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JAMPRO - National Export Strategy [Jamaica]

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    JAMPRO - National Export Strategy [Jamaica] JAMPRO - National Export Strategy [Jamaica] Document Transcript

    • Jamaica, a leading per capita export country known for its commitment to creativity, innovation and exceptional quality. September 2009 ISBN 978-976-610-849-6 The National Export Strategy of Jamaica was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC). www.jamaicatradeandinvest.org/nes | 1-888-429-5NES (1-888-429-5637)
    • 2 Table of Contents Foreword 4 The Honourable Prime Minister of Jamaica Messages 5 The Honourable Minister of Industry, Investment and Commerce The Honourable Leader of the Opposition Statements 7 The President, Jamaica Trade and Invest The President, Jamaica Exporters’ Association The Director-General, Planning Institute of Jamaica The Executive Director, International Trade Centre, Geneva Acknowledgements 11 SECTION 1: Why A National Export Strategy for Jamaica 14 Achieving Export-led Growth 14 • The Macro Picture • Figure - Key Economic Indicators • Chart - Main Destination of Exports Improving Export Performance 17 • National Export Performance 2002-2008, Goods • National Export Performance, 2002-2007, Services • The National Export Strategy and Jamaica’s Trade Agreements ° Multi-lateral Trade Regime ° New Trade Policy ° Impact of Trade Agreements on Export Performance Achieving Global Export Competitiveness 21 • Assessment of Jamaica’s Global Competitiveness • Competitiveness Performance: Industry Analysis National SWOT Analysis 23 Conclusions 25 National Export Strategy at a Glance 26 SECTION 2: Developing the National Export Strategy - the Process 27 • Development, Competitiveness, Client and Institutional Perspectives • Four Functional Gears of the Strategy • Priority Industries of the National Export Strategy • Industry Prioritisation • How the Strategy Addresses Manufacturing, Agriculture and Tourism Industries
    • national export strategy 3 Key Considerations 31 • Public Private Sector Partnership (PPP) • The Trade Support Network • Value Chain and Value Options • Stakeholder Perspectives and Strategic Considerations SECTION 3: Cross-Cutting Industry Strategies 33 Development Perspective • Human Capital Formation and Development Competitiveness Perspective • Innovation and Technology / Capacity Diversification • Transportation • Energy • Security • Trade Facilitation • National Image and Branding • Trade Promotion Client Perspective • Business Development and Export Readiness • Financing • Packaging • Quality Management • Trade Information Section 4: Priority Industry Strategies 59 • Agro-processing (Food & Beverage) • Aquaculture • Coffee • Education • Entertainment • Fashion • ICT • Mining and Minerals Section 5: Strategy Management 123 Institutional Support Strategy Management and Monitoring • Structure • The Approach and Focus • Priorities • Export Centres and Business Information Points (EC/BIPS) Glossary 130
    • 4 for ward The Hon. Bruce Golding, MP Prime Minister of Jamaica T he Government of Jamaica is totally will be the skilful execution of this National invested in the process to create an Export Strategy that will effectively position enabling environment for the trade Jamaica’s exports in target markets. and exportation of our many high quality products and services that can fetch Notwithstanding the vicissitudes of global premium prices in the global marketplace. trade and business, let us never cease to Looking forward, it is my belief that we can draw inspiration from our glorious history, significantly increase the levels of export which has defined us as a unique people, competiveness and sales by executing a a nation of world class competitors, who winning strategy fuelled by healthy doses have time and time again prevailed against of self-belief. incredible odds! In reflecting on the journey and efforts I congratulate all the stakeholders in this of all the benchmark countries in global critical process for wealth creation and trade and business - Singapore, Hong economic development. Let us never stop Kong, China, the United States and believing and working hard to make this Panama - one must acknowledge that vision a reality. the sensible, cutting edge systems and procedures innovated by these countries were rooted in a fundamental ‘can do’ philosophy. It is this ‘can do’ energy and collaborative spirit that all our producers and exporters must tap into, in order to make this National Export Strategy work, in partnership with all the relevant agencies of the State and our international partners such as the International Trade Centre and the European Union. As Prime Minister, I want to pledge my support to be a champion and a driver of this process. When all is said and done, it will be our shared belief in our capacity to innovate and produce that will drive the competitiveness of our export industry and create increased wealth for the nation. It
    • national export strategy 5 message The Hon. Karl Samuda, MP Minister of Industry, Investment and Commerce T he National Export Strategy In so doing, we can make Jamaica, in a represents an important policy tool in relatively short time, the undisputed trade the Ministry of Industry, Investment and export hub of the Caribbean, in a and Commerce that seeks to prepare the world without borders that affords the 21st Export Industry on all fronts - beginning century Jamaican businessperson the with the producer taking his goods and benefit of doing business with anybody he services to market, to the critical role of or she desires. This must be the mission the facilitators of trade who provide the of the NES. lubricant to make the process happen… all the moving parts in this process, I commend the continuing work of the synchronised and working in perfect Jamaica Export Council, Jamaica Trade harmony. and Invest and the Jamaica Exporters’ Association for their leadership role in This vision of a finely honed mechanism this arduous but important process that that accommodates every cog in the wheel requires the engagement of so wide a to work hard in pursuit of an export trade cross section of stakeholders. that is efficient, globally competitive, and a high revenue earner that contributes to Generations to come will remember us the overall development of the economy is kindly for our efforts in this initiative. the ultimate goal of the NES. In keeping with this, the Ministry of Industry, Investment and Commerce is committed to providing the requisite support to make the Strategy a resounding success. This National Export Strategy represents an important milestone in that journey to defeat the myriad of challenges that have stymied our progress. We now have a system where every player engaged in the process of packaging, processing and delivering a Jamaican good or service to export markets can collaborate cohesively and consistently!
    • 6 message Portia Simpson Miller, ON, MP Leader of the Opposition T he promulgation of a National Export The National Export Strategy also has to Strategy is a critical corollary to utilise visioning as a key tool in its execution. Jamaica’s sustainable economic We must begin to register trends and new development. In keeping with the intent, trails to blaze, if we want to remain ahead objectives and nature of the National of the curve, and to establish local centres Industrial Policy, the Tourism Master of production excellence to become Plan for Sustainable Development and and remain competitive. In this regard, most recently, the Vision 2030 Document, careful analysis will have to be given to the National Export Strategy will, in its areas of comparative advantage as well execution, highlight and emphasise those as competitive advantage - our cultural activities - inclusive of appropriate policies and creative assets spring easily to mind. - that are required to promote the export of Jamaica’s recognition as a brand - with indigenous value-added commodities to a respect to music, sports, cuisine and other wider market outside of Jamaica. saleable lifestyle commodities - must be underpinned by a robust set of policies and programmes that will enhance the Jamaica Trade and Invest (JTI), formerly national earning potential from these areas JAMPRO, presents a natural anchor for where we truly have both comparative and this strategy. Leveraging the relationships, competitive advantages. connections and networks that JTI has amassed over the years, to position and promote Jamaica’s export offerings, is Buoyed by these essential objectives, and precisely the purpose of the JTI. recognising as we do that the successful implementation of the National Export Strategy is at this point mission critical to In executing the strategy, I am sure the JTI our economic and social development, and its many partners and stakeholders we stand committed, as all Jamaicans at are aware of the multi-dimensional home and abroad should, to ensure that approaches that will have to be taken. our talent and expertise will be applied in These include the thorough researching the consultative and partnership processes and gathering of market intelligence for towards this goal. the consumer markets for the products we will seek to export. Of necessity will be the alignment of required standards for quality and supply with local benchmarks used to calibrate the production and manufacturing processes.
    • national export strategy 7 statement Sancia Bennett Templer President, Jamaica Trade and Invest A s the world seeks to recover from the and expanded to form the basis on which current economic crisis developing the Strategy will be communicated and countries, such as Jamaica, have monitored going forward. Additionally, been forced to take a renewed and strategic the NES will continue to be aligned in its look at the way in which we achieve implementation to the activities of the sustainable economic development goals Vision 2030 National Development Plan, as – key of which is a thriving export sector. well as the National Planning Summit (NPS) Jamaica Trade & Invest (JTI/JAMPRO), as and the Partnership for Transformation the country’s export promotion agency, (PFT). operates on the underlying premise that the development and implementation of Ultimately, it is our hope that the NES a comprehensive and forward-thinking will empower the Jamaican exporter National Export Strategy (NES), designed – existing and emerging, traditional & to boost the country’s export potential, is non-traditional, large & small - to better a significant element to the advancement penetrate international markets and take of the economic growth of our country. full advantage of the global opportunities. To this end, the Strategy seeks to ensure The NES provides a practical roadmap that our exporters are well-positioned of how Jamaica can and must achieve to efficiently respond to trade openings increased levels of economic development and market penetration initiatives by by focusing its limited, but extremely providing for the dissemination of quality valuable, resources on developing export business advice, training for prospective capacity in those sectors and areas in exporters and standardised, universal which the country has the greatest and value-added services being offered competitive advantage. In addition, the through island wide Export Centres and NES provides a functional network that Business Information Points. will address the cross-sectoral issues that need to be resolved in order to increase JTI, as it seeks to fulfill its primary functions our competitiveness in the global arena. of export and investment promotion – and in its ongoing participation in the The strategy of public-private sector development and implementation of partnership (PPP), which successfully the NES, will continue to work towards guided the development of the NES, establishing “Jamaica as the place of will continue to be employed in its choice to live, work, raise families and do implementation. The collaborative effort business”. between JTI and the Jamaica Exporters Association (JEA) will be further deepened
    • 8 statement Michael Lumsden President, Jamaica Exporters’ Association T he Jamaica Exporters’ Association International Reserve and increased (JEA) sees the National Export contribution to GDP, the NES will also help Strategy (NES) as an important in creating greater wealth for the nation by framework for the advancement of reducing the disparity between earnings Jamaica’s Export Industry. We believe that from exports and imports. with the successful implementation of the NES we will be able to realise the vision As part of Jamaica’s National Development of Jamaica being one of the leading per Plan, Vision 2030, the NES has set specific capita export countries in the Caribbean. goals to be achieved in the next five years and the JEA is committed to working The JEA is confident that the NES will with our partners on the National Export improve the standard of the export Council to realise these goals. industry by the implementation of industry strategies for more effective, efficient and We look forward to the continued globally competitive trade. The NES will collaboration with the Government also enhance the development of Jamaica’s of Jamaica, through the Ministry of export industry and business environment Industry, Investment and Commerce, the and improve the competitiveness of our International Trade Centre, multilateral firms. agencies and all the players in the Export Industry as we work together to build a Brand Jamaica is one of the most better Jamaica. recognisable brands internationally and it is important that we utilise the National Export Strategy to position Jamaican exporters of goods and services to capitalise on the opportunities which exist for Jamaican products and services in the international market, while at the same time strengthen Brand Jamaica to achieve a stronger positioning globally. The National Export Strategy will transform Jamaica’s export industry and improve our performance in our leading export markets. Through employment creation, export diversification, improved Net
    • national export strategy 9 statement Dr. Pauline Knight Act’g Director General, Planning Institute of Jamaica A s barriers to trade fall, nations with successful implementation of this key small domestic markets, such as export strategy which has been identified Jamaica, are able increasingly as a priority within the first three years of to achieve economies of scale through implementation of Vision 2030 Jamaica – access to large international markets. National Development Plan. Our ability to take advantage of export markets is fundamental to our economic The Planning Institute congratulates development and is enhanced by our the JTI for spearheading this initiative strategic geographic location, strong and pledges its support for its full Nation Brand and relations with the implementation. Jamaican Diaspora. The National Export Strategy represents a major initiative to improve Jamaica’s export performance by enhancing the trade and business environment, and improving the competitiveness of firms and industries. It will provide industry-specific measures to enhance key exporting industries, improve the bureaucratic processes for exporters, and strengthen a range of supporting services such as trade information and finance, export quality management, trade facilitation, branding, and trade promotion. As such, it is wholly consistent with the goals of Vision 2030 Jamaica - National Development Plan and is a key action for achieving international competitiveness on our path to becoming a developed country with a prosperous economy. As the agency established to stimulate, facilitate, and promote the development of trade and industry, the JTI is strategically positioned to ensure the
    • 10 statement Patricia Francis Executive Director, International Trade Centre (ITC) T he National Export Strategy of Jamaica should not stop. Rather, this consultative represents an important milestone process should be reinforced to keep the in the country’s drive to position key stakeholders engaged in the pursuit exports as a principal means to achieve of an export strategy that is relevant and further development, within the context that continues to respond to the country’s of the broader national goals. The Vision current needs and challenges. 2030 National Development Plan, which specifies international competitiveness This strategy document is not an end in as a key area for the country’s national itself. Whilst the purpose of the strategy development, has served as the beacon is to provide an agreed and transparent and the inspiration for Jamaica’s National architecture for the export industry to Export Strategy. flourish, it will make an impact only through its implementation. The end of the The strategy design process has been a design phase thus marks the beginning challenging, but rewarding experience. It of an even more challenging chapter – has engaged the expertise and the insights the implementation of the initiatives and of a large number of practitioners at the activities elaborated in the strategy’s plan policy, institutional and enterprise levels in of action so that the targets, the objectives a consultative forum over many months. and the impact are achieved. It has taken into account the constraints and the concerns of those who have an Jamaicans are right to feel proud of this impact on export development and export important achievement. International competitiveness, and built upon mutually Trade Council (ITC) is equally proud to agreed opportunities. The result is a highly have been Jamaica’s partner throughout detailed, specific and realistic strategy that the process. We pledge our commitment will serve as the roadmap for enhanced to continue providing excellent support export performance, and the socio- and assistance in line with our vision of economic benefits that this promotes. It achieving “Export Impact for Good”. is truly a national export strategy made by Jamaicans, for Jamaicans. The National Export Strategy is not written in stone; nor is the national and international trading environment static. New challenges will surely emerge. The public-private dialogue that the export strategy initiative has strengthened
    • national export strategy 11 Acknowledgements T he National Export Strategy was whose indomitable spirit in many ways developed under the leadership of have come to symbolize the character of the Minister of Industry, Investment this Private-Public Sector collaborative to and Commerce with the invaluable increase Jamaica’s exports to the World. contribution, dedication and commitment of a wide cross-section of the Jamaican We sincerely thank Mrs. Kennedy for her Export Community and the Trade Support tireless efforts and inspired leadership and Network. These individuals and stakeholder the insightful knowledge and boundless groups, drawn primarily from across the energies of incoming President Michael eight focus industries governed by the Lumsden. It goes without saying that Strategy, spent long hours in extended the support of the JEA Secretariat led by consultative and strategy sessions, the General Manager, Jean Smith has been results of which constitute the substance nothing short of remarkable. of this National Export Strategy. From start to finish, the approach and To them, and the many other individuals, methodology employed in the design of businesses and organizations, the Export the Strategy has been premised around Council offer its grateful thanks for the a sincere commitment to build strong contribution of time, resources and intellect consensus and broad stakeholdership. to produce and finalize this definitive In this regard, the leadership of JTI’s National Export Strategy document. President Robert Gregory and Deputy President, Lisa Bell has been exemplary. The Strategy owes a lot to the Ministry We are also grateful for the indefatigable of Industry, Investment and Commerce, contributions of Andrea Reid, who which is championing this initiative at the buttressed the work of the NES Project policy level; as well as to the JEA and its Team, which met weekly to review the outgoing President Marjorie Kennedy, progress of the initiative. Commendations should also be paid to Arlene Martin and Carole Rowe, two of the consultants on the Strategy Development Project, who facilitated the many consultation and validation sessions, and JTI Corporate Communications which edited the many iterations of the draft technical document. Jamaica owes much to the GOJ/EU Private Sector Development Programme Marjorie (PSDP), which provided partial funding Kennedy for the NES, as well as to the International
    • 12 acknowledgements Trade Centre (ITC) in Geneva, which has entities which are critical members of the been central to the development and trade support network and wider export implementation of the strategy. community: The NES has been developed on the Ministry of Industry, Investment & Commerce process, methodology and technical Jamaica Trade and Invest assistance of the ITC. Jamaica Exporters’ Association The Planning Institute of Jamaica Private Industry Organisation of Jamaica Jamaica Manufacturers’ Association Small Businesses Association of Jamaica Bureau of Standards of Jamaica Factories Corporation of Jamaica JamaicaBusinessDevelopmentCorporation University of the West Indies Scientific Research Council Owen Skae, Trade Board Ltd. ITC consultant makes a point to Ministry of Finance & the Public Service NES Project Team. Jamaica Customs The Strategy development and Office of the Prime Minister (Planning & implementation is being managed jointly by Development) Jamaica Trade and Invest and the Jamaica Urban Development Corporation Exporters’ Association. The Strategy fits NationalExport-ImportBankofJamaicaLtd. under the “International Competitiveness Development Bank of Jamaica Outcome” of Vision 2030, Jamaica’s Ministry of Transport & Works National Development Plan. Ministry of Energy Ministry of Mining & Telecommunications The development of the National Export Mines & Geology Division Strategy has been a one-year process Jamaica Bauxite Institue involving public and private industry Jamaica Constabulary Force entities; some of which are members of Port Authority of Jamaica the Jamaica Export Council. The Council Ministry of Health & Environment is an independent body comprising Ministry of Foreign Affairs & Foreign Trade representatives of the public and private National Environmental Planning Agency industries, charged with the execution of Ministry of Agriculture the Strategy while acting in an advisory Ministry of Information, Culture, Youth & capacity to the Government and private Sports industry stakeholders. HEART Trust / NTA Jamaica Bankers’ Association The Council comprises representatives of JamaicaCulturalDevelopmentCommission the following public and private industry CaribbeanRegionalNegotiatingMachinery
    • national export strategy 13 Jamaica Deposit Insurance Corporation Ministry of Finance & the Public Service Jamaica Stock Exchange Jamaica Customs Jamaica Employers’ Federation Office of the Prime Minister (Planning & Shipping Association of Jamaica Development) Customs Brokers Association & Freight Urban Development Corporation Forwarders Association of Jamaica NationalExport-ImportBankofJamaicaLtd. Jamaica Chamber of Commerce Development Bank of Jamaica Ministry of Transport & Works The specific industry strategies emerged Ministry of Energy from the work of dedicated teams for each Ministry of Mining & Telecommunications of the priority industries, which met for Mines & Geology Division numerous consultations. There were over Jamaica Bauxite Institue eighty (80) participants from the private Jamaica Constabulary Force sector alone. Port Authority of Jamaica Ministry of Health & Environment The Strategy was validated at a stakeholders Ministry of Foreign Affairs & Foreign Trade workshop held on March 17, 2009 at National Environmental Planning Agency the Jamaica Pegasus Hotel in Kingston Ministry of Agriculture attended by one hundred and fourteen Ministry of Information, Culture, Youth & (114) persons comprising individuals from Sports firms and organisations in the public and HEART Trust / NTA private industry: Jamaica Bankers’ Association JamaicaCulturalDevelopmentCommission Recording Industry Association of Jamaica/ CaribbeanRegionalNegotiatingMachinery JACAP Jamaica Deposit Insurance Corporation JamaicaReggaeIndustryAssociation-Music Jamaica Stock Exchange Cluster Jamaica Employers’ Federation CaribbeanAgribusinessAssociation(CABA) Shipping Association of Jamaica FreightForwardersAssociationofJamaicaLtd. Customs Brokers Association & Freight Jamaica Association of Dramatic Artists Forwarders Association of Jamaica Jamaica Fashion & Apparel Cluster Jamaica Chamber of Commerce Ministry of Industry, Investment & Commerce Jamaica Trade and Invest The National Export Strategy has received Jamaica Exporters’ Association the endorsement and support of the Planning Institute of Jamaica following key private industry entities: Private Industry Organisation of Jamaica Jamaica Manufacturers’ Association • Jamaica Chamber of Commerce Small Business Association of Jamaica • Jamaica Manufacturers’ Association Bureau of Standards of Jamaica • Private Sector Organisation of Factories Corporation of Jamaica Jamaica Jamaica Business Development Centre University of the West Indies • Small Businesses Association of Scientific Research Council Jamaica Trade Board Ltd.
