USAID JAMAICA Assistance Objectives.pdf

Table of Contents

Overview ……………………………………………………………………………1

Assistance Objective 1……………………………………………………………5

Assistance Objective 2……………………………………………………………10

Assistance Objective 3……………………………………………………………15

Assistance Objective 4……………………………………………………………20

Assistance Objective 5……………………………………………………………25

USAID/Jamaica Assistance Objectives 2010-2014

“Supporting Jamaica’s transition to the place of choice to live, work, and do business”

USAID/Jamaica hereby submits this package of Assistance Objectives (AOs) for approval by the Bureau for Latin America and the Caribbean (LAC), pursuant to ADS 200.2e and ADS 103.3.5.1a. These AOs were prepared in accordance with ADS 201.3.8 and other relevant ADS provisions, and they were developed on the basis of the high-level government-wide goals set forth in the Embassy Kingston Country Assistance Strategy (CAS), which was approved on 16 January 2009.

In developing these AOs, USAID/Jamaica has benefitted from a long and participatory process, consisting of assessments in each sector, consideration of gender issues under each AO, and ongoing consultations with partners and stakeholders. The AOs have also been shaped in significant ways by the sophisticated, results-based planning process of the Government of Jamaica (GOJ), which culminated in 2009 in the country’s first long-term National Development Plan, Vision 2030 Jamaica.1 That almost 400-page document, which includes comprehensive analyses of all sectors, develops strategies around four National Goals and 15 National Outcomes. With its comprehensive long-term vision of “Jamaica, the place of choice to live, work, raise families, and do business,” it aims to position Jamaica for developed country status by 2030, as indicated by “world-class standards in critical goal areas including education, health care, nutrition, basic amenities, access to environmental goods and services, civility, and social order.”2 Vision 2030 Jamaica is accompanied by the Medium Term Socio-Economic Policy Framework 2009 -2012 (MTF),3 the first in a series of plans to incrementally implement 2030 goals.

As its country goal for these AOs, USAID/Jamaica has chosen the MTF goal of: “Supporting Jamaica’s transition to the place of choice to live, work, and do business.” Under this country goal, USAID’s five AOs are:

AO 1: More Peaceful and Transparent Democracy AO 2: Profitability and Competitiveness of Key Agricultural Crops Increased AO 3: Economic Enabling Environment Improved AO 4: Education Transformation Program Strengthened AO 5: HIV prevalence in most-at-risk populations reduced and effects mitigated

The five AOs reflect USAID’s response to the four Priority Goals under the CAS. Notably, the CAS adopts a focused approach by addressing in particular those social and economic issues that contribute most directly to Jamaica’s high level of crime and violence, and its vulnerability to transnational crime.

The AOs respond to the CAS goals as follows:

AO 1: responds to CAS Priority Goal 1, Increasing Peace and Security by Reducing Crime and Corruption AO 2 and AO 3: respond to CAS Priority Goal 2, Promoting Economic Prosperity and Sustainable Development AO 4: responds to CAS Priority Goal 3, Investing in People AO 5: responds to CAS Priority Goal 4, HIV/AIDS

1 Vision 2030 Jamaica, National Development Plan (Planning Institute of Jamaica 2009) 2 Vision 2030 Jamaica, at p. xxii 3 Medium Term Socio-Economic Policy Framework 2009-2012 (Planning Institute of Jamaica 2009)

The AOs are linked to the following Functional Objectives under the Foreign Assistance Framework

(FAF):

AO 1: Peace and Security, Governing Justly and Democratically (GJD) AO 2: Economic Growth (Program Area, Agriculture) AO 3: Economic Growth (Program Areas, Trade and Investment, Financial Sector, Private Sector Competitiveness, Economic Opportunity) AO 4: Investing in People (Program Area, Education) AO 5: Investing in People (Program Area, Health)

Jamaica faces complex and serious social and economic problems, which have been severely exacerbated by the current global recession. As summarized by the MTF:

[Jamaica] stands at a crossroads in … development with disappointing economic growth, a lack of national consensus on critical issues, and high incidence of violent crimes that threaten our country’s stability. Jamaica now has one of the highest murder rates in the world, averaging 60 per 100,000 population in 2008. Females are the main victims of gender-based violence, including rape and carnal abuse. Other challenges we continue to face include: high public debt; low productivity in most sectors; fiscal imbalance;

anaemic export performance; weak infrastructure; poor educational performance particularly among boys; unemployment among youth (ages 15-24 years) as high as 23.6 per cent; weak institutions; inadequate transparency and accountability in governance;

and a high perception of corruption permeating public and private sectors.4

The AOs will begin to address the underlying social and economic problems that have contributed to Jamaica’s cycle of low performance, as follows:

Under AO 1, the Peace and Security and GJD Objective, USAID assistance aims to reduce crime and violence (IR 1) and to increase accountability and integrity in government (IR 2). Over time, the resulting improvements in citizen security and government integrity at the national and local levels will increase political stability and help to restore and maintain citizen confidence in democracy.

