Communications Commission GROWTH INDUCEMENT STRATEGY FOR JAMAICA (June 22, 2013) Current Economic Context (as at June 2013) • High indebtedness and consistent low reported growth over 40 years • Elevated levels of unemployment and poverty • Fiscal space for Government/public investment is severely limited until debt sustainability is achieved The IMF is primarily focused on economic stabilization and debt reduction. But there are 2 sides to the equation in the Debt: GDP ratio. We are addressing the debt in a deliberate way (very limited borrowing by the Government to keep the economy afloat – we all have to right-size our life to what we can afford). But our PNP-Government is also focused on addressing growth of Jamaica’s GDP. In the meantime, economic adjustments that are happening now, like devaluation, are extremely difficult. However, the Government cannot borrow to shore up the Net International Reserve (NIR) which is what is used to normally defend the exchange rate. We have to move even more deliberately on production and growth so Jamaica can have a strong dollar and the economy can generate JOBS with meaningful wages. The key is to mobilize foreign and domestic private investment through partnerships and an enabling business environment. • Private sector must be mobilized to take business risks in a low interest rate environment and drive the economy forward. • Economic Programme Oversight Committee (EPOC) for the IMF Extended Fund Facility, and the Social Partnership Arrangements, provide mechanisms for public/private coordination towards implementation of this Government’s Growth Inducement Strategy. Key Structural Reforms to Create Momentum in the Economy • Approvals processes (local government and key agencies) need to be re-engineered to achieve timeframes which are comparable to international best practices (so we can actually get things done in the interest of the people). • MSME financing – loans and venture capital, with exit possibilities via the Junior Stock Exchange. • Modernized arrangements for taking security over collateral under the Security Interests in Personal Property Act (so borrowing is not primarily limited to persons having a ‘land title’ – can use a range of other collateral) • Under-measurement of the economy results in understated GDP and provides a fertile climate for tax evasion – introduction of mobile-wallet to facilitate small payments via mobile phones (Kenya, Haiti etc), and consider limit on value of transactions that can be settled outside the regulated financial system in cash. • Improvements to the Justice system – increase in civil jurisdiction of the RM courts to allow businesses to enforce valid claims via less time-consuming and expensive procedures in their home parishes; improvements to the commercial division of the Supreme Court (increased volume and speedy case resolution); focus on greater use of technology and administrative process re-engineering to bring efficiencies and reduce time. • E-Gov – changes to the institutional arrangements within the public sector as part of the Public Sector Transformation (PST) process, to enhance use of technology in government processes, for greater speed and efficiency and improved customer service. Key Government Growth Initiatives and Major Projects • Energy – base load capacity (360MW) and renewable energy sources for diversification – all key to lowering cost of energy from uncompetitive and expensive energy which is now US$0.42cents/kwh – we are on a drive to less than US$0.20cents/kwh • Agriculture – Agro Parks to increase domestic food production and reduce Jamaica’s US$1B per annum food import bill; deepen the linkages between farmers and the hotel and resort industry; New private investment in export crops where Jamaica has significant comparative advantage – coffee (JP/Pan-Jam, and AIC); ginger, cocoa and turmeric. • Mega Projects – North-South Highway with private investment (not a loan) of over US$600M (Mount Rosser Bypass opens May 2014); the privatization of KCT, the dredging of the shipping channel and expansion of the terminal to accommodate new Panamax vessels; a new transshipment port with private investment of US$1.5B (including land-side logistics facilities, cement factory and power plant) • Logistics Hub – leverage port expansion to facilitate value-added commercial activities relating to international trade and shipping. Establishment of the Caymanas Economic Zone. • Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) – leveraging Jamaica’s advantages in terms of time zone, language and workforce. • Global Business Centre for international business – several pieces of legislation close to finalization to encourage firms around the world to establish facilities in Jamaica to handle back-office, treasury and other functions. Supported by Group Head Office tax regime; a further tax regime is proposed for firms which are set up in Jamaica to provide services used outside Jamaica. Jobs for ICT technicians, accountants, and lawyers as Jamaica moves from BPO to KPO. • Education and Training – Adjustment to high school curriculum to provide skills needed for the 21st century economy, rather than traditional academic subjects. Expansion of HEART facilities (e.g. Machado complex) to tie in with job opportunities. • Tourism – expansion of existing hotels, and construction of new hotels (e.g. Courtyard Marriott); mega-resorts with casinos; time share legislation to facilitate time share developments. We have survived slavery and colonialism. We have survived many natural disasters. We have a powerful Diaspora who love their home country (Yard) and their culture. If we believe in ourselves, the power of our movement, the People’s National Party and the resilience and creativity of our people, Jamaica can do it. Now is the time for us to ‘Be the Best We Can Be’ as we move with fixity of purpose towards a common vision of a brighter tomorrow. Comrades spread the word! Spread the word of these significant plans underway and the deliberate work being done around our Government’s Growth Inducement Strategy for Jamaica. We expect to begin seeing and feeling results within the next 2-3 years. The People’s National Party, under the leadership of the Most Honourable Portia Simpson Miller is the BEST political party, BEST equipped to lead Jamaica through these extremely challenging times to a prosperous Jamaica for ALL. Primary Source for Content: Cde Mark Golding Communications Commission Chairperson: Cde Imani Duncan-Price
Posted on: Sun, 23 Jun 2013 20:57:35 +0000
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