    • 14 1. Why a National Export Strategy for Jamaica? Jamaica’s National Export Strategy is based on (i) the sustainable use of resources as key deliverables in the current imperative for achieving export-led growth (ii) initial five years of the Strategy, by: export performance, (iii) global competitiveness and (iv) the current international context that combines the • Contributing to overall GDP growth by increasing current global economic situation as well as the trade the export sector’s contribution to GDP from one- environment. fifth to one-third by 2013; The National Export Strategy, whilst not a panacea, • Increasing the export sector’s contribution to proposes actions and responses to these perennial overall employment generation thereby improving challenges, and lays out a coherent road-map to grow the livelihoods of marginalised groups; and sustain exports that create wealth and engender • Achieving greater diversification of the export real economic development. As such, it is one of the industry by: pillars of the National Development Plan, Vision 2030. • Attaining higher value addition in all priority Jamaica’s National Development Plan, Vision 2030 industries; which states: • Increasing the current value of non-traditional exports of goods by 2013 through increased “Jamaica, the Place of Choice to volumes and higher value addition; Live, Work, Raise Families, and Do • Increasing the contribution of services exports as a percentage of overall exports with particular Business” emphasis on developing professional services and creative industries; provides the framework for the vision of the National Export Strategy which seeks to make: • Increasing penetration in existing markets and accessing new and emerging markets; “Jamaica, a leading per capita • Maintaining a ‘competitiveness mindset’ at all levels to ensure the reliability and sustainability export country known for its com- of the industry. mitment to creativity, innovation The Government and the productive sector have long pinpointed a range of industry-specific weaknesses and and exceptional quality.” a number of cross-cutting issues which have impeded the global competitiveness of the industry, and the The success of the strategy requires broad stakeholder achievement of export-led growth. These form the basis collaboration that will inform policy formulation by of the strategy and are identified later. the Ministry of Industry, Investment and Commerce, which in turn supports high levels of performance by our exporters, buttressed by a highly facilitative trade Achieving Export-led Growth support network. With its near-shore location to the largest consumer As a point of emphasis, the vision reinforces creativity, market in the world, and exports accounting for one-fifth innovation and quality as central to the formidable goals of GDP, Jamaica regards itself a trading nation with vast of the National Export Strategy. It posits the creation of prospects to exponentially increase its current levels of quality of jobs, national economic development and the exports to the world. As the second-biggest market in the
    • national export strategy 15 Caribbean Community (CARICOM) trading bloc, it boasts • An independent Central Bank, an economy that is highly open and diverse relative to its • A well-developed, globally connected Financial Caribbean neighbours, but which has traditionally been Services Industry, an under-performer in export volumes, resulting in a widening trade deficit. • World-class accounting and auditing standards, • Diminishing bureaucracy and red tape, a major Yet, when considered in the context of the overall sub- mandate of the Ministry of Industry, Investment and optimal performance of Jamaican exports, there have Commerce, been some notable achievements. The services industry, led by tourism, has attracted sizeable foreign investment • And, a well-developed infrastructure for business, this decade and export-free zones across the island are characterised by sophisticated technology, superior encouraging further industrial diversification to achieve air transport infrastructure quality and world-class a positive impact on productivity, fostering increased ground and highway transportation links. and improved exports. The International Financial Institutions (IFIs) have consistently praised Jamaica’s efforts to entrench While the strategy seeks to contribute to export-led macroeconomic stability and raise growth by improving growth, in the context of the current macro-economic the business climate over the medium-term. The situation, the Strategy is expected in the first few years Government in dialogue with the Private Sector has to contribute to economic recovery and to stem the formulated a medium-term strategy, supported by likely impact of the economic downturn. The design and multilateral organisations, aimed at putting the island implementation of the Export Strategy is therefore timely on a path of robust growth while reducing poverty and as it may assist in minimising the projected economic unemployment. The Government’s main objectives are fallout in Jamaica due to the current global crisis. to achieve: The Macro Picture • Reduced public debt/GDP ratio by fiscal consolidation and elimination of budget deficit by In the face of the external turbulence from the global 2010/11. Servicing of debt absorbs one-third of financial meltdown, which has had a major impact on the public spending or 13% of GDP at the expense of North American markets on which Jamaica depends for badly needed capital investments; half of its export revenues, as well as invisible earnings, • Private sector led growth through the expansion of the stance of the Jamaican export industry is to be capacity in the manufacturing and export industries prepared and proactive. Jamaica enjoys political stability and ultimately boosting job creation; and broad consensus on market-oriented reforms. • Prudent monetary policy to reduce inflation The Government has committed to maintaining a expectations and maintenance of adequate foreign stable macro-economic framework to improve business exchange reserves to underpin confidence in confidence and create predictability, whilst keeping national currency; inflation in single digit range. The macro-economic • Social sector priorities including the Millennium environment also seeks to facilitate tax reform and Development Goals (MDGs) and targets on human continued support for: development/opportunity, as well as law and • A real exchange rate, crime; • A relatively efficient tax system, • Enhanced business climate and a reformed tax
    • 16 1 why a national expor t strategy for jamaica? system to increase efficiency and effectiveness, should improve overall competitiveness and productivity, thus higher revenue collection; while taking concrete actions on debt overhang, job creation and tackling corruption. • Further improvement in the quality of governance through better public sector management and a There are risks and uncertainties facing all Caribbean trimmed bureaucracy. nations in an increasingly complex and interdependent Jamaica faces challenges such as 10% unemployment, world. However, a genuine commitment to growth- brain drain and urban crime, which in some areas enhancing reforms underpinned by prudent macro- imposes ‘opportunity costs’ in terms of lost production, policies, and a well-designed and far-reaching National health expenses and private spending on security. Export Strategy, provides the foundation for future prosperity. A World Bank study, ‘Jamaica: The Road to Sustained Growth’, argues that to achieve self-sustaining growth, it Figure 1. Key Economic and Financial Indicators for Jamaica, 2004-2008 Projections 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Nominal Gross Domestic Product (GDP) (in billions of national currency) 550 643 707 801 964 1087 Total GDP (in millions of U.S. dollars) 8,957 10,200 10,700 11,500 13,020 13,812 Nominal GDP growth1 10.9 17.0 10.0 13.3 20.3 12.7 CPI inflation / (period average) 12.8 14.8 7.4 12.1 17.2 9.7 Real GDP growth 1 0.4 2.0 2.4 1.0 2.7 2.8 Short-term interest rates (in percent) 14.7 13.0 12.3 12.4 Real interest rates (inflation-adjusted) 1.9 -1.8 4.9 0.3 Nominal exchange-rate depreciation 2 1.0 6.2 3.5 5.4 5.3 5.0 EMBI** secondary market spread (bps) 405 301 320 522 Government operations Budgetary revenue and grants4 31.2 29.0 29.9 31.2 30.0 31.0 Budgetary expenditure 4 36.6 32.7 35.5 35.7 35.0 33.5 Budget balance 4 -5.4 -3.7 -5.6 -4.5 -5.0 -2.5 Public debt stock ~ (US$ billion) 5 12.5 13.1 14.1 14.5 15.3 15.9 Government debt4 139.5 128.4 131.7 126.1 117.5 115.1 Average interest rates on public debt 14.3 13.0 12.2 11.8 14.2 13.3 Gross financing needs ** (US$mn) 6 2,900 2,700 3,300 2,200 2,700 2,400 As percent of GDP 32.4 26.5 30.8 19.1 20.7 17.3 Fiscal years run from April 1 to March 31; * Annual percent change; / Consumer price index (in percent); # Versus the U.S. Dollar; ** Emerging-Market Bond Index (basis points above the US Treasury bonds); // Percent of GDP; ~ Includes domestic and external liabilities; ** Defined as public industry deficit, plus amortisation of medium and long-term public debt and short-term debt at end of previous period. Sources: Bank of Jamaica, Ministry of Finance and IMF. Area: 11,425 km; Population: 2.7mn (2007); Population density: 238.2 people/km; GDP per capita: US$4,140 (2007); Currency: Jamaican dollar (2008 average US$1=J$72.67).
    • national export strategy 17 10% 4% 4% 11% Chart 1. Main Destination of exports (percent of total 2007) Canada - 17% 20% 17% UK - 11% Netherlands - 10% Germany - 4% France - 4% 34% Others (incl. China, Norway, Russia and Venezuela) - 20% USA - 34% Sources: IMF, Director of Trade Statistics Improving Export Performance • While total import growth for partner countries increased in value by 16% (2003 – 2007), Jamaica’s National Export Performance, 2002-2008, exports during that period increased by 17%. Goods • Despite Jamaica’s exports as a percentage of the total value of world exports moving in pace with Despite some modest movement in economic growth global imports, the country continues to lose market between the 6-year period 2002-2008, Jamaica’s export share to its competitors and slipped in world export performance continues to be inconsistent. ranking from 118 (2006) to 121 (2007). • Total goods exports increased from USD1,117.3 To further illustrate, eight of the top ten export product million in 2002 to USD2,641.0 million in 2008. groups grew at rates lower than the world rate of • With the exception of the years 2002 and 2003, growth in export for the product; only beer and ethanol Jamaica’s total goods export (in value) has steadily experienced growth rates greater than the world growth increased since the year 2000. rates for the period.
    • 18 1 why a national expor t strategy for jamaica? Table 2.1: Growth Rates of Jamaica’s Top Goods Exports (value), 2003 – 2007 Annual growth Annual growth Exportedvalue of world imports invaluebetween Share in world Ranking in Product 2007, between 2003-2007, exports, % world exports USD thousand 2003-2007, %, p.a. %, p.a. All products 2,223,961 17 16 0.02 121 1. Alumina 1,102,177 13 21 8.71 3 2. Light petroleum distillates 326,601 107 33 0.1 67 3. Aluminium ores (bauxite) 203,888 22 26 10.31 4 4. Raw sugar 100,504 8 18 1.48 11 5. Scrap Metal 76,456 183 21 0.39 32 6. Ethyl alcohol 60,144 9 42 1.81 9 7. Rum 45,902 15 8 4.39 7 8. Beer 37,059 25 10 0.36 26 9. Coffee (not roasted) 27,797 -3 22 0.21 28 10. Yams 17,366 2 9 6.65 3 11. Aircraft parts 10,562 11 16 0.02 53 12. Bananas including 9,223 -13 9 0.12 43 plantains, fresh or dried Source: TradeMap (Data analysed for period 2003-2007) Export movement has seen a corresponding shift in value chains to ensure that Jamaica maximises from its contribution to national GDP. Since 2003, there was a exports, such as our traditional bauxite/alumina industry, resultant decline each year except for 2004 and 2006 where it is estimated that over 50% of our exports are during which the lowest contribution was 14.6% (2003) commodity products with significant value addition and the highest 19.2% (2006). It is not all negative outside of our shores. Consider also our valuable coffee though. There has been consistent performance in exports, where only 10% is roasted and an even smaller some industries, such as mining (bauxite, alumina and percentage undergoes further value addition, as the gypsum), limestone, some non-traditional crops (yams majority is exported as green beans. There have been and fish), manufactured goods and furniture. Significant achievements in product diversification and a trend growth was recorded for mineral fuels, coffee products, towards value addition as non-traditional exports now rum and all other beverages.1 The greatest declines command an increasing share of total exports; moving were in apparel, tobacco, and cut flowers. from 20% of exports in 2002 to almost 30% in 2008. But, there is still much to be achieved. The point is reinforced Primary products constitute the largest component of by low value addition products like bauxite and alumina, Jamaica’s exports. The National Export Strategy makes which have constituted on average 63% of total exports a compelling argument for the development of global (2002 to 2008), as illustrated in the table (2.2). 1 One export category recording significant growth, but which is not sustainable was scrap metal.
    • national export strategy 19 Table 2.2: Export Product Mix (US$M) 2002 2003 2004 2005 2006 2007 2008 Total Exports 1,117.3 1,195.5 1,404.5 1,531.5 1,983.4 2,254.2 2,641.0 Traditional exports: 868.8 931.1 1,081.9 1,160.0 1,337.7 1,500.4 1,546.3 • Agriculture 55.0 55.9 56.6 25.6 46.4 42.3 31.8 • Mining 711.0 779.5 896.7 1,021.2 113.2 1,306.5 1,364.5 • Manufacture 102.7 95.7 128.5 131.1 135.9 151..6 150.0 Non-traditional exports: 228.7 235.3 283.3 341.6 610.1 519.6 1,094.7 • Food 82.7 94.4 90.3 88.4 94.2 92.1 122.7 • Beverage & Tobacco 48.9 25.9 32.9 44.5 49.2 52.6 49.6 • Crude Materials 5.0 5.9 27.4 18.8 104.0 81.3 25.2 • Other 119.3 108.9 132.4 189.7 362.5 527.8 897.3 Non-traditional exports as % 20 19 20 22 31 29.3 41.5 of total exports Ratio of traditional exports to 78 78 77 75 67 68.3 58.5 total exports Source: PIOJ, 2007. National Export Performance 2002-2007, Services Jamaica’s export of commercial services has increased The relatively sparse information on Jamaica’s trade over the last five years.2 Although imports of services in services has been gleaned from the World Trade have increased as well, the trade balance has been Organisation’s Statistics database, which points out that favourable for the country. Table 2.3: Jamaica’s Trade in Commercial Services, 2003 - 2007 (US$M) Service Flow 2003 2004 2005 2006 2007 Commercial services (Services Exports 2,103 2,262 2,296 2,613 2,566 excluding government services) Imports 1,538 1,677 1,676 1,969 2,072 Exports 474 497 451 459 447 Transportation Imports 618 648 718 885 961 Exports 1,355 1,436 1,545 1,870 1,834 Travel Imports 252 286 249 273 294 Other commercial services Exports 274 327 299 284 285 (Commercial services - Travel & Transport) Imports 667 743 709 811 817 2 2008 data was not available.
    • 20 1 why a national expor t strategy for jamaica? 1% Figure 2.1: Average Share of Jamaica’s Export Services 11% 2% by Category 1997 - 2002 2%2% 1% Royalties and Licence Fees - 0% Communications - 11% 17% Financial - 1% Insurance - 1% 64% Computer and Information - 2% Personal, cultural, and recreational services - 0% Other Business Services - 2% Government Services - 2% Transportation - 17% Travel - 64% Construction - 0% Source: CARICOM Central Banks – compiled and graphed by A-Z Information Jamaica Limited (from the Services Sector Study, Jamaica) The National Export Strategy in the context of Jamaica has made commitments under the General Agreement on Trade in Services (GATS), in respect of Jamaica’s Trade Agreements the following industries – tourism, business, education, health, recreation, transport, and financial services Multilateral Trade Regime (despite participating in negotiations concerning the Jamaica has been actively engaged in the multilateral financial services industry, Jamaica has not ratified trading environment since 1963, when it joined the the GATS Fifth Protocol on Financial Services) (WTO, General Agreement on Tariffs and Trade (GATT). Jamaica 2004). acceded to the WTO in 1995, following the Uruguay Round of Agreements, which not only established the New Trade Policy WTO, but also launched a new era of multilateral trading arrangements. In 2002, the Government adopted a New Trade Policy in response to forces of globalisation and liberalisation. In 1991, Jamaica began the implementation of several The Policy has three objectives: (i) expand and diversify trade reforms, starting with the removal of all quantitative exports by facilitating growth of domestic capital; (ii) restrictions on imports and exports.3 Since 1997, tariffs steadily reduce the ratio of imports to exports; (iii) have also been reduced. As a member of CARICOM, increase the flow of net positive returns from investment Jamaica applies a Common External Tariff (CET) on (MFAFT, 2001). non-CARICOM exports, which ranges between 5-20% for products and 0-5% on capital goods (WTO, 2004; The National Export Strategy is aligned to the New WTO, 2007; World Bank, 2003). Trade Policy, adopting the objectives of expanding and 3 There is one exception. Quantitative restrictions were instituted in 1999 against the importation of Chlorofluorocarbons (CFCs), in order to satisfy Montreal Protocol treaty obligations (WTO, 2005:49).
