PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

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Government has a unique responsibility in this case for seeking to address these constraints by adopting a range of instruments available to it through its roles in monetary management, taxation, economic regulation, delivery of public services (security, health, education, training, information dissemination) and provision of physical infrastructure. By the totality of its actions in these various roles and by proactively targeting specific constraints for action, government can also influence the choices that firms make in critical areas such as employment of labour, investment, and geographical location. The particular, though not exclusive, role of fiscal incentives as an instrument for influencing business decisions is a relevant issue here and will be further examined, through analysis and evaluation of the existing incentive schemes, as the reform program proceeds. Aside from government’s role, there also exists a shared responsibility on the part of business firms to focus their efforts on addressing those factors internal to their operation that are under their direct control. In this connection, the GCI indicators are especially instructive in identifying specific areas where that responsibility comes into play, as can be seen from close examination of the “pillars” of competitiveness and the detailed indicators underlying them. The GCI ranking of the 12 pillars for Jamaica is listed in Chart 7 in descending order of their “strength” as measured by their quantitative score. Many of them distinctly relate to internal operations of firms and some of these, e.g. technological readiness, business sophistication, and innovation, fall quite low in the ranking. Note that innovation is at the very bottom of the ranking, where it is tied in score with two other factors “external” to firms, namely market size and macroeconomic environment. Chart 7. Strength/Weakness in Pillars of Competitiveness, 2010-11 Rank Pillars Score 1 Health & primary education 5.2 2 Financial market development 4.5 3 Labour market efficiency 4.2 4 Goods market efficiency 4.0 5 Infrastructure 3.9 6 Higher education and training 3.9 7 Technological readiness 3.8 8 Business sophistication 3.7 9 Institutions 3.7 10 Innovation 2.9 11 Market size 2.9 12 Macroeconomic environment 2.9 Source: The Global Competitiveness Report 2010-2011, World Economic Forum. 119
For further elaboration of the constraints directly related to the internal practices of firms in Jamaica, Chart 8 lists the specific indicators of such practices (with their global ranking) underlying the GCI pillars. Evidently, this list points to a host of relevant matters which deserve closer attention by business leaders. Chart 8. Strength/Weakness in Internal Practices of Business, 2010-11 Pillar/Indicator Source: The Global Competitiveness Report 2010-2011, World Economic Forum. Rank (out of 139) Goods market efficiency 80 Intensity of local competition 72 Extent of market dominance 93 Degree of customer orientation 117 Labor market efficiency 83 Reliance on professional management 58 Hiring & firing practices 59 Female participation in labor force 78 Cooperation in labor-employer relations 115 Pay & productivity 116 Financial market development 46 Soundness of banks 47 Financing through local equity market 47 Availability of financial services 63 Affordability of financial services 95 Venture capital availability 125 Ease of access to loans 128 Technological readiness 60 Availability of latest technologies 52 Firm-level technology absorption 75 Internet bandwith 78 FDI and technology transfer 90 Business sophistication 81 State of cluster development 79 Extent of marketing 82 Value chain breadth 83 Local supplier quality 84 Willingness to delegate authority 89 Production process sophistication 92 Control of international distribution 102 Local supplier quantity 111 Innovation 93 Utility patents per million population 53 University-industry collaboration in R&D 66 Quality of scientific research institutions 67 Company spending on R&D 83 Capacity for innovation 107 120
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i A GROWTH-INDUCEMENT STRATEGY FOR
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To the many ordinary Jamaicans who
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Preface The Jamaican economy has ex
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for making a determined start on th
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the private sector groups, listed b
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Citibank N.A. Jamaica Branch Grace
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need for “additional fiscal space
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Chapter 2 ________________ Summary
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1.0 The Economic Situation Today 1.
