PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

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J ____________________ Public Sector Transformation 74 1.0 Background Cabinet Decision #49/09, dated November 2, 2009, stated the decision of Cabinet to rationalize the Public Sector. The vision to be realised is “a transformed cohesive Public Sector that is performance-based, efficient, cost effective and service oriented.” The stated reasons for rationalisation are as follows: overlapping and duplication of mandates and functions organizations and structures that are no longer relevant shifts in mandate and core functions archaic systems and structures outdated Statutes high wage bill relative to GDP lack of appropriate technology lack of inter and intra-Ministry collaboration limited financial and material resources. 2.0 The Context The Public Sector Master Rationalization Plan addresses the rationalization of the Public Sector at the strategic level and examines Ministries and their respective Departments and Agencies, in relation to their mandates and core functions. Careful consideration was given to the role, core functions and priorities of Government. The determination of the core functions of Government was informed by an understanding of “what Government should do and pay for; what government must pay for, but does not have to do; and what Government should not do and should not pay for” 75 . This philosophy guided the review of the functions of Ministries, Departments and Agencies and their status was determined based on, one of six options, namely: 1. retention 2. transfer 3. merger 4. abolition 5. divestment/privatisation 6. contracting out. 74 Prepared by the Public Sector Transformation Unit, Cabinet Office. 75 Osborne, David and Plastrik, Peter, Banishing Bureaucracy: The Five Strategies for Reinventing Government, First Plume Printing, USA, 1997. 197
The rationalisation was guided by the imperative for a Jamaican Public Sector that is service oriented, results-based and guided by appropriate accountability mechanisms and which, therefore, provides an enabling environment for the achievement of the Vision 2030 goal: “Jamaica the place of choice to live, work, raise families and do business”. 3.0 Treatment of Reduction of the Ratio of Public Sector Wage Bill to GDP The Government has committed to the International Monetary Fund (IMF) that it will reduce the size of the public sector wage bill from 11.75 per cent of GDP to 9.5 per cent of GDP by 2013/2014. The size of the wage bill, which is estimated to cost the Government $126 billion this fiscal year, will be maintained over the next two years. The Government hopes to cap the wage bill at $150 billion in 2013/2014, or 19 per cent higher than at the commencement of the programme. It should be pointed out that realization of the anticipated reduction will be obtained not only through the rationalization of the Ministries, Departments and Agencies (MDAs), but also through improved efficiency and increased productivity which will impact on GDP. Moreover, there are other critical areas within the public sector reconstruction that could impact significantly on the public sector wage bill. These include pension reform, leave reform and compensation reform which should have real impact on the realization of these targets. 4.0 Proposed Transformation Initiatives 4.1 Strengthening of Institutions promoting Economic Growth A critical component of the public sector transformation is strengthening those institutions that play a vital role in promoting economic growth. Chief among them would be the Ministry of Industry, Investment and Commerce and the Jamaica Business Development Centre, the leading local agency charged with the responsibility of facilitating the development of Micro, Small and Medium-sized Enterprises (MSMEs) to enable them to establish sustainable businesses. Those entities that impact directly on investments are also targeted for institutional strengthening. They include the National Environment and Planning Agency (NEPA), the National Land Agency (NLA) and other related entities that play an integral role in the Development Approval Process. Among the issues to be reviewed within these entities are: the business processes and the technology necessary to enhance the operational framework for greater productivity. Science and Technology, Research and Development, play a critical role in enhancing a country’s growth and development. Modalities for translating development goals into outputs using research and scientific endeavours are lacking or not clearly defined. At present the research and technology activities in the country are highly fragmented, with good research taking place in pockets, but seemingly not translating into action through 198
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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 $688.4 million
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Non -Traditional Domestic Exports E
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negative impact of the Jamaica Debt
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ethanol and paint, whereas lower de
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Analysis of preliminary GCT data re
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The number of ship calls to the isl
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industry was, however, estimated to
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4.0 Projected Performance 4.1 Calen
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increased marketing and extension s
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Electricity & Water For FY 2010/11,
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J$ Million Figure 5.1. Private Sect
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2011/12). These extreme weather eve
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Chapter 6 ________________ Assessme
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creates allocative inefficiencies,
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Million $ Per cent Jun-10 Mar-10 De
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Table 6.1. Employed Labour Force by
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J$ million Mar-10 Dec-09 Sep-09 Jun
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FIGURE 7: GROSS NATIONAL SAVINGS RA
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4.10.2. However, the extent of the
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Part III ____________ Analytical Fr
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functional relationship between the
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It follows that: (5) s = I/Y = [S -
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However, the existence of measureme
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(d) v* = Y*/K* This is a measure of
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in Chapter 8. The mutual interactio
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Transforming the complex set of str
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Appendix 7A A Methodological Note T
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Chapter 8 ____________________ Asse
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The DBI focuses more narrowly on qu
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to ask, is it possible to predict g
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can be made to serve a very useful
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For further elaboration of the cons
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progressive Jamaica-based firms and
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Table 8.2. Jamaica: Doing Business,
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Table 8.4. Global Competitiveness I
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Table 8.5 (continued) Rank Indicato
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Rank* Constraint Table 8.7 Business
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Chapter 9 ___________________ Inter
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3.0 The Burdens of LAC’s Logistic
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conditions. These combined with a p
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Figure 9.4. Proportion of Primary A
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6.0 Logistics are Essential for Tou
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7.0 Fundamental Steps Forward for J
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Part IV ________________ Policies a
Page 157 and 158: Current Status: Cabinet by decision
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Page 165 and 166: 5.0 Expected Outcomes These measure
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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
Page 181 and 182: 2.5 Coexistent with the levels of u
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Page 185 and 186: Table E.2. Unemployed Labour Force
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Page 189 and 190: Table F.1 (continued) Area Type of
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Page 205 and 206: therefore need to have sanctioned o
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Page 217 and 218: With the benefit of hindsight, some
Page 219 and 220: ight. Where we as a society fail is
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