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A. a.(1)(a) i) a)DocumentҲa1DocumentE+(ODocument Stylep//&=((2!*(F *  ׃  2qea2DocumentE+(ODocument Stylep//&=((2!*(*    a3DocumentE+(ODocument Stylep//&=((2!*(0     a4DocumentE+(ODocument Stylep//&=((2!*(   . a5DocumentE+(ODocument Stylep//&=((2!*(  2Ke p p ca6DocumentE+(ODocument Stylep//&=((2!*(  a7DocumentE+(ODocument Stylep//&=((2!*( ` ` ` a8DocumentE+(ODocument Stylep//&=((2!*( ` ` ` Tech Init"6Initialize Technical Style2"*(O2E  1 .1 .1 .1 .1 .1 .1 .1 Technical2 } -^ a1Technical+(OTechnical Document Style//&=((2#*( 4!     a2Technical+(OTechnical Document Style//&=((2#*( *    a3Technical+(OTechnical Document Style//&=((2#*('   a4Technical+(OTechnical Document Style//&=((2#*(&   28 $  .  a5Technical+(OTechnical Document Style//&=((2#*(&   . a6Technical+(OTechnical Document Style//&=((2#*(&!"  . a7Technical+(OTechnical Document Style//&=((2#*(&#$  . a8Technical+(OTechnical Document Style//&=((2#*(&%&  . 2e*j &Pleading2$6Header for numbered pleading paper*(O2E'(   ,#x  @;X@# X  y*dddyy*dddy HH1 HH2 HH3 HH4 HH5 HH6 HH7 HH8 HH9 H10 H11 H12 H13 H14 H15 H16 H17 H18 H19 H20 H21 H22 H23 H24 H25 H26 H27 H28   Ӳa1Right Par+(ORight-Aligned Paragraph Numbers(2/*(8)*@   a2Right Par+(ORight-Aligned Paragraph Numbers(2/*(A+,@` `  ` ` ` a3Right Par+(ORight-Aligned Paragraph Numbers(2/*(J-.` ` @  ` `  2Da4Right Par+(ORight-Aligned Paragraph Numbers(2/*(S/0` `  @  a5Right Par+(ORight-Aligned Paragraph Numbers(2/*(\12` `  @hh# hhh a6Right Par+(ORight-Aligned Paragraph Numbers(2/*(e34` `  hh#@( hh# a7Right Par+(ORight-Aligned Paragraph Numbers(2/*(n56` `  hh#(@- ( 2= 0a8Right Par+(ORight-Aligned Paragraph Numbers(2/*(w78` `  hh#(-@pp2 -ppp Ыx  @;X@<  9`("Courier 10cpiXx  @;X@<  9`("Courier 10cpiXixP7P,xA`&Univers (Scalable)TxP7P,xA`&Univers (Scalable)ixP7P,xA`&Univers (Scalable)c P7P) `(CG Times (Scalable)ixP7P,xA`&Univers (Scalable)2ow#|K Њ#ixP7P#u' JAMAICA Ã FY 1997 Development Assistance: $12,800,000 Introduction. The United States has a strong interest in the economic health and political wellbeing of Jamaica based on geographic proximity and significant trade and investment relations. Located 500 miles south of Miami, Jamaica is a longstanding, multiparty democracy and a Caribbean regional leader on issues of importance to the United States. Nearly twothirds of Jamaica's imports are from the United States. By assisting Jamaica in its development and maintenance of a strong, stable Jamaican economy, the U.S. Government protects existing U.S. investments and markets in Jamaica and fosters opportunities for expanding the already strong Jamaican market for U.S. goods and services. The U.S. interest in promoting a solid Jamaican economy and society is also based on shared regional security concerns (demonstrated by Jamaica's deployment of peacekeeping troops to Haiti), ties through immigration, and a common commitment to democracy. With more than onethird of Jamaica's population of 2.5 million living in poverty, sustainable, broadbased growth is critical to improving the standard of living of the poor to a level that can ensure longterm social and economic stability and economic growth for Jamaica. The Development Challenge. In 1995, the Government of Jamaica (GOJ) ended its formal 15year structural adjustment arrangement with the International Monetary Fund (IMF). Under Jamaica's structural adjustment program, the government implemented macroeconomic policy reforms that have laid the foundation for a marketoriented economy with emphasis on exports and investment. Tariff rates have been reduced, quantity restrictions eliminated, and price controls and food subsidies abandoned. These policy reforms, complemented by the liberalization of the foreign exchange regime (in September 1991), and improved monetary and fiscal policies, provide the basis for Jamaica to become a fully open, marketdriven economy, supported by democratic institutions. However, the significant progress made toward Jamaica's macroeconomic health is contrasted by deteriorating living conditions for the majority of Jamaicans. While economic growth has averaged one percent since 1991, it has been stagnant in per capita terms. Additionally, the increase in the numbers of poor people corresponds with one of the most unequally distributed incomes in the world. In view of these trends, Jamaica's challenge will be to ensure sustainable growth and participation by lowincome groups in the growth process. That challenge is intensified by Jamaica's large external debt (totaling about $4 billion, including $670 million to the United States), the servicing for which consumes greater than 40% of the GOJ's annual budget. Jamaica's leading source of foreign exchange is tourism, and most visitors are from the United States. Other principal foreign exchange earners (bauxite, sugar, and bananas) have suffered from world market declines. However, nontraditional exports have displayed a robust, upward trend and hold promise for the future. Jamaica's economic dependence on tourism, bauxite, and agriculture has generated a wide range of negative impacts on the country's natural resource base, including deforestation, soil erosion, pollution, and dwindling marine resources which threaten the very existence of these key sectors. Although Jamaica's health statistics are relatively good, chronic