dec_2017c

48 49 topursue the targetofdeliveringsingle-digit interest rates forourmanufacturersandbusinesspeople.In2007, thepreviousgovernmentwasborrowingmoneyonthe international capitalmarketsat12percent.I tappedthe capitalmarkets inAugust thisyear andwasable toraise $1billion (US) at ratesas lowas4.5percent andnohigher than6percent.That’s investmentgrade interest rateson the international level.That reducesourdebt servicecosts and increases thespace for social invest- mentsandastronger safetynet for themostvulnerable.” BVM: Congratulations onyourpresti- giousaward. Couldyou shareyour thoughtsonbeingFinanceMinisterof theYear for theCaribbean,andhowit relates toyour leadership withinthe financial sector? MinisterShaw: “Thankyou.I considermyreceivingthat awardnot somuchasapersonal thing.I accepted iton behalf ofmygovernment,PrimeMinisterAndrewHolness, andthepeopleof Jamaica.Because theprogramwe’re implementingwiththe technical supportof the Interna- tionalMonetaryFund (IMF) requiresverytight fiscal con- solidationtoachieveourgoals fordebt reduction.Thishas beendescribedbyinternational analystsas the toughest stabilisationprogramme inrecentworldhistory.It implies asignificant level of sacrifice fromthepublicsectorwork- ers intermsofwageexpectations,andgenerallyfromthe citizensof thecountry.” “Primarily,theawardspeaks tothe fact thatwesuccess- fullycompletedan IMFeconomicreformprogramlast year inwhichwepassedall 15reviewswithout theneed for awaiverof anyof the reformcommitments.The MINISTRY OF FINANCE AND THE PUBLIC SERVICE, JAMAICA successful implementationof theprogrammehas enabledus toreduce thenational debt asapercent- ageofGrossDomesticProduct (GDP) from150per- cent fouryearsago,to115percentnow.Bytheend of this fiscalyear,thedebt toGDPratiowill bedown to108percent.Thegoal isalsotoboostgrowth. Thismeans thatwewill have toput anendtothe decade’s longstagnation inproductivity.Weneed todecrease thedeficit inproductive infrastructure and invest inourpeople.Inadditiontosharpdebt reduction,over thepast twoyearswe’veachieved a fall intheunemployment rate from12.7percent to11.3percentnow.Inthe lastyear,the labor force grewbyabout30,000people,and35,000newjobs werealsocreated.” BVM: Is thisdue to foreign investment?Newcom- paniescoming into Jamaica?Expansionof existing businesses? MinisterShaw: “It’sacombination.We’reseeing morevibrancyincommerceandtrade,locally,aswell asmanufacturing.Butwe’realsoaggressivelytar- getingthe tourismindustry.Wehaveapproximately 14,000additional hotel roomsbeingbuiltover the next fouryears.The first3,000arealreadyinthe ground,andwhenall arecompleted itwill addsome 30percent tothestockofhotel rooms in Jamaica, andenhanceemployment intourism.Theseare mostlyforeign investors;wehaveheavyinterestout ofMexico,Spain,other areasof Europe,andCanada. “WealsohaveaBusinessProcessOutsourcing sector.Theoff-shoreoffice isanotherwaytode- scribe it-call centersproviding informationabout goodsandservices,etc.Peoplemightphone from Canadaor theU.S.andsomebodyin Jamaicaan- swers thecall.Ina fewshortyears,it’sgrownto about25,000 jobs.Weexpect that todouble intwo years.Atmaturity,we thinkit canreach100,000new