Dear Dr.

Tufton, I would like to introduce myself as Adlai Stew, a professional development economist based in UNO (University of New Orleans). For the past decade I have been researching different strategies that developing counties could use to push themselves out of poverty and propel them to economic development, and today I am wiring this letter to inform you that my inquiries have pointed to your grow what you eat and eat what you grow as the solution. I have noticed in your numerous interviews with the Jamaican press that youre having trouble promoting this idea, and as a result I have listed below both the problems that Jamaica is currently facing and also how your policy is the solution. Many of your proponents in the economic microcosm have criticized you apparent dislike of the free trade model and how your policy inherently involves protectionism. Primarily, one must first analyze the concept of free trade itself. In theory, the notion of comparative advantage and the likes is sound, the model fundamentally ignores certain key facts. Comparative advantage is difficult to attain, due to (for example) changing comparative costs. Then when one does specialize, over-specialization can become a problem. Currently in Jamaica, farmers and labourers have hedged their revenues solely on products such as sugar, bananas and yams, whose prices can be very volatile in the global market. As for imports, domestic Jamaican producers are being run over by cheap products from China and Brazil, whose governments have corrupted the spirit of free trade and skewed their currencies to in effect subsidize (their) domestic products. Again, despite being sound in theory, free trade is not a practical solution for Jamaica in this day and age, which is why alternatives such as your policy should be implemented. The policy that you are proposing is a portion of what economists like to call Import Substitution Industrialization (ISI). This is a policy which seeks to reduce a countrys foreign dependency through the local production of goods and services, or to grow what you eat. There are many positives associated with such policy. Firstly, there will be more domestic jobs as the demand for domestic products would have increased. The money that pays for goods and services (such as food) will now be flowing internally rather that externally, creating a type of multiplier effect which will aid all facets of the economy. Increased income directly leads to increased savings, which spurs internal investment which is the mother of economic growth. This is complemented further by increased tax revenues, which will allow the government to reduce their debt as well as reform sectors such as the health care and education system, providing a platform for economic development.

Obviously, this policy will transmit not only throughout the agricultural industry as a whole but also to the manufacturing sector. Your grow what you eat and eat what you grow campaign will find strong support from the infant industry argument. In terms of moving towards manufacturing, new industries will find it extremely hard to compete with larger, more established companies. With the provision of subsidies and other forms of grants, these new industries will be able to lower their average costs and compete, gradually expanding to a point where they can access economies of scale and are fully capable of competing on their own. But you also have to bear in mind that oftentimes these industries operated in a captive market and were never pushed to increase efficiency, leading to more expensive and lower quality goods. The main problem here is the compromising of the overall world efficiency, which could lead to increased world unemployment and decreased world income. For this reason, it is important for you to ensure that these industries do reach these economies of scale, and remember not to compromise the quality of goods that are provided.

Oftentimes, LDCs are too reliant on agricultural goods for exports, which in the long run harm their terms of trade because of increasing technology and increased competition. These countries have volatile incomes and are susceptible to worldwide financial shocks. Agricultural goods have inelastic demand and supply (as food takes up a small percentage of income in MDCs, and the supply of food is dependent on uncontrollable factors such as climate), and shocks to the supply will have a pronounced effect on the prices. On the other hand, manufactured goods will provide a route to stable prices as both the price elasticitys of demand and supply are relatively more elastic. By implementing import substitution industrialization policies, countries are able to expand their manufacturing sector and move towards value-added products. Through this, the terms of trade and the balance of trade may improve, and the issue of indebtedness and the volatility of income may be resolved.

It is probably most appropriate for Jamaica to start by targeting the food industry, specifically the processing of hot peppers, amidst the rising global food prices and possibly another food crisis. This will improve rural development and is reasonable for a country will small population, as the processing of the peppers is not too capital intensive. The money you dedicated to opening agro-processing centres will make it possible to deal with gluts and scarcities, enabling more control over prices. Focusing on hot peppers will help Jamaica reap the benefits of both worlds: the agricultural sector will benefit as their peppers will be demanded by Jamaican manufacturers, and Jamaican manufacturers will benefit as they

will have a steady stream of supply (Jamaican peppers) and a large consumer base to demand their hot peppers.

As you proceed with import substitution and get to a point where you are looking at more capital intensive industries to subsidize, please be aware that history has shown the importance of appropriate technology and the need for income equality and country integration. Perhaps you could propose policies such as progressive taxation that target income inequality and promote the formation of free trade agreements with nearby countries.

Going back to the benefits of ISI and your policy, another major positive is the associated health benefits that the country will face. History has repeatedly shown how imported goods can bring diseases and other unwanted viruses that can harm foreign consumers. A vegetable imported from China may contain pathogens that would not harm Chinese citizens and therefore pass customs there. Although goods are also inspected before entering Jamaica, many a times these checks fail and this vegetable may harm Jamaican consumers as their body has not developed and immunity to this pathogen. When all the goods are developed in Jamaica itself, citizens not only have a built in immunity, but also regulating and inspecting these goods would be easier and more cost efficient. These health benefits are also seen in the reduced effect on the environment. When the majority of goods are exported, shipping takes a toll on the environment in the form of carbon emissions and the likes. By implementing this policy, there will be reduced trans-continental travel, shifting Jamaica towards a more green economy.

Finally, it has been evident that many of your opponents feel that this policy will cause a shift towards international isolation, where Jamaicas relations with other countries will deteriorate as the trading partnerships will diminish. There is a conceptual dichotomy, where implementing ISI will in fact aid exports of goods. By setting up a solid manufacturing and consumer base, producers will be able to sell off their surplus to neighbouring countries. This will provide a revenue stream from an alternative consumer base. The contrast between exporting surpluses rather that exporting all the goods produced (as seen right now) is that there will not be a dependency on the foreign marketplace, i.e. Jamaican producers will have a diversified consumer base.

In conclusion, your grow what you eat and eat what you grow policy is revolutionary. By implementing ISI, your country will be leaps and bounds above all others, pushing Jamaica to sustainable economic growth and development. Yours truly,