Under AO 2, the Agriculture Objective, assistance aims to improve agricultural marketing systems (IR 1), the agricultural enabling environment (IR 2), and the production and marketing of specialty crops with high export potential (IR 3). Resulting improvements in agricultural income will reduce poverty and revitalize rural communities; these improvements also carry significant implications for other sectors, impacting on health and nutrition, rural education, and employment, including employment for at-risk youth.

Under AO 3, the Economic Growth Objective, assistance will focus on improving the business enabling environment through policy and administrative reform (IR 1) and increasing private sector capacity and engagement (IR 2). Over time, improvements in this sector will build confidence and stimulate investment, making Jamaica more competitive in regional and global markets and a more attractive environment for domestic and foreign investment. This AO is also expected to generate jobs, reduce poverty, and improve livelihoods.

4 MTF, at p. 17

Under AO 4, the Education Objective, assistance will focus on the quality of basic education, with results directed at improvements in reading fluency (IR 1), mathematics skills (IR 2), private sector engagement in the delivery and financing of education (IR 3), and school performance (IR 4). With improvements in student achievement and institutional performance, students will be better prepared for further education and ultimately to contribute in productive and enriching ways to the economic, social, and cultural life of the country.

Under AO 5, the HIV/AIDS Objective, assistance will focus on reducing sexual transmission of

HIV by supporting the most-at-risk populations (IR 1), improving the use of strategic information for evidence based programs, policies, and decision-making (IR 2), and reducing stigma and discrimination (IR 3). Over time, progress in this area will reduce the prevalence rate of HIV/AIDS and reduce discrimination against persons living with HIV/AIDS.

Youth as the beneficiaries of assistance are given special consideration across the portfolio.

Gender is also taken into account for each AO, and the special needs of women and men and girls and boys, are recognized for particular AOs. Based on its analysis, the mission will address gender utilizing a matrix approach taking risk and need into consideration for each AO.

USAID/Jamaica 2010-2014 Mission Results Framework

Assistance Objective 1

Critical Assumptions:

1. The GOJ will maintain its commitment to reducing crime, violence and corruption, as well as its commitment to reform of the Jamaica Constabulary Force.

2. The Community, Parish, and Regional Development Committees will continue as the model for participatory local government.

3. AO 1 focuses in part on police reform as part of a larger democracy objective. Donor programs focused on other justice institutions will advance so that the entire justice sector is strengthened in a coherent manner.

Crosswalk of Results Framework and FAF Program Hierarchy:

The Results Framework links to the FAF Program Hierarchy as follows:

Assistance Objective 1: Peace & Security; Governing Justly and Democratically IR 1: Program Areas: 1.3; 2.1. Program Elements: 1.3.7, 2.1.1. Program Sub-Elements: 1.3.7.1, 1.3.7.3, 2.1.1.2

IR 2: Program Areas: 2.2, 2.4. Program Elements: 2.2.4, 2.4.1. Program Sub-Elements: 2.2.4.2, 2.2.4.3, 2.2.4.4

Assistance Objective 1 More Peaceful and Transparent Democracy

I. Overview

AO 1, entitled “More Peaceful and Transparent Democracy,” will contribute to achievement of the CAS Priority Goal 1 of “Increasing Peace and Security by Reducing Crime and Corruption,” through achievement of two Intermediate Results (IRs). These are IR 1, “Safer communities, respecting rule of law and human rights,” and IR 2, “Improved accountability and integrity in government.” This AO is linked to two Functional Objectives under the FAF:

Peace and Security and Governing Justly and Democratically. Through IRs and sub-IRs, it is also linked to several FAF Program Areas, Elements, and Sub- Elements.5

AO 1 supports priority goals of the GOJ, as set forth in Jamaica’s national development plan, Vision 2030 Jamaica. AO 1 squarely aligns with Goal 2 of that plan, “Jamaican Society is Secure, Cohesive, and Just,” and two desired outcomes, “Security and Safety” (National Outcome 5) and “Effective

Governance” (National Outcome 6). AO 1 also focuses on the most important concerns to Jamaicans, as determined by public opinion surveys.

AO 1 is informed by three USAID sub-sector assessments,6 AmericasBarometer surveys by the Latin American Public Opinion Project (LAPOP), and consultations with partners and stakeholders. AO 1 is also informed by lessons learned from USAID’s current Strategic Objective (SO) 13, entitled “Improved Governance through Citizen Security and Participation.” Based on this participatory process, and with current resource constraints, a consensus emerged on the need for USAID to focus on crime, violence, and corruption.

The overall approach under AO 1 will be on prevention of crime, violence, and corruption, rather than on prosecution; other donors are more focused on prosecution, and until this function is strengthened (along with the judiciary), the deterrence to be gained from convictions and punishment will not be realized.

The approach will also emphasize youth as key beneficiaries of assistance; this is critical as a relatively high percentage of youth demonstrate negative attitudes towards democratic processes and support for illicit activities. This approach also recognizes youth as change agents who can be empowered to participate and contribute to society in meaningful ways by educating them and reinforcing positive values and attitudes. To address the multi-dimensional and closely interconnected nature of Jamaica’s crime and violence and corruption problem, the approaches and expected results under IR 1 and IR 2, are parallel and synergistic, and both IRs have results at the sub-IR level involving institutions, civil society, and youth/education. AO 1 will also leverage resources through linkages to the Education and Economic Growth AOs.

