Polack Post: Caribbean Diversification – Now Or Never
By Peter Polack
Peter Polack
The shining example in the Caribbean of a country with a diversified economy is Jamaica with tourism, bauxite, remittances, manufacturing and agriculture. This has come about not by the efforts of any single government or party, but necessary survival.
One of the first elements was the production of condensed milk in 1940 which went on to be joined by the champion drink Milo in 1966. The country has gone from strength to strength in this policy. Many Caribbean countries are not as lucky especially without the blessing of oil.
At the time Jamaica had started her tourist juggernaut as Summerland, that went from strength to strength, helped by many individuals of different political persuasions, to what it is today.
Diversification is more urgent today given the tariff hurricane or Ukraine war as Europe and North America draw inwards. Other countries are moving towards the paddle your own canoe model.
Tourism in the Caribbean is in great danger.
The danger lies in reliance on a single sector to bolster the economy such as happens with tax havens like the Cayman Islands which has a half of their budget from the so called financial sector or money parking lot. There are others in the same position. Even their financial head has recognized this, calling for a sovereign fund for a rainy day or diversification.
That would be a smart move given recent U.K. treatment of their needy citizens only exceeded by empty promises for development funding.
The people of Portland in Jamaica are still waiting for a promised $60 million tourist railway in 2016 to be financed by the UK Caribbean Infrastructure Fund, much less the $300 million to eight fake lucky Commonwealth countries. The British Overseas Territories are unlikely to see a cent as the mother country battles another failed attempt to balance their budget.
What is a Caribbean country to do?
No oil, critical minerals or outsourcing can come to the rescue. The only hole card is the untapped diaspora, the biggest sector. A natural source for a sovereign fund and other things but it would come with a price tag.
A good start would be to grant the vote to the disenfranchised voters that hold up the Jamaican economy and creation of a substantive and dedicated ministry thereafter. These fund supporters would want to see a squeaky clean administration and orderly society, unavailable at the present time.
The longer Caribbean governments procrastinate on an airtight integrity code and behavior for leadership the longer the diaspora will hold on to foreign assets and residences.
Think about it. The man in the street will not behave if the political elite do not. They are aware of each and every indiscretion. Rewards and curfews be damned.
How many more must die before we come to this realization.
It is either going to be up or down.
To those in power or the few holding the balance of power, your call.
Notes
Peter Polack is a former criminal lawyer in the Cayman Islands for several decade. His books are The Last Hot Battle of the Cold War: South Africa vs. Cuba in the Angolan Civil War (2013), Jamaica, The Land of Film (2017) and Guerrilla Warfare: Kings of Revolution (2019). He was a contributor to Encyclopedia of Warfare (2013). His latest book is a compendium of Russian espionage activities with almost five hundred Soviet spies expelled from nearly 100 countries worldwide 1940-88.
His views are his own.
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