Experts in the business sector agree that the ongoing road infrastructure improvement, which is currently under way in some sections of the country, will have a positive impact on the long-term economic growth and competitiveness of Jamaica.

Dennis Chung, chartered accountant and former CEO of the Private Sector Organisation of Jamaica (PSOJ), said the roadworks, overtime, are expected to facilitate seamless travel by the commuting public and will enhance connectivity to major markets and commercial centres, thereby boosting economic activity. He noted that while investing billions in road infrastructure does not directly add to the country's gross domestic product (GDP), it will, in the long term, generate growth through employment and other aspects of development.

"A lot of people believe that the spending of money on the road infrastructure adds a lot to GDP and it doesn't, because a lot of the materials used during the construction are imported, and GDP is based on domestic production," he said. Chung noted that the initial benefits of investing in road infrastructure are seen in terms of the employment it provides for a large segment of the workforce. He said he expects that work will continue on the country's infrastructure, as the fiscal deficit improves and there's more money available for the Government to spend on infrastructure projects, as the debt-to-GDP ratio decreases. "Therefore, for the roadworks to continue to contribute to economic growth, the Government will need to push other construction jobs. He further noted that when completed, the road infrastructure development will impact the country's economic growth targets by improving productivity.

TRAFFIC WOES

At present, traffic woes are a major concern for many commuters across the Kingston metropolitan transport region and parts of St Catherine.

Chung estimates that the traffic woes cost the country approximately $200 billion a year in lost production time. He reasoned that, "When completed, the road improvements should actually improve the productive time in the country. Therefore, it's going to lead to greater production capacity in the country. And, what it also will do, just like it did in countries such as the United States of America, is that it will allow people to live further away from work."

REAL ESTATE BOOST

Carlton Earl Samuels, chief development financing officer at The Jamaica National Group (JN), said the ease of travel and improved accessibility for commuters is good news, not only in terms of productivity, but also for the real estate sector. "What this means is that the improved road network will allow persons to consider living in areas they once thought were too far from Kingston, or the commercial district," he said. He noted that investors will now consider these areas attractive for housing developments, as more people are willing to live further outside of the Corporate Area and commute into Kingston. "Therefore, more areas in St Catherine, and eventually St Thomas and Portland, will become more attractive to both housing developers and buyers."

The JN Group executive further noted that once a population begins to migrate to communities outside of Kingston, the migration will spur further development in terms of the construction of businesses and other commercial activities in those areas. "Therefore, it now provides an opportunity for businesses which normally cluster in the Corporate Area, to move and expand some of their operations into rural areas," he said. Samuels noted that this will also drive greater tourism opportunities for parishes such as Portland and St Thomas, which means increased competitiveness and earning of foreign currency for the country and those communities.

Metry Seaga, president of the Jamaica Manufacturers' and Exporters' Association, concurs, noting that the current work to improve the country's road network will also positivelyimpact the business sector.

1.Explain the concept 'economic growth'

2.Explain these phrases "as the fiscal deficit improves' and 'as the debt-to-GDP ratio decreases ..." in relation to the economic position of the country.

3.Based on the article, explain three ways in which the investment in road infrastructure might enhance economic growth.

4.State any two indicators of economic growth from the passage.

5. Based on your understanding of the term GDP, why is it believed that the investment in road infrastructure would not increase the GDP in Jamaica?

6 According to the article, how may the government intervene to ensure the country benefits from the infrastructural development? Name three sectors that might benefit from the investment in the road network.

7.Name three sectors that might benefit from the investment in the road network.