The estimated budget to implement AO 1 is $18 million.

5 Program Areas: 1.3; 2.1; 2.2; 2.4. Program Elements: 1.3.7; 2.1.1; 2.2.4; 2.4.1. Program Sub-Elements: 1.3.7.1;

1.3.7.3; 2.1.1.2; 2.2.4.2; 2.2.4.3; 2.2.4.4; 2.4.1.3; 2.4.1.4 6 MSI, Corruption Assessment for Jamaica, Sept. 2008; USAID, Jamaica-Community-Based Policing Assessment March 2008; USAID, Crime, Gangs and Violence, Assessment of Community-Oriented Policing in Grants Pen and Central Village, December 2006.

II. Results Framework, Illustrative Activities, and Illustrative Indicators

A. Assistance Objective 1: More Peaceful and Transparent Democracy

AO 1, More Peaceful and Transparent Democracy, seeks to restore a sense of safety, security, and stability to Jamaicans by reducing crime and violence and the threat of civil unrest, and the crippling fear it engenders; it also seeks to introduce greater transparency and accountability into key government institutions, including the police and local government institutions, to increase government effectiveness and political stability. Over time, high levels of personal insecurity undermine citizen confidence in democratic institutions and lead to vigilantism and other violent self-help measures. This has occurred in Jamaica, where there is both a crisis of public safety and a crisis of confidence in the state’s ability to respond to the violence. Corruption has had similar deleterious effects on Jamaican democracy as it has eroded the legitimacy of government and undermined democratic values of trust and tolerance.

At the end of the strategy period, expected results include: (1) gradual improvements in public safety; (2) reduced fear and insecurity; (3) a more law-abiding citizenry; (4) greater integrity in the police and other key government institutions; and (5) more robust and participatory community governance structures.

Over time, improvements in citizen security and government integrity will increase political stability and help to restore and maintain citizen confidence in key democratic institutions. At the AO level, illustrative indicators include: AmericasBarometer survey results on crime, corruption, and civic participation, and their impact on support for democracy.

1. IR 1: Safer communities, respecting rule of law and human rights Crime and violence are the most pressing concerns for Jamaicans, and an overwhelming 96% of citizens perceive current rates of crime and violence as a threat to the nation’s wellbeing.7 While total crime rates have declined over the last decade, violent crime, and particularly murder, has spiraled. Since independence, the murder rate has almost doubled each decade. By 2008, the murder rate was 60/100,000, making Jamaica one of the most murderous countries in the world. Violent crime in Jamaica has age, gender, and socio-economic dimensions, with poor young males as the primary perpetrators and victims of crime. Much of the crime is concentrated in inner-city communities, many of which are controlled by well armed and well organized gangs trafficking in narcotics and guns. Domestic violence against women, and violence against children in schools and in the home, including crimes leading to murder, are serious concerns. Jamaica also suffers from significant levels of state violence, and the GOJ, international organizations, and international and national human rights groups have documented a pattern of unlawful police killings coupled with impunity. According to a recent government review of policing in Jamaica, (Strategic Review), the security situation and the relative threat against the police has led to methods of policing that are “militaristic” and ineffective, and the police have been “slow to adopt a culture of public service, community-based policing and respect for human rights.”8

Under IR 1, USAID will undertake an integrated crime and violence prevention program. The focus will be on support for internal reforms of the Jamaican Constabulary Force (JCF), which aim among other

7 AmericasBarometer, Political Culture of Democracy in Jamaica, 2008, at p. 72 8 Ministry of National Security, A New Era of Policing in Jamaica: Transforming the JCF: the Report of the JCF Strategic Review Panel, 2008, at 24-25.

things to institutionalize community based policing (CBP) as the JCF’s organizational and individual policing philosophy. The CBP philosophy adopted by the JCF also places emphasis on integrity, accountability, service and respect for human rights. The USAID Community-Based Policing Assessment found that the CBP philosophy is a significant change from the JCF’s traditional role, and implementation will require organizational development, culture change and expansion of operational capabilities. These requirements are also identified in a Strategic Review of Jamaica’s police force. The Assessment also identified a consensus that CBP is a superior method of service delivery, which has contributed to reduced crime in some communities.

Integral to CBP is a consultative relationship between the police and communities served. To foster that relationship, USAID will support reforms aimed at creating more sustainable police-community partnerships. Until now, community input into CBP has been informal and inconsistent in structure, representativeness, and effectiveness. Jamaica is currently undergoing local government reform to decentralize decision-making. The Social Development Commission (SDC), a government body with the mandate to enable community participation in the national development process, is establishing Community, Parish, and Regional Development Committees to determine the allocation of resources to services and programs. USAID will strengthen SDC capacity to mobilize and organize communities. With USAID support, these community governance structures, which involve the state, private sector, community leaders, and other civil society members, will provide the forum for community-police partnerships, including development and implementation of community safety initiatives as part of integrated development plans. USAID will also support police and community initiatives to reduce youth and gang violence.

