Jamaica's debt, which now tops $1 trillion, is burdening the Jamaican taxpayer to a point where it seems each Jamaican will have two work two jobs if this country is to see any development.  Even with the UK's recent debt write off of £5 million, the situation is still dire.

But why does Jamaica owe that much money?  

For one, the country keeps borrowing.  The increase in Government guaranteed external debt of 2% last year was due mainly to money borrowed in support of Air Jamaica.  This is a major reason why they are now seeking a financial partner to lessen the burden on the Jamaican taxpayers.

I'm sure lessons in personal debt management could be applied to the country if Jamaicans in general were adequately informed of the role each person plays in the success of a nation.  

Jamaica's Net International Reserves (NIR), stood at US$1.956 billion at the end of March 2008. (Denis O’Brien, Chairman of Digicel, now has an estimated fortune of US$2.2 billion.  Interesting comparison isn't it?) This equates to 26.9 weeks of goods imports based on financial year 2005/2006.  However, it should be noted that this balance was mainly achieved from borrowing.  Put another way, if the country wasn’t borrowing as much money as it does, there wouldn’t be any money in the NIR.  Personal finance professionals advise people to use their savings to pay down debt. It makes no sense to earn 1 to 3% interest on your savings account while paying 12 or 15 or 18% interest on credit.  I’m no economist, but that principle should be applied to the national debt as it makes no difference which pocket the money is in.

Another reason Jamaica's debt continues to rise is the import/export ratio.  The vast majority of containers seen at the ports in Kingston everyday are filled with imports.  Manufacturing and agriculture are down.

According to preliminary data from the Planning Institute of Jamaica (PIOJ),the agricultural production index (API) declined by 10.8 per cent between April and December 2007, compared to the similar period in 2006.  This was in part due to the weather but it was also affected by the rising input costs.

What can Jamaicans do to turn the current tide of increasing imports, decreasing exports and the rising cost of living?  How can Jamaicans survive in this tumultuous global market place?  Jamaicans need to embrace technology and do away with the labour intensive ways of doing things.  A great example of a Jamaican embracing technology is Hopeton Singh in St. Elizabeth with his greenhouse farm, which utilizes hydroponics technology.  Hydroponics is a method of growing plants using mineral nutrient solutions instead of soil which guarantees a greater consistency of production

Mr. Singh stated that, "Whereas the experts say it guarantees increased growth rates of between 30 and 50 per cent, I recently harvested 16,000 kg (35,000lb) of tomatoes in a six-month period, which is almost 400 per cent more per square foot than I would have reaped using open field production."  More food equates to lower prices and would reduce our current dependency on food imports.  The 273,000 hectares of unutilized farmland can be taken advantage of using this farming method.

Using internet technology in retail is another way Jamaican companies can reduce the cost of items sold.  However, at this point in time, the lack of access to computers and credit cards and the high costs of local merchant services are hindrances which need to addressed if we are to fully take advantage of the benefits that e-commerce can provide.

The "Buy Jamaica, Build Jamaica" campaign, which was launched a few years ago by the Jamaica Manufacturers Association in collaboration with the National Commercial Bank, seems to have lost its impetus.  Programs like these need to be constantly in the public realm in order to sensitize the Jamaican public to the availability of quality Jamaican products.  Consumers need to check labels in the supermarkets and sacrifice a few extra dollars if it means supporting local producers.  It is only through actions like these that there can be continued levels of employment in manufacturing and production.  Buying more Jamaican products will ultimately bring down the price of items produced here.

Behavioural economist Meir Statman says getting out of debt "is the financial equivalent of trying to quit smoking."   Good intentions alone aren't enough. To kick either habit, you need to break your underlying patterns of behaviour.

One thing is for sure, that getting out of our indebtedness is going to take a concerted effort on the part of every Jamaican.