The Jamaican economy is becoming more sophiscated and no longer needs to be picking winning industries for stimulus packages to grow national production.

That’s the word from Internationl Monetary Fund (IMF) representative to Jamaica, Dr Constant Lonkeng Ngouana, who explained that this sophiscation is manifesting itself in a number of ways, such as the recent initiatives by the banking sector to address some of the roadblocks in accessing capital by the micro small and medium enterprises (MSMEs).

He emphasised that the banking sector on its own and without any Government push or help has sought to correct this problem — more evidence of the sophiscation of the Jamaican market.

Addressing members of Bethel Baptist Church recently, Dr Lonkeng said in return the MSMEs are attempting to open up their books and operations to become part of the financial inclusiveness being sought.

The IMF Jamaican representative observed that Jamaica’s tax capacity has increased and its tax base has expanded over time in a seamless manner, owing to the sophication being exhibited by the market.

He also observed that tax incentives are being reduced to level the playing field rather than create distortions in giving incentives to some industries in the thrust of picking winners to grow the economy.

“Who are you to pick winners? Who are you to pick winners? What we should be doing is leveling the playing field,” Dr Lonkeng said. He contended that what Jamaica has been doing in the past is using tax incentives to attract businesses, which is not the right move.

http://www.jamaicaobserver.com/business-observer/no-need-to-be-picking-winners-for-growing-the-economy-says-imf-rep-to-jamaica_171744