Private sector retreat
Editorial
The coming presidential retreat with the private sector is a welcome recognition of the vital role that business has to play in our economic development. The political parties all agree that the private sector must be the engine of growth and it has become increasingly clear that the lack of development and investment is at the root of many of our problems, ranging from the obvious ones of unemployment and low income levels to the related problems of inadequate social services. The retreat holds real potential but the parameters of the exercise should be clear. This is no time for generalisations and vapid talk about the role of the private sector. We have had enough of this over the years and it has led nowhere. The agenda must be focussed on specific issues and seek to arrive at concrete decisions, to be implemented by set dates. For example, the investment code needs to be finalised, printed and promulgated. This has been in the pipeline for years and it is inexcusable that it has not yet been finalised. If there is one thing the retreat should achieve it is to finalise this. That code will set the ground rules for investment, local and foreign. It should be simple and easily understood. Before the retreat the president's office should provide the Private Sector Commission with the draft code and comments on any areas it wishes to discuss. It would make sense, too, for the head of Go-Invest to be present and any other top officials immediately concerned with promotion investment. Secondly, the retreat should discuss the level of consumption taxes and import duties. In some cases these are too high. Also, some manufacturers still have to pay duty on imported equipment which is a real deterrent to upgrading. Can the levels of these taxes be decreased without prejudice to government's revenue base? Will more revenue accrue with lower taxes? Mr George Jardim, the new President of the Private Sector Commission (PSC) is a manufacturer with a long experience of all the pressures and bottlenecks businessmen face. Himself and his colleagues will already have crafted a priority agenda. Perhaps they should send this to the government in advance to enable them to prepare a response and for real dialogue. The retreat must lead to identifiable results and must not become another talk shop. The PSC should also to some extent function as a think tank or participate in an institution that performs this role. A good opportunity for undertaking this role may be provided when the National Development Strategy, now being finalised by Dr. Kenneth King and his colleagues, is published. That will provide a framework for meaningful discussion of all areas of the economy and the society and a think tank can play a useful role in helping to interpret and implement that strategy.
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