National Planning Summit 2007

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National Planning Summit 2007

Government of Jamaica The Private Sector Organisation of Jamaica PricewaterhouseCoopers

Jamaica TomorrowJamaica Tomorrow

Report


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Dear Summit Participants

Our National Planning Summit 2007 has come to an end. From all indications and discussions,

the Summit was a resounding success.

Based on our own interactions in specific sessions, we have successfully identified and arrived

at consensus on the priority strategies for each of the seven planning themes that formed the

basis of the discussions to deliver the vision of Jamaica Tomorrow.We firmly believe that through our interactive Summit, we have arrived at the end of the

beginning of a broader process that will see the active management and implementation of the

various plans and initiatives developed. The enclosed report summarises the outputs over the

two days and will form the key input to the Chief Execution Officer in the Office of the Prime

Minister to drive the implementation of the various initiatives. Invariably, a number of the goals,

objectives and strategies, have been defined at a relatively high level and will require some

refinement in moving forward.

We look forward to continued collaboration between the Government of Jamaica and the private

sector as we embark on our process of implementation and national dialogue to achieve our

shared vision of Jamaica Tomorrow.

Bruce Golding

Prime Minister

Christopher Zacca

President, PSOJ


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Table of Contents

INTRODUCTION ..............................................................................................1Background to the National Planning Summit 2007.....................................................1

Approach .....................................................................................................................1

PLANNING RESULTS ......................................................................................4

Planning Framework.................................................................................................... 4Planning Results Overview.......................................................................................... 6

PROGRAMME PERFECTION AND FORWARD LOOKING ACTIVITIES......................14Monitoring Framework............................................................................................... 14Chief Execution Officer Roles and responsibilities.................................................. 15Next steps and timelines............................................................................................ 16

APPENDIX 1 DETAILS OF PLANNING THEMES...............................................17Job Creation & Investment Promotion....................................................................... 18Balancing the budget / Debt reduction....................................................................... 25Tax reform ................................................................................................................. 30

Land titling reform...................................................................................................... 35Crime & Violence / Justice......................................................................................... 40Education and training............................................................................................... 46Governance / Reducing Bureaucracy........................................................................ 52

APPENDIX 2 NATIONAL PLANNING SUMMIT 2007 AGENDA ...........................57

APPENDIX 3 LIST OF ATTENDEES ...............................................................58


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1

Introduction

Background to the National Planning Summit 2007

The development of a strong, thriving and vibrant economy builds and strengthens investor

confidence, thereby stimulating investment, which creates jobs and facilitates the

implementation of supporting infrastructure, and related critical social initiatives.

A key element of the way forward, was to arrive at a broad consensus between the Government

of Jamaica and the private sector on the critical initiatives that will drive economic growth and

sustainable development.

To this end, the National Planning Summit 2007 was conceptualised and held at the Ritz

Carlton Golf and Spa Resort, Montego Bay, 2 November 2007 to 4 November 2007 with a view

to bring together a broad coalition of private sector leaders, public sector representatives and

NGOs and achieve consensus on:

A shared vision for the various planning themes identified

High level plans required to bring the vision to life

The specific strategies that will ensure the success of the plan.

Approach

The Summit commenced on the evening of Friday, 2 November, with an address by Dr Wesley

Hughes on Vision 2030 Jamaica.

The Honourable Prime Minister Bruce Golding officially opened the National Planning Summit

2007 on Saturday morning, 3 November. This was followed by an address by Christopher

Zacca, President of The Private Sector Organisation of Jamaica outlining the private sectors

position on the imperatives to deliver economic growth and development.Appendix 2 provides the detailed Agenda of the Summit.


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2

A collaborative facilitator-

led series of sessions were

held with a view to:

Achieving

consensus on all

outcomes of the

process

Ensuring full participation by the broadest possible cross section of participants.

Master facilitator Michael Wilkinson and lead facilitator Bill Olsen, led the group of over 100

participants in a plenary session to agree on the themes for discussion at the Summit. With an

initial starting point of seven themes, the plenary group, through a process of brainstorming and

consolidation, arrived at a final suite of planning themes as follows:

Job creation/investment promotion

Balancing the budget/Debt reduction

Tax reform

Land titling reform

Crime, violence and justice

Education and training

Governance/reducing bureaucracy.

Participants were assigned to breakout groups based on their interest and/or expertise. In

breakout groups, participants received a brief presentation from the Subject Matter Expert who

had prepared a discussion paper for the purpose. Participants then discussed the issues, and

through a facilitated process developed consensus on the following:

The issues and challenges underlying the current situation

Specific Goal statements, viz the broad, long term aim in the planning theme area

Objectives the specific, quantifiable, realistic targets that measure the accomplishment

of a goal over a specified period of time

Critical success factors, being the key conditions that must be created to achieve one of

more of the objectives

Barriers the existing or potential challenges that hinder the achievement of one or

more objectives

PlenarySession 1

BreakoutSession 1

Breakoutsession 2

Breakoutsession3

PlenarySession 2

Summit opening

Consensus onplanningthemesfor discussion

Assignmentofbreakout groups

Reviewofdiscussionpaper

Assessment ofcurrent situation

Developmentofgoal statement

Developmentofobjectives

Identification ofcritical successfactorsandbarriers

Definitionofstrategies

Establishmentofpriorities

Documentationof deliverable

Consensus onstrategicprioritiesforrelated planningthemes

Summit close

PlenarySession 1

BreakoutSession 1

Breakoutsession 2

Breakoutsession3

PlenarySession 2

Summit opening

Consensus onplanningthemesfor discussion

Assignmentofbreakout groups

Reviewofdiscussionpaper

Assessment ofcurrent situation

Developmentofgoal statement

Developmentofobjectives

Identification ofcritical successfactorsandbarriers

Definitionofstrategies

Establishmentofpriorities

Documentationof deliverable

Consensus onstrategicprioritiesforrelated planningthemes

Summit close


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Strategies the broad activities required to achieve an objective, control a critical

success factor or overcome a barrier.

Priorities the strategies of highest importance to be started first (typically due to

impact, first-win potential or sequencing).

The breakout groups convened in a plenary session where, using a consensus-building

process, all participants were allowed to evaluate the strategies and priorities developed by the

various groups and provide input to the final selection of priority strategies.


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Planning Results

Planning Framework

The National Planning Summit 2007 was executed in a logical planning framework that

recognised the larger body of work currently taking place for the development of an overall

strategic framework in the creation of Vision 2030 Jamaica as a national development plan.

Through a collaborative process, seven key planning themes were identified by The Private

Sector Organisation of Jamaica that would form the basis for driving economic growth and

development in Jamaica.

Within the overall 2030 Vision

of Jamaica, the place of

choice to live, work, raise

families and do business the

National Planning Summit was

crystallised on the basis of the

seven key themes.

The planning themes by their nature, support the overall 2030 vision on a number of bases:

Direct themes that directly fuel economic growth and development

Indirect themes that provide an enabling environment to deliver economic growth, such

as legislative reform, human and social capital issues.

Crime & Violence

GovernanceLand titling

Education &Training

Tax reform Job creation& investmentpromotion

Balancing thebudget/Debtreduction

Crime & Violence

GovernanceLand titling

Education &Training

Tax reform Job creation& investmentpromotion

Balancing thebudget/Debtreduction


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The graphic below identifies the relationship between the various planning themes and the

elements of the Vision 2030 which they support:

Job creation & investmentpromotion

Planning themes

Supporting element of Vision 2030

EnvironmentalManagement &

Planning

Debt reduction

Tax reform

Land reform / titling

Crime & Violence / Justice

Education & Training

Governance

SocialDevelopment

EconomicDevelopment

Governance

Job creation & investmentpromotion

Planning themes

Supporting element of Vision 2030

EnvironmentalManagement &

Planning

Debt reduction

Tax reform

Land reform / titling

Crime & Violence / Justice

Education & Training

Governance

SocialDevelopment

EconomicDevelopment

Governance


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Planning Results Overview

For each of the seven planning theme areas, the planning diagrams on the following pages

provide the:

Goal

Specific objectives1

Critical success factors and barriers

Strategic initiatives

Priorities.

