The following is second part of the Government Senator Don Wehby’s contribution to the State of the Nation Debate which he opened in the Upper of House of Jamaica’s Parliament on Friday (June 25). See part I here.

The effort of each of us is required to overcome the COVID-19 crisis.

The Government requires our support, because through collaboration we can recover faster and stronger.

In April 2020, Prime Minister Andrew Holness commissioned the COVID-19 Economic Recovery Task Force with the objective of developing a comprehensive plan to respond to Jamaica enduring the adverse social and economic
fall-out due to the pandemic, and “rebuild Jamaica”, to attain even higher levels of economic and social development in the years to come.

Several sub-committees in key areas such as agriculture, construction & infrastructure, macro-fiscal and
manufacturing & export were formed and the work continues to “Build Back Stronger”.

Let us now look forward as we Build Back Stronger.

Forecasts for Growth

After four quarters of economic decline, the PIOJ has projected that the economy is set to grow by as much as nine per cent for the second quarter of 2021 and four to eight per cent for Fiscal Year 2021-22. These projections have found support among the private sector and economists.

The PIOJ’s preliminary forecast is based on the commencement of the recovery process relative to the low output levels recorded in the corresponding period of 2020. The pace of growth will depend on the roll out of the vaccine
programme and the consequent relaxation of COVID-19 measures.

I noted the new COVID-19 measures announced by the prime minister this week which include the reduction of the curfew hours and the re-opening of the entertainment sector. That is welcome news. However, we are still in the midst of a pandemic and we must not get complacent. In fact, we need to be more vigilant. Wear our masks, sanitise and wash our hands and social distance. It is always going to be a delicate balance, but we need to get the wheels of the economy turning in a responsible way.

Tourism

I expect that the rebound of the tourism sector will positively impact growth this quarter.

Minister of Tourism Edmund Bartlett recently shared that up to 85 per cent of hotel workers could be back to work by the end of the year. May saw the highest number of visitors to the island since the onset of the pandemic in March last year.

Recovery is under way!

Over the next two years, it is expected that 6,700 new rooms will be added to the current stock of hotel rooms in Jamaica. This will generate approximately 20,000 new part time and full-time jobs; US$1.5B of investments in the sector.

Jamaica continues to be a destination of choice even in the midst of a pandemic, so much so that the investments continue.

The eagerly anticipated Mobay Bypass project has gotten the green light and will support the new developments by reducing the congestion within Montego Bay, and connecting Kingston to Montego Bay via a highway. This is the first major highway development financed with our own resources, and not linked to a loan.

I was also pleased to see the recent update from the Minister of Tourism that tourism linkages have been doing well. JAMPRO is ready to support any initiative that will benefit tourism linkages.

I commend Minister Bartlett and his team for the work that has been done.

Stock Market

We are also noticing a rebound in the stock market main index which was up double digits this week. From all indications this positive trend is expected to continue.

Credit Rating

Standard and Poor’s and International credit rating agency, Fitch maintained Jamaica’s ‘B+ rating in the middle of the worst economic crisis in our history. These ratings show that the agencies are confident in the direction of the Government’s economic policy. This is despite 14 other countries in Latin America and the Caribbean being downgraded during 2020.

Net International Reserves

Net International Reserves were up to US$3.42 billion at the end of May, coming from US$3.32 billion at the end of April. US$3.42 billion is the highest sustained levels of international reserves in the country’s history.

MSME Funding

The MSME sector is a key driver for economic growth. All around the world, and it is the same for Jamaica, the MSME sector is a major engine of growth.

Typically, MSMEs account for more than 90 per cent of all firms, 60 per cent of employment and 40-60 per cent of output in most economies.

The Development Bank of Jamaica (DBJ) has been supporting the MSMEs by reducing interest rates on loans and granting moratoriums on over 30,000 loans valued at J$14.95 billion. The DBJ is currently executing a US$15-million project funded by the World Bank, which is focused on improving access to finance for MSMEs. A key component of this project is the expansion of the Credit Enhancement Facility (CEF) for MSMEs that are deficient in collateral.

