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Ministry of Finance and the Public Service Fiscal Policy Paper 2017 98 | P a g e

Establishment of Pre-Investment Evaluation Fund (PIEF) - It is recognised in the development of the PIMS that the Government will require significant investments in assessment and evaluation of projects and other types of business cases (for example, Public Private Partnerships) in order to fully optimise the Public Sector Investment Programme (PSIP). It is with this understanding that the Ministry of Finance and the Public Service in collaboration with the Secretariat and the World Bank has established the PIEF. The mechanisms for the administration and operations of the fund were approved by the PIMC and funds are now available for access by MDAs who are in need of support. The fund will facilitate and provide resources for the implementation of technical assistance activities for the design, monitoring and evaluation of PIM Projects. These are projects that have been identified as having the capacity to deliver sound investments in quality infrastructure and public services. The fund will also assist in establishing a structure where limited public resources are allocated in the most efficient and effective manner. The fund will support key pre-investment actions such as feasibility assessments; process reviews; cost benefit analysis; socio-economic and environmental assessment; and other technical studies aimed at improving the quality of the final project design and ultimately the effectiveness and efficiency of the PSIP. A total of $40mn has been provided for the Fund in FY 2017/18.

Development of a Public Investment Management Information System (PIMIS) - The first stage of the development commenced in FY 2015/16 with the development of a project database. This database currently captures detailed information on all project financed through the central government and profiles of the majority of projects financed by public bodies. The database is also used by the Ministry of Finance and the Public Service as a tool to provide reports on the status of key development projects in the Central Government portfolio.

The second phase of the development is the procurement of a state of the art Management Information System that will track investments at all stages of the project cycle. The Ministry has completed the user requirements for the system and is now in the process of completing the technical specifications that will form part of a Request for Proposal (RFP). Procurement of the system is delayed but is slated to begin in FY 2017/18.

The FY 2017/18 – FY 2021/22 presented in the table below, incorporates investment projects funded through GOJ resources, revenues generated by the public bodies as well as through loans and grants from multilateral/bilateral institutions.

The notes below represent some of the major development projects and programmes listed by sector which will be implemented by Central Government MDAs, with assistance from multilateral/bilateral institutions, through to FY 2021/2022.

SOCIAL SECTOR

Support for the Social Safety Net The Programme of Advancement Through Health and Education (PATH) offers assistance in the form of grants to two (2) categories of beneficiaries: (i) children/students ages 0 – 19 years; and (ii) adult poor including the disabled, elderly, pregnant and lactating mothers and the destitute. Another safety net component of the programme is the Steps-to-Work (StW) initiative, which targets working age members of PATH eligible households for referral to relevant support services to enable them to seek and retain employment.

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GREEN PAPER – National Policy for Senior Citizens

The third issue is the challenge the elderly faces in accessing rehabilitation and emergency assistance.

The distribution channel can be onerous and extremely difficult for the elderly particularly in terms of

their ability to compete with younger and able bodied persons in long queues and having to travel

back and forth to site of distribution. The study also identified that the government rehabilitation fund

has an age limit of 45 years old, thus excluding the older person.

2.6 Social Protection

2.6.1. Social Assistance Programmes (non-contributory)

Programme of Advancement Through Health and Education (PATH)

Elderly persons (60 years and older) in families deemed eligible for PATH will receive a cash transfer,

once they are not already in receipt of a NIS pension. At the end of 2014, there were 64,355 elderly

persons registered on PATH. For the financial year 2011/2012 some 57,644 elderly benefited from

PATH accounting for 15.5 per cent of total beneficiaries /making them the second largest category

after children.

Poor Relief programmes target registered poor individuals (under Poor Relief Act) and provide support

including food packages and clothing. Programmes are implemented by Parish Councils under three

categories: Outdoor, Indoor and Temporary Poor. Indoor Poor Relief refers to services provided

through 13 residential institutions across the country and outdoor for those not living in Government

institutions. In 2015, 47.5 percent of the 12,429, registered persons in the Outdoor category were

elderly. Males accounted for 51.6 per cent (3,049) in this age group. The Indoor population of elder

at the end of 2015 was 1,031 with more males than females persons (630 male: 401 females).

