It seems that development is
finally coming to Jamaica, as the Government of Jamaica has signed agreements
with the Government of People’s Republic of China to secure loans in exchange
for which the Chinese Private Sector will be able to come to Jamaica and
operate as an FDI (Foreign Direct Investor).
The Government of People’s Republic
of China have already begun negotiating with the Government of Jamaica as it
relates to acquiring the Kingston Wharves as part of a US$6 billion investment
in the relocation of Tinson Pen and VernamField Aerodromes.
The development of the railway
specifically for the transshipment of goods and services between the aerodromes
and Kingston Wharves as stated in the article “CHINESE
WANT KINGSTON WHARVES” published Monday, March 08, 2010 by Paul Henry Observer staff reporter,
The Jamaica Observer.
Senator Karl Samuda, Minister of
Commerce, further goes on to stress the importance of the deal with Jamaica by
stating “It is the last chance we have. It's the best opportunity we have and
that's why we are pushing so hard to get investors, who have the capital and
the willingness to share this with us and we feel satisfied that the Chinese
are the ones that are best suited for that right now because we have not had
the kind of interest and support that has been expressed by the Chinese.”
Thus, the learned John Public is
somewhat wondering if this is another election scheme, despite Senator Karl
Samuda, Minister of Commerce asserting that the negotiations had be on going
for more than a year. It will be very difficult for the Government of Jamaica
to aquire the lands of Vernamfield Aerodrome, let alone relocate Tinson Pen
Aerodrome, as Vernamfield currently has squatter living on the land.
Many have constructed palatial
houses over a twenty (20) year period on land that they had been warned by
Government officials as being Government owned. In this economic climate,
forcefully evicting twenty (20) year middle aged people and pensioners living
on squatter land would not win Senator Mike Henry, Minister of Transportation
and Works or the JLP (Jamaica Labour Party) much support, especially as this is
his constituency.
Thus, John Public surmises that
despite past broken promises, this extraordinary declaration by Senator Karl
Samuda, Minister of Commerce is a sign of a genuine unified effort on the part
of the ruling JLP. This unity serves the dual purpose of getting growth and
jobs going from the only investor in town and thus staying in power by having
success to crow about before General Elections in 2012.
It also satisfies John Public and
most importantly the IMF (International Monetary Fund) as it relaters to the
divestment of key infrastructure in a bid to remove non-productive Government
of Jamaica assets and attract investment, much in the same way that it is
divesting Air Jamaica.
But the next bit of news is what
brings a sparkle in my eye. The Government of People’s Republic of China,
possibly also as an additional tradeoff for billion of dollars of loans made to
the Government of Jamaica, will be allowed to become a broadcaster in Jamaica.
Thus adding immeasurably to the
value of broadcasting and music in a landscape that is already oversaturated
with three (3) local free-to-air television broadcasters, namely TVJ, CVM TV
and LOVE TV, numerous cable providers both legal and illegal, one (1) all Digital
Triple Play cable provider, FLOW and nearly twenty (20) local free-to-air radio
stations.
This the entry of another media
company owed by the Chinese to potentially compete with them for the ever
shrinking advertising dollar has the MAJ (Media Association of Jamaica)
worried, as not only was their decision announced suddenly last week.
But the fact that the MAJ are and
apparently were always unsure of the Government of Jamaica media policy is an
indication that for the first time, the Media itself was in the dark about its
own future as slyly hinted in the article “Chinese
media proposal troubles local interest group”, published: Tuesday April 6, 2010, The Jamaica Gleaner.
But the fact that Senator Daryl
Vaz, Minister of Information has been saying that the Chinese broadcaster was
not intended to compete with local broadcasters for the local advertising
dollar and curiously enough would be broadcasting Chinese programs, as Senator
Daryl Vaz, Minister of Information stated that “The Cabinet has given approval
for the pursuit of discussions in respect to a proposal received for
cooperation between the Government of Jamaica and the Government of People’s
Republic of China to transmit Chinese programmes over free-to-air radio and
television stations” .
This apparently is being done in a
bid to facilitate closer ties between the Government of People’s Republic of
China and Jamaica, relations with the communist state which began as far back
as 1972 and apparently now being cemented with trade and cultural ties.
But why is the MAJ so up in arms? After
all, these Chinese broadcasters present in the delegation from China Radio
International and China Central Television would most likely be aware that
there are plans to go DSO (Digital Switch Over) as stated in the article “Slow
road to Digital Switch-Over - Cable groups mum; FLOW ahead but Network coverage
behind”, published:
Saturday August 15, 2009 by Mark Titus, The Jamaica Gleaner.
The Spectrum currently being
occupied by the free-to-air Radio and Television Broadcasters is not only being
inefficiently used, as HDTV (High Definition Television) is more spectrally
efficient. The Spectrum and the “white spaces” are prime real estate to be
auctioned off as a means of raising initial capital to finance the DSO and
allow Telecoms Provider access to low frequency Spectrum as demand Spectrum for
mobile communications services.