    • national export strategy 21 diversifying exports, as well as reducing the trade deficit. primarily to the exports of fuel-grade ethanol. The development and implementation of the export strategy identifies the priority industries best suited to The vision for each industry serves as the basis for diversify and expand exports, as well as the issues to guiding trade policy positions for current and future be addressed in the business and trade environment to negotiations, against the background of the erosion of facilitate the transformation. preferences under the CBTPA, CARIBCAN and Cotonou Agreements, which may result in loss of market share Trading Agreements and Market Access for traditional (and non-traditional) product exports. The erosion of such preferences, therefore, demands The specific trade agreements that have been negotiated enhanced competitiveness on the part of our producers, are brought to bear in the strategy design as the basis for and the challenge lies in selecting and engaging in those selection of export markets, for example, the negotiated industries which are more efficient, and which generate Economic Partnership Agreement (EPA) that presents equal or higher levels of employment resulting in a myriad of opportunities for Jamaica to access the increased market share for Jamaican products (Bloom USD64 trillion EU market. Preliminary research shows et al, 2001). that there is a growing middle class taste for the exotic Caribbean products in several of the newer member Achieving Global Export states of the EU. Also, trade promotion and information Competitiveness strategies that were based on trade agreements provide a framework for agencies like Jamaica Trade and Invest, Against the context of globalisation in a world without working in collaboration with the industry bodies like borders, Jamaica as a small emerging economy, the Jamaica Exporters’ Association, to unearth the embraces global trade with a mix of supreme confidence relevant market information (market size, value and in its products and services and a pragmatic acceptance access requirements, language, labelling, packaging that it does not have the capacity or economies of scale and distribution channels), necessary to secure niche to stake out a competitive edge as a volume producer in markets for exportable Jamaican products and services the global marketplace. Rather, the position has been in short order. postulated that the nation best pursues a path of a ‘high value niche producer’, as has been demonstrated over Impact of Trade Agreements the years in the intricately produced, top of the line, on Export Performance well-packaged and unique coffee, sauces, spirits, juices, fashion, software, medicines such as CANASOL and the Jamaica has experienced strong export performance nutraceuticals, as well as in the professional services under negotiated trade agreements. provided by Jamaican nurses, doctors, accountants, athletes, entertainers, among others. Those who hold to CARIBCAN: Over the period 1992 to 2002, trade this ‘high value niche producer’ position, argue that value between Canada and CARIBCAN beneficiaries has lies not only in the price, but in the ‘quality uniqueness’ grown significantly, from CAN329 million to CAN716 of the design, materials, presentation, packaging and million, an increase of over 200%. branding, which serves the purpose of making Brand Jamaica products and services synonymous with quality CBI: Jamaica’s imports under CBI increased significantly, worldwide and distinct global relevance and appeal. by approximately 62%, to USD246 million. This surge in exports to the US under the CBI was attributable
    • 22 1 why a national expor t strategy for jamaica? Assessment of Jamaica’s Global demand is increasing. The Underachievers category classifies national exports that though experiencing Competitiveness growth, are losing market share to competitors in product groups with increasing global demand. Jamaica’s global competitiveness rankings have Achievers in Adversity classifies national exports that declined in recent years. The Global Competitiveness while are experiencing growth, global import demand is Index (GCI), provides a holistic ranking based on those on the decline. And, Declining sectors classifies national features of the Jamaican economy which positively or exports that are losing market share in globally declining negatively affect competitiveness. sectors. The 2006 index shows that Jamaica had 3 Champions 2004-05 2005-06 2006-07 (which commanded the highest share of total national Global exports at 8.2%), 4 Underachievers, 5 Achievers in Competitiveness 65 (/104) 70*(/117) 67 (/125) adversity and 8 Declining Sectors. The majority of Index (GCI) Jamaica’s exports (13 out of the 21 HS4 product groups Macroeconomic examined or 61%) were thus in the Declining Sectors Stability 83/104 99/117 118/125 and losers in growth sectors (Underachievers). sub-index Business Of particular note is that the Underachievers group Competitiveness 52 (/93) 53 (110) 54 (/121) commanded the second largest share of national exports Index (BCI) at 4.5% as well as the largest world market share of exports at 7%; whilst the Achievers in Adversity group commanded 0.0% of world market share of exports and The statistics bear out that Jamaica’s overall 0.6% share of national exports. competitiveness in the global environment has been improving (taking into consideration variation in sample Moreover, all products classified as Champions were size of the various surveys, as well as variability in sub- traditional export products and fall within the mining/ indices composition). While there has been deterioration manufacturing industry. Other traditional exports in the macro-economic stability sub-index, there have amongst the top ten national exports (namely banana been improvements in the Business Competitiveness and coffee) were from the agricultural industry and, Index ranking. were losers in declining markets. The majority of the Underachievers and losers in declining markets tended Competitiveness Performance: Industry to be non-traditional exports but spanned across a variety 4 of industries including agriculture/food, crude materials, Analysis apparel and beverages.5 The Achievers in Adversity consisted of both traditional and non-traditional export The International Trade Centre Competitiveness Index products and industries. groups exports (products) by global performance level in the categories of Champions, Underachievers, Achievers The performance of product groups was taken into in Adversity and Declining Sectors. account for the industry selection exercise to choose industries of focus for the first phase of the NES. The Champions category classifies national exports that experience growth in industries for which global import 4 This analysis of Jamaica’s exports between 2001 and 2006 uses the TradeMap tool. COMTRADE statistics were used for the calculations of market and world shares. Jamaica’s export figures are based on mirror figures from importing countries because Jamaica does not report to COMTRADE. 5 ESSJ 2006 6.4
    • national export strategy 23 National SWOT Analysis STRENGTHS Supply Side Issues (Border-In) • Competitive REER. • Sophisticated infrastructure, especially • Well-developed legal & regulatory framework and telecommunications and transportation. incentive regime. • A range of institutions and programmes supporting private industry development (SMEs in particular). Demand Side Issues (Border-Out) • Relatively high levels of e-readiness, • Recognised country/product brand, in particular e-governance and legislation for electronic for niche products, such as coffee. transactions among institutions. • Proximity to the US and other key export • Well-trained, English-speaking labour force markets. (general). • Favourable trade agreements. • Possesses the attributes of successful professional service exporters (e.g. India). Issues of Development • Entrepreneurial culture. • Political stability and democratic government. • Strategic geographic location (to major markets Business Environment (Border) and for international transport). • Upgraded infrastructure (ports, roads, • Strong FDI performance and resultant existing telecommunications). linkage opportunities. WEAKNESSES Supply Side Issues (Border-In) Business Environment (Border) • Low labour productivity and relatively poor total • Lack of enabling macro-economic environment. factor productivity. • High transaction cost of doing business. • Lack of skill set to match current and emerging • Low access to capital, including venture capital, needs. and high cost of capital. • Small market deters market seeking FDI (with • Restrictive labour laws. exception of recently privatised industries, such as Telecommunications). . • Service deficiencies to the industries and clients; Demand Side Issues (Border-Out) Many private industry associations and industry • Weak response to trade opportunities and risks. specific associations are weak and in need of institutional strengthening and funding. • Changing global trade regime (erosion of preferential access and opening up of markets to competitors).
    • 24 1 why a national expor t strategy for jamaica? National SWOT Analysis (continued) • Poor urban/rural and regional planning. WEAKNESSES (continued) • Limited stretch of (positive) brand reputation across all export goods and services. Issues of Development • High crime rate increasing cost of doing business. OPPORTUNITIES Supply Side Issues (Border-In) Demand Side Issues (Border-Out) • High levels of FDI facilitate technology transfer • Demand for resource-based and other raw and further (infrastructural) development. materials exports in emerging markets. • Development of Professional services export. • Demand for cultural and creative goods and • Existing and emerging technological innovations services that are uniquely Jamaican. for improving productivity and efficiency. • Erosion of preferential trade agreements. • Trade agreements – CSME, EPA, which may foster increased intra-regional trade. THREATS Supply Side Issues (Border-In) Issues of Development • Work-force attitude/culture. • Dependence on non-renewable, traditional energy sources, especially in the face of rising oil prices. Demand Side Issues (Border-Out) • Investors’ favourable perceptions of other business destinations (for example, Mexico, Puerto Rico, Malaysia, Thailand, Hong Kong, China). • Erosion of preferential trade agreements. • Low cost of labour in emerging markets.
    • national export strategy 25 Conclusions industry practices, coupled with a lack of market diversification and penetration to potential emerging The Jamaican economy is the most diverse and markets; sophisticated economy in the English-speaking • No integrated national framework for export Caribbean; and as such, requires economic planning development across key industries and institutions that ascribes to the new global context and the high (both public and private). levels of responsiveness that the imperatives and challenges of globalisation demand. The Vision 2030 Plan squarely positions the National Export Strategy In the current global trade environment, a fragmented in the matrix of Jamaica’s development agenda and is approach to export development is no longer appropriate indicative of the Government’s comprehensive approach and will not lead to enhanced competitiveness to development. and sustainable improvement in Jamaica’s export performance. The NES is also a model of modern public-private sector partnership, as it fits into other partnership initiatives The National Export Strategy therefore seeks to such as the National Planning Summit and the Social comprehensively address these issues, by: Partnership discussions that include the labour unions • Positioning the export sector to contribute to and Opposition party. Jamaica’s overall development within the context of Vision 2030 Jamaica by addressing international Executing the National Export Strategy will require, competitiveness; (i) more effective and efficient allocation and use of recurrent funds, (ii) private sector investments, and (iii) • Removing impediments to competitiveness within better planning and coordination among the producers/ the export sector (includes capacity development exporters and the relevant agencies of the State to and diversification, human capital development, reduce duplication, emphasise quality and ultimately, cost of doing business and export facilitation, realise the vision of the NES. and market access and promotion) by harnessing Jamaica’s creativity and innovation; Jamaica’s export performance has been influenced/ • Allocating scarce resources to the priority industries characterised by: and business support services that enable current • Over-reliance on traditional exports, which are exporters to export more, potential exporters to declining in market share yet still constitute (68%) begin exporting and aspiring exporters to move of total goods exported, and continued dominance from idea to execution; of a few commodities (bauxite and alumina (58%), • Engaging key stakeholders in the trade support sugar (5.6%),coffee, and rum; network in a participatory approach to formulate • Recorded services export sector dominated by and execute a national export strategy within a tourism; formalised, institutional arrangement. • Low value addition and lack of differentiation in traditional and non-traditional exports; • Over dependence on preferential market access (under the ACP/EU, CBTPA, CARIBCAN agreements) that has lead to uncompetitive
    • 26 strategy at a glance Vision Jamaica is a leading per capita export country known for its commitment to creativity, innovation and exceptional quality. Development Perspective The export sector’s contribution to GDP will increase from one-fifth to one-third by 2013. This will be reflected in increased employment and the improvement of the livelihoods of marginalised groups through greater diversification of the sector and by pursuing a path of a high value niche production. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) A competitive workforce prepared through Increased penetration of existing markets an integrated approach to education and Increased strategic alliances between and entry into new markets. training. exporters and facilitators in the movement of Increased understanding of market goods and services. Productivity and efficiency indicators access opportunities provided for under improved. Road and rail infrastructure improved. negotiated trade agreements. More R&D and technology innovations Energy sources diversified. Increased participation of the private applied in firms. sector in trade policy formulation. Reduced business risk through effective crime management. Trade and marketing support in export markets improved. A more business-oriented trade facilitation environment. A nation branding framework is in place to manage the country’s reputation, brands, goods and services. Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Increased provision of data- Affordable and accessible driven trade information: Capacity-building of exporters In-depth training in key financing made available. enhanced: areas such as export plan • Country/market reports. PACKAGING development, marketing, • Global standards and financial management, pricing, • Product reports. Affordable quality export certification. ICT and E-readiness. packaging made available • Export opportunities. • Quality production and locally. assurance systems. • Compliance with international standard requirements. Institutional Perspective The Jamaica Export Council is a legally established entity that is adequately resourced to coordinate export policy, facilitate export capacity and manage the implementation of the Export Strategy.
    • national export strategy 27 2. Developing the National Export Strategy - the Process In a highly collaborative and multi-sectoral way, the NES The Client Perspective seeks to galvanise all stakeholders - public and private - to agree on a set of common objectives, backed by “An achieved vision of how current, potential and coordinated actions; mindful that the limited resources aspiring exporters, and other key enterprises and players available for export development are utilised optimally; in the value chain perceive that the strategy meets their and that the actions executed are not only short-term, needs.” but also long-term, i.e. a balance is struck between commercial and developmental actions. The Institutional Perspective Traditionally, nations have pursued export “An achieved vision of how each member of the national competitiveness by focusing on issues relating to trade trade support network perceives its relevance, in terms policy, such as securing market access, negotiating of how the strategy consolidates/reinforces its position, preferential treatment through trade treaties and by facilitating its work and enhancing its capacities and protocols, protecting local industries and promotion. competence.” The NES suggests a broadening of the focus to embrace a development paradigm given the imperatives of The Competitiveness and Development perspectives are globalisation, where the ultimate objective is to improve further defined as the functional gears in the strategy conditions under which enterprises do business, thereby development, and are illustrated below: contributing to economic and social development. Jamaica’s National Export Strategy is benchmarked on Border-In (supply-side) the Strategy Development Model of the International issues refer to: Trade Centre (ITC) in Geneva, Switzerland, which has been our sponsor in this initiative. Consider the following • Capacity development four perspectives that are captured by the National Export Strategy, which seeks to include all stakeholders • Capacity diversification in a vibrant and highly successful Jamaican Export sector: • Skills and entrepreneurship development The Development Perspective “An achieved vision of how all stakeholders, including taxpayers, politicians, government ministries, labour unions, NGOs and the donor community perceive that Border (business environment) the strategy meets their needs” issues refer to: • Infrastructure The Competitiveness Perspective • Trade facilitation “An achieved vision of how business associations, advocacy groups, potential foreign buyers and investors • Cost of doing business perceive that the strategy meets their needs.”
    • 28 2 developing the national expor t strategy - the process Development isues refer to: Border-Out (demand-side) • Poverty alleviation issues refer to: and employment • Market access • Regional • In-market support development • National promotion • Environmental sustainability • Gender equality The Four Functional Gears of the Strategy The three competitiveness gears of strategy must reinforce each other, while powering the development gear. Result: A combined competitiveness-development focus.
    • national export strategy 29 6 Priority Industries of the National Export • Quality Management Strategy • Packaging • Trade Information The National Export Strategy may be described as • Trade Promotion and In-Market Support targeted or focused. The client perspective of strategy design encourages the focus on specific industries, • Nation Branding rather than trying to address the entire export sector. These are the priority industries included in the first Industry Prioritisation phase of the National Export Strategy: Jamaica is fortunate in that there are potentially 40 1. Agro-processing (Food & Beverages) sub-industries that could become world-class exports, 2. Aquaculture however in formulating a National Export Strategy due 3. Coffee recognition was given to the resource requirements necessary to implement it. At the start of the strategy 4. Education design process in April 2008, prioritisation was required 5. Entertainment based on justifiable criteria.7 6. Information Communication Technology (ICT) 7. Fashion These are the priority industries identified at the start of the National Export Strategy design process: 8. Minerals and Mining 1. Accounting and Auditing These are the cross-cutting industry issues addressed 2. Agro-processing (Food) by the National Export Strategy: 3. Aquaculture • Human Capital Development 4. Beverages • Innovation & Technology (Capacity 5. Education Diversification) 6. Entertainment • Cost of Business 7. Finance and Accounting i. Energy 8. Furniture and Building Products ii. Security 9. Fresh Produce • Trade Facilitation 10. Health & Wellness • Transportation (Infrastructure) 11. Information Communication Technology (ICT) • Market Access 12. Fashion • Business & Export Competency 13. Minerals and Mining • Finance 6 The Statistical Institute of Jamaica (STATIN) completed a comprehensive revision of Jamaica’s System of National Accounts in October 2008. The nation’s accounts were previously based on the United Nations 1968 System of National Accounts (1968 SNA).  The process revision resulted in changes in: concepts and definition and terminologies to name but a few. One such change in terminology was from Industry to INDUSTRY. 7 The criteria, which assessed current and potential future state, were • Contribution to GDP • Export performance • Alignment to Vision 2030 development objectives • Employment (considering quantity, quality and the location of jobs created or enhanced) • Linkages • Export Growth/Market Potential of the Industry (based on international demand as well as market feasibility and potential) • Potential Ability to Compete (product differentiation, price, value, reliability of supply, etc.) • Key Constraints inhibiting export success • Possible Scale of Resources Required within the industry (in particular as it relates to increasing the industry’s export performance)
    • 30 2 developing the national expor t strategy - the process Having engaged several stakeholder groups, the following the thirteen groups developed comprehensive strategies. industry prioritisation grid was developed:- Within a year, these groups met to validate the Strategy, the final hurdle before systematic execution Development Value according to strategy. Impact Addition, Contribution to Industries (GDP Export Overall Export Contribution, Performance Competitiveness Additional changes to the preliminary industry Employment) & Potential listing were (i) the separation of coffee from beverages based on unique challenges, Accounting and M H H (ii) the removal of fresh produce as this Auditing industry was being addressed under the Fresh Produce H H H more comprehensive All ACP Commodities (Agriculture) Programme and (iii) the integration of the Agro-processing H H H beverages within agro-processing. Aquaculture M H M During the annual revisions to the National Coffee M H H Export Strategy, there will be efforts to re- Education M M H engage the strategy groups for industries Entertainment H H H prioritised in the first round, and identify (incl. Dance, additional priority industries. Drama, Film, Music) How the Strategy Addresses the Fashion, Jewellery M H M Manufacturing, Agriculture and and Accessories Tourism Industries Finance & H M H Insurance Prioritisation is driven by a market rather Furniture and H M Hthan a production orientation. The selection Building Materials is confirmed by other programmes and (Manufacturing) studies that have also recognised these Information H H H groups. It should be pointed out that whilst all Communications manufacturing sub-industries have not been Technology (ICT) captured in the grid, it was the considered view of the strategy work groups that the Mining M M H priority issues pertaining to the Manufacturing Key: H- High, M– Medium, L – Low8 industry were effectively articulated and addressed in the cross-cutting strategies, and The stakeholder groups working with this paradigm of as such, a separate strategy would not be developed. a ‘combined competitiveness-development’ focus, set about the challenging task of developing strategies and Meanwhile, a related initiative has been conducted to action plans around thirteen specific priority export develop a strategy for the Agriculture industry covering industries, that would form the bedrock of the overall fruits and vegetables, roots and tubers, as well as herbs national strategy. During the process there were several and spices. This strategy is being integrated into the challenges in engaging some groups. As a result, eight of National Export Strategy, but was developed by another 8 Each Industry was rated based on the actual ranking (from figures provided for each criterion) in relation to other industries and sub-industries.