Appendix 1 provides additional details of the seven themes.

1In some instances, the objectives do not include specific targets and timeframes. It is anticipated that these will be

developed in the course of implementation.


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Planning Theme J ob Creation &Investment Promotion

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Investor friendly environment Project Development (Execution) Expertise

Wide awareness of Jamaicas value in the targeted market

place s as an inves tmen t d estin ation

Perception of safety and peace

High awareness of local providers

Access to capital

Critical Success Factors

High energy costs

Perception of unavailability of qualified

workers and acceptable goods and services

Poorly configured financial structures (taxes

etc)

Barriers

1. Aggressively target specified local & international investors

2. Create a one-stop agency of government for all government

approvals

3. Create a venture capital fund

4. Develop a Business to Business (B-B) marketing campaign

5. Create incentives for targeted sectors

6. Create tax incentives to attract both local and foreign investments

7. Create a central directory of all goods and service providers

8. Implement legislative framework for Jamaica as an Off Shorefinancial centre

Strategies / Initiatives

Create a one-stop agency of government

for all government approvals

Implement legislative framework that will

facilitate Jamaica becoming an Off

Shore financial centre

Priorities

To create a stable

environment which

provid es oppo rtunitie s for

investments, both local

and foreign, therebyprovid ing meani ngful

employment & wealth

creation for all citizens

Goal

Increase the number of net start up businesses by X%

by 20XX

Reduce unemployment by X% per year

Increase Jamaicas share of targeted global market toX% by 20XX

Increase absorption rate into local economy to X% by

20XX

Increase foreign and local direct investment by X%

Increase GDP per capita by X% in 2 years

Reduce the number of people below poverty line to X%by 20XX

Objectives

Investor friendly environment Project Development (Execution) Expertise

Wide awareness of Jamaicas value in the targeted market

place s as an inves tmen t d estin ation

Perception of safety and peace


Access to capital


High energy costs

Perception of unavailability of qualified

workers and acceptable goods and services

Poorly configured financial structures (taxes

etc)

Barriers

1. Aggressively target specified local & international investors

2. Create a one-stop agency of government for all government

approvals

3. Create a venture capital fund

4. Develop a Business to Business (B-B) marketing campaign

5. Create incentives for targeted sectors

6. Create tax incentives to attract both local and foreign investments

7. Create a central directory of all goods and service providers

8. Implement legislative framework for Jamaica as an Off Shorefinancial centre


Create a one-stop agency of government

for all government approvals

Implement legislative framework that will

facilitate Jamaica becoming an Off

Shore financial centre

Priorities

To create a stable

environment which

provid es oppo rtunitie s for

investments, both local

and foreign, therebyprovid ing meani ngful

employment & wealth

creation for all citizens

Goal

Increase the number of net start up businesses by X%

by 20XX


Increase Jamaicas share of targeted global market toX% by 20XX

Increase absorption rate into local economy to X% by

20XX



Reduce the number of people below poverty line to X%by 20XX

Objectives


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Planning Theme Balancing theBudget/Debt Reduction

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Timely and accurate information

Political will

Expenditure management

Accountability

Tax reform (bring in informal sector)

GDP growth


Social dislocation

Corruption

Waste

Infrastructure needs

Labour laws

World economic conditions

Natural disasters

Barriers

1. Get low cost multilateral financing

2. Simplify and enforce tax act(s) to increase revenue

3. Divest non-core assets and outsource non-core activities to reduceexpenditure

4. Pass and enforce fiscal responsibility Act

5. Reduce exposure to variable rate debt

6. Enforce modernised procurement regulations strictly

7. Communicate with stakeholders to build political will and accountability

8. Rationalise public service and introduce performance based evaluations toincrease efficiency and reduce expenditure

9. Improve budgetary process and implement accrual accounting

10. Prioritise capital investment to growth-ind ucing infrastructure


Simplify and enforce tax Act(s) toincrease revenue

Rationalise public service and

introduce performance basedevaluations to increase efficiency and

reduce expenditure

Priorities

To achieve a

sustainable,

ba lan ce d bud ge tallowing the fiscal

flexibility for

growth-generatingpu blic and pri vat e

capital and socialinvestment

Goal Reduce budget deficit as a % of GD P to.

Reduce total debt to GDP ratio to 92% in 5

years and 64% in 10 years

Reduce ratio of debt service to total expenditure

to 45% in 5 years and 34% in 10 years

Reduce recurrent expenditure as a % of revenueto 80% in 5 years and 70% in 10 years

Reduce debt in non-going concern publicsectors bodies to .

Increase REAL per capita GDP to US$5,000 in

5 yeas and US$X,XXX in 10 years

Objectives

Relatively stable exchange rate vs. CPI

Public sector reform

Reducing cost of corruption

Budget process

Divestment of public enterprise


Political will


Accountability


GDP growth


Social dislocation

Corruption

Waste

Infrastructure needs

Labour laws


Natural disasters

Barriers

1. Get low cost multilateral financing

2. Simplify and enforce tax act(s) to increase revenue

3. Divest non-core assets and outsource non-core activities to reduceexpenditure

4. Pass and enforce fiscal responsibility Act

5. Reduce exposure to variable rate debt

6. Enforce modernised procurement regulations strictly

7. Communicate with stakeholders to build political will and accountability

8. Rationalise public service and introduce performance based evaluations toincrease efficiency and reduce expenditure

9. Improve budgetary process and implement accrual accounting

10. Prioritise capital investment to growth-ind ucing infrastructure


Simplify and enforce tax Act(s) toincrease revenue

Rationalise public service and

introduce performance basedevaluations to increase efficiency and

reduce expenditure

Priorities

To achieve a

sustainable,

ba lan ce d bud ge tallowing the fiscal

flexibility for

growth-generatingpu blic and pri vat e

capital and socialinvestment

Goal Reduce budget deficit as a % of GD P to.

Reduce total debt to GDP ratio to 92% in 5

years and 64% in 10 years

Reduce ratio of debt service to total expenditure

to 45% in 5 years and 34% in 10 years

Reduce recurrent expenditure as a % of revenueto 80% in 5 years and 70% in 10 years

Reduce debt in non-going concern publicsectors bodies to .

Increase REAL per capita GDP to US$5,000 in

5 yeas and US$X,XXX in 10 years

Objectives




Budget process

Divestment of public enterprise


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Planning Theme Land TitlingReform

10

Availability of surveyors to develop cadastral

maps

Enhanced institutional capacity

Stakeholder buy-in

Public education

Rationalisation of state functions

Rationalisation of subsidies


Cost and complexity of landtransactions

Lack of funding for programmes

Disputed land tenure

Lack of transparency

Lack of stakeholder buy-in

Barriers

1. Enhance institutional capacity

2. Rationalise state functions to achieve efficiency

3. Reform legs., regs. and tax regimes to expedite processing

4. Consult stakeholders in policy development to achieve buy-in

5. Implement transparency and accountability in all programmes

6. Communicate progr ammes to the public

7. Develop cadastral maps to facilitate planning

8. Rationalise subsidies to benefit the maximum # of persons

9. Create community-based tribunals to establish land ownership


Achieve stakeholder buy in throughconsultation in policy development anddevelopment & impleme ntation of effective

pu bli c ed uc ati on.

Enhance institutional capacity to facilitatedevelopment of land use database andinventory of land.