3G and 4G data services are set to
explode as soon as interest in having internet-on-the-go increases. Prices for
Data Services will decrease due to the implementation of MNP (Mobile Number
Portability) and speeds closer to that of wired services such as ADSL and Cable
Internet, as predicted in the article "Can 4G
wireless take on traditional broadband?" published March 22, 2010 4:00
AM PDT by Marguerite Reardon, CTIA 2010 - CNET
Reviews.
A clue lies in the statement by
Senator Daryl Vaz, Minister of Information in which he says that they [Chinese
Broadcasters] will not be competing with local broadcasters for local
advertising dollar.
This suggests that they will most
likely be broadcasting not only Chinese programs (do I need to start learning
Chinese from now?) but also Far East and Chinese Content and Advertising, ostensibly
in a bid to sell goods and services directly to the Jamaica populace (which we
already consume).
A price reduction windfall for the
people of Jamaica which John Public welcomes with suspicion and elation.
It would also explain the previous month’s
negotiation with Senator Karl Samuda, Minister of Commerce for acquiring
Kingston Wharves as the Government of People’s Republic of China is possible
the largest manufacturer of good and services in Asia. But as the Jamaica Market
is not so large to consume all of the Chinese products and services to warrant
owning the Kingston Wharves and going even further to invest a US$6 billion investment
in the relocation of Tinson Pen and VernamField Aerodromes.
The development of the railway
specifically for the transshipment of goods and services between the aerodromes
and Kingston Wharves, indicates a long term push by the Government of People’s
Republic of China to establish a foothold in Jamaica. Their intent is obvious: use
Jamaica, which has a privileged position as member of CARICOM, good trade
relationships with the United States of America as well as Free Trade
Agreements with the United States of America and Central and South America to
gain access to the lucrative American Market.
In short, this move is all about
trade, both in terms of trade with Jamaica and the bigger Market, the United
States of America and South America, ostensibly using cheap and plentiful
Jamaican labour and possibly future investments in Energy to reduce their
operating costs and thus make it possible to set up factories in Jamaica.
So the MAJ is being small-mindedly
suspicious for no reason at all. It is not about and will never be about the chump
change of the local advertising dollar. Albeit there is an outside possibility
that the Chinese will also be going DSO (Digital Switch Over) now on the cards
as stated in my
blog article entitled “Broadcasting
and Digital Switch Over - Back to the Future to compete with LIME TV”.
Broadcasting in HDTV possibly using
a DVB-T (Digital Video Broadcast – Terrestrial) and providing premium cable
channels via this wireless facility and a set top box and at lower prices is
also on the cards. Telecoms could be their next investment also, combined with
an all Digital broadcast facility to deliver Triple Play service wirelessly,
effectively competing with the Big Three (3) Wireless Telecoms Providers and
FLOW for Telecoms Market share, thus another reason to hasten the
implementation of MNP (Mobile number Portability).
There is even the possibility of
investing in the local Energy infrastructure by supplying technical expertise
as well as LNG (Liquid Natural Gas). The People’s Republic of Trinidad and
Tobago’s Prime Minister of People’s Republic
of Trinidad and Tobago, Patrick Manning, had committed
to supplying LNG for Jamaica as a “national priority” as stated in the article “LNG
for Jamaica a National Priority - Manning”, published Friday June 26, 2009,
The Friday Gleaner, by Linda Hutchinson-Jafar, Business Writer, The Jamaica Gleaner.
This
would lower the cost of the production of alumina with Republic of Trinidad and
Tobago supplying Jamaica LNG for Jamalco. This alumina would then be shipped to
the Alutrint Facility in People’s Republic of Trinidad and Tobago to be smelted and converted to Aluminum. China can produce
LNG at significantly cheaper prices than the People’s Republic of
Trinidad and Tobago.
Currently
there is no central body or cartel that controls the price of LNG Market
worldwide, much in the same way that OPEC (Organization of Petroleum Exporting
Countries) controls the price of Oil worldwide. Government of People’s
Republic of China
LNG is
merely a by-product as they produce more valuable chemicals such as methanol
and ammonia, can flood the LNG Market with large and cheaper volumes of LNG.
The same People’s Republic of China can supply both the Government of Jamaica
and the Government of the United States of America at cheaper prices in a bid
to wean them off a dependence on Foreign Imported Oil, the price of which is
constantly rising.
The Government
of People’s Republic of China, first in acquiring
Kingston Wharves and now being a local Broadcaster. Their next investments possibly
being in the lucrative multibillion dollar Energy Sector after liberalization,
currently being held up in Parliament as stated in the article “Government,
Opposition wrangle over Energy”, published Saturday April 3, 2010, The Saturday Gleaner.
All this
is both welcome and wonderful, especially for the JLP and now the ruling PNP
now seeking to establish themselves as the party that created growth and jobs
for all and a John Public wanting change.
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