    • national export strategy 31 related project employing a wider approach and involving Value Chain and Value Options additional international partners. As it relates to tourism, the Master Plan for the Sustainable Development of The national export performance highlighted the need Tourism addresses the medium to long term plans for to diversify our exports towards higher value products this industry. based primarily on further processing. The growing trade deficit pointed to the need to reduce imports, which may It should be noted that while the strategy addresses a be achieved through greater domestic linkages. For specific number of priority industries at this stage, it is these and other reasons, the approach of developing expected that other industries will be incorporated as value chains for each industry and assessing these the Strategy implementation process evolves. against five value options was employed. For each of the priority industries, detailed industry Key Considerations strategies were designed using value chain analysis, which identified five value options to: A Public-Private Sector Partnership (PPP) • Acquire value by improving efficiency within The design of the Export Strategy required the the national component of the value chain participation of the traditional export partners and (and thereby enhancing the industry’s strategy makers in government, but the critical inputs competitiveness), such as group sourcing to came from the private sector. The strategy development reduce cost, or eliminating an intermediary; was therefore a strong PPP collaboration, where the • Retain value by reducing leakage from the private sector provided most of the content through national portion of the value chain, for example consultations in which the relevant public entities also sourcing locally what is now imported; cooperated. • Add value by developing new product lines and/ The Trade Support Network or extending the national component of the value chain, such as new beverage products; The agencies involved included those institutions • Create value by increasing production of that drive and influence policy, as well as the service existing or new product lines or by entering the providers. Under implementation, agencies will therefore value chains of related industries, like creating already be aware of the opportunities and constraints, film products from the dance and drama while the process would have engaged all the players industries; and in the full scope of export development, facilitation and promotion activities. • Distribute value within the economy by increasing the export industry’s direct As in some countries with successful export strategies contribution to such national development such as the USA and some developing countries goals as employment generation, poverty like Romania and the Philippines, where the legally reduction, rural and regional development, constituted entity with primary leadership is established gender equality and sustainability of the to execute the strategy, Jamaica also seeks to set environment. up a similar model with sustainable structures and processes.
    • 32 2 developing the national expor t strategy - the process This assessment using these five value options ensures These form the basis of the Monitoring & Evaluation of that the strategy and action plan remain focused on the the Strategy using the balanced score card methodology. premise that the industries and national objectives may However, these weightings are subject to change. be attained with a focus on increasing value. Each stakeholder perspective is also supported by Stakeholder Perspectives and Strategic several strategic considerations that are also aligned to Considerations the vision and objectives of the export strategy. The different stakeholder perspectives and the relative Within each of the four general framework areas importance of each were considered with the result being (perspectives), the strategic considerations were further a weighting of each. This ensures that the resources are prioritised. focussed on the area of highest prioritisation rather than being spread across many areas, ensuring results and Strategic considerations of greatest importance are: impact. Below is the result of the prioritisation. employment, capacity diversification (innovation and technology), human capital development, energy, security, The weighting for each of the perspectives is outlined in-market support, policy coordination and strategy below: management. The most important service needs of the • The Development Perspective: 20% export client were in the areas of business competency • The Competitiveness Perspective: 20% and finance. The table below shows the priority levels of • The Client Perspective: 25% all the strategic considerations. • The Institutional Perspective: 35% Development Perspective Competitiveness Perspective Strategic Consideration Priority Strategic Consideration Priority Employment 1 Capacity Development 2 Environment 3 Capacity Diversification (Innovation and Technology) 1 Geographic Distribution 3 Human Capital Development 1 Poverty Reduction 2 Infrastructure Development 2 Gender 3 Trade Facilitation 2 Energy 1 Security 1 Market Access 3 In-market Support 1 National Promotion 3 Client Perspective Institutional Perspective Strategic Consideration Priority Strategic Consideration Priority Client Focus Policy Coordination 1 • Business Development & Export Readiness 1 Strategy Management 1 • Finance 1 Capacity Development 2 • Trade Information 2 Service Delivery Coordination 1 • Quality Management 2 • Packaging 2 • Branding 2 Where 1= most important, and 3 = least important.
    • national export strategy 33 3. Cross-Cutting Industry Strategies Strategy-making is largely a matter of applying common collective bargaining environment. From 1994 to 2001, sense within a commonly understood and accepted unit labour costs increased twice as fast in Jamaica as framework in a process where the public sector in its major trading partners, without clear evidence of a establishes priorities among industries and the private comparable increase in labour productivity. sector establishes priorities within industries. This is especially important when it comes to addressing cross- Issues cutting issues that impede international competitiveness and export growth, where integrated responses are • No policy regarding establishing an education and required. This section is a compilation of the macro training system that supplies the skills needed by and cross-cutting industry strategies identified. NOTE: industries. Where issues are to be addressed by other national programmes, there are no corresponding activities in • Output/employment is not being considered when the Action Plans. determining where to channel funds for education. • Low investments in education, skills and health 1. Human Capital Formation and Development which prevents the achievement of improved and sustained worker productivity. The Context: At the heart of the global competitiveness agenda is the critical matter of human capital development. • Unavailability of skilled workers and concomitant This premised on the creation of a confident educated unavailability of middle to upper level managers. Jamaican population, the construction of a world-class • No promotion of productivity in the workplace, in Jamaican workforce driven by creativity and innovation, key industries or at a national level. and the systematic reversal of the brain drain. • No policy regarding the ‘brain-drain’ of qualified Significant concerns have been expressed about the human resources. productivity of the Jamaican workforce. Some argue that there is an absence of a productivity culture, Support Planned / Ongoing Initiatives meaning the general population is yet to grasp the connection between the individual value inputs of In addition to the strategic initiatives outlined in the workers and productivity as a basis for competitiveness action plan, the following supporting national initiatives and improved living standards. This is evidenced by, are recommended: among other things, demands for wage increases that bear no relationship to labour productivity. Furthermore, Enhanced human capital development resulting from simple behavioural adjustments that could substantially adopting a strategic and integrated approach to training, improve productivity are ignored at the level of the education, labour and resource allocation. individual worker and employer (punctuality, good record of attendance and absenteeism) as well as governments • Advocate for further outlay in human capital (and (e.g. the need to address the impact of traffic congestion infrastructure) by the government to build a more on productivity). advanced skill set to attract higher value added investment, which will achieve greater productivity Real wages are also rising faster than labour productivity. and competitiveness. Unit labour costs and real wages have been growing faster than labour productivity in Jamaica over extended • Focus on improvements in basic educational areas, periods. This in part, is attributable to the competitive such as mathematics and English.
    • 34 3 cross- cutting industr y strategies • Improve foreign language training. Increased productivity through retention of human resources Improved productivity in all industries • Support the creation of an improved business • Develop a permanent institutional framework for environment to help promote better quality jobs for identifying, promoting and reviewing national values graduates and fostering entrepreneurship. and attitudes to instill a productivity culture in Jamaica (from the company to institutional level). action plan owner/support objectives measures targets initiatives entities timeline Human Capital Development Enhanced Number of 9 such • Implement industry/sector-specific training and Lead: Y1 – Y2 human capital training and program- education programmes in each priority sector: Ministry of development education mes by Education o Develop/Enhance curricula for: that meets programmes year 3. Partners: • Coffee: Certified Coffee Extension officers the human that are linked • Music: business management, technical areas • Respective resource to actual and (mixing, production) Clusters requirements projected • Film: Trained Executive Producers • Respective of the key labour needs • Fashion: Enhance and integrate the different Training/ sectors. (in priority/ curricula now in place Education target • Mining: tertiary Institutions industries). • Aquaculture: tertiary o RADA • Agro-Processing: tertiary • ICT: o EMC (a) Secondary (CXC) o UTech (b) Tertiary o UWI o Facilitate the registration and/or accreditation of • UCJ each programme by the relevant authority. • HEART/ o Design tracer studies for programme tracking. NTA • Ministry of Labour Increased Productivity Bench- • Provide support for firms and industries to benchmark Lead: Y1 – Y2 productivity index or marks to be to international standards. Productivity across priority productivity established Centre • Develop performance-based pay models that firms may sectors. indicator by in Y1. Partners: adopt. industry. • Provide technical assistance to firms to select and • Ministry of implement the model that best suits their enterprise. Labour • JMA • Develop an institutional framework for the national values and attitudes programmes. • PSOJ • JEF • OPM • Sector entities
    • national export strategy 35 2. Innovation and Technology / The extent to which there are linkages within and among Capacity Diversification industries, based on potential to extend value chains, may also generate opportunities for diversification. On the other hand, the absence of these linkages and The Context: Achieving increased value of exports efforts to foster these may stifle innovations that lead to and transforming the profile of exports to reflect greater diversification. portions of value added products will require the critical expanded capacity to diversify production and delivery of goods and services. Issues Capacity diversification deals with the value option of • Inadequate investments in Science and Technology creating value where new product lines are developed institutions that are geared to priority productive or new industries are entered (for target industries). industries (such as Agro-processing and ICT) and Innovation in products and services as well as supporting industries (such as packaging). technologies and methodologies are critical to fostering • Inability to finance those costs associated with the capacity diversification. new products and new lines. Major inhibitors are (i) lack of investment in science and • Limited availability of talent/ skilled persons trained technology, (ii) lack of information on trends that match in product development (and diversification). Jamaica’s actual and potential competitive advantage, as well as (iii) challenges to financing the implementation ° Not enough being channelled into development towards shelf life extension for processed of diversification plans. foods. Investment in Science and Technology is critical to the ° Large segments of Jamaican enterprises lack adequate product design capabilities, process success of any country and is a crucial plank in driving competitive advantage. Jamaica spends very little in reconfiguration and production organisation Scientific and Technological (S&T) pursuits. This is in that will give them a competitive edge even in the order of 0.4% of GDP, a figure which is low even by niche markets. Latin American standards, and well behind expenditure • Not enough linkages and clusters within and among ratios in S&T in most OECD and East Asian countries. In industries, or value chains, to generate opportunities fact, Jamaica’s innovation system has so far played only for diversification and joint ventures. a marginal role as a source of innovation and productivity growth. • There is inadequate opportunity identification based on market information that results in limited Diversification is often driven by market demands and market-driven innovation towards diversification. trends, and requires research and product development Companies are not focussed in this area typically, for new products and services, with corresponding but also there is no monitoring and sharing of such investments in quality requirements, packaging, opportunities information by the trade support labelling, plant and infrastructure improvements. This network’s service delivery institutions to provide application in S&T should be based on innovations these to firms. driven by market demands and trends that both foster • There is no national promotion with related and harness Jamaica’s competitive advantages. support, such as incentives like a tax credit for
    • 36 3 cross- cutting industr y strategies product development, aimed at fostering increasing where existing enterprises do not exist or are not innovations (that lead to diversification). able or interested to take on new innovations (and no supporting entrepreneurial drive linked to • Industrial and technical development functions and innovation). services such as prototype development and testing for commercialising through divestment are no longer provided at adequate levels and affordable Support Planned / Ongoing Initiatives prices. A key constraint to pursuing and implementing • Despite, proactive innovations in a few areas, innovation and technology acquisition towards capacity there are weaknesses in transitioning these development and diversification is the ability to finance into commercial success based on industrial such initiatives. It is therefore important to support development gaps, for example moving from tissue initiatives related to reduction in GOJ spending and debt culture to plantlets in commercial operations. levels that will enhance the business environment. • No entrepreneurial support for new ventures to be established to commercialise innovations, action plan owner/support objectives measures targets initiatives entities timeline Increased Number of Beverages: 5 • Implement policies and programmes to boost the Lead: MIIC Y1 focus and new product country’s capacity for technology generation, adoption Partners: ICT: 2 application of developments and transfer. • SRC research and (from Agro- • JTI • Obtain/offer technical assistance for firms in the • JEA development collaboration) processing: selection and acquisition of modern and appropriate • MoF and of that are 3 equipment/models and techniques for new product/ • JMA technology developed. Education: 1 • PSOJ service development. innovation in • SBAJ Aquaculture: • Develop active public and private partnerships with export sector. • JAPA 2 research and development institutions to lead the Lead (food): innovation process. SRC • Initiate public and private-sector partnerships for Lead (ICT): funding of adaptive research. JSDA Number of ICT: 2 • Expand the remit of the SRC to embrace/support Lead (Edu): products Agro- JSC improved. additional export industries. processing: Lead (Min): 3 • Identify, obtain and allocate adequate resources to the MGD industries to strengthen and facilitate implementation Education: 1 of new product development capabilities. Aquaculture: 2 Mining:: 1
    • national export strategy 37 action plan owner/support objectives measures targets initiatives entities timeline Number 10 • Obtain/offer technical assistance for firms in the selection Lead: JEA Annual of firms and acquisition of modern and appropriate equipment Partners: introducing and techniques for new product development. • JTI new products • Provide project support for new product/service • JBDC and services. development and diversification. • Sector 45 entities Number of • Enhance client service capability of service providers in firms that the specialised areas identified. improve existing products and services. Increased Value of (re) Baseline • Advocate for more effective Incentive Regime to Lead: PSOJ Y1-Y2 investment investment in required support target industries. • MIIC (and re- the productive o Review and assess the impact and effectiveness investment) sector. • Ministry of of current incentives regime (in the context of high Finance ratio into yield on GoJ debt). productive capacity. o Make recommendations for regimes that will allow greater returns from investing in the productive sector. o Advocate for incentives that provide tax deductions for reinvestment into capacity development and diversification. Improved Number of 1 report • Develop ‘new product’ market reports. Lead: JTI Annual market product/market for each o Produce market reports on new product JEA information opportunity priority opportunities, any related standards and entry Cluster/ that drives guides sector requirements, and guidelines on market entry innovation and developed per Sector strategies for exploiting these. diversification. year. support 1 for • Deliver group workshops to inform clients of new entities Number each opportunities. of group priority • Integrate the communication and response strategy interventions. sector related to opportunities into export client management services (information and advisory services.
    • 38 3 cross- cutting industr y strategies 3. Transportation • Lack of understanding of transporting “hazardous” Issues material by air. Air Road • Unavailability of air cargo space to transport produce • Traffic congestion impacting negatively on time and directly to some markets (e.g. Canada) resulting in motion. numerous transhipments and handling points, and corresponding increased cost and damages. • Poor state of road infrastructure which connects to the production centres (farms) and poor accessibility • Closure of the cold storage facility at the Norman on arterial roads mainly during inclement weather Manley Airport impacting negatively on transporting reduces the quantity of (farm) goods transported, fresh and refrigerated produce. or arriving in the desired state. • Prohibitive air cargo rates limit markets or result in Rail high costs to get the market (shrinking margins). • Unavailability of rail service to other than the bauxite companies, contributes to road conditions and road • Challenges with opening hours of air cargo service traffic congestion. providers which negatively impacts produce being transported from far distances. action plan owner/support objectives measures targets initiatives entities timeline Increased Percentage 8% • Negotiate alliances with air carriers to facilitate optimal Lead: JEA Y1 strategic increase in transportation routes for goods and services. alliances volume of air Partners: • Advocate for flexi time in the air cargo industry. to establish cargo exports. • Ministry supply routes of to key markets Transport resulting in • Ministry enhanced of conveyance of Foreign Affairs export produce and to market by Foreign air. Trade Competitive • Package and promote the investment/entrepreneurial Lead: Y1 -Y2 air, road opportunities in rail transport and related storage. Ministry of and rail Transport • Maintain road infrastructure through use of applied infrastructure technologies. Partners: through enhancement • MIIC to existing • JTI infrastructure.
