Growth and Poverty Reduction Strategy (GPRS) 2014-2018

GRENADA’s GROWTH AND POVERTY REDUCTION STRATEGY (GPRS), 2014-2018 November 2014 2 Grenada’s Growth and Poverty Reduction Strategy (GPRS) 2014 – 2018 Prepared by Patrick A. Antoine Ph.D Chief Policy Advisor Government of Grenada and Timothy G. Taylor Ph.D Professor Emeritus Consultant, EconoTech Ltd. and Michael Church, MSc. Consultant, EconoTech Ltd. November 2014 All errors and omissions are the responsibility of the authors. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada i Acknowledgements In developing and finalizing the 2014-2018 GPRS, the Consultants benefited from a number of precedents and initiatives, including the following: a. Subject matter consultations held in 2012 and 2013 in shaping the New Economy as a development construct for Grenada; b. The Alternative GPRS prepared by the Non-States Actors; c. The high-level consultations led by Ronald Harford and the Team at Republic Bank; d. The Consultations for the preparation of the both budgets ("mini-budget" in 2013, and the more recent 2014 budget); e. Stakeholder consultations held as part of the preparation of the Home-Grown Adjustment Program; f. Consultations with the Trade Unions, the "Captains of Industry" in the private sector. g. The OECS Growth and Development Strategy; h. Recent work on behalf of the Grenada Coalition of Service Industries; as well as i. Unpublished analytical work by colleagues. The preparation of this GPRS under pressing deadlines would not have been possible without the camaraderie that existed among the contributors, namely, Professor Emeritus, Dr. Timothy Taylor, Mr. Michael Church, Ms. Gisele Mark, as well as timely contributions by Diana Francis of the Inter-American Institute for Cooperation on Agriculture (IICA). These colleagues worked tirelessly over the December holiday period in relentless pursuit of the end of year deadline and their contributions are fully acknowledged and deeply appreciated. The work by the Policy Unit, Ministry of Finance in the development of the log-frame, under the pressing time-frames, is a promising signal. The financial support provided by the Consulting Firm, ECONOTECH Limited to the execution of the GPRS, through coverage of the direct and indirect costs of the consultants is acknowledged. The ECONOTECH Team would like to thank the Government of Grenada (GoG) for the opportunity to make its contribution on this important initiative. Patrick Antoine Ph.D. Chief Policy Advisor Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 ii Table of Contents 1. GRENADA AT THE CROSS-ROADS .............................................................................................. 2 1.1 Grenada’s Economic History ....................................................................................... 2 1.1.1 Economic Transition ....................................................................................................... 2 1.1.2 Historic Economic Performance .................................................................................. 3 1.2 Recent Economic Developments ............................................................................... 6 1.2.1 Evolution of Debt 2000-2011 ......................................................................................... 6 1.2.2 Composition of GDP by Economic Sector, 2000-2012 .............................................. 8 1.2.3 Performance of the Tourism Sector ........................................................................... 14 2. ECONOMIC PERFORMANCE AND POVERTY IN GRENADA .......................................................... 17 2.1 Measuring the Impoverished ..................................................................................... 17 2.2 The Millennium Development Goals Framework .................................................... 18 2.3 Risk and Vulnerability Assessment to Date ............................................................... 19 2.4 Social Protection Programs – Safety Nets ................................................................ 20 3. ANTECEDENT GPR APPROACHES AS BUILDING BLOCKS ............................................................ 22 3.1 Reviewing Macro Approaches-Strategies to GPR .................................................. 22 3.2 Reviewing Social and Economic Empowerment Strategies ................................. 24 3.2.1 MDG Poverty Reduction/Alleviation ......................................................................... 24 3.2.2 National Social and Economic Empowerment Strategies ..................................... 27 3.2.3 Reviewing “Pro-Poor” Strategies and Interventions ................................................ 35 3.3 Implementation and Constraints – Lessons Learned .............................................. 37 4. SOWING THE SEEDS OF A GPRS – A CONCEPTUAL FRAMEWORK................................................ 39 4.1 The Imperative of a Long Term Vision and Strategy ............................................... 39 4.2 Economic Growth ....................................................................................................... 39 4.3 Pro-Poor Growth, Poverty Reduction and the New Economy ............................. 40 5. GETTING THE MACRO-ECONOMIC FUNDAMENTALS RIGHT ........................................................ 45 5.1 External Environment ................................................................................................... 45 5.2 OECS Economic Union ................................................................................................ 46 5.3 National Macro-Economy .......................................................................................... 49 5.3.1 Fiscal Policy ................................................................................................................... 49 5.3.2 Debt Management ..................................................................................................... 53 Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada iii 5.3.3 Employment and Productivity .................................................................................... 56 6. TRANSFORMING GRENADA ...................................................................................................... 61 6.1 The New Economy ...................................................................................................... 61 6.2 Thematic Focus I: Building Resilience ....................................................................... 63 6.3 Thematic Focus II: Developing Competitiveness with Equity ............................... 70 6.4 Thematic Focus III: Reducing Vulnerability ............................................................. 86 6.5 Thematic Focus IV: Governance, Justice and Citizen Security ............................ 95 6.6 Cross-Cutting Issues ................................................................................................... 108 6.6.1 Human Resource Development (HRD) ................................................................... 108 6.6.2 Human Health and Wellbeing .................................................................................. 109 6.6.3 Information and Communication Technologies (ICT) .......................................... 109 6.7 Monitoring Development: ........................................................................................ 111 7. IMPLEMENTATION, MONITORING AND EVALUATION ................................................................. 112 7.1 Implementation: Public Sector Investment Program 2013-18 ............................. 112 7.2 Monitoring and Evaluation: Principles, Tools, Plans ............................................... 114 7.3 Institutional Arrangements ....................................................................................... 116 ANNEX 1 RESOURCE FRAMEWORK .................................................................................................. 119 ANNEX 2 PLANNING FRAMEWORK .................................................................................................. 135 Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 iv Acronyms CARCIP Caribbean Regional Communications Infrastructure Program CARDI Caribbean Research and Development Institute CB Commercial Banks CBOs Community Based Organizations CBD Convention on Biological Diversity CSO Central Statistics Office CPRS-AP Country Poverty Reduction Strategy and Action Plan CTA Caribbean Tourism Association CU Credit Unions DPA Department of Public Administration ECERA Eastern Caribbean Energy Regulatory Authority ECF Extended Credit Facility EHRD Education and Human Resource Development EM Environment E.U. European Union FAO Food and Agriculture Organization FO Farmer Organizations GARFIN Grenada Authority for the Regulation of Financial Institutions GBA Grenada Beekeepers’ Association GBS Grenada Bureau of Standards GCIC Grenada Chamber of Industry and Commerce GDB Grenada Development Bank GFNC Grenada Food and Nutrition Council GHA Grenada Housing Authority GHTA Grenada Hotel and Tourism Association GIDC Grenada Industrial Development Corporation GIS Government Information Service GoG Government of Grenada GRENLEC Grenada Electricity Company GRPF Grenada Royal Police Force GTA Grenada Tourism Authority GTUC Grenada Trades Union Council HS Hospital Services ICT Information Communication Technology IICA Inter-American Institute on the Cooperation of Agriculture IRD Inland Revenue Department MEFF Ministry responsible for Environment, Forestry and Fisheries MNIB Marketing and National Importing Board Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada v MOA Ministry responsible for Agriculture MOC Ministry responsible for Communications MOCD Ministry of Community Development MOCu Ministry responsible for Culture MOE Ministry responsible for Education MOED Ministry responsible for Economic Development MOF Ministry responsible for Finance MOFO Ministry responsible for Foreign Affairs MOH Ministry responsible for Health MOHo Ministry responsible for Housing MOLA Ministry responsible for Legal Affairs MOSD Ministry of Social Development MOT Ministry of Tourism MTESP Medium Term Economic Strategy Paper Plan MTSP Medium Term Strategic Plan NAWASA National Water and Sewerage Authority NGOs Non-Government Organizations NMA National Medical Association NMH National Media Houses NSA Non- State Actors NTA National Training Agency OECS Sec. Organization of Eastern Caribbean States’ Secretariat PAHO Pan American Health Organization PCL Produce Chemist Laboratory PRC Peoples’ Republic of China PTAs Parent Teachers’ Associations SAP Structural Adjustment Plan SGU St. George’s University SPEED Strategic Plan for Educational Enhancement and Development TAMCC T.A. Marryshow Community College TNP The National Parliament Trade DEPT. Department of Trade UWI University of the West Indies Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 1 Introduction Fellow Citizens, Development Partners and Friends of Grenada, for Developing Countries, fostering economic growth, increased employment, and managing the high levels of debt feature among the most pressing challenges of the millennium. This GPRS is rooted in our “contract with the Grenadian people” entered into on February 19th, 2013. This contract embodies a commitment on the part of Government to provide opportunities for all who desire a future where they can realize the opportunity for a fulfilling life, where they can achieve their full potential, and are prepared to work for it. Our 2013-2018 Growth and Poverty Reduction Strategy (GPRS) responds to these challenges. It is an important consensus policy statement which signals the alignment of the priorities of our people with the resources required to address them. This is particularly critical at this tumultuous period in the global and domestic economy. This GPRS also represents a policy statement which coalesces our actions across diverse stakeholder groups and interests, macro-economic objectives, socio-economic, cultural and political contexts. Based on our consultations, we elucidate two primary constructs, “pro-poor growth” and the “New Economy,” as the guiding premise for our actions and interventions at the macro-economic, sector and institutional levels over the next five years. We are convinced that such a future filled with hope can only be achieved through the achievement of the Millennium Development Goals (MDGs), particularly those related to reducing the levels of hunger and poverty. The 2013-2018 GPRS will act as the framework through which the actions and interventions of my Government and our development partners can be situated to achieve the greatest impact, while providing a benchmark for continuous monitoring and evaluation of the effectiveness of our actions in addressing the challenges of job creation, poverty reduction and economic growth. As chief public servant, I am gratified, along with Cabinet, to have presided over the process of preparing this document. Indeed, we have already commenced implementation of many of the actions contained herein. We invite all, including our development Partners to join with us in ensuring that we achieve an unprecedented level of implementation of the priority actions and projects outlined in this GPRS. Indeed, “our best years are yet ahead”. The Hon. Keith C. Mitchell Minister of Finance Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 2 1. GRENADA AT THE CROSS-ROADS 1.1 Grenada’s Economic History 1.1.1 Economic Transition Over the course of its 37 year history, Grenada’s transition from a colonial to an independent economy has been marked by varying degrees of support from the United Kingdom (UK) and other countries. For many years, preferences for traditional commodities such as bananas and sugar remained in place and significant overseas development assistance (ODA) was received. While it can be argued, that such policies were necessary for Grenada’s early economic transition, they had the unintended consequence of maintaining an economy and economic mentality based on the status quo. In essence, the economy remained anchored largely on traditional exports supported through preferential treatment, protection from competition through high tariffs and access to ODA. There were limited incentives for the economy to develop a competitive dynamism built on the country’s true competitive advantages. In the 1990s, the global economic environment facing Grenada began to change. The creation of the World Trade Organisation (WTO) and the development of the North American Free Trade Agreement (NAFTA) were manifestations of the movement toward liberalized trade on a global and regional level. The deepening of economic integration in the European Union (EU) put traditional preference and support regimes (e.g. the Lomé Conventions) under scrutiny. While small island states, such as Grenada, argued for special and differential treatment and continued unilateral preferences, such pleas were largely unsuccessful. As a result the annual rate of economic growth in Grenada, and other small island states, began to decline and debt began to accumulate. While in many ways, Grenada’s economic experience has been similar to its Organisation of Eastern Caribbean States (OECS), associates since 2001, Hurricanes Ivan (2004) and Emily (2005) obliterated its economy and exacerbated its debt situation to a far greater extent than the others. As Grenada moves into the second decade of the new millennium, the country is at a crossroads where significant structural and institutional changes are required if economic growth and prosperity are to return. What is needed is an economy built on competitive advantage, entrepreneurship and the ability to adapt to changing economic conditions. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 3 1.1.2 Historic Economic Performance Grenada’s historic economic performance can first be assessed by examining the behaviour of real Gross Domestic Product (GDP). The evolution of real GDP over the 1983-2012 period is well approximated by a simple linear trend regression (R2 = 0.95). This linear trend can be considered as representing long-term trend growth. For any given year, the deviation in actual growth from trend growth captures cyclical variation that enables a depiction of periods of above trend and below trend growth (Figure 1).  1983 -1990 Over the 1983 to 1990 period, GDP growth averaged about 6.5% per annum. This period began with two significant events: the ousting and execution of the then Prime Minister, Maurice Bishop, and the subsequent military invasion by the United States (US). The policy environment at this time was influenced by Lomé III, which placed emphasis on the import-substitution industrialization development (ISI) paradigm. The country was the beneficiary of unilateral preferences in European markets, and considerable aid transfers provided by Europe and the US, through the Caribbean Basin Economic Recovery Act (CBERA) enacted in 1984. As can be seen (Figure 1), real GDP growth over this period was consistently above long-term trend. Growth declined significantly following the coup and invasion, followed by acceleration as a result of post-invasion reconstruction. From 1987 to1989, the annual rate of growth declined, but remained above trend growth. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 4  1990 to 1999 The majority of the 1990 to 1999 period was characterized by below trend growth in real GDP. Over this period, real GDP growth averaged about 4.4% per annum. The major external events that occurred during this period included the ratification of NAFTA and the creation of the WTO. In response to the creation of the WTO, a decision was taken that the Lomé agreements would end in 2000 and be replaced by what became known as the Cotonou Agreement. This was done in order to bring EU support for African, Caribbean and Pacific (ACP) countries into compliance with the provisions of the WTO. In response to these changes in the global trade policy environment, as well as changing development paradigms, Grenada began moving from policies predicated on ISI to those based on export-led growth. A key part of this change was the pursuit of policies intended to promote economic diversification, especially in terms of agriculture. The conventional thinking at this time was that the WTO signalled the eventual end to preferences for traditional crops such as bananas and sugar. Additionally, it was believed that many Caribbean countries had at least a potential competitive advantage in the production and export of non-traditional agricultural commodities. Consequently, attempts were made to foster the development of non traditional agricultural product enterprises as a means of increasing export revenues and providing some measure of import substitution. It is difficult to definitively explain the below trend performance of GDP growth over this period, however some causes may be speculated. At the beginning of the decade, the first Persian Gulf War resulted in a rapid escalation of energy prices which negatively impacted Grenada. Also, attempts to diversify the agricultural sector ran into head-winds, both in terms of the loss of competitive position, as NAFTA eroded preferences initially provided by the CBERA, and limited success achieved in developing commercially viable non traditional agricultural enterprises. Further, it can be argued that economic institutions in Grenada were ill-prepared for a transformation from unilateral trade preferences and significant foreign aid to a more liberalized trading environment. It should be noted, however, that by the end of the decade the GDP had returned to above long-term trend. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 5  2000 to 2012 Real GDP growth from 2000 to 2012 was the most volatile period in Grenada’s history as an independent nation. Indeed, from 2000 to 2005 real GDP growth averaged about 5.5% per annum while over the 2006 to 2012 period, GDP fell at an annual rate of 0.4%. Real GDP growth returned in 2011, but it has been very anaemic. All of this volatility was as a result of forces beyond the country’s control. In 2001, the terrorist led attacks on the U.S World Trade Centre (WTC) led to a short-term disruption in tourism that led to a decline in tourism. Just as the economy started to rebound, the country was devastated by Hurricane Ivan in 2004 and hit by Hurricane Emily in 2005. Following a significant decline in real GDP, as a result of the devastation and loss of tourism revenues, real GDP growth increased to above trend reflecting the rebuilding efforts. However, the global oil price spike in 2007 followed by the global financial crisis that began in 2008 (with elements that continue today), caused a precipitous decline in GDP to well below trend. Figure 2 depicts the evolution of the annual growth rate in real GDP from 1983 to 2012. There are two fundamental takeaways from the evolution of the annual growth rate in real GDP from 1983, which are of considerable importance to future economic policy in Grenada:  Firstly, and most importantly, (as seen by the trend line fitted to annual GDP growth rate), the rate of real GDP growth has exhibited a downward trend. Stated alternatively, while the size of the economic pie has continued to grow on average over the past 30 years, the rate at which the pie has been increasing is Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 6 slowing down. Consequently, economic goals, such as, increasing employment and real incomes, and reducing poverty are becoming more difficult. There is a tendency to look at the past decade as the major source of Grenada’s current economic difficulties. To be sure, major external events have created historic volatility in real GDP and exacerbated Grenada’s recent debt situation. However, the long-term downward trend in real GDP growth rates suggests that Grenada’s economy requires both structural and institutional transformation. In essence it needs what the current government has labelled a ‘new economy’.  Secondly, the increased volatility of GDP growth, which has been the result of external events must be noted. The optimist may even argue that all of these events were one-off and not likely to be repeated, especially in a period of 8-10 years. It is also true that these events have also greatly exacerbated Grenada’s current debt situation. However, Grenada’s long-term real GDP slowdown and lack of institutional and structural economic changes have also contributed to Grenada’s deep-seated debt problems. 1.2 Recent Economic Developments This discussion defines “recent” as the period beginning in 2000 and focuses on three key aspects of Grenada’s economy: 1) The evolution of the country’s debt to GDP ratio; 2) Sectoral composition of GDP; and 3) Performance of the tourism sector. 1.2.1 Evolution of Debt 2000-2011 Grenada’s public debt comprises both central government debt and public corporation debt. From 2000 to 2011 the debt to GDP ratio increased from 47.5% to 95.7%, an average increase of 8% per annum (Figures 3 and 4). The central government debt to GDP ratio increased from 39% to 87.2% from 2000 to 2011, while for public corporations debt/GDP increased from 7.5% to 10.2% over the same period. As seen in Figure 4, changes in the debt to GDP ratio have demonstrated significant year-to-year variations since 2000. Between 2000 and 2001, and 2001 and 2002, the total debt to GDP ratio increased by about 25% and 47% respectively. For central government, the respective numbers are about 22% and 35%. For public corporations the numbers are 42% and about 98%. In other words, a considerable amount of Grenada’s built-up debt occurred during the first three years of the 2000s. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 7 Excluding 2000-2002, the total debt to GDP ratio increased at an average of 1.8% per annum, central government debt increased at an average of 3.7% per annum while public corporations’ debt decreased at an average of 6.1% per annum. Total debt increased by 13% of GDP in 2004 (Hurricane Ivan) and 13.5% in 2009 (effect of global financial crisis). Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 8 Interestingly, if one eliminates the big jumps in debt in 2000 to 2002, 2004 and 2009, central government debt, as a percentage of GDP, increased by an average of 0.1% per annum and public corporation debt/GDP declined by 7.7% per annum. These data suggest that there may be some cause for optimism regarding Grenada’s debt situation moving forward. The seriousness of Grenada’s current debt situation, notwithstanding the data, suggests that much of the debt build-up was as a result of external circumstances beyond the country’s control rather than disregard for some modicum of fiscal prudence. Barring future major external economic disruptions, prudent government policies have the potential to return the country to a sustainable fiscal path. 1.2.2 Composition of GDP by Economic Sector, 2000-2012 Analysis of the contribution of various economic sectors has provided insight into how changes in the economic environment, both internal and external, have impacted the contribution of various types of economic activities to GDP. Table1 presents the economic contributions to GDP by sector from 2000 to 2011 (and also includes estimates for 2012), while Table 2 depicts year-to-year percentage changes with green cells showing increases of more than 10% and red cells showing decreases of more than 10%. For the most part these changes reflect the impact of global economic events and Hurricane Ivan on economic activity. Table 1 summarizes changes in economic composition of the economy as manifested in Tables 2 and 3. There are a number of noteworthy observations. Firstly, education increased its contribution to GDP by an average of 7.6% per year, and has exhibited very little volatility. Secondly, Public Administration, Defence & Compulsory Social Security increased its contribution to GDP by an average of 2.5% and also exhibited relatively little volatility. Thirdly, other sectors with positive gains greater than 1% were agriculture, forestry and fishing, and electricity and water. Finally, the sectors most negatively impacted by external events since 2000 were manufacturing, whose contribution to GDP declined by an average of 2.7% per annum, construction, real estate, and agriculture, which experienced periods of significant fluctuations in economic contribution to GDP. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 9 Table 1: Composition of Grenada GDP Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Agriculture, Forestry, Fishing 5.99 6.16 7.23 6.81 5.77 3.43 4.53 4.13 4.34 5.28 5.24 5.18 5.61 Manufacturing 5.26 5.18 5.02 4.51 3.87 3.36 3.94 4.17 3.82 3.78 4.01 3.71 3.60 Electricity & Water 3.83 4.25 4.80 4.55 4.10 3.37 4.21 4.44 4.60 4.36 4.50 4.54 4.58 Construction 10.95 8.97 8.82 10.07 10.76 19.29 13.78 12.64 11.25 8.17 8.20 7.25 5.61 Wholesale & Retail Trade 9.16 9.04 9.20 7.72 7.85 8.58 8.93 8.58 8.49 7.47 7.95 8.17 8.17 Hotels & Restaurants 7.11 6.67 6.78 6.98 5.63 2.47 4.82 5.14 4.96 4.99 4.02 4.11 4.37 Transport, Storage and Communications 17.40 16.45 15.06 15.35 15.97 16.14 14.79 14.64 13.47 14.16 13.14 13.17 12.19 Financial Intermediation 7.08 8.45 7.96 8.76 8.47 7.52 7.33 7.35 7.49 7.56 7.25 7.12 7.07 Real Estate, Renting and Business Activities 13.83 14.21 13.97 13.57 13.82 13.87 14.17 13.59 12.72 13.41 13.65 13.67 13.67 Public Administration, Defence & Compulsory Social Security 6.35 5.65 6.22 6.38 6.92 6.01 6.60 6.74 7.73 7.76 8.30 8.42 8.36 Education 8.93 10.76 10.65 10.92 12.22 11.65 12.47 14.48 16.88 18.93 19.32 20.20 22.46 Other* 5.87 5.96 5.93 5.83 6.00 5.58 5.82 5.57 5.72 5.62 5.89 5.77 4.65 * Other includes mining and quarrying, health and social work, other community, social and personal services, and activities of private households as employers Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 10 Table 2: Year to Year Percentage Change in the Composition of Grenada GDP Sector 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Agriculture, Forestry, Fishing 2.94 17.36 -5.90 -15.22 -40.46 31.76 -8.71 5.14 21.53 -0.78 -1.10 10.52 Manufacturing -1.52 -3.04 -10.19 -14.22 -13.23 17.29 6.07 -8.48 -0.99 5.93 -7.31 -2.61 Electricity & Water 10.99 12.99 -5.30 -9.77 -17.92 25.15 5.36 3.64 -5.21 3.19 0.79 -1.31 Construction -18.09 -1.67 14.10 6.91 79.19 -28.53 -8.33 -10.98 -27.35 0.28 -11.48 -2.11 Wholesale & Retail Trade -1.24 1.72 -16.06 1.66 9.34 4.11 -3.95 -1.02 -12.07 6.43 2.77 -3.33 Hotels & Restaurants -6.26 1.68 2.95 -19.33 -56.06 94.56 6.85 -3.61 0.70 -19.54 2.40 0.91 Transport, Storage and Communications 5.45 -8.45 1.93 4.03 1.02 -8.35 -1.04 -7.97 5.16 -7.22 0.23 -0.59 Financial Intermediation 19.43 -5.80 9.96 -3.23 -11.25 -2.55 0.28 1.98 0.89 -4.12 -1.78 -0.98 Real Estate, Renting and Business Activities 2.76 -1.71 -2.82 1.83 0.32 2.20 -4.09 -6.40 5.42 1.77 0.17 -0.28 Public Administration, Defence & Compulsory Social Security 10.94 9.97 2.61 8.49 -13.18 9.80 2.10 14.68 0.40 6.99 1.38 -3.82 Education 20.52 -1.07 2.54 11.92 -4.70 7.08 16.10 16.60 12.15 2.04 4.56 3.24 Other 1.58 -0.57 -1.60 2.78 -7.01 4.31 -4.15 2.57 -1.63 4.72 -2.03 -2.94 Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 11 Table 3: Average Change, Standard Deviation and Coefficient of variation in Sectoral Contributions to GDP Sector Average Standard Deviation CV Agriculture, Forestry, Fishing 1.42 18.77 13.199 Manufacturing -2.69 9.09 -3.380 Electricity & Water 1.88 11.31 6.002 Construction -0.67 28.17 -42.038 Wholesale & Retail Trade -0.97 7.26 -7.490 Hotels & Restaurants 0.44 34.32 78.213 Transport, Storage and Communications -2.22 5.01 -2.252 Financial Intermediation 0.24 7.86 33.299 Real Estate, Renting and Business Activities -0.07 3.26 -47.153 Public Administration, Defence & Compulsory Social Security 2.37 8.45 3.559 Education 7.58 7.81 1.030 Other -0.33 3.58 -10.820 To summarize, since 2000 social programs and government have done fairly well, while the private sector has been buffeted by what might be termed boom/bust mini-cycles.  GDP by Consumption/Expenditure, Trade and Capital Formation GDP is also defined in terms of the following components: GDP = C + I +G + X – M Where C is household consumption, I is gross capital formation, G is government consumption, X is total exports and M total imports. Figure 5 below depicts the evolution of these components over the 1983 to 2012 period. According to the trend, GDP experienced a slowdown from 2009, driven mainly by a decline in consumption expenditures and gross capital formation, with average GDP growth from 2000 to 2009 at 5.2%. The following are some other key indications of the data: Consumption & Expenditures:  Final consumption expenditure is the most significant element of GDP;  Capital expenditures registered a significant increase immediately following Hurricane Ivan, which is correlated with a significant deterioration in the trade balance. This led to an increase in final consumption expenditures which moved GDP significantly above long-term trend. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 12 Trade Balance:  The net trade balance has deteriorated significantly since 1999, as a result of a sharp increase in imports coupled with relatively constant total exports. This has had a negative impact on GDP growth.  However, ceteris paribus, if the trade balance had remained at the average of the level from the period 1983 to 1999, nominal GDP growth would have averaged just over 8% per year.  The low value of exports from Grenada (only US$35 million in 2012), was dominated by agricultural exports (H.S. Chapters 1-24), and exports from the light manufacturing sector. According to the WTO database, this accounted for close to 99% of the Country’s exports. The products of two industries, milling and beverage alcohol, accounted for close to 90% of the Country’s agricultural exports. Non-agricultural manufacturing exports feature two other industry segments of relevance - aluminum fabricated products and paints & finishes. Agriculture in Trade:  Agricultural imports accounted for 23.1% of total imports or US$77,385.00 in 2012. Approximately 18% of agricultural imports are accounted for by poultry and meats, and another 10% represent items that can be produced by the food production system in Grenada.  Grenada, which is fondly referred to as the “Spice Island of the Caribbean”, has a well-deserved reputation historically, as an agricultural producer. The lack of diversification in its export patterns and the declining role of Grenada’s export Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 13 presence within the CARICOM Single Market Economy (CSME) and in extra regional markets, suggest the need for urgent redress. Services in Trade:  The services statistics demonstrate both the concentration of services exports (travel and transportation-WTO definitions) and, the low levels of services performed outside the education, tourism and hospitality sectors.  The services data also reveals the nascent level of commercial service exports from Grenada, including but not limited to the following: communications services (including computer and information and telecommunications), construction services, insurance services, financial services, other business services (comprising trade-related services), professional and technical services (such as legal, accounting, management consulting, public relations services), architectural, engineering and other technical services, agricultural, mining, personal, cultural and recreational services including audio-visual services. The figures (Figure 6 (a) and (b) below capture the evolution of Grenadian exports and imports based on data published by the WTO. (Note: the data are denominated in US dollars and are self-explanatory.) Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 14 1.2.3 Performance of the Tourism Sector White sand beaches, rocky points, mountain vistas and rainforests make Grenada one of the true jewels of the Caribbean. However, the country remains somewhat unknown and its tourism potential remains largely untapped. Figure 7 contains data on tourist arrivals by type. Over the 2000-2011 period, despite the travel disruption from the 9/11 terrorist attacks in the US, the occurrence of two hurricanes, one of which was devastating (Ivan), and the global financial crisis which began in 2008, total annual visitor arrivals increased from an average of 285,500 over the 2000-2002 period to an average of about 453,000 over the 2009-2011 period. However, over these same two sub-periods, stay-over visitors declined from an average of about 123,000 per year to just under 109,000. Perhaps the most troubling aspect of these data is the steep decline in per visitor expenditures from a 2000-2002 average of EC$1,622 to an average of about EC$595 over the 2009-2011 period. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 15 As seen in Figure 8 tourism revenues and expenditures per visitor are highly correlated (rho = 0.96). Combined with the fact that total visitor arrivals have increased on average, and stay-over visitors have declined only slightly, these data suggest that the decline in per visitor expenditures is tied to the change in the mix of arrivals away from stay over visitors towards increased cruise ship visitors. The latter are likely to have much lower tourism expenditures than stay-over visitors. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 16 These data are only anecdotal, but they provide a strong indication that the tourism sector in Grenada is currently underdeveloped and has significant growth potential. The key questions that must be answered are: 1. What are the present binding constraints inhibiting growth in the tourism sector? and; 2. What policies or actions are required to alleviate them? The following factors have emerged from industry studies and interviews with the stakeholders (presented in no particular order of importance):  Insufficient room stock in the high end market segment;  Significant under-marketing of the country and its tourism products in major markets;  Lack of convenient travel access for stay-over visitors;1  Barriers to foreign investment in tourism and related businesses;  Concentration of hotel establishments in the southern part of the country around the “Grand Anse” area; and  Under-developed linkages between hotel/beach tourism and other potential tourist venues or destinations in the country. 1 Convenient access, as used here, refers to daily flights and the ability to reach the country is less than 8 hours from the final point of debarkation in the Americas or Europe. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 17 2. ECONOMIC PERFORMANCE AND POVERTY IN GRENADA In April 2006, the Country Poverty Reduction Strategy/Action Plan (CPRS-AP), informed by a detailed Poverty Assessment Report, was approved for three years (2006-2009). Since then successive budgets have emphasized the following themes: (a) Growth (b) Poverty reduction, (c) Institutional reform, (d) Participation of the poor in the growth process, (e) Transformation, (f) Rural development and Poverty, (g) Institutional reform. 2.1 Measuring the Impoverished The current economic situation in Grenada is very difficult; hence any discussion on poverty alleviation must be tied to a long-term economic strategy aimed at first addressing firstly, the short-term debt issues and then the structural challenges to increasing the rate of real economic growth considerably above its long-term trend. Once can talk about all manner of programmes to provide opportunity and assistance to the impoverished, however with lack of money and opportunity for employment, there is not much that can really be accomplished until the economy recovers and begins to grow. The structural adjustments required to increase the rate of growth will require difficult, and possibly unpopular, actions. ‘A rising tide lifts all boats’ - Until Grenada gets its economic house in order, there is not a great deal that can be done in terms of real sustained poverty reduction. This does not mean that some measure of social safety nets is not warranted, but those safety nets should not be confused with poverty reduction strategies. “Poverty”, or the “impoverished”, tends to be discussed in highly general terms and often in the absence of any real substance. In Grenada, the most recent snapshot of poverty comes from the 2008 Country Poverty Assessment (CPA). As the economy has deteriorated since 2008, these data probably underestimate the current incidence of poverty. Nonetheless, these are the only data that can be used to picture the extent of poverty on Grenada. Who are the Impoverished? Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 18 According to the 2008 CPA, the statistics suggest that:  37% of the population are living below the poverty line, with an estimated 2.4% being considered as indigent;2  The number of undernourished has risen to 23% from 10% in 1991;  Another 14.7% of the population is considered vulnerable or likely to fall into poverty as a result of external shocks;3  53% of the poor are children and 66.4% of the impoverished are 24 years old, or younger;  56% of the poor live in St. Andrew and St. George; and  Almost two-thirds of the population living below the poverty line is employed, and more than half are working in either agriculture/fisheries or construction. 2.2 The Millennium Development Goals Framework A key measuring stick for assessing progress in reducing poverty and improving social welfare is the UN Millennium Development Goals (MDG). Grenada is a signatory to the UNDP’s ‘eight goals for 2015’ or the UNDP’s MDGs. Grenada, like other nations, has committed to the undertaking, in collaboration with the UNDP, to accelerate its efforts to eradicate poverty and inequality. The 2008 CPA concluded that Grenada had achieved the MDG targets of Universal primary education and virtually no maternal mortality. The report also stated that Grenada was making notable progress in:  Reducing indigence and the depth of poverty;  Immunizing children;  Reducing the under-five mortality rate;  Reducing the infant mortality rate;  Providing universal access to anti-retroviral drugs for those with HIVAIDS; and  Increasing access to land and cellular telephone lines per 100 persons. 2 Indigent is defined as inability to afford food that meets the daily minimum caloric intake for health and sustenance 3 Given that the 2008 global financial crisis represents one such external event, it is quite possible that the actual incidence of poverty in Grenada at present exceeds over 50% of the population. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 19 It is difficult to say what these data suggest about poverty or the impoverished in Grenada. Indeed, the data seem to be somewhat difficult to interpret. Many of the impoverished (two-thirds) are young (24 years of age or less). This would suggest that innovative education and training programs aimed at this demographic may be effective in developing employable skills. It also appears that a significant number of those living below the poverty line (also two thirds) are essentially what might be termed working poor. This would suggest that policies aimed at increasing productivity in sectors such as agriculture/fisheries and construction could result in increased incomes and poverty alleviation. One area where the data is clearer is in the area of access to health care. Most of the MDG goals that have been attained or are close to attainment include health and access to care. While there is always room to improve health care delivery, it appears that the impoverished have some access to adequate health care. 2.3 Risk and Vulnerability Assessment to Date  Household Risks Grenada has made significant investments in social development; however, Grenadians face a number of risks and in most cases, the poor are most vulnerable. Grenada faces significant challenges in ensuring an adequate safety net in the face of economic and environmental pressures and the changing social landscape. Households in Grenada face a variety of risks, including macro level (covariate) and micro-level (idiosyncratic) risks. Despite its middle-income status, economic achievements are fragile and Grenada is vulnerable to external shocks, such as hurricanes, commodity price fluctuations, and global economic turndowns. Price increases in food and fuel and the global economic crisis have contributed to a slowdown in growth, job losses, and declining remittances. Social vulnerability is also a concern. Good social indicators (including low levels of maternal and infant mortality, universal primary education, low fertility and increasing life expectancy), exist alongside high and increasing levels of poverty – 32.1% in 1999 and 35.3% in 2008. As in most countries around the world, children bear the brunt of poverty. One out of every two children is poor and 53% of the poor are children. Almost half the households in Grenada (47%) are female-headed. Of these, more than 20% in the rural areas are poor as compared to 13% of male-headed households. For the urban households, 44% of female heads live in the bottom 3 quintiles as opposed to 18.6% for the males. Over half the female heads (56%) are unemployed compared with the male heads where only a quarter has no work. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 20 2.4 Social Protection Programs – Safety Nets In assessing safety net programs, it is necessary to determine how well these programs help households to manage their vulnerability to covariate and idiosyncratic risks, including vulnerability, due to: i. Chronic poverty and the inter-generational transmission of poverty, transient poverty, and vulnerability to poverty. ii. Risks that threaten human capital development of children and adolescents, who are particularly vulnerable because they are unable to care for themselves. iii. Limited human capital and unemployment and risky lifestyles among youth. iv. Limited or no income due to unemployment, disease, or disability among working age women and men. v. Loss of income due to retirement and disease/disability among the elderly. vi. Needs of special groups, including single headed households, the elderly taking care of children, persons with disabilities, migrants, and persons affected by HIV/AIDS and/or non-communicable diseases. A striking feature of the social assistance landscape is the number of Programs and multiple ministries involved in the provision of social assistance. Programs include: Public Assistance Program, which is targeted to the elderly, the disabled poor and, with effect from 2009, the indigent poor, and which reaches about one quarter of the 60+ age cohort. Student support schemes which reach about 10% of school age children from poor households. School Feeding Program, which provides a free, cooked meal to approximately 9,500 students who are poor. Active labour market Program aimed at promoting employability and employment, including a public works Program, second chance education Program, training Program, job search assistance, and micro-enterprise development services. Basic Needs Trust Fund, a community based social assistance Program. House Repair Program, which targets indigent households by providing small loans and grants to repair damaged/dilapidated housing. In addition to the social protection programs discussed above, Government grants periodic concessions (for example, duty free importation of foodstuffs, duty free tyres, concessions on new buses, equipment for engines and fishing supplies) and imposes price controls on basic foodstuff, in an effort to further protect the population. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 21  Expenditures on the Safety Net Analysing social assistance spending is difficult as expenditures cross ministries and Program, and in most cases, Program level expenditure data are not available. In 2008, expenditure on social assistance totalled EC$55.7 million (US$ 20.6 million). This represents approximately 3.2% of GDP and 9.2% of central government expenditure. Between 2004 and 2008, expenditure increased in both nominal and real terms. Public assistance school feeding, housing and skills training absorb the largest share of social protection expenditure. Donor financing from the capital budget funds two-thirds of social assistance expenditure. This raises concerns about the sustainability of social protection initiatives. In non-election years, spending on social assistance in Grenada is comparable to other countries in the region. However, social assistance expenditure increased considerably in 2008 because of politically motivated increases in the number of beneficiaries.  Matching Programs to Vulnerabilities Grenada has a plethora of safety net programs, which if reconfigured, could address critical risks faced by the population. Although the elements of an appropriate safety net are present, there is a need to strengthen and rationalize existing programs to ensure that they better address priority risks. For some key programs, particularly student support schemes, coverage of target groups remains low and efforts to expand Program coverage will be necessary. Given limited fiscal space, however, meeting this and other challenges will require a reallocation of the budget toward areas with relatively high returns and away from areas with relatively low returns. The safety net is not flexible enough to respond efficiently in emergency situations (either financial crises or natural disasters). The Government implements a number of small emergency specific assistance schemes, including burial assistance, disaster funding and emergency assistance that respond to idiosyncratic shocks, but these programs, which served a total of only about 120 households in 2008, are not well positioned to respond to covariate shocks. Critical requirements for an effective emergency response are that programs be timely, targeted and temporary. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 22 3. ANTECEDENT GPR APPROACHES AS BUILDING BLOCKS 3.1 Reviewing Macro Approaches-Strategies to GPR Over the past two decades there have been various antecedent initiatives pursued by the Government of Grenada (GoG), which have implications for the development of the extant growth and poverty alleviation/reduction strategy.  1992-1995 SAP In 1992, the GoG embarked on a 3-year structural adjustment plan (SAP), the goals of which were to: (a) stimulate real GDP growth of 4% in the medium term; (b) improve financial management to achieve current account surpluses; and (c) to return the country to credit worthiness. The debate on the success of the 1992-1995 SAP continues to be inconclusive. Objective commentators would advance that while the Program achieved fiscal stabilization, it did not achieve fiscal adjustment. The Program also exacerbated the plight of the poor and did not improve the well-being of the Grenadian people. The initiatives pursued under the 1992-1995 SAP resulted in devastating cuts in social sector spending and development, the provision of education, as well as training and human resource development. Private sector activity was also not enhanced under the SAP, nor was there a drastic reduction in the size of the public sector. The privatization and commercialization component did however, achieve some degree of success.  2000-2002 MTESP In 2000, the Medium Term Economic Strategy Paper (MTESP) 2000-2002 was approved. It was aimed at “Repositioning the Grenadian Economy as a More Diversified, Competitive and Knowledge Based Economy, thereby ensuring that the quality of life of all its citizens is permanently enhanced”. The Poverty Eradication Strategy was completed with wide ranging consultations. However, subsequent to its conclusion, Grenada was hit by Hurricanes Ivan and Emily in 2004 and 2005 respectively.  2003-2005 MTSP The Medium Term Strategic Plan (MTSP) (2003-2005) had as its theme “developing a more diversified and service oriented economy, strengthening the operations of central government, and poverty reduction and alleviation”. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 23 The Government at that time undertook the following priorities:  Sustained robust economic growth  Disaster rehabilitation and Disaster management  Reduced unemployment  Improved access to health care  Human Resource Development (HRD)  Modernization of the state machinery  Improved environmental management  Housing development  Agricultural rehabilitation The initial poverty reduction and growth framework arrangement approved in April 2006 was extended. The successor Extended Credit Facility (ECF) arrangement was approved in April 2010. While the program was on track to meet (or nearly meet), the targets, it was put on hold in mid-2011, when the GoG took the decision to pursue debt restructuring. Subsequently, the GoG undertook expansionary fiscal policy in the face of weak growth and amidst a difficult political situation in the run up to elections. That ECF program expired in April 2013. The IMF Country Report 14/19, in its Executive Summary, concluded that:  Performance under the Fund-supported programs was weak;  Most program objectives were not met.  There were difficulties with program implementation in the midst of major shocks;  There is a need to reflect the macroeconomic and institutional challenges of small countries in future program design.  Growth projections were too optimistic, with insufficient account taken of Grenada’s significant capacity and institutional constraints.  A large number of structural reform measures were essentially unmet;  Program ownership was an issue, manifested by difficulties in meeting both the fiscal and structural reform objectives of the programs. The extant GRPS will cover the five (5) year period 2014 -2019. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 24 3.2 Reviewing Social and Economic Empowerment Strategies It is important to establish that the ‘Empowerment Strategies’ are national in character and that the expectation would be that Grenadian nationals would develop skills and competencies, hopefully, in an improving socio-economic environment. In general, Grenada’s poverty reduction strategies have been based on 3 broad programmatic initiatives and interventions, namely: (1) National participation in the UNDP-Millennium Development Goals (MDGs); (2) Social and Economic Empowerment Strategies for the Grenadian people; and (3) Specific ‘Pro-Poor’ programs and projects for poverty alleviation. 3.2.1 MDG Poverty Reduction/Alleviation Despite its meagre resource endowment and the economic challenges that have constrained its development, Grenada has performed remarkably well in its responses to the millennium development goals. While the number of Grenadians who consider themselves to be in vulnerable employment fell from 20% (1991) to 18.4% (1998), this statistic is still uncomfortably high with a gender gap of 1%. Eradicating extreme poverty and hunger: Grenada’s responses to this goal have yielded impressive results. The level of indigence fell from 10.1% (1991) to 2.4% (1998). The depth of poverty, measured by the poverty gap ratio, fell from 15.3% to 10.1% for the period under review. However, there are challenges still to be overcome. Achieving universal primary education: Grenada continues to register impressive strides in this goal. In fact, Grenada has achieved universal primary education and is rapidly proceeding to the next level of universal secondary education. Net enrolment for boys and girls at the primary school level has been 99% since 2000. About 82.6% of all boys and girls who start grade 1 complete their primary education. Evidently, literacy rates are quite high among both males and females. Achieving gender equality and empowerment of women: Government and non governmental agencies have been actively involved in the promotion of this goal. Parity among males and females in education has therefore been achieved. In fact, at present, female enrolment at all levels (primary, secondary, and tertiary) exceeds that of males. Nonetheless, the proportion of women engaged in non-agricultural employment is only about 40%. Reducing child mortality: Grenada has also made remarkable progress in this area. Among the population of one-year olds, 99% are immunized against measles. The mortality rate among five year-olds has fallen from 40% to 15% and among infants, it fell from 33% to 13% during the period. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 25 Improving maternal health: Similarly, Grenada has demonstrated significant progress in this area with maternal mortality at between 0 - 0.1%. Annually, skilled health personnel attend to more than 98.8% of births. Full universal antenatal care was achieved in 2007. The stigma that was once attached to persons living with HIV/AIDS is slowly dissipating in Grenadian society and is attributable to the increasing levels of education and awareness. Universal access to antiretroviral (ARVs) by children and adults is 100% and 90%, respectively. However, more has to be done regarding education on the modes of transmission of AIDS and the use of condoms in the context of serial monogamy and multiple partnering. Grenada continues to be challenged by the upsurge of non communicable diseases (NCDs). The Ministry of Health reported that lifestyle diseases such as diabetes and hypertension affect about 16.2% of the population. There is also increasing concern about tropical disease epidemics. For example, Grenada experienced two dengue epidemics in the first decade of the twenty-first century. In 2000, there were 323 reported cases and 115 cases in the first nine months of 2010. Environmental sustainability agenda: Overall, this agenda is on-track. There was little change in forest cover from 1990 to 2000. The proportion of protected terrestrial and marine areas has been increasing since 2000 through the declaration and management of new marine parks such as the Moliniere Marine Park and the soon-to be-commissioned Clarkes Court Marine Park. However, eighteen (18) of the one hundred and fifty bird (150) species and one of its snake species are seriously endangered. Promotion of global partnerships for development: This goal is also receiving much attention and progress is manifested in a number of areas. Telephone lines per 100 population have increased from 15.89 to 27.60 for 1990 to 2008; Cellular subscribers per 100 population increased from 0.16 to 57.97 from 1990 to 2008. The number of mobile telephone subscribers increased from 150 to 60,022 in the period, 1990-2008. The number of Internet users in Grenada increased from 0 in 1990 to 24,000 in 2008, while the number of personal computers stood at 16,000 in 2004. However, of some concern is that Overseas Development Assistance (ODA) received was irregular. For example, from EC$13.80M in 1990 there was a slight increase in 1991. It fell to EC $ 7.87M in 1993 and again rose to EC $ 18.15M in 1994. In 2005, ODA was at its highest, at EC$52.2M, which was a reflection of development assistance in response to the effects of Hurricane Ivan. In 2008, ODA was at the second highest level, EC$33.04M. Debt service as a percentage of export of goods and services has steadily increased, albeit with low percentage increases during the period 1990 to 2008. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 26 The adoption of contextualised/localised targets helps to focus planning efforts to reduce social, economic, and environmental vulnerability whilst bolstering areas of resilience. The global targets have some utility, however, the Caribbean-specific targets and more country specific target setting, as relevant, would allow Grenada to build on its achievements and focus on the key issues that affect development progress, including crime and violence, attainment of certification in technical vocation and the quality of education including functional literacy. As such, tailored MDGs need to be integrated into the national development process to allow for institutionalisation and effective monitoring and evaluation of progress for evidence-based policy development. This will also require a strengthened statistical framework for data production, analysis and use. Other requirements are greater sensitisation on the MDGs and advocacy for integration in development planning as well as strengthened public/private partnerships and enhanced space for public dialogue. Attainment of global and localised targets of MDGs 1-7 are closely interlinked with MDG 8 - development of a global partnership. Efforts to maintain progress and meet the goals where the country is falling short, as well as develop and work towards localised targets and an MDG- 9 plus agenda, are set against the backdrop of heavy indebtedness by Grenada like many other Caribbean countries. Additionally, there is currently no real space in the formal job market for significant hiring and little fiscal space for increases in spending on social services and public investment. This means that the country must seek to secure new export markets, develop initiatives to support policy formulation, institutional strengthening and increase investment flows. In addition, the promotion of domestic entrepreneurship and establishment of mechanisms for development of such business is critical. Implementation of such initiatives by governments of developing countries requires large injections of donor financing to support increased investment in health, education, agriculture and key infrastructure, amongst other things. There is need for financial resources to be made available and accessible at low cost, no cost, or as grants. The proposal made in 1969 and cited in the 2003 Human Development Report (HDR) that rich countries should give 0.7% of their Gross National Product (GNP) for global development, was also widely accepted by the UN General Assembly in 1970. This position has more recently been included in the international strategy to achieve the MDGs (UNDP 2003). This underscores the point that whilst developing countries, like Grenada, have to be committed to the MDGs there is need for concomitant support from the developed countries. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 27 3.2.2 National Social and Economic Empowerment Strategies  Education and Human Resource Development (EHRD) Philosophy and Goal Successive Grenadian Governments have recognised education as multi-faceted and multi-dimensional in its social and developmental contexts and, consequently, it is not surprising that ‘Human Resource Development’ has become a central pillar of the country’s development demarche. The current education strategy and its implementation is built around the Government’s comprehensive Strategic Plan for Educational Enhancement and Development (SPEED), which is due to terminate as Phase II in 2015. Philosophically, the premise of the education policy is that “...every [Grenadian] has the right of access to education for lifelong learning.” This goal takes on board considerations for the individual Grenadian as well as the society, to the extent that education of the Grenadian is ‘set within personal, national, regional and international contexts’ in the hope of guaranteeing the production of a socially cultured and creatively productive human being. Government has expressed its awareness of the need for greater emphasis on skills and vocational training as a major pillar of its human resource development. It has also recognised the urgency to repair the mismatch between skills that are currently being taught to the nation’s youth and the actual needs of the job market. From this perspective, Government has undertaken to effect “... a revision of the national training policy and priorities, areas of scholarships and the preferences of the National Training Agency. More resources will be invested in youth to make them more competitive in the technological age.” (Throne Speech, 2013) Furthermore, Government, having recognised the powerful role that Information and Communication Technology must play in the New Economy, has decided to infuse its education and training policies with “... a comprehensive and integrated IT Strategy [that] will be pursued to advance Grenada’s development. Government will pursue a public-private partnership to deliver broadband connectivity and tablets to the students in the Nation’s secondary school.” (Throne Speech, 2013) EHRD Plan: Objectives and Rationale The six (6) broad objectives and their underlying rationales as outlined in the SPEED 2006 – 2015” continue to inform the education agenda and include, to: 1. Provide universal access to and participation in education for [the entire Grenadian] population. The rationale is to provide a foundation for increased educational attainment through maintaining the universal access which exists at the primary level, increasing access at the pre-primary level, achieving universal Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 28 secondary education and increasing out-of-school opportunities and coverage at the tertiary level. 2. Improve radically the quality of education and the achievement of pupils. The rationale is to make the various resources available to the system more effective (including teaching practices and learning conditions) and target educational outputs for improvement. 3. Provide learners with relevant knowledge, attitudes and skills for work, citizenship and life. The rationale is to cause all students leaving the school system at the end of at least twelve years of schooling to be functionally and computer literate with the ability to apply information and communication technology to the activities of daily life, whether at a personal level, in the workplace and/or in society at large. 4. Establish and strengthen relationships with partners in education. The rationale is to address societal and international imperatives and enhance cooperation between those engaged in the delivery of education and the wider stakeholder society. 5. Improve the effectiveness of management and administration of education at Ministry and learning institutions levels. It is for the Ministry and [all educational and training institutions] to make the most efficient use of scarce resources within clearly defined roles that will develop a new culture of service, support and mutual trust. 6. Ensure consistent Government financing of education, diversify the funding sources and make certain that resources are used efficiently. The underlying rationale is to develop a new inclusive framework for financing education, one that embraces medium term financial development planning within a set of agreed [least] cost minimum national standards. Government has restated its philosophical and material support for the role of education and human resource development in the New Economy. The Government has stated, unambiguously, in its 2014 Budget that planned expenditure of EC$101.2 million must respond to the ‘elements of the ‘New Economy’, which calls for, the following: Technical and vocational education and training Innovation and knowledge Lifelong learning and high wage employment The Government has mandated the National Training Agency (NTA) as the lead institution for the delivery of the requisite skills and attitudes that will achieve the above stated objectives. In the classroom, Government will facilitate a technological change from the use of books to that of tablets. This will be implemented in the secondary school system at Forms 3–5; naturally, accompanied with the necessary internet connectivity. Some of the other salient policy and material innovations are: Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 29 Continued teacher training in ICT and other technical disciplines. Establishment of an Education Management Information System for more efficient management of schools and greater support to teachers. Upgrading of the Mirabeau Farm School (part of the policy of improving facilities for the effective delivery of technical and vocational education). Provision of increased numbers of scholarships to students in disciplines that are consistent with the transformational sectors. Financing Programs (transportation support, school feeding, uniform support) to improve the accessibility to education by the disadvantaged.  Health and Social Security The GoG has affirmed its strong commitment to the improvement of health care both in terms of the delivery of health services and improvements in the health physical infrastructure. In the 2013 Throne Speech, Government pronounced, “My Government affirms its strong commitment to providing better health care for all Grenadians. In this regard, a major thrust will be the strengthening of primary health care. Our people can expect to benefit from more doctors and nurses in the community, extended hours of service, and more diverse services at our health centres.” (Throne Speech, pg. 10) Government has announced its intention to, “commence [work] on the upgrading of the General Hospital to address some pressing problems. This work will include: more space for Accidents and Emergencies, the Eye Ward and the Maternity Ward.” (Throne Speech, pg. 9) Government recognizes that it has to provide accommodation to social care initiatives within its health agenda. Consistent with this philosophy, Government has declared its policy position: “The establishment of a National Health Insurance Plan has been identified as a major priority by all the Social Partners. My Government eagerly awaits the recommendations of the Working Group. In the interim, the Ministry of Health is putting measures in place for the successful implementation of a National Health Insurance Plan. The ultimate aim is to guarantee all citizens a certain level of health care service and to ensure that those who cannot afford to pay will still receive the health care that they need” (Throne Speech, 2013, pg. 10). Infrastructure and services delivery challenges in the health sector are massive. Two (2) factors are influencing the evolution of a rational approach to the challenge: The conscious undertaking of infrastructural interventions by Government in the areas in which priority health services delivery is dependent. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 30 Aggressive utilization and dissemination of health education at the community level to reduce pressure on the limited capabilities of the existing and slowly improving health system. The strategy enunciated in the 2014 Budget would result in: Improved supply of basic medicines. An organised focused community health education Program. Commissioning of Phase II of the General Hospital, to include Accident and Emergency, Physiotherapy, Laboratory services, Medical Records, the Electronic Health Centre, Biomedical services, et al. Commissioning of new x-ray units in the General Hospital and Princess Alice Hospital. Installation of an oxygen unit at the General Hospital. Modernization of the ambulance system. Improved water storage systems in the hospitals.  Housing and Social Care Housing has become one of the most politically and socially charged development demands of the Grenadian population since the passage of Hurricanes Ivan (2004) and Emily (2005). In the aftermath of Hurricanes Ivan and Emily, Government successfully negotiated a housing grant of 2000 units, with the People’s Republic of China. Since then, the Chinese Government has built 150 units at Soubise in St. Andrew and another number of units at Tempe in St. George’s. The GoG is pursuing the possibility of having the Chinese Government expand the housing project. Another stock of houses, as a grant, was negotiated with the Venezuelan Government. The GoG has built 100 of the 500 housing units at La Colombe in St. David under that project. Parallel to these projects, Government continues a series of house repair programs. Although this has lost some momentum due to the deteriorated financial and economic state of the nation, these projects include: The Emergency Housing Response Program: Designed to provide assistance to very dire cases of housing support needs. However, there is no evidence of expenditure under this Program in 2011. The Housing Repair Program: Government vigorously pursued the implementation of this Program immediately following Hurricane Ivan. In 2005, Government loaned out EC$22.14 million to 5500 households for acquiring building supplies for their rebuilding and renovation activities Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 31 (Culturing Marketing and Communication Ltd, 2011). In 2011, Government spent only EC$732,065 of an approved budget of EC$2.4 million. (Estimates of Revenue and Expenditure, 2012) Housing repair demands remain significantly unsatisfied. From 2014, the Program will be expanded. Materials Assistance Program: A highly politically driven Program under which individuals receive building material, especially close to elections and often times do not pay for it. The Housing Loan Program: Introduced by the NDC Administration of 2008 2013; there is no evidence of expenditure for the year, 2011. The Program offered loans up to a maximum of EC$20,000 to successful applicants under the Program. However, a soft loan will be activated from 2014 to assist those wishing to renovate and expand existing homes. The completion and distribution of the Chinese housing units in Frequente, Mt. Gay and Soubise in 2014 The Grenada Housing Authority contributes through its soft loan system to improving the housing situation. The conditions of its housing loan scheme are: Successful applicants receive a maximum loan of EC$40,000. The loan must be repaid within a period of not more than ten years; and, An interest rate of 3% per annum is charged on the loan. Notwithstanding the investments in housing programs in the aftermath of Hurricanes Ivan and Emily, the provision of adequate housing for the vast majority continues to be a daunting challenge. The economic and financial crises of 2008 and onwards have conspired to worsen the housing situation in Grenada. Government’s policy and programmatic pronouncements are both recognition of the gravity of the housing problem and its commitment to finding solutions to it. In 2013, the Government declared in the Throne Speech: “My Government is very cognizant of the considerable housing needs of our citizens. In this regard, expanded programs for house repair and affordable housing are high priorities. In addition, a major focus will be preparation for Phase II of the Housing Program with the People’s Republic of China. My Government will invest more in the House Repair Program and establish a soft loan scheme for helping citizens to repair and possibly expand their homes. Public-private partnerships for low and middle income housing will also be pursued. Citizens will be expected to pay for these houses.” More specific to the national social care agenda, Government will continue by enhancing existing programs while introducing and funding new ones. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 32 Some of these initiatives include: Continued and increased support for the SPEED Program. Government will introduce the use of proxy testing to ensure that the needy and vulnerable benefit from the safety net programs. Government will complete and effect professional management of the Bacolet Juvenile Rehabilitation Centre to guarantee the best social environment for the rehabilitation of young male transgressors of socially and lawfully accepted norms of behaviour. In partnership with GRENLEC, Government will begin to provide housing for socially displaced persons.  Youth and Sports Development Because of the preponderance of youth in the Grenadian demography, recent governments have equated investments in youth and sport with investments in the future of the nation. Consequently, although specific and special attention is given to youth in the sectors (such as education, agriculture, fisheries, tourism and small business development), the Youth and Sport portfolio is still used to direct additional and well intended investments on Youth. In relation to ‘Youth Development’ among other programs, Government is committed to: The continuation and refining of the IMANI Program. The commissioning of a Youth Enterprise Initiative that will benefit 100 youths annually. Annual funding to Churches to assist with the civic and personality development of youth. Although ‘Sports Development’ is often viewed in the context of youth, it has a larger role as a vehicle for the promotion of good health and human recreation and interaction. This dimension requires all Grenadians to become active participants in recreational activities, irrespective of age and physical characteristics. The other facet has to do with ‘Sport Development’ and the culturing of athletic talent as a foundation for professional growth and occupational undertakings. The efficacy of Government investment in ‘Youth and Sport Development’ is measured by the extent to which developments are able to satisfy those two broad purposes. Some of the Government development initiatives are: The aggressive pursuit of a policy addressing the construction of sporting facilities, which cater for a diverse range of sporting disciplines (athletics, football, cricket, tennis, basketball, swimming et al). The observance of a placement policy for sporting and recreational facilities that are centrally located and balanced (Gouyave, Hillsborough, Grand Anse, La Sagesse, Victoria, Grenville). Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 33  Use of Information Communication Technology (ICT) In 2013, the Government outlined its philosophical underpinning for the role of ICT in the transformation of the Grenadian economy. The Prime Minister and Minister for Finance, Dr the Right Honourable Keith Mitchell declared in the Government’s 2013 Budget presentation, “... ICT has become widely diffused and inexpensive. The world of commerce is much smaller [and] the ability to conduct business across time and space has increased greatly. In addition, ICT has drastically reduced the cost of transferring capital and information from high-cost locations in developed countries to low-cost developing countries. Considered together, this means that economic activity in a high cost location such as Grenada is incompatible with routine tasks and “business as usual” strategies. There is a vast body of research that suggests that a key benefit of technology and ICT is that it supports changes in industrial structures [in favour of] smaller firm sizes and that these small firms are accounting for a greater and greater share of growth. Also of significance is the fact that countries which have promoted entrepreneurship have benefitted from an additional employment and growth premium.” There are, at least, three (3) important policy prescriptions suggested in the budget declaration on Information and Communication Technology. Firstly, the GoG has accepted ICT as a mainstream tool of national development in its economic and social development agenda. In fact, in 2002, the Government declared, “Information and Communication Technologies (ICT) offer a novel and effective tool to help advance sustainable human development in Grenada. ICT is a new significant factor that can propel performance and growth of the Grenada economy.” (GoG, 2002) Secondly, Government views ICT as a dynamic industry in and of itself. Thirdly, it views ICT as a solid support for the development of other productive and service economic sectors. Based on other pronouncements, a fourth policy prescription is easily identifiable; that is, the utilization of ICT to make Government more efficient and cost effective to operate. These policy prescriptions are consistent with Government’s ICT strategy. Government will create an enabling environment to attract local and foreign investors through appropriate policies, legislation and improved public sector efficiency. This ICT strategy seeks to pursue a sustainable process of action and review which is based on the synergistic development of: Education and training to develop human resources in the necessary ICT and business skills; Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 34 ICT to expand the horizons and capacities of existing businesses and recruit new businesses to Grenada; Deepening the use of ICT in governance to increase its efficiency and transparency; and, The implementation of a focused promotional strategy, directed at the business and government sectors and civil society. (ICT Strategy and Action Plan, 2002) The Government has further enunciated in its 2014 Budget that it continues to view, with greater importance, the role of ICT as an ‘enabler of innovation in the New Economy. It has given notice that in 2014 and beyond, it will undertake a series of initiatives under the Caribbean Regional Communications Infrastructure Program (CARCIP). These policy inspired actions include: Roll-out of the Public Private Partnership roadmap for ICT in Grenada. Implementation of Broadband and GovNet Services. Establishment of a business incubator. Finalization of skills training Program with the National Training Agency. Establishment of a data centre.  Entrepreneurship-Small Business Financing and Development The current public sector-inspired entrepreneurship and small business Program has its beginning in the United States Agency for International Aid (USAID) project called the Grenada Business and Agriculture Revitalisation Program (GBARP). In the aftermath of the 2004 Hurricane Ivan, the GoG and the USAID signed a Memorandum of Understanding (MOU) establishing the Entrepreneurship Unit in 2005. In 2006, Government merged that unit with the Business Resource Unit of the Grenada Development Bank (GDB) to form the Grenada Business Development Centre that eventually was domiciled under the umbrella of the Grenada Industrial Development Corporation. Initially, the Program attempted to be responsive to every request from every economic sector. However, in the last three years, the Centre has adopted the focused policy of considering business proposals that are consistent with the transformational sectors, as defined by the Government. The Centre offers training in entrepreneurial skills, business procedures and good business practices and techniques in the identification of centres of small business services, among other areas. The Centre has an acceptable profile of performance. In 2012-2013, through the Caribbean Youth Entrepreneurial Project, with funding from the USAID and the supervision of the Baltimore Youth Foundation, 48 young entrepreneurs received Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 35 assistance to establish their own businesses. The target is to successfully set up 120 such business enterprises. The business profile targeted is persons between the ages of 18 and 25. The individual should have completed secondary school and attained up to four CXC passes. Every successful candidate can receive between EC$5000 EC$25,000. Proposals that require higher amounts of funding and demonstrate a high potential to be successful are referred to the commercial banks and credit unions. While the credit unions have been actively involved in providing funding for some business start-ups, the commercial banks have been lukewarm and unresponsive. In the last year, the Centre has noticed a change in the behaviour of the credit unions, in that they have moved to financing existing businesses and progressively have shied away from start-ups. This change is attributable to the poor economic and financial state of the economy and the attendant increases in business failures and credit delinquency. In this type of scenario, proponents of small business development have a strong argument for the participation of micro-financing and guaranteed financing schemes to support the small business sub-sector. However, to improve the probability of small business success, there has to be effective monitoring and evaluation mechanisms that the Centre does not have the capacity to provide because of its lean staff compliment. Government, in its presentation of the 2014 Budget, in addition to reiterating its policy support for small business development, announced two initiatives that will provide substantial financial support to it. Government is very deliberate in its intention to have local contractors and sub-contractors positioned to benefit from the more than $262 million Eastern Caribbean worth of Government capital projects for 2014. Small business start-ups will also benefit from these initiatives which are as follows: In 2014, Government will provide EC$2 million to the Small Business Development Fund. Government has allowed Axcel Finance, a micro financing institution, to set up business legally in Grenada. 3.2.3 Reviewing “Pro-Poor” Strategies and Interventions Since the 1980’s, successive Governments have also been deliberately pursuing policies of poverty eradication. These poverty eradication programs are of two types: - social safety net programs and the pro-poor programs. Some of the more prominent ones are: i. The Basic Needs Trust Fund (BNTF) which was started in the 1980s and is financed by a grant from the Caribbean Development Bank (CDB) and annual government subventions. This intervention is aimed at improving and increasing Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 36 the physical and social infrastructure of communities. Some of the projects undertaken are the construction of roads, community centres, medical centres, small community water systems and craft centres. More recently, there has been an increasing concentration on capacity training of community persons in some skills’ disciplines. Between 2008 and 2011, of the EC$ $9.1 million allocated, only 64.8% was spent. ii. The School Feeding Program (SFP) began in 1992 in response to the need to provide primary school children from poor households with a hot meal. Over the years, the Program has expanded to include a significant number of secondary schools. Between 2008 and 2012, Government spent EC$9.81 million on this programme. iii. The Micro Enterprise Development Project (MEDP) existed from 1996 to 2010. During that period, 600 Grenadians received loans amounting to an excess of $20 million Eastern Caribbean for the generation of small businesses. Based on data from the 2007/2008 CPA Report, 574 projects were funded in fifteen (15) different industries with agriculture, livestock, fisheries and services featuring most notably. Every project that received funding created 1.05 jobs, on average. Data that measure sustainability of those jobs are not available. iv. The Grenada Rural Enterprise Project (G-REP) was a direct response to the findings of the 1998 Country Poverty Assessment Report. About ECD $20 million in loans and grants from the Caribbean Development Bank (CDB) and the International Fund for Agricultural Development (IFAD) was provided to fund poverty reduction programs through the creation and enhancement of employment opportunities especially in the rural communities. The expansion of social and economic community assets also benefited under this project. v. The Market Access and Rural Enterprise Project (MAREP) is a response to the 2007/2008 Country Poverty Assessment Report findings. Its design suggests a more focused approach to rural poverty challenges. There is greater specificity concerning the targeting of communities and the nature of the projects. For example, poultry development is being concentrated in St. David, while goat milk production is earmarked for St. Patrick. vi. Social Safety Nets and Assistance Program (SSNAP) is a consolidation of a number of pro-poor safety net programs such as the Public Assistance Program, the Necessitous Fund and the Transportation Allowance for needy Students. Funding in the amount of ECD$13 million is coming from the World Bank. The transportation subsidy for needy students costs over EC $5 million for the period, 2008 – 2010. vii. The Free School Books Program cost EC$12.9 million during the period, 2008 – 2010. Government has since modified it. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 37 viii. Pro-Poor Safety Net Programs being financed by Government with some additional services, include: Water for the Poor Disaster Fund for fire victims Burial Support Senior Citizens’ Outreach Program Free Medication to needy persons Medical Services Support (CT Scan, Dialysis, Chemotherapy, Radiotherapy) 3.3 Implementation and Constraints – Lessons Learned Although there is varying program support to the same target groups, each Program requires completion of separate applications, investigation by staff, and these multiple targeting mechanisms are administratively costly. Information collected is generally the same for all programs, some of which include: i. Errors of exclusion (those not in the Program but should be) are significant and a large share of the target groups for key programs remains uncovered. ii. Benefit levels differ between programs. Public Assistance provides a cash benefit equal to $200 per month or 41% of the poverty line, while Necessitous Fund Benefits for primary and secondary students are equal to EC$100 per month or 21% of the poverty line. iii. Benefits for the different programs are paid via different mechanisms and this increases administrative costs, makes accounting more difficult, and increases opportunities for leakage. iv. Sound monitoring mechanisms are absent; therefore it is not possible to accurately assess whether the rights of children, men, and women regarding social protection are being fulfilled. v. Accountability and control are weak, as evidenced by the fact that policies and procedures are not fully documented. Programs lack formal appeals mechanisms; process and impact evaluations are virtually absent, and not all programs are audited annually. Grenada has signed international commitments that mandate provision of social safety nets, including the CRC, CEDAW and UDHR and ILO labour market standards regarding social protection, however, Grenada is not living up to its commitments. Grenada has a number of social assistance programs that serve, or could serve, a risk management function; still, there is considerable scope for strengthening Grenada’s social safety net. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 1: the Policy Context 38 At the same time, Grenada faces significant challenges in enhancing access to, and the quality of its social safety net, including the following: i. The social safety net does not adequately protect children, single parents (predominantly women) or the working age poor (with or without children). ii. There are gender differences in access and eligibility to safety net programs. As a result, the safety net does not adequately protect women. iii. The safety net does not incorporate the basic principles of effective risk management. iv. State financial intervention does not sufficiently enhance equity for all. v. The social safety net could benefit from rationalisation of programs. vi. Safety net implementation is subject to political interference and this makes it even more difficult to serve the poor. vii. Institutional capacity to implement social safety net programs is limited. viii. Grenada’s safety net is not sustainable given the heavy reliance on external funding. As indicated previously, Grenada’s plethora of safety net programs have had limited success in addressing critical risks faced by the population. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 39 4. SOWING THE SEEDS OF A GPRS – A CONCEPTUAL FRAMEWORK 4.1 The Imperative of a Long Term Vision and Strategy As noted, economic growth is a necessary, but not sufficient condition, for making progress in the reduction or alleviation of poverty. Thus the first stage of any poverty reduction strategy must focus on addressing the current economic situation in Grenada and then developing a coherent strategy to address the impediments to improved economic growth. There are a number of issues that must be addressed through policy actions. The new government is actively developing such policies. 4.2 Economic Growth Economic Growth has emerged as a critical driving force to; inter alia, employment growth, buoyant government revenues, firm profitability, social and economic development, improved livelihoods and poverty reduction. Economic research has coalesced around a “core” of macro-economic constraints to growth, including high inflation, high debt to GDP ratios, volatility and uncertainty, inappropriate government policies, and external shocks (including natural disasters, man-made catastrophes). This economic research has also converged around a number of factors which determine growth more so than others, including the importance of international trade, education and training, macroeconomic stability, the role of the State and Government policies (public policy), the quality of institutions and risk mitigation. Surveys of firms and businesspersons in the region in recent years (World Economic Forum (WEF) and IADB/CC) documented constraints that affect business operations and growth in the region. The World Bank’s Doing Business Report for Grenada (2014), elucidates the following factors as constraints to business growth and overall economic growth:  Registering property  Getting credit  Paying taxes  Enforcing contracts  Resolving insolvency  Trading Across borders  High Cost of Getting Electricity Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 40  Evidence from the Regional Integration Arrangement Grenada occupies a strategic place and plays an important role in the two regional integration processes which have expended an immense amount of resources to complete the Development Plan (OECS), and Strategy (CARICOM) that will guide the regional integration process over the coming years. 4 The GPRS takes both these strategy documents into account, thus ensuring a seamless synergistic continuum of actions and initiatives among national, OECS and CARICOM development spheres. These Strategies (OECS and CARICOM) have identified the following as key areas in the Region’s new growth path:  Renewable Energy,  Creative Industries,  New Manufacturing,  Agriculture and Agro-processing,  ICT/Digital Technology,  Specialty Tourism,  Transportation and International Business. In order to reverse the negative growth trend and accelerate economic growth in Grenada emphasis must be placed on:  Promoting macroeconomic stability for growth and development (consolidation, and adjustment).  Establishing long term goals for economic growth (improved quality of life, poverty reduction, employment generation etc.) not just growth but, pro poor growth.  Identifying areas for specific urgent action—industries, sectors, markets, factors which constrain growth.  Establishing policies, programs, initiatives, interventions and other approaches to facilitate the growth process. 4.3 Pro-Poor Growth, Poverty Reduction and the New Economy 4 Strategic Plan for Regional Development (SPRD); OECS Development Strategy (2013) Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 41 This Strategy adopts the definition of “pro-poor growth” as, growth which reduces the level of poverty. The “other popular definition” which refers to a greater decline in poverty than would have been the case if all incomes grew by the same rate, is subsumed within the definition adopted by this strategy. In general, the strategy refers to absolute levels of poverty, though discussions are not necessarily confined to this construct, but extend to relative measures of poverty. Conceptually, when poverty reduction is the objective (for which economic growth is one of the instruments), then the rate of pro-poor growth is defined as a distributional correction term (the “other popular definition”) multiplied by the rate of economic growth. That is, rate of “pro-poor” growth = distributional correction times rate of economic growth. The economic literature establishes that the debate about the “pro poor” character of economic growth is really a debate about the definition(s). If “pro poor” growth is defined as the extent to which the level of poverty declines if all incomes grew by the same rate, then economic growth is not typically, “pro-poor”. The empirical evidence, predicated on the adherence to the other definition of “pro poor” growth, suggests that growth tends to be distribution neutral on average hence, absolute poverty levels tend to fall with growth, (Kraays, 2003) and (Fields, 2001). Accordingly, economic growth tends to be “pro-poor” by the definition adopted by the Study. Even so, having regard to the several caveats attached to the empirical studies, caution is advisable in interpreting the results of these studies as a basis for focusing on economic growth alone, if the objective is poverty reduction. 5 Because the gains to the poor from growth are clearly not confined to people near the poverty line, but reaches far beyond, the finding that growth tends to be distribution neutral on average does not indicate that distribution is necessarily unchanging. Evidently, the rate of growth is an important determinant of the rate of absolute poverty reduction. However, the evidence indicates that the same rate of growth can potentially bring about different rates of poverty reduction. The empirical work undertaken on a cross-section of countries indicates that two of the more important factors that account for cross-country differences in the poverty-induced dividend of economic growth are the initial levels of inequality and how this inequality changes over time. These two factors can therefore hold significant implications for the types of 5 All these studies tell us is that there has been little effective redistribution in favour of the poor. Nothing can be inferred about the potential for “pro-poor” redistribution. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 42 policies that are needed for rapid poverty reduction, in addition to promoting higher growth.  Initial Levels of Inequality A number of evidence-based findings have emerged from a cross-section of studies which suggest that while absolute poverty does fall with positive economic growth, the higher the level of initial inequality in a country, the less the gains from growth tend to be shared by the poor. This means that a smaller initial share tends to infer a smaller subsequent share of the gains from aggregate economic expansion. Two (2) simple conclusions emerge: (i) Poverty responds slowly to growth in high inequality countries and, (ii) High inequality countries will need to have high rates of growth to achieve rapid poverty reduction. Even here, the results of cross-country comparisons are important to the evolution of a GPRS for Grenada at this time. During the consultation process in Grenada, some have advanced that the experience in a number of individual countries reflects an increase in average inequality with increases in economic growth. However, the results of work done by Kraay (2003) 6 and others, suggests that aggregate economic growth has occurred. The results of cross-country studies lend some support to the policy conclusion that for reducing poverty (even in such circumstances), what is required is a higher rate of economic growth. If growth in a low inequality country comes with a sufficient increase in inequality, then it may by-pass the poor. The cross-sectional results indicating that growth on average is distribution neutral implies that it increases roughly half the time during growth spells. Accordingly, policy efforts to keep inequality low will be crucial to generating pro-poor growth in developing countries. In high inequality countries, growth will be fairly limited in its ability to depress levels of poverty, unless such growth is accompanied by falling inequality. In addition, depending on the source of growth, inequalities could perceivably widen, as the growth dividend “by-passes” the poor. Having established that inequality is a key variable in policy determination when pro poor growth is the target, the understanding of the various dimensions of inequality is essential. The literature is replete with factors that impinge on inequality, including access to public goods, private assets, including human, physical and social capital, 6 Kraay, Aart (2003), ‘When is Growth Pro-Poor? Evidence from a Panel of Countries,‘ mimeo, Development Research Group, World Bank. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 43 inequalities in access to infrastructure and social services, access to information, ICT, among others.  Changing Levels of Inequality Changing levels of income distribution is a second factor influencing the rate of poverty reduction, at any given rate of economic growth. However, changes in distribution among countries are casually linked to a number of common elements but also to a number of idiosyncratic features. Factors, such as economic shocks, changes in trade regimes, tax reforms, welfare-policy reforms, demographic changes and sectoral patterns of growth rank among these. The higher incidence of poverty in specific communities, economic sectors, and parishes points to the importance of patterns of growth to overall poverty reduction. In addition, so do factors such as gender, age demographic, youth, among others. In Grenada, the extent to which growth favours the rural sector, youth and women will be central to its impact on aggregate poverty. The literature also establishes that the pattern of growth to the rate of poverty reduction will also be dependent on past and current differences between sectors and regions. Agriculture has limited potential to reduce poverty in the absence of significant institutional change and capital investment. Evidence suggests that a counter-cyclical tendency exists between the present levels of poverty and inequality, and their future growth. For example, in Grenada where credit markets are relatively under-developed several persons are unable to seize growth-promoting business opportunities. The “resource-poor” are more likely to be the most affected by these constraints. In this context, the higher the proportion of “resource-poor” relative to other groups, the lower the economic growth rate, and the more will poverty be self-perpetuating. The economic literature makes the point that, in the presence of capital market failure arising from moral hazard, high inequality can dull incentives for wealth accumulation. Other literature suggests that the presence of high inequality can slow growth promoting reforms and resource-reallocations, requiring cooperation and trust. Evidently, there are a number of pro poor polices that an enlightened Government can pursue. Among such policies are public policies, which assist the poor in acquiring the skills they need to escape the cycle of poverty, as well as public actions that contribute to good health enabling them to participate in the growth process. An important theme arising in the literature is the importance of social insurance in mitigating longer-term poverty. A number of micro-economic studies have provided Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 44 irrefutable evidence on the lack of insurance as a cause of longer-term poverty, (Ravallion, 2004). 7 Social protection policies have also turned out to have a far more significant role in assuring pro-poor growth than was previously thought. By recognizing that it is the poor, more so than any other group, that are locked out from lucrative opportunities for self-development, well designed public policies against current poverty can promote growth and hence long-term poverty reduction. The GoG recognizes the challenges to combining growth promoting policies with immediate, medium and long term policies and programs to ensure that the poor are able to fully participate in the opportunities unleashed and to contribute to that growth. In this regard, the GPRS: i. Is informed by factors and variables at a national and sub-national level, which influence the distributional nature of economic growth. ii. Recognizes that not all such factors are amenable to policy intervention. iii. Recommends policy interventions that promote growth and are pro-poor. iv. Considers alternative policies and arrives at the most prudent interventions which take into account redistributive social policies and alternative growth strategies, particularly the Strategy by Non-State Actors Panel (2013). 7 Ravallion, Martin, (2004). “Transfers and Safety Nets in Poor Countries: Revisiting the Trade-Offs and Policy Options,’ in Abhijit Banerjee, Roland Benabou and Dilip Mookerjee (eds), Poverty and Development, Oxford University Press. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 45 5. GETTING THE MACRO-ECONOMIC FUNDAMENTALS RIGHT 5.1 External Environment Global economic growth is projected at 3.6% in 2014, largely driven by the advanced economies. Growth in major emerging markets, although still strong, is expected to be weaker than in 2013. Growth in Latin America and the Caribbean (LAC) is projected to expand by 3.0 % in 2014, with domestic demand remaining the main driver. Economic growth rates for the BRIC (Brazil, Russia, India and China) countries have been adjusted downwards for 2014, reflecting continuing concerns about the faltering global economy and lagging export growth. China continues to lead with an expected growth of 7.3%, Brazil 2.5%, India, 5.1% and Russia, 3.0 %. Two (2) of Grenada’s three (3) largest trading partners - USA and UK - have also undertaken revisions to their growth projections for 2014. In the United States, growth is projected to strengthen to around 2.5 % in 2014, as a continuing housing market recovery and still-accommodative financial conditions bolster private demand. The UK growth is now being projected at 2.4%, supported by an upturn in gross fixed investments and exports; indicators of rebounding private sector confidence. For the Euro area, growth is projected at 0.9% in 2014 and then by about 1.6% per annum from 2015-17. The year 2014 showed the first positive result since 2011. The resilience of financial markets in the face of political turmoil in Italy and fiscal issues in the USA have contributed to much needed confidence in the European Central Bank (ECB) as a backstop for Eurozone bond markets. The ECB will also have a key role to play in 2014 in setting policy to counter any tightening in credit conditions imported from the USA once the Federal Reserve starts tapering. Some downside risks remain - notably the ECB’s asset quality review and the subsequent restructuring of the banking sector. Policy-makers must ensure that, at the very least, the relatively modest expectations of the markets are met so as not to threaten the current fragile stability of the entire Euro-zone Region. In countries with low inflation and anchored inflation expectations, monetary policy should be the first line of defence if downside risks to the baseline materialize. Fiscal consolidation remains appropriate for countries with tight capacity constraints or limited fiscal space ; it will also help constrain the continued widening of current account deficits. Safeguarding financial stability is a key priority in an environment of tighter global financial conditions and increased asset price volatility. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 46 The majority perspective is that the current outlook for Latin America and the Caribbean does not warrant an easing of fiscal policy for most of the countries. In fact, for countries such as Grenada, sustainability issues constrain the space for fiscal policy. In most of the commodity exporters, economic slack is very limited, external current account deficits have widened, and fiscal balances are generally weaker than prior to the 2008-09 global financial crisis. Thus, attempts to maintain high growth rates through fiscal stimulus would only weaken public finances and external positions. For the countries which are heavily service-oriented, particularly in tourism, the fall-off in demand from target markets severely constrains the efficacy of monetary or fiscal policy. The evidence of a weak global recovery, led by industrial countries, portend that the economic recovery in countries such as Grenada could take another three or four years, without accounting for various down-side risks. The prognosis for economic activity, employment and poverty reduction, driven by buoyancy in the external environment, will be somewhat subdued in the immediate period. Resource mobilization and readying of the domestic supply capacity to take advantage of the uplift in external demand for goods and services when the global environment improves, remains an imperative and will partially compensate through buoying domestic demand. 5.2 OECS Economic Union Grenada, a founding Member of the Organization of Eastern Caribbean States (OECS), established in June, 1981, has been successful in pursuing a far deeper form of integration and economic cooperation, than other similar arrangements within the Region. In June 2010, the OECS progressed from a sub-regional economic integration arrangement, to a customs union, deepening even further the scope and intensity of the integration efforts. The Revised Treaty of Basseterre establishing the OECS Economic Union envisions the free circulation of goods, services, labour, and capital. The provisions of the Revised Treaty provide for a number of important institutions, which include the East Caribbean Supreme Court (ECSC), Eastern Caribbean Central Bank (ECCB), the Eastern Caribbean Telecommunications Authority (ECTEL), Eastern Caribbean Civil Aviation Authority (ECCAA), and the Eastern Caribbean Energy Regulatory Authority (ECERA). The governance structure for the OECS Economic Union devolves supra-national authority to the OECS Authority - the principal organ within the Economic Union of the OECS - in five (5) agreed areas: the common market and customs union; monetary policy; trade policy; maritime jurisdiction and boundaries; and civil aviation. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 47 The Regional Assembly comprising Members of Parliament and legislators of Member States is the legislative arm of the Economic Union. The OECS Commission will guide the work of the Secretariat by providing critical oversight to the mandate approved by the Authority. A status review of the OECS Economic Union, undertaken for the 58th Meeting of the OECS Authority, indicates that Grenada is in full compliance with the Legislative and Administrative commitments attached to its membership in the Economic Union (including travel facilitation and free movement of OECS nationals, among others). Grenada is also an active participant in the unfinished agenda pertaining to the free circulation of goods, and Competition Policy and Law. In the instance of Competition and Law, the OECS will soon establish a new body - the East Caribbean Competition Commission. There exists some concern at the conceptual level, that the OECS Economic Union may conflict with some aspects of the Revised Treaty of Chaguaramas, where the same substantive areas of competence are covered (trade policy, common market and customs union). Accordingly, an amendment to the Revised Treaty of Chaguaramas is presently being pursued (Protocol to Amend the Revised Treaty of Chaguaramas to provide for Deeper Integration by Groups of Members and the Recognition of the OECS Economic Union) to bring legal certainty to the Economic Union, within the framework of the Revised Treaty of Chaguaramas. Grenada has played an active role in concluding the OECS Growth and Development Strategy, the core of which is a four-part agenda viz. (a) Prospects for Growth and Development; (b) Leveraging the Growth Drivers: (c) Pushing the Growth Envelope; (d) Underpinning the Growth and Development Thrust. The OECS Strategy identifies agriculture, manufacturing, services (tourism creative industries, construction, financial, education, health, and other services), ICT, social development and social protection, citizen security, energy, environmental management, and ocean governance as priority themes for the economic union. Other priority issues to be addressed are transportation, trade policy and trade facilitation, business facilitation and the business climate. As it enters the second decade of the 21st century, the OECS sub-region is at a crossroad. On the one hand, it could enter a period of strong economic growth based on greater sub-regional integration, investment in knowledge, and greater attention to the public sector’s role as regulator rather than investor. On the other, if vulnerability to Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 48 economic and natural shocks or to internal social pressures and demands are not adequately addressed, socio-economic gains could be threatened. From a strategy standpoint, the Economic Union is important for Grenada as a response to the myriad challenges posed by the following:- small size; an already large and unsustainable public sector wage bill and the growing administrative and institutional demands on the State, imposed by deepened global market insertion (e.g. competition policy, environment, financial reform and global compliance, among others). Conceptually, the OECS arrangement can assist through “burden-sharing” and rationalization of functions, thus reducing the cost of providing these services at the national level. However, the Economic Union is also important from the standpoint that functional and economic cooperation, are areas which many argue provide greatest benefits to the small archipelagic States of the Eastern Caribbean. It is therefore critical that the actions and initiatives for growth and development strategies at the national and Economic Union levels are aligned to deliver the greatest synergies in resource use. A clear example of this is the ECCU growth and stabilization Program. Member Governments formulated a comprehensive eight-point plan to address, in a coordinated and strategic manner, the economic challenges being faced by the member countries as a result of inter alia, the global financial and economic crisis, the Currency Union which renders them incapable of reducing unemployment and poverty and maintaining and improving their Human Development Indices, plus the difficulties occasioned by the collapse of CLICO and British American Insurance companies. The Plan provides a comprehensive framework for the consideration of the issues attendant to macro-economic stabilization and adjustment, economic growth and poverty. The Plan’s core elements include the following: i. Suitably Adapted Financial Programs for each country ii. Fiscal Reform Programs iii. Debt Management Programs iv. Public Sector Investment Programs v. Social Safety Net Programs vi. Financial Safety Net Programs vii. Amalgamation of the Indigenous Commercial Banks viii. Rationalization, Development and Regulation of the Insurance Sector. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 49 While acknowledging the importance of each of the eight points inthe Stabilization Plan, the Strategy focuses on Points 1 through 5. The relationship between growth and poverty in the 8-point Plan is that the poor will benefit from the positive impact of stabilization and economic growth, particularly through growing income and employment opportunities. According to the ECCU, “The first three components - Financial Program, Fiscal Reform Program and Debt Management Program - of the 8-point Program are aimed at first stabilizing the economies by addressing the deficiencies that have placed the region under severe stress. The PSIP and Social Safety Net Program are intended to stimulate the economy”. 5.3 National Macro-Economy 5.3.1 Fiscal Policy  The Reality Grenada, like most of its OECS counterparts, has experienced difficult fiscal circumstances over the last two decades. The 1990s evidenced a steady decline in the country’s revenues as performance in traditional agriculture continued to disappoint, combined with procrastination in aggressive development of the tourism and other services sectors. Anecdotal evidence indicates that the slowdown in the 1990s and early 2000s was also associated with declines in productivity growth. The fiscal balance declined steadily throughout the 1990s, with an escalation from 1997 to 2000, due to rising levels of capital expenditure, undertaken in an attempt to compensate low levels of private investment and drastically reduced exports. The external shock of the first half of the decade of the second millennium, the bombing of the World Trade Centre on September 11th 2001, followed by the natural disasters of 2004 and 2005, are well chronicled, so too were the impact on revenues and current expenditure patterns both of which moved in adverse directions. The primary and overall deficits for 2013 were 4.4%, and 4.9% of GDP, respectively. Current revenue was 19.45 % in 2013, and current expenditure was 19%. The period was also characterized by Grenada and other OECS counterparts taking on higher cost commercial financing. Even though Grenada is committed to repaying its debtors, the Government has been forced to dramatically tighten fiscal policy in order to appear credible to investors, thereby hopefully reducing the risk associated with the restructuring. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 50 Grenada’s fiscal circumstance will continue to be challenging for the next several years since:  Total expenditures exceed total revenues by between EC$180 and EC$192 Million per annum.  70 cents of every dollar collected are expended on personnel costs.  28 cents of every dollar raised are allocated in debt repayments.  High unpaid claims and high debt are the results of this monthly deficit (approximately EC$15.0 Million).  Past wages and emoluments for the period 2013-2014 amounts to EC$40M.  Total revenues fell short by EC$40.0 Million.  Capital expenditure of EC$151.2 Million was 58% of estimate, but EC$16.3 Million more than in 2012. With the exception of Petro-Caribe, grants are also underperforming. EU Budgetary Support under the 10th EDF Program is critical, but realistically can only occur within the context of the 2014-2016 IMF Program. In April 2006, Grenada engaged the IMF and entered into the Poverty Reduction and Growth Facility (PRGF). The PRGF was a comprehensive medium-term economic reform Program with the objectives of promoting sustained high economic growth, restoring fiscal and debt sustainability, reducing vulnerabilities and alleviating poverty. The Program was reviewed by an IMF team every six months against certain performance criteria and benchmarks. This Program was successfully completed in March 2010. Figure 9: Selected Fiscal Measures as a Percentage of GFP Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 51 On April 02, 2010, the Executive Board of the International Monetary Fund (IMF) approved Grenada’s request for a new three-year arrangement under the Extended Credit Facility (ECF) totalling SDR 8.775 million (about US$13.3 million). Two disbursements were made to the Government under this Program. Following the second review conducted in March 2011, the ECF was placed on hold in June 2011 pending an evaluation by both parties and a reassessment of certain key assumptions by both the IMF and Grenada. At present, Grenada is engaged in discussions with the Fund about the resumption of the Program based on revised and appropriate assumptions of growth and revenue collection.  The Challenge Transitioning from a reactive macroeconomic management focus to a proactive growth focus: Grenada will have to reduce its fiscal deficits (fiscal consolidation). This will require synchronization of the reduction in fiscal expenditure, with the expansion of selected private sector investment, in order to reduce the adverse effects of reduced expenditure on the economy. New investment has to benefit from fast-track treatment (especially if earning or saving foreign exchange) as part of an efficient business facilitation strategy. Inflation has remained low after peaking in 2007-2008. Projections are that inflation will remain low, averaging between 1.6% and 3% over the next three years.  Current Approaches with Fiscal Policy In the coming years, the Country’s fiscal strategy will focus on:  Returning to sustained growth in the shortest possible time as well as advancing the Government’s agenda on building the “New Economy”.  Raising the revenue effort from its current level (20.1% of GDP) to 27.0% of GDP over the medium term.  Restricting current expenditure effort to no more than 22% of GDP.  Government will generate a current account surplus of 5% of GDP to finance core capital expenditure and meet counterpart financing requirements.  Adopting sustainable wage bill management practices which means, inter alia, avoiding retroactive salary negotiations to minimize large retroactive payments and adequate budgeting for agreed increases.  Elaborating a strategy to reduce debt servicing and putting the debt to GDP ratio on a downward trajectory. To close the “fiscal gap” Grenada will focus on fiscal adjustment – stronger revenue collection combined with expenditure cuts, debt restructuring, development cooperation, including securing increases in external loans and grants. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 52 1. Revenue Measures, including, lowering the income tax threshold, increasing property taxes, implementing small business levy, reducing tax exemptions, improving tax administration and collection efforts, widening the withholding tax base to include lottery winnings and reducing exemptions on the VAT. 2. Expenditure Measures, including, implementing wage restraints with cooperation from labour, reducing public sector size, reducing the wage bill over time, undertaking comprehensive debt restructuring, reducing non-personnel expenditure by 20% (utilities, fuel, rent) and rationalizing statutory bodies. 3. Tax Administration Reforms, including, introducing license fees for professionals, recruiting skilled professionals in Inland Revenue Department (IRD) and providing training for IRD and Customs Staff. 4. Implementing the Citizenship by Investment Program. Given the above, Grenada faced no option but to embark on an IMF Program (2014 2016) of fiscal adjustment and structural reforms, as a sine qua non for the emergence of the “New Economy”. The primary objectives of the Program are to: 1. Engender productivity & competitiveness through growth and job creation; 2. Create fiscal sustainability; and 3. Improve debt sustainability. Other keys to the success factors for the Home-Grown Program include: 1. Societal consensus on a need for shared sacrifice. 2. Comprehensive debt restructuring inclusive of debt reduction. 3. Prospective wage settlements. 4. Significant improvement in revenue collection. 5. A well-designed and implementable PSIP (Development Projects) Benefits of the Program: 1. Stronger Economy 2. Increased confidence 3. Investment in high priority development projects 4. Significant debt relief 5. External support of at least US$100mn (soft loans and grants) 6. Technical Assistance Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 53 5.3.2 Debt Management  Grenada’s Debt Grenada has accumulated a high level of public debt (debt to GDP ratio of 107% in 2013), which has constrained economic growth and poverty reduction (see Table 4). Caution must be exercised in ensuring that the debt does not act as a constraint/drag on growth especially with the imminent 2014-2016 IMF Programs to be implemented. Table 4: Composition of Government Debt by Maturity Type Maturity Type % of Central Government Debt Interest Rate Short Term Treasury Bills 13.6% 5-6% Overdraft 0.7% 8.5 – 11.5% Other Advances 1.0% 6.5% Medium Term(3-7 years) 41.70% 7-9% Long Term 43.0% 0.5%-9% The impact of debt-creating exogenous shocks such as natural disasters has been considerable, with the OECS sub-region among the most disaster-prone in the world. In fact, years in which the growth in debt-to-GDP ratios are largely unexplained by fiscal policy have tended to coincide with natural disasters, such as major hurricanes in 1998, 1999, 2004, 2007, and 2008, all of which had devastating effects. For example, the estimated damage from the 2004 hurricane in Grenada alone exceeded US $1 billion. The impact of such external events significantly constrains the fiscal space, demonstrating their fiscal vulnerabilities and underscoring the importance of fiscal discipline and prudent debt management. Since 2008 Grenada’s debt situation has been exacerbated by the declining global economic activity and slow growth in the Caribbean (Figure 10). Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 54 The global economic and financial crisis caused the Grenada economy to contract by 9.7% between 2008 and 2012. The debt to GDP ratio jumped 7.6 percentage points, as the economy descended into free fall. The 9.7% contractions in output together with the widening negative primary deficit (4.4% of GDP in 2013) led to increases in their debt-to-GDP ratios by 21 percentage points.  Debt Restructuring Reinhart and Rogoff (2010), conclude that across both advanced countries and emerging markets, high debt/GDP levels (90 percent and above) are associated with notably lower growth outcomes. In addition, they estimate that for emerging markets, the threshold was more stringent for total external debt/GDP (60%), which is also associated with adverse outcomes for growth.8 Grenada confronts a serious debt problem, with a debt-to-GDP ratio averaging 109% in 2012 owing mainly to fiscal loosening and exogenous shocks. In analysing debt-to-GDP ratios from 1998 to 2008, two characteristics stand out- rapid debt accumulation and high interest payments from commercial borrowings. Reinhart and Rogoff (2010), opine that seldom do countries simply “grow” their way out of deep debt burden. For countries such as Grenada, other research by Reinhart, Rogoff, and Savastano (2003), advance that debt threshold is country-specific. Initiatives which hold promise for Grenada are oil and gas exploration, the “new agriculture”, along with the extant promise of rapid expansion in the hotel and tourism 8 Reinhart, M Carmen, and Kenneth S. Rogoff., “Growth in a Time of Debt”, Working Paper 15639 (http://www.nber.org/papers/w15639), National Bureau of Economic Research (January, 2010) Figure 10: Public Sector Debt: Selected ECCU Members 0 20 40 60 80 100 120 140 160 180 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Pe rc e nt o f G D P Debt ECCB Benchmark St.Lucia St.Kitts http://www.nber.org/papers/w15639 Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 55 industry. This notwithstanding, the results of “debt intolerance” analysis, highlights that as debt levels rise towards historical limits, risk premia begin to rise sharply, facing highly indebted governments with difficult trade-offs.9 Even countries that are committed to fully repaying their debts are forced to dramatically belt tighten. The conclusions of Reinhart, places in proper context the “Home Grown Structural Adjustment Program” being pursued by Grenada under the IMF Framework. Of course, there are other vulnerabilities associated with debt build-ups that depend on the composition of the debt itself. As Reinhart and Rogoff (2009b, ch. 4) emphasize and numerous models suggest, countries that choose to rely excessively on short term borrowing to fund growing debt levels are particularly vulnerable to crises in confidence that can, in turn, provoke very sudden and “unexpected” financial crises. The same type of observations can be made about external versus domestic debt, as is evident in Table 5. This clearly indicates that traditional debt management issues will need to continue to form a strong focus of public policy in Grenada over the coming years. Table 5: Composition of Government Debt by Type Creditor Type Interest Rate % of Central Government Debt Domestic 22.2% External 77.8% Bilateral 0-5% 9.8% Multilateral 0.5- 6% 30.9% Commercial 6-11.5% 37.03 Despite efforts to reduce the public debt through restructuring, the debt service burden continued to escalate. Accordingly, Grenada undertook comprehensive debt restructuring in the first quarter of 2006. The Program was relatively successful in extending the tenor of a part of the debt stock, up to 12 years, and in reducing the debt service by 90% over the life of Fund Program. The Program also included a useful goodwill provision to assess Grenada’s debt sustainability under the “Evian approach” at the conclusion of Fund Program. The 2006 Fund Program (January 2006-Deember 2009) proved disappointing in that the economic growth dividend did not materialize. Whether this was as a result of the 9 Reinhart, Carmen M., and Kenneth S. Rogoff and Miguel Savastano. Debt Intolerance“, in William Brainerd and George Perry (eds.), Brookings Papers on Economic Activity (2003). Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 56 assumptions made in the Debt Sustainability Model, or as a result of the financial instability arising from the failure of British American Insurance Company Limited (BAICO) and CLICO remain academic issues. However, by the first quarter of 2012 debt servicing had risen to 28% of current revenues, with interest payments alone, accounting for 14.2 % of current revenues, effectively crowding out other public and private expenditures. The GoG announced its intention to undertake a comprehensive and collaborative restructuring of its public debt, in March 2013, including its United States (U.S.) and Eastern Caribbean (EC) Dollar Bonds with maturity to 2025. Since then, the GoG has engaged in a series of actions pursuant to the decision to restructure. 