As recommended by the USAID Crime, Gangs, and Violence Assessment, an integrated approach to crime prevention calls for a strong civic education component, with an emphasis on developing a culture of lawfulness or a more law-abiding citizenry that understands and respects the rule of law in a democracy.

This is particularly important in Jamaica where inner-city residents who grew up under governance systems and leadership in communities that run parallel to state and formal systems, display significant deficits in their understanding of law, legal institutions and their roles and their responsibilities as law-abiding citizens. To address this issue, USAID will support a culture of lawfulness program; the program will be directed primarily at students and youth-at-risk, but it may also involve police, media, community leaders, CBOs, NGOs and other actors responsible for informal and formal education.

The FAF9 and the USAID Policy Guidance on Assistance for Civilian Policing advise that U.S. programs supporting civilian police reform should be rooted in respect for rule of law and human rights. Consistent with this guidance, IR 1 which contains elements related to both Peace and Security and GJD will have a strong rule of law and human rights component.

Under IR 1, illustrative activities include: (a) support for development of CBP, including policy and culture change, education, training, and supervision; (b) support for JCF organizational development, including structure, management/leadership, discipline, and recruitment; (c) technical assistance to strengthen SDC capacity and ensure linkages between community governance and CBP; and (d) educational activities with schools, media, police, community leaders, and civil society organizations.

Illustrative indicators include: (a) reduction over time in the murder rate; (b) change in the ratio of violent to property crimes; (c) increase in CBP activities; (d) change in citizen perceptions of safety; and

9 See 1.3.7.1

(e) change in citizen perceptions of law, law enforcement, and support for rule of law, disaggregated by age and gender.

2. IR 2: Improved accountability and integrity in government

In 2008, for the first time, Jamaicans listed corruption as their second most serious concern, after crime and violence. Indeed, amongst 22 countries in the region participating in the AmericasBarometer surveys, Jamaicans expressed the lowest level of confidence in government officials.10 Since first participating in the Transparency International surveys in 2002, Jamaica has received a “highly corrupt” designation each year. According to the 2008 USAID Corruption Assessment and AmericasBarometer, corruption originates in the public sector, where bureaucratic and inefficient systems provide an ideal environment for corruption. Additionally, citizens broadly accept that bribes are necessary for the timely delivery of services.11 Corruption is found across government agencies, and in particular (as in other countries) in the health sector, police, revenue authorities and the Customs Department. In terms of the police, the Strategic Review concluded that tackling corruption and incorporating stronger accountability measures were central to transformation of the JCF. As noted, a police organization that does not take a strong stand against corruption is neither legitimate nor effective.12 Another point of vulnerability is the Constituency Development Fund (CDF), whereby the government has promised to provide up to 2.5% of the budget to parliamentarians for development programs in their constituencies.

Under IR 2, USAID will support stronger corruption control measures in the police and other key institutions to reduce the incidence of misconduct. In this regard, programs will support the JCF’s reform initiatives to build internal accountability and external oversight. While other donors will support implementation of a revised vetting system, USAID will focus on the accountability framework, including greater emphasis on professional standards and ethics during orientation, training and coaching.

Support may also be given to improve operation of the discipline system and to clear the backlog of disciplinary cases. Should resources allow, support may be provided to the Customs Service to break corrupt patterns that result in leakages of state revenue and illegal importation of drugs and guns. USAID will also encourage robust citizen participation and oversight, including through the National Integrity Action Forum (NIAF), as well as other initiatives that engage the public in community governance and that favor community input into use of the CDF for local economic development. Finally, USAID will support civic education activities in tandem with a culture of lawfulness program that are aimed at youth, with a view to developing leadership and advocacy skills, encouraging participation, and positively impacting views on democracy, ethics, and civic responsibility. These programs will lead to increased engagement of youth, including boys, in mainstream society.

Under IR 2, illustrative activities include: (a) facilitate JCF training and technical assistance related to professional standards and ethics; (b) support to the SDC to encourage citizen participation in community governance and citizen oversight over use of the CDF; and (c) facilitate development of civic education modules related to democracy, citizenship, and social responsibility with the support of NGOs and other partners. Illustrative indicators include: (a) change in perceptions of corruption in the police and in community decision making (using surveys as data source); (b) increase in number of significant corruption complaints in the police and other key institutions in which investigation or discipline is pursued to fair and transparent outcome; and (c) change in percentage of youth with civic knowledge and/or exhibiting democratic values (using surveys as data source).

10 AmericasBarometer, at p. xxvi 11 AmericasBarometer, at p. 43 12 Strategic Review, at 18-19.

B. Critical Assumptions

The Results Framework rests on three critical assumptions: (1) the GOJ will maintain its commitment to reducing crime, violence and corruption, as well as its commitment to CBP and reform of the JCF; (2) the Community, Parish, and Regional Development Committees will continue as the model for participatory local government; and (3) AO 1 focuses, in part, on police reform as part of a larger democracy objective. Donor programs which focus on other justice institutions, including the courts, prosecutors, and defense, will continue to advance, so that the entire sector is strengthened in a coherent manner.

