IDB Impact Vo1 No 1 by IDB

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CELEBRATING 50 YEARS OF PARTNERSHIP WITH JAMAICA

impact Vol. 1 No. 1 • April 2021

WELCOMING THE ELECTRIC CAR ERA IDB & EU IMPROVE GOJ OPERATIONS SUPPORTING THE CREATIVE HUB CELEBRATING WORLD WATER DAY

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NEWS & & VIEWS VIEWS NEWS VOLUME 1 NUMBER 1 • APRIL 2021

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VOLUME 1 NUMBER 1 • APRIL 2021

Stronger Together, Stronger Tomorrow

Ushering In the Electric Auto

IDB Impact is a publication of the IDB Country Office Jamaica, the regional hub for the Caribbean. Contact: (T) (876) 764-0815 (F) (876) 764-0852/(876) 764-0853 E-mail: IDBJamaica@iadb.org https://www.iadb.org/en/countries/jamaica/overview CONTRIBUTORS Gerard Alleng Climate Change Senior Specialist Evan Cayetano Water and Sanitation Lead Specialist Yuri Chakalal Natural Disaster & Risk Mgmt. Specialist Alison Christie Binger Communications Consultant (Contributor and Editor) Lorenzo Escondeur Chief of Operations Giovanni Gavin Communications Consultant Intern Michael A. Grant Design & Layout Oliver Hill Consultant Cynthia Hobbs Education Lead Specialist Jodi Holung Consultant Adriana La Valley (Former Chief of Operations) Richard Martinez Vice President of Countries Malaika Masson Senior Energy Specialist Henry Mooney Research Economics Advisor Natasha Richardson IDB Group Regional Private Sector Coordinator. David Rosenblatt Regional Economic Advisor Terry-Ann Segree Private Finance Operations Senior Specialist Francesco De Simone State Modernisation Senior Specialist Therese Turner-Jones General Manager Caribbean Country Group & Country Representative Jamaica Marianne Van Steen, Ambassador of the European Union to Jamaica

20 14 Support for Transparency & Accountability in Government

Focus on Early Childhood Education

Inside From the Country Manager News

3 4-13

Support for Education Spans 50 Years

Lorenzo Escondeur’s Digital Vision.

Driving the E-Auto Agenda

PSEP – Towards A More Effective, Transparent & Accountable Jamaican Government

US$1.25M for Creative Entrepreneurs

4 Ways IDB Invest Engage the Public Sector

Kingston Success Stories

Public Sector Efficiency Programme wins PEU Challenge Managing the Yallahs Watershed

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ABOUT THE IDB The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cuttingedge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

No part of this publication may be reproduced without the express permission of the IDB.

The prospects for a return to pre-crisis levels of tourism remain uncertain, but it is hoped that the industry will fully rebound by 2022, once vaccines have been made available to most citizens of both Jamaica and source countries.

Therese Turner Jones is IDB General Manager, Country Department Caribbean Group

amaica is one of the most tourism-dependent economies in the world and has been severely affected by the COVID-19 crisis. The shock to growth has been substantial, particularly given that nearly a third of both total output and employment are linked to the tourism sector. The most recent growth projections envision a GDP contraction of about 10 to 12 percent in 2020.

FEATURE

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from the Country Manager

The shock to growth has affected fiscal and debt outcomes, but the government was in a strong position entering the crisis, which has helped to dampen its financial implications. Updated fiscal projections envision a primary fiscal surplus of about 3 percent of GDP, which compares well to other countries in the region, and points to the availability of additional buffers should revenue outturns deteriorate relative to current expectations. Resources have also been made available by the IMF, which are currently being used as supplemental international reserves, but could be made available for government financing if needed. Against this backdrop, the exchange rate has remained broadly stable, and the Bank of Jamaica has not undertaken any large or sustained interventions in the foreign exchange market. THE NEXT 5 YEARS – COULD BE ONE OF THE MOST CONSEQUENTIAL PERIODS FOR JAMAICA’S ECONOMY AND DEVELOPMENT.

The IDB’s country strategy is due for an update in 2021, a process that takes place every five years. In many respects, this new fiveyear horizon may be one of the most consequential periods for Jamaica’s economic and development. For the past few decades, Jamaica’s government has had to focus much of its time, energy, and resources on the immediate imperatives of crisis management. Successive crises have held the country back, including by destabilizing the economy and limiting fiscal space. This decade can be different. After seven years of tremendous effort and resolve on the part of successive administrations from across the political spectrum, Jamaica successfully graduated from IMF adjustment programs in late 2019. Though COVID represents a setback in the short run, this external shock will dissipate, and the completed and ongoing institutional reforms of the government and economic policies will help to provide Jamaica with unprecedented fiscal flexibility in the years to come. 3

The challenge for Jamaica and its partners like the IDB will be to ensure that this fiscal space is deployed to high value-added investments in the country’s future. Our country strategy will help to guide this process in areas where the IDB can most effectively support Jamaica. These include continued reform of the public sector, through digitalization of processes and services, the consolidation of functions, and improvements in resource management. The IDB will help improve social services, including in critical areas like health and education that can benefit people most directly, while also improving productivity over the long run. Continued progress with legislative and institutional reforms, aimed at improving economic management, facilitating investment, and improving the business climate. Supporting infrastructure investment, including in areas that have long suffered from underinvestment, such as transportation, water and sanitation, rural access, and shipping. This is doubly important for Jamaica given the country’s susceptibility to natural disasters and climate change— investing in resilient and sustainable infrastructure will make the country less prone to economic shocks, while making it more productive and competitive over the long run. Another key area of focus will be investment in the energy sector, to ensure that renewable and efficient technologies can improve access and reduce costs for users, to improve living standards and increase productivity for the corporate sector. Enhancing connectivity, education, the green and blue economies are areas that we also aim to give greater focus on in the future.

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key areas: • Fast tracking vaccination response • Promoting economic growth, employment, and job creation, • Integration into international markets, • Strengthening entrepreneurial ecosystems and • Promoting greater inclusion for women to gain increased access to financial markets. These are the focus of our forthcoming strategy for Jamaica, and we look forward to many more years of close collaboration and partnership with Jamaica’s government and citizens. Stronger together ... stronger tomorrow.

CELEBRATING A STELLAR TEAM IDB

VISION 2025 JAMAICA REINVEST IN WELCOMES THE AMERICAS REINA MEJÍA, • Additionally, in the wake of the recent annual meeting of the Bank IDB’S NEW and IDB Invest in Colombia the Bank has unveiled its vision 2025 EXECUTIVE under the theme “Reinvest in the Americas.” The Bank intends to VICE-PRESIDENT play a stronger role in the following

DB’s new Executive Vice President, Reina Mejía, received a warm Jamaican welcome in a virtual whirlwind tour and visit at the end of January 2021. Ms. Mejia joins the Bank from Citibank Honduras. The IDB’s Vice President for Countries, Richard Martinez, and the new Vice President for Sectors, Benigno López also participated in the exchange, as did the Caribbean Executive Director on the Board of Directors, Brian Langrin. Therese Turner-Jones, the General Manager for the Caribbean Country Department, explained the dual role of the Kingston office: the country office serving Jamaica, and a regional hub serving the entire Caribbean Country Department. In that context, Bank staff provided overviews

Reina Mejia is IDB’s new Executive Vice President

of the economy of both the region and Jamaica, the operational work program and organization of the office and the role of whole IDB Group – including the private sector wing IDB Invest and the innovation incubator IDB Lab – in Jamaica and the Caribbean. The Jamaica office ensured that “visiting” executives received an enticing taste of Jamaican culture, albeit virtually. The team presented a virtual video tour of the regional office and multiple presentations highlighting the history, geography, people, and culture of Jamaica. Ms Mejia commended the team for its leadership role in the Bank for its pioneering collaboration innovation (Matchpoint) which afford team members the opportunity to expand their network, grow and optimize their skills over a wide variety of projects, operations, and communications. A keen listener Ms Mejia indicated that her door is always open, and the team is welcome to make suggestions and have discussions to make for the highest possible standards of service excellence with partners.

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Richard Martinez has been IDB Vice President for Countries since November, 2020.

“What a wonderful introduction it has been so far! I am excited to learn more about this beautiful island and the important partnership between Jamaica and the Inter-American Development Bank (IDB). The many success stories over the years prove the strength of this partnership and serve as an example to all of us in the Bank. Just think about it. Everything we do is focused on improving lives and there are so many people whose lives have been impacted thanks to our work over five decades in Jamaica.