Priorities

To establish a national landuse plan and formalisation of

land ownership to promote

social and economicdevelopment

Goal Inventory of all lands in 2 years

Development of land use database in 2 yrs

90% of all parcels registered in 10 years

Containment of squatting immediately andregularisation of informal settlements in 10

yrs

Development of a national housing policy

in 18 months

Creation of a dynamic and efficient landmarket in 5 years

Objectives

Availability of surveyors to develop cadastral

maps

Enhanced institutional capacity

Stakeholder buy-in

Public education

Rationalisation of state functions

Rationalisation of subsidies


Cost and complexity of landtransactions

Lack of funding for programmes

Disputed land tenure

Lack of transparency

Lack of stakeholder buy-in

Barriers

1. Enhance institutional capacity

2. Rationalise state functions to achieve efficiency

3. Reform legs., regs. and tax regimes to expedite processing

4. Consult stakeholders in policy development to achieve buy-in

5. Implement transparency and accountability in all programmes

6. Communicate progr ammes to the public

7. Develop cadastral maps to facilitate planning

8. Rationalise subsidies to benefit the maximum # of persons

9. Create community-based tribunals to establish land ownership


Achieve stakeholder buy in throughconsultation in policy development anddevelopment & impleme ntation of effective

pu bli c ed uc ati on.

Enhance institutional capacity to facilitatedevelopment of land use database andinventory of land.

Priorities

To establish a national landuse plan and formalisation of

land ownership to promote

social and economicdevelopment

Goal Inventory of all lands in 2 years

Development of land use database in 2 yrs

90% of all parcels registered in 10 years

Containment of squatting immediately andregularisation of informal settlements in 10

yrs

Development of a national housing policy

in 18 months

Creation of a dynamic and efficient landmarket in 5 years

Objectives


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Planning Theme Crime & Violence/ J ustice

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Political will

Effective & accountable police force

Accessible, efficient & responsive justice system


Lack of political will

Bureaucratic impediments

Absence of national consensus

Competition for limited resources

Li b el l a ws

Management capacity of the police force

Barriers

1. Implement appropriate recommendations of the McMillan report with emphasis on:

Rai sing of stan dar ds for recr uitm ent and train ing, pro fess ion al d evel opm ent & rem un erati on ofthe police force

Int rod uctio n of new legi slat ion to esta blis h me cha nis m for the rem ova l o f u npr ofes sio nal pol ice

officers

2. Establish an oversight committee made up of members of civil society that will communicate with theMinistry of National Security and Justice and assist with the implementation of the Crime Plan

3. Collaborate with the Ministry of Education and the Ministry of National Security youth training and

social programs e.g. expansion of Cadet and Scouting in schools and churches, introduction of

national parenting programs, monitoring of music, movies and television programs, compulsory

military training4. Expand rehabilitation programs for offenders

5. Make the court system more efficient through the reduction of offenses which require court

appearances

6. Establish national finger print register


Implement appropriate recommendation of

McMillan report

Establish oversight committee made up ofmembers of civil society

Priority

To restore publicconfidence in

institutions of justice

and providesubstantially improved

security for all

Goal

Reduce murder by at least10% per year over 5 years

Increase clear up rate by at

least 10% per year over 5

years

Reduction in time tosettlement by 10%

Eliminate police extra-

jud icia l k illin g

Reduction by at least 10% peryear in crime against person

Clear backlog of cases injus tice sys tem in thr ee year s

Objectives

Political will

Effective & accountable police force

Accessible, efficient & responsive justice system






Li b el l a ws

Management capacity of the police force

Barriers

1. Implement appropriate recommendations of the McMillan report with emphasis on:

Rai sing of stan dar ds for recr uitm ent and train ing, pro fess ion al d evel opm ent & rem un erati on ofthe police force

Int rod uctio n of new legi slat ion to esta blis h me cha nis m for the rem ova l o f u npr ofes sio nal pol ice

officers

2. Establish an oversight committee made up of members of civil society that will communicate with theMinistry of National Security and Justice and assist with the implementation of the Crime Plan

3. Collaborate with the Ministry of Education and the Ministry of National Security youth training and

social programs e.g. expansion of Cadet and Scouting in schools and churches, introduction of

national parenting programs, monitoring of music, movies and television programs, compulsory

military training4. Expand rehabilitation programs for offenders

5. Make the court system more efficient through the reduction of offenses which require court

appearances

6. Establish national finger print register


Implement appropriate recommendation of

McMillan report

Establish oversight committee made up ofmembers of civil society

Priority

To restore publicconfidence in

institutions of justice

and providesubstantially improved

security for all

Goal

Reduce murder by at least10% per year over 5 years

Increase clear up rate by at

least 10% per year over 5

years

Reduction in time tosettlement by 10%

Eliminate police extra-

jud icia l k illin g

Reduction by at least 10% peryear in crime against person

Clear backlog of cases injus tice sys tem in thr ee year s

Objectives


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Planning Theme Governance/Reducing Bureaucracy

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Cost effective, efficient client-centered publicservice supported by an integrated ICTframework

Coherent policy framework supported by

appropriate legislative, regulatory andinstitutional mechanisms

Rigorous and consistent enforcement of the law


Political ambivalence

Vested interests in maintaining the status quo

Mistrust/lack of trust

Lack of resources/domination of debt burden

Energy costs

Inflexibility of employment conditions

Barriers

1. Target strategic high impact and/or potential self-financing

pub lic ag enc ies for mo de rniz ati on

2. Rationalise public sector agencies to eliminate duplication

3. Dedicate a team to review existing legislation

4. Develop and pursue a risk-based management approach to

pub lic sec tor gov ern an ce

5. Employ a zero tolerance approach to enforcement of laws and

regulations

6. Report waivers and special favours granted by Ministers toParliament and publish the report


Target strategic high impact and/or

po ten tial sel f-f ina nci ng pub lic age nci es for

modernization

Report all waivers and special favoursgranted by Ministers to Parliament andpub lish rep ort

Develop and pursue a risk basedmanagement approach to public sectorgovernance

Priority

Public and privatecollaboration for a citizen-

friendly country where there istransparency, accountability,respect for the law and

opportunities are available for

all.

Goal Increase ranking in Doing Business inJamaica by X%

Increase satisfaction levels of citizens

through citizen surveys published

pe riod ica lly

Reduce crime and violence by X% over X

years

Improve court case disposal rate by X% peryear

Objectives

Cost effective, efficient client-centered publicservice supported by an integrated ICTframework

Coherent policy framework supported by

appropriate legislative, regulatory andinstitutional mechanisms

Rigorous and consistent enforcement of the law



Vested interests in maintaining the status quo


Lack of resources/domination of debt burden

Energy costs


Barriers

1. Target strategic high impact and/or potential self-financing

pub lic ag enc ies for mo de rniz ati on

2. Rationalise public sector agencies to eliminate duplication

3. Dedicate a team to review existing legislation

4. Develop and pursue a risk-based management approach to

pub lic sec tor gov ern an ce

5. Employ a zero tolerance approach to enforcement of laws and

regulations

6. Report waivers and special favours granted by Ministers toParliament and publish the report


Target strategic high impact and/or

po ten tial sel f-f ina nci ng pub lic age nci es for

modernization

Report all waivers and special favoursgranted by Ministers to Parliament andpub lish rep ort

Develop and pursue a risk basedmanagement approach to public sectorgovernance

Priority

Public and privatecollaboration for a citizen-

friendly country where there istransparency, accountability,respect for the law and

opportunities are available for

all.

Goal Increase ranking in Doing Business inJamaica by X%

Increase satisfaction levels of citizens

through citizen surveys published

pe riod ica lly

Reduce crime and violence by X% over X

years

Improve court case disposal rate by X% peryear

Objectives


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Programme Perfection and Forward Looking Activities

Monitoring Framework

In order to ensure that the strategies under the

various themes are appropriately managed and

delivered, a monitoring framework has beendeveloped which contemplates an overall

governance structure and a single point of

accountability for the implementation of the

projects.

