Jamaica has greatly improved several social indicators. For example, the poverty headcount ratio was 30.5 percent in 1989 and is 16.8 percent in 2001, while access to improved water and sanitation is now 92 percent and 98 percent respectively. The country ranks 78th.on the UNDP Human Development Index and is likely to attain many of the MDGs, including targets on poverty, child malnutrition, universal primary education, and access to safe drinking water. However, the Government of Jamaica (GoJ) is faced with a debt burden (estimated at 150 percent of GDP with interest payments of about 16 percent of GDP) and social issues that predominantly affect youth, such as high levels of crime and violence, and high unemployment (where the job-seeking rate is over 25 percent).

The Government’s sustainable poverty reduction strategy includes the following pillars -

• Restoring economic growth;
• Protecting the poor and ensuring inclusion;
• Improving governance, efficiency and effectiveness in the public sector; and
• Ensuring sustainable development.

In 2004, GoJ presented a Medium Term Socio-Economic Policy Framework (MTSEPF) for April 2004 – March 2007 with EC assistance in the document’s preparation. The MTSEPF builds on the overarching policy framework established in the 1996 National Industrial Policy (NIP) which was designed to provide a systematic, holistic and comprehensive approach to the development of the country into the 21st.century.

ODA in the form of loans, grants and technical assistance continue to support Jamaica’s development agenda. In 2001-02, the top five donors of gross ODA in Jamaica were the EC, USA, Caribbean Development Bank (CDB), Canada and Japan. Bilateral donors’ share of gross ODA in this period was around 55 percent with its sectoral distribution as follows – (i) approximately 55 percent was used in the social sectors (with about 10 percent each for the education sector as well as the health and population sector) and (ii) of the remaining 45 percent, roughly 12 percent was spent on economic infrastructure and services. However, in 2003, the level of new ODA declined by 53.1 percent compared with 2002 (mainly due to the government’s decision to restrict new borrowing due to fiscal restraint). Grants accounted for about 76 percent of total ODA in 2003, with the EC being the largest provider of grant resources to Jamaica.

There are fifteen donors (multilateral and bilateral) with active programs in Jamaica. The Planning Institute of Jamaica (PIOJ), through its Technical Cooperation Division, is the primary interlocutor for all donors. Donors are supporting the Government’s efforts on harmonization (e.g. in the areas of procurement, financial management and environmental safeguards). The World Bank (WB) is taking the lead on the donors’ side and its resident representative is the point of contact with other donors on harmonization. The UN group, including specialized agencies, is coordinating through the Resident Coordinator Office in the UNDP.

Donor coordination is achieved through a number of working groups (e.g. on poverty, education, infrastructure, and environment), theme groups (on HIV/AIDS – chaired by UNICEF, and on Social Capital – co-chaired by UNDP/WB), an annual donors’ retreat coordinated by the UN Resident Coordinator, and ad-hoc policy meetings with government counterparts.

Donors are establishing a shared fund to improve the quality and responsiveness of public services.

IADB funded a consultant (Sept. 2003 – April 2004) to assist PIOJ in developing their donor coordination and harmonization capabilities, which included, among other things, writing TORs for projects for possible funding and technical support for GoJ.

Under the Parish Infrastructure Development Program (PIDP), IADB is working with the Ministry and CIDA to develop an overall program with shared objectives and determine separate but coordinated funding activities in the area of local government reform.

In conjunction with an IMF Staff Monitored Program (SMP), IADB is funding a financial sector reform program whose goals are coordinated with the SMP. The WB and the Caribbean Development Bank (CDB) funded parallel sector reform programs that were closely coordinated in their preparation and execution with the IADB program.

Along with other donors, CIDA supported a joint public sector modernization program, pooled resources for a regional HIV/AIDS program, and provided budgetary support.

DFID and WB are working toward a common country strategy. Also, IADB and WB are collaborating on key issues in country strategy planning.

The IADB and WB share information (e.g. on loan disbursement systems, policies and procedures) and audit tools to evaluate Supreme Audit Institutions (SAIs) and audit firms. A quality control review of independent auditors ( in audit firms and SAIs) was completed in July 2003.

A follow-up CFAA is being jointly prepared by IADB and WB.

CIDA, Caribbean Community (CARICOM) and IADB conducted a joint Procurement Assessment under the Caribbean Regional Procurement Framework Review. IADB and WB plan to prepare a joint CPAR update that will also include topics not covered under Caribbean Regional Procurement Framework Review.

IADB led the International Development Partners (IDP) in support of (a) the case study of progress in harmonization and alignment in Jamaica and (b) GoJ's In Country Harmonization Workshop in October 2004.

GoJ was represented at the IADB-sponsored Latin America and Caribbean Regional Workshop on Harmonization and Alignment for Development Effectiveness and Managing for Results which was hosted by the Government of Honduras in Tegucigalpa on November 8-10, 2004.

Both workshops were in preparation for the Second High-Level Forum (HLF-2) on Harmonization and Alignment in Paris, Feb. 28-March 2, 2005.