PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

6.0 Short-Term Growth Stimulus
6.1 Within the overall Growth-Inducement Strategy framework outlined above, we
isolate for analysis specific projects and activities which are expected to provide the basis
for an immediate stimulus to economic growth, serve to improve the near-term credibility
of the Government’s economic programme, and engender improved economic conditions
for the implementation of a comprehensive reform package over the medium-term.
Specifically, we identify a package of public works and social inclusion projects aimed at
achieving the following outcomes:
enhance the resilience of the built and natural environment and rehabilitate farm
roads 1
accelerate implementation of the Community Renewal Programme (CRP)
release latent entrepreneurial activity of Micro, Small and Medium Enterprises
(MSMEs) through renewed lending from the Development Bank of Jamaica
(DBJ).
6.2 Some of these projects are expected to be implemented through the NWA’s road
improvement programme (JDIP), the farm roads repair programme under the Rural
Agricultural Development Authority (RADA), community-based infrastructure
programmes and social intervention activities by various agencies including, among
others, the Jamaica Social Investment Fund, the Ministries of National Security, Health,
Youth and Water & Housing, the Social Development Commission (SDC) and the DBJ.
Appendix 2A provides details of the targeted projects.
6.3 The projected growth-impact of these projects is presented in the next section.
The projections provide a direct measure of the multiplier effect of the injection of
expenditure on each project as that expenditure works its way through the productive
structure of the economy, creating jobs for workers, demand for products, sales by
business firms, and revenue for government. These projections do not take into account
the likely impact from currently ongoing government infrastructure projects or from other
development projects being planned or implemented by various Ministries. Moreover, no
account is taken of government proposals and plans for housing construction that are
likely to come on-stream during FY2010/11, quantitative data for which are not available
at this time. Additional stimulus is expected to come from all of those efforts.
6.4 It must be noted also that the strategy includes a range of initiatives targeted to
improve the environment for doing business and to enhance the dynamic capacity of the
economy, involving changes in rules, regulations, and various tax items, as well as crime
reduction. These initiatives are expected to have a significant positive effect on business
decisions, both from their direct impact on costs of doing business and from signalling a
new and favourable direction of public policy. This effect, though measurable through
1 The main areas recommended by the Office of Disaster Preparedness and Emergency Management (ODPEM) to be
targeted for comprehensive enhancement of the built and natural environment in a longer term framework are outlined
in Part IV.F of this report.
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