Jamaica CAS 2010-2015 _Missionfinal_.pdf

COUNTRY ASSISTANCE STRATEGY

(2010-2015)

JAMAICA

Table of Contents

Glossary and Acronyms……...………………………………………………………………………… i-iii

INTRODUCTION…………………………………..……...………………….………………1-4

The Country Context………………………………………………………………………1

Host Country Priorities and Political Commitment to Reform……………………………3

OVERALL STRATEGIC APPROACH AND PRIORITIES……..……………..…...…….4-9

DETAILED DISCUSSION OF U.S. ASSISTANCE PRIORITY GOALS………….…....6-21

Priority Goal 1 – Increasing Peace and Security by Reducing Crime and Corruption……6

Priority Goal 2 – Promoting Economic Prosperity and Sustainable Development……...11

Priority Goal 3 – Investing in People…………………………..……………………..….15

Priority Goal 4 – HIV/AIDS……………………………………………………………..19

APPENDICES

Appendix I: Resource Assumptions

Appendix II: FAA 118-119 Assessment for Jamaica 2008

Appendix III: Key Issues for Consideration in Country Assistance Strategy for Jamaica

Appendix IV: Overview of CAS Development Process

Appendix V: CAS Consultations

Appendix VI: Schedule of CAS Consultations

Bibliography………………………………………………………………………………………………. iv

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Glossary and Acronyms

CAS Country Assistance Strategy

CBO Community Based Organization

C-CETT Caribbean Centers of Excellence in Teacher Training

CDC Centers for Disease Control

CIDA Canadian International Development Agency

CPI Corruption Perception Index

DEA Drug Enforcement Agency

DFID Department for International Development (United Kingdom)

DHS Department of Homeland Security

DOD Department of Defense

DOS Department of State

DPP Office of the Director of Public Prosecution

EEH Expanding Educational Horizons Project

FBI Federal Bureau of Investigations

GDA Global Development Alliance

GDP Gross Domestic Product

GOJ Government of Jamaica

GSAT Grade Six Achievement Test

IADB Inter-American Development Bank

ICE Immigration Customs Enforcement

ICT Information Communication Technology

IDP International Development Partners

JCF Jamaica Constabulary Force

JLP Jamaica Labour Party

JUST Justice Undertaking for Social Transformation

LFMC Local Forest Management Committees

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MLO Military Liaison Office

MNS Ministry of National Security

MOE Ministry of Education

MSM Men who have Sex with Men

NAS Narcotics Affairs Section

NEPA National Environment and Planning Agency

NGO Non Governmental Organization

NRA Natural Resource Management

NSP National Security Policy

ODPEM Office of Disaster Preparedness and Emergency Management

OFDA Office of Foreign Disaster Assistance

OGAC Office of Global AIDS Coordinator

PA Protected Areas

PARE Protected Areas and Rural Enterprise Project

PEPFAR President’s Emergency Plan for AIDS Relief

PESP Primary Education Support Program

PIOJ Planning Institute of Jamaica

PLHIV People Living with HIV

PM Prime Minister

SDC Social Development Commission

TNC The Nature Conservancy

UNRC United Nations Resident Coordinator

UNDP United Nations Development

USAID United States Agency for International Development

USDA United States Department of Agriculture

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USFS United States Forest Service

USG United States Government

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Introduction: The Country Context

Relevant political, economic, security, environment and social trends:

Located on the United States’ third border, Jamaica’s interaction with our country is deep and continuous. Approximately 1.5 million people of Jamaican extraction live in the United States, more than half of Jamaica’s current population. Three million people travel between our two countries each year, including over 2 million U.S. citizens traveling to Jamaica. The Mission protects and serves more than 3.5 million U.S. citizens visiting Jamaica and the Cayman Islands annually as well as 20,000 American citizens who reside in Jamaica and the Cayman Islands full time.

Jamaica’s economic performance has oscillated over the past few decades. Reforms initiated in the 1980s diversified the country’s economic and export base, increasing the share of non-traditional exports until a lack of competitiveness and the steady decline of the garment sector stalled the diversification process after the mid-1990s. Bouts of macroeconomic instability during the 1990s prompted demand management measures, led by monetary contraction. Tight monetary policy helped to slow inflation and stabilize Jamaica’s exchange rate, but resulted in high interest rates, stymied growth, and high fiscal deficits (largely due to an increase in debt servicing costs). Debt service and personnel costs leave less than 15% of the budget available for government operating costs and capital expenditures in health, education and infrastructure.

In September 2007, the island’s political landscape changed dramatically when Prime Minister (PM) Bruce Golding’s Jamaica Labor Party (JLP) won national elections after 18 years in opposition. The Government of Jamaica (GOJ) is constrained by a lack of resources, anemic economic growth, high unemployment and inflation, and a debt-to-GDP ratio of 126%. Progress on debt repayment and modest budgetary efficiencies is stymied by recent recurrent natural disasters as well as catastrophic increases in global food and fuel prices. With over 1,400 murders committed since January 2008 (including 77 children), the high levels of violent crime compounded by deep and entrenched corruption also pose severe threats to stability in Jamaica.

