Public-Private Partnerships Critical for Growth – Minister Shaw

Minister of Finance and the Public Service, Hon. Audley Shaw, is emphasising the importance of partnerships between the public and private sectors for the economic growth and prosperity of the countries in the region.

Such collaboration, he said, is particularly critical in undertaking structural and sectoral reforms in a challenging fiscal environment.

“When we have to undertake tough reforms, which may take time to bear fruit, we need to coalesce around a shared vision and shared values,” the Minister pointed out.

He was addressing the opening ceremony of the Caribbean Development Bank’s (CDB) Board of Governors meeting at the Montego Bay Convention Centre in St. James on May 18.

The Minister noted that the fiscal consolidation needed to resolve the debt problems of Caribbean countries requires that domestic and regional private sectors are increasingly empowered to drive robust growth.

“In Jamaica, I have spoken passionately about the need for partnerships for productivity and prosperity. We have to marshal our stakeholders around their roles and contributions towards a common objective and we have to pledge our collective commitment,” he pointed out.

He said that Jamaica looks forward to working with CDB “and our Caribbean brothers to forge the partnerships necessary for growth, poverty alleviation and development.”

Meanwhile, Minister Shaw said the United Kingdom Caribbean Infrastructure Fund (UK-CIF), administered by the CDB, will be critical in protecting the region against the impacts of natural disasters.

He noted that access to climate change and energy sector financing at concessionary rates is fundamental to supporting the deep structural and policy changes required in the region.

“Often, we will find that the social rate of return on these projects, especially in small economies such as ours here in the Caribbean, far exceed the private economic rate of return and this reality compels us to address the issue of concessional financing squarely in the face. The UK-CIF is critical in this regard,” he pointed out.

Minister Shaw expressed confidence that the board, management and staff of the CDB will find the appropriate blend of financing and the efficient execution mechanisms to maximise the benefits of the Fund.

UK Prime Minister, David Cameron, during his visit to Jamaica in September 2015, announced that his government would invest £300 million in vital new infrastructure such as roads, bridges and ports to help drive economic growth and development across the Caribbean region.

Mr. Shaw noted that the support is critical as many of the region’s economies are vulnerable to the impacts of climate change but have graduated out of many concessional financing channels of multilateral and bilateral lending.