    • national export strategy 39 4. Energy • low levels of the refinery utilisation, operating below 60% since 1983; and high systems losses in the The Context: Energy is central to Jamaica’s economic electricity industry, which has been deteriorating development and productivity. According to the Green since 2001 and which reached 20% in 2004. Paper on Energy9 Jamaica has one of the highest energy With the fluctuating price of oil, it is imperative intensity rates in Latin America and the Caribbean, that Jamaica finds alternative sources of energy to due largely to the high energy use of the bauxite and facilitate cheaper production in order to ensure global alumina industry. The main characteristics of energy competitiveness of our export industry. and its relationship with the Jamaican economy are summarised as follows: Issues • excessive dependence on imported primary • High cost of electricity. energy; • Inconsistency in power supply (outages) resulting • low energy supply self-sufficiency due to a lack of in production losses. indigenous energy resources, and low utilisation of available sources, namely wind, hydro, solar and • High costs to invest in back-up supplies / facilities. biomass; Support Planned / Ongoing Initiatives • high petroleum consumption that is concentrated in alumina, power generation and transport industries The key national initiative is the National Energy (per capita energy consumption has increased by Policy, which at the time of this strategy development 50% since the early 1990s); exercise is being revised. The issues and objectives are aligned, based on the preliminary versions and there is • rising share of oil products in the import energy confidence that a successfully executed Energy Policy supply mix relative to crude oil (the latter share has should facilitate the desired improvements. fallen from 42.5% in 1990 to 23.5% in 2004); action plan owner/support objectives measures targets initiatives entities timeline Jamaica has The ratio of Industry • Establish baseline data for energy usage and Lead: Y1-3 reliable, energy cost to baselines percentage of costs by industry. Ministry of cost-effective total cost. to be Energy energy through • Promote wind power generation, and solar electrical encouraging established generation technology (solar heating and solar cooling) Partners: diversification from and provide technical assistance to assess feasibility and support implementation. • OUR of the energy The cost of initiative. base and generating • Develop policy and administrative programme for the • JPSCo implementing energy. implementation of net metering. • MIIC energy management • Write Position Paper to advocate for the current • JMA and incentives on low cost financing to cover the outlay • Ministry contributing of capital to finance renewable energy systems and of to a more expand the incentives to all companies implementing Finance competitive energy saving technologies. export sector. • SRC • Develop policy, implementation guidelines and • Financial timing on co-generation of energy for large energy Institutions consumers. • JEA • Implement demand reduction / demand management programmes to reduce energy demand. 9 The Jamaica Energy Policy 2006 - 2020
    • 40 3 cross- cutting industr y strategies 5. Security Issues: The Context: A 2007 United Nations Office on Drugs Increased cost of doing business based on costs to and Crime (UNODC) report revealed that high levels of secure and inspect shipments to ensure integrity crime and violence are major threats to Caribbean growth (impacting ALL goods industries). and prosperity (UNODC, 2007). Crime not only affects economic activity, but also precludes investments. Crime • High crime and costs of related security has a strong impact on most firms in terms of security measures limit multi shifts in production (such as costs. This includes plant security as well as security of manufacturing) and service operations (such as assets, goods in transit and port security associated with back-office service providers/contact centres). import and export of goods (e.g. container stripping). • Praedial larceny/pilferage results in losses to Crime negatively impacts business expansion, investments enterprises that decrease their profitability, and capacity utilisation that are all necessary conditions especially farms including aquaculture, where it is for increased productivity. In particular, it hinders a major cost/loss factor. greater capacity utilisation by limiting night shifts and longer operating hours, and provides a disincentive for • Intellectual property theft firms to locate in Jamaica. Firms that increase capacity a. Piracy in music/film industry utilisation by using night shifts have had to incur security b. Information theft related costs to do so. It appears that the number of firms that limits utilisation by night shifts is not as high • Difficulty in attracting foreigners to consume as perceived, as in a consultation with exporting firms; services in Jamaica, such as in the Education it was found that a number of these reported use of industry that faces crime as a deterrent in attracting night shifts by themselves and their counterparts. Crime foreign students. manifests itself to various extents in small business firms in the form of burglary, internal theft, and extortion as reported in a study.10 This creates the need to utilise Crime is a priority issue for five of measures such as electronic security, and/or hired security guards, which is in most cases outside of the the priority export industries, and is capability of MSMEs. Other measures are: reliance on identified as critical to be addressed physical infrastructure such as locks, burglar bars and grills, security fencing, communal security. if their development and export performance are to advance. The security of information is an area that is often overlooked but critical to the success of organisations. The cost of crime is a major concern as it hinders Support Planned / Ongoing Initiatives development by diverting resources which could have been otherwise used for expansion or diversification. Achieve secure and more enabling environment to facilitate trade • Contribute to the improvement of national security by supporting the implementation of the 10 A Landscape Assessment of Jamaica Enterprises (2008)
    • national export strategy 41 recommendations below, made by the PSOJ’s • Establish an oversight committee made up of National Planning Summit 2007: members of civil society that will communicate with the Ministry of National Security and • Implement appropriate recommendations of Justice, and assist with the implementation of the McMillan report with emphasis on: the Crime Plan. (a) raising of standards for recruitment and • Support the development of key partnerships with training, professional development & the Police in the business community. remuneration of the police force. • Continuously advocate for ruthless focus on (b) introducing new legislation to establish improving our national security. mechanism for the removal of • Support the legislation of cyber crime. unprofessional police officers. • Support efforts related to strengthening the justice (c) improving the court system – night court, system and its reform. mediation, commercial court. action plan owner/support objectives measures targets initiatives entities timeline A secure Reduction in Baseline • Develop capacity of exporters to establish security Lead: JEA Y1-Y2 environment the cost of (by sector) policy and guidelines. which is more security. to be Partners: enabling to • Facilitate BASC Certification and CTPAT Certification trade. developed by building awareness of its benefits and encouraging • JCC in year 1. implementation within exporting firms. • Ministries • Obtain financing and technical support for firms of implementing BASC. National Reduction in Baseline Security • Conduct public awareness about IP piracy and its percentage of (by sector) and impact on economic and social development. production lost to be Justice to theft. developed • JMA in year 1. • JIPO • Fiscal Services • Customs • OPM • SAJ
    • 42 3 cross- cutting industr y strategies 6. Trade Facilitation • General Consumption Tax (GCT) is payable on The Context: Trade facilitation involves government some inputs which makes inventory and material regulations and all public industry arrangements that costs high. Despite the claim for return of the GCT, affect international trade. To achieve efficiency and it is often not repaid, and the double transaction effectiveness all the customs and border-crossing requires administrative time and money for both the procedures that constitute barriers to trade must be exporter and administrator. identified and removed. • Standardisation of systems, processes and requirements in accordance to international best Issues practice is being pursued. A number of initiatives underway are aimed at improving the business According to the report of the recently concluded environment and the cost of doing business, such benchmarking study of Jamaica’s trade facilitation as improved service delivery at Jamaica Customs systems and processes, Jamaica is favourably positioned and Trade Board electronic processes. The following in terms of its location and technological readiness, but summarises the main issues identified: it still lags in world rankings for global competitiveness. • Jamaica still lags in world rankings for global competitiveness. • Jamaica slipped to 92 from 82 out of 178 countries • Lack of electronic processing mechanism for in the most recent Trade Across Border category, all transactions. which considers processing times and document requirements for export (and import), as well as the • Long processing times. per container costs. • Numerous document requirements for export • Jamaica’s per container costs were over $600 • Lack of a single clearing facility for trade higher on average than competitors like Panama. facilitation. • Lengthy export registration process. • Jamaica also needs to reduce the number of days for export as well as the number of documents • High container costs. required. Other specific issues include: • Outlay of capital for payment of GCT on inventory and material is not being timely • Lack of a single clearing facility for trade reimbursed or ‘net off’. facilitation. • Weak exporter competency related to trade • The export registration process. facilitation processes and procedures. • Slow pace of implementation of Jamaica Trade The Trade Board cited the inaccurate completion of Point. forms by exporters as another issue. Additionally, the poor quality of information provided results in duplication of efforts and unnecessary delays, and the detainment Support Planned / Ongoing Initiatives of shipments when exporters knowingly try to export goods not compliant with specific requirements. A more business friendly (trade facilitation) service delivery network.
    • national export strategy 43 • Improve the service delivery of the institutions that iv. Enhance capacity of specific facilitation impact transaction time and cost. institutions. • Implement the recommendations of the Trade v. Introduce a Rules of Origin office and provide Facilitation benchmarking study: related training. i. Establish a cross-ministerial National • Create a rigorous mechanism to facilitate information Transportation and Trade Facilitation sharing, discussions and feedback to enhance the Committee, constituted of those institutions implementation process. charged with areas to be addressed by the body – registration, licensing, certification, • Mandate the cross-ministerial National inspection, testing and trade processes. Transportation and Trade Facilitation Committee to become an arm of the proposed National Export ii. Enhance Jamaica Trade Point to make it a full Council. service Single Electronic Window. iii. Link existing and planned trade-related systems to the Trade Facilitation Platform. action plan owner/support objectives measures targets initiatives entities timeline A more (Same as (Same as • Improve the service delivery of the institutions that Lead: MIIC Y1-2 business- facilitation facilitation impact transaction time and cost: friendly (trade study). study). (i) Improvement in the service delivery of the Partners: facilitation) institutions, such as Jamaica Customs and • Customs service Trade Board electronic processes. • Trade delivery (ii) Implementing the Trade Facilitation Board network. benchmarking study’s export-related • JTI recommendations highlighted in the previous section. • Ministry of • Create a rigorous mechanism to facilitate information Finance sharing, discussions and feedback to enhance the implementation process. • Fiscal Services • Mandate the cross-ministerial National Transportation and Trade Facilitation Committee to become an arm • BSJ of the proposed National Export Council. • Ministry of Agri- • Advocate for collaboration of revenue collection culture agency in order that credit can be transferable to enable refund of GCT paid to be allocated to other revenue collection.
    • 44 3 cross- cutting industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Reduced Reduction 80% • Provide export training on export procedures to reduce As above Y1-3 cost of doing in export accuracy (i) exporter errors and therefore processing times and plus business processing reported. (ii) the number of detained shipments that are due to • SAJ through errors (reported exporter error on facilitation documentation. increased cost •Productivity by the Trade • Resource a study to make recommendations for Centre efficiency of Board) reducing container cost through time volume contract • JEA the sectors. Reduction and a structured approach to consolidation. in container • JTI costs. • Increase the support services for the sector through • Trade constant dialogue and regular sector meetings. Board • Partner with the Productivity Centre to facilitate • Export implementation of best practice within the industry. Council • Develop programmes and implement workshops focusing on: collaborating to achieve economies of scale through: group purchasing, outsourcing of business processes, partnerships, supplier efficiency, etc. • Develop capacity of exporters in supply chain management, importance of productivity, record keeping, business plan, proposal writing through training and education. • Provide regional and global benchmark data for exporters. 7. National Image and Branding systematically shaping the world’s understanding and conceptualisation of Jamaica, and more importantly, through sharpening the country’s understanding and The Context: Nation branding is the act of deliberately esteem of itself. shaping the world image of the country based on the country’s definition of its social and economic Despite the tremendous opportunity to define its development goals. The process of nation branding global competitive identity, no formal audits have been can provide for Jamaica an effective tool by which to undertaken to date in Jamaica to support development coordinate the management of the world image of the of its Nation Brand. country both internally and internationally. Importantly, for the government of the country, a nation branding The primary stakeholders have agreed to collaborate strategy has the potential to serve as a nexus for the on a nation branding initiative as a matter of priority. transformation of the nation – its economy and social This overarching framework will guide all the elements infrastructure – the psyche and attitudes of its people; of country branding including destination or tourism the accomplishments of enterprise. branding, cultural aspects of the brand, as well as the country’s business image. Critical to the initiative will Through the process of developing a nation branding be the protection of our marks, country of origin issues, strategy, Jamaica will obtain a lever with which to intellectual property and branding support and services manage its identity and image on the world stage, by to firms for their own marks.
    • national export strategy 45 action plan owner/support objectives measures targets initiatives entities timeline A national Creation and Framework • Develop a national branding strategy Lead: OPM Y1 coordinated approval of approved o Secure Cabinet approval to address the mechanisms Partners: effort to uphold a national Y1. Jamaica’s branding for the development of the Nation Branding Strategy • MIIC reputation framework. in Phase I. • Ministry of through a Tourism Supporting o Execute using the suggested three phase nation branding Enacting • MCYS legislation approach: framework and supporting • JIPO programme legislation. in Y2. Phase I – Developing the Nation Branding Strategy: • JTI supported by This phase focuses on the development of the 3 • JEA creation and Number of Nation Branding Strategy, as well as design of the management collective • JCC National Brand. of Intellectual marks 3 • JMA Property. registered. Phases II & III: This phase focuses on the • MFAFT implementation and monitoring of the Strategy. • JTB Number of Y2 • Review current Intellectual Property legislations to • CIB GIs registered/ protected. ascertain adequacy. • JTB • SBAJ • Increase opportunities to exploit national branding while protecting national marks and symbols. • Ministry of Finance • Continued and increased development of Certification • Diaspora and Collective Marks to protect, support and promote Entity/ selected Jamaican products and services in discerning ies yet to be deter- international market segments. mined • Establish a team with a mandate to improving the capacity of micro, small and medium-sized enterprises to benefit from the intellectual property that is embedded in their goods and services. • Promote the concept and build capacity for the management of Intellectual Property as a tradable good or service. • Provide support to firms in enterprise and product/ service branding linked to national branding in order to harness the benefits to association. • Promote our market in a more coherent and strategic manner aligned to target sectors and markets for each, with improvements in the service delivery, such as the planning timeframe and scope, activity management and follow-up.
    • 46 3 cross- cutting industr y strategies 8. Trade Promotion • It is perceived by some exporters that much of the national promotional endeavours are directed The Context: Jamaica Trade & Invest (JAMPRO/ towards few industries, such as the agro-processing JTI) is the national trade and investment facilitation industry, leaving gaps in services and support to and promotion agency. It provides a range of services other industries. including the provision of trade information, technical assistance and export promotion (trade shows, missions • More focused effort is needed in promoting benefits and business matching). These are provided primarily of protecting intellectual property11 in target from its head office in Kingston Jamaica, but also its markets. offices in Montego Bay, Jamaica, London, UK, and soon to be re-opened offices in New York and Toronto. The • Fragmented approach in (i) our promotional efforts, government is also committed to improving the in-market (ii) exploiting national branding and (iii) protecting support firms require, and is exploring the re-activation national marks and symbols*. of its agricultural marketing company in London, JAMCO, and building closer operational synergies with the Ministry of Foreign Affairs and Foreign Trade’s overseas diplomatic missions. Jamaican exporters have suggested that they prefer to focus on fewer (existing) markets, rather than trying to span their reach into too many additional and new markets. Issues • While there is a lack of understanding in interpreting trade agreements, stakeholders (including the private industry firms) are not making themselves available to engage in the discussion/preparation for trade agreements (which would inform their trade promotion objectives). Additionally, there is: • Inadequate knowledge of market access requirements, standards and compliance in order to design market entry and promotions strategies. • Lack of competency to access technical assistance to effectively promote products and services. • Inadequate budget and availability of information and research to undertake trade activities. 11 *will be dealt with under National Image and Branding
    • national export strategy 47 action plan owner/support objectives measures targets initiatives entities timeline Increased % increase To be de- • Provide market access information to the export Lead: Annual penetration in exports to termined community on new market opportunities arising from MFAFT to new and markets that and trade negotiations. existing are identified. tracked by Partners: • Engage the private sector and relevant stakeholders markets with markets • ECs in trade negotiations and trade adjustment plans. favourable selected • JEA agreements for each • JTI negotiated. industry, • JMA and con- solidated • PSOJ by market. • SBAJ • JTAT • Sector entities Minimised Positive Baseline • Provide alerts to private sector and relevant Lead: Annual negative growth rates export stakeholders of proposed and pending market access MFAFT impact from for exports to growth changes. Partners: market access the specific rates will • ECs changes. markets are be used • JEA maintained. for any market to • JTI be tracked • JMA for market • PSOJ access • SBAJ changes. • JTAT Sector entities
    • 48 3 cross- cutting industr y strategies 9. Business Development and Export Readiness • Fragmented approach to targeting current, potential and aspiring exporters in the areas of business and The Context: Critical to the success of implementing export competency services such as consulting, an export strategy is the level of export competence of counselling, mentoring, and training. managers in the business community. Keeping pace with • Lack of an export training curriculum with international business requirements calls for extensive the requisite scope and depth that enables and continuous investment in competency development complementary short courses (such as market and keeping track of demand for new services in the development and penetration). form of training and business counselling. • Lack of understanding of the new business models A range of institutions in the TSN (JTI, JBDC and for the future, such as in music. private industry associations) offer business and export competency training in the form of short workshops in the following areas: business plan development, marketing, financial management, pricing, among others. There are however less consistent advisory and support services tailored for the individual clients or in-depth training in these and other areas. While some service providers offer effective services (such as the CFB that has been successful in the number of clients being approved for loans), the export industry has reported dissatisfaction with the quality of service provided by some institutions. Countries with export success typically provide a suite of business and export competency services such as consulting, counselling, mentoring, and training through a variety of institutions, network of retired business executives and business development service providers. There is evidence that some of these exist to a greater or lesser extent in Jamaica, however an integrated and complementary approach that targets current, potential and aspiring exporters is lacking. Issues • Lack of consistent advisory and support services tailored for the individual clients. • Limited in-depth training in business plan development, marketing, financial management, pricing, among others. • Inadequate service quality offered by some institutions in the area of financing.
    • national export strategy 49 action plan owner/support objectives measures targets initiatives entities timeline Adopting an Percentage 60% • Develop and implement a curriculum for introductory Lead: JTI/ Y1 integrated and of registered supervisory and management export training. JEA complementary exporters / • Establish Human Resource planning mechanisms to Partners: approach active exporters determine the skills necessary to meet national and • JBDC to building receiving global demands. • HEART / capacity and export • Utilise national skills report to plan for education and NTA competence in competency the public and training. training to meet the opportunities and fill any gaps in • PIOJ private sectors HCD programmes. • NCTVET to support the • Train personnel within public and private sector • Ministry of national export 80% primary service institutions (JTI, JEA, JBDC, ECs, Labour training and Percentage of etc.) to provide cutting-edge business and export • Relevant development staff at relevant competency services. Training agenda. institutions organisa- • Build institutional capacity to certify service providers tions trained in and training institutions in keeping with globally- business • SBAJ recognised certification standards. and export • JMA competency • Deliver ongoing business development training to • JAS delivery. exporters in cost accounting, control, record keeping, financial reporting, and business performance • Ministry of Education reporting and loan applications. • BSJ • Promote the training so as to influence a change in • JIS the mindset of MSME exporters regarding the value of training and education and its contribution to the • MFAFT enhancement of competitiveness. • SRC o Design and deliver awareness campaign tied to • Jamaica productivity results from training. Productivity Centre o Advocate for tax credits for enterprises that invest in training and education.