The new government has appointed energetic reformers to key positions and placed critical champions of national integrity in important agencies. With the help of foreign experts and public opinion increasingly intolerant of high-level corruption, these reformers are beginning to use their legislative and statutory authority to act as change agents in a country long accustomed to “business as usual”. There is concern that as security is tightened in Mexico and Central America that narcotics traffickers will view the Caribbean as an exploitable weak link in the drug and larger governance enforcement chain in the Americas. Efforts to clean up ghost employee and sub rosa procurement mechanisms have resulted in at least one well-publicized assassination. State and society appear to be reaching a new tipping point: either they go forward with new energy not seen thus far or continue to tolerate the presence of rogue states within the state, which will inevitably lead to criminal networks penetrating and weakening the justice system, government and the political process; a condition that could eventually lead to the demise of the state.

How the GOJ responds to corruption and crime is critical for Jamaica’s economic recovery. With no changes to the political status quo, a high proportion of economic activity will remain outside

‐ 2 ‐ the formal sector. Without needed revenues, Jamaica cannot hope to manage its catastrophic debt re-servicing agreements, estimated to equal annual income from the entire tourism sector, and provide social services to its people at the same time. Political corruption thus directly causes the economic shortfall Jamaica endures today. According to estimates supplied by the Jamaica Chamber of Commerce, 50-60% of the island’s economic activity already lies in the grey sector, part of which is easily explained by Jamaica’s burdensome and counter-productive system of business licensure and tax enrollment.

Relevant analytical documents and third-party assessment of country performance and conditions:

Jamaica is a lower middle income country that has experienced modest long-term growth over the past several decades. The United Nations Development Programme’s (UNDP) Human Development Report for 2007/2008 places Gross Domestic Product (GDP) in Jamaica at $4,291 and ranks the country 101 out of 177 on the Human Development Index scale. The country has made notable progress on many social indicators and is expected to achieve most of its Millennium Development Goals. Life expectancy is 72 years and is comparable to many developed nations. Primary and secondary school enrollment is near universal. The incidence of poverty among the general populace has declined for the past ten years reaching a low of 19% in 2003 - down from 30% in 1990. The infant mortality rate fell from 63 per 1,000 births in 1990 to 43 per 1,000 births in 2007 while the maternal mortality ratio declined from 430 per 100,000 in 1990 to 400 per 100,000 in 2007.

Despite progress on the social front, Jamaica lags behind other lower middle income countries on several governance and economic indicators. According to the World Economic Forum’s Global Competitiveness Index - a broad measure of both future economic growth prospects and the effectiveness with which countries utilize existing physical and human capital resources - Jamaica ranks 78th, well below Puerto Rico’s 36th and Barbados’ 50th ranking. On the World Bank Governance Indicators for 1996-2007, Jamaica ranks well below the Caribbean average in Voice/Accountability, Political Stability, Government Effectiveness, Regulatory Quality, Rule of Law and the Control of Corruption. According to Transparency International’s 2008 Corruption Perception Index (CPI), Jamaica’s rank continues to fall, placing 96th out of 180 countries with a

3.1 score compared to 86th position in 2006.

Although Jamaica has achieved near universal primary and secondary education enrollment, these advances have been largely overshadowed by the relatively poor performance of students.

The fact that only 63.5% of students achieved mastery on the Grade 4 literacy test exemplifies the performance dilemma within the education system. Grade Sixth Achievement Test (GSAT) scores fluctuate between 40% and 50%, with girls outperforming boys by 20 percentage points.

The wide disparity in performance that exists between boys and girls only exacerbates the high unemployment rates of males between the ages of 15-24. Estimates place 145,000 youth, most of them males, out of work. Lack of education is perceived to be a major driver of crime and political instability in the country.

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With regard to the HIV/AIDS epidemic in Jamaica, there is a need to consolidate gains and prevent backsliding. The overall HIV prevalence rate is increasing (from 1.5% to 1.6%) as more people receive treatment and live longer. While overall prevalence may seem low compared to other countries, the prevalence rate among commercial sex workers is 9% while the rate for men who have sex with men tops 30%. Complicating the situation is the fact that almost 60% of people living with HIV/AIDS do not know their status. This is very concerning in a country where multiple concurrent sex partners, intergenerational sex and transactional sex are common, particularly in view of the fact that safe sex practices have shown no increase in a decade.

Jamaica’s natural resources contribute significantly to the island’s economy. Major industries such as tourism, bauxite, and agriculture can have negative impacts on the natural resources on which their continued sustainable growth depends. This is exacerbated by natural disasters such as hurricanes and floods that have intensified as a result of severe weather events, organic rather than planned development, and deforestation. USAID/Jamaica will continue to support where possible all environmental issues including disaster reduction measures related to the priority areas outlined in the Country Assistance Strategy (CAS) in keeping with the U.N. Millennium Development Goals including Ensure Environmental Sustainability.

