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Prime Minister Andrew Holness did not waste any time installing Fayval Williams who served in his Government as Minister of Education as the new Minister of Finance replacing the outgoing Dr Nigel Clarke who is bound for Washington to take up his appointment as Deputy Managing Director of the IMF. 

For some time now the speculation was Williams was the best qualified in the JLP to fill Dr Clarke’s shoes. Prime Minister Andrew Holness publicly came out and declared that he reposes confidence in her abilities to carry out her duties.

Dr Clarke is credited with doing a good job, reducing Jamaica’s debt, not raising taxes, facilitating greater parity between private sector and public sector salaries and wages, and bestowing a tax credit cash bonus to those on low wages.  His was a reliable and steady hand on the wheel.

Fayval Williams has held several senior positions at the Ministry of Finance and holds an MBA from the Wharton Business School. She is eminently qualified, and intelligent and operates with a measured approach. The private sector has greeted her appointment favourably.

Dr Clarke’s decision to leave caught many by surprise and underscores the importance of having a deep bench of talent. Whoever holds the position of Minister of Finance must be an effective communicator and have the bearing of someone who holds the second highest office of state.

The names served up to succeed Dr Clarke came from the private sector.  The likes of Keith Duncan, Wilfred Bagaloo, P.B. Scott, Chris Zacca, and Patrick Hylton would bring both credibility and competence to the position.

Therein lies the problem. Jamaican politics has been unable to attract top-tier business talent that can parlay into statecraft.

Looking at the United States, one sees corporate titans like Hank Paulson, Steve Mnuchin, Robert Rubin serve competently in the position of  Treasury Secretary. The CEO of J.P. Morgan, Jamie Dimon is coveted by both the Democrats and Republicans to succeed Janet Yellen. 

To be the Minister of Finance in Jamaica, one must be a Member of Parliament, and become part of the representational apparatus. This further reduces the talent pool.

None of the younger JLP Government members have the experience or gravitas to hold this important office.

Perhaps it would have been prudent for the Prime Minister to hold the position of Minister of Finance until he is assured of a third consecutive term. This would allow him to push ahead with key objectives without having to suffer the pratfalls of a neophyte Minister of Finance yet to find his or her sea legs.

The Prime Minister could be in this holding position for anywhere between four to eight months. This would give him time to scout longer for the right candidate.

This evidently was not in his calculus. By selecting Fayval Williams he is indicating that perhaps he is about to call a general election or is so confident of winning that he is baking Williams into his new administration already. He is playing the long game.

The Leader of the Opposition, Mark Golding disagrees with the hypothesis that Holness should hold both portfolios, if only for a few months. He holds the view that the Integrity Commission’s investigation and subsequent report into the financial affairs of the Prime Minister disqualifies him

Speaking earlier this week, Golding said: “ It cannot be Andrew Holness because he cannot be the minister of a ministry that has agencies investigating him. That would be a clear conflict of interest and totally intolerable.”

With the PNP and Mark Golding gaining ground according to the latest Don Anderson poll, his pronouncements are carrying a lot more weight.

But perhaps the Prime Minister never ever considered himself as holding the position perhaps concluding given his current responsibilities, he doesn’t have the bandwidth.

Fayval Williams will not have too much time to settle into her new job. With an election expected in the coming months, she will be expected to craft a fiscal landscape that helps the Prime Minister win at the polls.

Dr Nigel Clarke did well reducing the debt but the focus now must be on growth. Too many people think Jamaica is stagnant and that they are unable to get ahead. This year the Jamaican economy is expected to grow by not more than 2 per cent and the same is expected for next year. 

The Minister of Finance will have to find ways to fire up the productive sector and derive better returns from exports. She will have the respective ministries knocking on her door requesting more funds. She will have to be strong-willed and stand her ground.

The financial sector will be watching her closely to determine whether she can be trusted. Over the last few years, they have suffered from elevated interest rates and the asset tax. Will she take measures to alleviate their pain.

The high interest rate has restricted domestic investment and dampened Jamaica’s entrepreneurial energy. Foreign Direct Investment has fallen over the last decade and according to Food For the Poor, Jamaica’s poverty level has increased to 20 per cent. Williams will have to come up with prescriptions to spur growth while maintaining macroeconomic stability and fiscal discipline

She now has to contend with a fall off in remittances and travel advisories from the U.S. and Canada impacting tourism receipts. It has already been noted by the PIOJ that Jamaica is unlikely to reach its 2030 development target. For the first six months of 2024, Jamaica’s total spending on imports was valued at US$3.68 billion while earnings from total exports was valued at US$944.8 million spelling a widening trade deficit gap according to the Statistical Institute of Jamaica (STATIN).

But there are encouraging indicators. Unemployment rates are trending down and interest rates are falling. The Government is pushing ahead with its infrastructure programme and Jamaica has been removed from the FATF’s grey list.

The Government’s term in office over the last four years was focused on combating the ravishes of COVID while ensuring macroeconomic stability. Its next term – if the people of Jamaica should decide it should continue in the job –  is to spur growth and put more money in people’s pockets. That should be Fayval Williams’ North Star.