    • 50 3 cross- cutting industr y strategies 10. Financing Issues • High Public Debt adversely affects investment and The Context: The export industry requires among other productivity by distorting the allocation of investment things, an enabling business environment, which fosters toward less productive areas; and reducing the and supports the establishment, survival and growth of scope for public industry investment. their enterprises. This requires among other provisions, financial support for modernisation of the industry by • The higher cost of capital in Jamaica relative to its way of creating an economy in which capital is equitably trading partners is in part a result of public borrowing and competitively available for the industry. which has pushed up interest rates. Consequently, firms have found it difficult to borrow at prevailing Unavailability of affordable financing has long been interest rates to invest in new technology and cited as one the major factors inhibiting the expansion of equipment that would have increased and sustained the business industry in general, and the export industry productivity growth. specifically. According to the NES case document12 this has significantly and negatively impacted the rate • Unavailability of funding. of entrepreneurship in Jamaica and thus the export industry. According to a report from a study done on • Inability to access funds. MSMEs,13 following the financial industry crisis of the 1990’s, increased risk aversion coupled with high • Inflexible collateral requirement. interest rates have adversely affected lending to MSMEs. • Inability to find investors for businesses. In principle, sufficient funds are available for borrowing; • Inability of enterprises to provide quality plans and however some of the many issues preventing access to proposals supported by financial statements. available funds need to be addressed. • Poor or absent financial record-keeping. There are varying views as to whether the interest rates • Inflexibility by the retailing agencies. are reasonable. However, it was felt that the schemes where reasonable rates are prescribed by Government • Funds are not being allocated to the enterprises they?are not being adequately disbursed; while those with the greatest potential to engage in value-added which are being effectively disbursed, are charging activities and to create jobs. ‘usurious’ rates. • Computers and software not viewed as collateral by Allocation of funds is also an issue for exporters and funding agencies. based on the MSME report14 indications are that funds are not being allocated to the enterprises with the • Intellectual Property not considered to have greatest potential to engage in value-added activities commercial value. and to create jobs. • There are no industry figures to prove an attractive return on investment. 12 A Case for a National Export Strategy Jamaica’s Response Paper 13 Policy Report for The Jamaican MSME Industry 14 Policy Report for The Jamaican MSME Industry
    • national export strategy 51 Support Planned / Ongoing Initiatives (vi) Develop a collaborative approach between public and private industry. Based on the issues identified and prioritised, the following strategic objective and initiatives/actions are recommended: Through the National Planning Summit, the efficiency of property title transfer is being improved. This should Affordable financing that is accessible and available to facilitate the use of land in accessing capital. allow investment in operating capital and reasonable A national initiative to establish and operate Credit returns on investment. Bureau* is also underway. The improved ability of institutions to assess credit risk is welcome. • Advocate for the country pursuing: • Macro-economic stability in order to achieve further reduction in the interest rates and increasing availability of funding for loans. • Stable exchange rate, with a policy that takes into account competitiveness considerations and allow flexibility in nominal exchange rates to ensure that local inflation does not erode the competitiveness of export. • Reduce the high collateral requirements for MSMEs by providing export credit and guarantees in the form of a Mutual Guarantee Fund*. • Implement measures to improve the financing offered through the GOJ and donor agencies by: (i) Adopt Guiding Principles for GOJ-Supported Lines of Credit, (ii) Review of existing lending Mechanisms, (iii) Special Incentives to Guide Allocation of Funds to Critical Industries, (iv) Adopt General Guiding Principles regarding Lending rates for MSMEs, (v) Expand the reach of supporting agencies to enable SMEs and MSMEs to take advantage of donor funding,
    • 52 3 cross- cutting industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Affordable Number 100 • Build awareness of all available financing packages Lead: MIIC Y1-3 financing that of export and incentives being offered to the sector. Partners: is accessible enterprises • Finalise and implement sustainability plan for CFB. and available receiving • Ministry of to allow capacity and • Update FundingOasis.com. Finance investment counselling • Strengthen the Technical Assistance services offered • BoJ in operating support for by JTI and other institutions. • DBJ capital and accessing • ExIm • Review the current structure of incentives and assess reasonable financing. • JBA is the resulting performance and impact at the current returns on level of use to determine whether adjustments are • JCC investment. New policy 2 required to foster reinvestment. • PSOJ measure introduced • Introduce factoring as a financing option. • JEA to address • Develop a mechanism for the use of Intellectual • JTI/CFB concerns Property as collateral to secure loans. • JIS related to • SBAJ • Encourage the modification of current borrowing access to requirements. • JMA finance. • Increase the confidence and involvement of the • JBDC Percentage of 25 AFIs by sharing of information and risk by adopting • JIPO firms reporting a structured approach to credit history and collateral • Credit access to through the establishment of privately run Credit Unions favourable Bureau and Collateral Registry. • JSE financing / • Lenders • Support the creation of new types of financial products number of for MSMEs through establishment of financing via: firms accessing first-time o Venture Capital, Angel Funding*. financing. o Expand and promote Lease Financing.
    • national export strategy 53 11. Packaging Regarding design, reports from companies involved in product development indicate that there is not enough The Context: Product packaging is the art and technical support to facilitate packaging product science of creating boxes, covers, tubes, bags and other development across all industries. containers that are sturdy enough to protect the product inside and that are effective promotional pieces in Issues themselves. To a very large degree, the quality of design work on the package affects how well products sell. • Local packaging industry unable to supply the needs of industries – especially the Agro- Processing sub industry. Packaging is, therefore, fundamental to the protection of products during transport and also crucial to the image of the brand being exported. Packaging has significant • Unavailability of competitive local packaging (cost, range, and/or quality). implications for the value of exported products and therefore critical to the success of the business of exporting. • Limited technical support in (i) branding/ packaging related regulation and, (ii) packaging innovations. According to a Competitive Assessment,15 in Jamaica, packaging costs account for a substantial share of total costs. Cans, plastic bottles and labels are produced • Limited knowledge of packaging and the implications for intellectual property. locally. However, bottles have to be imported. Changes in the trade regime, particularly the removal of protective tariffs and the rationalisation of packaging firms • Inadequate knowledge of designs (and requirements) for foreign markets. within the Caricom region (e.g. relocation of Jamaica Packaging Industries to Trinidad and Tobago and the closure of West Indies Glass), has eroded the ability of • The quality of the execution of designs (printing) on export packages/labels is too low. the local packaging industry to supply the local needs, especially of the Agro-Processing sub industry. Whereas companies in the industry prefer to acquire packaging • Difficulties in introducing joint export marketing strategies between producers/packers of related material locally, it is not clear whether a local packaging products. industry will be able to produce glass bottles and other packaging material at a competitive cost with imports. A new, up to date packaging plant is being set up. 15 Competitiveness Assessment (Poot & Brown, 2006)
    • 54 3 cross- cutting industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Improved Percentage 15% • Conduct consultation to identify most cost-effective Lead: JEA Y1 access to reduction in options for quality packaging: *Food and affordable packaging Partners: processing • Reduce leakage by re-vitalising and improving quality export costs. • JMA sectors competitiveness of the local manufacturing of packaging. packaging (e.g. corrugated cartons, glass and only. • Cluster plastic containers); or / sector Percentage support of value in • Build efficiencies by creating synergies with entities other source countries to supply all our export imported packaging requirements which are not available packaging Y2 (quantity & quality) locally. • EMC/ materials. UTech • Expand group purchasing of glass (and other packaging products) to benefit from economies of • JBDC scale. • CABA • Develop packaging research and training capacity. • Implement training programmes in packaging • EC/BIPs Y1 innovation and design. Work with Exporters to • JTI increase knowledge of how packaging may be utilised for differentiation in export markets. • JEA
    • national export strategy 55 12. Quality Management some cases still prohibitive, and in other cases the quality of service provided by these professionals is variable. The Context: Inability to meet international quality standards is a key issue facing exporters, and exporting • High costs of compliance with international standard firms, especially in the agro-processing industry, face requirements. stringent quality requirements. Jamaica has the relevant legislative and institutional framework for quality, • Food exporters have to contend with a range standards and other requirements. However, the of testing and laboratory services that reside in timeliness and consistency of the service delivery needs multiple agencies, resulting in the country not improvement. meeting international standards (such as the single or aligned veterinary authority for meat and poultry The primary institutions include the: The Bureau of products as required by the World Organisation for Standards (BSJ), Jamaica Agricultural Society Crop Animal Health (OIE)16. Certification Programme, IDB MIF/GOJ Implementation of Quality Environmental and Food Safety Systems • Low appreciation for quality and its importance to in Jamaica /Quality Jamaica Project (a Certification competitiveness. Body has been established, but is not yet operational), National Quality Awards (NQA) Programme, Scientific • A perceived lack of technical and experienced Research Council: Veterinary Services Division, Ministry personnel in the government regulatory bodies. of Agriculture, Plant Quarantine and Inspection, Ministry of Agriculture, and the Ministry of Health. However, • The perception by exporters that government while within the public and private sectors there are a regulatory bodies are too focused on number of quality support service providers, there are a commercialisation rather than regulation which number of capacity constraints that impede the delivery results in lack of transparency. of a comprehensive and affordable range of quality services to the export community. Issues Inability of firms to meet stringent international quality standards due to: • High costs of some basic services. • Limited (but growing) availability of local experts in some technological support services, such as HACCP and ISO certification, product development research and testing (such as formulation) within firms and institutions. • Costs of services such as product testing and certification provided by the private industry are in 16 PIOJ, 2007 and Sanjay Ross, SRC, personal communication, February 7, 2008
    • 56 3 cross- cutting industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Enhanced Percentage Agri: 50% • Expand current internationally-funded quality Lead: MIIC Y1-3 capacity of of exporters certification programmes and attract new ones in Aqua: 40% Partners: exporters (registered order to offer cost-effective quality certification for to provide Bev: 80% firms. • BSJ or active) quality goods receiving ICT: 25% • Educate exporters on the long term benefits of • JEA Annual and services quality quality management. • JTI Mining: that meet certification. 20% • Min Ag international • Encourage enterprises to achieve and maintain (VSD, standards. HACCP and ISO standards. PQ) Number of 300 • Monitor (BSJ) certified firms on conformance for • Min. enterprises maintaining certification. Health benefiting from • CABA awareness • Increase the levels of experienced technical experts in regulatory bodies. • NVCQ initiatives. • JANAC • Increase focus on quality assurance outputs. • SRC Percentage 90% • Reduce turnaround time and cost in institutions • MIAS of firms re- providing testing, inspection and other quality certified. services. • JMA Reduction in Baseline • Develop and promote a local registry of all technical processing required. services available in Jamaica and thereby identify times by the the gaps existing that could inform development of training and certification expertise. BSJ • Coordinate the inspection regime to which exporters are subjected, combining or integrating inspections where they have common elements. (e.g. health and quality inspection). • Implement a mechanism to track emerging / new requirements, and communicate these to export sector and provide support for meeting new requirements. As well as undertake the assessment of these in order to advise on which if any will be critical – including conducting cost-benefit analysis for compliance. • Package private sector investment opportunity to establish additional accredited labs with sufficient.
    • national export strategy 57 13. Trade Information hand, BIPs will offer a range of standardised, specific business information, which will assist entrepreneurs The Context: Information is critical to the success and individuals in improving competitiveness (Forrester, of any organisation. Dissemination of information is 2007). Five thousand (5,000) entities have been targeted always a challenge for trade support institutions. This under this initiative. is due to the human and financial resources required for acquiring, producing and distributing material. ICTs Issues: such as the internet now offer a wide range of distribution media with limited investment, enabling rapid delivery of • Lack of packaged and updated export-specific reports, such as country or product profiles. information. In the framework of worldwide deregulation and liberalisation, where barriers to trade are continually falling and new methods of business emerge, reliable • Limited resources within the service delivery institutions for the preparation of special information trade information is becoming increasingly important. needs, such as market entry or feasibility reports. According to the NES Response Paper,19 to improve exporter access to information, a joint Jamaica GOJ/ • Limited awareness by the export community of the types of information available and the sources of EU initiative was launched to provide crucial support information. services to exporters via Export Centres (EC) and Business Information Points (BIP). Potential and existing exporters will be provided with a range of standardised • Lack of information about regulatory changes and other export requirements resulting in delays and universal and value-added services at ECs. On the other additional charges. 19 The Case for a National Export Strategy
    • 58 3 cross- cutting industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Increased Number of Sector • Strengthen relationships with the academic community JEA/JTI Annual provision standard reports – 9 to conduct research and data collection for the export (EC/BIPs) of (useful/ market reports industry. • SRC Market quality) trade generated for • Conduct continuous competitiveness analyses of all • UWI reports – 6 information distribution. export industries and make the data available for development of the industry. • Utech from enhanced trade service • Strengthen and promote the Export Centre (EC) and • PIOJ providers. Business Information Points (BIPs) network. • STATIN • Increase information dissemination: o Facilitate access to information available through international databases, embassies and research companies. o Set up a repository for an effective marketing information system. o Use electronic media for dissemination (SMS, e-mail, social networking sites). Improved Trade Programme • Build capacity of a team of skilled information Lead: Y1-2 capacity of information developed professionals (with training the trainer component). Partners: trade info programme and • Train and resource trade information providers, • EC/BIPs service for partners executed in enabling them to convert information gathered by the providers in-market knowledge network to market intelligence • MFAFT developed. year 1. providing that is commercially relevant. • JEA increased Number • Sign MOU with MFAFT to engage overseas • JTI dissemination of partner 20 representatives in gathering and analysing market • JMA of tailored staff trained intelligence for target sectors within their markets. • PSOJ trade on trade information. information • SBAJ gathering, packaging and dissemination.
    • 4. Priority Industry Strategies Agro-Processing (Food and Beverages) Jamaica’s unique and diverse year and grew by almost 43% range of food products continues in 2008, proving the industry to be in increasing demand to be a reliable and consistent internationally, and consistently contributor to the growth of non- helps build Brand Jamaica. The traditional exports. priority product groups within The Manufacturing industry is one of the most the industry that are targeted in important contributors to the country in terms of GDP and employment. The Agro-processing Industry, within the Strategy account for 6% of this wider industry, contributes to adding value to Jamaican agricultural products as well as to employment total goods export. The export of opportunities in rural areas. Its linkages go beyond the agriculture industry to tourism, packaging and other food products has increased each supporting industries. 1 2007 figure not available. 2 One export category recording significant growth, but which is not sustainable was scrap metal.
    • 60 4 priority industr y strategies Objectives • To increase exports by 15% each year by improving access to overseas buyers. • To introduce 5 new products by year 2012 to the export market. • 60% of the industry adopting full global best practices in order to achieve improved efficiencies and productivity. • To improve JAPA so that it is a vibrant association driving the industry’s development policies and programmes. Value Chain - Agro-Processing
    • national export strategy 61 Value Chain - Non-Carbonated Beverages Value Chain - Carbonated Beverages
    • 62 4 priority industr y strategies Value Chain - Beer Value Chain - Branded Rum
    • national export strategy 63 Value Chain - Bulk Rum
    • 64 4 priority industr y strategies SWOT Analysis STRENGTHS • Brand equity and strong country of origin reputation. • Support programmes in place for the industry. • Established niche markets, brands and products. • Presence of industry competition to drive performance. • Established channels to the target markets with experience to expand reach – supply chain is well • Standard compliance and quality products. established. • Availability of some ‘green’ raw materials. • Export-orientated, diverse product range that • Reasonable and improving product development includes unique products. competency exists. • World-class enterprises within the industry able to make high quality products. WEAKNESSES • Inconsistency in quality and supply of domestic raw • Mistrust, poor networking between processors. materials. • Weak procurement networks. • Limited/Insufficient innovation in technology and • Weak coordination among policy and services product development to match evolving market entities that support or guide the industry (Ministries trends. and agencies). • Weak linkages to R&D resources (private and • Low uptake of available incentives and poor utilisation academic), like the SRC. of funding and technical assistance. • High import content and therefore significant • Inadequate linkages in the supply chain. leakages. • Weak export focus among many potential and current • Few companies follow best practices and quality exporters. standards., with low utilisation of Quality Management Systems (QMS) and Environmental Management • Exporters are too USA-focused. Systems (EMS). • Limited availability of technical skills necessary to • No IP protection in place. build viable businesses. • Uncoordinated marketing efforts among the industry. OPPORTUNITIES • Strong demand for Jamaican products, which is • Environmental positioning based on products and increasing in some markets. processes/systems. • Research and Development support is available. • Growth in potential linkage industries – such as wellness. • Plant layout and design support available. • General tourism market growth with the capacity to • Access to product knowledge. increase purchases. • Training programmes are available. • Proximity to main export market (USA). • Climate and soil quality conducive to growing certain crops.
    • priority industry strategies - n , t h e c l i e n t p e r s p e c t i v ea t ii n d u s t e x p a n d s t r a tse g y onal ry ort focu 65 THREATS • Increasing theft in the industry. • Weather conditions impact raw material (ingredient) supply. • Lack of a clear Agricultural Policy. • Increasing numbers of international and local • Continued increase in labour costs without environmental regulations. corresponding productivity improvements. • Exports of Jamaican “knock-offs”. • Low growth in the domestic market. • Violation of geographic indicators by foreign • Low levels of investment in the industry. manufactured products. • Increasing security costs. • New product development in competing countries. • Continued urban migration reducing the labour • An unstable FX regime – based on the rate at which force for the industry. it changes. • Poor perception of agriculture as a viable economic • No competitive interest rates to allow for industry. reinvestment in the industry. • Inadequate (poor) transportation impacting on product quality arriving to processors.