Host Country Priorities and Political Commitment to Reform:

Initial consultation with various high-level Ministry officials, including the Prime Minister, revealed three major host country priorities: reducing crime and violence, creating economic opportunities and improving basic education, all with a focus on integrating youth into the economy, polity and society. Officials from the Ministry of National Security (MNS) and the Planning Institute of Jamaica (PIOJ) requested that the U.S. Law Enforcement Core Group (DEA, FBI, ICE, NAS, U.S. Marshals) continue to assist with drug control and law enforcement, that DOD through the MLO office continue to improve the Jamaican military's counter narcotics and counter terrorism capacity, and that USAID continue to provide assistance in community security, crime prevention, restorative justice, and community involvement in identifying and addressing areas of greatest needs. GOJ representatives also encouraged USAID to focus on the nexus between education and security by expanding on currently existing approaches to improving literacy at the primary school level. The GOJ also suggested that USAID assist in addressing the re-engagement of youth and reinforcement of values through civic and life skills education. In addition, the GOJ recognizes the strong linkages between poverty and crime and urged the USG through USAID and the State Department to support their efforts to reform key sectors of the Jamaican economy, boost agricultural production and reduce the debt burden to permit increased investment in social services such as education and health.

Jamaica boasts sophisticated national development strategies that guide U.S. assistance. The first is Vision 2030, Jamaica’s long-term, people-centered development plan to achieve developed nation status. This plan outlines several strategic priorities: the development of human resources; international competitiveness; environmental sustainability; health; social protection; science and technology innovation; effective governance; and law and order.

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Another key strategy is the National Security Policy (NSP), particularly relevant for U.S. law enforcement agencies operating in Jamaica. This plan is the government’s holistic blueprint for coordinating the country’s major security policies, goals, responsibilities, and actions.

Moreover, it lays out a vision for establishing a safe and secure environment in which all Jamaicans can enjoy a better quality of life and realize their full potential.

How the U.S. relationship with the host-country affects its ability to implement programs:

Relations between GOJ and U.S. officials remain strong, facilitating the implementation of USG programs. U.S. representatives across all agencies enjoy unfettered access to GOJ counterparts, political leaders, and business and civil society leaders. The Ambassador regularly consults with the Office of the Prime Minister on issues of mutual concern. Likewise, strong coordination between the U.S. Law Enforcement Core Group (DEA, FBI, ICE, NAS, U.S. Marshals) and Jamaica's Security Forces (Police, Military, Customs and Immigration) produces fruitful results against drug trafficking, homicides of police officers, passport/visa fraud, illegal immigration, lottery and financial scams, human, arms, cash, and technology smuggling, commercial fraud, peonage, and apprehension of U.S. fugitives.

The USAID Mission is an equally valued partner among all GOJ Ministries, maintaining notably good relations with the Office of the Prime Minister as well as the ministries of Education, Agriculture, National Security, Health, Commerce and Industry, Finance and Tourism. Recent coordination between the Office of Disaster Preparedness and Emergency Management (ODPEM) and USAID’s Office of Foreign Disaster Assistance (OFDA) in response to Tropical Storm Gustav characterizes the openness of the bilateral relationship and the degree to which the U.S. government is able to implement programs. The close working relationship between the two nations is further demonstrated by the Office of the Prime Minister’s interest in U.S.

assistance programs, as the Prime Minister himself often meets directly with U.S.-funded assessment teams. Obstacles to policy dialogue and project implementation are rare.

Overall Strategic Approach and Priorities:

Embassy Kingston’s central objective is to foster a more secure, democratic, prosperous, and stable partner for the benefit of the United States and the international community. The 2010 Mission Strategic Plan outlines the top USG priorities as supporting anti-corruption, transparency, and good governance, promoting economic prosperity and sustainable development, and countering organized illicit activities, including narcotics trafficking. To date, U.S. foreign assistance to Jamaica also has supported domestic and international security, economic reform, law enforcement, education, family planning, and HIV/AIDS.

To obtain higher impact, U.S. government agencies, including USAID, are adopting a narrower, more focused approach in responding to selected GOJ priorities. The 2010-2015 Country Assistance Strategy for Jamaica will address social and economic issues that contribute most directly to the high level of violent crime and vulnerability to transnational criminal activity.

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1. Increasing Peace and Security by Reducing Crime and Corruption

U.S. assistance, through NAS, ICE, MLO, and USAID, will strengthen Jamaica’s capability to fight domestic and transnational crime and corruption and counter terrorism by focusing on programs that build institutional capacity and support security sector reform within the Ministry of National Security and the Jamaica Constabulary Force. Likewise, it will facilitate the capture, extradition, and prosecution of major criminals engaged in organized crime. Resources will be used to further institutionalize community policing within the Jamaica Constabulary Force and expedite its expansion island-wide. As part of community policing efforts, U.S. assistance will strengthen civil society’s role in community transformation and in fostering partnerships with the police, with the ultimate goal of managing conflict and crime at the community level.