Export Max

Another indication that we are building back stronger is the work that continues with JAMPRO’s Export Max Programme. Export Max is a three-year programme geared towards MSMEs, which provides focused capacity building,
advocacy and market penetration support to exporters and export-ready firms.

Despite the impact of the pandemic, JAMPRO saw an 18 per cent increase in new MSME exporters among the Export Max III cohort. Much of this increase in exports is being driven by companies from the fresh produce, processed foods and health and wellness categories.

The resilience of the MSMEs under Export Max III has been further demonstrated by the fact that 30 per cent of the companies recorded significant increases in their 2020 export sales over 2019, despite restrictions across the globe which impacted the movement of goods and services. These companies have expanded into new markets
in Europe, North America, the Caribbean and Latin America.

eCommerce is critical to growth and expansion for MSMEs. Over 50 per cent of our Export Max III companies are utilising this channel to drive exports.

Agriculture & Agro Investment

The effects of the pandemic on agriculture have been seen. Crises such as this COVID-19 pandemic place countries like Jamaica’s food security at risk because of our heavy reliance on imports. During 2019, the total value of food imports to Jamaica was $1.025 billion, with approximately 44 per cent of these imports supplied via sources in the United States.

We need to cut our food import bill in half by 2030. We can achieve this by investing heavily in agro-processing, manufacturing, and agriculture, by ensuring our farmers have good crop insurance and technical training to mass produce certain crops. I noted through the Opposition Spokesperson on Foreign Affairs that there is some alignment on the other side about the global market for crops such as Jamaican scotch bonnet peppers and the potential for creating value-added products at premium prices.

The shutdown of the tourism sector also had a ripple effect on agriculture by disrupting supply chains and creating imbalances in demand and supply for many farmers in Jamaica. The Ministry of Industry Commerce Agriculture
& Fisheries (MICAF), provided stimulus packages geared at assisting farmers in finding alternate markets for their produce. The Buy-Back Program; a J$440-million investment and the Say Yes to Fresh Campaign.

International Trade Administration

The Government of Jamaica has developed and is in the process of implementing a National Strategy to grow the Agribusiness Industry. One of the key recommendations of the Strategy is the establishment of a Food Security and
Agribusiness Council (FSAC). In the first instance the FSAC will execute the four-year agribusiness strategy. It is expected that the Council will be outcome focused and will:

• Guide the implementation of the Action Plan developed under this
• Strategy, and
• Guide the development of a National Agriculture Development Plan and
• Strategy that will ensure long-term sustainability and growth of the industry
• JAMPRO’s promotion of the agribusiness sector includes activities in the following
• areas:
• Large scale climate smart agriculture Improvement of land access
• Improvement in use of technology in agriculture
• The development of marketing strategies for the Jamaican Blue Mountain
• Coffee & the development of a strategy for the Yam sub-sector

Global Services & Business Process Outsourcing

I would now like to say a few words about Global Services and the Business Process Outsourcing (BPO) Industry. Jamaica continues to be a leading destination for outsourcing in the Caribbean due its location, talent pool and business friendly environment.

The BPO industry had to pivot during the pandemic. Through Government’s approval of the sector as an essential service, up to 30 per cent of the BPO workforce was facilitated with adjustments to the SEZ regime to allow over 11,000 Work-From-Home employees.

Given the success of the work from home model in the sector, one of the things we could consider is making this arrangement permanent through amendments to the SEZ legislation.

Today I am very pleased that the BPO sector has rebounded to pre-COVID levels creating some 43,000 jobs for Jamaicans. The industry will continue to grow with US$70 million in investment projects in the pipeline. Industry experts estimate that some 50,000 jobs or more could move out of Asia and into nearshore.