A REGIONAL HUB & FRONT OFFICE That is what makes Country Office Jamaica (CJA) a great place for all of us to take a closer look at how the Bank operates at country level. CCB believes that the “front offices” are where the clients are and so your country offices are all front offices. And with Therese also seated here along with advisors, sector specialists and representatives of IDB Lab and IDB Invest this is truly a regional hub of the IDB Group. This is a good moment to recognize the leadership of the Caribbean Department and its hub in Jamaica. Therese, you, and your managers have created a stellar team. Within the IDB, you are recognized as leaders in innovation, operations management, client relations, research and knowledge, and communications. This reputation has been strengthened by things like MatchPoint (a skills marketplace), your early adaptation to Salesforce and your consistent creation of relevant and timely knowledge products for the Caribbean. You are listening to the client, understanding their needs, and responding with speed and coordination. Your agility and efficiency are inspiring, and I know that you are already applying these qualities to the strategic objective of making

For some, our impact has been indirect, felt in stable food prices due to macro-economic reform, for others it has been direct, through tertiary scholarships or a place in pre-school for our child. And you continue to improve the lives of the people of Jamaica and the Caribbean because of strong leadership, innovation, and agility.

the Western Hemisphere the most attractive region for direct investment in the world through digitalization, job creation, nearshoring and entrepreneurship. STRONGER TOGETHER… STRONGER TOMORROW The theme of this meeting: Stronger Together… Stronger Tomorrow expresses both unity and hope for the future. As we continue to live through a global pandemic, we need these two virtues more than ever. And, by all reports, this team and all CCB have lived up to these ideals. There were some tough decisions made to prepare this team for the future that it encountered sooner than expected. But you met those changes and others brought on by the pandemic with unity and hope. Thank you for your commitment to serving the people of Jamaica and the Caribbean region.”

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Celebrating World Water Day

DB Jamaica celebrated World Water Day 2021 on March 22, in a unique and inclusive way. It launched Talisman the Goat, or Talisman La Cabra, a delightful Jamaican environmental tale written by Laura Facey, one of Jamaica’s finest artists and sculptors.

IDB IN JAMAICA’S WATER & ENVIRONMENT SECTORS The IDB has been actively involved in the water sector in Jamaica on a continuous basis since the late 1990s. These span from water resources management and environmental protection to improving efficiency of water supply and sewage services of the country. SOME ACHIEVEMENTS The IDB:

Laura Facey’s environment-themed book, Talisman the Goat

In Spanish, Braille and English, children told a captivated audience comprising water, environmental and education stakeholders about Talisman’s experience with climate change whilst living on Goat Island and his adventures in search of water. WATER IS CRITICAL FOR EVERYONE’S HEALTH AND WELL-BEING The story of Talisman the Goat highlights the challenges that people all over the world experience because of climate change. According to the UN Refugee Agency “hazards resulting from the increasing intensity and frequency of extreme weather events, such as abnormally heavy rainfall, prolonged droughts, desertification, environmental degradation, or sea-level rise and cyclones are already cause an average of more than 20 million people to leave their homes and move to other areas in their countries each year.”

1. Supports the Water Resources Authority (WRA), the country’s water resources regulator, with updates of their Water Resources Development Master Plan that guides the allocation of the country’s water resources to uses, (agriculture, industrial or domestic consumers.) 2. Assisted with the formation of the Office of Utilities Regulation (OUR) and provides ongoing support in the strengthening of the OUR regulatory functions. 3. Is pioneering the Clarendon Blue Carbon Mangrove Restoration Project, the largest mangrove restoration project of its kind in the Caribbean. In partnership with UWI SODECO, this programme will restore over 1000 hectares of degraded mangrove forest and boost ecosystem-based livelihood opportunities. 4. Supports watershed protection with the National Environmental and Planning Agency (NEPA) and the Forestry Department with a project for the protection of the Yallahs and Hope Watersheds. WATER SUPPLY & SEWAGE 5. The IDB contributed to the concept and arrangement for rural water supply to attain universal water supply coverage in Jamaica. This, along with critical sewage 6

protects, remain mammoth tasks critical for health and hygiene in Jamaica especially since the advent of COVID-19 as the country continues to fight the virus. 6. Most of IDB’s investment support to Jamaica’s water sector has been to the National Water Commission, the main provider of water and sewage services in Jamaica. The aim of IDB’s interventions with NWC have been to improve the efficiency and reliability of NWC’s services and assuring its financial sustainability. Currently, IDB’s work in the water sector is attending to non-revenue water (NRW), which is a huge problem affecting water utilities across the Caribbean, not just in Jamaica. NRW is the volume of water supplied by a utility for which it does not receive any revenue due to leaks, inaccurate metering/ billing, and theft, as well as authorized consumption that are unbilled. Water losses, represented by NRW levels, represent inefficiencies of water utilities’ operation and management, which if addressed can provide significant financial, economic, and environmental benefits including addressing the impacts of climate change. This ongoing effort by the NWC to address its NRW problem, aims to reduce water losses from approximately 60% of the water supply input volume in KSA to 30%. The project is in its fifth year and has achieved some good results – leaks have been reduced, district metered areas have been installed and hydraulic model prepared, customer meters have been installed in socially challenged areas and NRW is coming down – currently around 40%.

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The Bank also continues to assist NWC and water utilities across the Caribbean with training on NRW reduction and studying the financial impact of COVID-19 our water utilities.

In commemoration of World Water Day, the Bank acknowledges the ongoing effort by the collective agencies (Water Resources Authority, NEPA, NWC, NIC, MEGJC, OUR, Parish Councils, and civil society organizations,

involved in managing the nation’s water resources, assuring adequate supplies for healthy ecosystems, improving efficiency of water supply and wastewater management, and help to mitigate adopt to the realities of climate change.

Importance of Mangrove Restoration Programme

Kingston & St Andrew NRW Reduction Co-management Programme Cops Global Award

Having this opportunity to restore decimated mangroves in Jamaica, and with them the several recognized ecosystem services which they provide, is nothing short of an absolute privilege!”

There is a growing recognition of the critical importance of mangrove forests in providing economic, ecological and social goods and services, including the provision of coastal protection, habitats for commercially important seafood, and the capture and storage of carbon dioxide (CO2). The carbon that is captured and stored in these coastal and marine ecosystems is referred to as “blue carbon” and is an important element in reducing the impacts of climate change. As these vital ecosystems are restored, conserved and managed, their capacity to carry out this natural storage function improves.

The Kingston and St Andrew NonRevenue Water reduction co-management programme in Jamaica, copped the WEX Innovation for Infrastructure Global Award last year. The NWC/Miya-Jamaica Co-management Programme won ahead a short list of countries including Uzbekistan and United Arab Emirates for its highly innovative business model and sustainability component. Mark Barker of WEX said “the programme which is financed by IDB is a groundbreaking project

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DR. TERRENCE FORRESTER, Chief Scientist at UWI SODECO

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with fantastic results. The judges underscored the high degree of collaboration that would have been necessary to build trust for it to be effective. It has contributed significantly to knowledge transfer, capacity building, sustainability and resilience.”

The project, which will be the largest mangrove restoration project undertaken in Jamaica, is expected to be completed by 2026 and will result in a mangrove system that is viable, healthy and optimally functioning.

Mitigating the debilitating effects of Climate change on our planet is still very much a primary focus area for the UK … and this massive restoration effort is very much aligned to those efforts. With one eye on the upcoming Atlantic hurricane season and the next firmly set on the current global pandemic that is COVID-19, this project will not only firm up climate resilience but provide much needed environmentally friendly, green jobs in this most difficult period.

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HIS EXCELLENCY ASIF AHMAD, CMG, British High Commissioner to Jamaica

A PROUD MOMENT Alvaro Ramalho, Country Manager, Miya Jamaica Ltd. and Senator Aubyn Hill, Chairman of the National Water Commission, show off the WEX award with a celebratory elbow bump, with Mark Barnett, President of the National Water Commission, sharing in the joyous moment. Miya Executives proudly collected the award at a gala in Valencia, Spain earlier this year. WEX is an annual global international summit, and covers the energy, water and circular economy.

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Our vital liquid, really?