Additionally, U.S. assistance will raise public awareness regarding the impact of corruption on Jamaica’s security and economy, reduce opportunities for corruption through policy and regulatory reform and enhance the capability of the GOJ to investigate and prosecute both public and private sector corruption. Moreover, U.S. resources will assist in engaging youth through civic participation and awareness campaigns, helping to inculcate a culture of lawfulness among this population.

2. Promoting Economic Prosperity and Sustainable Development

The USG, through USAID, will help the GOJ achieve economic growth by promoting free market economic policies, streamlining government regulations, and improving the job-relevant skills of the workforce. Programs and activities will fall under the trade and investment enabling environment program element as well as the agricultural program area within the Foreign Assistance Framework. Support will continue for sustainable rural development in order to increase food security and mitigate the effects of losses stemming from recurring hurricanes by reinforcing key risk reduction strategies including improving land management in our upland areas to reduce land degradation and resource vulnerability. USAID will continue to work in biodiversity-sensitive rural areas, including the Cockpit Country and the Blue and John Crow Mountains but not exclusively, in order to address environmentally degrading agricultural practices, support the revitalization of higher-value tree crops such as cocoa and coffee, and increase producer and buyer access to better market information. U.S. assistance also will foster economic empowerment through workforce development training and access to credit programs, focusing on urban and rural communities that receive complementary community policing support. Programs will give particular consideration to youth, as their economic empowerment is a condition for active participation in community life, reducing crime, and sustaining peace in violence-prone communities. Other cross-cutting themes such as disaster risk reduction and sustainable environmental strategies will be intertwined with priority areas.

3. Investing in People

U.S. assistance, through USAID, will continue supporting programs that strengthen the quality, efficiency, and equity of the primary education system, with a focus on improving literacy and

‐ 6 ‐ numeracy skills. This will be accomplished through a combination of policy dialogue, technical assistance, and commodity support for the education transformation initiative within the GOJ’s Ministry of Education. USAID will take advantage of opportunities to engage in private sector partnerships in order to build programming synergies and leverage private resources to cover funding gaps in the sector. USAID will also explore programs for out-of-school youth and programs that foster a successful transition from school to work.

By the end of the Country Assistance Strategy period, the USG envisions the following transformation-based development scenario for Jamaica: improved trade and economic growth;

more efficient business processes; improved agricultural production and food security; ;

improved environmental conservation practices; improved disaster risk reduction strategies;

improved literacy at the primary school levels; reduction in the perception of corruption and the acceptance of corruption; increased public confidence in law enforcement; community policing being practiced across the island; and a reduction in violent crime nationwide. The expected end state reflects the impact that programs and initiatives will have on confronting some of Jamaica’s most obstinate socio-economic challenges.

The broader cross-cutting themes of youth, anti-corruption, and good governance will reinforce synergies among technical areas throughout the life of the strategy. Addressing the needs, concerns, and perceptions of youth will be integral to reducing crime and violence in Jamaica.

At the same time, legislative and regulatory reform--specifically business process streamlining and anti-corruption measures--will provide a better enabling environment for private sector growth and job creation. Institutional capacity development initiatives will place a premium on good governance practices and seek to mainstream accountability, transparency, and inclusiveness among the various GOJ entities, non-governmental organizations, and private sector businesses that receive development assistance.

Priority Goal 1 – Increasing Peace and Security by Reducing Crime and Corruption

A. Situational Analysis/Problem Statement:

In July 2008, public opinion polls listed crime and violence and, for the first time, corruption as the two most serious problems facing Jamaica. Jamaica’s onerous obligation to servicing debt (126% of GDP) severely constrains public expenditure for critical investments in education, health, and justice, which are the foundation of a functioning society that respects the rule of law.

Crime and violence is the single most debilitating factor in attempts to build Jamaica’s economy

– in turn, a critical condition for creating alternatives to engagement in criminal activities. The high cost of security constitutes a serious barrier to investment and the competitiveness of key sectors such as tourism and manufacturing. The nexus between crime, corruption, and entrenched political culture of patronage, and waste and abuse of state resources fuels Jamaica's crime epidemic and social instability. Weak, or in some cases absent, community-level governance structures limit access to and availability of social services and licit economic pursuits, leaving the populace few alternatives outside of criminal ventures.

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Jamaica’s youth, particularly boys and young men, are the main perpetrators and victims of crime. The age of participation in gangs is as early as six years. Sustainable change will require addressing at-risk youth populations, starting at the elementary level, in order to reverse the acceptance of violence and provide real alternatives to a life of crime.