JAMPRO, through its Global Services Sector skills development programme, will train 24,000 persons trainees, and will continue to assist with ensuring Jamaicans have the requisite skills for filling jobs within the sector. This week the project is hosting a Careers Fair to bring young people into contact with future jobs. Some 4,000 industry jobs are on offer at the fair.

We must roll in the red tape and roll out the red carpet. Let us get this done- 50,000
new jobs.

Digital Transformation -National Business Portal

John F Kennedy said, “Change is the law of Life and those who look only to the past or present are certain to miss the future.”

The future is digital, and COVID-19 has accelerated the digital revolution.

The National Business Portal (NBP) supports the National Investment Policy by housing the Business-to-Government (B2G) online interface for all Government entities involved in the investment or business pre-establishment process. The NBP is being executed in three phases. The next phase of the service will involve B2G transactions to be implemented This by September 2021 and end by June 2022.

The NBP is one example of an initiative, part of a wider programme to provide digital government services. Greater cohesion and partnership across government in terms of digitisation is necessary to ensure we can surpass our competitors as the place to do business. The establishment of the ICT authority to drive digitisation across
government must therefore expedited. We cannot afford to be left behind as a country.

In the last section of my presentation today, I will focus on social services and issues that have a direct impact on the future state of the nation.

Low-Income Housing

The Government has committed to providing over 30,000 low-income housing units over the next five years through its New Social Housing Programme. So, as the country recovers from the pandemic and the economy rebounds, low income earners; poor families will have an opportunity to have a piece of land; a house they can call their own to raise their families and create generational wealth. This is inclusive growth. It is also important to note that this objective of 30,000 houses will ensure value for money through housing solutions that include innovative use of building materials, demonstrate climate resilience, affordability, and functionality.

Crime

I would now like to say a few words on crime in Jamaica.

Let me start of by recognising the Commissioner of Police, Major General Anderson, and Chief of Defence Staff, Major General Rocky Meade who have shown themselves to be competent, committed and strong leaders who have been marshalling their respective teams in these challenging times. I know that the security forces’ job isn’t easy, and it’s often compounded by a lack of resources.

I support the training of police personnel with respect to citizen interactions and the Government’s investment in technology to support crime fighting. Jamaica Eye for example has been assisting with investigating crime. With the help of private individuals and companies that have security systems we can expand the reach of Jamaica Eye even further.

I also acknowledge the work that has been done to make amendments to various legislation in support of the fight against crime such as the anti- gang legislation. The long-awaited Police Service Act is another piece of legislation aimed at transforming the Jamaica Constabulary Force (JCF) into a modern effective and efficient police service.

The reform of the JCF towards community policing will lay the foundation for the police to stabilise communities gripped by crime, build social cohesion, and in doing so, form crime prevention partnerships. The enactment of the Police Service Act alone will not make the difference, but it is a fundamental start to the change.

While I did not hear the Police Service Act highlighted as part of the legislative agenda for 2020-2021, I am hoping that the Bill will be tabled in Parliament before the end of this financial year.

I understand the legality issue regarding detention under the states of emergency and I respect that there is a court case. I am hoping the matter will be dealt with quickly so we can ensure we are using all the tools required to fight against the crime monster.

It has been made clear that the SOEs is not the long-term solution to the problem. It is a tactical and strategic tool which serves a particular purpose. It is one means to an end. I have to rely on the expertise of the JCF and JDF, and I have a lot of confidence in them.

The current Commissioner of Police indicated that the states of emergency enable the security forces to undertake critical activities that they would not have been able to do previously and based on the statistics I have
seen it has been an effective tool in crime fighting.

I strongly believe that as leaders of this country we have every reason to and will unite against the criminals who have caused us too much pain, too much hurt, and too many tears.

Putting aside politics and tackling crime together is key to achieving success. It also sends a strong signal to criminals that we are not divided, but that together we will make Jamaica safe for all.

Culture, Gender Entertainment & Sports

In the final section of my presentation today I want to highlight the work being done by the Culture, Gender, Entertainment and Sports Ministry and I believe that Minister [Olivia] Grange is doing a fantastic job.