    • 66 strategy at a glance Vision A dynamic non-traditional export industry characterised by high levels of diversification, and the development perspective sustained growth in new and value-added products. To increase export Perecentage increase in value of Y1 – 5% Development Perspective export Y2-3 – 15% The Sector contributes to the development of rural communities through employment, backward linkages and a commitment to research and development, and sustainable environmental practices. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Flexible financing for the agriculture There is increased industry participation industry is provided. Praedial larceny is significantly reduced. in policy development and negotiations. To increase the acceptability and accessibility Annual output from the industry TBD Support provided to cover high Effective re-tooling resulting from improved of Jamaican aquaculture products as a main Lower, standardall sub-industries identified (covering port charges are introduced. promotions costs. protein source expertise. in the scope) Competing illegal exports declines. Product development partnerships result in new products successfully commercialised. More technical skills available in the industry. the competitiveness perspective Border–In: To improve production efficiencies, while Improved growth rate of fish by 10- 10% reducing costs of production 20%, Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Flexible trade finance Affordable and accessible programme developed. There is improved enforcement conversion (from 2 expertise for The technical to finance made available. Improved feed 1.5 of regulations and standards. 1.5) production of quality products is at global standards. PACKAGING There are adequate testing facilities making it difficult to Marketing management as Affordable quality export assess products analytically. well as business proposal packaging made available development is improved. locally. To increase recovery from 30% Production recovery 80% Institutional Perspective The Jamaica Agro-Processors Association (JAPA) is strengthened to deliver optimal support to industry development and implementation of electronic systems for greater efficiency trade support agencies.
    • national export strategy 67 action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE Investment Cost of Doing Business To increase • Develop feasibility and business model for a primary • JAPA exports by processing facility. • JTI 15% each year • Develop investment opportunity profile and promote the opportunity. Human Capital Please refer to HCD agro-processing tertiary programme. Development / Productivity THE COMPETITIVENESS PERSPECTIVE BORDER –IN Capacity Percent of 30% Support the priority competiveness initiatives identified in Development factories the relevant cross-cutting strategies. increasing product range by 20% 60% of the Percent of 30% • Identify and obtain resources to contract technical • JAPA industry has factories expertise to advise processors on retooling. • JEA adopted full increasing yield • Inform enterprises of incentives and schemes to global best foster retooling. • JTI practices in of products by order to at least 50% achieve Each processor improved obtains a efficiencies retooling plan and improve productivity Capacity Diversification To introduce 5 • Improve the product development expertise and • JEA new products technology to facilitate new product development. • JAPA by year 2012 • Obtain resources for product research to identify: to the export • JTI market • value added products that are feasible for introduction into operations. • high value alternatives for waste processing. Examples include compost, energy, bricks, and fertilisers. • Promote the introduction of new product lines based on the possible processes of inputs that exists, such as dried fruits. BORDER Cost of Doing Business • Foster group purchasing mechanism and initiatives to • JAPA facilitate group purchase of products in bulk to reduce • RADA per unit cost of items as well as shipping and other • Ministry of transactional costs. Agriculture • Facilitate processor-grower buyer matching for purchasing directly instead of intermediaries, which would mean better quality, and prices.
    • 68 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline BORDER (continued) Cost of Doing Business (continued) • Facilitate the introduction of alternate and renewable • JAPA sources of energy in facilities to reduce use of energy from imported fuels. • Continue lobby for strengthening of initiatives aimed at reducing Praedial Larceny. BORDER-OUT: ALL CROSS-CUTTING INDUSTRY INITIATIVES ARE RELEVANT THE CLIENT PERSPECTIVE: ALL CROSS-CUTTING INDUSTRY INITIATIVES ARE RELEVANT Quality Management Percent 50% • Improve enforcement of regulations and standards. industry • Increase the number of testing facilities to allow firms compliant to to assess products analytically. HAACP, ISO 9000 (or ISO 200) and 14000 Trade Promotion • Design and execute in-bound missions to bring overseas buyers to Jamaica for industry familiarisation tours and match-making by. • Design and deliver technical assistance training • RADA to farmers aimed at improving yield, enhancing efficiencies, crop planning, such as when to reap. resources • Provide technical support and information to support All ACP Commodities training provided. programme • Develop industry purchasing planning platform to facilitate arranged purchasing between buyers (processors or intermediary) and grower that provides buyer times that allow growers to plan reaping to correspond with storage and transport to maintain the quality. THE INSTITUTIONAL PERSPECTIVE To improve • Engage the TSN in discussions on the industry • JAPA JAPA so that development programme, their role and functions and it is a vibrant cooperation towards the agreed objectives. association driving the sector’s development policies and programme • Provide support for strengthening JAPA. • JEA
    • Aquaculture Fish, crustaceans and molluscs have been identified as an emerging product and could become a star performer with consistent production have been one of Jamaica’s levels and improved quality standards. best performing exports in the Aquaculture farms are concentrated in plains of non-traditional export category; Clarendon and St. Catherine, contributing to regional development within Jamaica. making the aquaculture industry a potential champion export for Aquaculture is subsumed within a larger category Agriculture, Fishing and Forestry, which contributes Jamaica with growth opportunities USD$14.5m to GDP, equivalent to 5.9%.19 for production and export. The greatest challenges and opportunities for the industry may be addressed with a few priority initiatives Although exports have fluctuated between 2003 and identified in the action plan that are focussed on (a) 2008, peaking in 2006 at USD$10.6m, it has comprised farming practices and the certification of the facilities, on average 7% of non-traditional exports, eclipsing other (b) feed and stock as primary inputs for the operations, product categories such as sauces, dairy products, (c) security and (d) import controls. ackees and breads/biscuits/buns/cakes.18 Crustaceans 18 Exports, 2003-2007 (Statistical Institute of Jamaica, 2008) 19 Economic and Statistical Survey of Jamaica 2006 (Planning Institute of Jamaica, 2007)
    • 70 4 priority industr y strategies Value Chain - Farm Raised Fish Objectives • To improve production efficiencies, while reducing costs of production, resulting in: ° Improved growth rate of fish by 10-20%. ° Improved feed conversion (from 2 to 1.5). • To increase profitability of firms by 20%. • To increase recovery from 70% to 80% (world average) by 2011 by: ° Significantly improving brood stock quality (hardiness and fecundity). ° Reducing losses from theft. • To increase the export value by 15% annually. • To increase the acceptability and accessibility of Tilapia as a main protein source.
    • national export strategy 71 Value Chain - Farm Raised Shrimp SWOT Analysis STRENGTHS • Infrastructural capacity in place to produce between able to make the right strategic decisions for 2 and 10 times as much of the current tilapia improvements. output. • General industry and related business awareness for • Technically competent farm owners, managers success exists among the firms. and operators - Most enterprises have well trained • History of collaboration within the industry and persons in fisheries management, and related openness to future collaboration. sciences including postgraduate training. • A strong and dedicated cluster has been formed. • Enterprises typically aware of technologies and how they may be applied to their farms – and therefore
    • 72 4 priority industr y strategies SWOT Analysis (continued) WEAKNESSES • Weak to no advocacy from the industry, which may • Poor perception of fresh-water fish in terms of not yet realise its economic and social significance, taste and quality (compared to marine product) and potential strength. that is based on inferior imports and some farms’ products. • Lack of funding for working capital financing, re- financing and upgrading. • Poor production practices at some farms. OPPORTUNITIES • There is growing demand for Tilapia in the USA • Availability of lands near/along the Jamaican coast (which exceeds their production and would be filled for additional farms (and particularly salt-water by imports). farms). • High local demand for marine Tilapia. • Opportunity to practice poly-culture to improve competitiveness. • A sustainable and viable option to the marine products sub-industry, which needs proper • Individual members in the industry may leverage environmental management. their strengths for collaborative initiatives, such as group purchasing. • The new and planned high-end restaurants and non-all-inclusive hotels provide a market • Growing domestic hotel industry presents a growing opportunity based on the importance of quality to domestic export market. their operations. THREATS • Increasing theft in the industry. • Lack on an agriculture policy that could address some of the issues that threaten the industry. • Weak import regulation enforcement. • Inability to store large quantities of product for later • Poor policy and implementation of existing ones distribution. that facilitate increased import of cheaper product threatens the domestic industry’s viability (lack of • Inability to access funds to undertake proposed standards enforcement and in some instances, the initiatives. lack of import standards despite the presence of • Impact of global crisis on demand in the hotel export standards). industry. • Ease of circumventing import duties that makes imports cheaper (through under-invoicing). • Imports (typically cheap poor quality) are competing with current buyers and preventing access to new buyers.
    • national export strategy 73 strategy at a glance Vision The Jamaican Aquaculture Industry is a high export revenue earner that is globally recognised for high-quality primary and valued-added products. Development Perspective The Jamaican Aquaculture industry is a growing source of employment for rural and farm communities, and contributes to improving the balance of trade by reducing the levels of imports of fish and marine products. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Technical and professional skills in farm Trade and marketing support in foreign practices improved. Praedial larceny eliminated. markets for Jamaican aquaculture products improved. Fish growth rates and hardiness increased. Stricter standards for imports implemented. Investment and reinvestment in the industry Turnaround time for clearance of imported increased. farm production inputs improved. Farm road conditions, drainage canals and water quality improved. Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Customised market Affordable and accessible opportunities, market entry Compliance with global Marketing and business proposal financing made available. requirements and strategies standards: development competencies provided. available. PACKAGING • HACCP certified farms . Utilisation of cutting-edge • Quality monitoring of farm packaging maintained. and production practices. Optimal product-handling practised across the value chain. Institutional Perspective The Jamaica Fish Cluster is the focal point for coordinating the activities of firms in the industry, benefiting from the sustained support of the trade support network; especially an adequately resourced Veterinary Services Division. Allied to this, is the work of the Bureau of Standards to develop and implement relevant standards that encompass sanitation requirements of inputs, processing and time to market.
    • 74 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE To increase Percentage Y1 – 5% • Implement a farm certification programme. Lead: Y1 export increase in Y2-3 – Ministry of • Develop a quality standard and brand/label for the Agriculture value of export 15% industry. Partners: • Obtain processing facility certification. • Cluster • Structure an agreement to facilitate contract farming • BSJ with existing processors. To increase the • Assess and present sanitary measures, country • BSJ Y1 – Y3 acceptability of origin, and labelling, testing and certification • Ministry of and requirements. Agriculture accessibility • Customs • Support Min.Ag and Customs upgrade and awareness of Jamaican to monitor imports. aquaculture products as a main protein source THE COMPETITIVENESS PERSPECTIVE BORDER –IN To improve Improved 10% • Introduce new gene pool (fish). • Cluster Y1 production growth rate of • Ministry of efficiencies, fish by 10-20% Agriculture while reducing • Agricultur- costs of al Training production Institutions Improved feed 1.5 • Obtain better quality feed. • Cluster Y1 conversion • Ministry of • Develop business plan for Jamaica AquaFoods (from 2 to 1.5) Agriculture Limited. To increase Production 80% • Improve grading and stocking of fingerlings. • Cluster Y1 recovery from recovery • Introduce a progress tracking system to benchmark 30% enterprises and assist in their attaining the desired standards/targets. (Baseline: 70% • Promote the use of a nursery phase to prevent early • Ministry of Y1 50%) introduction of fries into fish ponds. Agriculture • Cluster • Provide support to the cluster to engage in Y1-2 collaborative initiatives, such as group purchase of feed. • Promote poly-culture practice among farms. Y2-3 • Prepare business plan for the concept of having Y1 main processors collaborate with farmers previously contracted by AQJ. • Foster implementation of the contract processor concept, based on feasibility outcome.
    • national export strategy 75 action plan owner/support objectives measures targets initiatives entities timeline • Provide technical (and extension) support to Y1 potential farmers for production of marine Tilapia. BORDER-OUT: ALL CROSS-CUTTING INDUSTRY INITIATIVES ARE RELEVANT To reduce Percentage 10% • Review and enforce Praedial larceny Act. • Cluster Y1 the losses theft (of • Monitor application of Praedial Larceny Act, rather • Ministry of from theft production) than Petty Thief Act. Security & and costs of from farms Justice implementing Ongoing security measures Trade Facilitation To stem • Increase training for improved monitoring of Customs Ongoing the import imports for verifying Import permit validity, customs of inferior valuation, and country of origin. products THE CLIENT PERSPECTIVE Quality (Same as certification initiatives designed to increase Management exports). Trade Percentage 10% Design and execute a linkage programme aimed at Y1 Promotion increase in increasing purchase of local product by the tourism sales to the sector. tourism sector THE INSTITUTIONAL PERSPECTIVE To stem TBD • Update list of approved import countries the import o Prohibit products treated with carbon monoxide. of inferior o Zero trace of antibiotics. products o Disease presence in the country – any fish/shrimp viral disease. o Parasites testing. Y2 • Improve testing for bacteria, heavy metals and antibiotics, carcinogenic chemicals (melamine, Y1 malachite green). • Improve country of origin vs. third country approval for importation based on VSD equivalent certification. To improve Number of TBD • Improve (i) Date of processing / use best before • BSJ Y1 the delivery firms receiving standard (ii) Labelling standards. of quality support • Begin enforcement of grading and net weight. Y2 services to the industry and • Enhance institutional capacity of the VSD. thus facilitate product improvement (and competi- tiveness)
    • Coffee The Jamaican brand of coffee, Coffee is grown in a region with full employment; something very few geographical areas are able to Blue Mountain, remains an iconic boast. In addition to its social contribution, there is significant export potential that may be realised from brand globally and stands as a both increased production and export volume, increased symbol of quality product from value of export by expanding the percentage of value added production locally, as well as development of Jamaica. It is also an example value-added products. of a protected mark, serving as Coffee is one of Jamaica’s top ten export products. inspiration and a viable model Although not a major producer, the Jamaican product attracts the highest market value in export markets. to several other products and Recent hurricanes have resulted in sharp reductions in product groups from Jamaica. production and export. However the recovery rates in growth have ranged from 30-44%.
    • national export strategy 77 Objectives • To access new market niches in at least three countries. • To increase the volume of exports by 20%. • To improve ‘clean bean’ yield to 980 kilograms per hectare (from 590). • To increase premium exports to 45% of total (green bean) export (from 23% baseline). • To increase in sales to the tourism industry by 15%. Value Chain - Coffee
    • 78 4 priority industr y strategies SWOT Analysis STRENGTHS • Established product brands and very strong destination reputation. WEAKNESSES • Very little collaboration among members of the industry. • Few processors and roasters have international certifications. • The industry has not successfully told their story to drive sales, enhance social equity of the brand. • The industry standards and requirements do not include social and environmental standards, and therefore it may be perceived as weak in these areas. OPPORTUNITIES • Opportunities exist for increasing use of current lands (fill gaps) to increase the production volume using currently dedicated lands. THREATS • Low domestic consumption limits sales for business and industry growth. • Heavy concentration in the Japan market.
    • national export strategy 79 strategy at a glance Vision The Jamaican Coffee Sector is the global benchmark and standard of quality for the growing and processing of coffee for export. Development Perspective The Jamaican Coffee Sector is promoting environmental sustainability by utilising environmentally friendly practices and fostering farmer welfare and increased community development programmes. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Coffee yields increased. New markets Accessed. Farm and parochial roads improved. Adaptive research in primary production Sector programme for increased brand increased. Alternative pesticides & fertilisers promotion and market penetration developed. sourced. Research in product development and higher value waste alternatives increased. Credit / micro-lending for growers made available. Stock of seedling increased. Praedial larceny eliminated. Crop insurance costs reduced. Client Perspective TRADE INFORMATION QUALITY AND STANDARDS EXPORT BUSINESS FINANCE MANAGEMENT EFFICIENCY AND EXPORT Data for decision making made Affordable and accessible available. READINESS finance made available. Quality Management Systems and Environmental Management Competency training and Systems certification applied. counselling provided. Marketing competency of PACKAGING processors and roasters Affordable quality export improved. packaging made available locally. Institutional Perspective The Coffee Industry Board of Jamaica (CIB) and the Coffee Exporters Association are the primary vehicles for coordinating policy initiatives and implementing the sector development plan.
    • 80 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE The coffee Environmental Completed • Produce and disseminate technical manuals for the • CIB Y1 industry to standards in Y1 promotion of agro Forestry and intercropping, and • Ministry of mimises the developed provide technical services for their implementation. Agriculture negatives • JOAM • Promote organic coffee farming. inpact of • Develop National Industry Standards manual ( for • NEPA growing practices growers, dealers, processors and roasters) expanded on the to cover: environment o technical manual related to production: from farm to cup. o environmental standards. o Health and safety standards. o Social standards, such as employment, wage minimums/ farm gate prices, etc.. Investment is Percentage 50% • Prepare investment opportunity profiles for NBM & • CIB Y1-3 attracted into of investment BM coffee that include: • Min. the sector opportunities Agriculture o Cost of production models (mono/intercropped/ to enhance attracting • JTI agro forestry). competitive- investment ness and o Current partnership opportunities. capacity • Survey coffee regions and develop an inventory of idle land & abandoned farms that may be put in production and promoted for investment. • Match prospective growers and land owners to facilitate increased production. Sector’s Production 980 kg • Promote best practices among growers in order to • Ministry of Y1-3 economic output per hectare foster improvement in labour productivity through the Agriculture contribution Yield best farmer award. • CIB • Increase the provision of technical information and support to growers that is required to increase production yield. THE COMPETITIVENESS PERSPECTIVE BORDER –IN: Sector Diversification The coffee Number of 2 • Conduct product research to identify: • SRC Y2 sector value added o value added products that are feasible for • CEA increases product introduction into operations. • CIB domestic value developed for • Ministry of o higher value alternatives for waste (such as addition commercialisa- Energy briquettes). tion • Promote and facilitate commercialising feasible products.