The framework includes the following principal

elements:

Establishment of a Monitoring Board:

o Appointed by the Honourable Prime Minister in consultation with the private

sector and comprised of less than ten members

o With participation from both the Government of Jamaica and the private sector

o Charged with the following responsibilities:

Monitor the progress of project implementation and serve in an advisory

capacity to the Chief Execution Officer

Clear roadblocks as necessary

Ensure integration of the programme with broader national plan

Establishment of a Programme Management Office in the Office of the Prime Minister:

o Headed by the Chief Execution Officer

o Charged with the following responsibilities:

Drive project implementation

Report on project progress to the Monitoring Board.

Monitoring Board

Programme ManagementOffice headed by Chief

Execution Officer

Responsible for

Monitoring implementation o

projects

Driving project implementatio

Responsible for

Monitoring Board

Programme ManagementOffice headed by Chief

Execution Officer

Responsible for

Monitoring implementation o

projects

Driving project implementatio

Responsible for


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Chief Execution Officer Roles and responsibilities

The Chief Execution Officer (CEO) will lead the implementation of the agreed-on projects arising

from the National Planning Summit. The CEO will be charged with the responsibility and will be

held accountable for the implementation of the various projects. The key roles and

responsibilities of the CEO are listed below:

Act as the implementing agent for the Office of the Prime Minister Review and rationalise the projects arising from the National Planning Summit

Develop detailed project implementation plans with:

o Appropriate timelines

o Preliminary budgets and resource requirements appropriate to the specific needs

of the project (such as establishment of committees and the constitution of same,

arrangements for seconded resources from the private sector or Government,

use of specialist external resources, etc)

o Identification of dependencies

o Measurable and tangible benefits anticipated to be derived from the project

Develop an appropriate and cost effective administrative and other supporting

infrastructure to allow the efficient and timely delivery of the suite of identified projects

Liaise with the OPM and the Monitoring Board as appropriate to clear existing or

emerging roadblocks impeding project implementation

Provide routine reports to the Monitoring Board and OPM on the status of project

implementation

Liaise with the Planning Institute of Jamaica and other planning authorities to ensure

integration between the projects scheduled for implementation and the broader national

development plan

Identify and evaluate appropriate mechanisms and timing for private sector involvement

during project execution, such involvement including but not limited to establishment of

joint ventures, sale/divestment of Governments interest etc

Identify and incorporate with the approval of the Monitoring Board, into the overall

execution plan, new projects that may emerge to support the originally identified project

suite or as new stand-alone projects


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Hand over project to appropriate agency of Government or private sector entity to

ensure on-going operational control once complete

Provide central point for communication, discussion and co-ordination between OPM

and key stakeholders to lead the process of a national dialogue around the planningthemes and the initiatives identified.

Next steps and timelines

The table below sets out the agreed immediate next steps and the timeline for each:

Activity Primary Responsibility Deliverable

date

Document results of the National Planning Summitand distribute to all Summit participants

PricewaterhouseCoopers 15 November2007

Identify, engage and name the Chief Execution

Officer

Honourable Prime Minister 30 November

2007

Identify and appoint the Monitoring Board Honourable Prime Minister 30 November

2007

Report to the Government on the rationalization ofstrategies and priorities

Chief Execution Officer 15 December2007

Prepare and deliver first 30-day report of the

Monitoring Board

Monitoring Board 30 January

2008


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Appendix 1 Details of Planning Themes


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J ob Creation & Investment Promotion

Situational Context2

Recommendations made by the private sector over recent years and which, in the view of the

private sector, represent the most attractive and immediate opportunities for generating jobs

and economic stimulation in the country were presented. The four opportunities presented are

summarised below:Developing Kingston as a major disbribution/logistics/freezone and light manufacturing hub of

the Americas.

The Americas as a region includes over 40 countries with a population in excess of 770 million

people. The region experienced an average GDP growth rate of approximately 3.5% in 2006.

In the Caribbean, ports have been expanding and improving their facilities to capitalise on thegrowing trade, with particular focus on developing cargo hubs for north-south and east-west

trade.

Establishing a distribution hub in Jamaica will be attractive to companies worldwide for

the following reasons:

Close proximity to North, South, and Central America; the Caribbean and the Panama

Canal

Fuel, time and cost savings through enhanced efficiency of routing

Stable Government with a very open and democratic track record

Port of call for major shipping lines

Extensive experience with operation of containerised cargo transhipment port

An abundance of English speaking, trainable workers

Technologically advanced particularly in communications technology

Established direct sea cargo links to ports throughout the World

Established direct air links to airports throughout the Caribbean, North America, and

Europe

Free trade agreements with most countries in the Americas.

2 Extracted from the Position Paper presented by Mark Myers


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Assuming that the approximately 100 acre Tinson Pen site is fully developed as a

distribution/logistics facility it is estimated that 2500 jobs can be created. Job creation in the

freezone could be in excess of 2500 in the early development.

Developing Montego Bay as the business, shopping and entertainment playground of the

Americas

Montego Bay The complete resort now has the tremendous opportunity to expand into the

Business & Entertainment Playground of the Americas provided that the vision is bought intoand the necessary components are put in place.

Montego Bay is ideally located and does have some of the components already in place. Inparticular some of the critical pieces of the puzzle include:

A modern airport that can act as a Hub for airlines traversing the Americas

Five star hotels that have some of the most beautiful sun sea and sand vistas in the

world

Some duty free shopping outlets already catering to overseas visitors

Interesting tours and attractions.Other components now being implemented or planned in preparation for implementation

include:

The road infrastructure between Falmouth and Montego Bay

The Bogue main road entering Montego Bay from the west

A stand-alone Convention Centre which will allow Montego Bay to attract the very

lucrative meetings and convention business

A recreational park which is planned for the Old Hospital Site on the Hip Strip along

Gloucester Avenue

In order to earn the title of the business and entertainment playground of the Americas however

there are some other components which need to be and can be put in place within three to five

years. These include:

A new town centre which includes Free Zone shopping, a new modern office complex

with high end shopping, dining and entertainment venues intermixed with office towers.

A link via rail from this area (which is adjacent to the Cruise Ship Pier) to the Appleton

Estate as a major attraction would cater to both cruise ship and land based visitors.


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Target corporations which are international market leaders

Importance of being a gateway

Clear cost advantage

Double taxation agreements

As part of the redevelopment of downtown Kingston, a Jamaican International Financial

Services Centre (JIFSC) could be situated in downtown Kingston, driving development in

general and jobs in particular. This would help satisfy the pressing need in Jamaica to generateemployment opportunities, particularly in the financial services field to offset the trend of

emigration of our highly educated graduates and financial experts.

Within this context the Job Creation and Investment Promotion Team developed the followingGoal, Objectives, Critical Success Factors, Barriers and Strategies.

Goal

To create a stable environment which provides opportunities for investments, both local and

foreign, thereby providing meaningful employment and wealth creation for all citizens.

Objectives

Increase the number of net start-up businesses by X% by year 20XX


Increase Jamaicas share of targeted global market to X% by 20XX

Increase absorption rate into local economy to X% by 20XX



Reduce the number of people below the poverty line to X% by 20XX.


