| Project Detail |
Development Objective
The development objective of this operation is to assist in Jamaicas response to the COVID-19 crisis by: (i) protecting poor and vu lnerable people; (ii) supporting sustainable business growth and job creation; and (iii) strengthening policies and institutions for resilient and sustainable recovery.
The proposed standalone operation continues the close collaboration between the Government of Jamaica and the World
Bank. It responds to the Government’s request to assist with urgent and necessary actions for COVID-19 response and
recovery. The CRRDPF exploits natural synergies with the ongoing Economic Resilience Development Policy Loan (ERDPL)
series (the first of two operations was approved in March 2020), other Bank-financed projects, and technical assistance
activities. The ERDPL directly addresses several critical economic challenges in Jamaica, including fiscal sustainability and
social inclusion, fiscal and financial resilience against climate and natural disaster risks, and improving the investment
climate necessary for sustainable growth. The prior action supporting the independent fiscal commission under pillar 3 of
this operation is a continuation of the process initiated under the series. As such, the reforms foreseen in this standalone
operation continue to build on the fiscal reform agenda, strengthening institutional frameworks resilience in times of
crises – be they related to pandemics, natural disasters, climate change, or external economic shocks.
The proposed operation consists of a blend of emergency relief, structural, and institutional measures that are critical for
economic recovery as well as those aimed at mitigating the impact of the pandemic in the short term. The reforms
supported are expected to minimize job losses and poverty while establishing allowing for a safe reopening of the
economy. Pillar 1 includes: (i) emergency financial support to affected individuals and households impacted by the COVID19 pandemic; (ii) introduction of a social pension for the elderly ages 75 years and older, who are not in receipt of pensions
or any other form of financial assistance from the state; and (iii) approval of an interim national deployment and
vaccination plan for the COVID-19 vaccine. Pillar 2 supports sustainable business growth and job creation. The
repercussions of the COVID-19 pandemic have underscored the importance of jobs and continued economic
transformation. Key reforms include measures to assist firms survive the initial crisis shock including financial support tied
to job retention. This also includes reforms to boost fintech and promote financial innovation and inclusion as well as
efforts to improve the speed and efficiency of cross border trade. Pillar 3 supports reforms aiming to strengthen policies
and institutions for resilient and sustainable economic recovery. Key policy actions focus on: (i) advancing legislation for
the operationalization of the Independent Fiscal Commission to inform the public on the soundness and sustainability of
Jamaica’s fiscal position; and (ii) reinforcing the independence of the central bank and its inflation targeting regime.
Strengthening climate resilience and sustainability of growth is also an important part of the reform program. |