Assistance Objective 2

1. Weather events do not reduce agriculture production.

2. “Marketing functions” includes market reporting, market forecasting, marketing services, and market research.

3. Physical infrastructure, including roads, satisfactorily meets market requirements

4. Financial products and services are accessible and sufficient to meet needs of the agriculture industry.

5. Current global economic recession permits economic activity necessary for Jamaican marketing reform and advancement

6. No catastrophic outbreaks of agricultural diseases and pests.

Crosswalk of Results Framework and FAF Program Hierarchy:

The Results Framework links to the Foreign Assistance Framework Program Hierarchy as follows:

Assistance Objective: Economic Growth Program Area: 4.5 (Agriculture) Program Elements: 4.5.1; 4.5.2 IR 1: Sub-Elements: 4.5.2.4 and 4.5.2.5 IR 2: Sub-Elements: 4.5.1.3; 4.5.1.4; 4.5.2.4; and 4.5.2.5 IR 3: Sub-Elements: 4.5.1.3; 4.5.1.4; 4.5.2.4; and 4.5.2.5

Assistance Objective 2 Profitability and Competitiveness of Key Agricultural Crops Increased

AO 2, entitled “Profitability and Competitiveness of Key Agricultural Crops Increased” will contribute to the achievement of the CAS Priority Goal 2 of “Promoting Economic Prosperity and Sustainable Development,” through the achievement of three IRs. These are IR 1, “More effective and efficient marketing systems established,” IR2, “Enabling environment for production, productivity, and marketing strengthened” and IR 3, “Production and marketing of select specialty crops improved.” Under the FAF, this AO is linked to the Economic Growth Functional Objective. Through IRs and sub-IRs, it is also linked to several FAF Program Areas, Elements, and Sub-Elements. 13

According to Vision 2030 Jamaica and the GOJ National Food Security Strategy,14 the agricultural sector experiences a number of weaknesses in the marketing of its products, including high levels of informality in marketing and distribution channels, limited market information services, lack of a coordinated marketing system, and relatively weak linkages to non-traditional export markets.

The Ministry of Agriculture and Fisheries (MOAF) is focused on increasing domestic production of commodities with a clear, competitive advantage, such as tropical fruits, roots and tubers. Also, the MOAF is working to increase opportunities for value-added agro-processing and exports to handle expected surplus. To secure new, competitive markets, the MOAF is focused on increasing access to market information and financial services, and promoting improved production, value-added, and disaster mitigation practices. Based on discussions with partners and stakeholders, and with current resource constraints, USAID has decided to support the MOAF development agenda with a targeted approach to improve marketing systems, production, and marketing of specialty crops, including cocoa and coffee.

Under AO 2, USAID’s primary objectives will be to improve farm income, food security, expand small scale agro-processing and other supporting rural enterprises, and protect fragile environments from the impacts of climate change and associated natural disasters. Emphasis will be placed on creating a functioning market information system (MIS) and on rehabilitation of the cocoa sector. While other donors are focused on production, USAID will leverage its assistance to improve marketing and value-added agro-processing for domestic commodities which can be produced competitively. Small farmers, small and medium agro-processors, and supporting rural enterprises are the main beneficiaries of assistance. Young farmers, women, and farmer and agro-processing associations are of special interest to the MOAF; special programs exist and will be expanded commensurate with need and opportunity. Under AO 2, to achieve development goals, USAID will collaborate with other donors, including the European Union, Food and Agriculture Organization of the United Nations (FAO), and the World Bank, as well as the private sector.

The estimated budget to implement AO 2 is $15 million over a five year period, utilizing primarily Development Assistance (DA) funds.

13 Program Area: 4.5. Program Elements: 4.5.1; 4.5.2. Program Sub-Elements: 4.5.1.3; 4.5.1.4; 4.5.2.4; and 4.5.2.5.

14 National Food Security Strategy, prepared by the GOJ Ministry of Agriculture, May 2008

AO 2 will build on lessons learned from USAID’s current SO 10, entitled “Natural Assets Managed for Rural Development and Sustainable Economic Growth.” Under that SO, USAID has assisted the MOAF in: (1) introducing new technology, including the hurricane resistant hoop tunnel greenhouse, in protected agriculture to new entry farmers, women, and other limited-resource Jamaicans with little or no land to farm; (2) marketing of select agricultural crops; and (3) conducting an assessment of the cocoa sector. In addition, USAID is currently providing $3.2 million in assistance to the MOAF in response to Tropical Storm Gustav. This support serves a dual purpose in the rehabilitation of the Jamaican agricultural sector through improvement in the rural road infrastructure and in the production and productivity of targeted crops.

AO 2 is linked to each of the other four mission AOs in significant ways.

Linkages between AO 2 and economic growth are critical in addressing issues related to access to finance, competitiveness, and trade. In addition, credit guarantees under the Development Credit Authority (DCA) may be utilized in cooperation with AO 3, to assist in mobilizing local capital to fund agricultural projects. Growth in agricultural income can lead to enhanced food security and rapid poverty reduction; this in turn raises the returns to rural education, which is also seen as a means of rapid poverty reduction for vast numbers of people.