diseases, AIDS, and other sexually transmitted diseases are significant problems. Of extreme concern is a continuing dramatic decline in the basic educational level of the Jamaican population which compromises the ability of the work force to build a modern growthoriented economy. Although unemployment in Jamaica has decreased from 25% in the early 1980s to 15% in 1995, most labor is absorbed by the informal sector where wages are extremely low. Jamaica's longterm development prospects are dependent on its ability to provide equitable growth, reduce poverty, earn foreign exchange, conserve its natural resources, and generate productive employment for a healthy citizenry. With Jamaica's solid progress in macroeconomic reform and the new priority placed by the government and donors on poverty alleviation and reduction, USAID foresees a need for a continued, traditional development assistance program in Jamaica for five to eight years. Other Donors . USAID and the donor community pledged over $100 million in FY 1995 for development activities in Jamaica. The United States is the largest bilateral donor. Other major donors include: the World Bank, the InterAmerican Development Bank, United Nations agencies, the European Union, Canada, Japan, Netherlands, United Kingdom, and Germany. FY 1997 Program. USAID's overall goal is to assist Jamaica to achieve broadbased, sustainable economic growth. USAID's program strategy is to increase participation for equitable economic growth, to improve environmental quality and natural resource protection, and to achieve smaller, better educated families. These three priority areas emerged as a result of USAID's efforts to consolidate and concentrate its portfolio in critical areas where it could make a significant impact in coordination with other donors. USAID's previous experience and technical capabilities in these areas were also important criteria for the selection of these priorities. USAID's program is consistent with agency goals and supports U.S. interests. Increased economic growth and its equitable distribution will improve the purchasing power of Jamaican consumers in a country where demand for U.S. goods and services is already strong and has great potential for increasing. A stronger, more stable Jamaican economy also would reduce the strong trend of immigration to the United States (both legal and illegal). Implicit in improving Jamaica's environmental quality is the protection of the country's fragile land and shared Caribbean Sea resources, as well as threatened species which are important to maintaining biodiversity within the hemisphere. These benefits are shared by all who live in and visit Jamaica, including the Americans who make up the vast majority of Jamaica's visitors. Enhancing family planning and improving education will help create a productive population. Overall, USAID's program aims to help create a strong, balanced economy which in turn will protect existing U.S. investments in Jamaica and provide opportunities for a growing Jamaican market for U.S. products. If funding is reduced from planned levels, some activities would be jeopardized, including support for agricultural exports, urban pollution abatement, national park development, family planning, and AIDS and sexually transmitted disease (STD) prevention. Agency Goal: Encouraging Broadbased Economic Growth Jamaica has one of the most unequal patterns of income distribution in the world. Accordingly, USAID's program focuses on economic growth and equity. Activities carried out in 1995 generated significant results toward achieving broader, more efficient markets and increased economic opportunities through privatization, enhanced export production and improved services to tourism. Privatization of a construction company and vinegar plant has brought the total value of GOJ entities divested in 1995 to $40 million, exceeding USAID's target by 110%. USAID assistance to develop agricultural exports contributed to the production of 1,300 tons of coffee valued at $3.5 million. Supported by USAID, cocoa production in 1995 was 1,300 tons, an increase of 38% over the previous year. Under a USAIDU.S. Department of Agriculture program, 5,677 tons of produce were pre-cleaned for export to the United States, an 11% increase over the previous year. A USAIDfunded activity increased water supply to the key tourist area of Negril by 3.5 million gallons of water per day to enable expansion of tourism and to meet local demand. In FY 1997, USAID priorities will be completion of the privatization component, sustainability of the USAIDUSDA agricultural preclearance program, and completion of the USAIDJapan cofinanced North Coast highway.  