Gender

I take note of the work being done to strengthen the mechanisms to protect and helpvulnerable women and men, through legislative changes such as the amendments to the Domestic Violence Act and the Sexual Harassment Act to give greater protection to those who are vulnerable. Initiatives such as the Women’s Entrepreneurship Support
Project to assist vulnerable women to gain independence and the MentorMe2020 youth Mentorship programme are some noteworthy initiatives being undertaken by the ministry.

Culture & Entertainment

I support Minister Grange wholeheartedly on the statement that Jamaica has a global competitive advantage in culture, entertainment, and sports.

Through our Culture Entertainment & Sports, Jamaica gave the world reggae music, our food—Jamaica jerk, blue mountain coffee, our culture and rich heritage tells the story of— Out of Many One People; our sportsmen and sportswomen are worldclass.

The Culture Entertainment and Sports sectors have been impacted by the pandemic but have remained resilient. The announcement of the reopening of the entertainment sector is welcome news. I know Minister Grange consulted widely to ensure the protocols for re-opening will help all of us to be safe. Well done, Babsy! I encourage
everyone to adhere to the safety measures and guidelines for the sector so that we can get together and feel alright and be safe!

Sports

Let me also use this opportunity to congratulate all our sportswomen and sportsmen for continuing to make Jamaica proud. As we look forward to the Tokyo Olympics, let me, in advance, congratulate all those who will make the Olympic Team. All the best as you represent Jamaica with true pride and joy and give of your best in Tokyo.

Education

I could not pass up the opportunity to say a few words on education. I firmly believe that if we fix education, we can fix Jamaica. Education is the game changer for Jamaica’s transformation as we Build Back Stronger.

In my opinion, education is a right not a privilege. Everyone deserves a good education. It is not an expense; it is an investment. The benefits of the investment will not be seen right away but gradually—five, 10, 15 years down the line.

We must do it in the interests of Jamaica and in the interests of the future.

COVID-19 exposed the digital divide and technology gap in our country. I quote from a Unicef article: “The pandemic has put the spotlight on the inequities of the education sector in Jamaica as never before, highlighting the digital divide in the country: in 34 per cent of households, children do not have exclusive access to an Internet device for education purposes. Also, there are glaring disparities between urban and rural areas.”

I believe that every child should have access to a tablet and a reliable internet service from they are four years old. By the end of this fiscal year, the Government will have handed over 125,000 tablets and laptops to our students to
allow them to access education in the virtual space. This is in addition to the provision of devices to teachers and the numerous donations that have been made by the private sector and charitable institutions. This effort so far is good, but we must do everything we can to close the digital divide as quickly as possible.

I salute our teachers, who have had to pivot to online delivery of teaching during the pandemic. So many have gone above and beyond the call of duty to ensure our children received instruction despite the closure of schools across the island.

COMMITTED TEACHERS IN JAMAICA

Teacher Taneka McKoy Phipps’ community blackboard initiative. Principal of Little Bay Primary and Infant School, Keron King who uses a bike to transport him to students to deliver weekly lessons. We have very committed teachers in Jamaica.

I am aware that the Jamaica Education Transformation Commission was established to undertake a comprehensive review of all levels of the public education system and I look forward to reviewing the findings and recommendations.

Education is an important vehicle to move Jamaica forward, and with this generation set to be in the driver’s seat soon, we owe it to them to ensure they are ready to navigate, so that they can lead Jamaica to a better place.

As we Build Back Stronger each focus area I spoke about today— the economy, agriculture, tourism, culture and others contributes towards us achieving our Vision 2030 –the ‘roadmap’ for making “Jamaica, the place of choice to live, work,
raise families and do business”. We owe it to ourselves and the future generations to deliver a world class quality of life for all Jamaicans, but we must be deliberate about it, we must remain focused despite the challenges, we must work together for a better Jamaica.

• Don Wehby is a Government senator and businessman.