5.3.3 Employment and Productivity Numerous authors and International Finance Institutions have offered commentary on the contribution of labour to declining national productivity and competitiveness. The argument advanced is that rigid labor market institutions were contributing to a trend toward rising unit labor costs and falling profitability. In this regard, it is noteworthy that while the request for the 2006 Poverty Reduction and Growth Framework (PRGF)/ECF arrangement noted that reform of labor markets would be an objective, labor market reforms have been noticeably absent. Since the inferences of declining labour market productivity are taken from national accounts, the observations are economy-wide, applying equally to the public and private sectors. With regard to the public sector, the Government had embarked on a manpower survey to receive the requisite data which will assist in rationalizing the size of the civil service. The intention is to eliminate the automatic filling of positions which become vacant, to offer shorter term employment contracts, and to privatize services which are best performed by the private sector, inter alia. The discussion on reducing the size and share of the public sector wage bill is an indispensable element of the policy discussion, particularly as Grenada is about to embark on its 3-year Structural Adjustment Program. However, a more comprehensive treatment is required, which contemplates approaches for eliminating existing labour market rigidities and developing the capacity of Grenadians to participate in the evolving global markets for service providers, including service workers. According to the 2013 Labour Force Survey, the labour force is about 60,000.10 The Labour Force Survey also indicates that while the current unemployment rate has fallen 10 The labour force is defined as the aggregate of the number of persons employed and those who are unemployed. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 57 to 33.5% since the decades of the nineties, unemployment rates, especially among the youth, have been unacceptably high. Youth unemployment stood at 55.6%. Such high unemployment rates have been compounded by the low and declining rates of productivity, thus exacerbating social and economic hardships (poverty). Macro-economic measures of productivity have evidenced decline since the decade of the 1980s (IMF, 2013) and prior to this period, it had not been particularly high. In order to improve the nation’s productivity profile, at least, in the long term some fundamentals must be observed. A new ethos is required which places a higher value on time and human effort. All stakeholders, including government, labour and the private sector must collaborate in undertaking actions that demonstrate a shared commitment to sustained productivity as the only sustainable means of shifting the economy from stagnation to real growth. For example, consensus will need to be forged around approaches which link wage increases to productivity growth. Far reaching institutional changes will also be required, including by the Labour Department, which will need to develop the capacity, to not only monitor nominal wages, but also non-wage impacts on productivity performance. Enhancing labour productivity, as an essential element in overall national productivity will also require the development of appropriate monitoring and evaluation modalities.  Critical Skills and Attitudes for Service Both domestic and global factors hold influence for the diversity and scope of critical skills and attitudes required for the development of an effective service-oriented labour force. The combination of missing markets, inefficient information transmission and labour market rigidities, including policies which inhibit the free movement of labour in pursuit of opportunities, in addition to absent institutions for both training and certification have retarded the development of an adequate skills competence at the national level. For some time now successive governments have advocated for the development of a service-oriented economy to replace the traditional and increasingly inefficient and uncompetitive commodity export-based economy. At a structural level, these changes were already occurring. The 2000 Central Statistical Office (CSO), report indicated that by 1999, 62% of the labour force was employed in the services industry. Despite this noticeable shift in employment patterns, the majority of persons employed in the services sectors have no form of certification and the majority have not benefitted from any formal training. Accordingly, the pursuit of a broad policy guideline on the issue of “critical skills needs” must lead to the development of a training and educational system that produces Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 58 workers with the requisite skills and competencies, which are employable at the national, regional and global levels. However, the sustained marketability of the Grenadian worker will also depend on the acquisition of vital positive attitudes to work, in addition to critical skills attainment. The New Economy, recognizes that the development of critical ‘skills for service’ will need to be somewhat redefined to provide for a more appropriate understanding of the new role of workers in the development process. The ‘New Economy’ at its core recognizes that four critical ‘batteries of skills’ will be essential for improved employability and increased productivity of the national labour force, inter alia: 1. Academic Skills: These skills provide the fundamentals for the individual to acquire and keep a job and to advance in it. Also crucial is the ability to read, comprehend and objectively evaluate situations and solve problems through the application of knowledge from the various fields that bring effectiveness to the job. This battery of skills outfits the worker with the capacity to learn for life. 2. Personal Management Skills: The proponents of the ‘New Economy’ view the acquisition of a bundle of skills, attitudes and behaviours that allows the worker to excel in his/her job as necessary for improving productivity in the work place. Positive attitudes towards learning, personal growth and development coupled with the ability to set and achieve goals (responsibility) and positive attitude to change (adaptability) will deliver a superior worker to the ‘New Economy’. 3. Team Work Skills: The ‘New Economy’ emphasizes high performance in the context of teamwork. In this regard, the necessity for collective contribution to work place goals, collective effort in planning and making decisions, tolerance for divergent views and the readiness to lead and mobilize the workforce for high performance are hallmarks of the spirit of the new development agenda. 4. Employability Skills: The Corporate Council on Education of Canada defines ‘employability skills’ as a set of “...generic skills, attitudes and behaviours that employers look for in new recruits and that they develop through training programs for current employees.” Many of the requisite skills are not included in the education programs at primary, secondary or tertiary level. Though there has been a tendency in the more recent period to redress this situation at primary and secondary levels, further interventions will be required through the national education curricula. In addition, a more rigorous programmatic approach will be needed in addressing these short-comings, particularly among the working population. These recommendations will be central to the achievement of high quality employment and to enhancing labour Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 59 productivity which remains central to Grenada’s transition to the “New Economy” and to poverty reduction.  Labour Market Improvements: Grenada ratified the International Labour Organization (ILO) Convention on the 15th day of July 1979. Since then, the Country has ratified about thirty-one (31) conventions, the most recent one being the Convention on Occupational Health and Safety. In 2011, the Government, through the passage of the Minimum Wages Order, endeavoured to bring structure and predictability to the minimum wage regime. Thirteen (13) broad categories of workers, ranging from industrial, clerical, domestic, caregivers, bakery workers, agricultural workers, construction and vehicle operators to hospitality workers, among others, were affected in terms of the minimum wage requirements. There are concrete plans to develop the Labour Market Information System (LMIS), beginning in January of 2014, with technical assistance from the ILO. According to the Commissioner of Labour, the purpose of the LMIS is to create a data base of labour information at one hub in which the stakeholders such as Finance and Statistics, Ministry of Education, Department of Labour and National Insurance Scheme (NIS) will provide and access labour information interactively. One of the expected outcomes is to use labour information and data to readily influence employment and training policies. The Ministry of Labour intends to pursue a greater level of collaboration with other Ministries and Government Departments, including collaboration with Ministries of Education, Finance and Labour itself, with the deliberate policy objective of enhancing the marketability of Grenadians in the domestic economy without contravening the regional treaties and protocols. In developing this domestic capacity, various information sources will be utilized, such as information on work permits, which will be used to identify labour market gaps and to orient man-power training and development. Mining such labour market information would also be important to curricular planning and development, including via continuing education programs. Table 6 shows the revenues earned in 2012 and 2013 according to the types of work permits and the origin of applicants. This information may be used to establish a relationship between local employment opportunities and the need to finance educational and training programs aimed at making Grenadian nationals more employable in various economic areas. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 2: the Conceptual Framework 60 A second objective of systematically developing these data sources as an input into public policy is that it can point to areas in which the financing of various programs can provide nationals with the skills set to compete for higher income earning jobs in the hospitality, yachting and marina services areas. Quite importantly, these skills deficit areas are in the sectors identified as “sun-rise” sectors in the “New Economy”. Accordingly, properly developing and employing this data can lead to both public policy interventions at the macro level, but also to discrete interventions at the community level which can significantly reduce the inequalities at the individual level, but also at the national level (as among Grenada and other Countries (where labour embodies a relatively higher endowment of skills). Table 6: Work Permits by origin of applicant and revenues earned, 2012 and 2013 No. of Applicants Revenues Earned Status 2012 2013 2012 2013 New Applicants CARICOM Commonwealth Others 271 333 73 307 366 66 $135,500.00 $333,000.00 $219,485.77 $153,300.00 $366,000.00 $202,500.00 Total 673 739 Renewals CARICOM Commonwealth Others 189 417 56 303 612 98 $94,500.00 $417,000.00 $170,000.00 $151,500.00 $612,000.00 $293,252.19 Total 652 1013 Source: Ministry of Labour, 2013 Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 61 6. TRANSFORMING GRENADA 6.1 The New Economy The long-term downward trend in Grenada’s economic growth, over the last two decades is evidence that fundamental changes are urgently needed if the expectations of the population for improvements in their standards of living, including reductions in the level of poverty are to be realized. The challenging level of economic growth and unemployment recorded and forecasted for the Grenada economy signals the urgency for a fundamental change in the development paradigm, to that of the “New Economy” which will be driven primarily by endogenous knowledge, technology, innovation and entrepreneurship. The characteristics associated with the “New Economy” are in direct contrast to those which drive the “Old Economy”. For instance, while the ‘Old Economy’ emphasizes stable markets, in the ‘New Economy, markets are dynamic. The scope of competition in the “Old Economy’ is local; however, competition in the new economy is regional and ultimately global. Hierarchal and bureaucratic forms are associated with the ‘Old Economy’ while the ‘New Economy’ is based on networking. The drivers of growth in the ‘Old Economy’ are capital and labour, while the ‘New Economy’ is driven by innovation and knowledge. While the ‘Old Economy’ is based on lowering the cost of production, the new economy is based on innovation, quality, time to market and costs. The importance of research and innovation in the ‘Old Economy’ is low to moderate, while research and development are high in importance in the new economy. The relationships among firms in the ‘Old Economy’ are based on “going it alone”, while collaboration and alliances drive the new economy. Contrastingly, skills within the ‘Old Economy’ are job-specific while skills in the ‘New Economy’ are broad-based and founded on cross training, particularly vocational training. Industrial relations in the ‘Old Economy’ are adversarial but those relationships in the ‘New Economy’ are based on cooperation and collaboration. The nature of employment in the ‘Old Economy’ is stable, however, employment in the ‘New Economy’ is marked by risk and opportunity. In its relationship with Government, the ‘Old Economy’ is based on “command and control” even where there is a perception of consultations, while the ‘New Economy’ is distinguished by the promotion of growth opportunities. Competition from low cost but relatively high-educated and skill-intensive countries, such as China, Brazil, India, and Latin America, among other developing countries, will continue to threaten and render obsolete the traditional sectors based on labour and Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 62 capital. With rapidly declining returns to capital and sharply increasing unit labour cost of production, Grenada must speedily equip its traditional sectors for the transition to the New Economy by infusing a strong technological capacity in agriculture, particularly in youth farmers. The same is true of the manufacturing sector, where innovation and technology offer immense opportunities to level the playing field. The survival of both traditional sectors of agriculture and manufacturing in the “New Economy” will depend on an accelerated rate of productivity growth and their ability to speedily adapt to the imperatives of the New Economy. The ‘Old Economy”, based on land, labour and capital, which has driven Grenada’s economy since the colonial era, has all but run its course as a development paradigm. Globalization forces have placed limits on the efficacy of the “Old Economy” to generate economic growth, to create sustainable jobs and to reduce the ranks of the poor. Information and telecommunications technology have drastically reduced the cost of transferring not just capital, but also information from high-cost locations in developed countries to low-cost locations among developing countries. Considered together, this means that economic activity in a high-cost location such as Grenada is incompatible with routine tasks and with business as usual under the “old economy”. Globalization has shifted the competitive advantage of high-cost locations to knowledge based activities and “New Economy” enterprises, and is also driving the search for business activities which will constitute new sources of growth. The “New Economy” constitutes an effective response to the “twin horn” dilemma of unprecedented unemployment and low economic growth, manifested by deteriorating competitiveness and rising manufacturing and service costs at the firm level, misaligned expansionary fiscal policy stance, need for pro-business and pro investor reforms and an urgent focus on education and vocational training. The GoG envisions that the “New Economy” will comprise, inter alia, a world class tourism, yachting and marina destination, complemented by efficient business, finance and information technology services, an efficient light manufacturing sector, a well diversified agricultural sector focused on “value added” products, a dynamic oil and gas and renewable energy sector, and a highly efficient agro-industrial sector cluster dedicated to oils and flavour extraction for health, food, cosmetic and pharmaceutical applications. Grenada has no other viable option but to urgently transition to a “New Economy”. This transition, will unleash forces of creative destruction leading to the replacement of some sunset (“Old Economy”) industries with sunrise (“New Economy”) industries. Without such a transition, the prospects for economic growth, which closes the income inequality gap and reduces levels of poverty, will continue to disappoint. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 63 Pursuing a ‘New Economy Agenda’ will require precision with respect to the focus for development and definition of strategic interventions. In this regard, the GPRS will focus on four distinct yet mutually-beneficial thematic areas, namely: 1. Building Resilience 2. Developing Competitiveness with Equity 3. Reducing Vulnerability 4. Strengthening Governance and Security 6.2 Thematic Focus I: Building Resilience Priority Area Strategic Objective (s) 1: Stabilizing the Macro Economy 1.1 Boosting growth and job creation; 1.2 Improving fiscal sustainability; 1.3 Improving debt sustainability 2: Enabling the Business Environment 2.2 Enhancing international trade and market access capacity 2.3 Developing financial services for “pro-poor” growth (MAP) 2.4 Adopting a ‘ Doing Business’ Agenda 2.5 Expanding the MSME sub-sector(MAP) 3: Leveraging the Growth Sectors Development of: 3.1 Health and Wellness (Geriatric Care) 3.2 New Agriculture and Agribusiness 3.3 Tourism and Hospitality Industries 3.4 Energy Development and Energy Security 3.5 ICT and Management 3.6 Other Services Sectors (educational, construction, cultural, financial, professional, personal care); 4: Developing Sustainable Energy 4.1 Explore and exploit a hydro-carbon development strategy; 4.2 Up-scale investment in the development of clean and renewable sources of energy. The declining growth trajectory for Grenada over the last two decades provides strong anecdotal evidence of declining productivity at the level of the macro-economy. The volatility across sub-periods, demonstrate that the country remains highly susceptible to Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 64 global volatility and reflects the weak resilience of the growth and development process. The analysis in earlier sections also demonstrates that a few of the areas to which Grenada has given a focus in recent years, namely those of services (particularly tourism, financial and other services) are becoming increasingly challenging from a policy standpoint and contestable from a competition perspective. To build economic resilience, Grenada will need to focus on macro-economic stabilization, which will involve adjustments as the economy transitions from the “Old Economy” to the “New Economy” driven by new sources of competitiveness. The factors which humbug and distort the emergence of the new growth sectors/clusters will also need to be dismantled, so that all the sources of comparative and competitive advantage can be laid at the service of the growth and development process. Accordingly, the first thematic area, envisages a focus on three complementary strategic objectives - at the macro level, at the meso-level (business environment), and at the sector level (growth drivers). Priority Area 1: Stabilising the Macro-Economy The 2013 and 2014 Budget Statements convey a clear intention by the GoG to address the macro-economic issues of debt and fiscal instability which have stymied growth and private sector activity over the past two decades. Previous sections of the extant Strategy have established the relationship between macro-economic stability, growth and poverty reduction. This commitment is now embodied in a “Home Grown Program” of fiscal adjustment and structural reforms, with the support of the IMF and other development partners to extend for 2014-2016. The elements of the “Home Grown Program” have already been presented earlier in the Strategy. The benefit of the extant Strategy is that it explicitly recognizes the relationship between the many existing poverty alleviating projects or initiatives planned and announced by the GoG and this macroeconomic framework, with a focus on debt and fiscal sustainability. This strategic objective recognizes that a stable macro-economic situation is a sine qua non for sustainable economic growth and poverty reduction. Strategic Objective 1: Boosting Growth and Job Creation Boosting growth and job creation for poverty reduction and shared prosperity will be an important pillar for the Grenada economy for the foreseeable future. In this regard, a number of major constraints will need to be addressed, such as improving access to credit and finance, including by those presently locked out of these markets, facilitating improvements in the business environment, including eking out efficiencies which exist Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 65 in the area of trade facilitation (Single electronic window for trade processing, etc.), facilitating investment, online access to laws and regulations, strategic trade policies. Strategic Objective 2: Improving Fiscal Sustainability Macroeconomic stabilization policy over the next three to five years will also need to focus on improving fiscal resource mobilization - central to the three areas enumerated, above. In addition, macro-policy for Grenada must focus on improving public resource management including management of the Country’s oil and gas development program. Strategic Objective 3: Improving Debt Sustainability The evidence of the past five years demonstrates that where debt levels are not prudently managed, the overhang, becomes an excessive burden leading to expenditures being diverted from social programs to debt servicing. In this context, this Strategy also establishes a clear orientation for approaches to growth which are “pro poor”. The precipitous decline in investments, including FDI, and also the failure of BAICO and CLICO, but also in the face of home-grown institutions such as Cap-Bank and SGL, and the disproportionate cost of these failures borne by Grenadians is de facto justification for the pushing through of critical reforms in the financial services sector, including insurance services. Ensuring a robust financial system, including lasting solutions for Cap Bank, and the further development of the regulatory framework, along with prudential safeguards will be important ancillary elements of the “New Economy”. Priority Area 2: Enabling the Business Environment The Eastern Caribbean Currency Union (ECCU)’s 8–Point Program establishes the importance of partnering with the private sector and highlights the needs for policy coordination within and between countries and for improved policy making capacity within the public service. Strategic Objective 1: Enhancing International Trade and Market Access Capacity Grenada is engrossed in a global change process, which will hold far-reaching implications for the country’s market access prospects, as well as for the development of the domestic market. Increased pressures for tariff liberalization and liberalization of the services and investment regimes, competition policy, trade facilitation, free circulation of goods, treatment of free zones, product standards, among others, highlight the importance of the trade agenda. Actions in this area will include: i. Promotion of intense stakeholder participation through the National Trade Policy Coordinating Committee (NTPCC) in the trade reform and negotiations process, Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 66 aimed at developing domestic supply capacity and eliminating market access constraints— Trade and Market Development strategy. ii. Strengthening of diplomatic and trade links with new trading partners experiencing upward growth trends. Such mission should be given targets to reach with respect to exports and investment—International Cooperation strategy. Strategic Objective 2: Developing Financial Services for “Pro-Poor” Growth (MAP) Capital and finance markets in Grenada remain somewhat under-developed. Increasing access to those whose collateral does not qualify them for investment funds in the formal commercial bank sector, as well as, improving access to finance for promoting investments by improving the business environment, particularly in the new sectors with strong linkages to the local economy, will increase the opportunities for new job creation. Improving access to finance by facilitating the development of non-bank financial institutions, and other institutional frameworks designed to provide a stable and predictable credit market will also be important. Attention also needs to be placed on supporting changes to the credit requirements, such as allowing a diversified set of investments, including stocks and equipment. Strategic Objective 3: Adopting a ‘Doing Business’ Agenda System-wide institutional modernization and other reforms will be undertaken throughout the public sector and in critical support organizations, consistent with the benchmarking criteria used in the World Bank’s “Doing Business” Report. The GoG is also committed to creating an environment which nurtures private sector development, particularly for Micro Small and Medium Sized Enterprises (MSMEs). Actions in this area will include engagement in a reform of regulation and legislation to reduce transactions costs and enhance efficiency—including, setting of standards for activities, boosting overall productivity and business facilitation (approvals, permits, licenses, rebates etc.) Strategic Objective 4: Expanding the MSME Sub-Sector (MAP) Creating and sustaining an environment which enables all forms of business development, manages risk and uncertainty, bolsters investor confidence, and facilitates the delivery of goods and services on terms and at costs which are competitive with the rest of the world, will continue to be an indispensable element of the growth and poverty reduction agenda for Grenada. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 67 Over the next five years, a dynamic agenda of institutional development and reform will be unleashed in response to the changes occurring at the national, EU, CSME and global levels. The focus on micro, small and medium sized enterprises (MSMEs), while not being a sector per-sé, is an imperative, particularly given the impact which the financial and economic crisis has had on these sized businesses since 2008. The attention to the MSMEs is also important given the diminished capacity of the public sector as primary employer in the future. Priority Area 3: Leveraging the Growth Sectors While avoiding the well-known pitfalls of “picking winners”, Grenada’s “New Economy” will command a focus in six (6) strategic areas which are defined as the six (6) Strategic Objectives, namely:  Strategic Objective 1: Developing Health and Wellness (Geriatric Care)  Strategic Objective 2: Developing New Agriculture and Agribusiness  Strategic Objective 3: Developing Tourism and Hospitality Industries  Strategic Objective 4: Developing Energy Development and Energy Security  Strategic Objective 5: Developing ICT and Management  Strategic Objective 6: Developing Other Services Sectors These sectors have been identified on the basis of their ability to compete at a regional and/or global level, given innovation, and/or the application of science, technology, or entrepreneurship. Selection was also based on the emergent revealed competitive advantage in sectors such as, education (St. George’s University), yachting, and the excess demand and projected tendencies evident for certain agri-food products, high end tourism products, renewable sources of energy, among other factors. The orientation in this priority area is the removal of constraints to successful performance by these growth drivers, through the provision of critical support and incentives to support the enterprise, entrepreneurship and growth in the aforementioned seven areas. While properly constituting critical growth drivers in their own right, three areas - new business, energy development and ICT - constitute substantive priorities which cut across all four thematic areas, with far reaching implications for virtually all priority areas. Needless to state, these three areas are also germane to poverty reduction and economic growth. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 68 Priority Area 4: Developing Sustainable Energy Meeting the energy needs of the poor in a sustainable manner is a key challenge for Grenada so as to: (i) decrease dependence on petroleum fuels; (ii) diversify the energy matrix by substantially incorporating “country-appropriate” renewable energy sources and increasing energy efficiency; and (iii) take advantage of global carbon market opportunities. The cost of energy in Grenada is, on average, among the highest in the world, primarily as a result of the very high cost of transportation, associated with the relatively small quantities of imported fuel delivered to the country. Grenada spends, on average, over EC$600,000 per day, for more than 2,200 barrels of oil (calculated at EC$270 per barrel). For energy and energy development as a growth sector in the ‘New Economy’, attention will be accorded to energy conservation, enhancing the efficiency of energy utilization, reducing the cost of energy, and developing alternative sources of energy (geo-thermal, solar and wind). Strategic Objective 1: Exploring and Exploiting Hydro-Carbon Development Grenada’s proximity to the Republic of Trinidad and Tobago and Venezuela raises the potential for commercial discovery of oil and gas resources. The Government of Grenada is committed to managing the exploration and exploitation of whatever hydrocarbon resources are discovered and extracted for the benefit of present and future generations. In pursuing its hydro-carbon development strategy over the next five years, emphasis will be placed on: i. Concluding negotiations with Trinidad and Tobago for the joint development of maritime resources in the “overlapping” boundary space. This will include concluding subsidiary Agreements that will allow for the commencement of development; ii. Undertaking a comprehensive development plan for the Oil and Gas industry, including a review and updating of legislation, training, research and development needs; iii. Providing for training and scholarships to build capacity in disciplines related to the oil and gas industry; iv. Pursuing negotiations with Venezuela and other CARICOM Member States for a just and equitable outcome in Hydro-Carbon development; v. Commencing joint research programmes on the possible options of the utilization of the country’s gas resource; Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 69 vi. Expanding and improving the institutional arrangements for the governance of the oil and gas sector. These actions are intended to contribute to Grenada’s energy security within the shortest possible timeframe. Strategic Objective 2: Up-scaling Investment in Development of Clean and Renewable Sources of Energy There is an urgent need to “up-scale” investment in the development of clean and renewable sources of energy, such as wind, hydro and solar power by: i. Encouraging the development of alternative sources of energy for domestic and industrial use; ii. Providing direct incentives to energy service providers who produce direct heating, cooling, or mechanical services such as, solar water heating and other mechanisms which reduce demand for electricity from the grid; iii. Considering the use of tax rebates and other fiscal incentives for technology used in the stabilization of the grid; iv. Evaluating the use of geothermal and PV energy; v. Prioritizing steps towards third party financing of energy efficiency services and products for the public, commercial and, to a lesser extent, the domestic sector; vi. Launching the Pay-as-You-Save (PAYS) and Lease Financing Initiatives to support financing of energy efficiency activities; vii. Mainstreaming the sustainable energy economy into climate change adaptation strategies so that the focus of the sustainable energy strategy becomes resilience-building. Thematic Focus 1 -‘Building Resilience’ will, of necessity, require emphasis on some key elements, namely: Competitiveness Development, which will include, inter alia, the development of: 1. A Trading and Marketing Strategy to promote the use of trading agreements with established trading partners– e.g. EPA with greater information flow on accessing markets for new goods and services via EPA Units. Supply and market access constraints should be removed. 2. An Export Expansion Strategy to strengthen diplomatic and trade links with new trading partners with upward growth trends. Such mission should be given targets to reach with respect to exports and investment. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 70 3. An Investment Strategy to create an investment plan with respect to FDI, public infrastructural investment, improvement in the quality of production assets (e.g. hotels, public buildings) and linked to the financial strategy. PPPs can form part of this strategy. Private Sector Development, with emphasis on actions to: 1. Develop a private sector development plan to guide the Government’s facilitation process. For example a plan to boost agricultural production to reduce the high import bill and develop agro-processing facilities. 2. Deepen the Social Partnership at the firm level to enhance greater cooperation/consultation, boost productivity, performance based pay, provide for decent work, building trust, creating workplace flexibility etc. Development Finance and Investment, in particular, the need to: 1. Establish new arrangements for financing new and expanding enterprises with strong foreign exchange potential (saving or generating) and integrated with technical assistance. Enhanced role for the CDB to access funds, new members, CC funds for Green and Blue economic activity and also for Credit Unions. 2. Systematize the formulation of government projects and programs in a manner such that once they arrive at the PSIP they can be effectively monitored and evaluated once implementation begins. This is also important in the attempt to minimize the mismatch between government’s policy intentions and what actually occurs on the ground. In the final analysis, the goal is to make investments where they are needed and obtain the optimal returns because the governmental actions and interventions are those that would attract private sector activities for the propulsion of economic growth. 6.3 Thematic Focus II: Developing Competitiveness with Equity Priority Area Strategic Objective (s) 1: Education and Human Resource Development 1.1: Promotion of accessible and relevant education and vocational training 1.2: Improvement of education for competency based learning 1.3: Enhancement of affordable health services 2: Social Transformation 2.1: Improvement in targeting, coverage and efficiency of Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 71 Priority Area Strategic Objective (s) and Social Care social safety net 3: Youth Development 3.1: Technical and vocational education and training 3.2: Certification and labour mobility 4: Gender Equity 4.1: Mainstreaming gender 4.2: Policy intervention to support gender equality Stable institutions, sound macroeconomic policies, trade and market openings and privatization have long been considered to be the pillars of economic development. Indeed, sound fiscal and monetary policies, a trusted and efficient legal system, a stable set of democratic institutions, and progress on social conditions will contribute greatly to a healthy economy. “New Economy” thought however, recognizes that these factors are necessary, though not sufficient, conditions for economic development. These broader conditions provide the opportunity for wealth creation but do not by themselves create wealth. Wealth is actually created at the microeconomic levels of the economy. Wealth can only be created by firms. The capacity for wealth creation is rooted in the sophistication of the operating practices and strategies of companies, as well as in the quality of the microeconomic business environment in which companies compete. Unless these microeconomic fundamentals/capabilities improve, macroeconomic, political, legal, and social reforms will not flourish. True competitiveness is achieved by the productivity growth and technical change which a nation derives when it presses into service, its human, capital and natural resources. Competitiveness is therefore achieved by a nation developing its underlying source of prosperity. Grenada’s greatest source of prosperity is its human resource, and the population’s standard of living will be determined by the productivity of its economy. Productivity will depend on the ability of the Grenadian economy to mobilize its available human resources. Such productivity will depend on the value of the Country’s products and services – measured by the prices they can command in open markets – and by the efficiency with which these same goods and services can be produced; even those services produced solely for domestic consumption. Equity considerations are best achieved through productivity, which will allow a nation to support high wages, attractive returns to capital, and maintain strong exports and high quality domestic products – and with them, sustain a high standard of living. The focus in this thematic area is on the development and empowerment of the country’s Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 72 human resource. By developing and empowering people through education and health, productivity can be impacted through wages and efficiency, thus having a major impact on the cost of doing business and the cost of living in the country. Grenada has collaborated with other OECS Countries, in strengthening safety nets in order to avoid potential declines in living standards, while maintaining and improving investments in human capital. These countries also committed to strengthening the resilience of their societies by improving the quality and relevance of education, the capacity of the health systems to address the growing burden of non-communicable diseases (NCDs); and the efficiency of social expenditures. Priority Area 1: Education and Human Resource Development Human resources development is regarded as facilitating the development of national human capacities to achieve sustainable, inclusive, equitable development and, at the same time, enhance the well-being of individuals. For the GoG, Human Resources Development (HRD) lies at the core of the economic, social and environmental dimensions of the “New Economy”. Indeed, HRD in its myriad dispensation is also a critical component of Grenada’s interface with the OECS Economic Union and in its cooperation with the international partners and donor institutions. The extant Strategy also establishes the need to recognize the HRD targets as a vital element in achieving the Millennium Development Goals, and for expanding opportunities to all people, particularly the poor and other vulnerable groups. Human resource development has been defined as empowering people by fostering the contributory capacities that they can bring to the improvement of their own quality of life and that of their families, communities, enterprises and societies. In this context, this Strategy has identified meaningful collaboration with non-state actors and civil society, in addressing the deficiencies in this priority area. The findings of the Non State Actors Panel on “An Alternative Growth and Poverty Reduction Strategy for Grenada” (March, 2012), are useful in identifying the need for a comprehensive, and integrated human resource development approach that is sensitive to gender considerations and which is attuned to the specific needs of the poor and other vulnerable groups. The conclusions of several development consultations highlight the importance of incorporating vital areas, such as demographics, health and nutrition, education and training, science and technology, and employment, as central HRD factors. The learning since 2008 highlights the importance of addressing HRD at the national/society-wide level. The importance of non-state actors in developing strategies Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 73 for sustainable livelihoods, which are grounded in local communities and governance structures, with full involvement of key representatives of civil society, will be the key to successful inroads being achieved over the next several years. Strategic Objective 1.1: Accessible and Relevant Education and Vocational Training Education is also an important instrument for reducing poverty, contributing to individual wellbeing, and developing cohesive and harmonious communities. Grenada is committed to achieving targets for education of 20% of total expenditures and 5% of annual GDP. Grenada is also committed to several important United Nations, CARICOM and national conventions on education and the Rights of the Child, including the UN Millennium Development Goals (MDGs) and the OECS Education Sector Strategy (2012 21), which will guide public policy in education over the next five years.  Early Education Enhancing all aspects of early childhood education, in terms of dietary needs, physical facilities, quality teaching, support services for students and sound management.  Primary Education Primary education lays a foundation to enable persons to participate effectively in the social, economic and political activities of their communities. Delivering high quality primary education is an important foundation for economic growth. Over the next five years, some of the set objectives include: i. Repairing and/or renovating all the nation’s primary schools, including upgrading and equipping schools with proper facilities for teaching and learning in ICT and the sciences to improve structures and facilities; ii. Strengthening learning environment quality by focusing on diagnostic and remedial work (esp. in reading, literacy, numeracy and technology, to raise the quality of teaching of English Language and Mathematics). iii. Incorporating a school feeding Program at schools to ensure that every child is properly nourished and ready to receive instruction.  