- national financial services hub, because we believe it ties in very neatly and synergistically with logistics ser- vices across a range of activities. So, we’re developing a financial services sector based, not on tax havens or anything of that nature, but on the critical services component of the Jamaican labor force and its ability to deliver legal accounting, and banking services to fi- nancial entities.” Can you speak about the role of foreign investment over the last several years? “We’ve had a growth in investment. When this admin- istration entered office investment had fallen to about $200 million. Now it’s over $1.2 billion in the calendar year just ending. And we look forward to more signifi- cant investment, based upon our policies and strat- egies. Foreign investors have brought their creativity, their linkages, and their best practices, especially in the area of logistics. And we look forward to increasing these investment activities over the coming year.” What are your Ministry’s goals for the next few years and what challenges need to be overcome in order to meet them? “The goals for our division are the ones set forth in our ‘Vision 2030’ (the country’s National Develop- ment Plan). We see Jamaica becoming a developed economy and society by that period of time. What that translates into is the quality of life – Jamaica being the choicest place to live, work, raise a family, and do busi- ness. This Ministry has a significant role to play in the economic growth and job creation aspects of it. “We have to move our unemployment rate from 12 percent down to a manageable five or six percent. We have to increase the rate of growth of our economy to make that possible, which means we have to expand training opportunities at all levels – tertiary, vocation- al, and practical. We have to grow investment and we have to ensure a productive labor force and drive pro- ductivity and competitiveness in the economy. We see all of this coming together around a logistics-centered economy, largely taking our cue from the fact that lo- gistics speaks to the ease and speed of doing busi-