Addressing youth crime and violence requires an approach that focuses on prevention and includes: improving the quality of education to increase basic literacy and numeracy;

reawakening citizenship and engendering a culture of lawfulness and compliance; workforce development; reducing youth unemployment to provide alternatives to crime as a career;

enabling and encouraging youth to take on leadership roles within communities; and, improving parenting skills.

Jamaica’s inefficient police and judicial systems are weak links in addressing both corruption and crime. The justice system lacks the capacity to investigate and adjudicate crime in a timely fashion and fails to inspire confidence in Jamaicans that it is accessible, fair, and capable of delivering justice. Organized crime poses a significant risk. As resources flow into Central America to fight gangs, terrorism, and drug trafficking, there are concerns that Jamaica will become a more attractive target for criminal networks because of its weak governance systems.

The situation is now dire and there is an extremely narrow window of opportunity which, if missed, will lead to Jamaica’s further decline if crime and corruption continue unabated.

Concerted efforts are required to deal with the illicit drug trade and the counterpart trade in black and grey market weapons that have replaced the legitimate economy in parts of Jamaica. These efforts include interdiction, building investigative capacity to protect Jamaica’s borders, and supporting the GOJ’s anti-corruption efforts. A one-sided approach that simply strengthens state actors will not work. The communities, who are victims of criminal gangs, must begin to see the police not as enemies, but as allies if crime is to be prevented. Therefore, continued substantial investment in building the capacity of both police and citizens to develop problem-solving partnerships must be part of the solution.

The time is especially opportune to support and build on the apparent momentum within the GOJ to seriously pursue anti-corruption measures. The USG is already leading an effort to engage the broader donor community in supporting a comprehensive GOJ action plan for anti-corruption reforms. Many of the elements of such an action plan have been identified in a recent USAID Corruption Assessment and which has been endorsed by the GOJ.

B. Critical Assumptions and Risks:

Successful implementation of U.S. anti-corruption assistance necessitates the continued political will of the current Golding administration to reform the judiciary system and various elements of the government. The U.S. approach to law enforcement is contingent on the continued partnership, leadership, and cooperation of GOJ officials. Sustained efforts to reduce crime and violence also will require an appropriate allocation of resources to concerned ministries and national enforcement agencies. Although political action against crime and corruption may produce political backlash against key reformers, inaction carries a much higher opportunity cost

‐ 8 ‐ for Jamaica. The GOJ cannot hope to manage its catastrophic debt re-servicing agreements and provide much needed social services to its people without stemming the flow of economic activity that lies outside the formal sector.

C. Assistance Approaches:

U.S. assistance in Jamaica aims to advance peace and security by reducing the endemic proportions of crime and violence that exist throughout the island. This goal will be advanced through concerted efforts in law enforcement restructuring and reform. The U.S. Law Enforcement Core Group (DEA, FBI, ICE, NAS, U.S. Marshals) and USAID maintain a well-established presence in Jamaica. These agencies will continue to address the conditions that undermine peace and security on the island by providing training, needed equipment, and material to the relevant security elements in Jamaica. The introduction of anti-corruption support, through ICE, NAS and USAID during this strategy period seeks to capitalize on opportunities that exist within the reform agenda of the current government.

On the prevention side, a major objective of U.S. assistance will be to implement programs that resolve the underlying political, economic and social causes related to crime and corruption. The Jamaica Constabulary Force has adopted the recommendations of a comprehensive strategic review which forms the basis of a reform process that is now underway. The GOJ has identified culture change, corruption, oversight and accountability, recruitment and training and communication, and information management as its priorities from the review. USG assistance will target culture change, anti-corruption and managerial systems. For example, NAS and ICE have committed to target the Anti-Corruption Branch, which was also identified in the strategic review as a key element of reform. Community policing is also one of the elements recommended for implementation. USAID has gained considerable traction with its Community Policing initiative, obtaining strong endorsement from the Ministry of National Security (MNS).

Based on the recommendation of a JCF and USAID sponsored evaluation, the JCF has adopted community policing as a national policy and developed a model for island-wide implementation.

USAID, with the collaboration of UNDP and the Department for International Development (DFID), is financing the rollout of Community Policing across the country and is now in the process of accelerating efforts to provide institutional support to the JCF and the Social Development Commission (SDC).

An integral part of USAID assistance will be the introduction of new activities that emphasize a youth-centric approach to crime and violence prevention. These programs will entail increasing the civic awareness and participation of adolescents and young adults, while simultaneously creating positive social space within vulnerable communities. Pilot mentoring programs that foster and develop youth leadership skills will complement this programming.

