With what is set to become a new and useful tool in measuring growth, the Planning Institute of Jamaica (PIOJ) yesterday launched its Inclusive Growth Index Framework (IGIF).

Following some six years of research and conceptualisation, the tool built around seven key pillar or indices aims to expand the traditional growth measurement model as it assesses national growth through some 44 other indicators including those across social and environmental importance.

Developed by the PIOJ’s Growth Inducement Programme (GIP) with funding from the World Bank’s Foundation for Competitiveness and Growth Project (FCGP), the IGIF comes as a response to the demand for a measurement tool that considers inclusive and sustainable growth factoring areas such as health, human capital, environmental quality, wealth, social protection, safety and security, poverty reduction and the role of the informal economy.

Among its many benefits is the belief that it will provide a broader based measurement of the overall health of the local economy.

Shifting focus from the sole use of the gross domestic product (GDP) as a single measure of progress, which economist since 1934 have used to quantify and compare basic growth between countries, the IGIF is to allow for more inclusivity as it provides a comprehensive understanding of the inter-relatedness of some of the key drivers of growth needed for sustainable development. This, as it also serves a wider cross section of stakeholders including policymakers, researchers, journalists and several others.

Lauding it a revolutionary tool and milestone achievement, director general of the PIOJ Dr Wayne Henry said it will aid the country’s ability to achieve the goals of its flagship development blueprint, Vision 2030.

“By consolidating indicators relevant to Jamaica into key sub-indices and a composite index, the IGIF provides a comprehensive basis for measurement, tracking, and in-depth analysis offering valuable insights for the creation of policy responses and proactive initiatives tailored to our people’s needs,” Henry said during a hybrid launch event on Thursday.

“While we acknowledge the existence of global indices such as the UNDP’s Human Development Index (HDI), the IGIF distinguishes itself by being tailored to Jamaica’s specific situation. Its wider scope and focus on understanding the inter-relatedness of key drivers of growth makes it a powerful tool for informed decision making and sustainable development planning,” he noted.

Renowned economist Dr Damien King, welcomed the new tool as an important driver for economic policy, calling for sustained marketing and communication of its agenda going forward.

“It is important that it continues to be produced and shared and I hope that the capacity has been put in place for it to be sustainably executed and communicated every year,” he stated.

The economic tool, which remains a work-in-progress, will be infused into the findings of the PIOJ’s quarterly reports.

According to James Stewart, senior director for economic planning, research and policy at the PIOJ, the groundbreaking framework will enrich the tool kit of the national planning agency.

“The intention is for it to be featured in our flagship publication, ‘The Economic and Social Survey of Jamaica,’ with annual updates of its findings shared at our quarterly press briefings. We intend to start the awareness in 2024 with a target to begin sharing the results in 2025,” he said in response to questions posed by the
Jamaica Observer about its planned format and timeline for roll-out.

“As we embark on a period of rigorous testing to ensure the robustness of the IGIF, we anticipate further refinements to fine-tune its operations. Once operationalised the PIOJ is committed to integrating its insights into various faucets of our work. Similar to the other tools we use, the IGIF will assist in the development of policy advice and recommendations provided to policymakers at the highest levels. We will also incorporate insights from the IGIF into our discussions with international development partners, enhancing collaboration and alignment with the Sustainable Development Goals [SDGs],” Stewart stated.

“We eagerly await its evolution and urge our esteemed stakeholders to embrace this tool in their research and decision making process,” he concluded.