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Critical Success Factors and Barriers

Critical Success factors Barriers

Investor friendly environment

Project Development (Execution)Expertise

Wide awareness of our value in the

targeted market places as aninvestment destination

Perception/reality of safety and peace


Access to capital

High energy costs

Perception of unavailability of qualifiedworkers and acceptable goods and

services

Poorly configured financial structure tosupport businesses

Strategies

The following strategic initiatives were identified towards achievement of the objectives for job

creation/investment promotion: Government at highest level to aggressively target specified local & international

investors to convince them as to the benefits of investing in Jamaica

Create a one-stop agency of government to process all government approvals within

90 days

Create an appropriate funding structure (venture capital fund) for financing business

start-up

Develop a Business to Business (B-B) marketing campaign to target specified targeted

sectors and companies

Create incentives for targeted sectors (tourism, ITC, International Financial Services,Music, Creative and Cultural Incentives, Free Zones & Port Services, Value Added

Agriculture)

Create tax incentives to attract both local and foreign investments to achieve agreed

national goals

Create a central directory of all goods and service providers (providers must be certified

by the appropriate authority)


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Implement legislative framework that will facilitate Jamaica becoming an Off Shore

financial centre

Priorities

The Job Creation/Investment Promotion team established the following priorities from the list of

strategic initiatives in the previous section:

1. Create a one-stop agency of government to process all government approvals within90 days

2. Implement legislative framework that will facilitate Jamaica becoming an Off Shore

financial centre

Job Creation and Investment Promotion Team

The Hon. Edmund Bartlett Minister of Tourism

The Hon Dr. Kenneth Baugh Minister of Foreign Affairs and Foreign Trade

The Hon. Clive Mullings Minist er of Mining and Telecommunications

The Hon. Mike Henry Minister of Transport & Works

The Hon. Olivia Babsy Grange Minister of Culture, Sports and Information

The Hon. Michael Stern Ministry of Commerce & Technology

Omar Azan Jamaica Manufacturers Association

Edward Chin-Mook Small Business Association of Jamaica

Peter Espeut C-CAM

Mrs. Camille Facey Cable & Wireless

Kavan Gayle JCTURobert Gregory Jamaica Trade & Invest

David Hall Digicel

Mark Hart Hart Group

Mrs. Audrey Marks Paymaster

Douglas MacMahon Tavistock Group


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Peter McConnell Worthy Park Estates

Clyde McKenzie Entertainment Advisory Board

Roy Miller Jamaica Tourist Board

Mark Myers Jamaica Chamber of Commerce

Milverton Reynolds Development Bank of Jamaica

Mrs. Michelle Rollins Palmyra

Robert Russell Tourism Product Development Company

Patrick Wong KCCIC

Christopher Zacca PSOJ

Facilitators: Clair-Ann Kennedy and Gordon Webster


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Balancing the budget / Debt reduction


Jamaicas indebtedness is a key and severe limiting factor in our collective desire to achieve

developed nation status by 2030. Balancing the countrys fiscal budget is a necessary structural

objective required for a credible debt reduction plan that includes measures to improve tax

revenues and contain expenditure growth. If we are to achieve developed nation status in justover two decades, it is imperative that the genesis begins in 2008.

Since independence, Jamaica has experienced fiscal deficits in 35 of its 44 years. Significant

factors influencing this indebtedness include:

The financial sector crisis in the 1990s and subsequent bail-out

The continuing build-up in our Net International Reserves since the mid-1990s

Capital intensive, loss-making entities under government control.

At the beginning of 2007, Jamaicas total debt was $926 billion with internal debt of $537 billion

and external debt of $389 billion. By the end of this fiscal year, 2007/08, Jamaicas national

indebtedness will likely top one trillion dollars J$1,000,000,000,000).

The international standard for measuring indebtedness is a countrys debt-to-GDP ratio.

Jamaicas debt-to-GDP at the beginning of 2007 was 136%. Accordingly, the success of our

debt reduction plan should be measured by the reduction of our debt-to-GDP ratio.

Jamaica is not alone in the magnitude and growth of its sovereign debt problems. Research

conducted indicates that 14 Caribbean nations are among the 30 most indebted countries, with

seven having the undesired distinction of falling in the Top 15 - Belize, Dominica, Grenada,

Guyana, Jamaica, Antigua/Barbuda and St. Kitts/Nevis. All these countries reported Debt-to-

GDP ratios exceeding 90%. Jamaica at 136% currently ranks 4th in the world behind Lebanon,

Japan and Seychelles. On the other hand, Trinidad and Barbados, both with investment grade

ratings for their debt instruments, have 2006 ratios of approx. 37% and 87% respectively.

3 Extracted from the Position Paper prepared by Donovan Perkins


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The negative impact of this growing indebtedness has manifested itself in several ways that

have had both short-term and long-term negative effects. The debt represents claims on current

and future tax receipts, thereby creating an environment characterised by:

Vulnerability to shocks

High domestic interest rates and the crowding out effect

Competition for scarce resources by GOJ ministries

Shift from real investments to financial investments by the private sector

Inevitable under-investment by GOJ in capital and social infrastructure leading to lowerproductivity levels and un-competitive businesses and industries

Resource constraints create short-term focus on month-to-month survival and less focus

on long term strategies to grow the economy

A lack of confidence in the future.

Key factors to achievement of debt reduction/developed nation status are:

1. Eliminate fiscal deficit2. Grow the economy

3. Expand the tax base

4. Re-focus Government on core functions

5. Treasury management

6. Re-build confidence

Within this context the Debt Reduction team developed the following Goal, Objectives, Critical

Success Factors, Barriers and Strategies.

Goal

To achieve a sustainable, balanced budget allowing the fiscal flexibility for growth-generating

public and private capital and social investment


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Objectives

Reduce the budget deficit as a % of GDP to.

Reduce total debt to GDP ratio to 92% in 5 years and 64% in 10 years

Reduce the ratio of debt service to total expenditure to 45% in 5 years and 34% in 10

years

Reduce recurrent expenditure as a % of revenue to 80% in 5 years and 70% in 10 years

Reduce debt in non-going concern public sectors bodies to.

Increase REAL per capita GDP to US$5,000 in 5 years and US$X,XXX in 10 years



Achieve cross- party political

consensus


Political will


Accountability


GDP growth




Budget process

Social dislocation

Corruption

Waste Infrastructure needs

Labour laws


Natural disasters


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Horizontal equity on the other hand is defined as the extent to which equally situated individuals

(individuals of broadly similar total incomes) pay approximately the same amount of tax. The

system of non-taxable allowances under the individual income tax is an example of one of the

existing features of the tax system which gives rise to horizontal inequity. Individuals earning

identical levels of wage income can suffer significantly different rates of tax depending upon

their ability to negotiate such allowances with their employers, or depending upon the particular

industry in which they happen to work.

The report on Taxation and Economic Efficiency in Jamaica presents a quantitative economic

model used to determine the macroeconomic impact of tax reforms in Jamaica.

The current results suggest that simply increasing rates under the existing tax structure willproduce a low tax yield and high efficiency costs. Although taxpayers are impacted in any

scenario, the tax burden can be mitigated by improving tax compliance and by eliminating

several pre-existing tax distortions.

Within this context the Tax Reform team developed the following Goal, Objectives, Critical

Success Factors, Barriers and Strategies.

Goal

A tax system which:

Promotes economic growth and acts as a catalyst for development

Is characterised by simplicity, equity and competitive rates

Is administered in an efficient and effective manner

Objectives

Increase compliance rate by 10% per annum to a targeted rate of 85%

Generate tax revenues from new investment relative to GDP from 20% to regionalbenchmark standard in 5 years

Increase regional competitiveness as measured by tax rates no higher than 70th

percentile of main Caricom partners in 5 years

Reduce and maintain ratio of tax administration cost to tax revenue at or below

international benchmark

Reduce dollar value of non-threshold exemptions annually.


