After almost five years as Spain’s ambassador to Jamaica, Jesus Silva has landed a plum assignment in Panama. Before Silva’s arrival in Jamaica, Spain could not be considered one of the preeminent embassies in Jamaica – that would be the United States, the United Kingdom and Canada. Silva in his first outing as an ambassador changed all that. Extremely professional, affable, sociable and blessed with matinee idol good looks, he put Spain’s interests first and set a new standard. Not for him was a haughty demeanour or stuffy ambassador’s cocktail parties. He managed to wed the interest of both Jamaica and Spain, that saw an investment of over US$1 billion flow into Jamaica from Spanish businesses. So what does he take away from Jamaica after nearly five years there?

Tourism is Jamaica’s strength

“The best thing I am taking away from my experience in Jamaica, is the warmth of the Jamaican people, and the friendships I have made there. But that is from a personal point of view. On the professional side, I would say the way people made me feel like one of them and that is very encouraging for a foreigner. The most significant discovery for me was the potential I see in Jamaica’s tourism industry.

“I think that the move by Spanish hoteliers to set up in Jamaica and the way that they have succeeded can and should be maintained for the future. In fact it should be expanded further, said Silva, speaking with Caribbean Business Report from the Spanish Ambassador’s residency in Norbrook earlier this month.

The new Spanish Ambassador to Panama, is of the view that Jamaica with few sort-after commodities and no significant industries should play to its major strength which is tourism.

“In a country like Jamaica, tourism works all year round unlike a country like Spain where it is seasonal. It is also labour intensive which means jobs for Jamaicans in every capacity of the industry. Tourism also has linkages with every sector of the economy which is perhaps its greatest advantage. Tourism is the way for Jamaica to go and in that regard it has a great future,” said Silva.

When he began his assignment, did he set out to focus on investment and make the process easier for Spanish companies as opposed to just fulfilling standard diplomatic obligations?

“My main task was to accompany the effort the Spanish private sector was making outside of its home country. My job as I saw it was to make the process as easy as possible and to facilitate companies looking to invest in Jamaica. What I saw at the very beginning was that business relations between the two countries was very low key but the private sector took the lead. Both countries also recognised that they had to improve their political relationship and what we have seen in recent years are more high level delegations. Jamaican Prime Ministers as well as senior Cabinet members have now visited Spain and the King and Queen of Spain made a state visit to Jamaica last year. We have also signed a double taxation agreement.

“The Spanish government also recognised that with all the Spanish investment in Jamaica and the efforts made to improve political relations, there was a need for a better spirit of co-operation between the two countries. This allowed us to get funding for projects like setting up a training centre for farmers, a tourism hospitality school, new wings for the Spanish Town Hospital and the restoration project for Spanish Town. Prior to all this, Spain was not as visible in Jamaica. It was not just a case of accommodating Spanish business investment in Jamaica but to look at social policy and help the country in areas where people of all walks of life can benefit from.

Spain has invested US$1.2 billion over five years in Jamaica

During his tenure as Spain’s Ambassador to Jamaica, he oversaw investments of US$1.2 billion.When the second phase is completed it will take the figure up to US$2 billion, about 15 per cent of Jamaica’s total GDP. The Spanish have made the largest foreign direct investment in Jamaica in recent years, (creating 7000 direct jobs and 20,000 indirect jobs) surpassing that of both the United States and the United Kingdom in the last five years.

What makes a good ambassador

So Jesus Silva, what makes a good ambassador? After all you have been hailed as the best ambassador to have operated in Jamaica in decades.

“Firstly to look out for and protect the interests of one’s country. Secondly to serve as a bridge between the countries of the two governments and thirdly to astutely monitor what is happening in the country you are posted to,” shot back Silva. There is no doubt that he fulfilled this criteria exceptionally well.

Panama will be viewed as a promotion for Silva, particularly in light of the fantastic job he did in Jamaica. He will now have a bigger playing field to strut his stuff on and garner his reputation even further.

Spain’s man in Panama

According to the CIA World Factbook, Panama’s dollarised economy rests primarily on a well-developed services sector that accounts for 80 per cent of GDP. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry and tourism. Economic growth is expected to be bolstered by the Panama Canal expansion project that began in 2007 and is scheduled to be completed by 2014 at a cost of US$5.3 billion – about 25 per cent of current GDP.

