Saturday, 30 July 2011

What constitutes national productivity infrastructure

The obvious elements of infrastructure required to underpin productivity growth are: a suitable macro-economic environment, good transport and telecoms links and high quality education and training. But there is more.

Take a look at this example.

World Bank experts have attributed Jamaica's perpetually disappointing economic performance to low productivity and suggest there are three major obstacles.

They estimate the country could achieve GDP growth of up to 5.4 per cent, but said that was predicated on the Government addressing and removing the constraints.

Low productivity, the bank argues, is ascribed to a high crime rate, deficient human capital primarily reflected in lack of adequate training for most of the labour force, and distortionary tax incentives combined with enclave development, manifested in the mining sector and all-inclusive resorts, that do not spill over to the rest of the economy.

Some of these fit within my first paragraph ... others don't. Its not always as simple as it first seems.

No comments: