Buy Jamaican > Importance to the Economy
Importance to the Economy
The JMA is heartened at the overwhelming success of the "Buy Jamaican…Build Jamaica" Campaign. The Campaign has boosted the morale of the sector, brought visibility to a number of local brands that were not as exposed prior to the campaign. As manufacturers continue to compete in an increasingly liberalized marketplace, maintaining a strong home market is critical to success. A large home market provides a base for launching into the export market. While the Jamaican home market of 2.5 million persons is considered small, it remains significant to other exporters from the CARICOM region.
One only has to look at the supermarket shelves and observe the diversity of products imported from the region, some of which are produced in Jamaica. These products continue to be imported and contribute to the spiralling trade deficit with CARICOM. In 2003 Jamaica’s estimated trade balance with CARICOM was US$472.1m, an increase of US$118.6m. Of the twelve trading countries in the region, Jamaica had negative trade balances with six. This phenomenon must be reversed and a Buy Jamaican Campaign provides an opportunity for this reversal.
Jamaica needs sustainable economic activity that will create jobs, increase the GDP, reduce the demand for foreign currency and eliminate the fiscal deficit. One solution is to support local industries by purchasing locally produced goods. This will assist in expanding the range of economic opportunities in the productive sectors of the economy. This means job creation for young Jamaican men and women and more disposable income for those employed. It will also increase the amount of taxable activities within the economy, hence increasing the base of government revenue collection. Furthermore, substituting imported products with locally manufactured goods would serve to decrease the demand for foreign currency, hence adding stability to the value of the Jamaican dollar. This is the essence of the Buy Jamaican Campaign.
How important are inter-sectoral linkages especially as it relates to manufacturing?
Inter-sectoral linkages are essential to development as they ensure that the benefits that are accorded to one area within an economy are spread throughout all other sectors. Thus, strengthening sectoral linkages will provide for a more equitable distribution of wealth and development. The manufacturing sector, as a secondary industry, is in a distinct position to facilitate linkages throughout the entire economy. Not only does the sector require raw materials for various aspects of its productive process, but also distributors for its finished products.
Therefore, increased productivity within all aspects of the manufacturing sector will result in increased demand for raw materials such as agricultural produces for food processing and minerals for the production of construction material and metal products. Additionally, where there is increased activity in the services sector it provides for increased demand for manufactured products whether in the form of goods to be distributed or products for expansion such as construction materials. Furthermore, the success of the manufacturing industry would result in increased product development and diversification as well as cheaper products. Additionally, improved activity in the manufacturing sector would likely benefit the financial sector through increased loan applications for increasing infrastructural capacity as well as a source of investment. It will also result in social harmony thereby impacting positively on the current crime wave.
Sponsored in part by the Jamaica Public Service Company Limited (JPSCo).