II. Results Framework, Illustrative Activities, and Illustrative Indicators

A. Assistance Objective 2: Profitability and Competitiveness of Key Agricultural Crops Increased AO 2, Profitability and Competitiveness of Key Agricultural Crops Increased, seeks to target key agricultural crops that form part of the MOAF Production and Productivity Program. Vision 2030 Jamaica summarizes the long-term vision of the MOAF as follows:

Given the potential contribution of agriculture to GDP, employment, the enhancement of rural livelihoods, environmental sustainability and food security, the sector occupies an important position in the planning for Vision 2030 Jamaica. The long-term vision is for the dynamic transformation of the Jamaican agricultural sector through a sustained, research oriented, technological, market driven and private sector-led initiative, which revitalizes rural communities, creates strong linkages with other sectors and emphatically repositions the sector in the national economy to focus on production of high value commodities and contribute to national food security.15

At the end of the strategy period, expected results include: (1) increase in the value and/or volume of Jamaican produce marketed by 25%; (2) increased agriculture income at the household and agribusiness levels; (3) at least 50% increase in market share for key Jamaican agricultural commodities and food products competitively sold or traded; (4) agricultural GDP increases as a percent of Jamaica’s GDP; (5) total production and yield of key commodities increased by at least 20% by the end of the project; (6) increase in farmer share of the sale price of cocoa to 80%; and increase in the adoption of agriculture best practices for climate change adaptation including better land management, relocating crops and altering planting dates and crop varieties..

1. IR 1: More effective and efficient marketing system established

Structural bottlenecks in agriculture include low technology, disorganized markets and marketing systems, little or no production or pricing or market-quantity data, rudimentary research, and

15 Vision 2030 Jamaica, at p. 204 uncoordinated sector support. Under IR 1, USAID will promote improvements in the MIS through illustrative activities, such as: (a) develop the capacity of the MOAF to systematically collect, analyze, and disseminate production information, market prices, and quantities (these activities speak to the broad categories of market reporting, forecasting, promotion, and research); (b) develop with industry partnerships information-technology platforms (e.g., cell phone messages and electronic display boards) to publish and disseminate market information; and (c) develop support services by building the capacity of agribusiness service providers to support enterprises on a commercial and sustainable basis, including post-harvest management (e.g., storage, nurseries, sorting, grading, packaging, transport, greenhouse and cold chain collection center management). Illustrative indicators include: (a) more than 50% of producers, processors, purveyors and buyers obtain market prices, locations, volume and quality standards from the MIS; (b) a fully functional information-technology platform for market information publication; (c) at least 80% of all economically important agricultural commodity forecasts available to the public; and (d) 50% sponsorship of the MIS by the private sector.

2. IR 2: Enabling environment for production, productivity, and marketing strengthened The MOAF plans to improve production, productivity and marketing in the agriculture sector through a more supportive institutional and legal framework that facilitates local production and marketing of agricultural commodities. USAID support will include technical assistance to guide the relevant reform committees. Under IR 2, illustrative activities include: (a) provision of technical assistance to the MOAF defining international best practices for the separation of commercial and regulatory functions regarding cocoa and coffee; (b) establishing public-private partnerships through a possible global-development alliance (GDA) mechanism involving the World Cocoa Foundation and other relevant partners; (c) a formal mechanism among key private sector partners outlining post-harvest management procedures; (d) a public-private partnership with cell phone service providers clearly defining roles and responsibilities of partners in disseminating market information. Illustrative indicators include: (a) a liberalized or deregulated commodity board; (b) pursuit of policy aspects leading to an open and competitive system; (c) increased private sector involvement in the agriculture sector in the areas of post-harvest management and MIS; and (d) amended agricultural policies and regulation to enhance marketing and production.

3. IR 3: Production and marketing of select specialty crops improved There has been a significant decline in the production of specialty crops such as cocoa and coffee. Some of the factors contributing to the decline are: frequent hurricanes; lack of financial support to help farmers recover from hurricanes; and more importantly, unfavorable pricing policies by the commodity boards that give farmers too small a share of the market price. Under IR 3, illustrative activities include: (a) development of public-private partnerships to modernize specialty crop production, processing and marketing; (b) provision of technical assistance to help guide the specialty crops industry redevelopment over the next two years, with an emphasis on cocoa and coffee; (c) provision of support to farmers associations to ensure their effective participation in the industry; (d) a five year cocoa rehabilitation program for at least 6,000 farmers; and (e) the introduction of adaptation best practices in agriculture to combat the effects of climate change including the impact of hurricanes. Illustrative indicators include:

(a) increase in cocoa production by 50% by the end of the project; (b) increase in the number of farmers trained in modern production techniques; and (c) an established farmers association with clearly defined roles and functions.

The Results Framework rests on a number of critical assumptions: (1) weather events do not reduce agricultural production; (2) adaptation options implemented are effective in addressing the impacts of climate change (3) “marketing functions” includes market reporting, forecasting, services, and research;

(4) physical infrastructure, including roads, satisfactorily meets market requirements; (5) financial products and services are accessible and sufficient to meet needs of the agricultural industry; (6) current global economic recession permits economic activity necessary for Jamaican market reform and advancement; and (7) no catastrophic outbreaks of agricultural diseases and pests.