Sadly, we appear to be treating water as the exact opposite of that precept – and we’ve begun to pay the price too. We’ve been using water as if it were an unlimited resource. However, 77 million people still lack access to safe water in Latin America and the Caribbean, and over two thirds of the region’s population have an intermittent supply. How ironic that these same people possess the largest fresh water reserves per capita in the world. Although we’ve made some progress – given that in 1960, only 33% of people had access to drinking water – there is still a gap that will be hard to bridge unless we make changes. First, because historic investments, under the paradigm of large costly infrastructure, are unsustainable. These investments have done little for development and have instead deepened inequality. In fact, people living in poverty in our region pay more for water than the middle or high classes, often having to buy from unreliable providers due to supply interruptions. This inequality is even more significant when it comes to sanitation. Eighteen million people still resort to open defecation, and 31% of the region’s households remain unconnected to the sewage system, creating a consistent threat to people’s health and a source of pollution that jeopardizes the integrity of our water sources.

the credit it deserves. At the IDB, we support the development and innovation of tools to improve water resource management. Hydro-BID, for example, relies on satellite technology and specific water basin information to create present and future availability scenarios. Twenty countries across the region have already implemented this tool. Among them, Guyana and Suriname, will be able to rely on solid data to set up comprehensive water resource management plans and improve its flood and drought predictions.

IDB

his month we celebrate World Water Day and the United Nations has invited us to reflect on an increasingly meaningful question: What is water worth to you? Most, if not all, people would agree that water is invaluable. After all, there’s a reason it’s called the “vital fluid.”

Sergio I. Campos G. is Water and Sanitation Division Chief at IDB

Secondly, mismanagement of water resources and distortions caused by climate change have broken the abundance and scarcity cycles that are taken into consideration for water management. In fact, some of our most highly populated urban centers, such as Mexico City, Santiago, or Lima are constantly threatened by water stress. This is why the answer to how much water is worth to us is of the essence, although we have yet to act accordingly. However, we could bridge historic investment gaps while protecting ourselves from climate change by relying on new paradigms to respond to old problems, and by acknowledging that climate change is becoming an increasingly important and frequent threat. Unpredictable events such as the COVID-19 pandemic, for which basic handwashing with soap and water is one of the first lines of defense, have shown us once again that we are not giving water 8

We also work directly with operators through Aquarating, the only tool in the market capable of swiftly, reliably, and comprehensively displaying the situation of water and sanitation providers in every area. After a thorough assessment process, a baseline is established on which to develop a business transformation and improvement plan for the short, middle, and long term. We also promote green infrastructure programs that combine investments on environmental protection of water basins with sustainable water management plans. Perhaps the best example is The Latin American Water Funds Partnership, a groundbreaking funding mechanism bringing together the public and private sectors as well as civil society to assign resources and establish watershed protection programs serving major urban centers in countries such as Mexico, Colombia, Ecuador, Chile, and Argentina. Protecting our watersheds has become now more than ever a form of defense against a climate change scenario that is quickly

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becoming true. We can tackle this threat while investing to overcome historic inequalities across the region. To do so, we must rely on new paradigms such as Optimal Sanitation, a program that aims at allocating nearly US$15 billion to developing sanitation infrastructure in the most vulnerable areas, with plans and designs adapted to every community, while at the same time protecting watersheds. The post-pandemic recuperation stage presents us with a unique opportunity to not go back to normal. Or else, we won’t have learned the lesson. We have the chance to put our people back to work, with investments that take technology and management innovation into consideration. These could lead to more and better services that require fewer resources, while boosting climate change resilience.

Initiatives like the UWI Sodeco Mangrove Restoration Project aim to revitalize mangrove ecosystems as optimally functioning coastal ecosystems along the south coast of Jamaica.

We are still in time to truly give water the essential value it deserves – the one that has led us to call it a “vital liquid.”

An innovative initiative would help level the playing field for Latin American and the Caribbean as countries around the globe compete to access COVID-19 vaccines.

Port Royal Coming Back to Life

ore exciting things are in store for Port Royal, once the “wickedest-city” playground of notorious pirates and inspiration for blockbuster movies such as James Bond’s Dr No and Pirates of the Caribbean. The town is now set to benefit under the IDB Living Heritage Programme/ 'Programa Patrimonio Vivo del BID’, sponsored by the Spanish Government. With USD110,000 in funding support from the IDB, the sleepy fishing town at the tip of the Palisadoes strip – which nestles Kingston Harbour, the 7th largest natural harbour in the world – is set to benefit from a master urban planning and technical assessment by Jamaica’s Urban Development Corporation.

The IDB Living Heritage Programme aims to strengthen the capacities of cities in Latin America and the Caribbean (LAC) Region to promote the conservation and enhancement of heritage as a means of achieving sustainable urban development and improve living conditions. This is in keeping with a new paradigm for intervention in heritage areas, building on it as a “valuable, sustainable, equitable and resilient asset”, contributing to the generation of compact cities with mixed uses; social and economic diversity and promoting the use of smart and energyefficient technology. Port Royal is one of two Caribbean towns on the Living Heritage Programme, the other being 9

Speightstown, Barbados. During its heyday in 1692, Port Royal was destroyed by earthquake, accompanied by a giant tsunami that killed approximately 2000-3000 people. Another 2000 died from disease in the aftermath. Today the town is a charming, popular hot spot for boat tours to nearby Lime and Maiden Cays with their beautiful white sand beaches. An archaeologist’s and diver’s dream, Port Royal also showcases a sunken city with shipwrecks and many artefacts. More recently, excited locals were pleased to welcome tourists on the Marella Discovery 2, the first cruise ship to call on the newly established cruise ship port and SeaWalk Floating Pier.

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and IDB Lab. “Make no mistake about it, the ability to receive and distribute vaccines is a race that will largely determine the economic and social future of countries around the world.

IDB

IDB to support Latin America and the Caribbean to Negotiate Faster Access to Vaccines

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he Inter-American Development Bank (IDB) has announced a first-of-its kind initiative that would help Latin American and Caribbean countries better compete to obtain lifesaving COVID-19 vaccines. The instrument would help both countries and vaccine makers resolve indemnity obligations, thereby removing a key obstacle to vaccine contract negotiations. The initiative also aims to help design and implement regulatory reforms that facilitate the acquisition and distribution of vaccines. The IDB is the first multilateral development bank to offer such an instrument to its clients. Until now, governments in many countries have found it challenging to purchase vaccines while simultaneously figuring out how to satisfy pharmaceutical company concerns

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STUDIOGSTOCK

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Countries in Latin America and the Caribbean must receive the support needed to obtain vaccines that are critical to kickstarting economies in the Americas,” said IDB president Mauricio Claver-Carone.

Mauricio Claver-Carone is president of the Inter-American Development Bank

about the potential cost of liabilities related to the widespread use of new COVID-19 vaccines. This announcement is an attempt to empower developing nations in their vaccine discussions and provide them with a unique guaranteed instrument aimed at improving the terms and conditions on which vaccines are delivered. We will complement these efforts with the private sector and seek to collaborate through the work of IDB Invest

Jamaica gets US$75 million IDB loan to strengthen COVID-19 response

Concerns over how to reduce the potential cost of liabilities have been a stumbling block for too long for countries desperate to obtain vaccines, end the pandemic and reverse the brutal unemployment and poverty setbacks caused by COVID-19. This new initiative has the potential to change the reality of many countries and improve access to vaccines, accelerate a recovery for the region, and mitigate risks for pharmaceutical companies that want to do business in Latin America and the Caribbean.

amaica will get a US$75 million loan from the InterAmerican Development Bank (IDB) to strengthen the efficiency and effectiveness of public policy and fiscal management in response to the health and economic crisis caused by COVID-19. The loan, the first of two policybased loans, will promote the availability and timely execution of public resources to respond to the health crisis caused by COVID19. It will strengthen the countercyclical effect of fiscal policy through the introduction of temporary measures to protect the income of vulnerable households and increase liquidity for businesses during the crisis. In addition, the loan will promote economic and fiscal recovery in the post-pandemic period.

“This loan comes at a crucial moment in Jamaica’s fight against COVID-19 as the country begins the process of vaccinating its population to save lives, but also as it prepares to ramp up economic activity in the face of the economic fallout in 2020,” said IDB Country Representative and Manager of the Caribbean Department, Therese Turner-Jones. “I am hopeful that these resources will help with both the health and recovery of the country.” Jamaica, like other Caribbean countries, has been hit hard by the pandemic as nearly a third of its output and employment are linked to the tourism sector. The IDB loan will help finance cash transfers to employees, grants to lowincome informal workers, vulnerable groups and the unemployed, and provide student loan relief. It will 11

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This loan comes at a crucial moment in Jamaica’s fight against COVID-19 [and] will help with both the health and recovery of the country.