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Achieve cross- party political

consensus

Ensure sufficient political andadministrative capacity

Engage in public education programmeto achieve buy-in

Request amendment of Common

External Tariff/World TradeOrganisation regime

Independent incentive study

Failure to negotiate bilateral

agreements

Failure to eliminate corruption

Inability to satisfy special interests

Risk of social instability

Absence of political will

Inability to obtain data to model

forecasts

Cost of implementing change process

Strategies

The following strategic initiatives were identified towards achievement of the objectives for tax

reform:

Develop a road map with a view to achieving national consensus on tax policy throughpublic consultation

Develop and implement amnesty and voluntary tax compliance to raise revenues

Determine technical and administrative resources required to achieve objectives and

negotiate bilateral agreements to allow change in tax policy

Update data and models from 2004 analysis to develop new tax policy for

implementation


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Land titling reform


In Jamaica, citizens without land titles fall into three broad categories:

Rural poor on family land

Owners through unregistered informal land agreements/transactions

Urban poor in informal settlements i.e. squatting

The rural land market is made up of 650,000 parcels of land of which 45% have no legal title

and many of the remaining 55% hold flawed titles mainly due to unrecorded arrangements.

Family Land

In many rural communities parcels of land are passed down within a family, generation to

generation, without formal registration of the title for the whole or the parts owned by individual

members. Land is jointly inherited by the next generation. Inheritors in turn do not lose theirrights through absence and resale is inhibited. In most cases, individual ownership is not in

dispute and only lacks formalisation. The wide scale lack of proper registered titles has served

as a hindrance to rural development.

Unregistered Transactions

There is a significant market where land is subdivided, bought and sold with little regard for the

legal formalities. This has been mainly due to the high demand for land coupled with the high

costs and slow process associated with formal transfer. Attempts have been made to reduce

transaction time and cost and there has been investment in modern technology but successive

state initiatives have had very limited success. The 2005 IDB report on LAMP (LandAdministration and Management Programme) estimated that the registration and titling of amodest property could amount to J$300,000.

5 Extracted from the Position Paper prepared by Wayne Chen


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Priorities

The Land Titling Reform team established the following priorities from the list of strategic

initiatives listed in the previous section:

1. Achieve stakeholder buy-in through

Consultation in policy development, and

Development and implementation of an effective programme to educate/informthe public of the benefits of the programmes

Deliverable: Containment of squatting and increase in new applications for titles

2. Enhance institutional capacity to facilitate development of land use database and to

develop inventory of all land.

Deliverable: Development of land use database and inventory of all land.

Land Titling Reform Team

Dr. The Hon. Christopher Tufton Minister of AgricultureDonovan Stanberry Ministry of Agriculture

Rowan Richards Ministry of Agriculture

Wayne Chen SuperPlus

Earl Jarrett PSOJ / Jamaica National Building Society

Earl Samuels National Housing Trust

Mrs Marjorie Campbell Urban Development Corporation

Mrs Elizabeth Stair National Land Agency

Mark Kerr-Jarrett Barnett Developers

Senator Norman Grant Jamaica Agricultural Society

Gerard Johnson IDB

Facilitator: Gwyneth Moore


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The first approach of upgrading skills levels, will be more likely to succeed if it is accompanied

by a wider, more comprehensive programme that seeks to upgrade, and better integrate

selected inner-city communities, particularly those in which murder hot spots lie. Ideally, any

such programme would also include de-garrisoning the inner cities. If this is agreed, than a

strategy for de-garrisoning should be elaborated and an implementation plan - with key

deliverables that allow for monitoring and reporting -- agreed to.

In addition, tackling the crime problem will also require an acceleration of the programme of

criminal justice reform. The programme of police reform is now over twelve years old, but the

results are at best mixed.

Better methods of bench-marking, evaluating and measuring progress, and of holding theinstitutional leaders to account, are needed. A similar need exists in the justice system. In 2007,

the Task Force report on reform of the justice system was completed. It should form the basis of

systematic corrective action.

Finally, there needs to be an effective move on corruption prevention and control. The available

data suggests that corruption is a major developmental problem in Jamaica, and as noted

above, it is a facilitator of high-end crime. Legislation is now being drafted that should empower

a new agency that would have responsibility for investigating corruption. This presents an

opportunity to ensure greater effectiveness. Better coordination of the various existing agencies

and improved resource allocations to these agencies are conditions for greater effectiveness.

Any new arrangement should solve these problems.

In summary, there are three main legs on which crime prevention and control should stand.

These are inner-city upgrading and integration (including targeted youth employment); reform;and corruption prevention and control. These should have as their primary targets organised

crime and the murder rate. With these in place, other supportive programmes such as

community-peace-building, preventing youth and school violence, and public order initiatives

that are designed to bring some discipline to the use of public spaces in the major towns, may

then have greater impact.

Within this context the Crime, Violence and Justice team developed the following Goal,

Objectives, Critical Success Factors, Barriers and Strategies.

Goal

To restore public confidence in institutions of justice and provide substantially improved securityfor all.


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Objectives

Reduce murder by at least 10% per year over 5 years

Increase clear up rate by at least 10% per year over 5 years

Reduce time to settlement by 10% within 5 years

Eliminate police extra-judicial killing within 5 years

Reduce crime against person by at least 30% per year

Clear backlog of cases in justice system in 3 years.



Effective and accountable police force

Accessible, efficient and responsive

justice system





Libel laws

Management capacity of the police

force

Strategies

The following strategic initiatives were identified towards achievement of the objectives for

crime, violence and justice:

Implement appropriate recommendations of the McMillan report with emphasis on:

o Raising of standards for recruitment and training, professional development and

remuneration of the police force

o Introduction of new legislation to establish mechanism for the removal of

unprofessional police officers


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Establish an oversight committee comprised of members of civil society that will

communicate with the Ministry of National Security and Justice and assist with the

implementation of the Crime Plan

The Ministry of Education and the Ministry of National Security to collaborate on youthtraining and social programs e.g. expansion of Cadet and Scouting in schools and

churches, introduction of national parenting programs, monitoring of music, movies and

television programs, compulsory military training

Expand rehabilitation programs for offenders

Make the court system more efficient through the reduction of offenses which require

court appearances

Establish national finger print register.

Priorities

The Crime, Violence and Justice team established the following priorities from the list of


1. Implement appropriate recommendations of the McMillan report with emphasis on: Raising of standards for recruitment and training, professional development &

remuneration of the police force

Introduction of new legislation to establish mechanism for the removal of

unprofessional police officers

2. Establish an oversight committee comprised of members of civil society that will

communicate with the Ministry of National Security and Justice and assist with the

implementation of the Crime Plan.


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Crime, Violence and Justice Team

The Hon. Derrick Smith Minister of National Security

The Hon. Oliver Clarke OJ Gleaner Company of Jamaica

Ambassador Jeremy Creswell British High Commission

John Rapley CaPRI

Fredrick Moe Montego Bay Developer

Everton Hunter National Water Commission

Damian Obiglio Jamaica Public Service

Gilbert Scott Ministry of National Security

Mrs. Susan Leslie-Bailey OPM

Mrs. Lois Grant OPM

Wesley Hughes Planning Institute of Jamaica

Facilitator: Michelle Clarke-Brown


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Education and training


It is argued that economic growth and development must be built on the platform of education

and skills training. This cannot be overemphasised, particularly in the climate of globalization

which enshrines education in numerous commitments and international and regional tradeagreements. There is a thrust toward Education For All (EFA), as captured by The Millennium

Development Goals, The General Agreement on Trade in Services (GATS) and the Caricom

Single Market and Economy (CSME).

Over the last decade, international development and cooperation have seen education as the

linchpin to achievement of sustainable development and poverty reduction. Closer to home, ourCaribbean neighbours are transforming their education systems, e.g. Barbados and Trinidad,

within the ambit of a CSME. With unrestricted movement of goods, services, skills and capital

throughout the region, it is hoped that there will be unprecedented opportunities for new

businesses and job creation.

The research is unequivocal: education and training can lead to higher productivity and

improved quality of goods and services. To this end, they must be deemed crucial factors to

enhancing international competitiveness and fostering a climate conducive to strong and

sustained economic growth.