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expected to provide an essential an
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Table 2.1. The Policy Framework: A
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programme of social inclusion that
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Strategic Focus Table 2.2. Growth S
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6.0 Short-Term Growth Stimulus 6.1
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decline of 2.0 - 2.2 percentage poi
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Table 2A.2. NWA Projects To be Fast
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Table 2A.5. Community Renewal Proje
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Table 2B.3. Impact of Repairing Far
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Appendix 2C Methodology of the Grow
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Part I _________ Overview 28
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2.0 Vision 2030 Jamaica Before delv
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3.0 May 2010 Security Event and Aft
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the longer than anticipated global
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April July October January April Ju
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Three industries recorded increases
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9.0 Proposals for Growth-Stimulus I
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targeted economic and social infras
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partnering with government to disco
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3.0 Growth Inducement Strategy The
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Growth-Inducement Strategy Alignmen
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50 Part II _________ Situational An
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inadequate provision of public infr
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2.0 Macroeconomic Assessment 2.1 In
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Increased global oil consumption wa
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$4,742.0 million and $688.4 million
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Non -Traditional Domestic Exports E
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negative impact of the Jamaica Debt
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ethanol and paint, whereas lower de
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Analysis of preliminary GCT data re
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Page 83 and 84: 4.0 Projected Performance 4.1 Calen
Page 85 and 86: increased marketing and extension s
Page 87 and 88: Electricity & Water For FY 2010/11,
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Page 91 and 92: 2011/12). These extreme weather eve
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Page 95 and 96: creates allocative inefficiencies,
Page 97 and 98: Million $ Per cent Jun-10 Mar-10 De
Page 99 and 100: Table 6.1. Employed Labour Force by
Page 101 and 102: J$ million Mar-10 Dec-09 Sep-09 Jun
Page 103 and 104: FIGURE 7: GROSS NATIONAL SAVINGS RA
Page 105 and 106: 4.10.2. However, the extent of the
Page 107 and 108: Part III ____________ Analytical Fr
Page 109 and 110: functional relationship between the
Page 111 and 112: It follows that: (5) s = I/Y = [S -
Page 113 and 114: However, the existence of measureme
Page 115 and 116: (d) v* = Y*/K* This is a measure of
Page 117 and 118: in Chapter 8. The mutual interactio
Page 119 and 120: Transforming the complex set of str
Page 121 and 122: Appendix 7A A Methodological Note T
Page 123 and 124: Chapter 8 ____________________ Asse
Page 125 and 126: The DBI focuses more narrowly on qu
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Page 129: can be made to serve a very useful
Page 133 and 134: progressive Jamaica-based firms and
Page 135 and 136: Table 8.2. Jamaica: Doing Business,
Page 137 and 138: Table 8.4. Global Competitiveness I
Page 139 and 140: Table 8.5 (continued) Rank Indicato
Page 141 and 142: Rank* Constraint Table 8.7 Business
Page 143 and 144: Chapter 9 ___________________ Inter
Page 145 and 146: 3.0 The Burdens of LAC’s Logistic
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Page 149 and 150: Figure 9.4. Proportion of Primary A
Page 151 and 152: 6.0 Logistics are Essential for Tou
Page 153 and 154: 7.0 Fundamental Steps Forward for J
Page 155 and 156: Part IV ________________ Policies a
Page 157 and 158: Current Status: Cabinet by decision
Page 159 and 160: e more than compensated for by the
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Page 163 and 164: Commercial Bank loan rates have als
Page 165 and 166: 5.0 Expected Outcomes These measure
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Page 171 and 172: Table C.1. Proposed Implementation
Page 173 and 174: Locally, the Scientific Research Co
Page 175 and 176: Develop formal and informal links t
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Page 179 and 180: 5.0 Recommendations Based on the ma
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2.5 Coexistent with the levels of u
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industry as well as provide funding
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Table E.2. Unemployed Labour Force
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indirect losses experienced when th
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Table F.1 (continued) Area Type of
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G ____________________ Community Re
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Figure G.1 Community Renewal Progra
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Table G.1 Priority Initiatives Obje
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Table G.2 Phased Implementation Pla
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H ____________________ Proposed Wes
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3.0 Transparency Guarantees By desi
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and Coordinating Unit (PCMU) was es
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therefore need to have sanctioned o
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Figure I.1. Functions of National P
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The rationalisation was guided by t
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deliver services in an efficient an
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efurbishing to allow for accommodat
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Part V _______________ Panelists’
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With the benefit of hindsight, some
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ight. Where we as a society fail is
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and exclusion of the majority of th
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the elders, youth, children. What f
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C __________________ Enhancing Nati
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Figure C.1. National resilience is
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PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

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