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support small business grant programs, especially in the tourism sector.

The IDB loan will also support measures to strengthen fiscal institutions to improve efficiency and transparency of public investment as well as the formulation of strategies and public policy responses to limit the economic fallout of the crisis and bolster subsequent economic and fiscal recovery efforts.

The IDB loan has a 20-year maturity and 5.5-year grace period and its interest rate is LIBOR-based.

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Public Sector Transformation Programme wins IDB Jamaica’s PEU Challenge that is performance-based, efficient, cost-effective and serviceoriented which are preconditions to accelerate the growth of Jamaica’s economy.

results, and improve performance.”

So far, over 30 public bodies have been rationalized, generating savings worth over JMD 1 billion; the wage bill has been reduced, and a shared services centre is being established to centralize certain key functions currently duplicated in every ministry, such as legal and human resources. Many processes in government agencies are currently streamlined to improve the ease of doing business and service delivery.

Maria Thompson Walters, Executive Director of the TIU with the first-place PEU Challenge trophy

he Support for Public Sector Transformation Programme won first place for Exceptional Execution Award for its excellent project planning and delivery at the inaugural IDB Jamaica Project Execution Challenge. The announcement was made at an IDB virtual awards ceremony last year. The Public Sector Transformation Programme (PSTP) seeks to establish a public sector

The Challenge is a behavioral insight exercise geared towards stimulating and recognizing best practices in leadership and project execution and promoting the IDB’s mission to improve lives in Jamaica. It is the brainchild of Adriana La Valley, IDB Jamaica’s former Chief of Operations. “The PEU Challenge was a year-long process,” she remarked, “and the Project Executing Units are directly responsible in delivering the results of the various programmes. To ease their journey, we developed tools to help maintain the focus, deliver

Indi McLymont-Lafayette of PPCR PEU displays the 3rd-place trophy from the 2019 PEU Challenge

Richard Panton of the PSTP programme said the team was delighted on learning of its win. “We have been deliberate in the design of the programme and the application of the tools and templates which enables effective implementation. This award will inspire us to work even harder.” Other finalists in the Challenge included the Citizen Security and Justice Programme (CSJP), the Adaptation Programme and Financing Mechanism for the Pilot Programme for Climate Resilience and Integrated Support to Jamaica’s Social Protection Strategy (PATH). CSJP is a violence prevention project administered through the Ministries of National Security and Justice. The Project targets youth who are at risk of becoming involved in violence or criminal activity. Operating across 50 volatile and violence-prone communities the programme – which includes targeted public health interventions – benefited over 5000 persons.

The Championship team deliberates

Work on the YallahsHope Watershed Management Area received a Special Mention Award

The programme also includes improved access by citizens to justice services. It facilitated the establishment of Restorative Justice Centres in 8 parishes, where 500 cases referred from the Courts of Jamaica were successfully resolved. The Adaptation Programme and Financing Mechanism for the Pilot Programme for Climate Resilience enhances Jamaica’s resilience to climate change, through enhancing adaptive capacity across priority sectors. The Integrated Support to Jamaica’s Social Protection Strategy (PATH) supports the capacity of the Ministry of Labour and Social Security to improve quality and access to the network of social services to the poor and vulnerable.

SPECIAL RECOGNITION AWARDS The Integrated Management of the Yallahs-Hope Watershed Management Area, the Kingston Metropolitan Area (KMA) Water Supply Improvement Programme and the Credit Enhancement Programme for Micro, Small and Medium Enterprises also received special recognition awards. Congratulating the award recipients, Therese Turner-Jones, IDB

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To ease their journey, we developed tools to help maintain the focus, deliver results, and improve performance. Adriana La Valley, IDB Jamaica’s former Chief of Operations

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Jamaica Country Representative and General Manager for the Country Caribbean Group, underscored the importance of expert project execution, noting that it helped to promote productivity in national life by making it easier for citizens to transact business with the government and channel critical resources to underserved communities in a timely manner. “In this period of COVID, our efficiency becomes even more crucial as inequities have been widened, many more persons are on the periphery and are undergoing immense hardship. I am happy that this Challenge has opened up the possibilities for us to work even more effectively with our Jamaican counterparts for the greater good of Society,” TurnerJones commented.

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teacher development. We supported the Ministry of Education, Youth and Information’s (MOEYI) efforts to revise core math, science and language curriculum and focus on more practice-based student-centered teaching.

Support for Education Spans 50 Years

hat children learn in the first five years can affect the rest of their lives. Jamaica’s seminal child cohort study (1986) has showed better health, happiness, job opportunities and earnings among those children who received extra learning support at home and in school. For this reason, the IDB has invested in early childhood education over the last decade with resources to Brain Builder Centres, as well as training of teachers and parents, policy support and research. The JA KIDS Birth Cohort Study (20112019) looked at the many influences on child development, including parents’ involvement, the home environment and the school environment. Findings from the study have informed the IDB’s work with the early childhood sector and ongoing research on gender bias, boys’ development and the important role of fathers. First-hand knowledge comes from

Charlene Coore Desai, former Study Director of JA KIDS and a JA KIDS parent: “I was able to learn more about my own child’s growth and development and be a part of something that would provide valuable information on the factors that influence learning and development in young children.” The sooner investments are made in teaching and learning, therefore, the better the returns. Though this has been recognized in early childhood development, investments in STEM (Science, Technology, Engineering and Math) education often come much later. The IDB has embraced the Jamaican government’s (GOJ’s) long-term goals established under the Education System Transformation Programme (ESTP), including improvements in teaching of foundational language and math courses, STEM and 21st century skills, starting in early childhood and carrying through childhood 14

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Teachers have implemented math reforms, accompanied by a strong team of regional math coordinators. “The support of the IDB has played a critical role”, says Tamika Benjamin, “in helping Jamaica develop and implement a comprehensive strategy focused on improving mathematics teaching and learning. Their support has allowed the Ministry of Education to address weaknesses at the primary and secondary levels and at the critical teacher training level establishing a foundation for medium to longterm sustained improvement.”

and adolescence into teacher training. The innovative study on Partnering with Parents to Foster Academic Success in early learners bore out international research findings on the positive relationship between parental involvement and academic achievement, this time among PATH beneficiaries. Children in first and second grades showed improvements in math when their parents attended workshops on basic math concepts like measuring, fractions, shapes and story problems using locally known figures like Pitchy Patchy. Both JA Kids and the Partnering with Parents studies showed how important it is to give parents tools to help their children learn. At school, good quality education requires good teachers. In primary and secondary education, the IDB has financed training, resources, curriculum and coaching to boost

The IDB also financed construction of new schools like Cedar Grove Academy, an MOEYI designated Centre of Excellence with a STEMfocused curriculum.

Broadband infrastructure development will support learning modalities for early education

outstanding teachers. Teacher training institutions (TTIs) are tasked with preparing new teachers, and with IDB financing, Jamaica’s TTI lecturers received intensive instruction in math practices and methods, climate change and micro-science. Changes in the delivery of methods and content in TTIs, and reinforcement of the use of those methods and practices in school classrooms, may lead to sustainable and systemic changes in teaching of STEM skills. Internal Quality Assurance Standards will help the TTIs to self-reflect and take a good look at how they are preparing teachers, what they’re offering in terms of facilities, equipment, staff and content, how they are organized and managed, how they evaluate students and their own faculty, how they strive to grow and improve through research and staff development, and how they support teachers in training to become

“The development of the internal quality assurance standards represents a major milestone and we anticipate immediate and significant benefits for the TTIs, and over time, across the schools, given discernible improvement in teacher quality,” outlined Dameon Black, Executive Director of the Jamaica Tertiary Education Commission. Finally, teachers teach best when supported by strong school leaders. The GOJ commissioned a School Effectiveness Study through the IDB to determine why some schools perform better than others. The study identified eight factors and used them to develop practical hands-on tools to improve the country’s schools, focusing especially on school leadership. The IDB delivered some 3,500 School Effectiveness Toolkits which the National 15

College for Educational Leadership (NCEL) used to train school principals from across the country in school management, planning, education leadership, and community outreach. The study also validated the standards used by the National Education Inspectorate (NEI) to inspect schools and gauge school performance. Since 1970, the IDB has worked with the GOJ to bring together international good practices, local research and action to improve teaching and learning. This has led to stronger core skills in language and STEM, socioemotional skills developed at home and at school, and 21st century digital skills to position Jamaicans for lifelong learning and work in the global arena. Digital transformation, hybrid education, and preparation of teachers for virtual learning lay ahead, proving that lifelong learning is a collective endeavor.

