The Government of Jamaica has approved a $200-million grant for The University of the West Indies (UWI) to facilitate the establishment of a Fiscal Research Centre (FRC).

Minister of Finance and the Public Service Dr Nigel Clarke indicated that the provision is “a special grant on top of the usual subvention of $200 million”, adding that “approval for the disbursement was given last Friday (October 18)”.

The finance minister was speaking during the project’s launch at the UWI Mona campus in St Andrew on Tuesday (October 22).

The FRC is a collaborative initiative spearheaded by The UWI Mona’s Department of Economics, with the support of the Ministry of Finance and the Public Service (MOFPS), the Inter-American Development Bank (IDB), and the University of Ottawa’s Institute of Fiscal Studies and Democracy (IFSD).

The FRC’s primary goal is to advance knowledge and expertise in public finance and public policy for the benefit of the region. This will be achieved through a combination of public and economic research, policy analysis and capacity building.

In his keynote address, Minister Clarke highlighted the government’s commitment to fostering strong fiscal institutions. He also pointed out that the centre is also intended to be able to serve a policy leadership role, “because you’re looking five to 10 years ahead, you’re looking at what’s happening internationally, you’re looking at what’s happening locally, and you are producing output”.

“The opportunities for research, teaching or learning of public financial management are very scarce in the region. Public financial management courses at an undergraduate level just do not exist; and that is one of the gaps that we’re seeking to plug with the establishment of a physical Research Centre here at the Mona campus of the University of the West Indies,” the Minister added.

The launch featured the signing of a memorandum of Understanding (MOU) between the UWI and the Institute of Fiscal Studies and Democracy (IFSD). A partnership agreement was also signed by the Finance Ministry, UWI and Inter-American Development Bank (IDB).

UWI Mona Principal Professor Densil Williams welcomed the institution’s partnership with the Government, IDB, multilateral partners, and all the others involved in the arrangement.

“I think that if we have an institutional arrangement that is now going to help us to better appreciate the power of fiscal discipline to drive that kind of stability that we need in the macroeconomy, the consequences are great,” he added.

The IDB, for its part, will provide US$250,000 for climate change research and US$400,000 for general research and capacity-building.

“We hope that this will be a nice seat for helping, along with contributions from others, both in kind and in finances; we also hope that we can help bring more partners to the table,” IDB General Manager for the Caribbean Region David Rosenblatt said.

The Fiscal Research Centre will strengthen and complement Jamaica’s fiscal oversight framework and engage in regional knowledge sharing.

“The Fiscal Commissioner is here and he’s in the process of finalising his team with the aim to get going in the next fiscal year. The idea is not that the Fiscal Research Centre duplicates or competes with the Independent Fiscal Commission. The Fiscal Commission plays an entirely different role. The Fiscal Commission is invested in today’s results, today’s policies and making sure that those are consistent with a medium-term framework and outlook,” Dr Clarke explained.

He added: “As Caribbean people, we recognise that our prosperity is inextricably linked with the prosperity of the region; and so, the expectation is that the Fiscal Research Centre will look into research concerning fiscal matters in other countries in the Caribbean.”

“What we’re domesticating is regional capacity here at the Fiscal Research Centre in Jamaica, and that will present, obviously, more fulfilling career options for those who participate in the Fiscal Research Centre,” the minister stated.

“Sustaining economic stability over the long term requires that we build domestic technical capacity. There is no better way to do this than ensuring that there is a centre on the Jamaican campus of our regional university that makes public finance courses available to undergraduate and graduate students and that produces and publishes research on fiscal policy matters,” he further stated.

For Kevin Page, IFSD president, collaborating with The UWI and IDB is “a special privilege”.

Sharing his outlook on the FRC, he noted, “We at IFSD have seen the positive impact of independent fiscal institutions and research centres worldwide in promoting understanding, debate and accountability on public finance issues as our political leaders grapple with major policy challenges.  The needs and opportunities are significant [and] we too look forward to the journey and collaboration.”