The expansion project will more than double the Canal’s capacity, enabling it to accommodate ships that are now too big to transverse the transoceanic crossway. The project should help to reduce the country’s high unemployment rate.

Panama’s total GDP last year was US$40.33 billion and its real growth rate slowed to 2.4 per cent. In 2008, the economy grew by 9.2 and last year it recorded an income per capita of US$11,900. Last year its public debt was 49.5 of GDP and its inflation rate (consumer prices )was 2.6 percent.

Despite the good numbers, Panama has the second worst income distribution in Latin America. About 30 per cent of the population lives in poverty with 7 per cent of the population unemployed. Last year it exported US$11.41 billion worth of goods while imports came to US$13.62 billion. It’s main export partner is the United States which accounted for 39.2 per cent of exported goods and services. Spain meanwhile accounted for just 5 per cent. Silva will be looking to change that.

What are Silva’s thoughts on Panama’s economy?

“Panama is one of Latin America’s fastest growing economies these days. The global economic crisis saw its growth slow to 3 per cent last year, however over the last decade it has been posting annual growth rates of between 8 to 12 per cent. In fact the global crisis together with he expansion of the Panama Canal has led to many European and Spanish companies setting up shop there and investment is booming in Panama now. Spanish investment in Panama covers many sectors other than tourism.

“RIU who are the biggest hoteliers in Jamaica, have recently opened a 20-storey corporate hotel in Panama City with almost 700 rooms. The widening of the Panama Canal is being done by a Spanish contracting company and the US$1 billion underground railway project being undertaken also sees Spanish companies bidding for that big transportation undertaking. Panama has become the place to invest in today.”

Foreign and economic policy

Silva believes that the global financial crisis makes foreign policy even more important. He points to the fact that twenty years ago many of Spain’s leading companies did not invest abroad. Today however, Spain has the second biggest telephone company in the world (Telefonica), the eighth biggest energy company in the world (Repsol) and some of the largest electricity operators around. It now has one of the largest banks in Europe.This has all happened in a relatively short period of time and today Spanish companies are present all over the globe.

“Spanish companies today have a significant presence in the Americas and this certainly factors in our foreign policy. This means that ambassadors today have to focus on the commercial and economic side of things and it has become a priority because Spain tends to enjoy good political relations with most countries. It’s a sign of the times and I hear other ambassadors saying the same thing – how can I help to drive my country’s business interests here? In Jamaica Ken Baugh places great emphasis on international trading relationships and the new British Foreign Secretary is saying this is the way to go – focus on the economic aspects of foreign policy,” explained Silva.

Most would agree that Silva did much personally to improve Jamican/Spanish relations and that he was a most effective ambassador. He demurely plays this down saying that the cordiality of Jamaicans made his life easy. ” Even when we disagreed, they would accept that yes, we can disagree and there was no personal animus. My goal has never been to be better or worst than any ambassador in Jamaica. I was lucky to have a very good team who worked exceptionally hard and made things smooth for me. They deserve much of the credit,” he stresses, feeling a tad bit uncomfortable with too much personal attention.

Leaving a big footprint

Nevertheless he did leave a big foot print for his successor and people will be watching to see if she can fill it. What advice does he have for Celsa Nuno, Spain’s new Ambassador to Jamaica?

“She is the first female ambassador Spain will be sending to Jamaica and she is looking forward to the assignment. She is very committed to the job. She comes at a different time than I did because I came at the ground breaking phase which saw some problems. She comes at a time when everybody is aware of the realities of Spanish companies in Jamaica. The hotels have integrated well in the Jamaican business landscape and are au fait with Jamaican culture. I can tell you that she will be a very hard working ambassador and she will oversee many Spanish projects that have yet to be completed.

“The only advice I can give her is to go on the road and listen to the Jamaicans and try to understand what it is all about in Jamaica. That will help to make her stay all the more pleasant. Hopefully she will feel what I felt – at home and comfortable. Also it will help her with her job. Everybody brings their own personality to an ambassadorship and she will do just fine. Who knows, she may even do better than I did and make many more improvements, ” said Silva

Jesus Silva is regarded with much affection in Jamaica. His time as a football pundit on CVM during the World Cup, served to heighten his popularity and people of all walks of life became acquainted with his amenable personality and his way of connecting with people. It is a gift that possesses and goes some way in explaining his impact in Jamaica.

