PM’s ‘Super’ ministry takes on economic growth and job creation
Having adjusted to the idea of ‘super’ ministries covering more portfolios, departments and agencies of government since the advent of the 21st century, the emergence of the new ministry of economic growth and job creation has offered a telescopic view of how huge and important these ‘super’ structures can become in the search for growth and job creation.
The Jamaica Labour Party’s (JLP) 2016 general election manifesto insisted that its focus would have been on job creation, claiming: “We are confident that our 10-point plan for economic growth and job creation will generate real expansion of the job market and sustained growth in the long term.”
According to the Fiscal Policy Paper (FPP) tabled in the House last week, in 2016/17 the economy is projected to grow by 1.3 per cent, reflecting increased global output, strengthening of competitiveness in some industries, improvement in the business environment and the roll-out of several strategic investment projects, which are expected to result in an increase in economic activities and a consequent rise in domestic production mainly in: agriculture, forestry and fishing, expected to grow by five per cent; construction, projected to grow by 1.5 per cent; hotels and restaurants, projected to grow by 2.3 per cent; and electricity and water which is expected to grow by 2.3 per cent.
The JLP administration says its growth concept was built around a “growth triangle”, which refers to the close connection between housing, construction, water and energy. It noted that while housing and construction add more jobs and improves living conditions, they are heavily dependent on two main inputs – water and energy – which are both expensive and in short supply.
One of the highlights of the new government’s growth programme, the prodigious ministry of economic growth and job creation, based in the Office of the Prime Minister at Jamaica House, casts a huge shadow across the economic landscape like a constant reminder of the government’s commitment to the electorate.
Information gleaned from the estimates of expenditure, tabled in Parliament on Thursday, shows a massive movement of growth-oriented public agencies into Jamaica House under the new ministry.
It takes charge of a wide number of areas of interest including: agro business; domestic water supply; environmental regulation; factory construction; film and motion pictures; housing; land development and utilisation; land titling; main roads; national urban upgrading; port development and regulation; special economic zones; town and country planning; watershed management.
Falling under the new ministry are: the Agro Investment Corporation (AIC); Beach Control Authority; Forestry Department; Jamaica Promotions (Jampro); National Water Commission (NWC); National Works Agency (NWA); Negril/Green Island Area; Planning Institute of Jamaica (PIOJ); Port Authority of Jamaica; Housing Agency of Jamaica (HAJ); Maritime Authority of Jamaica (MAJ); National Environmental and Planning Agency (NEPA); National Irrigation Commission (NIC); National Land Agency (NLA); National Road Operation and Construction Company (NROCC); Real Estate Board; Rent Assessment Board; Road Maintenance Fund; Rural Water Supply Limited; Statistical Institute of Jamaica (STATIN); Urban Development Corporation (UDC); and Water Resources Authority.
The ministry is expected to spend approximately $8 billion in recurrent or housekeeping expenditure, including $1.6 billion in revenues from services provided by some agencies, which is income that the bodies are allowed to keep to help meet commitments.
It will spend $533 million on Capital “A” projects, which are those financed by the government, and a whopping $10.6 billion in Capital “B” or multilaterally financed projects, including in cooperation with: the Government of the People’s Republic of China, the Inter-American Development Bank (IDB), the Organization of Petroleum Exporting Countries (OPEC), the China Ex-Im Bank, the World Bank, the United Nations Development Programme (UNDP), the Caribbean Development Bank (CDB) and the European Union (EU).
Projects to be implemented in 2016/17 by the ministry cover: road rehabilitation, including the continuation of the Major Infrastructure for Development Programme (MIDP), which began under the previous JLP administration as the Jamaica Infrastructure Development Programme (JIDP), and completion of the Palisadoes Shoreline and Road project, both of which are being financed by the China Ex-Im Bank.
There is also the construction of new office facilities for the Ministry of Foreign Affairs and Foreign Trade in downtown Kingston, with funding from the government of China; the Economic Partnership Agreement (EPA) building project to facilitate increased production and more diversified export of agricultural and agro-processed products for the European market; a project to create an enabling environment for private sector competitiveness to help Jamaica “unleash productivity and growth” to be financed by the World Bank.
Over the past few years of the previous government, one of its greatest difficulties was in explaining the delays in implementing critical capital programmes, especially those which were funded by multilateral agencies. In response to questions raised by the Public Administration and Appropriations Committee (PAAC) of the House of Representatives, as the delays threatened the viability and integrity of capital projects, it was suggested that the slow procurement process was the basis for the delays.
Having wet their feet in terms of how the procurement process works and the loopholes which can contribute to the delay in implementing these programmes, especially those with multilateral input, the ministry now provides an environment with ample space, expertise and collaboration to improve on the efficiency and expedition of these critical growth-oriented projects.