National Health Fund

The NHF provides two categories of benefits: (i) Individual Benefits, which directly assist patients; and

(ii) Institutional Benefits, which support governmental and non-governmental organizations. The Indi-

vidual Benefits provides a drug subsidy to persons of all ages – regardless of socio-economic status

- in filling prescriptions for any of the 15 specified chronic illnesses.5

The most common NCD’s which affect the elderly are included in coverage under the NHF, that is

hypertension, diabetes, arthritis and psychiatric disorders. However, one study shows that only 39

per cent of elderly were using this benefit (Eldemire et al 2012, p. 150). There was significant disparity

by education and socio-economic status, noting that “the university-educated the elderly had a 220

per cent higher likelihood of having NHF...” (p. 150). While the service is available to persons of all

socio-economic status groups, there is a need to explore why the uptake is so much higher among

those of higher socio-economic status groups.

Enrolment between 2009/2010 and 2013/2014 for NHF has fallen (Table 2). There has also been a reduction

in the annual enrolment between period 2009/2010 and 2013/2014, moving from 32392 to 30020.

Table 2: NHF Card Enrolment and Benefits 2009/2010 - 2013/2014

5Breast cancer, prostate cancer, Hypertension, ischemic heart disease, rheumatic fever/heart disease, high cholesterol, vascular disease, diabetes, epilepsy, major depression, glaucoma, psychosis, asthma, arthritis, and benign prostatic hyperplasia (BPH).

Particulars 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014

Annual Enrolment 32,390 26,890 29,568 24,996 30,020

Cumulative Enrolment 244,853 271,743 301,311 326,307 356,327

Benefits ($M) $2,040.68 $2,177.78 $2,588.86 $3,037.56 $3,424.35

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December 2016 Page 20 of 104

Socio-economic Determinants of Poverty Among the main issues identified as the determinants of poverty in Jamaica are low educational attainment levels, low income earning capability, inability to access basic social services, lack of economic opportunities leading to underemployment, unemployment and low wage employment, poor rural development impacting the opportunities and livelihoods of rural households and high levels of risks due to natural hazards (PIOJ, 2009). The industries in which the poor mainly worked include Agriculture, Forestry & Fishing (24.4 per cent); Wholesale & Retail, and Repair of Motor Vehicle/Equipment (20.6 per cent); Construction (11.3 per cent); and Private Households with Employed Persons (8.7 per cent) which are traditionally associated with lower income occupations. The data further identify that heads of poor households had lower levels of educational attainment than heads of non-poor households. Some 3.5 per cent of poor household heads had completed tertiary education, 20.2 per cent attained primary, 23.5 per cent completed secondary and 50.9 per cent completed some secondary schooling. The majority (70.6 per cent) of the poor went to public health-care facilities when ill, 24.8 per cent to private facilities and 4.5 per cent to other types of facilities. Comparatively, 51.7 per cent of the non-poor went to public health-care facilities when ill, 41.6 per cent to private facilities and 6.6 per cent to other types of facilities. Some 5.6 per cent of the poor had health insurance compared with 22.0 per cent of non-poor although their likelihood of having Non- Communicable Diseases was 22.2 per cent and 26.7per cent respectively. There are psycho-social, cultural, and normative features of society that perpetuate poverty. Consultations with key stakeholders revealed that these norms and practices include beliefs associated with childbearing and the definition of gender roles. These enable practices that impact household consumption, cognitive development, and educational outcomes, and place both household heads and members of the household at risk of poverty.3Family dynamics and instability also affect healthy child development, failure of which results in juvenile delinquency, child abuse and poor educational performance (Le Franc, Bailey and Branch, 1998:1 as cited in Rickets and Anderson 2009, 5).The quality of service delivery to the poor and access to information were also identified by stakeholders as factors impacting the quality of life of the poor. Poverty Reduction Context and Programmes Poverty reduction programmes are primarily state-led though there are non-government organizations engaged in poverty reduction efforts. For the financial year (FY) 2013/14, government spending on select poverty-reduction related programmes identified by MDAs was approximately $18.6 billion and $20.5 billion for the same set of programmes in FY 2014/15. The Programme of Advancement Through Health and Education (PATH) is the main programme aimed at poverty reduction and is implemented through the Ministry of Labour and Social Security. Other major poverty reduction programmes are implemented through the 3PIOJ Key Stakeholder Consultation held August 25, 2015.

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December 2016 Page 79 of 104

Psycho Social Factors: There are psycho social cultural and normative features of society that perpetuate poverty. The family which is generally accepted as the primary agent of socialization providing the nurturing environment in which functional adults are grown has been faced with numerous challenges. Stability in the family is critical to healthy child development, failure of which results in juvenile delinquency, child abuse and poor educational performance (Le Franc, Bailey and Branch, 1998:1 as cited in Rickets and Anderson 2009, 5). Breaking the intergenerational cycle of poverty is therefore requires healthy family structures that enable children to function optimally in their adults years. Consultations with key stakeholders revealed that cultural norms and practices perpetuate poverty. Concepts associated with childbearing, gender definition and poor customer service enables practices whose consequences impact service delivery, household consumption, cognitive development and educational attainment levels. Current Programmes Poverty Reduction Programmes Poverty Reduction Programmes span a range of interventions implemented through a number of government ministries departments and agencies as well as non-government organizations. Among the main programmes aimed at poverty reduction are: 1. PATH Programme 2. Steps To Work Programme (PATH) 3. Poor Relief Programme 4. School Feeding Programme 5. Social Housing Programme 6. The Possibility Programme 7. Community Investment Project 8. Integrated Community Development Project 9. Poverty Reduction Programme III & IV 10. Petro Caribe Schools’ Sanitation Upgrade Project 11. Basic Needs Trust Fund 7 12. Community Renewal Programme (CRP) 13. Sugar Area Development Programme 14. Rural Economic Development Initiative The merits and outcomes of programmes aimed at poverty reduction have been varied over the years. Below is a summary of the outcome or impact of these programmes which are at various levels of implementation. PATH: The Programme of Advancement through Health and Education (PATH) is in its thirteenth year of implementation, and is administered through the Ministry of Labour and Social Security. It is a conditional cash transfer programme designed to promote human capital formation especially among children and youth in an effort to break the intergenerational cycle of poverty. It is described as the “centrepiece of the government’s social protection system for

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consultations with key participants in the PIMS. The sessions will continue to FY 2016/17 following

which, Cabinet approval will be sought.

Establishment of Pre-Investment Evaluation Fund (PIEF) - It is recognised in the development of

the PIMS that the Government will require significant investments in assessment and evaluation of

projects and other types of business cases (for example, Public Private Partnerships) in order to fully

optimise the Public Sector Investment Programme (PSIP). It is with this understanding that the

MOFPS in collaboration with the Secretariat and the World Bank has initiated actions to establish a

PIEF. This fund will support key pre-investment actions such as feasibility assessments; process

reviews; cost benefit analysis; socio-economic and environmental assessment; and other technical

studies aimed at improving the quality of the final project design and ultimately the effectiveness and

efficiency of the PSIP. A total of J$30.0mn has been provided for the Fund in FY 2016/17.

Development of a Public Investment Management Information System (PIMIS) - The first stage

of the development commenced in FY 2015/16 with the development of a project database. This

database currently captures detailed information on all project financed through the central

government and profiles of the majority of projects financed by public bodies. The database is also

used by the MOFPS as a tool to provide reports on the status of key development projects in the

Central Government portfolio.

The second phase of the development is the procurement of a state of the art Management

Information System that will track investments at all stages of the project cycle. Procurement of the

system is scheduled to commence in FY 2016/17.

The FY 2016/17 – FY 2020/21 presented in the attached table incorporates investment projects

funded through GOJ resources, revenues generated by the public bodies as well as through loans and

grants from multilateral/bilateral institutions.

Presented below are some of the major development projects and programmes listed by sector, which

will be implemented by Central Government MDAs through to FY 2020/2021, with assistance from

multilateral/bilateral institutions.,

SOCIAL SECTOR

Support for the Social Safety Net

The Programme of Advancement Through Health and Education (PATH) offers assistance in the

form of grants to two (2) categories of beneficiaries: (i) children/students ages 0 – 19 years; and

(ii) adult poor including the disabled, elderly, pregnant and lactating mothers and the destitute.

...
June 12, 2021


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