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“My goal is to contribute to generate a new mindset that fosters collaboration, co-creation, diversity and puts people at the center of any attempt to come with better and different solutions for development challenges.” He took over from Adriana La Valley who served for three years and has since assumed the COO role for Ecuador.

Lorenzo Escondeur: Leveraging the digital revolution in Jamaica COURTESY LORENZO ESCONDEUR

He asserts that focusing on digitization and connectivity will also allow countries to accelerate the use of the technologies of the 4th Industrial Revolution (Artificial Intelligence, Internet of Things, Augmented Reality, Blockchain and others) that are already generating profound transformations in the lives of people, organizations, societies and markets. These new technologies will allow government and businesses to generate new interactions, new types of data, new behaviors, new opportunities, and new services and products.

Lorenzo Escondeur is IDB Jamaica’s Chief of Operations

IDB Jamaica’s Chief of Operations, Lorenzo Escondeur believes that COVID-19 has put the world, and especially the Caribbean, to the test and that the pandemic has become the great natural accelerator of an imperative digital transformation. “Jamaica has a great opportunity to advance in this transformation, for example by investing and focusing on the expansion of broadband as the necessary foundation for the development of the public and private sectors. From this will arise new business models, new ways of managing natural resources, new models of education for our children, among many other innovations.”

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“

Jamaica has a great opportunity to advance … by investing and focusing on the expansion of broadband as the necessary foundation for the development of the public and private sectors.

”

Escondeur, who assumed the helm last September, says he will be an advocate to support, accompany and motivate the public and private sectors as well as the Jamaican people to bring to the table their creativity and their collective intelligence to get the most out of this great digital revolution and the opportunities presented by the pandemic.

A national of Uruguay, Escondeur has been a member of the InterAmerican Development Bank team for the past 21 years. He previously served as an Operations Advisor to the Vice President for Sectors and Knowledge, providing strategic and expert technical advice in highly complex business topics. He also led the development and improvement of several processes, policies, and systems, based on modern and innovative approaches to improve project execution and better serve clients. He has also served in key operations roles at the Institutional Capacity and Finance Department, Development Effectiveness Department, the Regional Department for Andean and Caribbean Countries as well as the Country Office in Uruguay.

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ELECTRIC VEHICLES PLUG IN

The Ministry of Science, Energy and Technology has secured IDB assistance to develop a national broadband strategy and islandwide broadband network. A national broadband task force will guide the Ministry’s team and provide the technical input and oversight required to drive implementation of the strategy and the corresponding broadband network. Having identified the specifications and estimated cost of implementation, the body will advise on any legislative or regulatory changes that may be required to ensure sustainability. The Government aims to have every household and every community connected to the Internet by 2025. 17

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impact The most recent data indicates that Jamaica’s annual concentration of air pollutants (PM2.5) is 13 μg/m3, which exceeds the recommended maximum of 10 μg/m3. The main sources of air pollution in Jamaica are industrial, open burning by individuals and businesses, garbage dumps, forest or bush fires and most of all, motor vehicle emissions. As a mitigative response to air pollution, early adopters Safety and Environmental connoisseurs, Danehue and Kemorine Collash, have demonstrated their commitment in adopting an eco-friendly modality by acquiring a 2014 Nissan Leaf BEV (battery-electric vehicle). The automobile is fully electric, powered only by electricity and has no petrol engine, fuel tank or exhaust pipe. BEVs are also known as ‘plug-in’ EVs as they use an external electrical charging outlet to charge the battery. These types of vehicles can also recharge their batteries through regenerative braking. The purchase of a BEV was the Collashes’ way of contributing towards Jamaica’s sustainable and inclusive development plan, also known as Jamaica Vision 2030. Additionally, their eco-friendly initiative, PLUG-IN Jamaica, is a Youtube channel that aims to promote a healthy natural environment and educate the Jamaican public on E-mobility and its level of sustainability in the Jamaican climate. Apart from having the desire to see a healthy environment, Danehue and Kemorine Collash with their 2014 Nissan Leaf BEV

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especially one that caters to future generations, the utmost motivation – or what Danehue describes as “the push over the line” that prompted them to become early adopters to the eco-friendly way of living in Jamaica – came from the urging of Danehue’s cousin, Howard. “He has been encouraging us for years to get an electric vehicle and to share the knowledge. He has a Ford electric, and he has converted a gas vehicle to an electric as well,” Danehue says. “All of that put together has encouraged us both to embark on this ecofriendly journey.” PURCHASING AN E-VEHICLE – WHAT YOU SHOULD KNOW Before purchasing, they had to do their independent research. "We did it ourselves and had to look online to gather adequate information," Danehue says about the initial stage of the process. Then, the Collashes turned to a network associate who was able to verify the quality of the E-vehicle's battery, since the state of the battery, electric vehicle's battery determines the car's mileage. Danehue explained that the battery of an electric vehicle “should be assessed prior to purchase as shipping companies will not assess it for you." He recommends that it would also be best to build a relationship with the car dealer who can inspect the battery and determine its state of health (SoH), a measurement of the battery, compared to its ideal conditions, in percentage points. Typically, a battery's SoH will be 100% at the time of manufacture and will decrease over time and use. Checking the battery quality for the Collashes was even more critical, considering that they 18

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were purchasing a used electric vehicle. Regarding the importation process, the Collashes discovered that importation costs of an EV are equivalent to that of a regular gas vehicle. At the point of clearance, custom officials tried to verify the vehicle’s CC ratings, the total displacement in cubic centimetres by a motor car’s engine. “An electric vehicle does not have an engine,” Danehue points out, “thus, we were held up when trying to acquire the vehicle because they did not know what to put into the system since the vehicle has no engine and the system has no option for electric vehicles”. Kemorine added that this “made the process overwhelmingly long – or longer than it needed to be”. Their ordeal revealed that our practices in Jamaica when conducting customs clearances do not have anything in place to accommodate the importation of an electric vehicle that runs solely on a battery. PROS AND CONS OF OWNING AN E-VEHICLE As with other types of vehicles, electric vehicles have their pros and cons. The benefits of owing an e-vehicle, however, far outweigh the disadvantages. Not only are they cheaper to maintain and save money over the long term, but they are also emission-free, which is good for the environment because of its smaller carbon footprint.

“

Not only are [electric cars] cheaper to maintain and save money over the long term, but they are also emissionfree, which is good for the environment because of its smaller carbon footprint.

”

The covered charging station at IDB’s Regional Hub office in Kingston.

PROS • No exhaust fumes Electric vehicles emit less hydrocarbons, ozone, particulates and other toxic pollutants into the atmosphere, which means that e-vehicles are less damaging to the air quality in urban areas, especially in countries where smog and poor air quality are a nuisance. • Saves money on fuel costs It is cheaper per mile to run a vehicle on electricity than on gasoline and an e-vehicle can be charged at home without visiting a station. CONS: • Limited total range Apart from Tesla, most cars in the e-vehicle segment have a range between 100 and 278 miles on a full charge, compared with a typical gasoline four-cylinder vehicle which averages about 370 miles on a full tank of gas.

However, most people don’t need that much range, with the average commuter driving roughly 30 miles a day. • Can be expensive E-vehicles can still be pricier than comparable gas vehicles and the initial above-average asking price for an e-vehicle may be out of reach for the typical buyer looking for some value in their purchase. Some EVs also depreciate quickly, but others, like Teslas, hold their value well. IDB LAB AND JPS FOUNDATION COLLABORATIVE PROJECT SPARKS HAPPINESS The Inter-American Development Bank (IDB) and the JPS Foundation have officially launched the project, “Building a Sustainable Electric Mobility Ecosystem for Inclusion and Access”, to ensure greater involvement of small businesses and other key stakeholders in the expansion of electric mobility in 19

Jamaica. The JPS Foundation will be responsible for executing the project, which aims at building an enabling environment for electric mobility, through the creation of opportunities for Small and MediumSized Enterprises (SMEs) and their employees in the Electric Vehicle value chain. “We appreciate the collaborative effort of the IDB Lab and the JPS Foundation of expanding and promoting electric mobility in Jamaica as they are especially concerned with the absence of charging stations in the country,” the Collashes expressed when asked about their thoughts on the project. As a recommendation, the Collashes proposed that an effective marketing strategy that can be harnessed by IDB Lab and the JPS Foundation and by extension, environmentalists, would be to drive an EV and boost credibility when promoting the message of EV adaptation within the country.

