Jamaica received US$2.1 billion in Official Development Assistance (ODA) from International Development Partners (IDP) to advance the Government’s strategic objectives and priorities under the 2018-2021 Medium Term Socio-Economic Policy Framework (MTF).
As contained in the Planning Institute of Jamaica’s (PIOJ) 2019 Economic and Social Survey, the provision was part of an overall US$2.2 billion, which included counterpart funding by the Government, to finance new and ongoing projects.
The MTF is the implementation framework that facilitates stage-by-stage operationalisation of the long-term National Development Plan – Vision 2030 Jamaica, which aims to position the island to achieve developed country status and, in the process, make Jamaica the place of choice to live, work, raise families and do business.
The funding support comprised loans of US$1.5 billion and grants amounting to US$595.3 million, with disbursements totaling US$273.3 million.
As stated in the Survey, bilateral partners were the largest providers with 48.4 per cent, with multilateral financing institutions accounting for the second highest provision of 47.5 per cent.
The remaining inputs came from Multilateral Technical Cooperation (MTC) agencies – 2.1 per cent; Environment and Climate Change Funds – 1.8 per cent; and Multi-donor Funds – 0.2 per cent.
The five largest co-operation programmes with Jamaica, by total resources, were: the People’s Republic of China (PRC) – US$750.6 million; the Inter-American Development Bank (IDB) – US$597.5 million; the World Bank – US$232 million; the European Union (EU) – US143.3 million; and the United Kingdom – US$100.9 million.
Meanwhile, new ODA funding for 2015-2019 totalled approximately US$1.8 million.
According to the Survey, loans and grants amounted to some US$1.3 billion and US$491 million, respectively.
The document indicated that approval of new ODA declined over the period, with the exception of 2017, when the Government and PRC signed a US$326.4 million loan agreement for the Southern Coastal Highway Improvement Project (SCHIP).
Additionally, the Government and IDB signed a US$160 million loan for public sector reform, of which US$110 million was budget support.
New ODA over the period supported Vision 2030 Jamaica development goals as follows: Goal 1: ‘Jamaica is Empowered to Achieve its Fullest Potential’ – US$52 billion; Goal 2: ‘The Jamaican Society is Secure, Cohesive and Just’ – US$41.3 billion; Goal 3: ‘Jamaica’s Economy is Prosperous’ – US$134.2 billion; and Goal 4: ‘Jamaica has a Healthy Natural Environment’ – US$15.1 billion.
The Survey indicated that the provision for Goal 3 equated to 56 per cent of the allocation, and focused primarily on budget support to strengthen financial management and public sector transformation.
The funds also supported the promotion of productive investments in micro, small and medium-size enterprises (MSMEs), and investment loans for road infrastructure development, strengthening of energy management, and improving markets for the agriculture and tourism sectors.
Grants were also provided for the development of irrigation networks and the energy sector.
The Survey indicated that the decline in newly approved ODA support from 2015-2019, mainly resulted from the Government’s fiscal consolidation and debt management policies, aimed at reducing borrowing and building economic independence over time.