Strategic Objective 1: Increased Participation for Equitable Economic Growth Agency Goal: Protecting the Environment USAID's program is targeted at conserving the resources upon which Jamaica's stable and sustainable longterm development depend. USAID's emphasis is to strengthen public and private environmental management organizations in Jamaica, to help develop a sustainable national park system, to improve agricultural management, and to upgrade sanitation and water services in key tourist areas. Significant results were achieved in 1995. With USAID assistance, a management plan was completed for Jamaica's first environmental protection area, Negril's 30,000 acre watershed. Its establishment is a critical step toward limiting the spontaneous development which is encroaching upon this key tourism area's fragile ecosystem. Visitors at two national parks established with USAID assistance exceeded the projected level of 75,000 in 1995. Jamaica's Natural Resources Conservation Authority delegated the authority to the Montego Bay Marine Park Trust to manage the Montego Bay Marine Park, an important precedent for local management of national parks and protected areas. A USAIDfinanced policy paper, that proposes a national protected area system for 30 % of the nation's land mass, is now being formally considered by the GOJ. When enacted, the policies embodied in this paper will have farreaching impact on the planning, protection and management of the nation's natural resources and biodiversity. In FY 1997, USAID's priorities will include establishment of parks and protected areas, sustainability of the watershed soil conservation program, and completion of a program to introduce appropriate sewage disposal solutions to lowincome families.  Strategic Objective 2: Improved Environmental Protection and Natural Resource Management Agency Goal: Stabilizing World Population Growth and Protecting Human Health USAID is helping Jamaica to develop sustainable health, family planning and education programs. USAID has had a critical role in Jamaica's family planning program, which has led to a decline in the total fertility rate from 5.6 live births per woman to 3.0 live births in the past 25 years. In 1995, a USAIDfunded media campaign resulted in a 33% increase in oral contraceptive sales and a 13% increase in depoprovera use. To reduce the spread of AIDS and STD, condoms are distributed at 72% of retail outlets, an increase from 67% in 1993. Eightythree individuals from two new target groups pastors and workplace supervisors received sensitization and counseling training on HIV/AIDS that will ensure a broader level of care and support for HIV/AIDS patients. USAID also supports the government's efforts to strengthen health care management and to ensure access by the poor. In 1995, with USAID support, a pilot hospital program led to cleaner pilot hospitals with more serviceoriented staff and motivated managers. Recentlyinstalled income assessors now assure that those who cannot afford to pay the new fees are not denied needed services. Hospital selffinancing, a USAID measure for improved management, rose to 12% in the reporting period, up from 10% in 1993. Hospitals have improved flexibility to budget and plan following the increase in fee collections. Other reform measures are having an impact on health care sustainability, with 81% of ambulatory care now being provided by private health workers and 78% of shortterm contraceptives being purchased by consumers. In FY 1997, USAID's priorities include shifting of financial costs of contraceptive prevalence from donors to the government and private sector, a further decrease in the growth of AIDS HIV transmission rates, and an improvement of literacy standards among young Jamaicans.  Strategic Objective 3: Smaller, Bettereducated Families Agency Goal: Building Democracy The USAID program also supports judicial reform. USAID chose to limit its judicial reform support after a 1991 sector assessment rated Jamaica's democratic institutions and practices as relatively strong. Instead of pursuing a strategic objective in this area, USAID has targeted specific activities including sponsorship of a forum that addressed electoral reform, a study of electronic voter registration and voting, and a program of judicial modernization under the Sustainable Justice Reform project. The project, which ends in 1996, has successfully improved court and justice administration, including programs for cost recovery, docket management, courthouse consolidation, administrative policy reform, public education and alternative dispute resolution. These efforts are expected to boost the level of confidence in the justice system. Other donors are assisting in the area of good governance. The IDB is financing GOJ administrative reform and United Nations Development Program (UNDP) is funding a study on improving GOJ operations.  Special Objective: Enhanced Democracy and Governance ' JAMAICA _ FY 1997 PROGRAM SUMMARY ă  XX #TxP7P# | ddx#\k ddx#\k | *@ @ *Encouraging Economic GrowthStabilizing Population Growth and Protecting Human Health Protecting the EnvironmentBuilding DemocracyProviding Humanitarian AssistanceTotal*  *USAID Strategic Objectives*    *1. Increased Participation for Economic Growth Dev. Assistance $3,910,0000 $148,000 $4,068,0000*l l *2. Improved Environmental Protection and Natural Resource Management Dev. Assistance $3,622,000 $3,622,000*z z *3. Smaller, Better Educated Families Dev. Assistance $605,000 $4,505,000 $5,110,000*z z *4. Other (Democracy and Governance)*            *Total Dev. Assistance $4,525,000 $4,505,000 $3,770,000 $12,800,000 `J%8USAID Mission Director: Carole Henderson Tyson  X m##ixP7P# ACTIVITY DATA SHEET ă PROGRAM: JAMAICA TITLE AND NUMBER: Increased participation for equitable economic growth, 532SO01 STATUS: Continuing PROPOSED OBLIGATION & FUNDING SOURCE: FY1997 $4,068,000 DA INITIAL OBLIGATION: FY1995 ESTIMATED COMPLETION DATE: FY1998 Purpose: To increase exports