Jul/Sept 2018 Articles


The vision of economic independence is not unattainable. Jamaica, over the last decade, has made some strong structural, fiscal and monetary transformation towards building a stronger and more resilient economic system.

 


Economic transformation requires shared national vision and leadership from all sectors and institutions regardless of which party holds the reins of power.


Unleashing the power of the stock market will drive wealth creation by funding ventures that local banks are not inclined to support adequately.

 


For some time now traditional financial institutions have been facing disruptions in their business model as new technologies facilitate major changes in customer perceptions and expectations. How are the banks responding?


The IDB says crime and corruption cost the Jamaican economy some four percent of GDP so any talk about serious economic growth must address this issue squarely.


Business executives increasingly consider information to be one of their most important competitive weapons, but few organisations have any sense of the value of their Data & Information assets.


This article discusses the business models of two mutual firms in Jamaica with a view towards answering one critical question: What strategy should Jamaican mutual firms adopt to avert or reverse declining financial health? Observations span a period of nine years to obtain a long-term picture of financial performance. The firms examined are the Community & Workers of Jamaica Cooperative Credit Union Ltd. (C&WJ) and the Jamaica National Building Society (JNBS).


Substantial funding is available for social enterprises but many of them are not cashing in because they lack the capacity to absorb and use the funds properly.

Local Business News

JAMAICAN conglomerate GraceKennedy (GK) saw an uptick in both revenues and profits for the nine-month period ending September 30, 2018.For the period under review, Grace posted revenues of $73.8 billion, an increase of $4.5 billion over the same period last year.This revenue figure generated a net profit of $3.7 billion which, when adjusted for non-recurring gains last year, spells a $415 million increase over the prior period.

As the redevelopment of the island of Barbuda continues since its devastation more than a year ago by Hurricane Irma, Jamaican-based company CAC 2000 Ltd has been selected to join an international engineering team involved in the development of an initial set of multimillion-dollar houses on the island.

CIBC FirstCaribbean International Bank and Kingston Properties Ltd (KPREIT) have signed a US$5.06-million loan which will support the refinancing and acquisition of property.The loan features both US and Jamaican dollar tranches to meet the needs of Kingston Properties.

HAVANA, Cuba (AFP) — Cuba announced Wednesday it will pull thousands of its doctors out of Brazil in response to president-elect Jair Bolsonaro's “direct, contemptuous and threatening” remarks about its medical aid programme.

Telecommunications provider Digicel Group has delayed yet again the deadline for its offer to bondholders, aimed at extending the timeline for repayment on US$3 billion of its debt by two years.Separately, Jamaican...

Telecommunications company Flow Jamaica, which is turning to so-called hybrid plans meant to have subscribers spend more on its services, is already seeing a six per cent gain in...

Come month end, GraceKennedy Remittance Services Limited, GKRS, is headed to court to challenge a decision by the tax authorities in Guyana that it underpaid taxes there by more than $240...

Get serious. That's the plea from the International Monetary Fund, IMF, which wants the Government of Jamaica to looking more closely at the burden on the public purse and workforce size when prioritising...

ST GEORGE'S, Grenada (CMC) — Grenada says it is gearing to welcome half-a-million visitors to the island with tourism officials backing its “marketing beyond the main hub” campaign.

BUENOS AIRES, Argentina (CMC) — A new report by the Inter-American Development Bank (IDB) says Latin America and the Caribbean need a “quality leap” from declining export competitiveness. On Wednesday, the IDB said in the first quarter of 2018, the value of exports from Latin America and the Caribbean grew at a year-on-year rate of 9.7 per cent in comparison with the same period in 2017.

From Harvard Business Review

John Rizzo/Getty Images Discounts and promotions are at an all-time high, often comprising the single-biggest cost within many retailers’ P&Ls. Yet despite these high stakes, and the growing adoption of sophisticated analytics, many retailers continue to take a broad-brush approach to running promotions that results in missed sales and profits. The most common...
IAN HOOTON/SCIENCE PHOTO LIBRARY/Getty Images You walk down the hall, head spinning — unsure of how to stabilize yourself. You went into your one-on-one thinking you had clarity on your current priorities. You just left it wondering how in the world you would squeeze in the five new ideas your boss just dreamed up. You cringe when you have the premonition that an email...
Daniel Viñé Garcia/Getty Images While on an investor tour in Europe, I ended a busy day by joining my boss at a nice restaurant. After he said something funny, I responded in my typical style — throwing back my head and letting out hearty, unabashed laughter. People were taken aback. They turned to stare at me. I asked my red-faced boss whether my laughter had embarrassed...
Is your teamwork not working? In this episode of HBR’s advice podcast, Dear HBR:, cohosts Alison Beard and Dan McGinn answer your questions with the help of Amy Edmondson, a professor at Harvard Business School and the author of The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth. They talk through what to do when...
PM Images/Getty Images A recent Navigant survey found that U.S. hospitals and health systems experienced an average 39% reduction in their operating margins from 2015 to 2017. This was because their expenses grew faster than their revenues, despite cost-cutting initiatives. As I speak with industry executives, a common refrain is “I’ve done all the easy stuff.” Clearly,...

Executive Insights

June 28, 2017

The concept of climate change is again a very topical issue. Jamaica has had two recent bouts with heavy rains that have emphasized previously known areas of hazards, and have identified totally new areas that were previously overlooked or were dormant. The estimates of damages are not yet final, and even due diligence will not capture undocumented losses of agriculture, livestock, or illegal housing. Therefore the potential losses will continue as mere replacement does not necessarily equal enhanced restoration.

April 3, 2017

For our younger readers, Venezuela may only have a distant image comprising oilfields and offshore drilling that many have only seen pictures of. Venezuela’s second image may be the beautiful entrants in Miss World or Miss Universe. In these days of modern air travel there are only three convenient routes; one via Miami; one via Panama; or one via Trinidad.

September 25, 2016

In a previous article in this series I questioned the Business Confidence indices for the first quarter of 2016 that showed a positive jump in confidence. I wondered if this was influenced by the expectation of a General Election, a continuity of the then government, or a change of government. I have no definitive reason only intuition, for deciding between these possible influences, or other random answers. Since then several things have happened that serve to further confuse me.

Letters to the Editor

MSBM Review invites your views on any issue of interest to you. Submissions must include your name and email address and should be kept to 300 words or less. We may use letters in either the Print or Web edition of the Magazine.

Blogs

September 30, 2016

Of the five priority Action Areas emerging from the deliberations at the successful IODC 2015 in Ottawa, Canada (i.e., The Charter, Standards, Capacity Building, Measurement, Innovation), the latter—Innovation, otherwise described as the “Problem-Solving” Action Track — is perhaps, the most eclectic and least structured of the areas.

September 15, 2015

No matter what source you subscribe to, the numbers are staggering, when one considers the potential economic value of open data. The McKinsey Global Institute estimates approximately US$3 trillion value potential across 7 domains. The Warsar Institute for Economic Studies projects a contribution of €205 billion annually to the European Union. An Omidyar Network study suggests open data impact for the G20 countries could be US$2.6 trillion per annum or 1.1% of GDP. What does this mean for small developing countries like Jamaica?..

March 10, 2014

The expression "Innovation at the periphery", has become more popular in the last few years and perhaps even over-used in several contexts. It describes technological innovations in seemingly remote geographical regions. It promotes the "skunkworks" innovation that takes place within an enterprise, but outside of mainstream R&D centres. It highlights indigenous frugal innovations that emerge out of developing country contexts, whose global adoption reverse the accepted convention of North-South technology transfer.