Extricating ourselves from the difficulty will demand deftness in the management of the macro-economy and fiscal accounts, and, critically, a display of political maturity, which, unfortunately, has not been much in evidence.

The primary responsibility for this rests, of course, with the Government and, more specifically, Prime Minister Bruce Golding. But, the challenge is not theirs alone. For the truth is, the problems facing Jamaica did not all transpire in the 13 months since this administration has been in office and nor could it all have been eradicated in that time frame.

But, solutions are not achieved merely by carping about the past, or by attempting to score political points. That merely is small theatre from which Mr Golding needs to tell his economic managers that it is past time they graduate.

That Moody's has said that it will in three months decide whether to downgrade some of Jamaica's sovereign instruments is of itself bad news. The fact, though, is that substantial damage has already been done by the agency's warning, however coated, that current circumstances "could impair Jamaica's high willingness to pay" its debts. The agency has placed creditors on warning of the possibility of default.

This follows the recent review by Standard and Poor's that gave a negative outlook for Jamaica, though in less strident language.

Clearly, these reports will make it more difficult for the Government to go to the market for the additional US$250 million required to close the budget gap for this fiscal year. If the cash is raised, it will be at a higher rate than might otherwise have been the case. On a broader level, these reports will weaken confidence in Jamaica and could even affect the country's ability to attract foreign direct investment.

global credit crisis

It is urgent, as this newspaper has been suggesting since the global credit crisis began to emerge, that there be a broad national response. We called for the administration to fully brief the Opposition on the issues and for the establishment of a special 'war Cabinet' on the economy that is fully engaged on the crisis.

It is in that context, too, bolstered by Moody's assessment, that we repeat our suggestion for a negotiated reduction of Jamaica's debt, particularly the domestic portion. Servicing this debt - which stands at at over 130 per cent of GDP - undermines investment and growth.

high-quality leadership

However, this national response to the crisis insists on a high quality of leadership, one that eschews the kind of petty political point-scoring recently engaged in by the finance minister, Audley Shaw, with his promise to embarrass his predecessor. Markets, we repeat, turn on confidence and tend to take their cue from the managers of the national economy. Nor will the Opposition's gloating at the Government's discomfiture help, especially when it cannot boast of a great record in economic performance.

Perhaps, in response to this crisis, Mr Golding might wish to consider a restructuring of his economic team; bringing to the fore a stronger technocratic leadership that is given to substance rather than the drama of its declarations.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.