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by Marianne Van Steen, EU Ambassador, and Therese TurnerJones, General Manager, Country Department Caribbean Group, IDB This 3-part series highlights reforms carried out under the Public Sector Efficiency Programme (PSEP), funded with a EUR 5m grant from the European Union and a USD 9m loan provided by the Inter-American Development Bank (IDB). Support to the Cabinet Office for the design and implementation of the Technical Research Support Unit (TRSU) and the Independent Fiscal Institution (IFI), was a key component of the PSEP, which laid the foundation for a more effective, transparent and accountable Government of Jamaica. PART 1 Jamaica’s drive to achieve developed country status over the next decade will be a major challenge, further complicated by the struggle to protect businesses and livelihoods in the aftermath of a global health threat. Despite the setbacks caused by this crisis, the Government of Jamaica is in a better position to achieve its Vision 2030 development goals than ever before, thanks in part to the Public Sector Efficiency Programme (PSEP).

Launched in February 2014 and coordinated by the Cabinet Office, the PSEP supported a number of activities that strengthened the transparency and accountability framework of the Jamaican Government in key, sensitive areas.

This article highlights activities and reforms implemented under the PSEP, which, taken together, helped establish a stronger foundation for Jamaica’s national integrity system: the web of institutions, laws, regulations, and functions that ensure government operates transparently and in the best interest of the Jamaican people. For Government to operate in the people’s best interest, policies and legislation need to be made based on high quality, objective data and information. The fiscal impact of such policies and proposed legislation, meanwhile, needs to be independently assessed, and Government spending needs to be closely monitored. The Technical Research Support Unit (TRSU) and the Independent Fiscal Institution (IFI) were designed within the PSEP to achieve these 20

The European Union and the IDB are proud to have contributed to the PSEP and will continue to support Public Sector Transformation and Modernization. Together, we will muster the technical and financial resources needed to meet the challenges of today, while laying the foundation for a better tomorrow. The time is upon us to put our best foot forward, embrace transparency, scrutiny and accountability, and make every dollar count.

PCH.VECTOR

Promoting transparency and accountability in Jamaica

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important objectives. The TRSU was established as a new unit within the Houses of Parliament by the authority of the Minister of Finance. It will provide unbiased, non-partisan research and analysis to parliamentarians on demand, and serve as a knowledge hub for lawmakers and parliamentary committees. This new unit will empower legislators to make evidence-based decisions on behalf of the Jamaican people and perform their oversight and scrutiny role more effectively. The TRSU is being staffed by professionals subject to a rigorous hiring process, and will be fully operational this fiscal year. Following the conclusion of the International Monetary Fund’s stand-by arrangement in November 2019, the need for continued monitoring of Government’s

compliance with the Fiscal Responsibility Law (FRL) and its progress towards reducing debt to 60% of GDP by the 2025/2026 fiscal year, became clear. The IFI was designed in this context, as a statutory agency with a mandate to, publicly and independently from partisan influence, assess Government’s fiscal policies, plans, and performance against macroeconomic objectives, including the long-term sustainability of public finances. To understand how these institutions will operate in practice, consider, for example, a proposed bill authorizing the construction of a new airport. The TRSU would conduct research to provide parliamentarians with objective information that helps them make a sound decision, whether in favour or against the proposed bill; the IFI, on the other hand, would make information available to parliamentarians and to the public related to the fiscal impact of the proposed bill. In combination, these institutions will reduce the potential for policy decisions to be made arbitrarily, or to be driven by interests other than those of the general public. Legislation to establish the IFI is

being drafted and will be tabled in Parliament soon. The draft bill has been reviewed by a committee of experts convened thanks to support from the Government of Canada, which has also been a key partner in the creation of the IFI. Transformation of Government entities into more efficient, transparent and accountable organizations is essential if Jamaica is to afford a high quality of life to all its citizens and truly become the place of choice to live, work, raise families and do business. No individual reform can eliminate corruption on its own – and there’s still plenty of room for improvement; nevertheless, reforms such as those facilitated by the PSEP, in aggregate and complementing one another, will, over time, strengthen the framework for good governance and transparency in Jamaica. Thanks to the PSEP, Jamaica has taken important steps in the right direction. The challenges ahead are formidable, but Government now has effective tools at hand, an institutional framework built for transparency and accountability, and dedicated public servants responsible for ensuring taxpayer money is used wisely.

PART 2 – HOW ELECTRONIC PROCUREMENT REVOLUTIONIZED PUBLIC TENDERS IN JAMAICA Over the past several decades, international development partners, including the European Union and the Inter-American Development Bank (IDB), have worked diligently alongside the Government of Jamaica to assess the country’s needs, prioritize interventions and implement transformational programmes that address structural impediments to a better, more equitable and just Jamaica.

The Public Sector Efficiency Programme (PSEP), executed between 2014 and 2020, was a landmark project that responded to the critical need to improve key processes and functions within government, and build internal capacity across ministries, departments and agencies (MDAs) to exert effective control and oversight of public spending. Government spends between 30% and 40% of Jamaica’s GDP, or somewhere in the region of US$5bn to US$6bn annually, on public tenders, according to estimates by the Public Expenditure Policy Coordination Division at the Ministry of Finance and the Public Service. The transparency and accountability with which such large sums are disbursed contributes heavily to the level of public trust in government and the ability of public sector bodies to function

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effectively in carrying out their respective mandates. The Government of Jamaica’s ability to contract products and services in a fair, efficient and transparent manner by implementing an electronic procurement, or e-procurement, system was a central pillar of the PSEP. The need for an effective e-procurement system was first identified in 2005, with an assessment of country readiness. The findings of that assessment resulted in detailed plans for implementation, and the Government of Jamaica, through the Ministry of Finance, sought technical assistance and support from the EU and the IDB to develop and an e-procurement system and train public servants in its use. The PSEP built on that technical assistance by providing resources and expertise to transition what had been a laborious, manual process, to an electronic platform that could make public tenders more agile and transparent. The purpose was clear: while manual and paper-based processes are prone to errors and irregularities, often opaque, and, in the worst cases, vulnerable to abuse, manipulation and corruption, digital systems offer greater safeguards against these risks. What began as a pilot in 2014 has since been extended to 182 of 196 procuring entities that now depend on the e-procurement platform. The successful implementation of Jamaica’s e-procurement system has streamlined the tender process for both procuring entities and suppliers. Procuring entities can now simply create a request for proposals in the e-procurement portal, set clear rules and deadlines and field interest from participants located anywhere in the world. Suppliers, meanwhile, find all the necessary information in one place, and can communicate with the procuring entities and submit their bids on a level playing field that greatly reduces room for

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discretion. Importantly, the e-procurement platform is also accessible to government oversight bodies, including the Integrity Commission, which can monitor tender processes in real time, issue injunctions for non-compliance and make recommendations to the procuring entities, as necessary. The European Union and the IDB applaud the Government of Jamaica’s determination to make public procurement processes more efficient and transparent, and subject to oversight at every stage. The successful implementation of the e-procurement system under the PSEP helps ensure taxpayer dollars are spent for their intended purpose and discourages the kind of information asymmetry that has traditionally kept the public in the dark and compromised public resources. Through the implementation of the PSEP, the Government of Jamaica has demonstrated its commitment to transforming how public procurement processes are carried out. Important steps remain for the system to reach its full potential, including completing amendments to the Public Procurement Act, and training all public procurement officials in the use of the new platform – a measure that has been delayed pending review of the Act. There are other developments in store that will further cement the improvements implemented under the PSEP. In the near future, for example, e-procurement will become one of a number of centralized “shared services” that will avoid duplication of efforts between MDAs to achieve even greater efficiency and transparency. The adoption of an e-procurement platform, and the ICT and internal audit training that accompanied it, has made accountability and oversight integral to the public procurement process. Public sector 22

transformation is an on-going endeavour, and one that will require continued support and vigilance; but it’s an effort worth every penny and commendation. As Government becomes more efficient, Jamaica becomes a more attractive country for families, businesses and investors, with more resources available to put towards the health, education and development of the Jamaican people. Thanks to the PSEP, Jamaica is on a strong footing to continue improving the functions of government and the lives of its citizens, and one step closer to delivering on its Vision 2030 development priorities. PART 3 – HOW HUMAN RESOURCE DEVELOPMENT AND TECHNOLOGY EMPOWERED THE AUDITOR GENERAL’S DEPARTMENT The Auditor General’s Department (AGD) conducts high quality audits and makes recommendations that are relevant to the Government entities it scrutinizes, to Parliament and to Jamaican citizens. In practice, the AGD’s role is to ensure public resources are spent for their intended purpose and without leakage of funds. This function was prudently carved out in the Jamaican Constitution, with more recent legislation expanding and reinforcing its scope.

