IMF return no easy ride; Shaw says hard work and sacrifice ahead for Jamaicans

Source: Jamaica Gleaner News (February 6, 2010)

FINANCE MINISTER Audley Shaw says the country's return to the International Monetary Fund (IMF) will mean "hard work and sacrifice" by Jamaicans.

The multi-lateral lending agency on Thursday approved a 27-month stand-by arrangement, paving the way for the country to borrow up to US$1.27 billion to support its medium-term economic programme and cope with the consequences of the global downturn.

"The agreement marks the commencement of a challenging, but decisive journey towards good governance, solid economic development and the restoration of hope for all Jamaicans," Shaw said in a statement on Thursday.

Jamaica rushed to the IMF for balance-of-payment support after turbulent world economic conditions crippled several sectors, bringing economic activities to a crawl.

The approval of the stand-by arrangement is expected to generate about US$1.1 billion in funding from other international financial institutions.

A disbursement of US$640 million is now available to Jamaica. The IMF on Thursday said that part of this first disbursement would be used to establish a financial stability support fund aimed at supporting the country's financial sector.

Coerced into trading

Financial institutions were coerced into trading in high-yielding government bonds for longer-term and lower-interest papers under a debt-exchange programme as Government moved to tighten the fiscal accounts.

Government had also announced a $22 billion tax package in December to rake in revenue, bringing to $46 billion in new taxes announced this fiscal year.

The finance minister said the moves were necessary in order to set the stage for financial boom.

"All members and sectors will share in the tremendous sacrifice before us as together we lay down an economic framework conducive to investment, job creation, increased productivity and the generation of significant foreign- exchange earnings," Shaw said.

Policies must be developed to counter impact of economic crisis on youth - UNESCO official

The need for governments, particularly in the Caribbean and Africa, to develop policies that will counter the impact of the global economic downturn, and climate change, on young people in these regions, has been emphasised by Assistant Director General for Social and Human Sciences at the United Nations Educational, Scientific and Cultural Organisation (UNESCO), Mr. Pierre Sané.

Speaking at a meeting of Caribbean Ministers with responsibility for Social and Sustainable Development, at the Jamaica Pegasus Hotel, New Kingston, on January 24, Mr. Sané stressed that both crises posed serious implications for societies and their people, particularly the youth.

"The youth, not just in this (Caribbean) region, but also in my own region, in Africa, are paying the price for an economic crisis which is nothing of their doing.and will be paying the price for climate change, for which they have no responsibility. If the youth, to whom we are going to pass on the (baton), lose hope, and are confronted with a future for which they see no way out for them, then, believe me, we are sitting on a time bomb," he contended, citing the need to keep the hopes and aspirations of this group alive.

In this regard, Mr. Sané pointed to a CARICOM Summit, scheduled for Paramaribo, Curacao, next week, to review work co-ordinated and undertaken by Co-Chairman of CARICOM's Commission on Youth Development, Professor Barry Chevannes, noting that "UNESCO is very encouraged and committed to supporting this initiative."

"I'm also encouraged by the participatory work that Professor Chevannes has undertaken in order to collect the views of the youth in the Caribbean. Six thousand youth have been part of this exercise. Therefore, what the Caribbean will examine next week is really the voice of young people in the region," he said.

Mr. Sané is also optimistic that the Ministers with responsibility for youth affairs would share UNESCO's concern of the need to address issues impacting this group "as a matter of priority," through the development of adequate and sustainable public policies, "that will allow the next generation to inherit a world, as we have inherited from the previous generation, that was better than the world before."

The three-day forum, which concluded on January 26, was staged by the Government, in collaboration with UNESCO, under the theme: 'Social Development Strategies for the Caribbean Youth in the context of the economic crisis'. It was attended by over 30 dignitaries, delegates and officials from 14 regional states, who participated in discussions and dialogue on policy responses to the financial and economic crisis impacting the region, particularly the region's youth, deemed among the stakeholders worst affected.

Source: JIS
Publish Date: January 27, 2010

Interim Results of The Jamaica Debt Exchange (JDX)

Under the Jamaica Debt Exchange (JDX) the Government of Jamaica has received submission forms, which are subject to verification, from holders aggregating more than 90% of the bonds eligible for the transaction.