Assistance Objective 3

Critical assumptions:

1. The country will move toward macroeconomic stability.

2. The country will maintain political stability.

3. Crime can be reduced as a deterrent to enterprise growth and private sector investment

4. Partners will be receptive to the technical assistance that is provided

5. Key political leaders will continue to support policy reform

6. Private sector entities are willing to work together on identifying and advocating for key reforms

7. Increased transparency and accountability within GOJ and its agencies will foster greater efficiencies and cost effectiveness

Assistance Objective 3: Economic Growth IR 1: Program Areas: 4.2, 4.3, 4.6, 4.7. Program Elements: 4.2.1, 4.3.1, 4.6.1, 4.6.2, 4.7.1. Program Sub- Elements: 4.2.1.3, 4.3.1.3, 4.6.1.2, 4.6.2.1, 4.6.2.4, 4.7.1.1.

IR 2: Program Areas: 4.6, Program Elements: 4.6.1, 4.6.2, Program Sub-Elements: 4.6.1.2, 4.6.2.1, 4.6.2.4;

4.3.2.6.

Assistance Objective 3 Economic Enabling Environment Improved

AO 3, entitled “Economic Enabling Environment Improved,” will contribute to the achievement of the CAS Priority Goal 2 of “Promoting Economic Prosperity and Sustainable Development,” through the achievement of two Intermediate Results (IRs). These are IR 1, “Key regulations, policies, and processes improved,” and IR 2, “Private sector capacity to participate in reforms increased.” Under the FAF, this AO is linked to the Economic Growth Functional Objective, and through IRs and sub-IRs, it is also linked to several FAF Program Areas, Elements, and Sub-Elements.16

AO 3 is focused on eliminating barriers to a positive economic enabling environment in Jamaica, which supports priority goals of the GOJ, as set forth in Vision 2030 Jamaica, under Goal 3 (“Jamaica’s Economy is Prosperous”), National Outcome 7 (“A Stable Macroeconomy”), and National Outcome 8 (“An Enabling Business Environment”). A key element of the way forward is to ensure broad consensus between the GOJ and the private sector on the critical initiatives that will drive economic growth and sustainable development, and that will create alternative revenue streams to offset the fiscal debt. The economic enabling environment is a complex set of policy, legal, institutional, and regulatory conditions that govern business activities; it includes the administration and enforcement mechanisms established to implement government policy, as well as institutional arrangements that influence the way key government agencies, regulatory authorities, and business associations operate. AO 3 is informed by sector analysis in the USAID BizClir report entitled, “Jamaica’s Agenda for Action,”17 which examined certain key components of the environment for doing business in Jamaica and identified opportunities for targeted reforms to stimulate much needed economic growth. It also builds on the experience and achievements under SO 9 in the FY 2005-2009 strategy, Increased Trade Competitiveness in Targeted Industries.

Jamaica’s economy continues to depend heavily on its natural resources. Tourism, bauxite, and alumina production, along with agriculture, have historically provided the bulk of foreign exchange earnings. The recent global economic crisis has been a death knell for the bauxite industry. The GOJ now seeks to diversify the economy and create alternative sources of revenue for the treasury. The country’s economy has fared poorly over the last three decades compared to most of its Caribbean neighbors. The 2009 Doing Business Report ranks Jamaica 63rd overall out of 181 economies measured, with mixed performance on individual indicators. In “Starting a Business,” Jamaica ranked 11th; however, at the other extreme, it ranked 173rd in “Paying Taxes.” Due partly to assistance from USAID, the country improved substantially in “Dealing with Construction Permits,” going from 74th place to 49th place, but its ranking for “Getting Credit” slid from 79th in 2008 to 84th in 2009. Meanwhile, Jamaica continues to have one of the most fragmented land holding patterns in the world, with most parcels measuring less than five acres without bankable titles.

16 Program Areas: 4.2, 4.3, 4.6, 4.7. Program Elements: 4.2.1, 4.3.1, 4.6.1, 4.6.2, 4.7.1. Program Sub-Elements:

4.2.1.3; 4.3.1.3; 4.3.2.6; 4.6.1.2; 4.6.2.1; 4.6.2.4; 4.7.1.1.

17 USAID, Business Climate Legal & Institutional Reform (BizClir), Jamaica’s Agenda for Action, 2008

Under AO 3, USAID will assist Jamaica as it strives to become a strong, competitive economy with an enabling environment that is conducive to a dynamic private sector and that provides the foundation for sustainable development and a high standard of living for its people. Economic enabling environment reform is a continuous process of adapting to new challenges and changes as they emerge. This AO seeks to assist the GOJ in achieving economic growth by, inter alia, reforming economic policies, streamlining government regulations, improving the environment for access to credit, and building the capacity of the private sector to engage in dialogue and advocate for reform. To this end, USAID will concentrate on providing technical assistance to promote public-private dialogue around enabling environment issues and to reduce bottlenecks within the current legislative and regulatory environment, taking advantage of the existing political will to initiate and adopt change. Indeed, the recent deterioration in Jamaica’s fiscal and macroeconomic situation gives new impetus to assistance relating to consensus building and social partnership as well as potentially significant interventions in economic policy development and implementation.