Since independence, there has been almost a frenzied movement to reform the education

system with plans and programmes directed towards a well intentioned Education For ALL

outcome. In this regard a number of major initiatives have been carried out including:

The Programme for the Advancement of Early Childhood Education (PACE) 1980s

GOJ Primary Text Book Programme (PTP)

GOJ/ UK-ODA Secondary Schools Text Book Project

The School Feeding Programme (SFP)

The GOJ/IBRD Reform of Secondary Education (ROSE)

7 Extracted from the Position Paper prepared by Audrey Hinchcliffe


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The five year plan, 1990-1995 was followed by the new five year education plan 1995-2000.

Both plans did not reap the desired benefits as high absenteeism practically among boys, linked

to socio-economic factors devalued the school system, leading to other interventions such as:

The GOJ/DFID Jamaica All Age School Project (PEIP) (Emphasis on community/

school participation) 2000-2003.

GOJ/IDB Primary Education Improved Project (PEIP) (National Assessment Programmereplaced Common Entrance Examination).

Grade Six Achievement Test (GSAT) (to place grade six completers into grade seven

of secondary and comprehensive schools).

The GOJ/USAID New Horizons for Primary Schools (to increase level of literacy andnumeracy of students in 72 selected primary schools throughout the country).

Despite all these interventions the education system continues to be dysfunctional. The newest

initiatives are captured in the Education Transformation Task Force Report (2004) and the Early

Childhood Education Development Report. And with the new administrations LEARN proposal,

it is hoped that real gains accrue from revivified effort.

Investment in education is important, enabling the development of each persons full potential

and consequently creating a competitive workforce. Education is therefore a social indicator of acountrys economic development and the stock and quality of its human capital.

The private sector being in the business of investment sees human capital no crucial to

maximizing returns. Our prime concern therefore, is the calibre of output from the education

system. Do they have the requisite life skills, technical and vocational skills, knowledge of

organizational behavior, apt communication skills, ability to think critically, resourceful andinnovative? As a goal, the education system and skills training centres must seek to reorient

students to modern and relevant technology that facilitates the production of high quality service

and goods.

To cite the Labour Market and Productivity Task Force the 2030 vision Make Jamaica the

place of choice to live, raise families, work and do business and proposes its vision as Alabour market with a trained, educated, productive workforce attractive to quality job creating

investments, operating in a manner that is efficient, harmonious and mutually beneficial,

sustaining a prosperous society and economy. The sector plan seeks to attain this vision

through inter alia:

A highly qualified workforce

Higher levels of human and social formation and trust;

Full and satisfying employment in a thriving economy; and


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Innovative globally competitive enterprises.

If education and training for transformation and competitiveness is to be achieved even partially

over the next five years, some provocative questions will first have to be raised and discussed.

The purpose of which is not to bemoan previous attempts at advancing the trajectory of the

education sector but to plot a new course that attains the results we all desire for our society.

The National Planning Summit is directed to questions on the key issues and challenges set out

below:

What is the purpose of education and who is the target group?

What are the targets that explicate transformation?

What does the workplace require from the education system?

Should the education system produce the skills required by the workplace or should

organizations take responsibility for providing workplace-specific skills?

Within this context the Education and Training team developed the following Goal, Objectives,

Critical Success Factors, Barriers and Strategies.

Goal

Achieve equity, quality and accountability in the education and training system, and full

alignment with national development goals.

Objectives

X% of primary school cohorts achieving grade 4 mastery in literacy and numeracy by

20XX

X% of secondary school cohorts graduating with X passes in secondary school examsincluding Mathematics and English

Increase % of Jamaican workforce with workforce training and certification


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Mrs. Maria Jones Ministry of Education

Aldain Reid Young Entrepreneur Association

Professor Neville Ying UWI MSB

Mrs. Sandra Glasgow PSOJ

Facilitators: Darren Singh and Marsha Caballero-Stewart


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Governance / Reducing Bureaucracy


The Doing Business Project of the World Bank/International Finance Corporation (IFC) ranks

175 economies on the ease of doing business. The index means that the regulatory

environment is conducive to the operation of business. With first place being the best, Jamaicaranks at number 63 in both the 2007 and 2008 report.

The report tracks a set of regulatory indicators related to business start-up, operations, trade,

payment of taxes, and closure, by measuring the time and cost associated with various

government requirements. For instance, the study measures the number of procedures

required and the time taken and the minimum capital needed for starting a business. ForJamaica, this category was the best of the 10 categories measured across all countries. Here

Jamaica ranked number 9 in 2007. This presents a better showing than many developed

countries.

Alternatively, paying taxes was the worst category for Jamaica, placing it at number 170. This

is largely due to the high percentage of gross profit paid in taxes, 49.4 percent, and the number

of tax payments required within a year (72).

The matter of licensing is equally of concern. In this category, Jamaica ranked at number 74 for

the period of both the 2007 and 2008 index.

In addition to much anecdotal evidence which can demonstrate many of the implications which

challenge growth in an environment bogged down in bureaucracy, a recent Inter-American

Development Bank (IDB) study also supports these findings. Research analysts at the IDB

however offer an important and perhaps insightful perspective. Bureaucracy, they suggest,impose high transaction costs on business, leading to informality and anemic growth in the

formal economic sector. The IDB had estimated that the informal sector accounts for about 40

per cent of the country's economic activity. According to the IDB's report, Jamaicans invest a

huge amount of time and energy in tax avoidance and keeping their businesses in this grey

zone.

8 Extracted from the Position Paper prepared by Anthony Chang


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Against this backdrop, the IDB has recommended, among other things, the reform of the tax

and financial systems, a flattening of bureaucracy and a modernization of the legal

arrangements. These prescriptions are neither new nor even radical, having been repeatedly

proposed in many quarters. Our governments have often declared themselves to be acting on

them.

What is clear, and highlighted by the IDB study, is that with the public sector accounting for 39

per cent of GDP and the grey or informal economy accounting for an estimated 40 per cent of

the country's output, real expansion is being stifled by a pervasive bureaucracy. The victims are

jobs and the creation of wealth. An appreciation of this should be a powerful incentive to

change.

Reducing bureaucracy is one of the ways by which Jamaica can achieve maximization of the

countrys economic potential.

There are two prongs to reducing bureaucracy: one is to reduce the practice of bureaucracy

the rules, regulations and processes - by disbanding these strangulating rules and regulations.

The other is to reduce and or change the behavior of practitioners of bureaucracy.

Reducing bureaucratic practice is difficult because of the vested interests involved. A UK

example involved cutting of departmental budgets so Ministers had no alternative but to reduce

staff. A freeze on recruitment caused numbers to drop dramatically because wastage was quitehigh and a significant number of staff were on fixed term contracts.

A starting point is a thorough top-level review of the regulatory environment by working through

the statutes, and target legislation that mitigate against a successful economy. Jamaica has

made significant progress in divorcing policy from service-provision especially by way ofexecutive agencies and divestment from matters in which the Government ought not to be

involved.

Red Tape impacts significantly on SMEs and start-up entrepreneurs. This is the pivotal group

which should be targeted as a catalyst for growth. If Jamaica is to experience further economic

growth through the creation of jobs, an environment in which SMEs and start-up entrepreneurs

are encouraged must prevail. Larger companies tend to have the resources and the accesses tocontacts to assist with overcoming the obstacles presented by red tape, and sometimes red

tape acts as a barrier to entry.


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In a 2007 World Bank report, evidence suggests that the top 20 countries in the world regulate,

but they do so in less costly and less burdensome ways. The World Bank analysis leads to

three noteworthy findings:

Business in poorer countries (defined as low and lower middle income economies under

World Bank income classifications) faces much larger regulatory burdens than those in

rich countries. They face three times the administrative costs, and nearly twice as many

bureaucratic procedures and delays associated with them.

Heavy regulation excludes the poor from doing business. In poorer economies 40% ofthe economy is informal. Women, young and skilled workers are hurt the most. This has

a direct effect on job growth, and crime.