Put it this way, the man in the street in Jamaica doesn’t know the name of the British High Commissioner, he doesn’t know the name of the Canadian ambassador neither does he know the name of the US ambassador or the Chinese ambassador. He does however know the name of the Spanish ambassador, and it is not Mr. Silva, rather it is Jesus- just Jesus.

Does he hanker for more stability, a regular home? What does a peripatetic existence mean for his family?

“I like the job as an ambassador very much. It is very exciting and enriching spending a certain time in a country and getting to know it thoroughly. I think that Jamaica will have a long lasting impact on my future. It will not be the last time I come to this country. I ‘m not too sure that my family will do this forever, but my personal feeling is that in the long run it is a positive thing. My children (two boys and a girl) are teenagers and they have had a cosmopolitan upbringing, learning different languages and becoming familiar with different cultures. My children and I don’t regret having this kind of life. Maybe with the experiences they have had, they may do something internationally minded. But it is their decision and time will tell no? What I like about this job is that everyday there is a challenge. Personally, I have to say here that I like to have new challenges. It keeps me going.”

The Spanish economy

When Spain joined the European Union in 1986, it was considered an economic liability and one of the continent’s poor cousins. By 2004 Spain had become the fastest growing economy in Europe. During the nineties, annual economic growth averaged 4 per cent. Former Prime Minister Jose Maria Aznar presided over eight years of privatising almost every public industry, slashed taxes, streamlined the welfare state, balanced the budget and cut public spending.

In 2006 the Spanish economy grew at an annual rate of 3.8 per cent in the third quarter, a five-year high according to data released by the National Statistics Institute. That same year GDP grew at an annual rate of 3.8 per cent and a quarterly rate of 0.9 per cent. Then came the global recession at the end of 2007 and things started to go bad for Spain. Earlier this year the Spanish government approved a 15 billion euro austerity plan including a 5 per cent reduction in public sector salaries as it aims to cut its 11.4 per cent deficit. Spain now has an unemployment rate of 20 per cent, the highest in Europe. Spain’s public and private debt has now reached 270 per cent of GDP. The Spanish economy declined by 3.6 per cent last year and the IMF is projecting no positive GDP growth in Spain until 2011.

What does Silva make of this?

“During the last ten years , Spain has been one of the fastest growing economies in the world. At one point it was said that 40 per cent of all the jobs created in Europe were in Spain. Now the global crisis has painted a different picture. Today, Spain has the worst unemployment figures in Europe. We are now analysing what happened. Did we grow too fast? Most of our growth was based on real estate and that fell off dramatically turning into a bubble. We now have to address that. I don’t think the situation from a financial point of view was as bad as the media was making it out to be. When you look at Spain’s macro economic figures, it is still better than many other countries. Our public debt is much lower than the UK’s France and Belgium. From a social and employment perspective, I will concede that things are bad. Hard measures have be taken and they have been by the government. We are seeing the light at the end of the tunnel, the economy is not getting worse but neither is it improving. The fact that our companies have diversified and enjoy a presence in many countries means that we have managed to cope better than most with the crisis.

“If you look at the Spanish hotels operating in Jamaica, they have suffered relatively less from the crisis than they would have thirty years ago. Why? Because those hoteliers have diversified into other countries. I have no doubt that things will undoubtedly get better for Spain,” Silva responded.

What does the future hold for Jesus Silva?

A lawyer by training and a man of many interests, if he were not an ambassador whaat would Jesus Silva like to to be occupying his time doing?

“What interests me particularly in the future is culture, more particularly art. I would love to become an art dealer or museum curator one day. I would even like to be a sports commentator. I loved my period on CVM Television as a football pundit. Being a football manger is something I’d like to try my hand at. Who knows, one day I might go into politics because the process does interest me tremendously. When I was young, I dabbled in politics in Spain. Mind you nothing representational but more on the party side. Diplomacy and politics are two sisters and they have a lot in common. People say that politics invites intrusion into your life, but if you believe in democracy, then citizens need to know that their representives should not only be accountable for what they do but also for who and what they are because democracy is about a contract of trust. More often than not we see the negative side of intrusiveness but we need to pay more attention to accountability and transparency.”