The Economic Growth Assistance Objective is designed to complement other mission AOs, including Agriculture, Education, Health, and Democracy and Governance. Private-sector alliances in the Health and Education sectors can be valuable contributions towards achieving increased competitiveness.

Underlying challenges of human resource capacity and of governance, especially corruption, will be addressed in part under this AO and in part through activities under AO 1. In addition, credit guarantees implemented in collaboration with the health, education, and agriculture sectors will help drive the development agenda in those sectors.

The estimated budget to implement this new Economic Growth Objective is $8 million.

II. Results Framework, Illustrative Activities and Illustrative Indicators

A. Assistance Objective 3: Economic Enabling Environment Improved AO 3, Economic Enabling Environment Improved, is focused on eliminating barriers to a positive economic enabling environment in Jamaica. The development of a strong, thriving, and vibrant economy builds and strengthens investor confidence, thereby stimulating investment which creates jobs and facilitates the implementation of supporting reforms. As identified through the USAID BizClir assessment in Jamaica, reforms are most successful when embedded into the systems of government, and reform interventions should be integrated to ensure that change in one aspect of the policy, legal, regulatory, or organizational framework, is consistent with other changes.

USAID will attempt to mainstream the promotion of private sector development and an improved enabling environment into its broader engagement on economic, social and environmental policies and across all of its efforts to increase economic growth, equity, and poverty reduction. At the end of the strategy period, it is envisioned that the economic enabling environment in Jamaica will have improved, and Jamaica will be more competitive in regional and global markets and will offer a more attractive environment for domestic and foreign investments. Expected results include: (1) a reduction in the business transaction costs as measured by the World Bank Doing Business Report; (2) simplification in tax payment procedures; (3) reduction in the time and number of processes to obtain construction permits;

and (4) a more unified private sector advocating and participating in Jamaica’s economic development.

Reforming the economic enabling environment is a GOJ priority given its importance to private sector development, economic growth, and the generation of livelihoods and jobs. USAID will therefore take advantage of the current political economy of change and strengthen the domestic reform processes by building and supporting coalitions of reform-minded actors, helping public and private actors participate jointly in reform processes, and enabling businesses to compete better in markets. Over time, this will lead to: reduced costs of doing business; public and private governance structures that are compatible with growth; increased employment opportunities for the poor and increase access to credit; and reduced corruption. The program will engage with the national legislature, political parties, senior public servants, national business membership organizations, and other local stakeholders to help them improve current policies, laws and regulations and to consider policy alternatives and reform options.

1. IR 1: Key regulations, policies, and processes improved Jamaica has continued to record relatively low rates of economic growth, and is constrained by a bureaucratic policy framework, as well as cumbersome administrative processes. Jamaica has evolved as a small open economy that is relatively exposed to international and regional trends, and its economic development therefore has been particularly susceptible to trends in the evolution of the global economy and marketplace. USAID will continue to build on its relationship with the Ministry of Finance and public service to address critical issues and bottlenecks in improving the tax administration; it will also engage with other key agencies to reduce or improve the processes by which approvals and permits are obtained. This IR will focus on assisting the GOJ with: (a) achieving fiscal and macroeconomic stability; (b) improving regulatory, legislative, and policy frameworks, and operational/administrative processes; and (c) reducing constraints to economic growth and investment. The goal is to help to establish conditions whereby innovations and investments are supported and encouraged, and whereby the role of the government and the regulatory and policy environment encourage development and commercial viability in a formal and sustainable way. These activities are essential to achieving the AO and the goal of increased investments and sustained and equitable economic growth. This will be done by providing technical assistance to the GOJ and its agencies on reforms in areas of tax administration, land policy and land titling, the legislative drafting process, the development approval process, and improving the policy environment for micro and small enterprises. Illustrative activities include: (a) improving tax policies and administration; (b) building trade capacity by streamlining import, export and customs clearance processes; (c) improving the enabling environment for microfinance; (d) improving legislative operations and effectiveness; (e) improving regulations and policies concerning tourism; and (f) improving land policy. Illustrative indicators include: (a) number of target policy reforms implemented; (b) number of agencies/processes streamlined using best practice standards; (c) number of public outreach/education initiatives conducted regarding reforms; (d) number of recommendations for the modification of laws, regulations and policies submitted to responsible government authorities; (e) number of targeted changes in tax policy achieved;

and (f) number of institutions lending to the micro- and small-enterprise sector.

2. IR 2: Private sector capacity to participate in reforms increased Just as the government must have the necessary tools and mechanisms to follow through on its reform commitments, the capacity of the private sector in Jamaica should be strengthened to enable it to fulfill its public policy role. This program will contribute to Jamaica’s future economic prosperity and democratic governance by building the foundation for private sector engagement in economic reform. IR 2 will focus on increasing the capacity of business associations to advocate on behalf of their members and develop stronger ties among the various private sector organizations. The process should lay the groundwork for effective private sector coalitions, which can focus on advocating for and creating solutions to acute economic issues facing the country.