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of Finance and the Public Service. This is a crucial new tool for the AGD, which engenders confidence at a time when Jamaica can’t afford to squander even a dollar of public money.

VECTORJUICE

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The AGD was a key beneficiary of the Public Sector Efficiency Programme (PSEP), which, starting in 2014, provided resources at a critical time to support the implementation of its Strategic Business Plan. Chief among the areas identified for improvement were the AGD’s capacity to carry out performance audits – which assess efficiency and effectiveness in the use of public resources – and IT audits. Both required specialized training for AGD staff and the procurement of computer hardware and software systems.

has grown its staff complement and its capacity to execute its mission, thanks to improved audit practices in line with international standards, and to the adoption of new technology tools. In combination, training and technology have enabled the AGD to more efficiently review the large amounts of information submitted on a daily basis by Government ministries, departments and agencies. The PSEP provided support to modernize the AGD and reinforce its audit principles in a structured manner. By the time the PSEP wrapped up in early 2020, 90 auditors had been trained to improve IT audits, performance audits and compliance audits, and 40 auditors were trained to improve their ability to conduct financial statement audits. IT audit manuals were drafted under the programme and disseminated throughout the Department, and the AGD procured and adopted the CaseWare software platform to improve the quality and efficiency of its financial audits.

Under the direction of Auditor General Pamela Monroe Ellis, who began her tenure in 2008, the AGD

The AGD is aiming to transform itself into an agile organization, and technology is a key enabler

of the agility it needs. During the lockdown imposed in April, the AGD transitioned to remote work without missing a beat, thanks to the technology infrastructure it had implemented. The PSEP, the Auditor General has acknowledged, facilitated a seamless evolution within the AGD, enhancing its human resource and technological capacity to provide transparency and accountability, both critical to Jamaica’s growth and development. Efforts to improve human resource capacity at the AGD continue, and as their knowledge and skills improve, officers are able to allocate their time more efficiently, and the Department can cover more ground and be more responsive. The AGD is now beginning to focus on data analytics and big data as it builds its capacity to perform real-time audits. The real-time audit performed of the COVID-19 Allocation of Resources for Employees (CARE) Programme, for example, allowed it to identify payments that would have been made to ineligible individuals and businesses before the money was spent by the Ministry

Recent performance audits published by the AGD, including audits of the Petrojam oil refinery, Caribbean Maritime University (CMU) and the Jamaica Urban Transit Company (JUTC), led to high level, granular reviews of these state-owned entities, their structures and the oversight they are given, and put transparency and anti-corruption at the top of the agenda of the newly re-elected Andrew Holness administration. These high-quality performance audits produced by the AGD demonstrate just how important it is for leaders in Government, and for the citizens of Jamaica, to be able to follow the money. The JUTC report issued by the AGD this year is a far cry from the one published about the same entity in 2011, thanks to improved performance audit practices. The AGD is now looking at the business processes in a more critical manner and linking the issues; that doesn’t happen overnight: it’s knowledge acquired by the auditors and a practice, an approach, that is being improved on, according to the Auditor General. Scathing performance audits of Government entities provide easy fodder for criticism, but the real value of these reports is in the recommendations provided by the AGD, and in the accountability and transparency they demand of these public institutions. The EU and the IDB are proud to have supported the AGD’s strategic business plan under the PSEP and look forward to future audits demonstrating that transparency and accountability have become integral to the normal course of business throughout the public sector.

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The creative community has received a boost with the forging of a three-year technical agreement between Kingston Creative Limited and IDB Lab, the innovation laboratory of the Inter-American Development Bank. The collaboration, which will fasttrack social and economic transformation through the merger of creativity, culture and technology is expected to support 1,500 entrepreneurs and creative enterprises, notably 300 creative entrepreneurs based in Downtown Kingston. Additionally, 60 creative businesses will benefit from the integration of new technologies in their business models and 25

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entrepreneurs will be connected to new international markets and opportunities. Therese Turner-Jones, IDB’s General Manager for the Caribbean Country Group and Country Representative for Jamaica, noted that the creative community has suffered immensely since the onset of COVID-19. “We are very happy to provide support to this industry especially as this partnership will afford creative entrepreneurs a vista for valuable global connections, greater visibility for their work and new opportunities for learning, incubation, and acceleration of their efforts.” The technical cooperation agreement is for USD1,295,000 with IDB contributing USD 595,000 and Kingston Creative USD700,000.

Murals in the Kingston Art District

Walking in the Kingston Art District

The programme will involve improving the digital and business skills of creatives, creating online platforms, market access tools and strengthening the creative ecosystem. It will be supported by entities such as the Kingston & St. Andrew Municipal Corporation (KSAMC) and the Tourism Enhancement Fund (TEF) an agency of the Ministry of Tourism. CONTRIBUTED

Kingston Creative and IDB Lab to enhance global market access for Creative Entrepreneurs

NEWS FEATURES & VIEWS

Mural art in a display cubicle

Andrea Dempster-Chung, Executive Director of Kingston Creative, said that she was excited about the benefits that will accrue to creatives that drive the $84 billion creative economy. Noting that 2021 was designated by the United Nations as the International Year of Creative Economy for Sustainable Development, she said “the partnership will position Jamaican creatives to recover and re-emerge stronger post-COVID. IDB Lab will also connect creatives

with regional and global partners through a host of networking capacity-building opportunities. Our new coworking space, the Kingston Creative Hub, will also provide creatives physical access to space; hot-desks, meeting rooms, offices, and podcasting, dance and digital studios,” DempsterChung added. “We are also excited about continuing our work on the inclusive and balanced development of the new Downtown Kingston Art District and now connecting Port Royal by linking community creatives into the tourism value chain and providing them with digital platforms and skills to improve their market access,”. Terry-Ann Segree, IDB Lab Private Finance Senior Specialist, also explained that there is an increasing trend globally to mix the traditional artistic elements of contemporary art and culture, music, fashion, literature, theatre, dance, and film

with animation, augmented and virtual reality, 3D printing, science, gaming and software. “We will focus on fostering collaborations between artists and developers, designers and scientists, to add economic and social value to cultural and creative assets while creating a transmedia storytelling focus on Jamaican creators to give them visibility locally and internationally.” About IDB Lab IDB Lab mobilizes financing, knowledge, and connections to catalyse innovation for inclusion in Latin America and the Caribbean. It supports innovative projects and early stage ventures with a potential to generate impact on a large scale. It also promotes innovation and entrepreneurship ecosystems. The Lab systematizes and disseminates knowledge to connect ideas and scale their impact.

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nvesting in the future of the Caribbean has been a clear priority for IDB Invest since it began operations in 2016. The pandemic has made the future harder to see but clear is our commitment to supporting the Caribbean recovery and its efforts to build forward in a strong and resilient way. IDB Invest’s goal is to support projects that not only have significant development impact and are financially sustainable but also contribute to economic growth and financial inclusion. Finding projects that meet these combined goals propels us to engage deeply with private sector businesses in Jamaica (and the region) to better understand our clients’ needs. Our approach to engagement is multi-pronged and reflects our Management’s strong commitment, both to Jamaica and the Caribbean region. Marisela Alvarenga, IDB Invest’s

Financial Institutions Division Chief explained that the IDB Invest has a strong interest in supporting SMEs led by women in Jamaica and elsewhere and has carried out many projects in the Caribbean and Latin America that have a focus on supporting women-led SMEs. “We hope that Jamaican women-led SMEs will work with JMMB in utilizing some of the funding that we have provided through this project.” 1. LOCAL PRESENCE Local presence is the cornerstone of IDB Invest’s engagement in Jamaica and it starts at the top with the Group’s General Manager and Country Representative. Therese Turner-Jones is the focal point for our country relationship, playing a vital role in building market intelligence and origination capacity. The IDB Jamaica country office serves as the regional hub for the IDB Group’s efforts in the Caribbean. In 2016, there was only one IDB

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environment and the priorities of the clients we wish to reach.

