PIOJ Growth-Inducement Strategy - Planning Institute of Jamaica

3.0 May 2010 Security Event and Aftermath
The clearest evidence of the country’s need to pursue the goals of Vision 2030 Jamaica is
the May 2010 security operations in West Kingston. The event exposed a malady of
difficulties and challenges in the identified 100 vulnerable communities across the
country. A Community Renewal Programme is being developed to address
comprehensively the exposed social problems, in particular, crime and violence, and
attendant issues such as illiteracy, anti-social behaviour, low self esteem, unemployment,
poor housing, poor infrastructure, weak community governance and lack of coordination
of social intervention programmes. Thanks to you as a body, and your leadership in the
persons of Mr. Joe Matalon and Mrs. Sandra Glasgow, the PSOJ has been a perfect
partner in the PIOJ’s efforts to develop and coordinate the Community Renewal
Programme. I am happy to report that significant progress has been made and we are
well on our way to putting in place the framework to make a lasting difference in these
communities.
What is important for our discussion is that Goals One and Two of Vision 2030 Jamaica,
which speak of our collective wants of a Jamaica that “empowers each of us to achieve
our fullest potential,” and a Jamaica that is “secure, cohesive and just,” are the
inspirations for the CRP. These importantly are also the end goals of our economic
growth and development ambition.
I say without fear of contradiction, that neither the goals of Vision 2030 Jamaica, which
require substantial wealth creation, nor our IMF Fiscal Consolidation Programme, is
achievable without the transformation of our economy into a private sector led one.
4.0 Current Fiscal Consolidation Programme
We are all aware of the GOJ entering into a Stand-By Arrangement (SBA) with the IMF
to help pull our economy back from the brink of collapse. Quantitative and qualitative
fiscal consolidation and reform are at the core of this SBA programme. Specifically, the
Programme seeks to:
place the debt to GDP ratio on a downward trajectory
entrench fiscal accountability and discipline
significantly raise real GDP growth rates.
The programme is growth inducing if it credibly reduces:
• government inefficiencies and distortions of economic resources
• the tax-price of the provision of government services
• the perverse incentives associated with government economic activism
• government crowding-out of the private sector through competition for resources
and leads to a greater expansion in the private economy because of the rational perception
that long-term permanent wealth and income will increase as a result. This perception
then encourages an increase in current expenditures and an expansion and growth in the
economy.
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