Submission forms were still being submitted late yesterday (Wednesday), and the Government has received several requests from brokers to extend the submission deadline to allow them additional time to continue to work with their retail clients. Accordingly,the Expiration Date and the deadline for submission have been extended to 1PM on February 3, 2010.The expected settlement date for the transaction remains February 16, 2010.

In making the announcement, Hon Audley Shaw, Minister of Finance and the Public Service said "the success of the JDX is a critical component of Jamaica's economic programme and a prior action under the IMF Standby Arrangement that will clear the way for the full multilateral support package. This extraordinary external support, combined with the successful implementation of our reform programme, will set Jamaica on a path of sustainability and economic growth."

"The success of the JDX so far reflects our ability to come together as a community at this 'game changing' moment in Jamaica's history, and I wish to express the appreciation of the Government to the high level of participation already registered."

P.S. The above release was issued Wednesday by the Ministry of Finance and the Public Service, fulfilling the commitment made by the Minister, the Hon Audley Shaw, as he closed the debate on the economy in the House of Representatives on Tuesday (January 26).

Mr. Shaw told the House, Tuesday, "The Ministry is in the process of aggregating the response and expects to release a preliminary report tomorrow(Wednesday). The new date should be announced Wednesday, following the preliminary assessment of the response. The Ministry of Finance will then submit the preliminary report to the IMF for circulation to the board, in advance of the board meeting now set for next Wednesday." (JIS News)

Source: JIS
Publish Date: Wednesday, January 27th

Stern says Gov't Committed to Research to Stimulate Growth

Minister of State in the Ministry of Industry, Investment and Commerce, Hon Michael Stern, says that the Government has remained committed to stimulating a culture of research to improve the nation's health, as well as its ability to generate investments and jobs.

Mr. Stern said that the practical use of science, technology and innovation would be crucial to the success of this policy.

"As Jamaica grapples with the challenges in the global market place, we are intensifying our efforts towards meaningful and sustained growth through research and development," he said.

The junior Minister was the main speaker at the Caribbean Young Scientists and Technologists Conference at the Sunset Jamaica Grande Resort in Ocho Rios St. Ann, January 20-22. It was hosted by the University of Technology (UTech).

Mr. Stern, speaking at the opening session on Wednesday (January 20), thanked UTech for hosting the conference, which sought to promote and increase the numbers of "young, brilliant, internationally competitive scientists."

"This Conference is an excellent initiative, which will foster cross-fertilisation of ideas, research, networking and healthy competition among our youth in the area of science and technology," he stated.

Mr. Stern said his Ministry encourages and supports innovation aimed at stimulating new demand-driven products. For example, he said that the Technology Investment Fund, which it has set up to support the commercialisation of technology-based products and services, is already yielding positive results.

He also noted that 80 percent of the projects benefitting from the Fund had been successfully commercialised, and include projects in telemedicine, ICT, bio-technology and flavour technology.

"Our ability to move products from research and development, through the various stages of the value chain will, in a very real way, determine our capacity to be more competitive in the world market," he noted.

He observed that the Ministry of Industry, Investment and Commerce and its agencies were key change agents in Jamaica's economic development, pointing to efforts of agencies such as the Scientific Research Council (SRC), Jamaica Intellectual Property Office (JIPO), the Bureau of Standards Jamaica (BSJ), Jamaica Business Development Corporation (JBDC) and Jamaica Trade and Invest (JTI), which provide vital elements needed to convert research and development into products, business, trade and, eventually, dollars and cents.

He urged the Caribbean region to continue to explore gaps, in terms of knowledge, and seek to share information that could generate empowerment.

He said that despite the limited resources, there is an urgent need to develop a common research strategy in areas that would seek to affect the region, including the effects of deforestation, climate change and environmental degradation.

"I want you to recognise that our development agenda, as a region, must focus on environmental sustainability, exploring the various uses of raw materials, food security, the potential of some of indigenous foods and spices and importantly, the opportunities that can be derived to increase the earning power of Micro, Small and Medium Enterprises (MSME) businesses through improved efficiency, quality and product diversity," he stated.

Source: KINGSTON (JIS)
Publish Date: Saturday, January 23, 2010