Stokes optimistic about government's pivot to growth

By Halshane Burke    

 

Development Economist Dr. Chris Stokes says given the path chosen by the government, the pivot to growth was a natural course of action.

 

He was reacting to the recent policy statement by Prime Minister Andrew Holness indicating a plan to transition the country towards robust economic growth.

 

Dr. Stokes says, with an election on the horizon and the departure of Dr. Nigel Clarke, the stability in the macro economic landscape presents the perfect opportunity to move toward achieving growth. 

 

"For better or for worse, we have held strain, we have stabilised the economy. The Prime Minister said something very important, where he said stability is not the destination, but the foundation. There's no prize for being stable. That's just, in one school of thought, a condition requisite to growth. And I think now we can pivot to growth."

 

While Dr. Stokes welcomed the intention to pursue growth, he acknowledged that "a little bit of campaigning" was involved in the announcement, given that the current administration has a Ministry of Economic Growth and Job Creation.

 

Still, the development economist said it is crucial now for the government to put the measures in place to get the economy growing. 

 

"I'm encouraged by the approach of the government in two regards, using fiscal policy through tax incentives in conjunction with public-private partnerships, I think is a good free-market approach to addressing the growth. But I think that the government has to do infrastructure, education and so on. Tax incentives are always very helpful, although we have to be careful with those. I recognise the difficulty of the challenge, but I'm encouraged by the approach," he said.