Marisela Alvarenga is head of IDB Invest’s Financial Institutions Division

Invest staff member located in Jamaica, contrasting sharply to today when the Jamaica Hub is complimented by a robust IDB Invest team capable of identifying, originating, and structuring transactions. This geographical proximity to our clients is key to understanding the operating

2. PARTICIPATION AND VISIBILITY IDB has a long and deep relationship with Jamaica. As a new player in the market, IDB Invest has aligned itself more closely to its group partner to increase its visibility and participate more deeply in private sector dialogue. Jamaica’s private sector is vibrant and sophisticated and participation and sponsorship of relevant local initiatives, such as those led by the Private Sector Organization of Jamaica, have deepened IDB Invest’s network and its exposure to important private sector issues. 3. POSITIONING & VALUE PROPOSITION A key comparative advantage for IDB Invest in the Caribbean is the provision of non-financial additionality through advisory services and blended finance. Advisory services are a critical

Natasha Richardson Ebanks

Ways IDB Invest Engages in Jamaica’s Private Sector

NEWS FEATURES & VIEWS

tool for IDB Invest in Jamaica, allowing us to support business development by building relationships with clients that share our vision for development through the private sector. With blended finance, IDB Invest has access to concessional funding projects with high development impact where the actual or perceived risks are too high for commercial finance alone. We are also looking closely at ways to adapt our product offerings to respond to the needs of the market. 4. HOLISTIC SOLUTIONS As a member of the IDB Group, IDB Invest can leverage synergies across the Group to support upstream development and publicprivate dialogue helping to enable private sector investment in the country and the region. This ability to work across the Group also helps to provide clients with holistic, tailor-made solutions to more complex challenges. These are a few prongs of our approach in Jamaica, an approach that we will continue to expand and refine in response to the changing needs of our clients. There is no doubt that the last year has been unprecedented in terms of the challenges faced by countries and people around the world. The private sector will necessarily play a key role in the recovery and together we can ensure that we build forward in ways that ensure greater resilience to face future challenges and inclusion of all segments of society.

James Scriven is IDB Invest CEO

ADDITIONAL READING: https://idbinvest.org/en/newsmedia/idb-invest-and-seaf-promote-growth-and-productivity-s me-caribbean https://idbinvest.org/en/newsmedia/idb-invest-and-jmmbbank-promote-access-financingsmall-and-medium-sized-enterprises 26

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CSJP West Kingston Success Stories

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In my lifetime, I have never seen any other organization, or any other business, really take the youths and give the youths opportunity... Triston Morrison, CSJP Scholar

Often people would say, ‘oh, it's a ghetto community, nothing good is going to come from there.

Dr. Claudia Allen, CSJP Scholar

Claudia Allen, a CSJP scholarship beneficiary, is now a practicing OB-GYN at Victoria Jubilee Hospital, near the Trench Town community of Arnett Gardens where she was raised.

“CSJP helped me to become a doctor and to help my community”. "Medical school was something I always wanted to do, I wanted to be a doctor!" says Claudia Allen who hails from Trench Town. "What I saw as a child growing up in my community was a lot of women and children, having a lot of children and repeating the cycle over and over; you had thirty-odd year-old grandmas, which I found just ridiculous, and persons with five, six, seven kids, and it's all different baby fathers." Claudia wanted to become a doctor to help, so with the help of CSJP, she completed her medical degree and became an obstetrician and gynaecologist. "I really just wanted to (help) those same women and children I saw growing up who were affected by poor

sexual and reproductive health issues (and) chronic medical illness." Claudia now works at Victoria Jubilee Public Hospital (VJH), the largest maternity hospital in the English-Speaking Caribbean, and is now in a position to help others who grew up in similar circumstances. VJH is but a stone's throw from where she grew up in Arnett Gardens, a community in Trench Town. Although she no longer lives there, her parents still do and she visits frequently. "A lot of persons know me and call me by my first name. I am very approachable." Becoming a doctor was never an easy road for Claudia, as she faced many challenges. A former student of Wolmer's High School, she failed a subject when she did her first sitting at CXC exams. "It was on the morning of the exam I realized everyone else was going to extra class, and I was like, hold on, there was an extra class that I didn't 28

know about? Not that I could afford it anyway, but that was one setback." She persevered with the support of her teachers, but academics weren’t her only challenges. “Sometimes I would have to call Mommy and find out, is it safe to come home now? And if she said no, I would have to stay with a friend." Claudia was told about CSJP by a friend while already enrolled at medical school. "The first and second year the fees are huge, but the fees triple by the time you get to the clinical years," she explained, “so I really needed the help.” Claudia became a proud CSJP scholarship beneficiary and was able to secure the funds necessary to cover her tuition and boarding fees for the remainder of the clinical years. "It was much easier to focus on achieving, doing well and completing my studies." Today, she sees patients from the

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Triston Morrison, of Parade Gardens, has added programming, web design and mechatronics to his résumé thanks to CSJP scholarships.

community she grew up in every day. "As far as I know, there is not another doctor from that community who is still in touch with the community. “Persons have told me that they are inspired by me, by my family's journey and my journey to become a doctor, because often people would say, ‘oh, it's a ghetto community, nothing good is going to come from there.’” Claudia is living proof that Jamaicans don’t need to be limited by their zip code. "There are a lot of very brilliant persons, even some of the gunmen that run some of these communities, they are very intelligent,” she said, but many lack the drive to advance by honest means when crime is seen as an easier way to escape poverty. Educational financing is a major constraint, she said. "Giving these persons the help they need will help them, and the community,” she said, noting her story is one of the many, many others in which CSJP beneficiaries have dedicated their lives to building a better Jamaica.

CSJP Graduates following on-the-job training at the Jamaica Defence Force

"In my lifetime, I have never seen any other organization, or any other business, really take the youths and give the youths opportunity,” said Triston Morrison, reflecting on the impact of the Citizen Security & Justice Programme (CSJP) on the community of Parade Gardens. “I was here and with nothing, now I am a trained programmer, a 29

trained web designer, a trained mechatronics technician, so when I am going to look a job, people will have to take my résumé serious,” Morrison added. CSJP has created the perfect platform for Morrison to access the opportunities and help he needed, he said, noting, “I really want to thank them for that."

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Promoting sustainable livelihoods, protecting Jamaica’s watersheds The IDB, an executing agency of the Global Environment Facility (GEF) has supported the Government of Jamaica with an investment grant of US$3.9M since 2014, and a technical cooperation of US$300k since 2017, towards the Integrated Management of the Yallahs Hope watershed. The Yallahs and Hope watershed management units are located east of Kingston, on the southern ranges of the Blue and John Crow mountains, a UNESCO-recognized World Heritage site. Under the initiative, some 600 farmers were trained in sustainable land management and farming best practices and a School Watershed Action Group (SWAG) was launched.

Keeping the commitment to the inner city ABOVE: Jamaica Country Representative and General Manager for the Country Caribbean Group, Teresa Turner-Jones (center), arrives in Trench Town with an IDB team for a tour of the Kingston inner-city community. BELOW LEFT: Turner-Jones shares a light moment with team members, community leaders and Restorative Justice personnel from the Ministry of Justice. BELOW RIGHT: Members of the team visit Culture Yard, the home of Bob Marley.

ACHIEVEMENTS The Project, through the efforts of the Yallahs Hope Project execution Team of National Environment Planning Agency (NEPA) has: • Reforested over 500ha of degraded lands; • Engaged over 5,000 individuals in sustainable land management practice; • Converted over 1,000ha into sustainably managed lands; • Designed a Geographic Information System-based Decision Support System (GIS DSS); • Designed a Payment for Ecosystem Services scheme (PES); • Updated the Watershed Policy for Jamaica (Green Paper); and • Reviewed the Watershed Area Management Mechanism (WAMM).

Farmers who completed the Yallahs Watershed farmers training programme, L-R: Venese Mitchell, Garfield Willis and Marjorie Wallen

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I learnt to do farming as a business. I now keep a record of what I spend and what I get/earn and that tells me if I am selecting the right crop to plant. Marjorie Wallen, farmer (Mount Lebanon Farmer’s Group) St. Peter’s

I learnt how to balance and to save. I use what I have on the farm to fertilize (coffee) make my barriers (etc.). The programme has had a significant impact on the community and many young farmers who were not a part of it are looking forward to an extension.

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Garfield Willis, President, St Peter’s Vegetable and Coffee Group

Farmers undergo watershed protection training

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20 21 Fresh beginnings, new hope, greater opportunities and stronger partnerships. Whilst we continue to work virtually due to the COVID-19 pandemic, we look forward to working even closer with you in 2021 to provide greater support for the nation’s development agenda.

A stronger Jamaica for a brighter tomorrow.