and investment, to expand sources of foreign exchange and employment, to diversify ownership and products, to deepen linkages between exporters and local producers, and to improve productivity and competitiveness, especially among small and micro businesses. Background: Jamaica's efforts to liberalize its economy and open its markets have laid the foundation for strong and vibrant growth. However, given Jamaica's heavy debt burden, coupled with its import dependency, special efforts to increase foreign exchange earnings through an exportoriented economic growth strategy will be required. Broad participation of all segments of the society in a tradeled growth strategy is required to minimize the negative social impacts of structural adjustment. This can be facilitated by emphasizing employment creation as an important element of the strategy. Despite positive policy reforms, the private sector response to date has been mixed. High interest rates, high inflation, high taxes, excessive government regulation, and low worker productivity are still inhibiting business confidence and investment. USAID Role and Achievements to Date: USAID support has included provision of technical assistance and training to Jamaican public and private sectors, and nongovernmental organizations (NGOs) to promote privatization, to increase foreign exchange earnings, and to assist microentrepreneurs and farmers. Divestment proceeds from privatization of GOJ public entities total more than $370 million since 1986. These have been used to reduce the fiscal debt significantly. Foreign exchange earnings in priority sectors supported by USAID have reached almost $510 million. Approximately 25,000 jobs, over half of which are women, have been created through USAID assistance. About 11,000 small and microenterprises have received training and credit assistance. Over 46,000 farmers have received assistance in improved crop technology raising their production and incomes. Improved water supply, sewerage disposal and road construction now provide expansion opportunities for the key tourism sector, protect the environment, and improve the quality of life for Jamaicans. Over 500 young men and women have benefitted from higher education opportunities here and abroad. Description: To achieve this strategic objective, USAID activities support broader, more efficient markets, improved export production, increased economic opportunities for lowincome families, improved services for the tourism sector, and training for a modern economy. Specific activities include: strengthening the Ministry of Finance's institutional capabilities in fiscal policy management; assisting with the privatization of major public holdings; promoting procompetition, intellectual property rights, and customs reform policies that facilitate free trade; providing institutional strengthening assistance to NGOs, e.g., private lending institutions, that support microenterprise development; supporting an NGOled urban renewal effort in the Inner Kingston area which aims to create jobs and improve the investment climate; helping to increase productivity and market development in key export sectors such as apparel, data entry, tourism and agricultural exports; improving infrastructure essential to tourism development; and increasing access for thousands of disadvantaged Jamaicans to employment, capital, education and training, infrastructure and appropriate technologies. Host Country and Other Donors: USAID, the World Bank and the InterAmerican Development Bank (IDB) have complementary activities in support of the GOJ's privatization and customs reform programs. Also, donor coordination has been strong between the Netherlands, the European Union, the IDB, the Multilateral Investment Fund, Germany, Canada, and USAID in efforts to develop the microenterprise sector. USAID and the United Nations Development Program cofinanced technical X0Í ÍX0Í Íassistance for a new division in the Ministry Finance, the Fiscal Policy Management Unit (FPMU), which provides institutional strengthening to improve the analysis, formulation, implementation and monitoring of fiscal policy. USAID and Japan are cofinancing five major infrastructure subprojects to increase investment in the tourism industry. Host country budgetary and inkind contribution for the activities included in this strategic objective has been $33 million to date. Beneficiaries: Approximately onethird of the Jamaican population is at or below the poverty line. This objective targets underprivileged, lowincome groups for assistance. Included in these groups are small and microenterprises, small farmers, and laborintensive industries employing a majority of women; and policy reform in areas such as privatization, customs and fiscal management which benefit a large portion of the workingclass population. Principal Contractors, Grantees, or Agencies: USAID implements activities through institutional contracts with U.S. firms including Clapp and Mayne, Harza Engineering, Coopers & Lybrand, and PeatMarwick; GOJ project agreements with the Ministry of Finance and the National Investment Bank of Jamaica, and grant and cooperative agreements with NGOs including the Jamaica Experters Association and the Kignston Restoration Company. Major Results Indicators: ` `  hh#(-pp27  <Baseline FTarget X` hx (#%'0*,.8135@8: