CRIPPLING ENERGY COSTS: How bright is our future?

                                                                       by Kymberli Whittaker, LL.B, LEC, B.A

In October 2014, the Prime Minister of Jamaica , the Most Hon. Portia Simpson Miller, while addressing an International Monetary Fund (IMF) sponsored 2014 High-Level Caribbean Forum, said  the high cost of energy is the single most deterrent to economic growth in Jamaica and the wider Caribbean, While I would not say it is the single, most deterrent reason, I must admit that it ranks high on the list. At US$0.40 per kilowatt-hour (kWh) we are bound to a cycle of poverty as we produce less, are able to buy less and thus we want  more , but are unable to maximize on our growth and development whether on a personal or national scale.

In understanding the issue of energy, the Prime Minister states that the energy costs accounted for in excess of one-third of Jamaica’s total import bill, and more than 125 % of the country’s total merchandise exports. Businesses have been affected severely by these high costs as manufacturing in Jamaica is expensive, yet we continue this nationalistic chant of “Buy Jamaica, Grow Jamaica”. The truth of this matter is that Jamaican goods are more expensive than those produced by our  foreign competitors. So even though we wish to support Jamaica, “Land we love”, our pockets do not allow us. The domino effect of this is increased imports, and money not staying in Jamaica to further contribute on a larger scale to our growth and development.

Nestle Jamaica confirmed yesterday that they will be halting local production of the Milo Energy drink due to high energy costs. They are packing up and moving out because of the high costs. Jobs will be lost, livelihoods will be affected, and  Jamaica will lose out yet again. In the mining sector over the years we have seen the closure of 2 million tonnes of annual alumina capacity since 2009 causing us to lose the possibility of US$700 million of gross export earnings. In addition, we recently learnt that the positions of more than 200 employees of the Bernard Lodge sugar estate in St Catherine have been made redundant to cut costs among other relevant factors I believe.

The ripple effect on small business cannot be ignored as we are constantly reminded through  the Opposition political party that Entrepreneurship is the way forward, and as was said quite recently, the days of Government creating jobs are over. The high taxes and the crippling energy costs mean that the playing field is not level and the odds are already stacked against a small business or enterprise seeking to make a profit and become viable. The graduates from University thus cannot realistically look to starting a business after leaving Tertiary level institutions as it is made to seem.

Petrojam came into being in the 1970's in the midst of an oil crisis, so that we could buy oil and refine it ourselves at a cheaper rate. Esso who had owned the refinery did not want to upgrade it and as such the Government of Jamaica bought it. As a state-run entity Petrojam is a revenue earner for our Government and this is reflected in their unwillingness to pass on the savings as consumers. What is happening now is know in economics as a "Windfall" where an unexpected gain is being exploited by our Government, as Petrojam is making more money due to this continued drop in oil prices.

Concerning JPS, Have we forgotten that the Government owns 20% of the shares in the Jamaica Public Service? The Government has representatives on the Board and most importantly for every $1.00 that JPS makes in profit, the Government makes $0.20. In doing the maths and trying to understand the economy, we as a people have to take a more active role in reducing costs for ourselves.

In June of this year, the Grand Palladium Resort and Spa in Hanover invested in Solar Energy in order to attempt to save over $80 million (roughly US$730,000) in energy costs per year. The University of Technology  also unveiled the UTech/JPS Unveil 100 KW Solar Energy Project which is projected to save US$224,000 in fuel cost per annum. Solar Energy has such a great impact that the approximately $1 million monthly electricity bill at Holy Trinity High School has been reduced by approximately half. The fact the bills are even so high to begin with is incomprehensible for many, but I applaud their proactive efforts in taking charge of their energy costs.

Alternative Energy may be a partial answer to this dilemma however the Private Sector Organisation of Jamaica (PSOJ) has also raised a pertinent point “local manufacturers and consumers are not benefitting enough from the effects of the strong global reduction in oil price”. The Petroleum Corporation of Jamaica  allegedly is not passing down the price decreases but pass on the pass increases with precision. Oil prices fluctuate howver consumers are not feeling the pressure ease.

A comprehensive approach needs to be taken to address our energy issues, to look at Alternative Energy to make it more affordable for our Jamaican people, as to depend on the Jamaica Public Service which is being run by a privately owned entity whose concern is to make a profit is ludicrous. We all need to step up and know that energy affects all parts of our life, as it affects the cost of goods and services which we cannot live without. It enables increased access to services that raise our standard of living. 

Our future is in our hands, so we need to advocate for a revolutionary move as we cannot turn off the lights on our future or watch it dim until eventually it fades for good. 

LESSONS FROM FIDEL and THE CUBAN REVOLUTION

by: Kymberli Whittaker

Bachelor of Arts, History (Hons)

Bachelor of Laws (Hons)

LEC

“Convict me; It doesn’t matter. History will absolve me.”

A man who dared to oppose the mighty United States of America; A man who had a vision and executed it with an iron hand; A man who put the people first. His name is not synonymous with democracy but his speeches, his participation in wars all across the world helped to preserve so many nations while breaking them out of bondage and mental slavery- thus contributing to their democracy. Fidel Castro is an epic leader of our time. His life which has been marred by propaganda has many lessons. No, he is not perfect or the best leader, this world has ever seen, but there are some salient lessons which his approach to change and maintaining change can teach us:

1) Elevation of the Mind

One can succeed and improve their mental state, only through increasing knowledge sought after daily. Fidel attempted a Coup, and was unsuccessful and he was imprisoned for two years in Cuba. Instead of being discouraged and giving up the fight, he resorted to consuming literature which elevated his mental state. His thirst for knowledge I believe, exposed him to different ideas, thus making him uncomfortable with his present realities. 

Reading 12-16 hours a day, while imprisoned, made him the man we know of today.

An important part of his Revolution was Education, without education, the people could not improve. 1961 was named the year of education. Thousands of young people set out into the isolated parts of the island to teach farmers and uneducated persons how to read and write. A literate nation is a better nation, and a nation that can make informed decisions. Elevation of the mind is key in facilitating change.

2) No man is an island

This may seem contradictory given the stance he took in not bowing to International pressure which opposed Communism and sought to demolish him, leaving Cuba isolated for many years. He knew that support is needed for any cause. Travelling to speak with members of the Diaspora, he formed links and the bonds were cherished as he sought to promote his ideals. He made individuals feel Important and through that approach, many supported him and continue to support him today.

On the way to start the Cuban Revolution in 1959, one of him men fell overboard as they travelled by ship to land. Fidel refused to leave this man, and he and his crew searched the dark murky waters until they found him. This act delayed the synchronized co-ordination of the attack on Batista’s forces, as some of his followers were already waiting on land, and started the revolution without the support from the Sea. The death toll was high, and of the original 82 men who came by ship, only 21 managed to regroup in the Sierra Mountains to recruit farmers and others to assist them in the fight.

Fidel surrounded himself with strong personalities such as Che Guevara, men who got the work done. He did not do everything by himself, nor did he try to.

3) If at first you don’t succeed try and try again

Remember Fidel failed the first time, and please do not think it was easier the second time. The actual war between Fidel’s followers and Batista’s troops lasted two years. Perseverance will yield results, perfect your craft and always know your objective. Do the necessary groundwork to be able to win. Winning is most times hard, but it is always possible.

4) Be strategic in all decisions

During the Batista dictatorship, a reported number of 20,000 Cubans were killed. The people were fed up, tired, and fearful and the words of Fidel who campaigned to them was music to their ears. He made them feel as if they were first class citizens who deserved better and needed to take a stand against the Government who did not have their best interests at heart. The people longed for sovereignty and independence and this was the platform he used to gain mass support

He was aware of the importance of the media, and he made sure he was accessible to the press, even in English. Any person especially in government should know that the press should not be your enemy. Consistently refusing to talk to the press especially on major national issues, will cause mistrust to fester in any country- Including Jamaica. One must be strategic in ALL decisions.

5) No weapon formed against me shall prosper

He did something I am almost sure Jamaica would never do, oppose the United States of America. For years they terrorized and reigned through their ‘Big Stick Policy” popularized by President Theodore Roosevelt, where they sought to control and involve themselves in the running of governments, setting up Presidents and removing them when they no longer served a purpose. Batista’s forces were trained by the US who armed them with artillery and aircraft.  In his words,

“The overt war against the country, became a covert war against the man”

The US opposed Fidel essentially because he we for his own people which naturally conflicted with US interests. The US fueled by capitalist motives had nothing to gain by his reform. Through the “Agrarian Reform Act” property was redistributed as foreigners owned almost 70% of the arable land and most of the sugar industry was in US hands. No money was staying in Cuba, and what remained did not benefit the masses.

Fidel’s family was by no means impoverished and he expropriated land from them as well, leading by example. For years, through an embargo which lasted from 1960-62 until 2014 Cuba was punished severely for not backing down from the US. The Cold War which has often been used as the reason for hostilities does not make sense as the “US-Cuba Cold War” outlasted the "real" Cold War, which ended in 1989. Increasing agitation from the UN and the changing global climate which sees nations such as China rising in superiority has shown that even though one may undergo isolation and hard times, no weapon formed will prosper and hard times will not last forever.

6) No matter how hard times are- Help Others

The Embargo really stifled economic growth and prosperity in that nation, however Cuba is known for helping other nations, whether they are neighbouring Latin American states such as Bolivia or as far away as Vietnam, where Cuba during their war sent rice, sugar and blood donations to them. They  sent trained doctors, engineers and agricultural workers to assist in not only the fight , but the building back.

Fidel’s family was by no means impoverished and he expropriated land from them as well, leading by example. For years, through an embargo which lasted from 1960-62 until 2014 Cuba was punished severely for not backing down from the US. The Cold War which has often been used as the reason for hostilities does not make sense as the “US-Cuba Cold War” outlasted the "real" Cold War, which ended in 1989. Increasing agitation from the UN and the changing global climate which sees nations such as China rising in superiority has shown that even though one may undergo isolation and hard times, no weapon formed will prosper and hard times will not last forever.

In 1975 as Angola moved towards independence from Portugal, the CIA along with the apartheid government of South Africa tried to bring down the new Angolan government. At the request of the Angolan president, Fidel sent 36,000 troops to keep the South African forces from attacking the capital, Rwanda. In 14 years of war over 300,000 Cubans- doctors, engineers, teachers and soldiers played an important role in Angola, over 2000 died.

In 1988 Fidel sent in more Cuban troops and with this increase, a large nail was driven into the coffin of Apartheid, and he helped to shed light on the struggle of the African people. African History has been shaped by Cuban presence and assistance and Nelson Mandela was one of Cuba's greatest friends.- Such was the impact and reach of the Cuban Revolution. Such was the reach of Fidel.

Live and learn, separate the bad aspects from the good, and give praise where praise is due, and in all situations- learn lessons.