Medium Term Socio-Economic Policy Framework 2004-2007

The Medium Term Socio-Economic Policy Framework (MTF) was approved by Cabinet in 2004 and embodies the GOJ's development strategy for the period 2004-2007. The MTF is comprehensive combining macro-economic, social, environmental and governance policy objectives. The MTF has also created a platform for greater collaboration among donors/lenders in undertaking analytical work and in developing their respective country strategies, as well as for greater alignment with GOJ's strategic priorities.

A central plank of the MTF is the achievement of macro-economic stability. The policy framework highlights 3 areas of focus: fiscal policy, monetary policy and private sector development.

The MTF calls for prudent fiscal management and focuses on strategies to maintain the primary surplus in excess of 10% and reduction of public sector expenditure and indebtedness.

On the monetary side, a central objective is to control inflation in the single digit range by reducing the spread between lending and borrowing rates.

To promote private sector development, the framework speaks to maintaining a competitive real exchange rate while facilitating a convergence in inflation rates between Jamaica and its main trading partners as well as reducing real interest rates to less than 5%.

The second plank of the MTF is the promotion of social stability through the consolidation of social sector gains achieved over past decades and fostering social cohesiveness, and protection of the most vulnerable.

With respect to education and training, the MTF is cognizant that there have been high levels of investment in education without concomitant results relating to quality and access. In this regard, the medium term focus will be given to improved educational outcomes. Some areas to be given particular focus are:

• Early childhood education
• Promotion of full access at all levels of the education system
• Teacher training
• Improved teaching and learning processes
• Full enrollment at Upper-Secondary Level
• Improved governance & management

The overarching goal of the MTF for the health sector is the prevention and control of morbidity and mortality. Some areas to be given particular emphasis during the medium term include:

• Improved service delivery standards
• HIV/AIDS prevention and care
• Control of preventable diseases
• Reduction of child and maternal mortality rates

The MTF recognizes that improved national security and justice are critical to macro-economic and social stability. The document lays focus on the maintenance of law and order, reduction of crime and violence and improving the administration, access and delivery of justice.

In terms of national security, some of the strategies identified in the MTF are:

• Improving the capacity of the Jamaica Constabulary Force (JCF) and related organizations
• Building and maintaining a modern law enforcement infrastructure
• Elaboration and implementation of efforts through community crime prevention strategies
• Reduction in the incidence of youth crime
• Rehabilitation of prison inmates

The focus areas for Justice include:

• Improved access to justice through efficiency of processes and systems
• Legislative reform to support social stability and human rights

An essential part of the strategy to be followed is building a base for the breaking of intergenerational poverty through expansion of access to early childhood development services and secondary education, as well as better targeting of limited resources to the poor and the promotion of equity. These will be complemented by direct poverty alleviation programmes and micro enterprise support.

Programmes to promote access to adequate sanitation, safe and secure housing and Social Safety Net Reform are central to achieving the goal of poverty alleviation.

In terms of the environment the overall goal for this sector is to ensure environmental sustainability. Managing the effect of the economic activities on the natural resources is necessary to minimize detrimental effects on the environment and ensure sustained economic activities.

Focus areas for the environment include:

• Land use planning and management
• Hazard mitigation
• Forestry and watershed management
• Coastal zone management
• Urban management

Another goal of the MTF is improved governance. The document envisages:

• A modern society that is governed by participatory democracy, accountability, transparency and fairness
• Leadership with a clear and coherent vision
• An agreed and settled understanding of the role of the state, private sector and civil society
• A high quality and efficient public sector

MTF is cognizant of cross cutting priorities which must be addressed if macro and social stability are to be attained.

• HIV/AIDS: Recognizing that this is not solely a health problem but will require an integrated approach
• Children: Promoting and protecting the rights of children and ensuring their survival
• Youth: Implementation of the National Youth Policy which seeks to define a common vision and framework for youth development
• Gender: The promotion and support of initiatives aimed at achieving gender equality and empowerment
• Persons with Disabilities
• The Elderly

MTF Monitoring
The need to establish a regime for monitoring the implementation of the MTF was recognized during the development of the MTF.

A robust monitoring system for the MTF is being established in an attempt to enhance the management of the development process and improve the targeting of limited resources on key priorities. It is intended to:

• Support accountability of the GOJ to the public for its policy choices within the MTF
• Support GOJ decision-making and budgetary prioritization
• Promote evidence-based dialogue between the various stakeholders on development policies and priorities
• Support local and international reporting requirements (such as the MDGs, SERPIII and CDI)

The PIOJ and its partners have utilized a results based management approach in formulating the economic & social policy matrices which serve as the bases for monitoring progress towards the achievement of goals outlined in the policy. Over 50 outcome and impact indicators linked to performance targets have been developed by sector ministries and agencies for monitoring. Thematic Working Groups (TWGs) are to be the main mechanisms for monitoring and evaluation of the priority areas highlighted in the MTF, as well as to track progress against agreed performance targets in these areas.

To date, seven TWGs have been established and have approved the holding of quarterly meetings. Some TWGs are more advanced than others. While some are still in the process of refining terms of reference, indicators and work plans; others are tracking progress against agreed targets.