The payoffs from reform appear large. A hypothetical improvement to the top quartile of

countries on the ease of doing business is associated with up to 2 percentage points

more annual economic growth.

According to the World Bank, ease of doing business is associated with more growth, and

simple business regulations translate to more human development i.e. job creation, lessening of

corruptive practices, etc.

Within this context the Governance/Reducing Bureaucracy team developed the following Goal,

Objectives, Critical Success Factors, Barriers and Strategies.

Goal

Public and private collaboration for a citizen-friendly country where there is transparency,

accountability, respect for the law and opportunities are available to all.

Objectives

Increase ranking in Doing Business in Jamaica by x% per annum

Increase satisfaction levels of citizens through citizen surveys published periodically

Reduce crime and violence by X% over X years

Improve court case disposal rate by X% per year


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Cost effective, efficient client-centered

public service supported by an

integrated Information Communication

Technology (ICT) framework

Coherent policy framework supported

by appropriate legislative, regulatory

and institutional mechanisms

Rigorous and consistent enforcement

of the law.


Vested interests in maintaining thestatus quo


Resources (domination of debt burden)

Energy costs


Strategies

The following strategic initiatives were identified towards achievement of the objectives for

governance/reducing bureaucracy:

Target strategic high impact and/or potential self financing public agencies formodernization

Rationalise public sector agencies to eliminate duplication

Dedicate a team to review existing legislation in order to rationalise and modernise the

legislative framework

Develop and pursue a risk-based management approach to public sector governance

Employ a zero tolerance approach to enforcement of laws and regulations to rebuildtrust and foster discipline.

Report all waivers and special favours granted by Ministers to Parliament and publish

the report


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Priorities

The Governance/Reducing Bureaucracy team established the following priorities from the list of


1. Target strategic high impact and/or potential self financing public agencies for

modernization.

2. Report all waivers and special favours granted by Ministers to Parliament and publish

the report.

3. Develop and pursue a risk based management approach to public sector governance.

Deliverable: Modernised, high impact public agencies, operated with greater efficiency and cost

effectiveness and dedicated, appropriate support from the Ministry of the Public Service and theCabinet Office.

Governance/Reducing Bureaucracy Team

The Hon. Daryl Vaz Minister of State, Office of the Prime Minister

Dr The Hon. Carlton Davis OJ Cabinet Office

Mrs Hilary Alexander Cabinet Office

Miss Onika Miller Cabinet Office

Mrs Patricia McCalla Office of the Prime Minister

Dr Leary Myers National Environment & Planning Agency

Douglas Orane GraceKennedy Limited

The Hon. Oliver Clarke OJ Gleaner Company of Jamaica

Michael Bernard Shipping Association of Jamaica

Dr. Jean Dixon Ministry of Industry and Commerce

Facilitator: Tony Lewars


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First Name Surname Entity Represented

Dr. Wesley Hughes Planning Institute of Jamaica

Michael Fairbanks Planning Institute of Jamaica

Grace Munroe Planning Institute of Jamaica

Everton Hunter National Water Commission

Robert Russell Tourism Product Development Company

Leary Myers National Environment & Planning AgencyDamian Obiglio Jamaica Public Service

Earl Samuels National Housing Trust

Roy Miller Jamaica Tourist Board

Elizabeth Stair National Land Agency

Winston Watson Petrojam

Milverton Reynolds Development Bank of Jamaica

Donald Foster HEART Trust / NTA

Patrick Wong Kingston City Centre Improvement Company

Francis Kennedy Kingston City Centre Improvement Company

Jeremy Cresswell British High Commission

Denis Kingsley Canadian High CommissionMarco Mazzochi- Alemanni EC Delegation

Rosaura Rueda Mexican Embassy

Jesus Silva Spanish Embassy

Brenda Lagrange-Johnson Ambassador - United States of America

Christopher Zacca Private Sector Organisation of Jamaica

Earl Jarrett Private Sector Organisation of Jamaica

Richard Chen Private Sector Organisation of Jamaica

Sandra Glasgow Private Sector Organisation of Jamaica

Beverley Lopez Private Sector Organisation of Jamaica

William McConnell Private Sector Organisation of Jamaica

Mark McKenzie Private Sector Organisation of JamaicaJoe Taffe Private Sector Organisation of Jamaica

Keith Collister Private Sector Organisation of Jamaica

Godfrey Dyer Private Sector Organisation of Jamaica

Ryland Campbell Capital & Credit Group

Norman Grant Jamaica Agricultural Society

Omar Azan Jamaica Manufacturers Association

Michael Bernard Shipping Association of Jamaica

Edward Chin- Mook Small Business Association of Jamaica


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Wayne Cummings Jamaica Hotel and Tourist Association

Audrey Hinchcliffe Jamaica Employers Federation

Patrick Hylton Jamaica Bankers Association

Mark Myers Jamaica Chamber of Commerce

Gassan Azan Bascho

Barry Bonitto Bacam Industries LimitedMilton Brady First Caribbean Bank

Anthony Chang Mussons

Wayne Chen Super Plus

Oliver Clarke Gleaner

Camille Facey Cable & Wireless Jamaica

Stephen Facey Pan Jamaica Investment Trust Limited

David Hall Digicel

Jeffery Hall Jamaica Producers Group

Mark Hart Hart Group

Mark Kerr-Jarrett Barnett Developers

Edward Khoury Jamaica Observer Dennis Lalor Insurance Company of the West Indies

Chris Levy Jamaica Broilers

Lori-Ann Lyn Caribbean Broilers

Noel Lyons Jamaica Money Market Brokers

Audrey Marks Paymaster

Douglas MacMahon Tavistock Group

Andrew Mahfood WISYNCO

Joseph Matalon ICD

Peter McConnell Worthy Park Estates

Clyde McKenzie Entertainment Advisory Board

Frederick Moe Montego Bay Developer Ian Moore Adjoined Consulting

Earl Moore Guardian Life

Douglas Orane GraceKennedy

Donovan Perkins Pan Caribbean Merchant Bank

Richard Powell Victoria Mutual Building Society

Pauline Reid Montego Bay Chamber of Commerce

Aldain Reid Young Entrepreneurs Association

Michelle Rollins Palmyra


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Gordon Stewart Sandals Group

Peter Young Cayman Islands

Peter Espuet Caribbean Coastal Area Management Foundation

Kavan Gayle Jamaica Confederation of Trade Unions

Gordon Shirley University of the West Indies

Prof. Neville Ying University of the West IndiesDr. John Rapley University of the West Indies

Stuart Hart Cornell University

Kingsley Thomas Office of National Reconstruction

Dora Curea Inter-American Development Bank

Jerry Johnson Inter-American Development Bank

Michael Wilkinson PricewaterhouseCoopers

William Olsen PricewaterhouseCoopers

Kevin Bandoian PricewaterhouseCoopers

Everton McDonald PricewaterhouseCoopers

Brian Denning PricewaterhouseCoopers

John Lee PricewaterhouseCoopersTony Lewars PricewaterhouseCoopers

Alok Jain PricewaterhouseCoopers

Gordon Webster PricewaterhouseCoopers

Gwyneth Moore PricewaterhouseCoopers

Adrian Tait PricewaterhouseCoopers

Wilfred Baghaloo PricewaterhouseCoopers

Clair-Ann Kennedy PricewaterhouseCoopers

Darren Singh PricewaterhouseCoopers

Marsha Caballero PricewaterhouseCoopers

Michelle Clarke-Brown PricewaterhouseCoopers

Arlene Nelson Office of the Prime MinisterOrlan Simpson Office of the Prime Minister

Delano Seiveright Office of the Prime Minister

Dorothy Whyte Office of the Prime Minister

Pat Reid Office of the Prime Minister

Susan Leslie-Bailey Office of the Prime Minist

Documents

National Planning Summit 2007