Secondary Education Completion of secondary education is seen as the minimum standard for basic preparation for the world of work. Some of the set objectives for this area include: i. Improving the physical structures and facilities of Secondary Schools by reviewing and upgrading those in critical need of repair; Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 74 ii. Implementing needs-based text book and educational materials and aid in developing libraries at all Secondary Schools; iii. Strengthening programs to encourage students to achieve maturational goals consistent with their secondary education; iv. Implementing common standards to identify learning disabilities or curriculum deficiencies and take appropriate corrective actions; and v. Introducing conflict-resolution programs for both teachers and students.  Post-Secondary Education Transforming the TAMCC into a centre of excellence by: i. Building on its successes in Technical and Vocational Education and Training (TVET); teacher training, nursing, building technology and pharmacology among other programs of study; ii. Maintaining high levels of enrolment in TAMCC programs in order to maintain the courses and programs being offered; iii. Ensuring accessible education at TAMCC, regardless of socio-economic constraints; and iv. Establishing Student Support Services as part of the universal access and quality of education mandates. TVET is an important aspect of lifelong learning. Opportunities will be provided for learners to develop knowledge, skills and attitudes to enable them to continue developing and obtain productive employment. This is to be done by: i. Mainstreaming appropriate technical and vocational education throughout the education system; ii. Establishing a National Tourism & Hospitality Institute within the TAMCC; iii. Designing and offering relevant TVET programs sanctioned by employers, learners and Government; iv. Expanding the list of TVET electives to improve the quality and relevance of the technical and vocational programs; v. Enhancing access to technical and vocational programs through “online” and specially designed modules offered through the National Training Agency (NTA), TAMCC, among others; and vi. Increasing funding and pursuing scholarship and training opportunities for students in TVET disciplines critical to national development. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 75  Tertiary Education To compete on a global and sustainable level, the Grenadian economy requires a far greater percentage of university graduates and citizens committed to lifelong learning. In pursuing the goal of at least one university graduate per household by 2030, it would be necessary to: i. Mobilise, coordinate and secure opportunities for scholarships, bursaries, grants and placements to enhance access to university education by: collaborating with the TAMCC, St. George’s University (SGU), the University of the West Indies (UWI) and other Tertiary Institutions, to offer a wider range of degree programs; establishing a “special purpose” Division of full-time professionals, including a Student Services arm, to enable students to develop their full potential and to attain their educational goals; introducing a special revolving loan fund to assist students with meeting the cost of university education; and providing scholarships to economically disadvantaged students based on transparent criteria. ii. Strengthen remedial programs and adult literacy by: introducing remedial programs in English, Mathematics and Critical Thinking and providing access to learning in areas where students are gifted; and renewing the focus on adult and continuing education, with particular emphasis on re-training of unemployed persons and delivering TVET programs. iii. Improve the quality of teaching and the learning environment at all levels by: improving Teachers’ Quality Management and Motivation, including exploring ways to enhance remuneration packages and conditions of service for all teachers at all levels, including collaborating with the TAMCC personnel, to ensure that those employed under the TAMCC Council benefit from salaries and compensation packages consistent with their counterparts in the Public Service Commission; prioritizing recruitment of teachers who are subject specialists, including exploring options for attracting more teachers in vital subjects, such as mathematics, science and engineering. iv. Strengthen processes and structures for Management of Education, including: improving the quality and accountability of leadership and management in schools, Ministry of Education and other institutions; designing curricula and delivering first degree and post-graduate diploma courses in Education Administration; Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 76 continuing to reform the management systems in the Ministry of Education in order to improve the delivery of education policies and programs; and building strong parent-teacher associations and school boards as a means of building communities across the education system including learners, teachers, administrators and the home.  A Renewed Role for Parents The “New Economy” requires parents to co-partner with teachers in the school education system, thus moving parents from the periphery of the process to the centre of school and child development and success.  Information and Communication Technology (ICT) in Education ICT is to be fully utilized to facilitate learning and develop the technological competencies of a variety of learners in the formal and non-formal sectors. This is to be done through a variety of modalities: i. The provision and effective use of computer labs in schools; and ii. Introduction of students to ICT as a tool for learning and accessing knowledge.  Special Education: i. Develop a Special Needs Education Policy, which recognizes the needs of the differently-abled and which maximizes their potential as productive members of society; ii. Provide appropriate learning tools, including IT, for the delivery of the curriculum; and iii. Provide and/or upgrade appropriate facilities at special needs institutions. Strategic Objective 1.2: Improvement of Education for Competency-based Learning Following consultations with the private sector, competency-based education and training (CBET) have been identified as being of particular importance to matching job opportunities with skills sets. CBET may be defined as a training system founded on standards and recognized qualifications based on competence - the performance required of individuals to do their work successfully and satisfactorily. CBET is particularly important for Grenadian workers to improve their productivity and customer satisfaction, to enhance their skills in a highly competitive market, to create a workforce that keeps abreast of technological advancements in specific fields, and for them to take advantage of the freedom to move under the CSME. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 77 The National Training Agency (NTA) is the competent authority in Grenada which delivers the CBET programs. Improving the CBET in Grenada will require a substantial uplift in financial and technical resources to ensure that the trainers can continuously improve their capacities, and that courses materials and the resulting courses are truly competency based. Strategic Objective 1.3: Enhancement of Affordable Health Services Pursuing a long, healthy and productive life is central to human development. This requires access to quality healthcare and a healthy lifestyle. In addition to maximizing the opportunities of the individual citizens, good health and well-being are critical to economic activity. The provision of, and access to quality healthcare and the shift to healthy lifestyles have been highlighted as core issues, requiring concrete action within the development context. The GoG is committed to ensuring that adequate resources are available on a continuous basis to improve the quality of life through improved public health systems and facilities. Strengthening and entrenching primary health care in Grenada, Carriacou and Petite Martinique remain the focus of the health care system in Grenada. Priority will be placed on strengthening community health facilities and hospitals and will become the second level of intervention. Over the next several years the focus will be on the provision of quality health care. Accordingly, the following initiatives will be undertaken: i. Rationalize the number of medical stations. ii. Expand and develop the range of medical services available at the medical stations and district health centres in order to reduce demands on the General Hospital; iii. Ensure that basic medicines are available at the Medical Stations and at the District Health Centres; iv. Involve NGO’s, community- and faith-based organisations and other stakeholder groups in the education, prevention, management and delivery of primary health care services; v. Refurbish and equip the Medical Stations and the District Health Centres to better cater to patient needs; vi. Provide the resources required for “extended hours” shift system at the District Health Centres; Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 78  Hospitals: i. Invest in tertiary health care improvements at the Princess Royal and Princess Alice Hospitals, by modernizing infrastructure, and providing the basic package of pharmaceuticals; ii. Fill positions throughout the medical system, as a matter of highest priority, in specialist areas such as cardiology, chronic pain management and chronic non communicable diseases;  Financing: i. Cover the cost of “core” health care services to nationals who cannot afford to do so, and provide assistance where services are not available in the Public Health Care System; ii. Immediately establish a task force of leading management experts to analyse the budget allocations of health care in order to identify cost-savings and areas for greater efficiencies; iii. Review options for health care financing, including feasibility of a National Health Insurance and take steps to implement sustainable financing methods for the Health Care System. iv. Leverage creative models of financing and partnering with the private sector, the OECS Drug Procurement facility, and bi-lateral arrangements with producer countries to reform the national drug service.  Management i. Review management of the Health Care System, which will explore alternative models including, but not limited to, establishing Health Authorities’. ii. Establish a Charter of Rights as a means of balancing and respecting both the rights of the patient and the rights of the medical practitioner;  Critical Infrastructure Support i. Collaborate with the St. George’s University in developing a Primary Health Care Education Program for junior doctors and nurses; ii. Partner with the T.A. Marryshow Community College (TAMCC) and SGU in revitalizing a nursing school to substantially increase the number of female and male nurses trained; iii. Create new opportunities to develop medical skills in areas, such as, Paramedics, Family Nurse Practitioners, Occupational Therapists, Radiographers, Pharmacologists, Social Workers, Councillors, Lab Technicians; iv. Pursue work opportunities abroad for Grenadian-trained health practitioners. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 79 v. Establish a modern National Ambulance Service (NAS), by reviewing, expanding and decentralizing the existing service to the District Medical Stations, Health Centres. The NAS will be staffed with paramedics, emergency medical technicians (EMT’s), emergency dispatchers, and will have its own management structure;  Human Resource Development i. Create new opportunities to develop medical skills in areas, such as, Paramedics, Family Nurse Practitioners, Occupational Therapists, Radiographers, Pharmacologists, Social Workers, Councillors, Lab Technicians;  IT Capability i. An effective monitoring and evaluation protocol will be instituted for the delivery of the health care system. ii. IT based Medical Records Management System will be introduced, to allow the confidential sharing of patients’ records in real time; iii. “e-infrastructure” will be used to deliver “e-medicine/telemedicine” and to enhance access to medical research and technology.  International Cooperation i. Enter into agreements with CARICOM, Commonwealth, and advanced developing countries, to help build capacity and access specialized medical procedures which are either unavailable or too costly in Grenada; ii. In collaboration with PPS, negotiate, procure and source “generic drugs” from developing countries in Latin America, Asia and India, as a means of increasing cost effectiveness of critical medicines.  Public Health and International Cooperation: i. The occupational health and safety legislation is implemented; ii. Legislation amending the Solid Waste Management Authority to maintain its own accounts is brought to Parliament; iii. Landfill management is strengthened, particularly in the treatment of hazardous waste. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 80 Priority Area 2: Social Transformation and Social Care Strategic Objective 2.1: Improved social safety net targeting, coverage & efficiency A review of the social development and social protection interventions in Barbados and the OECS makes the cogent observations that many of the programs are delivered in a piecemeal, unfocused and untargeted manner.11 The lack of a comprehensive social policy framework, to guide many of the interventions was also highlighted. Grenada suffers too, from the absence of a national beneficiary register, which will allow for a far more evidence-based approach to Program targeting, particularly where streamlining of programs to beneficiaries is prudent. The period since 2008 has been marked by an increase in poverty levels and a general deterioration in the social condition. Grenada and other OECS Governments have attempted to strengthen safety nets in order to counter the declines in living standards, while at the same time maintain and improve investments in human capital. These countries also aim to strengthen the resilience of their societies by improving the efficiency of social expenditures. Grenada has decided to undertake policy reforms with a view to strengthening social safety nets―one part of the broader spectrum of social protection programs that attract support from many donors, including the World Bank, CDB, DFID, EU, OAS and UNIFEM and UNICEF. The GoG has made significant investments in social development and social protection interventions over the last five years. In fact, the GoG reiterated that social safety nets will be protected under the Home Grown Program with the IMF. Over the next five years the GoG will: i. Review the National Poverty Mapping and Assessment to identify those persons and communities most in need; ii. Refine its targeting strategies through conditional cash transfer programs and use of means testing to ensure that the country’s social safety nets reach the most needy; iii. Reform the pension system, guided by a review of public and private sector systems, to determine strengths, weaknesses and specific strategies; iv. Streamline the public assistance Program for more targeted and effective support to the vulnerable; 11 Sub-regional Analysis of the Development Context in Barbados and the OECS, by the United Nations Sub regional Team for Barbados and the OECS (2011). Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 81 v. Strengthen NGOs at the community level to enable them to provide adequate support for social interventions; and vi. Create multi-purpose community-based tele-centres to provide training, research, social networking, connectivity and other support for community building and sustainable micro-businesses.  Persons with Disabilities Disability and poverty are closely linked in a cycle of exclusion and marginalization. To promote the welfare of persons with disabilities, the GoG will seek to provide: i. Opportunities for persons with disabilities to have greater and easier access to education, housing, transport, public facilities, rehabilitation and social services, through: increasing benefits under the disability grant; retrofitting public buildings, facilities and transportation systems to ensure that they are accessible to the differently-abled; expansion of special projects for persons with disabilities, aimed at providing skills training, economic empowerment and employment; and expansion in support of institutions that provide special care to the differently abled, such as the Grenada Council for the Disabled, to allow them to provide diagnostic, therapeutic, rehabilitation and related care. The latter two actions will be informed by a baseline study of persons with disabilities which will determine the nature and prevalence of disabilities in Grenada.  Senior Citizens The social development and social care strategy will also seek to care and provide for the aged and protect their rights. The following initiatives will be pursued as priorities in the GPRS: i. Strengthen legislation in support of protection, health care access, physical and social needs of senior citizens; ii. Gradually expand the benefits available to old age pensioners; and iii. Enhance the Senior Citizen’s portfolio in Ministries responsibility for families.  Welfare A society of aspirations and opportunities will be incomplete if the GoG fails to address the needs of the country’s welfare recipients. In this connection, the Government will seek to: Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 82 i. Strengthen and expand existing welfare programs to include a broader range of services, such as food vouchers and health exemption cards; ii. Replenish the Social Investment Fund to provide additional resources for persons below the poverty line; iii. Strengthen the Child Welfare Authority; iv. Implement a “zero” tolerance stance on child abuse, domestic violence and violence against vulnerable persons; v. Implement the legislation for the protection of children; vi. Conduct a developmental needs analysis of children in state care, to develop strategies for intervention and support. Priority Area 3: Youth Development Youth are among the groups most affected by global economic and financial crisis which threatens to persist for the next three years. Strategic Objective 1: Technical and vocational education and training Therefore, formulating interventions which target the critical bottlenecks leading to youth disenfranchisement and poverty is paramount to charting a “pro-poor” growth and development strategy. The GPRS must be oriented towards: i. Supporting faith-based organizations, NGOs and other stakeholders in delivering youth-focused programs and interventions; ii. Supporting co-curricular groups and organizations; iii. Partnering with the private sector in providing on-the-job training (OJT) opportunities for youth graduating from academic institutions, and from all Youth Skills Development programs; iv. Financing options which empower youth to work for themselves by providing access to specialised business loans, start-up capital, technical assistance, entrepreneurial training, business support and business mentoring. This must be an essential component of the GPRS. v. Collaborating with the private sector and the donor community to provide resources to strengthen the institutional capacity to address at-risk youth; vi. Establishing a new institution for at-risk youth and young adults which fills the gap between adolescence and young adulthood (18 and 21), left by existing institutions; vii. Providing counselling and establishing support networks for youth confronting the challenges of adulthood; and Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 83 viii. Completing the rehabilitation centre at Bacolet for juvenile offenders. The success of the skills development interventions, such as the Government-led IMANI Program, suggest the need to first evaluate the areas of coverage, and extension of the Program to the areas in strong demand by the private sector. The provision of certification, such that these graduates are eligible for jobs throughout the Region, is also a logical extension. Specifically, intervention should: i. Limit duplication by working through established programs at existing institutions and collaborating with other partners to develop additional programs and facilities critical to youth; ii. Partner with the private sector to introduce skills training programs geared towards the development of “well-rounded” youth; and iii. Work through the existing institutions, (6 TAMCC Campuses, Youth Training Centres, schools and community centres, among others) in delivering youth skills and apprenticeship programs. These Centres will: be inter-connected through the ICT strategy; and educate youth in personal development skills, basic literacy and numeracy, and occupational skills, such as plumbing, welding, construction carpentry, food preparation, garment construction, small appliances, auto mechanics, computer literacy, sport, culture and agriculture, seamanship, and skills pertinent to the yachting industry. Strategic Objective 2: Certification and Labour mobility The World Bank (2004) indicated that skill shortages have been a key constraint on enhancing competitiveness among OECS Countries. In the past decade not much has improved for the Member States of the OECS, including Grenada and critical skills shortages continues to stymie the potential of these countries to spawn industries that would form the foundations of their “New Economy”. These constraints continue to be binding on Grenada’s growth and development, and therefore expanding the Country’s educational and training systems to meet the new human resource needs of the industries and services critical to the emergence of the “New Economy” is an urgent priority. Anecdotal evidence suggests that for Grenada even in a context of unprecedented recession, critical shortages exist in both technical and managerial occupations. Still there are a number of dynamic occupations which offer excellent labor market prospects both in domestic and regional labour markets; these include occupations such as business services, personal services, and tourism and hospitality services. Rewarding labour market prospects also exist for high demand occupational skills Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 84 including; welders and fabricators, electricians, construction skills, sales representatives, technical/skilled persons, data entry clerks, among others. Extending skills training to better prepare the work force for the emerging opportunities also requires that focus be given to work ethics and attitudes. This is particularly relevant to the services-oriented occupations and skills related occupations, or to the emergence of a new services economy. Interestingly, virtually all CARICOM countries experience high unemployment coexisting simultaneously with skills shortages. This feature is not surprising given the segmented nature of the labour markets within the Region. The labour mobility regime in the Region was intended to assist with the resolution of this problem, which is not unique to small economy archipelagic States. An essential aspect of the freedom of movement regime is the ability for the labour force to move in search of opportunities without the requirement of additional certification requirements. Evidently myriad approaches will be required in addressing the issue of certification for labour mobility. At the national and sub-regional level, it will be important to identify the shortages of skills, recognizing that these skills shortages would occur in several industries and occupations unless steps were taken to avoid them. These skills shortages have to be tackled programmatically to gain, and or maintain the countries’ economic edge in a globally competitive world. Certification will be critical in ensuring that persons who have been prepared in the various fields are properly certified to benefit from the existing market opportunities. There will need to be a major focus on developing and delivering technical and vocational training and training in the high demand occupations. It will be important to target these programmes toward youth. Already a large array of programmes has been developed by the Caribbean Examinations Council, which could yield easy wins for the Country. Supporting the certification agency to better assess and certify graduands will continue to be a critical action. Financing or underwriting the cost of programme delivery within a sustainable model for financing will also be important, particularly in the outer parishes. The use of smart partnerships in addition to using ICT will constitute essential elements of such a sustainable financing model. A diplomatic engagement strategy will need to be deployed to expand the categories qualified to move under the CARICOM labour market regime. Issues such as contingent rights will be crucial in ensuring that this labour mobility occurs. In order to effectively address the issues which attend to certification, labour market preparedness, and lab or mobility, an Inter-Ministerial and Public–Private coordinated approach will be required. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 85 Priority Area 4: Gender Equity Gender inequity and inequality also account for a large component of social marginalization and poverty among women, youth, children and the elderly. The reality is that the institutions of Caribbean society have not been conducive to dynamic social mobility nor economic change. Increasing the role of women in Government will be important to facilitate their participation in decision making and policy implementation. In pursuit of this priority area, the GoG shall seek to: i. Re-commit to implementation of the National Gender Policy which contemplates special measures to achieve greater balance in the representation of males and females; ii. Discuss the implementation of Paternity Leave; iii. Encourage a more family-friendly work environment via such measures as day care centres and after-school facilities for Government employees, and encourage the private sector to provide similar facilities for their employees; iv. Establish programs through the Gender Affairs Division and in collaboration with other organizations, for women to develop and enhance their leadership skills; and v. Strengthen legislation and enforcement to combat domestic violence and sexual harassment at work. All these will be encapsulated into and implemented through the two Strategic Objectives, namely:  Strategic Objective 1: Mainstreaming gender  Strategic Objective 2: Policy intervention to support gender equality Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 86 6.4 Thematic Focus III: Reducing Vulnerability Priority Area Strategic Objective (s) 1: Comprehensive disaster risk reduction and climate change adaptation 1.1: Climate- and disaster-proofing development initiatives. 1.2: Stronger Collection, analysis and use of climate and disaster related data and impacts 1.3: Public Education Programming to build a culture of safety and resilience at all levels 1.4: Stronger disaster preparedness for effective response at all levels 2: Sustainable Natural Resource Management 2.1: Sustainable Land Management 2.2: Strengthened Community Co-Management 3: Improved Human Settlements 3.1: Improving Housing Availability and Access 3.2: Improving Tenure Security and Land Markets 3.3: Increased Environmental Health 3.4: Urban Renewal Vulnerabilities emanating from natural forces such as droughts, hurricanes, floods, landslides and sea surges not only surpass, but also significantly contribute to Grenada’s economic susceptibilities. Climate change is an additional burden for the Grenadian economy. In the Global Climate Risk Index 2014, Grenada was ranked 15th out of more than 170 countries. It is estimated that sea-level rise of 1 meter places 73% of Grenada’s major tourism resorts at risk and an estimated 3 percent of agricultural lands could be lost and incur annual costs of US$4 million in 2050. Maurice Bishop International Airport is considered the most vulnerable airport in the CARICOM region with regards to sea level rise. Grenada’s economy depends heavily on its natural environment. Grenada’s main economic pillars - fisheries, agriculture and tourism - heavily depend on healthy ecosystems. The natural environment provides important livelihood opportunities for low-income groups, and in addition, it acts as a natural buffer against the destructive forces of natural hazards and climate change. This in return reduces recovery and reconstruction costs. Therefore, ecosystem-based interventions play an important role in Grenada’s adaptation efforts. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 87 Grenada is located to the north of Trinidad at a latitude of 11 58’ N and 61 20’ W longitudinally. This location exposes it to the annual hurricane threats that visit the region during the second half of the calendar year. The threat is significant, as was demonstrated by Hurricane Ivan (2004), when the damages sustained exceeded 200% of the island’s Gross Domestic Product, only to be aggravated by a devastating Category 3 Hurricane Emily in 2005. While natural hazards cannot be stopped, the negative impacts of climate change and extreme events can be reduced. The challenge for the island is to pursue a type of development, especially infrastructural, that can withstand natural forces and minimize the premature losses of established investments. It is also important to examine the potential for developing insurance schemes that can eliminate or diffuse the financial costs of natural disasters. Pro-active and comprehensive disaster risk reduction and climate change adaptation which cuts across several sectors is a pre-requisite for sustainable development in Grenada. Due to the range of natural vulnerabilities mentioned above, the nation’s environmental management agenda must comprise a comprehensive portfolio of development programs that includes: i. Climate Change Mitigation. ii. Climate Change Adaptation and disaster risk reduction, with a strong focus on ecosystem-based approaches. iii. Elimination of persistent pollutants and agrochemical substances. iv. Land degradation prevention measures. v. Integrated Coastal Zone Management and fresh water eco-system protection. vi. Conservation and sustainable management of biological diversity. Grenada must continue to be an active player in the regional organizations – CARICOM and the OECS. Regional developments have assumed a character that clearly points to the fact that Grenada, like other regional states, will continue to enhance its national development through its participation in regional initiatives. For example, the OECS Energy Regulatory Authority Project (ECERA), when fully implemented should lower production costs and make regional industries and businesses more competitive. Two other such projects are the “Reduce Risks to Human and Natural Assets Resulting from Climate Change (RRACC)” Project and the “Climate Change Adaptation and Sustainable Land Management in the Eastern Caribbean” Project which are both managed by the OECS Secretariat. In addition, an increasing amount of international funding for climate change adaptation projects has been provided to Grenada in the recent past. These include the World Bank’s Pilot Programme for Climate Resilience (PPCR), the German-funded Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 88 Programme “Integrated Climate Change Adaptation Strategies in Grenada” (ICCAS) and the regional project “Coastal Protection to Support Adaptation to Climate Change Adaptation in Caribbean Small Island Developing States”, funded by the German government. Another recently initiated project is the “Building Capacity for Coastal Ecosystem-based Adaptation in SIDS” managed by the United Nations Environment Programme. In the face of the December 2013 flooding disasters in St. Vincent, Saint Lucia and Dominica, CARICOM is actively pursuing the establishment of a Climate Fund for the CARICOM. The developmental advisory role of the Eastern Caribbean Central Bank (ECCB), in addition to its central bank functions for the Eastern Caribbean States, speaks to the symbiosis between national development and regional development. In brief, the relevance and utility of Grenada’s membership to the various regional organizations will be defined by the extent to which those relationships support and encourage overall regional development and national development, in particular. Priority Area 1: Comprehensive climate change adaptation and disaster risk reduction Like the rest of the Caribbean, Grenada is vulnerable to several different types of natural hazards. Grenada is confronted with frequent and continuous exposure to low intensity natural hazard events. These hazards include floods, landslides, tsunamis, storm surges, earthquakes, hurricanes, volcanoes and fires. In addition, slow changes due to climate change, such as sea-level rise, increased temperature, longer dry periods, less annual rainfall and more intense rainfall are expected to affect all aspects of Grenada’s economic landscape including: human settlements, infrastructure, agricultural production, food supply, water supply, public health and tourism. Strategic objective 1.1: Climate and disaster proofing present and future national development activities by requiring a risk analysis of all ongoing and new development initiatives. Reducing the negative impacts of extreme natural hazards, droughts, hurricanes, floods and earthquakes, and climate change cannot be accomplished by a single agency. A systematic risk management approach in planning and implementation is critical for minimizing the damaging effects of climate change and disasters on the country’s infrastructure, built environment and communities. Eradicating poverty in Grenada must also endeavour to integrate climate change adaptation and disaster risk reduction considerations into projects and policies from the time of their conception. This would entail the institutionalization of a new requirement by the government that a disaster and climate change risk analysis becomes a mandatory part of the feasibility analysis of all new projects. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 89 Strategic objective 1.2: Strengthening the collection, analysis and use of climate and disaster-related data and impacts. The starting point for reducing climate change and disaster risks and for promoting a culture of resilience lies in the knowledge of the hazards, and the physical, social, economic and environmental vulnerabilities to disasters and climate change that Grenada faces, and of the ways in which hazards and vulnerabilities are changing in the short and long term. Collecting, analyzing and ultimately using data on climate and disaster vulnerability provides the basis for informed decisions. Over the past decades, more and more disaster-related data has become available; however, climate change projections for Grenada need to be updated. In addition, the collection of data and information on vulnerabilities, including the conditions of social and environmental assets (e.g. beach profiling, coastal and terrestrial ecosystem assessment and mapping, etc.), needs to be undertaken in a structured and continuous manner. Strategic objective 1.3: Public Education Programming to build a culture of safety and resilience at all levels Hurricanes Ivan and Emily have explicitly demonstrated the contribution of human action to the creation of disasters. This means in reverse, that the losses and damages caused by natural hazards can be reduced, and at times even prevented. By shifting the responsibility for risk reduction and adaptation from government agencies to society at large, the attainment of sustainable disaster resilient communities will become a reality. The negative impacts of natural hazards and climate change can be substantially reduced if people are well informed and motivated towards a culture of prevention and adaptation. This objective is aimed at strengthening the knowledge base on disaster and climate change at all levels of society, with special emphasis on decision makers and the general public. It is envisaged that this will result in more informed decision-making and in increased public support for climate change initiatives. In order to support education and awareness-raising, concrete climate change adaptation measures with a strong focus on eco-system-based approaches will be implemented at the local level in Grenada, Carriacou and Petite Martinique. These pilot projects will tangibly demonstrate to communities how vulnerabilities can be reduced. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 90 Strategic objective 1.4: Strengthen disaster preparedness for effective response at all levels Reducing Vulnerabilities also requires a high degree of coordination of the agencies and bodies engaged in defending against man made threats, as well as those emanating from natural disasters. While the remit of these bodies/agencies to act individually is well established, a legal framework is required to guide cooperation and pre-emptive action, as well as recovery and reconstruction. The National Security Act is the legal framework that will coalesce the actions of the various state agencies and apparatus to prepare for and to defend from threats to the country’s national security. This will provide for the establishment of the National Security Council (NSC) to co-ordinate (in a structured and comprehensive manner), the security services and resources of the State in times of National Emergency or disaster, as well as provide for the treatment of other national security matters. Such legislation exists elsewhere in the Caribbean and the Prime Minister will be designated as the Chairperson of the NSC. Priority Area 2: Sustainable Natural Resource Management Sustainable economic and social development is premised on a deliberately rational approach to the management of the nation’s natural and environmental resources. Sustainable development embodies integration, as well as understanding and acting on the complex interconnections that exist between the environment, the economy and society. This is not playing one issue against the other, but recognizing the interdependent nature of these three pillars. Sustainable development is a key element of Grenada’s “New Economy”. In Grenada, like the rest of the OECS, Government and Civil Society have become more vocal and active in advocating policies and undertaking actions to arrest the degradation of fragile ecosystems, over-exploitation of scarce natural resources, the curtailment of upstream land use practices and the unplanned and uncontrolled expansion of coastal developments. There is recognition that negative natural resource practices must not compromise Grenada’s ability to produce goods and services for national investment, consumption and trade in a sustainable manner now and into the future. Strategic Objective 2.1: Sustainable Land Management The most recent attempts at mainstreaming sustainable land management into national development with capacity building activities have occurred primarily within the agricultural sector, and came about under a project funded by the Global Environment Fund (GEF), United Nations Development Program (UNDP) and the GoG in Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 91 200912. The long-term goal of the project is to ensure that the agricultural, forest and other terrestrial activities in Grenada, promote sustainable ecosystem productivity and ecological functions while contributing to environmental economic and social well being of [Grenada] (FAO, 2008). Another relevant project is the “Climate Change Adaptation and Sustainable Land Management in the Eastern Caribbean” Project which was launched in 2014 and is funded by the European Commission and managed by the OECS Secretariat. Implementation of a public awareness and education strategy on land degradation and sustainable land management is central to combating the problem of degradation in Grenada. According to a 2008 study, 64% of the interviewees claimed that they had no knowledge of land degradation and 52% knew nothing about sustainable land management. Although farmers were exposed to more than 2.5 times more training than the non-farmer participant, farmers were reported to have had less knowledge than other groups. Notwithstanding that significant public awareness gap, the proportion of protected terrestrial and marine areas has been increasing since 2000, through the establishment and management of the new Marine Protected Areas (MPA) such as the Beausejour Moliniere MPA, the Woburn MPA and the Oyster Bed/ Sandy Island MPA in Carriacou. There are currently new initiatives underway to delineate an MPA at Grand Anse Beach. Allied to this innovative concept is the requirement for the declaration of Carriacou as a special land ecological zone, with special emphasis on future agricultural development, plant and animal quarantine systems and near coastal areas protection systems. In addition to the above-mentioned, as part of the “New Economy”, Grenada needs to address the issue of invasive plant and animal species, as well as illegal sand mining and their impacts, in the context of land degradation, in its combative response to that phenomenon. This would give special importance to Carriacou as a protected, non traditional, relatively pest-free agricultural area, but not to the exclusion of other economic sectors. Strategic Objective 2.2: Strengthened Community Co-Management The successful strengthening of community co-management in Grenada is a function of a marriage between properly focused sustainable land management, public awareness and educational initiatives, local agencies with the strongest fielding capacities and the entities that have the strongest community grounding. 12 Grenada has a total land area of 26,492 hectare (65,463 acres) but only 2.5% is suitable for agriculture (UNDP). Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 92 Continued support to community-based organizations like the Grenada Network of Rural Women (GRENROP), the Clozier Young Farmers’ Cooperative (CYFC); commodity organizations, such as the Grenada Cooperative Nutmeg Association (GCNA), the Grenada Cocoa Association (GCA) and non-governmental organizations such as the Agency for Rural Transformation (ART) and Grenada Community Development Agency (GRENCODA), would certainly advance community co-management. However, within the new development paradigm dispensation, the “New Economy”, the expertise and experiences of the Forestry Department will have to play a leadership role in the strengthening of the community co-management system, as well as the management and protection of mangrove forests - one of Grenada’s most important natural barriers against the negative impacts of climate change at the coastline, such as sea-level rise or intense storm surges. The existing Forestry Policy (2001) is the most comprehensive framework on sustainable land management and the best local example of community co-management at work. This policy, coupled with the expertise and experience resident in the Forestry Department13, provide the best foundation for the replication of co-management models for the furtherance of good practices in a sustainable land management regime. One such regime is the use of ‘social mapping’ as a mechanism for improving co-management in a sustainable land management system. ‘Social mapping’ is the active and democratic involvement of stakeholders in deciding on best uses for land resources, whether it is agriculture, agro-forestry, livestock development, tourism, soil and water protection or any other industrial undertaking. In addition to establishing the integrity of the utilization of the natural land resources, a basis will be created for the democratization of socio-economic development that could be reflected in the observance of co-management agreements – a new feature under the “New Economy”. Priority Area 3: Improved Human Settlements Hurricanes Ivan (2004) and Emily (2005) exposed the vulnerabilities of the national housing stock. However these events presented the nation with two inescapable challenges. Firstly, public and private housing providers became more conscious of the need to approach housing construction in the context of established building standards codes, utilization of improved building materials and particular respect for sustainable land use principles. Secondly, the further pauperization of certain groups in society, compelled government to embark on a series of housing programs that hopefully 13 Currently, the Forestry Department is the focal point for the Convention on Biodiversity, the Convention on Wetlands (RAMSAR), the United Nations Convention to Combat Desertification (UNCCD), and the Convention on International Trade in Endangered Species of wild life Fauna and Flora, among others. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 93 would improve the housing stock for their accommodation. Government’s financial incapacity to provide on its own; propelled it to seek housing and settlement assistance from external bilateral partners. Strategic Objective 3.1: Improved Housing Availability and Access A successful approach to improving the availability and accessibility to housing requires a response to a myriad of different groups and housing needs. The housing solutions would have to be a hybrid of public and private initiatives. However, in the short to medium term, Government will have to pursue an aggressive Program that would rely on government and grant financing. In that regard, Government has outlined a comprehensive housing approach in its 2014 Budget presentation. The elements of that Program are, inter alia, i. Significant expansion of the Housing Repair Program for those who are desirous of making strategic improvements to their existing homes. ii. Creation of a Housing Soft Loan Program to be made available to clients who have the capacity to finance the award of a loan of EC$25,000 or less. iii. The creation of Housing Facility for the Socially Displaced. iv. Expansion of the People’s Republic of China-financed Housing Settlements Program. v. The Grenada Housing Authority’s Housing Loans Program. vi. Private-Public Partnerships for housing solutions that are cost-effective and building codes compliant. All measures need to be building codes compliant and should consider the requirements of climate smart building approaches to ensure resilience against negative climate change impacts. While Government will continue to intensify these programs in response to its long- term housing problems, it intends to use these housing solutions as necessary elements in its mechanism for minimizing the negative effects of the rural-urban drift. Strategic Objective 3.2: Improved Tenure Security and Land Markets According to UN-Habitat, land tenure in Grenada is characterized by legal pluralism and a high degree of informality. Hurricane Ivan did not affect the existing land tenure relationship [legal or illegal]. Land tenure insecurity is intimately related to the national housing challenges, which manifests itself in squatting on crown lands and, at times, private lands. While the mentioned housing solutions will provide a partial answer to land tenure insecurity, other initiatives such as the following are worthy of consideration: Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 94 i. A proper and practical review of existing laws aimed at making the process of regularizing land tenure on family properties reliable and affordable. ii. Implementation of a government project specifically aimed at regularizing existing informal settlements. iii. The formulation of “do-no-harm” to land rights and interim measures for the facilitation of disaster relief interventions. iv. The categorization of lands according to land use criteria in order to discourage prospecting and the unsustainable transfer of lands into inappropriate uses. Strategic Objective 3.3: Increased Environmental Health Grenada is guided by the WHO’s definition of ‘Environmental Health’ “… those aspects of the human health and disease that are determined by factors in the environment. It also refers to the theory and practice of assessing and controlling factors in the environment that can potentially affect health.” By extension, it includes, in addition to pathological effects from chemical and biological causes, the effects on well-being by social and cultural agents like housing, urban development, land use and transportation, among others. In this definitional context, all the initiatives pursued by Government in its social and human resource development programs and infrastructural and disaster reduction initiatives are contributors to improved environmental health. Improvements in health and the delivery of health services will be enhanced because of the two mainstream initiatives that Government has agreed to undertake. The first mainstream initiative is an aggressive expansion and modernization of the health infrastructure (both hard and soft) to improve the physical environment in which health services are delivered. Secondly, the conscious focusing on a primary and preventative health care Program that would complement the infrastructural investments while, simultaneously, improving the returns on the investments in environmental health. Strategic Objective 3.4: Urban Renewal The character of Urban Renewal in the “New Economy” is presented from two definitional but developmental perspectives. One is the broad process in which attempts are made to improve a geographic space through the use of public financing that hopefully empowers the citizens in that geographic space to improve their socio-economic well-being. In fact, it is often seen as the public responsibility of Government. In micro-states like Grenada, urban renewal could literally mean an attempt to transform the entire society in response to a protracted period of economic stagnation. Thus, the potential transformational intent of the Public Sector Investment Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 95 Program (2014-2016), if successfully transferred to the major urban centres in Grenada, could make the claim of urban renewal a reasonable and viable one. The second and more traditional definition also applies to another aspect of urban renewal developments in Grenada. The commitment of Government and its willingness to attract investment for the development of the St. David Town Centre is the most explicit support for an ‘Urban Renewal’ project. The realization of that urban development will not only provide St. David with a town, but could also provide a new and unique template for town development in the future, which should also consider climate and disaster smart building and town planning approaches. 6.5 Thematic Focus IV: Governance, Justice and Citizen Security Priority Area Strategic Objective (s) 1: Human Security 1.1: Law and Order 1.2: Law Enforcement Reforms 2: Governance 2.1: Constitutional Reform 2.2: Local Government 2.3: Consensus Building 3: Rural, Community and Parish Development 3.1: Promoting Vibrant and Active local communities 3.2: Promoting and Developing Growth Poles 3.3: Equitable Spatial Distribution of Growth Poles 4: Institutional and Legal Reform 4.1: Transparency in Public Procurement 4.2: Integrity in Public Office 4.3: Gender Equity and Welfare Legislation Priority Area 1: Human Security The GoG is cognizant of the critical relationships between economic recovery, growth, and justice and citizen security. To this end, the legislative agenda will include reforms and measures to transform and modernize the justice system and its key institutions by which, and through which, any reforms are to be effected. Grenada’s justice system can be divided into the following three arms: i. Law Enforcement (RGPF) ii. Court System (Magistrates Courts and High Court of Justice) iii. Correctional System – H.M. Prisons Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 96 Strategic Objective 1.1: Law and Order The Establishment of a Law Reform Commission comprising skilled persons in law and legislative reform, as well as the inclusion of various persons from civil society, will be an urgent priority. Such a body will do much to enhance public participation in the holistic administration of justice. There is also some need for urgency in the modernization of the Court system. Attention needs to be placed on improving the efficiency of the Supreme Court Registry and the High Court, in particular, especially with respect to processing of litigation. Additionally, attention will be paid to human resource development within the Court system. The situation confronting under-staffing of Judges and registry personnel, court reporters or stenographers acts as a critical constraint to the operation of the justice system. Infrastructure and equipment modernization also needs to be addressed. There is an urgent need to create specialist Courts to file matters that require separate address viz: i. Industrial Court ii. Family Court iii. Drug Offences Court  Justice, Law and Order Treating with the issue of criminal offenders, a large number of who are youth offenders will be important given the imperative of ensuring that such persons are successfully reintegrated into society. Accordingly, building rehabilitative and restorative programs into the correctional system will be critical in ensuring that criminal offenders, including youth offenders, achieve their true potential as contributors to the development process. To this end, the following reforms will be pursued over the next five years – i. Prison Review Board will be fully appointed and made functional. ii. The Juvenile Act will be amended to associate it with a specialized Court and specific offences and a separate correctional facility other than the Prison. iii. The Criminal Code and the Criminal Procedure Code must be revised with a view to reviewing sentencing options for the Courts in certain cases. Strategic Objective 1.2: Law Enforcement Reforms There is an urgent need for a strategic revisiting of the national security apparatus of our Country. Urgent actions include the following Law Enforcement Reforms: Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 97 i. Modernize legislation and regulations governing the Royal Grenada Police Force (RGPF) as part of a broader reform of the criminal justice system. ii. Undertake repairs to the existing Police Stations across the country and the identification of new sites for new Police stations. iii. Revisit and rationalise the benefits package of police officers and other security personnel. iv. Substantially increase the scholarships and training opportunities for all police officers, in management, ICT, forensics, and other areas critical to the efficiency of the Police Force, and to the dispensing of law and order. v. Equip police with modern communication facilities, audio and video surveillance, monitoring equipment, radios and recording devices. vi. Provide equipment and raw materials required by the Police Force to effectively undertake their functions. In addition, a major thrust will be organizing the security forces for greater synergies and operational effectiveness. Priority will be given to capacity building in the form of provision of greater resources to study and understand crime patterns and behavioural issues linked to crime and criminality. Collaborative relationships between local law enforcement and international counterparts in the spheres of technical assistance, training, modern equipment and grant programs will be pursued and supported. Infrastructural upgrading of the Forensic Lab facilities and increasing capacity to meet internationally accepted standards will be germane to the capacity building agenda. The nation’s overseas Diplomatic Representations will play a role in fostering bilateral exchanges and cooperation with receiving states on surety arrangements, particularly in the area of infrastructure support, training and access to technology.) The conduct of a Management Audit and Strategic Needs Assessment of the National Security Apparatus having regard to the threats, risks and responses will underpin a new Strategic Plan for the development of a more responsive, modern and relevant National Security Apparatus and arrangements, which will ensure that Grenada (land and sea), remains among the safest countries in the world.  Infrastructure Support - Reform to Courts and Registries The GoG has identified the work required to maintain and upgrade the physical infrastructure and human resources at the Magistrates’ Court and the Supreme Court. There is a commitment that needs to be supported to strengthen the management and Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 98 knowledge capabilities of the Staff of the Country’s Registries and of the Supreme Court. By way of physical infrastructure, there is a commitment to refurbish the existing Magistrates’ Courts and to seek to create two specialist courts for family issues (Family Court) and industrial issues (industrial Court). Priority Area 2: Governance Strategic Objective 2.1: Constitutional and Legal Reform Grenada’s future growth, transformation and poverty reduction will require far reaching reforms in the legislative agenda, including constitutional reform. While poverty levels are strongly determined by diverse circumstances linked to particular context, ample evidence exists on the positive causality to slow growth and rising poverty from weak economic structures at the family level, crime and social disorder and limited access to impartial and equitable avenues to justice.  Constitutional Law Reform Constitutional law reform will be the central element of the overall Governance process. This reform process will involve the establishment of a Select Committee of constitutional law experts and other experienced personnel who will offer written recommendations to the Cabinet. The constitutional law reform process will cover important areas such as forms of government (constitutional monarchy or republican etc.), citizenship, nationality and regulation of Parliament. Other areas of immense importance are the executive powers of Cabinet, the authority of the Prime Minister and powers of recall. The establishment of an Electoral Commission as a constitutional authority to provide a mechanism for independence and impartiality in the electoral process is another innovation for consideration. Issues to be determined by the new Constitution will also include whether or not to accede to the Caribbean Court of Justice as the final appellate court. A draft Constitution has been prepared and several consultations have been held with participation of civil society and Non State Actors. The task ahead is to deepen and complete the consultations and to make arrangements for the conduct of a National Referendum.  Employment Laws Unleashing economic growth and reducing poverty will also involve the enactment of legislation to remove workplace gender-based discrimination. The country’s Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 99 employment laws will also be amended, following broad-based consultation, perhaps with the end goal of establishing an Industrial Court.  Property Law Bringing unemployed and under-employed assets into gainful economic activity over the short to medium term is a major thrust of this GPRS. In several instances, the familial ownership of land and other assets acts as an impediment to business enterprise. Enacting a system of registered title and conveyance, as well as other real property reforms will be an imperative in placing these assets at the service of growth and poverty reduction. Grenada will also need to enact legislation to introduce a modern and secure means of monitoring and regulating the transfer of shares and other securities and assets, other than land, and the taking of security on such assets by external interest. A second raft of property reforms will be required in order for Grenada to benefit from the global trends in property ownership, such as time share, fractional ownership, condominium ownership, among others, particularly since Grenada has only recently enacted the Grenada Economic Investment Program (GEIP).  Enabling Domestic Market Regulation As a primary producer of services, Grenada will quickly undertake legislative reforms that entrench important domestic regulations. The legislative reforms which must be enacted at the domestic level will extend to both goods and services, with far-reaching implications for banking and finance, including Internet Banking, capital market operations, alternative forms of financing, restructuring and reorganization, insurance, insolvency and bankruptcy, off shore financial services, and consumer protection. Prudential safeguards will be supported by reforms emanating from the ECCU, as part of the Monetary Union, and from domestic initiatives such as reform to the FIU Act. The enactment of fair trade and business practices legislation, competition legislation and procurement legislation will take cognizance of the unfolding agenda in these areas at the sub-regional level.  ICT Legislation The GoG has begun to introduce legislation in the area of ICT. Legislation on cyber crimes and electronic defamation has also been addressed. Other important legislative items such as unlawful content, privacy, internet banking, piracy, consumer protection, intellectual property rights and infringement remain to be treated. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 100 Strategic Objective 2.2: Local Government Currently, Grenada does not have local government, although, a limited form of local government for Carriacou and Petite Martinique, is a key aspect of the governance architecture provided for in the Constitution of Grenada of 1974. While it is explicitly mentioned for Carriacou and Petite Martinique, there is an appreciation that at its core, local government is concerned with improving the linkages between all sections of the population and the central government, thus providing for greater empowerment and opportunities for the populace. The GoG intends to first effect the arrangements pertaining to the introduction of local government in Carriacou and Petite Martinique, as a means of delivering quality services to these communities. There is an impressive exhibition of consultative engagement between government and the social and community partners on numerous issues of national significance. Government, in its 2014 national budget presentation, declared its intention to deepen the engagement by naming three social and non-governmental groupings to play a role in the monitoring functions of the Public Sector Investment Program (PSIP). This is yet another initiative in favour of improving governance in the governmental system. Those three committees/groupings are: i. Committee of Social Partners ii. Planning and Priorities Consultative Committee iii. Growth and Competitiveness Council Government has indicated its intention to embrace constitutional changes pending continued consultations and a referendum in 2014. Government will use that process and opportunity to define the character and nature that improved local governance will take. At the same time, the requirement may not be to create new organs and processes, but rather to intensify and deepen the existing processes, structures and relationships. Strategic Objective 2.3: Consensus Building  National Unity In the exercise of sovereignty, Grenada as a small developing country faces challenges equal to those of states that are larger and more populous. This places a responsibility on the citizenry and the Government to be even more efficient with the limited resources, including its human resource available for development. Grenada too, has Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 101 endured an extra-ordinary epoch of political activism which pre-dates the country’s independence, which has fashioned laws and institutions in directions which are profound, yet often deeply misunderstood. Against this backdrop, creating modalities for broad societal consensus, while respecting the deep democratic traditions that have endured, will be an essential if the country is to expeditiously respond to the ongoing debt, growth and poverty reduction agendas. In forging a consensus policy agenda, the GoG will establish a National Unity Commission to recommend approaches and concrete actions that may be undertaken in the creation of a harmonious society. The National Unity Commission will be central to forging consensus on key policy issues at national, sub-regional (OECS), regional (CARICOM) and global levels. The work of the Commission will transcend political parties, and will be important in avoiding the policy-reversals often associated with changes in Government. The National Unity Commission therefore will be successful when national unity is mainstreamed in the approaches and institutions of Government and the private sector. Inter alia, key benchmarks for monitoring and evaluation need to be urgently determined.  Labour and Industrial Relations Given the nature of the Grenadian economy, the relationship with labour and more generally industrial relations, holds far-reaching implications for the success of the GPRS. The revelation by the IMF, 2012 Article IV Consultations Report that unit cost of labour in Grenada is high and rising is noteworthy. The implication for industrial relations will be a shift towards an increased focus on increasing productivity, while advancing worker rights. Only when common ground exists amongst the stakeholders will a growing Grenada economy provide the sustainable jobs and opportunities for the citizenry. In order to reap these growth and employment dividends, within the context of the dynamic changes spawning the “new economy”, cooperation and collaboration, rather than the adversarial and confrontational relations, have to be necessary conditions for satisfaction. In crafting Grenada’s “New Economy”, deep reflection on new institutions for industrial relations and industrial cooperation will be required. The new institutional modalities will need to take account of the changing nature of job creation, arising from a heavy dependence on entrepreneurship and self-employment. Sustained improvements in the labour relations climate in Grenada, consistent with the prerequisites of the “New Economy”, will require concerted actions on several fronts legislative, institutional, capacity, cultural, among others, by all social partners. The Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 102 engagement with the Trade Union Movement, as a key stakeholder in policymaking, will therefore be crucial. So too will the actions aimed at strengthening the Division of Labour, Ministry of Labour, and other confidence building actions which engender a new ethos in industrial labour relations.  Social Protocol The GoG has prioritized the development of a Social Protocol. This “Protocol” is an indispensable element of the “New Economy” and will be aimed at improving national productivity and a sharing of the burden of adjustment, particularly wages and prices (where possible), during the three year (3) economic recovery period defined by the IMF Home Grown Structural Adjustment Program. The social partners are now expected to engage in discussions with their membership and provide feedback for the finalization of the Memorandum of Intent (MOI), which will give effect to the Social Protocol. The action plan for the Committee of Social Partners will require strong technical support over the period of the SAP Program.  Committee of Social Partners In the absence of an elected Parliamentary Opposition, the Governance arrangements have been challenged to create innovative modalities for balanced consensus building. The innovation of the Committee of Social Partners, comprising representatives from the Grenada Trade Union Council, the Grenada Private Sector Organizations, faith-based organizations, civil society organizations and the Government, offers a sensible, socially friction-neutral, and practical point of departure. The Committee of Social Partners derives its mandate(s) from consultations with constituents as well as other Groups and Organizations. The work program of the Committee includes the development and implementation of a Social Protocol as a strategic mechanism for the formulation and implementation of national policies, as well as developing participatory solutions on policy issues of national importance.  Growth and Competitiveness Council In the 2008 Throne Speech, the GoG stated its commitment to stronger economic management through the establishment of a Growth and Competitiveness Council (GCC), which will provide independent, expert, advice to the Cabinet of Ministers on matters related to national and global economic policy. It will also ensure that policy decisions and programs taken and pursued are consistent with Government’s economic goals. The GCC will also monitor the implementation of Government’s economic agenda and make suitable recommendations to the Cabinet of Ministers. The Council will therefore Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 103 play a lead role in monitoring the implementation of the GPRS as a platform for the restoration of fiscal and debt sustainability. The Cabinet of Ministers will appoint the Council and shall comprise a team of eminent persons drawn from the public sector, private sector and academia.  Revenue Enhancement and Waste Reduction Commission The GoG has established a Revenue Enhancement and Waste Reduction Commission comprising a cross section of persons from the public and private sectors to identify areas of waste in Government and to make recommendations for their reduction and/or elimination. This Commission will be chaired by someone outside of Government and will also be tasked with monitoring the implementation of those recommendations and reporting annually to Cabinet. Such reports will also be tabled in Parliament. There is a clear relationship between the extant GPRS and the achievements of the Revenue and Waste Reduction Committee (the more resources, which can be saved, the more resources would be available for growth enhancing and poverty reduction initiatives).  National Trade Policy Co-ordinating Committee (NTPCC) The GoG has established a National Trade Policy Co-ordinating Committee comprising representatives from the public sector, private sector and Non-Governmental Organisations. The NTPCC will cover the regional integration arrangements, CARICOM, OECS Economic Union, as well as the bilateral, pluri-lateral and global arrangement (WTO). The NTPCC will coordinate the country’s trade and commerce positions, across various disciplines, such as market access for goods and services, government procurement, intellectual property rights, investment, labour market mobility, trade and labour, trade and environment, trade facilitation, dispute settlement, among others. The NTPCC is tasked with analysing/ developing strategies and approaches and making recommendation to the Cabinet on policy direction consistent with the interest of the GoG. Following up on implementation is also an important aspect of the NTPCC’s work program. Priority Area 3: Rural, Community and Parish Development The proposed National Development Plan for the period, 2014-2016, has some common features across rural, community and parish spaces, as follows: i. People-focused and people-oriented. ii. Deep concentration on vocational and technical development of individuals. iii. Use of ICT to drive employment generation and community wealth creation. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 104 iv. Strong emphasis on self-employment and small business development. v. Demographic emphasis on youth (18-24) and women. vi. Wide but concentrated emphasis on health, sports and recreation, as drivers for improving human productivity. vii. Democratization of the developmental process and the encouragement of continuous consultation between stakeholders/beneficiaries and government. Government will continue to emphasize and deepen these characteristics of the development plan. Strategic Objective 3.1: Promoting vibrant and active local communities (MAP) Vibrant and active local communities continue to be the pillars of growth and development at the national level. For local communities to contribute to poverty reduction and increased incomes, balanced and sustainable regional and local development must be mainstreamed in policy dialogue. Such prioritization will hold implications for the governance process through: (i) devolution of the power of Central Government and empowering community-based and parish-based organizations and structures and (ii) greater emphasis on spatial and regional planning. Sustaining vibrant local communities will also require qualitative shifts in the approach to regional and parish development. The development of infrastructure, services and economic enterprise has been largely unplanned over the years, resulting in measurable disparities between urban centres and towns and rural areas. Consistent with its liberal market philosophy, the GoG intends to address the urban-rural divide through the provision of infrastructure and services throughout the country, such that these disparities, as they exist, are eliminated. In order to achieve balanced growth the Government will ensure the provision of critical public goods, such as electricity, roads, water, health services, ICT connectivity, emergency services, etc. Various types of financing modalities will be pursued by the Government, including Public-Private Partnerships (PPP), grant financing, and “user fees”, and encouraging private investment, including Foreign Direct Investment (FDI). In a deliberate break with the past, the approach by the GoG will not be to substitute market forces, or to replace private initiative or enterprise by “picking winners”. The shift in the approach by the Government towards balanced regional/parish development will be supported by a renewed emphasis on planning, environmental protection and empowerment of the citizenry. The GoG completed important national planning instruments that provide a framework consistent with the new direction for the development of parishes, as well as for closing Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 105 the development gap that presently exists between the quality of services and infrastructure among urban and rural centres. Among the more important plans are: (i) National Physical Development Plan: Grenada-Carriacou-Petit Martinique completed in August 2003 and approved by the Cabinet in 2004; and (ii) Physical Planning and Development Control Act, 2002. The National Physical Development Plan addresses only one of a twin of spatial planning objectives, i.e., planning and development of human settlements. The GOG intends to address the other main spatial planning objective — the management of the competing uses for land through the revision of the National Physical Development Plan. Strategic Objective 3.2: Promoting and developing growth poles In addition to the provision of critical ‘public goods’, the Government will use the most efficient modalities for the creation of additional infrastructure where these deficiencies represent binding constraints on the private sector. Several approaches will be used to properly target these opportunities for the public interventions capable of yielding the best outcomes. The GoG has identified six strategic sectors for economic growth and development: i. Health and wellness; ii. New agriculture and agribusiness; iii. New tourism and hospitality industries, including an emphasis on yachting; iv. Energy development and security; v. ICT and management; and vi. Other services (construction, cultural, financial, professional). Evolving dynamic local communities will be based on the development of these same six strategic sectors. Spatial planning, legislation and the development of a new regulatory framework, within which enterprises in the six strategic sectors can grow and thrive, will be required. Indeed, if public policy has benefitted from learning from the past, the systematic failure of approaches which seek to allocate industries to geographic areas, based solely on public priorities, is the central lesson. A fundamental shift needs to occur in land use, zoning, and planning, based on full consultations by the stakeholders. Strategic Objective 3.3: Equitable Spatial Distribution of Growth Poles Traditionally, development of service and manufacturing industries has been associated with the major towns, while agricultural production remained a rural activity. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 106 Even the earlier attempts to diversify the agricultural activity with a modest introduction of secondary industrial activities did not lead to those industrial units being located in the rural areas. The massive investments in farm roads infrastructure, also failed to transform the rural poles into centres of improved agricultural and agri-industrial developments. The new and concentrated developmental thrust, which is characterized by an emphasis on ICT and other enabling technologies, is destined to make every village, irrespective of location, a potential pole of development given that ICT is potentially the great equalizer. The increased infusions of financing for small business development by government, and the greater accessibility enjoyed by youth and women, are added drivers in support of a more equitable spatial distribution over the national growth pole. It is necessary for the National Training Agency and other national bodies, to ensure that the rural communities benefit significantly from the programs and courses in vocational and technical training and education. A modality for delivering business training and coaching, cost effectively and conveniently, to potential candidates in the rural communities will be pursued with vigour and purpose. Priority Area 4: Institutional and Legal Reform Strategic Objective 4.1: Transparency in Public Procurement The GoG in a previous PRGF with the IMF, committed to replacing the Public Procurement and Contract Administration Act No. 25 of 2007 Act, with new legislation. This work is currently ongoing and the expectation is that the enactment of the new legislation will bring greater efficiency and transparency in public procurement. Strategic Objective 4.2: Integrity in Public Life Legislation As a safeguard against corruption by persons involved in public life, two pieces of inter related legislation were passed in Grenada in 2007 – the Prevention of Corruption Act and the Integrity in Public Life Act. The main purpose of the Prevention of Corruption Act is to outline the offences, which may be committed by public officers, and to establish the related penalties. The objective is to dissuade public officers from becoming engaged in corruption. The main purpose of the Integrity in Public Life Act is to establish an Integrity Commission in order to ensure that integrity is continuously maintained in public life by demanding that persons in public life declare their assets, liabilities, income and interest in relation to property, and conducting relevant investigations where necessary. These laws were enacted consistent with the Government’s obligations under the Inter-American Convention Against Corruption. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 107 The Integrity Commission has not been able to function at its full capacity. The Members of the Commission have been appointed, and have benefitted from extensive training. However, the full operationalization of the Commission is still plagued by financing issues. Resolving and sustaining the remaining financing, which preclude the full operation of these items of legislation which are critical to Governance, remains a priority of the first order. Strategic Objective 4.3: Equity and Social Welfare Legislation Grenada, ratified the Convention on the Rights of the Child [CRC] in November of 1990, but, as the Grenada Constitution is silent on these issues, it is unclear what binding effect the Convention has in domestic law. However, since 1990, Grenada has passed several laws incorporating the CRC’s principles, including the 1991 Status of the Child Act, the 1991 Maintenance Amendment Act, the 1994 Adoption (Amendment) Act, the 1998 Child Protection Act, and the 2008 Child Protection Act. The Ministry of Social Development is responsible for providing counselling and other social services to children and families, including carrying out investigation of “at risk” cases. Grenada passed the Child Protection Act in 1998, establishing the Child Welfare Authority which works in collaboration with the Division of Social Services. The Ministry of Social Development has regulatory responsibility for the Child Welfare Authority. The resources and systems to strengthen the Child Welfare Authority are a necessary area of intervention. So too is the lack of adequate facilities to accommodate and treat “at risk” children and the accompanying legislation.  Matrimonial and Family Law The disproportionately high incidence of poverty in homes, which are headed by single women, as well as the statistical evidence of rising poverty among the youth requires multi-dimensional modalities of redress. From a legislative standpoint, there is a pressing need for reform and modernization of matrimonial and family laws, including special emphasis on maintenance and enforcement proceedings to make it consistent with the core value of the society and with acceptable international norms. Grenada will also introduce a Domestic Partnership or Cohabitation Act to remove the present legal disadvantages of unmarried women who cohabited for many years as a domestic partner and who are, at present, not entitled to strict legal rights as other domestic situations. Reforms will also need to be targeted at accelerating the processes associated with the juvenile justice system and rehabilitation in order to provide more humane consideration and treatment of juvenile delinquency. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 108 These elements are essential for good governance and national development. Without effective public sector governance mechanisms, gains achieved in all other Thematic Focus areas may not be sustained. Public Service reform will be an essential pre-requisite to guide, facilitate, monitor and maintain equity between economic recovery and growth imperatives and social development and poverty reduction initiatives. In addition to the elements described above, there will be the need generally, to undertake institutional and public service reform, including, inter alia, to: 1. Engage in a reform of regulatory and legislative systems to reduce transactions costs - use of IT and setting of standards for activities, boost overall productivity and facilitate business transactions (approvals, permits, licenses, rebates etc.) 2. Establish an incentives system in the public sector to create greater response in keeping with the requirements of reform and to boost labour productivity/performance. 6.6 Cross-Cutting Issues The GPRS isolates critical cross-cutting issues which are essential to establish the base for actions through the following four (4) thematic areas: 6.6.1 Human Resource Development (HRD) Human Development can be viewed as both a thematic focus, requiring specific interventions, as well as a classic cross-cutting issue, since it underpins all efforts to drive growth and reduce poverty. This issue, perhaps more than any other, requires genuine public-private-civil society partnership, as a vehicle to realise gains in both the equitable growth and social development agenda. Some key elements of HRD that must be addressed include: 1. Human Security and Governance, to improve the social/governance environment/arrangements within which businesses have to operate – reduction in criminal activities, removal of corruption. 2. Human Resource Development, to strengthen the educational system at the tertiary level to create a pool of skilled persons in technical and vocational areas (the missing middle problem in the labour market - 40 % of the labour force is uncertified, and the public service lacks mid-level persons). 3. Social Protection and Social Development, to strengthen social protection schemes to provide support for the vulnerable and poor. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 109 6.6.2 Human Health and Wellbeing The pursuit of healthy lifestyles requires the establishment of effective cross-sectoral linkages, among the economic and social sectors and groups, spanning from the community to the national level. The focus on health and well-being is aimed at supporting healthy life-styles and healthy choices throughout an individual’s life. It is buttressed by a primary health care system focus. A cross-cutting approach to healthy lifestyle brings into immediate focus the role of the agri-food system, sports, education, social systems and social institutions, ICT, etc. in the healthcare system itself. The target groups extend from infants to adolescence, youth and the elderly. The cross-cutting nature of interventions in this area will focus on: i) Enhancing collaboration with & support for groups & organisations in the development of cross-sectoral linkages between agriculture, sports, education, inter alia; ii) Effective modalities for collaboration among Ministries and community-based organization in providing adequate recreational facilities. iii) Public education campaigns to promote the consumption of healthy foods and healthy lifestyles; iv) An orientation to tackle the problem of youth obesity and substance abuse. . v) Work with Parent-Teacher Associations, Youth Groups, Faith Based Organizations & all other interested stakeholders to ensure that children are properly educated and equipped to make life long choices. Vi) Institution of measures to ensure that each primary health team has the appropriate skills & competencies to oversee the mental, physical, spiritual & social health needs of the communities. 