Anti-corruption assistance from USAID will also focus on raising societal awareness. Initiatives will include a public education campaign targeting youth populations through an integrated civic education program. Such an initiative will dovetail with the objectives of the Expanding Educational Horizons project and build on efforts to integrate civic education into the primary

‐ 9 ‐ and secondary school curricula. The intent of the public awareness campaign is to raise the consciousness of citizens on good citizenship issues. Likewise, the campaign aims at breaking down the culture of non-compliance with laws, regulations, and procedures, ultimately undermining support for the entrenched sense of public entitlement.

The USG, through NAS and USAID, will provide critical assistance to the GOJ’s efforts to implement anti-corruption reforms. U.S. assistance in this area largely follows the recommendations of a recent corruption assessment for Jamaica prepared for USAID by a team of local and international experts. The report urged financial and organizational support from USAID/Jamaica in several priority areas, the first of which is to provide organizational support for a forum of top anti-corruption champions in the justice sector, key ministries, and public sector agencies. The purpose of such a forum would be to bring together the country’s anti-corruption champions to close ranks, share best practices, interact with multinational counterparts from comparable jurisdictions, and support operational efforts to institute stronger prevention systems and a culture of voluntary ethical conduct within state bodies. The USG will also provide financial support for key short-term personnel secondments in the Directorate of Public Prosecutions, the Customs Department, or the Anti-Corruption Branch of the Constabulary and other entities as opportunities arise.

While support for reforms contained in the strategic review (including capacity building of the MNS and JCF, anti-corruption measures and community policing) remains the USG priority, the report also recommends that the donor community coordinate efforts to address weaknesses in the justice sector. The recently approved Canadian multi-year Justice Undertaking for Social Transformation (JUST) program will take on the task of strengthening the justice system. If funding levels permit, USAID and NAS will explore possibilities that would harmonize with Canadian efforts to modernize the justice system. Activities would provide institutional capacity support-such as training for judges, prosecutors and police as well as technical assistance to the Office of the Director of Public Prosecution (DPP), police, and key elements in the judicial system. Depending on the extent of Canadian International Development Agency (CIDA) funding, further USG support may include training to successfully prepare and prosecute cases and in particular focus on improving legislation that deals with forfeiture of criminal assets.

The priority interventions required to address the multi-dimensional and complex crime problem in Jamaica have been identified. However, in the event of diminished funding, the USG could maintain an optimum mix of assistance approaches by facilitating the continued focus of the US law enforcement agencies on addressing the needs of the relevant GOJ law enforcement agencies combined with USAID’s focus on the youth-centric approach to crime and violence prevention and continued support for police reforms including community policing. Both areas of work to be supported by USAID are core to creating the conditions for sustainable change and will allow targeted interventions in support of anti-corruption efforts.

D. Coordination of USG Efforts:

Peace and Security programs within the Embassy have a solid foundation for coordination and

‐ 10 ‐ take place through a Law Enforcement Working Group led by the US Ambassador. This group meets routinely to systematically discuss and share opportunities for collaboration as well as examine performance and progress of various activities. International donor coordination is carried out by the United Nations Resident Coordinator (UNRC) and involves all international donor partners as well as government officials in relevant Ministries and Agencies. Separate and apart from the UN-led process, the Mission places strong emphasis on coordination between the U.S., Canadian and British missions, traditionally the three largest donors in the peace and security arena.

The U.S. Law Enforcement Core Group (DEA, FBI, ICE, NAS, U.S. Marshals) and the MLO are best suited to provide support to security initiatives given their operational remit. Activities and programs may include drug and weapons interdiction; local capacity building programs for enhanced border security and control; support for anti-corruption reforms within the JCF and among Customs agents; capacity building for local law enforcement and military to deal with national/transnational organized crime and more sophisticated crimes (financial, cyber crimes), counter terrorism operations, regional initiatives and operational support to address organized transnational crime.

E. Role of Host Country/Regional Organizations/Private Sector Partnerships:

The role of the host country government is to provide clear and decisive leadership and take ownership of the programs. It is critical that the GOJ accept and support the role of local governments and facilitate the empowerment of NGOs and CBOs. These non-state actors have the ability to reach communities in ways the government cannot. They are also in a position to provide advocacy on behalf of their constituents. Moreover, regional organizations that have a law enforcement mandate or that are involved in the drafting of legislation can play an important role in addressing transnational crime. Private sector partnerships are necessary to provide the support for important programs at local and national levels and to sustain them beyond the life of foreign assistance programs. There is a growing sense of awareness among businesses of all sizes of the cost of crime and violence. Many have also awakened to the benefit they would receive from contributions that support crime prevention and help assure a well-educated and productive workforce in the future.

