IDB Commits to Supporting Growth in Jamaica

Inter-American Development Bank (IDB) President, Luis Alberto Moreno, has pledged the institution’s commitment to working with the Government to achieve sustainable, long-term, high economic growth for Jamaica.

This, through the implementation of the country’s Economic Reform Programme (ERP), which is supported by an International Monetary Fund (IMF) four-year Extended Fund Facility (EFF).

“Jamaica has been (occupying) the low end of growth… (and)…this is something that cannot persist. I have had a chance…to look at many of the things that are happening (under the ERP)…and…I (am)…encouraged. So…you will have our support, not (only) for tomorrow, not (only) for the day after tomorrow, but for the next generation,” he stated.

The IDB President gave this undertaking while addressing a special private sector luncheon at Knutsford Court Hotel, New Kingston, on Friday (December 19), at which he was guest speaker.

Mr. Moreno commended the administration for entering into “a very tough programme” with the IMF which, he said, has enabled the IDB, World Bank, and Jamaica’s other international partners “to (support) this effort.”

In noting that the IDB’s commitment to Jamaica amounts to over US$1.3 billion, Mr. Moreno said this, coupled with the planned construction of a new US$13 million country office building in Jamaica, indicates the institution’s commitment to contributing to the country sustained economic success.

The IDB President said, however, that realization of this goal also requires strong public and private sector partnership.

“(This) is going to depend on all of you…in how you can enrich the public-private dialogue that can allow Jamaica to really get serious about growth. You cannot be a country (of) the future if growth doesn’t come in a sustainable and determined manner.

You must want that success far more than anybody (because), at the end of the day, growth is the result of good public-private partnership,” he stated.

In his remarks, Finance and Planning Minister, Dr. the Hon. Peter Phillips, acknowledged that the ERP is “challenging” but maintained that its implementation “is a necessary process to the growth and job creation we seek.”

Highlighting the public and private sector stakeholder support for the programme, the Minister contended that “our unwavering obligation to their sacrifice requires that we complete the programme in order to reap the benefits, which it heralds.”

He noted that “the sacrifices are beginning to bear fruit,” pointing out that “our progress has not gone unnoticed by the international community.”

“Jamaica’s return to the international capital market during the summer; the positive outlook by Standard and Poor’s rating agency; Jamaica’s improved ratings on both the global competitiveness and doing business survey; and the increase in Foreign Direct Investment (FDI) flows, are a few of the positive outcomes seen in the first 18 months of the programme,” the Finance Minister outlined.

He said with the administration creating what he described as a “strong foundation” through fiscal consolidation, structural reform, and financial prudence, “the priority is now on growth and job creation and, I daresay, the prospects look good.”

“The progress made, thus far, must not only be sustained, but must be amplified. It will depend on the support of…the state, the private sector, (and) the international community, to mention but a few,” he added.

The luncheon, formed part of the itinerary for Mr. Moreno’s two-day visit from December 18 to 19, which coincided with commemoration of the IDB’s 45 years of partnership with Jamaica.