The bulk of the Jamaican economy is not engaged in earning foreign exchange, and this imbalance perhaps places some strain on our ability to consistently earn enough to “pay our way” as a country.
To become a strong economy driven and sustained by hard currency earnings, either existing exporters need to export more or more businesses need to get involved in earning foreign currency – or perhaps both.
On top of that, a significant portion of those entities not directly engaged in earning foreign currency (in addition to many who already are) should also be involved in saving foreign currency by concentrating on import substitution.
So-called “linkages” are also very important. We speak of it often in tourism, referring to local suppliers who produce goods and services to support that sector, but it is also very important to focus on those who can produce raw material and other goods and services needed by our local exporters.
Our export sector is somewhat complicated by the fact that the inputs of some exporters are heavily dependent on imports.
However, we are happy to note that in tandem with changing conditions and the ongoing economic reforms in recent years, several in this position have already creatively re-examined their business models. Some have found creative ways to produce more of their own inputs, thus lowering costs and increasing employment, so they are now reaping the benefits of the new environment with significantly increased exports.
With more research and applied technology, hopefully more will follow this trend and more linkages will also emerge to assist them.
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