F. Anticipated Results

With the strategy that has been outlined, U.S. assistance, along with other donor support and GOJ commitment to these efforts, will result in reduction of the levels of crime and corruption over the long term. Through the support provided for the police force, manifestations of success will include increases in the number of law enforcement officers trained with USG assistance, the number of programs conducted to enhance police management with USG assistance and the number of communities in USG assisted areas using community policing methods. The support for anti-corruption reforms will increase the prosecutorial capacity of key agencies resulting in more convictions for corruption and building an atmosphere for greater compliance. Possible indicators include increases in the number of Government officials receiving USG supported

‐ 11 ‐ anti-corruption training and the number of USG supported anti-corruption measures implemented. Through an emphasis on youth and broader public engagement, there will be an increased exposure to citizenship and character education resulting in healthier attitudes toward democracy and respect for the law. Another tangible outcome will be an institutionalized and well-established civics curriculum in elementary schools. A possible indicator of success and reach of USG programs include a significant increase in the number of people who have completed USG assisted civic education programs. These efforts should also help Jamaica realize the political and social re-engagement of its citizenry. USG assistance will also result in the building of stronger NGOs and CBOs to implement, manage and sustain crime prevention programs. The increased number of civil society organizations using USG assistance to improve internal organization capacity will also be reflective of the USG’s success in supporting sustainable crime prevention programs.

USG programs will improve national crime and violence indicators, measure police effectiveness and performance, and contribute to medium term socio-economic improvement. Programs will also address national security and more specifically crime and violence prevention indicators as articulated in Jamaica's National Security Sector Plan – National Development Plan Vision 2030. Because of the cross-cutting focus on anti-corruption, education and economic growth programs will also contribute to the above peace and security goals.

Priority Goal 2 – Promoting Economic Prosperity and Sustainable Development

A. Situation Analysis/Problems Statement:

Jamaica’s small and import dependent economy makes it vulnerable to natural and external economic shocks. These shocks, combined with frequent bouts of macro-economic instability characterized by high inflation, an exorbitant debt burden and rising fiscal deficits have led to anemic economic growth rates. This stagnation has been further compounded by high levels of crime, increasing unemployment and underemployment, bureaucratic red tape, high energy costs and out migration of skilled labor. Despite these structural bottlenecks, Jamaica has been able to attract record levels of foreign investment in the last decade, especially in the tourism and telecommunications sectors. Unfortunately, these investments have had little impact on GDP growth and job creation; suggesting relatively low absorptive capacity.

Jamaica has made significant strides in recent years particularly in telecommunications; boasting one of the most robust ICT backbones for a developing country and near 100 percent cell phone penetration. Tourism, remittances and bauxite remain by far the three largest foreign exchange earners. Domestic investment continues to be hindered by lack of access to affordable credit and ineffective use of land for collateral. Slow progress on the government’s efforts to create a business-friendly environment, high security costs and a poorly educated workforce hamper both domestic and foreign direct investment. In 2008, the World Bank rated Jamaica among the worst places in the world to pay taxes, and the country slid downward on the Doing Business report ranking from 50 in 2007 to 63 in 2008 as other countries have streamlined their business

‐ 12 ‐ environments. In addition, Transparency International ranked Jamaica 96th out of 180 countries in 2008, indicating that corruption is a factor that further stifles economic growth. A recent study by the World Economic Forum on tourism competitiveness cited crime as a major impediment to Jamaica’s competitiveness.

While agriculture only accounts for between six and eight percent of total GDP in Jamaica, it accounts for almost one fifth of the employed labor force. Additionally, Jamaica continues to have one of the most fragmented land holding patterns in the world, with most parcels less than five acres and without bankable titles. Other structural bottlenecks in the sector include low technology, imperfect market information and rudimentary research and development support.

Vulnerability to natural disasters in general and hurricanes in particular, remain the single largest threat to the viability of the sector.

B. Critical Assumptions and Risks

Several critical assumptions underscore the successful implementation of USG initiatives in Jamaica, the most important of which is the continued political will of the land as well as a consistent supply of skilled labor within the sector. The threat of recurring hurricanes presents risks to the economy as a whole, but the agricultural sector is particularly vulnerable. Natural disasters substantially diminish production gains. Therefore, USG assistance will, to the extent possible, adopt technical approaches that mainstream disaster mitigation practices and techniques.

C. Assistance Approaches

Given the economic realities that confront a small, heavily-indebted island economy, foreign assistance funding will focus programmatic support towards the following: fostering an enabling environment for increased trade and investment; increasing agriculture revenues by supporting high value production; and reducing energy costs by expanding efforts to develop alternative sources for power generation. Programs that seek to promote economic reform based on sound market principles will lead USG efforts to assist the GOJ achieve consistent and meaningful economic growth. Support will also aim to build a stronger nexus between private associations and government entities. Stronger linkages between public and private sectors will ensure that the reforms are adequately meeting the needs of the business community and creating a climate conducive to economic growth.

USAID’s efforts will concentrate on providing technical assistance to reduce bottlenecks within the current legislative and regulatory environment. Within the new political context, opportunities exist for funding activities that specifically address land policy and titling, tax policy and administration, access to credit for micro, small and medium-sized enterprises and tourism competitiveness. Continued streamlining of the development approval and other business processes will enhance Jamaica’s competitiveness within the region.

