In an island long afflicted with what has been facetiously characterized as mendicancy syndrome, it is becoming increasingly apparent that some investors and lenders have become so emboldened, that from their jaded perspective, Jamaican rules and regulations relating to the development process are merely indicative and not binding. This as increasing pressure is being applied for the Jamaican authorities to compromise development standards, to facilitate expedient investment projects which are likely to be inimical to the principles of sustainable development over the medium to long term. Firstly, there was the suggestion from the European Union Representative in Jamaica that the Government engage in the use of “silent agreements” with developers to facilitate meeting artificially prescribed deadlines of 90 days for development approvals. Now, because of the Government’s forthright action to curtail a blatant breach of the approval process regarding the RIU property in St James, there is word of the island being denied potential investment projects, ostensibly as punishment for the State for appropriately fulfilling its statutory obligations to the people of Jamaica. Indeed according to the Gleaner, the Excellence Group has decided to substantially scale down its investment plans for a proposed 2,000 room Resort at Oyster Bay, Trelawny and two of the largest hotel groups in Spain - Barcelo and Sol Melia - have reportedly struck the island off their list of proposed investment locations. Barcelo is reportedly shifting its US$1 billion ($71 billion) of investment capital to elsewhere in the Caribbean as it is now being reportedly claimed that " the investment climate here (Jamaica) has become extremely unfriendly and antagonistic."
However, the choices facing the Jamaican Government are stark. Continue to facilitate the compromisation of the building approval process, with its attendant safeguards in an effort to garner politically expedient projects and face the medium to long term environmental crisis that such irresponsibility will foster, or tighten and effectively monitor the approval process to ensure optimized and sustainable investment which will facilitate the long term development of Jamaica. Indeed, the argument being posited about Jamaica being hostile and antagonistic to investment, is reflective of a mendacious approach being adopted by unscrupulous investors, seeking to bring pressure to bear on a struggling economy overburdened with debt and desperate for foreign investment flows. In fact the contrary is true, the Government of Jamaica has been overly accommodating to foreign investment, oftentimes to the detriment and exclusion of the locals. For example, the granting of an exclusive licence to operate Casino Gaming to the Harmony Cove Project by the Government a few years ago despite the known objections by the powerful Church lobby in Jamaica and indeed with no reference to the citizens of the country, the reported alteration of Laws or failure to enforce laws to accommodate Hotels which were built in breach and the implementation of several incentive programmes to facilitate investment to name a few.
However as it has been portrayed, the RIU breach was blatant and represented a calculated defiance of a negotiated approval process with the parameters for approval long known by all parties concerned. Jamaica cannot afford to facilitate building breaches, which aside from reflecting a casual disregard for the laws and approval processes, may actually constitute a threat to public safety. Further the Spanish investors are not being singled out for any special treatment as Prime Minister Bruce Golding was very clear in his commentary, “The Government will not tolerate this blatant violation nor will it entertain any request for breaches to be regularized." This signaled the end of an era in Jamaica where there had been literally a free-for-all by local and foreign developers alike, where the law and the approval processes were selectively recognized and then in a de-facto exercise all breaches were regularized and given legitimacy. This has led to situations of excessive plot ratios, breaches of restrictive covenants, inadequate set-back distances, and inadequate infrastructure networks inclusive of water among other ills in residential communities such as Seymour Lands, Trafalgar Park and the residential sections of New Kingston. Such breaches are mirrored in other urban centres across Jamaica.
In the final analysis, Jamaica welcomes and requires both foreign and domestic investment. However such investment must occur in an orderly environment where due deference is given to the laws and regulations governing the specific investment activity. Further, Jamaica’s attractiveness as a Tourism investment destination is not confined to the machinations of one particular group of investors and in fact has been bolstered by the recent formal approval of casino gaming activities on the island. In fact, investors are usually guided by the more mundane issues such as Country Risk, Market Share and Internal Rates of Return. However, whereas Jamaica undoubtedly provides excellent value for money, adherence to the tenets of sustainable development remains non-negotiable. Prime Minister Golding must stand his ground and reaffirm to all that “Jamaica is not for sale!”
However, the choices facing the Jamaican Government are stark. Continue to facilitate the compromisation of the building approval process, with its attendant safeguards in an effort to garner politically expedient projects and face the medium to long term environmental crisis that such irresponsibility will foster, or tighten and effectively monitor the approval process to ensure optimized and sustainable investment which will facilitate the long term development of Jamaica. Indeed, the argument being posited about Jamaica being hostile and antagonistic to investment, is reflective of a mendacious approach being adopted by unscrupulous investors, seeking to bring pressure to bear on a struggling economy overburdened with debt and desperate for foreign investment flows. In fact the contrary is true, the Government of Jamaica has been overly accommodating to foreign investment, oftentimes to the detriment and exclusion of the locals. For example, the granting of an exclusive licence to operate Casino Gaming to the Harmony Cove Project by the Government a few years ago despite the known objections by the powerful Church lobby in Jamaica and indeed with no reference to the citizens of the country, the reported alteration of Laws or failure to enforce laws to accommodate Hotels which were built in breach and the implementation of several incentive programmes to facilitate investment to name a few.
However as it has been portrayed, the RIU breach was blatant and represented a calculated defiance of a negotiated approval process with the parameters for approval long known by all parties concerned. Jamaica cannot afford to facilitate building breaches, which aside from reflecting a casual disregard for the laws and approval processes, may actually constitute a threat to public safety. Further the Spanish investors are not being singled out for any special treatment as Prime Minister Bruce Golding was very clear in his commentary, “The Government will not tolerate this blatant violation nor will it entertain any request for breaches to be regularized." This signaled the end of an era in Jamaica where there had been literally a free-for-all by local and foreign developers alike, where the law and the approval processes were selectively recognized and then in a de-facto exercise all breaches were regularized and given legitimacy. This has led to situations of excessive plot ratios, breaches of restrictive covenants, inadequate set-back distances, and inadequate infrastructure networks inclusive of water among other ills in residential communities such as Seymour Lands, Trafalgar Park and the residential sections of New Kingston. Such breaches are mirrored in other urban centres across Jamaica.
In the final analysis, Jamaica welcomes and requires both foreign and domestic investment. However such investment must occur in an orderly environment where due deference is given to the laws and regulations governing the specific investment activity. Further, Jamaica’s attractiveness as a Tourism investment destination is not confined to the machinations of one particular group of investors and in fact has been bolstered by the recent formal approval of casino gaming activities on the island. In fact, investors are usually guided by the more mundane issues such as Country Risk, Market Share and Internal Rates of Return. However, whereas Jamaica undoubtedly provides excellent value for money, adherence to the tenets of sustainable development remains non-negotiable. Prime Minister Golding must stand his ground and reaffirm to all that “Jamaica is not for sale!”
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1 comment:
Well said!
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