6.6.3 Information and Communication Technologies (ICT) ICT is fundamental to building economic, social and environmental resilience and is therefore one of the key drivers of the New Economy. As a cross-cutting theme, three integrated approach to advancing ICT in the GPRS will be pursued. The first approach will be to: i) Mainstreaming ICT among the public sector institutions and Ministries, including e-government and providing more online services, and intensifying the use of the technology to reduce cost and enhance efficiencies (e.g. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 110 increasing access to resources such as was undertaken with the Laws of Grenada); ii) Supporting the use of ICT by the private sector, including through promoting the use of ICT inter-phase with the public sector for critical functions (payments, enquiries, accessing services, filing reports, satisfying regulatory and prudential requirements). i) Institutionalizing the use of ICT, integrating ICT at the primary and secondary levels, hospital, social delivery institutions, Customs and Excise Division, among others. iii) Encourage the use of ICT innovation and tools to improve the business efficiency, product offerings and marketing ii) Stimulating the emergence of ICT related fields of discipline and ICT oriented businesses. The approach will be to:  Contribute to the development of a Single ICT Space at the OECS and CARICOM levels, through enhancing the market and environment for investment thus improving efficiencies and exploiting opportunities with respect to telecoms/connectivity such as broadband development, lowering costs for consumers (e.g. data, roaming charges);  Improve the legal/regulatory framework including through Competition Policy, spectrum management, deepening use of technology to support research and innovation, stimulating new ICT business etc. ICT as a key driver of economic growth also requires that the populace become adept at the use and application of technology to their full potential. Quantum advances in productivity can occur in routine business functions, though the basis application of basis ICT technologies. The third approach is to make ICT a lived experience at the societal level, through:  Conceptualizing and delivering a “popular education” ICT strategy, particularly for groups which typically would be “locked-out” of the information technology, such as the elderly, at risk youth, among others.  Developing and resourcing ICT Centers of Excellence, where technology related disciplines such as web-page design, apps development, animation and other skills can be developed.  Implementing a public awareness strategy which highlights the use of ICT in the daily life of the population; Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 111 6.7 Monitoring Development: 1. Implementation strategy: Implement, monitor and evaluate agreed policies, programs, projects in a timely manner. 2. Coordinating Strategy: Establish a coordinating agency (national and regional levels) for growth and development initiatives. 3. Regional Integration Strategy: Promote greater regional cooperation as part of a production integration process using the Strategic Plan for Regional Development (SPRD) as a base for regional development. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 112 7. IMPLEMENTATION, MONITORING AND EVALUATION 7.1 Implementation: Public Sector Investment Program 2013-18 The Public Sector Investment Program (PSIP) will become a formalised institution of the ‘New Economy’ as the construct for bringing planning, monitoring, evaluation and deliberate investment focus to the national development program for economic growth and an equitable distribution of the fruits of growth throughout the Grenadian society. The investment efforts of the last five years clearly offer instructive lessons as to the practices to avoid, and demonstrates the necessity for a PSIP, managed by a dedicated formal institution. Table 7 presents the behaviour of capital expenditures for the period, 2007- 2011 in the presence of a defunct PSIP. Table 7: Actual Local Expenditures, Provisional Grants and Loans and Approved 2007 2011 Capital Budgets, EC$ Year Actual Local Expenditure Provisional Grants Provisional Loans Approved Capital Budget 2007 $121,833,627 $20,420,026 $51,076,765 $225,463,825 2008 $118,828,332 $47,539,774 $32,576,588 $241,823,937 2009 $91,104,410 $18,621,921 $30,783,712 $179,825,649 2010 $80,991,144 $10,017,763 $18,553,216 $159,035,947 2011 $100,417,526 $46,571,886 $16,201,195 $203,704,550 Source: Estimates of Revenue and Expenditure, 2008, 2009, 2010, 2011, 2012, Ministry of Finance, Grenada Table 8 presents a tracking of the percentage changes in trends in actual local expenditures, provisional grants, provisional loans and the approved capital budgets for the period, 2007-2011, using 2007 as the base year. Examination of the behaviour of these indicators over this period leads to the following conclusions: i. The public sector program planning approach was unfocused and lacked technical and policy leadership. ii. The implementation of public sector programs was ineffective and inefficient. iii. The actual flows of expenditure finances (local expenditure, provisional grants, provisional loans) lacked predictability. iv. The violent fluctuations, for example, in actual local expenditure, is a strong suggestion that the public sector program was not focused to respond to a well defined development objective. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 113 Table 8: Tracking Changes in Trends in Actual Local Expenditures, Provisional Grants and Loans and Approved 2007-2011 Capital Budgets, (%) Year Actual Local Expenditure Provisional Grants Provisional Loans Approved Capital Budget 2008/2007 97.5% 232.8% 63.8% 107.3% 2009/2007 74.8% 91.1% 60.3% 79.8% 2010/2007 66.5% 49.1% 36.3% 70.5% 2011/2007 82.4% 228.0% 31.7% 90.3% Source: Calculations by the author using the data in Table 3 The proposed Public Sector Program, 2014-2019, is a response to the demands of the transformative agenda for the creation of the ‘New Economy’. Table 9 presents a partial list of projects and proposals identified by Government for inclusion in the new PSIP. Table 9: Nucleus of projects for inclusion in the Public Sector Investment Program, 2014-2019 Project Title Funding Institution Project Cost National Athletics and Football Stadium PRC, GoG $68.0million Grenada House of Parliament UAE Australia, GoG $30.0 million Agricultural Feeder Roads-Phase II Kuwaiti Fund, OFID, GoG Regional Disaster and Vulnerability Reduction Project World Bank, Climate Investment Fund $70.0 million St. Patrick’s Road Project OFID $27.0 million Basic Needs Trust Fund CDB, GoG $2.5 million Road Rehabilitation and Maintenance Project GoG $10.0 million Grenville Market Development Phase II CDB, GoG $10.0 million School Rehabilitation Project OFID $28.5 Million Airport Upgrading Project – Maurice Bishop International Airport and Lauriston Airport Market Access and Rural Enterprise Development Project CDB, IFAD, GoG $20.0 million Small Business Development Fund Project GoG $5.0 million Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 114 7.2 Monitoring and Evaluation: Principles, Tools, Plans Currently, a PSIP does not exist; however, the discussion in recent times helps to highlight the necessity for such a program in order to bring the benefits of program planning, program monitoring and program evaluation to the economic development agenda of the country. Nonetheless, before implementation issues related to a Public Sector Investment Program are discussed, the PSIP must be fashioned into a basic structure that is defined by its own internal planning logic. From the management and planning perspectives, it is reasonable to envisage the existence of a Public Sector Investment Program Unit located within the Ministry of Economic Planning, having central administrative and management responsibility and to provide Program direction. However, the efficiency and effectiveness with which it executes these functions will be constrained by the nature of the relationships that are established and maintained between the Unit and those institutions that would have responsibility for Program and project implementation. Relationships have to be formal with clear lines of communication and authority, even when the relationship is of a specific duration. Principles: The institutional relationships also help to determine the modalities for monitoring and evaluation, i.e.: i. Who does what? ii. What tools are used? iii. When are the various tools used? For what purpose – monitoring or evaluation? iv. What is the periodicity for monitoring, evaluation and reporting? v. Should that periodicity be rigid across the Program or should there be built-in flexibility that is determined by the character of the project? Consistent with the requirements of the ‘New Economy’, a new philosophy and mode of operation are required within the civil service in order for the PSIP to deliver optimal utility. Another consideration is the categorization of candidate projects for the PSIP, given that they would not all have the same status. Sets of criteria have to advise which projects are in the pipeline in contrast to those that are ready for implementation. Another principle for consideration has to do with management accountability of the PSIP to policy-makers and affording the latter the opportunity to evaluate the performance of the PSIP. Former systems offered that type of accommodation through the construct of a policy committee comprising ministers in government. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 115 However, it was unsuccessful because ministers had little time to attend those structured meetings. Consequently, government is being offered a different modality, which potentially, improves the utility of the exercise without undue impositions on the time of ministers. At the ministerial or portfolio level, the individual minister should assume policy oversight for the projects that are being implemented by his/her ministry. The minister, as a matter of duty, should report to the Cabinet on implementation of projects specifically within the PSIP. Cabinet feedback will travel back to the management of the PSIP with a periodicity determined by the Cabinet. Tools: The tools for employment in monitoring and evaluation processes depend on the type of Program to be monitored or evaluated, the objectives of the process and for whom the processes are being conducted. 14 Some of the tools that the PSIP will employ are as follows: i. Performance Indicators ii. Logical Framework Approach iii. Theory-based Evaluations iv. Formal Surveys v. Rapid Appraisal Method vi. Participatory Method vii. Public Expenditure Tracking Surveys viii. Cost-Benefit and Cost-Effective Analysis ix. Impact Evaluation Plans: The monitoring and evaluation plan is designed to satisfy four basic goals: i. To permit learning from experience that would influence future actions. ii. To provide an objective basis for assessing Program results. iii. To provide accountability in the achievement of the objectives. iv. To frame recommendations for project improvements, now and in the future. Within the PSIP, monitoring and evaluation will be tied to planning, budget decision making and accountability. For example, the Ministry of Economic Planning and the 14 Evaluation is the systematic and objective assessment of ongoing and/or completed projects, Programs and policies in respect of their objectives, efficiency, effectiveness, impact and sustainability. (World Bank) Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 116 Ministry of Finance would have interest in outcome budgeting, hence the suggestion for the creation of an independent Monitoring and Evaluation (M&E) Sub-committee with that responsibility. At the same time, they have to maintain a deep interest in the aspects of monitoring and evaluating project and Program outlay activities. The social partners, not exclusive of government and other players, would have a stronger interest in monitoring and evaluating programs and projects as a deliberate response to the slowness of progress in the Millennium Development Goals (MDGs) while, at the same time, monitoring the effectiveness of government spending. In the final analysis, however, monitoring and evaluation resources have to be expended with a clear bias in favour of the flagship programs and projects of the government, without ignoring the others. The monitoring and evaluation plan has to also devote resources to monitoring and evaluating issues of staff and capacity because they impact on Program and project delivery, which in turn, would in part, determine the efficiency and effectiveness of scarce resources and the PSIP’s ability to deliver on its mandate. The monitoring and evaluation of financial transfers from central government to the line ministries and other centres of project implementation would be a critical function of the Monitoring and Evaluation Sub-committee within the PSIP. Here timeliness, effectiveness and efficiency of Program delivery could be influenced (and should be influenced) significantly. The success of the system, among other factors, requires sound intellectual leadership which is visionary and creative. In the evolutionary process of the Public Sector Investment Program System, the monitoring and evaluation plan would embrace the creation of a Monitoring Information System (MIS) and a Performance and Evaluation System (PES). 7.3 Institutional Arrangements The UNDP formally defines institutional arrangements as “... the policies, systems and processes that organisations use to legislate, plan and manage their activities efficiently and to effectively coordinate with others in order to fulfil their mandates.” The Washington Office of Community Development offers an operational definition that states, “... institutional arrangements refer to delegation, distribution or sharing of power related to growth management decision making and implementation authority.” These two definitions, though from different perspectives, provide a critical set of essential parameters for the composition of the institutional arrangements that would guide the PSIP. These institutional arrangements have to meet a minimum set of basic Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 117 criteria that contribute to effectiveness and efficiency of the PSIP. Some of the more critical ones are, as follows: i. The centre of policy formulation and policy direction must be clearly defined and universally respected. ii. Formulation of operational systems for the orderly implementation of processes. iii. Clarity of definition of processes and the roles of operatives within those processes and their interrelations. iv. Creation of a centre for the coordination of roles and processes. v. Establishment of an implementation authority. vi. Arrangements must satisfy set and agree on objectives (the mandate), in this case, economic growth and its optimal distribution among the population. vii. Monitoring and evaluation mechanisms for the enforcement of accountability throughout the system (PSIP). While these conditions are comprehensive in scope, the PSIP will have to satisfy its mandate using approaches and structures that are simple, focused, and practical in the application of functions and their interrelatedness. Lines of authority have to be logical and unambiguous, with the various players having the capacity and authority to perform their required tasks. The basic institutional framework could conform to a set of broad functional arrangements. Chart 1 is a graphic representation of that framework. It speaks generally to functional relationships that would bring effectiveness and efficiency to the PSIP System. The Cabinet will perform the functions of the Policy and will be responsible for causing the formulation and refining of policies to govern the management of the PSIP and its relationship with all the units that make up the system. The Head of the PSIP Unit will receive directives and instructions from the Cabinet and conduct live, formal reporting to the Policy Committee (Cabinet) at times appointed by the latter. As a complement to the live reporting, the Head/PSIP will provide the Policy Committee (Cabinet) with quarterly reports detailing the performance of the programs and projects of the PSIP and other related factors that impact on its performance. The expectation is that every line minister in Cabinet, and the parliament, will be mandated to report formally at convenient but regular intervals on the programs and projects that form part of the PSIP portfolio and reside within their ministerial authority. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 118 There will be a formal relationship between the Head/PSIP and the permanent secretaries within the line ministries, within which programs and projects reside. This arrangement is viewed as being necessary in order to maintain consistency and discipline in the conduct of the functions of the ministerial focal points who would be seated on the Technical Committee. The Technical Committee will be made up of heads of planning units or technical heads of the ministries, where planning units do not exist. Chart 1: A presentation of the broad functional relationships within the institutional arrangements of the PSIP There will be three sub-committees within the PSIP Unit. The Project Development Sub Unit will oversee the general formulation of projects and programs within the PSIP and ensure that they conform to the design parameters and structures required by Government and donor agencies. The Implementation Sub-Unit will oversee the general implementation of major projects. The Monitoring and Evaluation Sub-Unit will provide objective oversight of project performance. Policy Committee (Cabinet) Monitoring & Evaluation sub-Committee Implementation Oversight Sub Commette Head PSIP Unit Line Ministries & Project Centres (PSIP Focal Points) Heads of Ministries Project Development Sub-Committee Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 119 ANNEX 1 RESOURCE FRAMEWORK GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators STRATEGIC ORIENTATION AND OBJECTIVE: Macro-Economic Stabilization- Public Debt Management & Promoting Fiscal management & Consolidation Institutional Strengthening IMF/WB/ECCB/ GOG $1500,000 $500,000 $500,000 $500,000 Efficient debt & fiscal mgmt. system Level of fiscal discipline & operational efficiency Capacity Building IMF/WB/ECCB/ GOG $1500,000 $500,000 $500,000 $500,000 Specialized training in public debt & fiscal mgmt. for all MOF staff Proportion of staff receiving specialized training in debt & fiscal management Debt Restructuring & Portfolio Management IMF/WB/ECCB/ GOG $1500,000 $500,000 $500,000 $500,000 Reduce net public debt & sustain to level of less than 100% of GDP Debt/GDP ratio Strengthening Debt Mgmt Unit IMF/WB/ECCB/ GOG $750,000 $250,000 $250,000 $250,000 Developing Analytical Models for Debt Management IMF/WB/ECCB/ GOG $750,000 $250,000 $250,000 $250,000 Analytical models developed and implemented as part of management tools Training in debt & portfolio management IMF/WB/ECCB/ GOG $750,000 $250,000 $250,000 $250,000 at least 3 public officers trained Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 120 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Public Sector Modernization Program IMF/WB/ECCB/ GOG $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Operationalize one stop shop for lands & deeds registration; Address outstanding key outcome indicators Approval of GLA Act & related legislation; Launch of available e services in land registration (eLandGrenada, eLandMap, eLandRegistry, and eLandSales, eLandPermit and eLandPlan STRATEGIC ORIENTATION AND OBJECTIVE: Enhancing Public Sector Investment Improve efficacy of the PSIP Management CDF $267,000 $133,500 $133,500 Web based Project Database Mgmt System Developed STRATEGIC ORIENTATION AND OBJECTIVE: Supporting Financial Sector Stability through Regulation & Supervision Strengthen the regulations & prudential guidelines IMF/WB/ECCB/G OG $750,000 $250,000 $250,000 $250,000 Insurance Act approved & implemented; Substantial progress in credit union consolidation & oversight. Introduce legislation which mitigate against risk & financial services meltdown IMF/WB/ECCB/G OG $750,000 $250,000 $250,000 $250,000 Reduction in the share of NPLs in the total loan portfolio of banks Strengthen capacity for supervision (including internal/extern al information sharing) IMF/WB/ECCB/G OG $750,000 $250,000 $250,000 $250,000 Reforms implemented in accordance with ECCB mandate STRATEGIC ORIENTATION AND OBJECTIVE: Macro Economic Planning Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 121 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Develop National Development Plan - Vision 2025 (NDP2025) IMF/WB/ECCB/G OG $2,000,000 $1,000,000 $1,000,000 NDP2025 completed by 2016 Cabinet approval of document STRATEGIC ORIENTATION AND OBJECTIVE: Strengthening the Doing Business Environment Strengthening Public Procurement Systems IMF/WB/ECCB/G OG $100,000 $100,000 Publish Contracts awarded through new procurement law Increased transparency of public procurement and confidence of the private sector in the system Competition Legislation IMF/WB/ECCB/G OG $50,000 $50,000 Model competition bill passed into law. Customs & Trade Facilitation Capacity Enhancement Customs Department CDF $1,350,000 $675,000 $675,000 Policy & Procedures Manual Developed; Certification of Customs Brokers; Marine Capability established in Customs dept.; Improved internal controls Export Development CDF $1,270,396 $635,198 $635,198 Trade Portal Fully Functional; Capacity of honey producers enhanced Capacity Development Grenada Bureau of Standards CDF $739,590 $369,795 $369,795 Updated standards, metrology & Certification; ISO 17025 Certification Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 122 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Regional Integration & OECS Economic Union EU/China/CIDA/ GOG/DFID $1,500,000 $300,000 $300,000 $300,000 $300,000 $300,000 Progress in facilitating movement of people, free circulation and establishment of integration unit. STRATEGIC ORIENTATION AND OBJECTIVE: Social and Economic Development Programs Market Access & Rural Enterprise Development Project CDB/IFAD/ GOG $15,500,000 $4,250,000 $3,750,000 $3,750,000 $3,750,000 Poverty level reduced in the 50 targeted communities Community Poverty Assessment Support to ECERA for new Modalities (Including Tariff setting mechanisms, deregulation, etc) World Bank $7,000,000 $500,000 $500,000 $3,000,000 $3,000,000 Improved regulatory framework for electricity sector governance; Diversifying of sources of generation through increased use of renewable energy. Caribbean Regional Infrastructure Project (CARCIP) World Bank $11,000,000 $1,000,000 $3,000,000 $2,000,000 $4,000,000 $1,000,000 Improved access to broadband networks and development of ICT enabled services industry. Broadband capacity & usage Government Information Technology Project GOG $1,500,000 $500,000 $1,000,000 Functioning Integrated government information portal Basic Needs Trust Fund CDB $11,000,000 $2,000,000 $3,000,000 $2,000,000 $2,000,000 $2,000,000 Improved Rural Community Infrastructure Education, Access Rd, Water, Sanitation Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 123 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Small Business Development Fund GoG $6,000,000 $2,000,000 $2,000,000 $1,000,000 $1,000,000 # of small business accessing loan & strong performance portfolio Support for SME Development CDF $8,010,000 $2,002,500 $2,002,500 $2,002,500 $2,002,500 # of SME's applying and qualifying for loans Capacity Development GDB & GIDC Business Plan Preparation CDF $490,289 $245,145 $245,145 GDB Bank Act Updated; # SME's Trained; Support for National Health Insurance Scheme GOG $2,000,000 $400,000 $400,000 $400,000 $400,000 $400,000 National Health Insurance Scheme approved by Cabinet STRATEGIC ORIENTATION AND OBJECTIVE: Physical Infrastructural Development Program Regional Disaster Risk Reduction Project World Bank $68,000,000 $20,000,000 $20,000,000 $20,000,000 $8,000,000 # of Public facilities retrofitted for disaster resilience St. Mark’s Flood Mitigation Project CHEC $15,000,000 $10,000,000 $5,000,000 Gouyave Flood Mitigation Project CDB $63000,000 $25,000,000 $25,000,000 $5,000,000 $5,000,000 $3,000,000 Grenville Bus Terminus Phase II CDB $8,000,000 $2,500,000 $5,000,000 $500,000 Completion of outstanding work and operationalization of facility St. John’s River Flood Control Project World Bank $22,000,000 $2,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 # miles of road rehabilitated Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 124 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators National Asphalt Roads Rehabilitation Program GOG $18,000,000 $9,000,000 $9,000,000 St. Patrick's Roads Rehabilitation Project OFID $27,000,000 $7,000,000 $10,000,000 $10,000,000 National Concrete Roads Rehabilitation Program GOG $15,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Special Community Projects GOG $15,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 High impact identified and executed and # beneficiaries. Water for all PPP $10,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Increase in # of households receiving portable water; better sanitation & lower incidence of health cases STRATEGIC ORIENTATION AND OBJECTIVE: Enhancement of Good Governance & Citizen Justice House of Parliament PPP $30,000,000 $5,000,000 $15,000,000 $10,000,000 Lowther’s Lane Govt Office Complex Housing of Good Governance Institutions PPP $20,000,000 $10,000,000 $10,000,000 Bacolet Juvenile Rehabilitation centre UNICEF, OAS $1,500,000 $1,500,000 Facility commissioned Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 125 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators National Referendum on the New Constitution Comm. Secretariat, GOG $1,250,000 $1,000,000 $250,000 # Consultations held & revised constitution document. STRATEGIC ORIENTATION AND OBJECTIVE: Development of Health Strengthening the Delivery of Primary Health Care EU/PAHO/ GOG $6,000,000 $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Availability pf primary health care services Gouyave Polyclinic EU/PAHO/ GOG $8,000,000 - $2,000,000 $2,000,000 $2,000,000 $2,000,000 Polyclinic commissioned Princess Alice Hospital Upgrade PPP $10,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Upgrade completed Princess Royal Hospital Upgrade PPP $10,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 Upgrade completed General Hospital Phase II Venezuela $10,000,000 $10,000,000 - - - - SGGH refurbished New Hospital China $150,000,000 - $37,500,000 $37,500,000 $37,500,000 $37,500,000 New hospital commissioned Health information Management PPP $6500,000 $3000,000 $2000,000 $1000,000 $500,000 Commissioning of health information system STRATEGIC ORIENTATION AND OBJECTIVE: Agriculture, Agri-Business & Food Security Supporting Food & Nutrition Security (See sub-programs below) Improved availability for domestic consumption & export; Improved nutritional status of rural communities  Root Crop Program GOG $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Increased production of root crops to meet local demand, for agro-processing & export  Root Crops Dev. Project GOG $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Improvement in the quality & varieties of root crops produced and marketed Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 126 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators  Fruit Dev. Project (Soursop etc.) GOG $375,000 $75,000 $75,000 $75,000 $75,000 $75,000 Increased production and export of targeted fruit crops.  Support to Buy Healthy /Buy Local Campaign GOG/FAO $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Increased domestic consumption of local fruits and vegetables  Zero Hunger Program GOG/FAO/ MNIB $250,000 $50,000 $50,000 $50,000 $50,000 $50,000 Zero stunted children less than 2 years; 100% access to adequate food all year round; all food systems are sustainable; 100% increase in smallholder productivity and income; Zero loss or waste of food  Strategic Food Safety Initiatives GOG $1000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Conformance to food safety barometer  Support for Small Ruminant & Poultry Dev. PPP/FAO/EU $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Increased local production of small ruminants and broilers. Agricultural Feeder Phase II OFID/Kuwait $45,200,000 $20,000,000 $20,000,000 $5,200,000 # and Miles of Feeder Roads Completed Farm Labour Program GOG $2,500,000 $500,000 $500,000 $500,000 $500,000 $500,000 # of acres of agricultural lands cleared Export Development Program MNIB/GoG $5,000,000 $2,000,000 $2,000,000 $1,000,000 Increased exports of fruits, vegetables and agro products annually Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 127 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Support to Commercializa tion of Government Estates PPP/WB/CDB $500,000 $250,000 $250,000 100% increase over base year Increase in total output from commercialized estates Support for Plant Health & Food Safety CARICOM/ EU $5,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Adoption of agricultural practices (GAPs) and food safety standards (HACCP, GMP,FSMA) for increased market access and trade Support for Extension Services FAO/GoG $1,000,000 $300,000 $300,000 $400,000 # & degree of innovations spread (technological, institutional, social); problems actually addressed /solved; degree of farmer empowerment (enabling them to solve their problems) Support for the Fisheries Industry GOG $1,000,000 $300,000 $300,000 $400,000 Improvement in the amount and quality of fish catch Small Enterprise Development Support for farmers & fisher folks groups GOG $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 # farmers & fisher folks groups accessing facility Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 128 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Upgrading of Plant Propagation Facilities $2,250,000 $750,000 $750,000 $750,000 Increase in the amount and improvement in the quality of plants propagated and distributed Market Support Project for High Demand Produce GOG $250,000 $50,000 $50,000 $50,000 $50,000 $50,000 Increased production and sale of high value crops particularly to hotels Capital Investment in Farm machinery PPP/Turkish Government $2,000,000 $500,000 $500,000 $500,000 $500,000 Timely preparation of lands for planting Increasing Value Added to Nutmeg; Consultancy Services Project & Nutmeg Cluster Coordinator CDB $965,096 $321,699 $321,699 $321,699 Project Coordinator contracted Nutmeg Cluster Project Compete Caribbean $2,200,000 $200,000 $1,000,000 $1000,000 Organic certification programme PPP # Farmers receiving organic certification Sustainable Fisheries Project PPP $500,000 $500,000 $500,000 $500,000 STRATEGIC ORIENTATION AND OBJECTIVE: Development of Tourism & Culture Support for Marketing & Promotion GOG $60,000,000 $20,000,000 $20,000,000 $20000,000 Annual Increase in Tourism Receipts Tourism Dev. Plan: PM & Carriacou GOG/EU/World Bank/EU $1,350,000 $450,000 $450,000 $450,000 Plan drafted and endorsed by stakeholders Support for Airlift GOG/World Bank $30,000,000 $10,000,000 $10,000,000 $10000,000 Increase in visitor arrivals Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 129 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Support for Spice Mas Corporation GOG $2,100,000 $700,000 $700,000 $700,000 Increase in visitor arrivals Maurice Bishop Airport Upgrade & Runway Paving EXIM (China) $80,000,000 $1,000,000 $19,750,000 $19750,000 $19,750,000 $19,750,0 00 Required infrastructure works completed Lauriston Airport Upgrade PPP $40,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 Required infrastructure works completed Institutional Support for Grenada Tourism Authority GOG $3,500,000 $2,000,000 $1,500,000 Effectiveness of GTA improved STRATEGIC ORIENTATION AND OBJECTIVE: Geotourism (geotourism supporting activities are significant enough to warrant a sub heading) Geotourism PPP - Compete Caribbean, STI/OAS/GHTA $3,100,000 $1,300,000 $600,000 $400,000 $400,000 $400,000 Net increase in receipts from geotourism Product Development/ Attractions, local artisans, art & craft, etc GOG/EU/World Bank $5,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 505 increase in # of persons visiting sites # tourism sites rehabilitated/devel oped; # persons visiting Yachting Sector Development Strategy PPP/GOG/ CDF $500,000 $250,000 $,250,000 Single Grenadines Yachting Space Underwater Sculpture Park PPP GHTA/Dive/ CCCCC $3,000,000 $1,000,000 $1,000,000 $1,000,000 , Increased # of visitors Tourism Coastal Disaster Mitigation Project PPP NaDMA/GHTA/C DB $1,000,000 $500,000 $500,000 Reduced damage to corral reef Tourism Waste Diversion Project GHTA/CCCCC/C ompete Caribbean $4,000,000 $2,000,000 $2,000,000 Reduced outflows of waste from hotel plants into sea Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 130 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Restoration of Historic Sites EU/GOG/ World Bank $25,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 # sites restored Revitalization of the Carenage Planning & Development GOG $20,800,000 $800,000 $6,666,667 $6666,667 $6,666,667 Dev. plan prepared; stakeholder consultation completed; recommendations included in final plan STRATEGIC ORIENTATION AND OBJECTIVE: Energy Development Wind Energy Carriacou EU/GRENLEC $15,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 $3,000,000 Pilot completed and results evaluated Sustainable Energy for the Eastern Caribbean Program (SEEC) IDB/ EU/CDB $11,000,000 $1,000,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Promoting Energy Efficiency Hotel Industry CDF/PPP $804,001 $402,000 $402,000 Reduction in the energy share in total cost Energy for the Poor OFID $15,000,000 $5,000,000 $5,000,000 $5,000,000 Reduce & subside energy as share of vulnerable households; improve access to energy by poor STRATEGIC ORIENTATION AND OBJECTIVE: Education & Human Resource Development OFID School Rehabilitation Project Phase I OFID/OPEC/ GOG $30,713,548 $15,000,000 $15,713,548 - 5 Schools Refurbished Completion of works on schools OFID School Rehab Project Phase II OFID/OPEC/ GOG $13,500,000 $6,750,000 $6,750,000 Additional 4 Schools refurbished Completion of works on schools Free Textbook Program PETROCARIBE $7,500,000 $2,500,000 $2,500,000 $2,500,000 # students receiving assistance Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 131 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Uniform Program PETROCARIBE $3,000,000 $1,000,000 $1,000,000 $1,000,000 # students receiving assistance School Feeding Program PETROCARIBE $9,000,000 $3,000,000 $3,000,000 $3,000,000 Every school child is well nourished and ready to receive instructions Nutritional status of children Human Resource Dev. Scholarship Program GOG $6,000,000 $2,000,000 $2,000,000 $2,000,000 # persons taking up scholarships Online Teacher Training Program GOG $1,000,000 $300,000 $300,000 $400,000 # teachers participating in program Student Connectivity Program PPP $25,000,000 $25,000,000 School Rehabilitation Program World Bank/ GOG $18,000,000 $8,000,000 $5,000,000 $5,000,000 # targeted schools rehabilitated STRATEGIC ORIENTATION AND OBJECTIVE: Social Services - Social Sector Vulnerabilities SEED Program WORLD BANK $13,000,000 $3,000,000 $2,500,000 $2500,000 $2500 ,000 $2500,0 00 % beneficiaries from PA, NFS & TAS registered in SEEDS and receiving benefits; # New beneficiaries registered in SEEDS MIS Implementation of OECS Family Law Reform OECS/UNICEF $100,000 $50,000 $50,000 Legislation introduced Support to Civil Society (Non State Actors Panel) & Other Support Measures EU $250,000 $50,000 $50,000 $50,000 $50,000 $50,000 Impact assessment of projects Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 132 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators STRATEGIC ORIENTATION AND OBJECTIVE: Housing infrastructure and Services Provision of Sites and Services for PRC Housing Phase II GOG $10,000,000 $2,000,000 $3,000,000 $2,000,000 $3,000,000 Increase in persons receiving housing Services for PRC Housing Project- Phase II PRC $80,000,000 $16,000,000 $24,000,000 $16,000,000 $24,000,000 # homes beneficiaries House Repair Program GOG $0 Government Home Loan Program GOG $3,000,000 $1,000,000 $1,000,000 $1,000,000 # persons benefiting from facility Grenada Home Improvement Program GOG $5,350,000 $5,350,000 # persons benefiting from facility Home for Socially Displaced Persons GOG, Grenlec $250,000 $250,000 STRATEGIC ORIENTATION AND OBJECTIVE: Youth and Sport Development Financing the IMANI Program GOG $81,000,000 $27,000,000 $27,000,000 $27,000,000 # Young persons trained Youth Enterprise Fund GOG $6,000,000 $2,000,000 $2,000,000 $2,000,000 # persons receiving project funding Support for the Youth Parliament GOG $150,000 $50,000 $50,000 $50,000 Sport Development Program GOG $2,100,000 $700,000 $700,000 $700,000 # of persons benefiting under various programs National Athletic & Football Stadium PRC $85,000,000 $50,000,000 $35,000,000 Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 133 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Night Lighting of National Cricket Stadium GOG $4,000,000 $2,500,000 $1,500,000 50% increase in use of sporting facility Kirani James Mini Stadium PPP $21,000,000 $1,000,000 $10,000,000 $10,000,000 STRATEGIC ORIENTATION AND OBJECTIVE: Climate Change Mitigation & Adaptation Integrated Climate Change Adaptation Strategies (ICCAS) GIZ/UNDP $18,022,500 $6,007,500 $6,007,500 $6,007,500 Enhanced adaptation to climate change Regional Disaster Risk Reduction Project World Bank $68,000,000 $20,000,000 $20,000,000 $20,000,000 $8,000,000 Improved disaster preparedness Implementation of Pilot Program for Disaster Risk Resilience $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Improved public awareness of impact of disasters Coastal Zone Policy & Mgmt Plan $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 Plan approved Support for Caribbean Challenge Initiative (CCI) $1,000,000 $200,000 $200,000 $200,000 $200,000 $200,000 25% Marine protected areas GEF 5 Climate Change GEF $5,400,000 $1,800,000 $1,800,000 $1,800,000 Climate change mitigation GEF 6 Climate Change/Bio diversity/Land degradation GEF $11,961,600 $3,987,200 $3,987,200 $3,987,200 STRATEGIC ORIENTATION AND OBJECTIVE: Biodiversity Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 134 GPRS RESOURCE FRAMEWORK (FINAL) PROJECTS DEVELOPMENT PARTNERS TOTAL COST ($) 2014 ($) 2015 ($) 2016 ($) 2017 ($) 2018 ($) Targets Indicators Establish National Conservation Trust Fund (in Sustainable Finance & Mgmt of Eastern Caribbean Marine Eco system Project) PPP TNC/CBF/GOG/ GNCTF $3,404,000 $200,000 $534,000 $534,000 $1,068,000 $1,068,000 Preservation of National Protected areas Implement Grenada's Biodiversity Strategy & Action Plan CBF/GOG $1,250,000 $250,000 $250,000 $250,000 $250,000 $250,000 GEF 5 Biodiversity GEF $4,050,000 $1,350,000 $1,350,000 $1,350,000 Ecosystem Based Adaptation UNEP $10,297,772 $3,040,443 $3,825,110 $3,432,219 Preservation of ecosystems GEF 5 - Land Degradation GEF $3,132,000 $1,044,000 $1,044,000 $1,044,000 Blue Ocean Institute Govt Netherlands $5,000,000 $500,000 $2,000,000 $2,000,000 $500,000 Spice Institute Govt Netherlands $5,000,000 $500,000 $2,000,000 $2,000,000 $500,000 Development of exotic spices for export market TOTAL 1,555,102,791 409,501,779 476,721,194 359,770,784 196,549,367 112,559,667 Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 135 ANNEX 2 PLANNING FRAMEWORK Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 M a c ro e c o n o m ic S ta b iliz a tio n Strategic Objective 1.1: Promoting Sustainable Fiscal And Debt Management Activity 1.1.1: Increase Fiscal Revenue 1.1.1a. Continue Taxpayer Education And Promotion Of Voluntary Tax Compliance Programs X X X X X IRF/MoF Policy Unit 1.1.2b. Integrate Tax Functions With Mainstream IRD Operations X X IRD/MoF Policy Unit 1.1.3c. Strengthen The Capacity Of Tax Collection Departments X X IRD/Customs Policy Unit 1.1.4d. Develop Audit Capacity Within The Public Sector X X X Audit Dept. Policy Unit 1.1.5e. Update System Of Single Unique Tax Identification Number X MoF Policy Unit 1.1.6f. Reduce Revenue Leakages Within Govt Collection Agencies X X X X X IRD/Customs Audit Dept. 1.1.7g. Rationalize All Existing User Fees And Charges X X IRD/Legal Affairs Policy Unit E n a b li n g B u s in e s s E n v ir o n m e n t Activity 1.1.2: Reduce Fiscal Expenditure And Management 1.1.2a. Employ Control Mechanisms to Restore Growth In Wage Bill To Less Than Growth Rate Of Nominal GDP X X X X X MoF Policy Unit 1.1.3b. Refine And Employ Waste Management Systems To Improve Spending From The Consolidated Fund X X X X X MoF Policy Unit 1.1.2c. Implement Effective Budget Controls Systems X X X X X MoF Policy Unit Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 136 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 1.1.2d. Manage Effectively The Transfers, Concessions, Waivers & Subsidies Regimes X X X X X MoF Policy Unit 1.1.2e. Implement A PSIP Mgmt System X X X X X MoF Policy Unit E n a b li n g B u s in e s s E n v ir o n m e n t Activity 1.1.3. Improve Government Debt And Financial Management 1.1.3a. Implement Legislation To Set Ceiling On Government Borrowing Of Foreign Funds X MoF/Ag 1.1.3b. Develop And Finance A Debt Management Unit (DMU) X X X X X MoF/Debt Unit 1.1.3c. Build Capacity In Debt Negotiating Skills Of The DMU X X MoF/Debt Unit Strategic Objective 1.2: Sustainable Investment Flows And Robust Financial System Activity 1.2.1: Strengthen Financial System Supervision 1.2.1a. Improve GARFIN’s Capacity To Carry Out Its Regulatory Functions X MoF 1.2.1b. Improve Capital Regulatory Framework In The Banking Sector X GARFIN Activity 1.2.2: Facilitate Private Sector Access To Capital 1.2.2a. Improve Access To Credit For Investment In Growth Sectors X X MoF Activity 1.2.3: Risk Management 1.2.3a. Encourage Banks To Conduct Their Own Credit Risk Analysis X MoF Strategic Objective 2.1: International Trade And Market Access 2.1.1a: Employ Trade Attaches In Strategic Embassies To Promote Exports X X Cabinet/Parl. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 137 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 2.1.1b: Implement Comprehensive National Trade & Export Policy for Global & Regional Market integration X X X X X Trade Dept. 2.1.1.c Fund the Coalition of Services for Five Years X X X X X MOF Trade Dept. GCIC; MoT;MoLA; TRADE DEPT Activity 2.1.2: Increase Manufacturing Output And Competitiveness 2.1.2a: Promote The Use Of Local Products And Services. X X X MoA; MoT; MoTour. E n a b li n g B u s in e s s E n v ir o n m e n t 2.1.2b: Mobilise Resources For The Production Of Value Added Products. X X MoT 2.1.2c: Promote Development Of The Arts And Crafts Industry For Exports. X X MoT 2.1.2d Build National Capacity For The Exploitation Of Business Opportunities Arising From Trade Agreements To Which Grenada Is A Signatory X X 2.1.2e: Assist Manufacturers To Comply With International Standards. X X X X X MoT 2.1.2f: Assist Manufacturers In Packaging Branding And Labeling Regionally And Internationally. X B.Std/MoT Activity 2.1.3: Strengthen The Legal And Regulatory Framework To Support Trade 2.1.3a: Ensure Effective Enforcement Of Trade Rules X X MoT 2.1.3b Establish A Well-Managed Mechanism For The Dissemination To Business Of The Proper Interpretation And Application Of Trade Rules X X MoT Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 138 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 2.1.3c: Improve The Speed And Efficiency Of Business Registration And Licensing X X MoT/GIDC/ MoF/ Legal Affairs 2.1.3d Further Strengthen Capacity Of The GBS To Conduct Certification Process & Monitor Manufacturers’ Compliance With Requirements For Certification Maintenance. X X X MoT/GIDC 2.1.3e: Use The Fiscal System To Improve Domestic Manufacturing Competitiveness X X X X X Cabinet MoT E n a b li n g B u s in e s s E n v ir o n m e n t Strategic Objective 2.2: Engendering And Securing Participation Of Communities In The “Pro-Poor” Growth Development Agenda 2.2.1a: Facilitate Easy Financing Services For The Poor X X X X X MoSD/MoCD NSA 2.2.1b: Promote Equity In Accessing Financing X X X X X MoED NSA 2.2.1c: Create Environment For Village Banking To Improve Convenience and Access X X X X X MoF NSA 2.2.1d: Engage Financial Sector To Provide Financing For Investment For Provision Of Services To The Poor X X X X X MoF/MoSD. NSA 2.2.1e: Provide Flexible Financial Instruments Such As Reducing Borrowing Conditions X X X MoF NSA 2.2.1f: Train, Organize & Establish Community Persons/Groups Into Commercial Units To Provide Agri Services & Unique Goods X X X X X MoA; NTA, TAMCC NSA MoCD; MoSD; E.U, Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 139 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 2.2.1g: Pilot Small Appropriately-Sized Poultry Abattoirs to drive Commercia lization Of Poultry Production By Small Impoverished Groups And Individuals In 3 Communities X X X MoA; NTA; TAMCC NSA Community Orgs. MoCD; MoSD; E.U. 2.2.1h: Support Development Of Small Agro-Processors Clusters Around The Root Crops Production Sub-Sector X X X X X MoA (PLC), NTA, TAMCC NSA; Com. Orgs., Farmer Orgs. MoCD; MoSD; E.U., FAO Farmer Orgs. 2.2.1i: Pilot Infrastructural Support The Establishment And Commercial Operations Of Root Crops-Based Products In St. Andrew And St. Mark MoA (PCL), NTA; TAMCC NSA Community Orgs. MoCD; MoSD; E.U., FAO, CARDI, IICA 2.2.1j: Implement Product Standardization Practices To Render Root Crop-Based Agro-Processed Products Homogenous In Composition/ Packaging Across Production Centers MoA (PCL), NTA, TAMCC PCL, GBS MoCD; MoSD; E.U., FAO, CARDI, IICA, Farmer Orgs. 2.2.1k: Equip Financially-Challenged Community Persons And Groups To Become Commercial Drivers Of A Viable ‘Natural Herb’ Sub-Sector X X X X X MoA, MoSD GDB, TTA, Commercial Banks, Credit Unions MoCD; MoSD; MoYS; MoW/ICT; Farmer Orgs. GIDC, GDB. Commercial Banks, Credit Unions 2.2.1l: Support The Commercial Participation Of Financially-Challenged Groups And Individuals In The Apiculture Industry X X X X X MoA; MoCD; MoSD GDB, NTA, Commercial Banks, Credit Unions 2.2.1m: Expand Establishment of ICT Hot Spots As A Vehicle For The Delivery Of Poverty Reduction Strategies X X X X X Cabinet, The National Parliament NTA MoSD; MoSD; MoYS; Mow/ICT; Farmer Orgs.. GIDC, GDB, Commercial Banks, Credit Unions 2.2.1n: Conduct Community Training & Sensitization Actions Emphasizing ICT Tools As Vehicles For Empowerment X X X X X NTA NTA Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 140 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 2.2.1o: Pilot Minimum Maintenance Low Cost Solar Energy Generating Models For Domestic And Micro Industrial Uses In Poor Communities X X X X X Energy Unit, MoCD; MoSD; NTA Activity 2.3.1: Create And Sustain An Environment Which Enables All Forms Of Business Development 2.3.1a: Improve The Process Of Starting A Business By Reducing The Processing Time X X X GIDC Mod, Mod, Mos, Mow/ICT; Farmer Orgs., GDB, Comm. Banks, Credit Unions 2.3.1b: Provide Local Financing For Capital Projects X X X X X MoF NSA MoCD; MoSD; MoYS; Mow/ICT; Farmer Orgs., GIDC, GDB, Commercial Banks, Credit Unions 2.3.1c. Design And Implement A Training Program In Business Process Improvement X X X GIDC 2.3.1d. Explore Opportunities For Market Access Through Offshore/International Incubators X X X X X GIDC MoCD; MoSD; MoYS; Mow/ ICT; Farmer Orgs, GDB, Com. Banks, Credit Unions 2.3.1f: Revise Company Law To Tighten Loop Holes In Starting A New Business X X Legal Affairs /GIDC L e v e ra g in g T h e G ro w th S e c to rs Strategic Objective 3.1: Development Of Health And Wellness Sector Activity 3.1.1: Bridge The Gap In Access To Health Care 3.1.1a: Improve The Community Health Care Services X X X X X MoH NMA:, NSA SGU 3.1.1b: Redeploy Nurses And Nursing Assistants To Community Clinics X X X X X MoH NMA; NSA SGU 3.1.1c: Improve Access To Reproductive Health Services X X X X X MoH NMA; NSA SGU 3.1.1d: Provide Outreach Services And X X X X X MoH NMA: NSA SGU Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 141 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 Clinics In Deprived Rural Areas. Activity 3.1.2: Strengthen Efficiency In Service Delivery L e v e ra g in g T h e G ro w th S e c to rs 3.1.2a: Train Imani Participants As Health Services Providers X X X X X MoH Cabinet; NSA MoCD; MoYS, 3.1.2b: Provide Incentive Packages To Support The Retention Of Trained Health Personnel X X X X X MoH Cabinet, NSA SGU, PAHO 3.1.2c: Expand Community Based Health Service Delivery X X X X X MoH Cabinet, NSA SGU, PAHO 3.1.2d: Strengthen Monitoring & Evaluation System in Health Sector X X X X X MoH, MoSD External Evaluator SGU, PAHO 3.1.2e: Collaborate Efforts With SGU 3.1.2f: Strengthen Primary Health Care Facility To Ensure Availability Of Specialist In Rural Communities. X X X X X MoH Cabinet, NSA SGU 3.1.2g: Institute 24 Hour Primary Health Care Services X X X X X MoH, SGU NSA, Targeted Beneficiaries PAHO 3.1.2h: Ensure An Effective System To Collect Fees For Extended Hours Of Operation Of Community Services X X X X X MoH, Hospital Authority Inland Revenue Dept. SGU, PAHO Activity 3.1.3: Promote Good Nutrition 3.1.3a: Promoting Nutrition As A Contributor To Good Health X X X X X GFNC MoH Media Houses 3.1.3b: Develop And Implement An Efficient Supervision System Of The School Feeding Program X X X X X MoE/MoA Participating Schools, NSA GFNC Activity 3.1.4: Develop A National Food And Nutrition Policy Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 142 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 3.1.4a: Finance The Development Of A Food And Nutrition Policy X X GFNC MoE PAHO L e v e ra g in g T h e G ro w th S e c to rs 3.1.4b: Develop A Multi-Media Public Awareness And Public Education Strategy And Program X National Media Houses, FAO, Com. Secretariat 3.1.4c:Ffinance The Publicizing Of The Public Awareness And Public Education Messages X X X X Gov’t Information Media Houses Activity 3.1.5: Promote Geriatric Care As A Specialized Health Care Service 3.1.5a: Strengthen Public Education Programs on Benefits Of Caring For The Aged. X X MoH, SGU NTA ; MoSD, Non-State Actors Media Houses 3.1.5b: Provide Geriatric Care As Community Health Service X X X X X MoH, SGU MoSD SGU, PAHO Activity 3.1.6: Establish A Management Information System 3.1.6a: Create A National Database For Communicable And Non Communicable Disease X X X X X MoH, SGU Private Consultants Activity 3.1.7: Develop Policy And Legislative Framework For Bio Prospecting Industry X X MoH, SGU Private Consultants Activity 3.1.8: Pilot And Evaluate A National Health Insurance Scheme X X MoH Cabinet Appointed Cmte SGU, PAHO, NIS, NSA Activity 3.1.9: Improve The Operational Efficiency Of Health Sector Management Agencies X X MoH Audit Dept SGU Activity 3.1.10: Expand And Improve Existing National Hospital Infrastructure X X X MoH, MoW NHS Gov’t Of Venezuela Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 143 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 Activity 3.1.11: Achieve 100% immunization rate in “vaccinable” childhood illnesses X X X X X MoH MoE CBOs, NGOs, HS Activity 3.1.12: Reduce infant mortality rate to 99% over the next five (5) years X X X X X MoH Hospitals CBOs, HS L e v e ra g in g T h e G ro w th S e c to rs Activity 3.1.13: Finance Universal Access Program for retroviral drugs for HIV/AIDS patients X X X X MoF MoH Community Clinics, HS, SGU, PAHO, WHO Strategic Objective 3.2: Development Of Agriculture And Agribusiness Sector Activity 3.2.2: Develop And Implement And/Or Strengthen Program To Promote Potential Benefits From Farming And New/Modern Farming Techniques Amongst Youth X X X X X MoA, MoYS NTA ICT Activity 3.2.3: Develop & Implement Programs To Address Barriers To Success In Farming, Incl. Factor Issues Such As Wages And Output Issues X X X X MoA Labour Financial Institutions, MNIB Activity 3.2.4: Establish & Manage Agricultural Research Station On 10 Acres Of Lands In Grand Bras X X X X X MoA UWI CARDI, IICA Activity 3.2.5: Review & Reform Archaic Agribusiness Arrangements & Institutional Structure for Efficiency X X X MoA GDB MNIB, Financial Institutions 3.2.6a: Support Appropriate Use Of Irrigation Techniques X X X X X MoA NAWASA Farmer Orgs., MNIB 3.2.6b: Promote Equity Among The Genders To Land Access X X Cabinet NSA MoA 3.2.6c: Promote Use Of Greenhouse Technology In Agriculture Production X X X X X MoA MNIB CARDI, IICA Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 144 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 3.2.6d: Manage Leasing Of Govt. X X X X X MoA MOLA, MoF MNIB 3.2.6e: Implement Programs That Target Non-traditional Agri-Products X X X X X MoA MNIB Farmer Orgs., CARDI, IICA Activity 3.2.7: Enhance Growth & Development In Livestock Industry X X X X X MoA MNIB Supermarkets, Framers, CARDI L e v e ra g in g T h e G ro w th S e c to rs 3.2.7a Develop & Manage A Land Bank System For Agri- Enterprises X X X X X MoA MOLA Agricultural Land Owners 3.2.7b: Promote Honey Production X X X X X MoA GBA GBA, SGU 3.2.7c: Intensify Pest And Disease Control Management X X X X X MoA Farmers CARDI, IICA, FAO, Farmers 3.2.7d: Collaborate With SGU to develop Vet. Public Health Services X X X MoA/SGU Activity 3.2.8: Strengthen Marketing And Agriculture Financing Arrangement 3.2.8a: Improve Access To Credit For Financially Disadvantaged Farmers X X X X X MoA NSA Credit Unions, GDB, Commercial Banks 3.2.8b: Promote Farmer Based Organization And Cooperative X X MoA 3.2.8c: Encourage Private Sector Initiatives To Purchase Produce Directly From Farmers X X X MoA NSA GHA, MNIB, Restaurants Supermarkets, Activity 3.2.9: Create The Environment To Ensure Food Security 3.2.9a: Promote Use Of Local Raw Material X X X X X MoA NSA MNIB 3.2.9b: Facilitate Establishment Of Small Scale Agro-Processing Industries For Exports X X MoA/Trade Asap MNIB, GBS, 3.2.9c: Develop Environmentally Friendly Food Processing Technology X X X X X ICT/MoA Asap GBS, MNIB, Trade Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 145 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 3.2.9d: Develop Post-Harvest Management Methods X X X X X MoA Farmer Orgs., MNIB CARDI, IICA, UWI Activity 3.2.9e: Increase Plant Propagation Capacity X X MoA Farmer Orgs. CARDI, IICA L e v e ra g in g T h e G ro w th S e c to rs Activity 3.2.9f: Support The Commercial Development Of Composting Units X X X X X MoA Farmers’ Orgs. GDB, Credit Unions, GBS Strategic Objective 3.3: Development Of Tourism And Hospitality Sector Activity 3.3.1: Refine Tourism Policy To Optimize Product Mix X X MoT/GTA GHTA CTO Activity 3.3.2. Optimize Cruise Tourism Targets And Increase Quality Of Tours And Site Amenities. X X X MoT/GTA GHTA Activity 3.3.3: Optimize & Ensure Quality of Yachting Product X X X GTA GHTA, Yachting Sailing Festival Activity 3.3.4: Increase Emphasis On Eco-Tourism X X X X X MoT, GTA MoEnv MoA Activity 3.3.5: Ensure Balance/ Sustainability Of Natural Environment Through Collaboration On Conservation Initiatives. X X X X X MoT, GTA MoEnv, Forestry, Fisheries OECS Sec Activity 3.3.6: Expand And Invest In The Promotion Of Annual Festivals X X X X X GTA MoF MoT Activity 3.3.7: Establish And/Or Strengthen Policy, Legislative Framework/Mechanism For Community Tourism/Eco-Tourism. X X X MoT GHTA GTA, CTA Activity 3.3.8: Advance And/Or Maintain Program To Improve Quality Of Service Of Hotel, Restaurants/Other X X MoT GHTA, GTA TAMCC Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 146 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 Tourist Facilities. Activity 3.3.9: Improve Monitoring To Ensure Authenticity Of Quality Of Local Content Of Activities, (e.g. Road-Side Fare, Cultural Shows, Events, Displays, Niche Destinations, esp. Carriacou). X X X X X MoT GTA MoH Activity 3.3.10: Improve Marketing Of Destination X X X X X GTA MoT, MoF CTA 3.3.11a: Market Grenada As A Competitive Tourist Destination GTA MoT, MoF CTA Activity 3.3.12: Host Public Awareness Campaign To Sensitize The Public On The Importance Of Tourism L e v e ra g in g T h e G ro w th S e c to rs Activity 3.3.13: Conduct study on obstacles to foreign investments into the tourism/tourism-related business X X GTA MoT GCIC, GHTA, GIDC Activity 3.3.14 Implement an investment strategy to attract foreign investment into the tourism and tourism-related businesses X X X X GTA MoT GCIC, GHTA, GIDC Activity 3.3.15: Conduct study on the geographic diversification of tourism facilities X X GHTA MoT GCIC, GHTA, GIDC Activity 3.3.16: Conduct study to develop strategies to effectively link tourism facilities and activities to optimize tourism earnings X X GHTA MoT GCIC, GHTA, GIDC Activity 3.3.17: Conduct study to develop strategies to increase room stock in high-end market segment X X GHTA MoT GCIC, GHTA, GIDC Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 147 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 Strategic Objective 3.4: Energy Development And Energy Security Activity 3.4.1: Use Cost Effective & Reliable Renewable Sources For Electricity in Areas off the National Grid. X X X X X Energy Division Non State Actors MoF, Mow, MoSD Activity 3.4.3: Employ Co-Generation Approach To Enable Reliable Energy Supply To Meet Growing Demand. X X X X X Grenlec Energy Division Ecera Strategic Objective 3.5: Improved Access To And Application Of Information And Tele-Communications Technology (ICT) And Management Activity 3.5.1: Construct Resource Center With Tele-Center Facilities With Online And Physical Libraries X X X X X Mow, ICT MoCD Activity 3.5.2: Expand Schools’ Computer Lab. Dev. Program X X X X MoE ICT Activity 3.5.3: Complete Implementation of E-Govt Initiative(S) X X X DPA ICT OECS Sec 3.5.5a: Create More ‘Hot Spots’ In Rural Communities X X X X X MoCD ICT Lime, Digicel, Flow 3.5.5b: Improve The Quality Of Internet Service X X Lime, Flow, Digicel ICT Activity 3.5.6: Promote E-Services Strategies 3.5.6a: Implement National E Governance Programs X X X X X DPA ICT/DPA ICT OECS Sec, CIDA Activity 3.4.7: Promote The Use Of ICT In Education 3.4.7a: Ensure It Is A Compulsory Subject In Secondary Schools X X X X X MoE ICT 3.4.7b: Install Wifi Services In Every Secondary School X X MoE ICT Lime, Flow, Digicel L e v e r a g i n g T h e G r o w t h S e c t o r s 3.4.7c: Provide Scholarship In ICT X X X ICT/MoE ICT NTA Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 148 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 3.4.7d: Monitor And Track All It Trained Personnel X X DPA NTA ICT 3.4.7e: Equip Schools With Proper Functioning Labs X X X MoE ICT MoF 3.4.7 f: Increase universal access to land line phone services X X X X X MoC CSO NSA MoSD, MoCD Strategic Objective: 3.6: Expand Micro, Small And Medium Enterprise Sub-Sector Activity 3.6.1: Facilitate Innovation And Entrepreneurship 3.6.1a: Promote Innovation Entrepreneurship Training in Curriculum X X X X MPE ICT GDB, GIDC 3.6.1b: Strengthen The Imani Program To Provide Skill To Youth X X MoYS NTA MoE 3.6.1c: Provide Incentive Packages For New Ideas X X X X X MoEd NTA Gcic Activity 3.6.2: Empower The Private Sector To Provide Leadership Activity 3.6.3: Explore Opportunities For Market Access Through Offshore /International Incubators X X X X X MoEd Cabinet MoFA Activity 3.6.4: Provide Technical Support For MSMEs X X GIDC, GDB, Credit Unions, Non-Trad Financial Institutions 3.6.4a: Provide Technical Support For Standards And Business Management Practices To MSMEs X X X X X GIDC Small Business Association (SBA) MoFA Strategic Objective 3.7: Other Services Sectors (Construction, Cultural, Financial, Professional) Activity 3.7.1: Provide Legal Framework to Promote Performing Arts Industry X MOLA Ministry Of Culture (MoC) GCA, Dance companies 3.7.1a: Review Existing Cultural Policy X X MoC/MOLA Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 149 Thematic Focus I Macroeconomic Stabilization - Engendering Resilience Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 To Help Protect Grenadian Culture L e v e ra g in g T h e G ro w th S e c to rs 3.7.1b: Enforce Copyright And Intellectual Property Right Laws X X The Courts Copyright Association Practitioners Activity 3.7.2: Provide Human Resource Capacity Building Training 3.7.2a: Train Industry Professionals X X X X MoC; Cultural Associations MoE 3.7.2b: Mobilise Resources To Create Awareness X X 3.7.2c: Establish Institutes (Private/ Public) To Identify Youth Talents X X X 3.7.2d: Strengthen The Administrative Structure Of National Organizations X X X Activity 3.7.3: Promote And Build The Capacity Of Construction Industry 3.7.3a: Promote The Use Of Local Consultants And Contractors In Undertaking Projects X X X X X Mow Labour MoCD, NTA Activity 3.7.3b: Encourage The Use Of Sustainable Methods On Projects X X Mow Activity 3.7.3d: Develop A Construction Sector Industry Council To Regulate & Promote Development in the Sector X X Cabinet NSA Mow Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 150 Thematic Focus II: Developing Competitiveness With Equity – Human Resource Development, Social Transformation And Social Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 P ro m o ti n g A n d I m p ro v in g H u m a n R e s o u rc e D e v e lo p m e n t Strategic Objective1: Accessible And Relevant Education And Vocational Training Activity 1.1: Renewed Emphasis On Vocational Training And Skills Development For School Leavers 1.1a: Offer Regionally Certified Vocational Courses X X MoE NTA TAMCC, 1.1b: Broaden Scope And Curriculum Of The Vocational Training School X X MoE NTA TAMCC Activity 1.2: Enhance The Quality Of Teaching And Learning 1.2a: Provide Four Weeks Of In-Service Training To All Untrained Teachers Before They Enter The Classroom X X X X X MoE NTA TAMCC 1.2b: Support Efforts To Have Teachers To Achieve Graduate Status X X X X MoE NTA TAMCC, UWI 1.2c: Provide Incentives To Retain Teachers In The System X X X X MoE MoF NTA Activity 1.3: Fostering Efficiency In The Educational System 1.3a: Strengthen/Improve Education Supervision, Planning/Management X X X MoE DPA TAMCC, UWI 1.3b: Empower The Administrative Staff To Provide Efficient Services X X MoE DPA PTAS 1.3c: Encourage The Private Sector To Invest In The Education System X X X MoE Cabinet 1.3d: Expand Infrastructure To Cater For The Necessary Changes X X MoE MoE, Private Consultants MoW 1.3e: Improve The Managerial Link Between The MoE And Schools X X X X X MoE NTA Police Service, PTAS 1.3f: Comprehensively Computerize The Data Bases In The MoE X X X X X MoE DPA NTA, UWI, TAMCC, ICT Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 151 Thematic Focus II: Developing Competitiveness With Equity – Human Resource Development, Social Transformation And Social Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 S o c ia l Tr a n s fo rm a ti o n A n d S o c ia l C a re Strategic Objective 2: Education For Competency Based Learning Activity 2.1: Transitioning Into Competency Base Learning X X X X X MoE Independent Monitor, School Admin. NTA, DPA, Schools Strategic Objective 3: Affordable Health Services Activity 3.1: Provide Easy Access To Health Care For Primary & Secondary Schools X X X X X MoH Independent Monitor, NSAs MoE 3.1a: Develop Compulsory & Free Health Clinics For All School Children X X MoH Independent Monitors PAHO, Who, MoE 3.1b: Aids Testing On World Aids Day X X X MoE/MoH SGU Strategic Objective 4: Improved Targeting, Coverage And Efficiency Of Social Safety Net Activity 4.1: Implement Effective Targeting Mechanisms 4.1a: Develop Clear Criteria To Assess Socio -Financial Status Of Disadvantaged Households X X MoSD NSA MoH, MoHo, 4.1b: Conduct Proper Research And Study At The Community Level For Better Screening Of Households X X MoSD NSA MoH, MoHo 4.1c: Enhance Community Based Selections With The Proxy Means Test X X MoSD MoF MoH, MoHo Activity 4.2: Strengthen The Monitoring And Evaluation Systems 4.2a: Train Officers To Monitor Social Safety Net Program Implementation X X MoSD NSA PAHO 4.2b: Set Realistic Benchmarks And Objectives For The Various Programs X X X X X MoSD NSA SGU 4.2c: Reduce Leakages In Programs By Reducing Amount Of Intermediaries X X X X X MoSD MoF SGU Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 152 Thematic Focus II: Developing Competitiveness With Equity – Human Resource Development, Social Transformation And Social Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Y o u th D e v e lo p m e n t Strategic Objective 1: Skills Development Activity 1.1: Provide A Mechanism For National Resource Development 1.1a: Conduct Needs Assessment Survey on Specific Needs Of The Youths X Cso/MoY 1.1b: Review The Human Resource Development Policy X MoE/MoY 1.1d: Strengthen Life Skills Training X MoY/MoE Activity 1.2: Provide Vocational Skills And Entrepreneurial Training 1.2b: Encourage The Formation Of Cooperatives Among The Youths X MoY 1.2c: Set Global Standards For Vocational Training And Entrepreneurial Development X MoY 1.2d: Pursue Public & Private Sector Partnership To Negotiate Scholarship Opportunities X MoY/MoE/ Private Sector 1.2e: Provide More Skills Based Training Through The Imani Program X MoY Strategic Objective 2: Youth Inclusion Activity 2.1: Establish A National Youth Forum 2.1a: Mobilise Young People For Constructive Engagement With Peers X MoY/ Media 2.1b: Provide A Permanent Platform For Youth To Be Heard/Taken Seriously X MoY 2.1c: Facilitate Consultation With Young People On An Ongoing Basis On Matters Of National Importance X MoY Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 153 Thematic Focus II: Developing Competitiveness With Equity – Human Resource Development, Social Transformation And Social Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Activity 2.2: Develop An Elderly Citizen Integration Program In Schools And Community Enterprises X Social Dev./ MoE Activity 2.3: Set Up A Youth Advocacy, Health & Leadership Succession Machinery X X MoY/MoH Strategic Objective 3: Financing For Business Activity 3.1: Create More Financing Opportunities For Youths In The Area Of Business Development X MoY/GIDC 3.1a: Provide Soft Loans For Small Business Development For The Youths X MoY/GDB 3.1b: Establish Enabling Environment For Business Cooperatives/Business Clusters X MoY/MoED & Co-Op. Strategic Objective 4: Creating Opportunities For Young Women Activity 4.1: Develop Policy/Mechanisms To Address Constraints Affecting Excluded And Marginalized Young Women X Social Dev./MoY Y o u th D e v e lo p m e n t Activity 4.3: Utilize The Skills Of Women Within The Community X Social Dev. Activity 4.4: Provide Micro Financing For Women To Expand Small Businesses X MoY/MoF/GDB Activity 4.5: Set A Male-Female Ratio to Recruit/Employ Persons In Key Sectors X Social Dev./MoY Strategic Objective 5: Strengthening Of Social Institutions Activity 5.1: Establish New Institution to fill institutional Gap For At-Risk Youth/ Young Adults X Social Dev. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 154 Thematic Focus II: Developing Competitiveness With Equity – Human Resource Development, Social Transformation And Social Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Activity 5.2: Construct At Least Two Centres For Juvenile Offenders X Social Dev. Activity 5.3: Provide Counseling And Establish Support Networks For Youth Confronting Challenges Of Adulthood X Social Dev./MoE To w a rd s G e n d e r E q u it y Strategic Objective 1: Bridging The Gender Gap Activity 1.1: Update Laws To Achieve Gender Equity 1.1a: Promote Awareness Of Existing Laws X LAs/ Min on Implement. 1.1b: Develop Capacity Of Appropriate Enforcement Agencies To Implement These Laws X Legal Affairs 1.1c: Draft And Enforce A Sexual Harassment Bill X X Legal Affairs 1.1d: Expand Action Under Domestic Violence/Child Protection Acts To Include Criminal Laws/Crime Against Women X Legal Affairs 1.1e: Implement A Gender Equity Legislation To Include Family Court, Child Support And Sexual Harassment X Legal Affairs Activity 2.1: Health & Family Life Education To Emphasize Sex And Gender Education X MoE Activity 2.2: Teenage Pregnancy Inclusive & Mandatory Program For Male & Females X MoE/MoH X MoH Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 155 Thematic Focus II: Developing Competitiveness With Equity – Human Resource Development, Social Transformation And Social Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Activity 2.3: Health Training Initiatives To Explore Key Factors Contributing To Gender Disparities In Health Activity 2.4: Contribute To Emotional Sexual-Reproductive Health Of Women X MoH Activity 3.1: Seek Technical Assistance To Provide Support/Counselling To Women/Children In Abusive Homes X Social Dev. Activity 4.1: Enhance Opportunities For Women To Meaningfully Participate In Economic-Social-Political Activities X Social Dev. Econ. Dev. Activity 4.2: Planned Parenthood Systematic And Inclusive Health Programs For Men And Women X X MoH Activity 4.3: Small Businesses Initiatives For Rural And Urban Women In Partnership With Public Cooperatives X GIDC/Social Dev. Strategic Objective 5: Promoting Gender Equity Through The Expansion Of Current Program Activity 5.1: Human And Family Life Education Development And Broad Based Implementation In Social Sectors X Social Dev. Activity 5.2: Women Employment Labour In Community Sustainable Business Programs X Social Dev. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 156 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 R u ra l, C o m m u n it y A n d P a ri sh D e v e lo p m e n t Activity 1.1.1: Support The Formation Of Community Groups In All Parishes 1.1.1a: Educate Residents About The Importance Of Working Together X X X X X MoE 1.1.1b: Encourage Neighbourliness X X X X X MoSD; GCoC 1.1.1c: Maintain Direct Communication With Community Groups Through Town Hall Meetings And Other Activities X X X X X Social Dev. Media 1.1.1d: Provide Financial Support For The Establishment Of Support Groups X MoF/ Social Dev. 1.1.1e: Form Clubs & Sports Groups In Communities For Community And Parish Development X Social Dev. Activity 1.1.2: Build And Develop An Active System To Source Grants And Funds In Support Of Community Development And Projects 1.1.2a: Develop Organization Within Each Parish To Write & Source Funding For Projects X Econ. Dev. 1.1.2b: Maintain Clear Record Of Community Meetings/Activities X Social Dev. 1.1.2c: Encourage Fund Raising Activities And Events X X X X X Activity 1.2.1: Ensure That Rural Communities Benefit Significantly From Programs & Courses In Vocational & Technical Training X X X X X NTA Social Dev. Activity 1.2.2: Decentralize Development And Encourage Community Based Development X X Social Dev Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 157 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Activity 1.2.3: Promote The Use Of Local Knowledge In Community Projects X Activity 1.2.4: The National Development Plan Should Be Community Focus Based X Social Partnership Forum Activity 1.2.5: Establish Parish Councils To Assist In The Development Of The Parish X Social Dev. Strategic Objective 2.1: Improved Local Governance L o c a l D e v e lo p m e n t Activity 2.1.1: To Empower Local Communities Through Mechanisms That Increase Citizen Access To Information NGOs 2.1.1a: Regular TV And Radio Programs To Inform Citizens Of Latest Developments Within The Country X Social Dev.. 2.1.1b: Consultations With Citizens (Town Hall Meetings/Forum) To Air Their Views On Policy Budgetary And Decision Making Matters X Social Dev. 2.1.1c: Improve Relationships Between Citizens And Local Government Through Formal And Informal Methods Of Interaction X Media 2.1.1d: Develop Effective Comm. Strategies X Activity 2.1.2: Building Local Capacity For More Effective Governance 2.1.2a: Promote More Self Sufficient Organizations through Supporting Policies X Social Dev. Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 158 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 2.1.2b: Create Programs That Build A Healthy Enabling Environment For Non State Actors X Social Partnership Forum 2.1.2c: Prioritize Capacity Building And Better Integrate It Into Development & Humanitarian Assessment Programs X Social Dev. 2.1.2d: Increase Effectiveness & Sustainability Of Local Capacity Building By Supporting Longer Term Programs X NGOs 2.1.2e: Establish Relationships Between International And Local NGOs X Strategic Objective 3.1: Improved Housing Availability And Access Im p ro v e d H u m a n S e tt le m e n ts Activity 3.1.1: Easy Access For Financing Of Mortgages 3.1.1a: Offer Special Loans through Financial Institutions Solely For Building Houses X GDB 3.1.1b: Create A Housing Soft Loans Program X X X Activity 3.1.2: Improve The Housing Scheme Plan 3.1.2a: Seek Private Funding For The Building Of Housing Schemes X GIDC; Social Dev. Housing Auth. 3.1.2b: Implement A Rent To Own Policy X 3.1.2c: Revise The Criteria For Allocation X Housing Auth. 3.1.2d: Include Special Constructed Houses For Physically Challenged Persons X Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 159 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Activity 3.1.3: Revamp And Expand The House Repair Program 3.1.3a: Proper Monitoring Of The House Repair Program X Social Dev. 3.1.3b: Engage In Public Private Partnership To Fund The House Repair Program X 3.1.3c: Create System To Ensure Proper Use Of Materials Distributed For Repairs X Strategic Objective 3.2: Improved Tenure Security And Land Markets Activity 3.2.1: Review Legislation 3.2.1a: Review Existing Laws To Make The Process Of Regularizing Land Tenure On Family Properties Reliable/Affordable X MoLA Ministries 3.2.1b: Implement A Project Aimed At Regularizing Existing Informal Settlements X X X X X MoHo MoCD MoW, PRC Activity 3.2.2: Provide Efficiency In The Land Market 3.2.2a: Promote Buying/Selling Of Land X 3.2.2b: Simpler And Easier Process For The Purchase And Transfer Of Land X Strategic Objective 3.3: Increased Environmental Health Activity 3.3.1: Increase Awareness 3.3.1a: Educate Public About Human Health And Disease That Are Determined By Factors In The Environment X 3.3.1b: Encourage Testing/Treatment X 3.3.1c: Implement Disaster Reduction Initiatives To Improve Environmental Health X Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 160 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 Activity 3.3.2: Invest In Research And Development In Environmental Health X X X Activity 3.3.3: Expand/Modernize Health Infrastructure To Improve Physical Environment In Which Services Are Delivered X Im p ro v e d H u m a n S e tt le m e n ts Activity 3.3.4: Focus on Primary & Preventative Health Care Programs that Complement Infrastructural Investments X X X X X MoH SGU, PAHO, WHO Activity 3.3.5: Improve The Returns On The Investments In Environmental Health X MoH MoF PAHO, WHO Strategic Objective 3.4: Urban Renewal Activity 3.4.1: Implement A Zoning Plan X Physical Planning NSA OECS Sec., Ministries Activity 3.4.2: Enhance Current Building Code X Activity 3.4.3: Implement A “No Squatting” Policy X X MoLA, Ministries with impact on EM E n v ir o n m e n ta l A n d S u st a in a b le N a tu ra l R e s o u rc e M a n a g e m e n t Strategic Objective 4.1: Sustainable Land Management Activity 4.1.1: Review The Convention On Biological Diversity (CBD) 4.1.1a: Review The National Biodiversity Strategy And Action Plan (NBSAP) X Environment 4.1.1.b: Implement actionable projects/ programs within the CBD X X X X X Environment NSA Ministries 4.1.1c: Coordinate CBD Implementation X X Environment NSA Ministries 4.1.1d: Implement The Nagoya Protocol X X Activity 4.1.2: Reduce Land Degradation Forestry/Lands 4.1.2a: Review National Land Use Policy X Envir. & Agri. Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 161 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 4.1.2b: Initiate Measures Towards Minimizing Impact Of Climate Change X X Agriculture 4.1.2c: Promote Re-Forestation In Key Areas X X X E n v ir o n m e n ta l A n d S u st a in a b le N a tu ra l R e s o u rc e M a n a g e m e n t Activity 4.1.3: Strengthen The Regulatory Framework for Sustainable Land Mgmt. 4.1.3a: Enact And Enforce Relevant And Existing Environmental Laws X X Environment & Legal Affairs Strategic Objective 4.2: Strengthened Community Co-Management Activity 4.2.1: Increase Environmental Awareness For The Sustainable Use Of Natural Resources 4.2.1a: Establish A National Sustainable Development Council X 4.2.1.b: Refocus the National Sustainable Development Council X Environment MoF Ministries, NGOs, CBOs, Schools 4.2.1c: Produce Documentaries, Newsletters; Conduct Weekly Education Programs X X X X X Environment/ Media Media, MoF, Intl Envir. Orgs. 4.2.1d: Promote The Use Of Environmentally Friendly Technologies And Practices X X X X Environment/ TTC Media, MoF, Intl Envir. Orgs. Activity 4.2.2: Develop Socio-Economic Activities 4.2.2a: Promote Equity In Benefit Sharing From Land Forest And Wild Life Resources X X X X X Environment/A gri. Media, MoF, Intl Envir. Orgs. 4.2.2b: Provide Adequate Compensation For Government Acquired Lands X X X X X MoF Physical Planning Unit (PPU) 4.2.2c: Encourage forestry department to play a leadership role in strengthening community management systems X X X X X Environment MoA Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 162 Thematic Focus III: Reducing Vulnerability – Natural Disasters, Environmental Management, Regional Development Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution(s) Partner Agencies 2014 2015 2016 2017 2018 4.2.2d: Encourage Diversification In Production To Reduce Over Dependents On The Limited Resources X X Agriculture 4.2.2e: Promote Measures To Quantify Nature’s Contribution To The Economy X X Agriculture/ MoF Activity 4.2.3: Create A Network For Local Agencies 4.2.3a: Collaborate Efforts Among Community Based Organizations X Forum - Social Partnership 4.2.3b: Encourage The Forestry Department To Play A Leadership Role In Strengthen Community Management Systems X X Forestry & Lands Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 163 Thematic Focus IV: Good Governance, Justice, Crime And Citizen Security Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 Strategic Objective 1.1: Democratization Of National Development Partners Activity .1.1.2: Prepare, Implement & Evaluate Performance Of Social Compact X X X Cabinet Social Partners Social Partners Activity 1.1.3: Fund The Monthly Social Partners’ Forum X X X Cabinet Social Partners, All Stakeholders OAS, EU Activity 1.1.1: Fund Public Education And Development Sensitization Activities Involving Social Partners, NGOs & CBOs) X X X X X Cabinet Social Partners MoF;, MoCD;, PM Ministry And Other Ministries Activity 1.1.4: Construct And Outfit The New Parliament X X X Cabinet Mow AUSAID, UAE Activity 1.1.5: Activate And Fund The Commission For Integrity I Public Life X X X X X Cabinet Mow PPP Strategic Objective 2.2: Making Constitutional Reform Work For National Development Activity 2.2.1: Establish Trust Fund To Finance The Work Of The Advisory Cmte X Cabinet MoF Activity 2.2.2: Fund National Consultation X X Cabinet MoF Activity 2.2.3: Set Up Machinery For National Referendum on The Constitution In 2014 X X X Cabinet MOLA OAS, NSAs Strategic Objective 3.3: Protecting The Integrity Of The National Financial Sector Activity 3.3.1: Achieve Seamless Integration Between National Practice & Requirements of Eastern Caribbean Financial Services Regulatory Com. X X Parliament, Garfin MoLA Office Of The Attorney-General, ECCB, OECS Activity 3.3.2: Satisfy Legislative Agenda For The Improvement Of Financial Environment X X Parliament, Garfin MoLA, AG Office, ECCB, OECS Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 164 Thematic Focus IV: Good Governance, Justice, Crime And Citizen Security Priority Area Strategic Measures And Supporting Actions Time Frame Responsible Entity Monitoring Institution (s) Partner Agencies 2014 2015 2016 2017 2018 Strategic Objective 4.4:Improving The Labour Relations Climate Activity 4.4.1: Review And Update The Labour Code X X Trades Union Council CIC, Employers’ Federation, GTUC Strategic Objective: 5.5: Engineering A New Public Service Activity 5.5.1: Implement Public Service Productivity Enhancement Program X X X X X Cabinet HR In Various Ministries, G Tuc, Dept. Of Labour, MoF Activity 5.5.2: Pilot Human Resource Audits In Selected Ministries Department Of Public Adm. (DPA) CIDA, Commonwealth Secretariat, OECS Secretariat Activity 5.5.3: Implement Training In Human Resource Policy And Strategy Activity 5.5.4: Develop Policy To Treat With Attrition, Contract Management, Overseas Travel & Employee Assistance X X X X X CIDA, Commonwealth Secretariat, OECS Secretariat, MoF Activity 5.5.5: Increase Automation & Innovation For Productivity Increase In Public Service Delivery X X X X X Activity 5.5.6: Increase On-Line Accessibility To Government Services X X X Strategic Objective 6.6: Deepen The Mainstreaming Process Of The Financial Sector Into The National Security Agenda Activity 6.6.1: Establish And Finance The Anti-Money Laundering And Counter Financing Of Terrorism Cmte X X X X X Cabinet National Security Adviser MoLA, AG; CoP Office, National Security Organs Strategic Objective 7.7: Improve The Reformation Capacity Of The Prison System Activity 7.7.1: Expand Existing Vocational And Life Skills Programs As A Vehicle For Eliminating Incidence Of Recidivism Among In-Mates At HM’s Prisons X X X X X Cabinet HM’s Prisons MoYS, NTA, MoNS, MoF, TAMCC, Final Document - November 2014 - Prepared by EconoTech Ltd. in Collaboration with the Government of Grenada 165 B IB L I O GRAPHY Central Statistical Office, “Labour Force Report, 2000”, Ministry of Finance, Grenada Central Statistical Office, “Labour Force Survey Report, 2013”, Ministry of Finance, Grenada Corporate Council on Education of Canada, “Academic Skills”, http://www.conferenceboard.ca/libraries/edu at 5:05pm on Wednesday, December 4, 2013 Griffith, Cyrus, Commissioner of Labour, “Labour Market Issues in Grenada – An Interview”, conducted at 8:15-9:12 at the Ministry of Labour on Thursday, December 5, 2013 Henry, Andre Vincent, PhD, “Alternative Growth and Poverty Reduction Strategy Management Action Plan, Non-State Action Panel”, March 2013, Grenada Jensen, Keld, “Hire for Attitude”, http://www.forbes.com at 5:31pm on Wednesday, December 4, 2013 Kairi Consultants, Country Poverty Assessment, Grenada, Carriacou and Petit Martinique, Published in Trinidad and Tobago La Grenade, Cecile, Dr. Her Excellency Dame, “Throne Speech 2013”, Houses of Parliament, St. George’s, October 4, 2013 Ministry of Education and Human Resources, “Strategic Plan for Education Enhancement and Development, 2006-2015” Ministry of Education and Human Resources Development, Tanteen, St. George’s, Grenada Ministry of the Prime Minister, “Information and Communication Technology – A Strategy and Action Plan for Grenada, 2001-2005”, Office of the Prime Minister, St. George’s, Grenada, June 10, 2002 Ministry of Planning, “Public Sector Investment Program 2012”, Ministry of Planning and the Economy, Port of Spain, Trinidad and Tobago, October 2011 Mitchell, Keith, Dr. Rt. Honourable, “2013 Budget Statement”, Ministry of Finance, Grenada Mitchell, Keith, Dr. Rt. Honourable, “2014 Budget Statement”, December 10, 2013, Ministry of Finance, Grenada Mitchell, Khesha, VP Business Development, “Entrepreneurship, Small Business and Access to Finance – An Interview”, conducted at 1:12-2:45pm at Grenada Industrial Development Corporation (GIDC) on Tuesday, December 10 2013 Non-State Actors Panel, “An Alternative Growth and Poverty Reduction Strategy for Grenada”, St. George’s, Grenada, March 2012 Grenada’s Growth and Poverty Reduction Strategy (GPRS), 2014 – 2018 Part 3:GPRS Agenda 166 Simons, Reynold, “Final Report of the Caribbean Labour Market Information System (CLMIS) Project, October 17-19, 2004” World Bank, “Grenada: A Nation Rebuilding – An Assessment of Reconstruction and Economic Recovery one year after Hurricane Ivan”, October 31, 2005 World Bank, “Monitoring and Evaluation, Some Tools, Methods and Approaches” World Bank, Washington, DC World Bank, “Influential Evaluations – Evaluations that improve performance and impacts of Development Programs”, The World Bank, Washington, DC From: Assessment of Progress Towards the Millennium Development Goals (MDGs) in Grenada Social Safety Nets http://www.unicef.org/barbados/Grenada SSNA Report.pdf From: Grenada Social Safety Net Assessment: http://www.gov.gd/egov/docs/reports/Grenada MDG Progress Assessment Report 2 010.pdf