Complementing the policy reform agenda process will be initiatives that strengthen private sector

‐ 13 ‐ competitiveness and reduce costs associated with doing business in Jamaica. Reducing the cost of energy will be a critical factor in ensuring that Jamaica is able to attract and retain foreign investment. Department of State support will leverage various assistance packages to promote the further development of alternative and renewable energy resources.

The declining importance of agriculture within the economy is an indication that the sector is seriously under performing and not fully taking advantage of the production potential of strategic high value cash crops such as coffee and cocoa. As a result, and in line with the Ministry of Agriculture’s objective to replace high priced grains (corn, wheat and rice) with locally produced roots and tubers, USAID assistance will seek to develop programs that diversify production towards alternative staples, high value vegetables, condiments and selected cash crops such as coffee and cocoa. This will require activities that focus on increasing access to market information and financial services, as well as exposing Jamaican farmers to improved production, value-added and disaster mitigation practices. USAID will also continue to expand the utilization of improved production technologies across the island as a means of increasing production and of discouraging environmentally damaging hillside farming practices.

Once more efficient production techniques are adopted, the USG’s programmatic approach will be to strengthen linkages between farm producers and the processors, buyers, and exporters of fresh produce in order to replace imports and expand exports. Related technical assistance will also be provided to assist in the privatization and rehabilitation of both the cocoa and coffee sectors. Activities that engage the participation of youth will be incorporated into agricultural programs. Workforce development would include job training in life skills, information technology, appropriate technical training, and entrepreneurial skills that respond to the needs of selected growth sectors, and/or the starting of small businesses. This will allow young people to be placed in decent jobs either in existing businesses or in their own business start-ups. In addition, it is critical to ensure that national agricultural policies address local projected food demand and encourage self reliance while reducing the negative environmental impacts. USG programs will seek an integrated approach in key sectors such as agriculture, tourism and bauxite mining. These programs will take into particular account environmental concerns and aim to achieve sustainable development through environmentally friendly means.

D. Coordination of USG Efforts

The success of this strategy will require close coordination between USAID and the Political/Economic section of the Embassy, especially on the economic policy aspects. Similar coordination will also take place with other relevant Agencies, namely Peace Corps, USDA and the Agricultural Plant Health Inspection Service regarding agricultural production, marketing and exporting.

E. Role of Host Country, Regional and Private Sector Partnerships

USAID has a strong relationship with all government stakeholders in the economic policy and agriculture sectors including the Cabinet Office, and key individuals within the Ministries of

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Agriculture, Environment, Tourism and Industry. USAID/Jamaica and the Political/Economic Section of the Embassy enjoy strong working relationships with the Jamaican private sector and will continue to work through member organizations like the Jamaica Developers’ Association, the Jamaica Chamber of Commerce, the Jamaica Exporters’ Association, the Jamaica Manufacturers’ Association, the Private Sector Organization of Jamaica and farmers’ associations to improve the legislative, regulatory and process framework of the economy.

Building strong private-public partnerships in all program areas will be an integral part of USG assistance. USAID will strengthen the use of Global Development Alliances (GDA) with firms like Alcoa, which has one of their largest mining operations in the world in Jamaica. For example, Alcoa has expressed interest in expanding its current greenhouse and agriculture development work. USAID will continue to explore alliances and partnerships with the Jamaican agro-industry as well as local business associations in relevant communities.

F. Anticipated Results

The USG anticipates positive movement on key indicators of competitiveness and economic growth by the end of the five-year planning horizon. Specific performance indicators will be developed and tracked on a routine basis in order to ensure that USG assistance is, in fact, fostering market-friendly legislative and regulatory changes that lead to expanded business opportunities, increased employment and incomes for the majority of Jamaicans.

The policy reform process is expected to lead to the following results and outcomes: reduction of the development approval process to 90 days or less; introduction of a national land policy that will provide land titles to 70% of landowners; incorporation of an additional 50% of GOJ public land into effective use and, continued reduction in time to start a business. Furthermore, a reduction in the factors that limit tourism competitiveness will be an additional anticipated outcome during the strategy period.

In addition to streamlining business processes in Jamaica, the USG will carry out an ambitious agricultural strategy which will aim to achieve an overall reduction in basic grain imports and a corresponding increase in local production of roots and tubers. Production gains will be complemented by an effective national marketing information system. The marketing information system alone is expected to stimulate local production by 80% and increase the value and/or volume of agricultural exports by 200%.

The agriculture strategy will also focus on deregulating the cocoa and coffee markets. This is expected to triple cocoa production in Jamaica from 300 kilograms per acre to 1,000 kilograms per acre with a 75% increase (up from 40%) in market prices for farmers. The privatization of the coffee market will be more complex, making it difficult to set targets at this time. Underlying increases in business and agricultural sector efficiencies will include the expansion of effective microfinance services and products to farmers and small businesses by 15% each year.