    • national export strategy 81 action plan owner/support objectives measures targets initiatives entities timeline Capacity development There is Production 980 kg • Increase adaptive research conducted on the density • Ministry of Y1-3 increased output per hectare and planting systems, nutrition management and Agriculture yield (output) Yield Coffee Berry Borer management, to transform the • CIB resulting from efficiency of the sector. improved • Increase the stock and size of seedlings. practices and efficiencies The Jamaican TBD TBD • See initiative to Develop Industry Standards Manual • CIB Y1-2 Coffee Industry for Objective 1 • Ministry of is recognised Agriculture as the global • JOAM industry • NEPA standard • Ministry of Labour BORDER Cost of Doing Business There is Percentage 50% • Advocate GoJ to improve farm and parochial roads. improved of farm roads infrastructure targeted that and business are improved environment • Facilitate and promote alliance to source and • CIB for growers purchase alternative pesticides & fertilisers to reduce • CEA and processors the current high costs. to enhance revenue • Advocate for increased availability of credit / micro- • CIB lending for growers to finance their production. • CEA Programme • Engage stakeholders in review and design of crop • CIB Y2 redesigned insurance programme. • CEA Crime Percentage 50% CROSS-CUTTING INDUSTRY INITIATIVES ARE • Ministry of Y1-3 reduction in RELEVANT Agriculture loss due to • Ministry of theft National Security • JCF BORDER-OUT The sector Percentage 20% • Design and implement a programme for increased • CIB (R) Y1 benefits from increase in brand promotion and market penetration that includes • JEA (R) an improved export sales (brand building exercises, developing and telling the • JTI (R) branding and story of the product and industry, creative market marketing promotions based on opportunities that exists, such as • CEA (A) programme country promotion of other sectors).
    • 82 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Sector Promotion International As above • Generate and communicate positive messages about • CIB Y1-2 the brand. • JEA • Identify and recruit branding and marketing expertise • JTI for the sector’s programme. • Determine/validate market positioning & promotion • CEA strategy. • Maintain and improve our relationship with Japanese Importers. Domestic – Percentage 15% • Design and execute a promotional campaign targeting • CIB Y1 Tourism increase in buyers at all ports (air & sea) that includes partnering • JEA tourism sales with retailers on supporting promotional activities. • JTI • Develop a promotional campaign to be integrated into • CEA Restaurant Week. • Create linkage with HEART Runaway Bay to train hospitality staff in coffee preparation & terminology. • Initiate training programme in hotel sector. THE CLIENT PERSPECTIVE Business CROSS-CUTTING INDUSTRY INITIATIVES ARE Development RELEVANT and Export Competency Increased Percentage of 80% • Design and deliver and export awareness and • JTI participation roasters and readiness programme for the sector. • JEA in exports in processors • Inform the enterprises of export agencies and their the sector, services. and improved participating export performance of enterprises Quality Management The Jamaican Standards Completed • Execute a certified seed program for private coffee • CIB Y1 Coffee Industry and support in Y1 nurseries. • Ministry of is recognised programmes • Collaborate with relevant entity(s) and lobby for funds Agriculture as the global for the certification of Coffee Extension Agent. industry developed • JOAM • Provide technical and financial support to firms to standard • NEPA address the lack of QMS and EMS certification which are critical to the future of the industry. • Ministry of Labour Trade • Develop and disseminate market reports for the sector • JTI Information to provide firms with data for decision-making. • JEA Other Trade • Identify packaging and labelling expertise as a support • JTI Support service for the industry. • JEA Services THE INSTITUTIONAL PERSPECTIVE • Provide support for cluster development to facilitate JEA collaboration among enterprises within the sector. CIB diversifies • Strengthen agency network and relationships. CIB and expands • Lobby to modify the Cess order to include Imports of its revenue coffee. streams
    • Education Jamaica has an active and By building on these strengths, Jamaica could develop a viable education export industry capable of providing significant foreign exchange earnings. The country vibrant education industry with has the potential to become a destination for students interested in university degree programmes, specialised strong growth potential. There professional and vocational training and English language training (ELT). are a number of well-established Objectives public and private institutions • Export earnings of over US$30 million. and a range of study offerings • 1,000 additional extra-regional students at tertiary institutions with differential fee in an attractive location. structures per year. These institutions include UWI, Mico and NCU. 1 2007 figure not available. 2 One export category recording significant growth, but which is not sustainable was scrap metal.
    • 84 4 priority industr y strategies • 1,000 additional regional students at tertiary • Attract 3 foreign ELT providers to Jamaica and institutions with homogenous fee structures per increase the number of ELT students by 500. year. These institutions include the University of Technology (UTech), the UCC and the International University of the Caribbean (IUC). Value Chain - Education
    • national export strategy 85 SWOT Analysis STRENGTHS • Available pool of quality academic administrators • Extra-curricular and professional programmes, such to develop policy, standard operating procedures, as athletics (UTech). systems. • Jamaican programmes have high mobility in terms of articulation and accreditation. WEAKNESSES • No tracer studies have been done to establish • Capital investment for the industry – as an attractive benchmarks that may be used to advise policy, investment industry. programme design, benchmarking or promotion. OPPORTUNITIES • The further development of the academic • Linking programmes of study based on our unique administrators through global discussion and factors. networks to enhance programmes through best • Recognition of quality professionals and demand for practice adoption and a global perspective. these which could be translated to the quality of our • Diversification of the bed & breakfast accommodation training institutions. sub-industry and real estate rental industry for • May capitalise on the strength of extra-curricular foreign students. and professional programmes eg. athletic training. THREATS • Limited funding from both public and private sources to facilitate growth and expansion of the industry.
    • 86 strategy at a glance Vision Jamaica is a preferred education destination offering quality programmes in specialised areas. Development Perspective The sector provides a range of full-time and part-time employment opportunities through establishment of new institutions and diversification of programme offerings. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Increased capital investment in the sector. Awareness of Jamaica as a destination for Crime reduced thus lessening its impact on education Increased. Trained and certified pool of experts for service customer perception of the destination. delivery increased. Education destination marketing support provided. Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Information of global training Affordable and accessible needs and trends provided. Institutions continue to focus on Instructional Design capabilities financing provided for quality of programmes, trainers/ in priority specialised areas are continuous improvement of educators and facilities. enhanced. institutions. Institutional Perspective The Jamaica Coalition of Services Industries is established as the focal point for coordinating support to the industry including engagement of the Jamaica University Steering Committee development and promotion.
    • national export strategy 87 action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE To increase Number of 4 • Develop Investment profiles and target investors for Lead: JTI Y1-3 the levels of FDI projects in • 3 foreign ELT providers. Partners: export-oriented the Education investment in sector. • private medical training. • NCSI the sector • criminology studies. • JUSC Number of 500 Y2 • Target investment for executing the Knowledge City • Ministry of ELT students Education concept. studying in Jamaica. THE COMPETITIVENESS PERSPECTIVE BORDER –IN: ( Value Chain Development) Improved range Number of 1,000 • Develop curricula for specialised areas that would • Cluster Y1 and quality of additional appeal to international students for e.g. cultural • Services programmes regional studies. Coalition that are offered students • JTI • Promote ESL / ELT as an export opportunity for local by tertiary at tertiary institutions. institutions institutions with homogenous • Enhance universities’ cooperative education, including fee structures internships, positioning / promoting Jamaica as a per year. location for overseas cooperative options. • Provide support to attract funding for individual or Number of 1,000 common (first-rate) library. additional extra-regional • Review Dubai Knowledge City model among others to students develop a best of breed model for Jamaica. at tertiary institutions with differential fee structures per year. BORDER Crime To increase As above as above • Advocate for instituting proposed interventions to • Cluster Ongoing the number address crime, and participate in initiatives where • Services of foreign appropriate. Coalition students in Jamaica Trade Facilitation To increase As above as above • Examine the work permit regime and submit • Ministry of Y2 the number recommendations to make it comparable to that National of foreign operated by the UK or other foreign study market Security students in selected as best model. • NCSI Jamaica • Improve the student visa and work permit regime by streamlining visa application procedure for students and firms to facilitate work-study programmes.
    • 88 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Infrastructure To increase As above as above • Develop student rentals programme for home- • Ministry of Y1 – 2 the number owners. Finance Y1 of foreign • JTI • Develop investment proposals for student housing. students in • Ministry of Jamaica Housing • NCSI • JUSC • TPDCo BORDER-OUT Sector Promotion Jamaica is As above as above • Conduct groundwork to determine what considerations • Cluster Y1 perceived are required for ranking and how this may be instituted • Services globally as (regionally or nationally to get on international lists). Coalition a preferred • Develop a ‘Study in Jamaica’ website. • Cluster Y2 education • Services destination Coalition THE CLIENT PERSPECTIVE Client Focus Increased Number of 10 • Conduct export awareness programmes for the sector Lead: NCSI Annual engagement institutions to encourage and foster exports. Partners: in export actively • Provide export-readiness training and upgrading to • JUSC activities exporting (any institutions to facilitate export activities. • JTI mode) • UCJ Trade Promotion Same as sector Same as sector Same as • Raise the profile of local universities using a multi- • NCSI Ongoing promotion promotion sector faceted approach through the following initiatives: • Individual promotion institutions • Develop strategic alliances with foreign universities to offer combined programmes and offering partial • Services scholarships to a select few top foreign students. Coalition • Individual institutions international promotion of their programmes. • JTI • Engage trade promotion service providers to include the sector in client targeting and servicing. • JEA THE INSTITUTIONAL PERSPECTIVE To strengthen • Provide support to strengthen the Jamaica University • NCSI Y1-2 the manage- Steering Committee Consortium. • Services ment structure Coalition • Foster increased institutional collaborations (such as for the sector’s UCC/UTEch MOU and articulation agreement between development UCC-UWI). and the level of networking and • Collaboratively develop an inventory of programmes to cooperation in be used as a strategic input for the sector. the sector
    • Entertainment Jamaica is known globally for its Within the Creative Industries, Dance, Drama, Film and Music are among the strongest export services cultural and creative industries, and have the greatest potential to promote our culture and creativity. Various reports on the Music industry which are a major contributor to place the employment estimate between 6,000 and 15,000, with estimates of export earnings as high as the local economy. A recent study USD100million. Film location projects may contribute USD14million in the local economy, with 1,500 – 2,500 indicated that the Copyright employees who also export their services. Industry contributes about 5.1% to the GDP of Jamaica, Objectives and accounts for 3.0% of all • To increase music exports by USD50million over employment in Jamaica. five years.
    • 90 4 priority industr y strategies • To increase exports across the industry by 20% • To enhance the institutions that support the industry annually. to improve coordination and business approach to its development. • To strengthen the industry by focusing on the formalisation and development of enterprises. Value Chain - Music
    • national export strategy 91 Value Chain - Dance Value Chain - Drama
    • 92 4 priority industr y strategies Value Chain - Film SWOT Analysis STRENGTHS • An abundance of talent in each of the sub- industries. • Creative source. • Abundant talent. • World-class achievements. • Varied and valuable cultural and heritage resources. • Increased collaboration between tourism, cultural, entertainment and sports industries. • Strength of “Brand Jamaica”. • Modern copyright regime in place; Jamaica party to relevant IP agreements/international treaties. WEAKNESSES • Lack of appropriate and sufficient venues for the performance sub-industries. • Absence of a film studio that meets minimum global industry standards. • Inadequate intellectual property framework for protection, valuation and management of works resulting in limitations in (i) monitoring and penalising for infringements (ii) valuation and use of collateral (iii) commercial management for optimal revenue. • In most sub-industries the absence of a listing of qualified professionals for accessing/contracting them. • Insufficient measurement and monitoring of industry. • Insufficient capacity and financial support for institutions and infrastructure for culture and world-class entertainment industry. • High levels of piracy. • Insufficient regard and respect for the worth and economic value of creative industry professions and professionals.
    • national export strategy 93 • Limited capacity to enforce intellectual property • Inadequate human resource development for creative rights. industries. • Insufficient knowledge of, support by and benefit by • Insufficient incentive for retention/holding earnings stakeholders of existing rights management systems. from creative industries in Jamaica. • Insufficient business management capacity in creative • Gaps in existing rights management system. industries. • Inadequate linkages with other economic industries. • Inadequate institutional financing for creative • Fragmentation, lack of coordination and duplication ventures. of roles among agencies. • Inordinate delay in implementing some treaties • Insufficient budgetary allocation for development of through domestic law and reform of other relevant the industry. laws. OPPORTUNITIES • Growth in economic value of global cultural industries • Value of Internet in creating new markets, business and markets. opportunities and channels for exposure and distribution of cultural products. • Growth of media channels and demand for content (In videogames there is also an emerging trend • Cheaper and more user-friendly technology. where Damian Marley and Wayne Marshall both • Widening of the regional market through CSME. landed deals for the inclusion of their music on the soundtrack of the world’s best selling videogame - • Existence of West Indian Diaspora as market for EA Sports’ FIFA 2006 and FIFA 2005 respectively local creative products. - The negotiation of ring tone contracts is another • High awareness of and demand for “Brand lucrative area that is still evolving, but from which Jamaica”. Jamaican artists stand to benefit significantly). • Brand Jamaica through Jamaican music continues • Development of bilateral and international to be in demand, with the increased use of reggae in agreements for intellectual property rights and the soundtracks of feature films and advertisements support for creative industries. in North America. THREATS • The copying and adaptation of the Jamaican style • Low degree of local ownership and control of and genres by non-Jamaicans that is eroding our creative industries resulting in low retention of share in formerly indigenous areas, e.g. international value-added. reggae artistes, reggaeton (also reguetón and • Increasing use of technology reduces creative reggaetón), popularised dances. input of performers and artistes. • Potential loss of comparative advantage in • Low level of understanding by Jamaican private Jamaican cultural products through increased industry regarding business intricacies of creative quality and use by other countries of Jamaican industries. symbols and arts. • The negative implications of creative industries in • Potential erosion of geographic indicators the WTO trade regime. for “Brand Jamaica” through imitation by competitors. • Impact of negative activities on the image of Jamaica.
    • 94 strategy at a glance Vision Jamaica’s Creative Industries is a sustainable contributor to the economy with optimal financial benefits being realised from our intellectual property. Development Perspective Jamaica’s Creative Industries contributes significantly to employment generation through new enterprise development in the Entertainment and related industries, achieving greater participation in the economy by individuals particularly from inner-cities and rural communities. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Appropriate entertainment venues New (and innovative) marketing and constructed. A well developed and accepted IP framework distribution channels developed. in place. Model for acceptance for creative works as Local marketing and distribution channels collateral established. Financial institutions perception of to the increased. industry altered. Business and professional practices by enterprises improved. Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Updated listing of global Financing tools specific to business opportunities Culture of professionalism Business services provided to the industry introduced. maintained. established and maintained. support the formalisation of IP accepted as collateral. entities. Information on market trends and potential buyers provided. Access to professional training expanded across the island. Effective royalty collection and payment systems maintained. Institutional Perspective The Creative Industries Clusters are recognised focal points for the activities of their stakeholders ensuring alignment to eliminate duplication of services and supporting enhanced collecting societies and a duly established Council for the Arts.
    • national export strategy 95 action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE The Creative Percent Baseline • Improve mechanisms for collecting royalties: • JACAP Y1-2 Industries contribution to to be • MFAFT • Negotiate bilateral agreements with key markets such increases GDP. determined as Italy, Germany, France. • MCYS Y1 contribution to GDP • Facilitate registration of artistes with appropriate • Cluster Perecentage increase in collection agencies. • JIPO royalty fees • Conduct workshops and provide information material Y1-2 collected. to increase awareness of artistes’ on intellectual • JTI property rights and collection mechanisms. • Expand awareness and training to reduce IP violations in Jamaica. • Integrate industry into national tourism linkage programme. Number of 30 • Provide assistance to entities to facilitate their • JBDC Y1 new firms in formalisation: • Cluster (on- the industry • Business registration. going) • ORC registering their • tax and accounting systems. • BIPs businesses. • business planning and business advisory support. Increased • Develop, package and promote investment opportunity • JTI Y1 capital and for a mixing studio for local or foreign investment. • Cluster infrastructure • Develop, package and promote investment opportunity investment for a film studio for local or foreign investment. THE COMPETITIVENESS PERSPECTIVE BORDER –IN Capacity Development Enhance The location 3 • Expand the reach of creative and technical training • Cluster Y1-3 capacity exists of training institutions in Jamaica by introducing new locations, • Education/ in Jamaica institutions and enhancing their capacity. Training to train the across Institutions relevant Jamaica ( with • Services personnel to Registration, Coalition international accreditation, • Ministry of standards physical Education to maximise facilities, their earning locations). potential The number Baselines • Develop and execute relevant (internationally • Cluster Y1-3 of registered to be accredited) programmes for the industry (in fields • Education/ training refined such as artiste management, theatre) – and that Training institutions based on covers development of the trainer core. Institutions and accredited audit • Services programmes Coalition available to the • Ministry of Education entertainment sector.
    • 96 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline The number Baselines • Design and implement apprenticeship initiatives - • Cluster Y1-3 of qualified to be especially in technical fields, such as mixing. • Education/ / certified refined Training3 professionals based on Institutions in the audit. • Services entertainment Coalition sector (to be further detailed). • Obtain funding for initiatives aimed at community and • MCYS Y1-2 cultural groups. • Services Coalition In the The number Baselines • Develop and execute (Music) engineers training and • Cluster Y1 industries of qualified to be re- certification programme. • Institutions / certified fined based • Develop and execute (Film) Producer training • Services professionals on audit. Coalition programme. in the entertainment sector (to be further detailed). (Film) Number of 5 • Develop and execute 12 months programme to facilitate/ • Cluster Y1-2 Increased completed full follow the development of 5 feature scripts. • Film creation length feature Commis- • Encourage the financial backers to assist in the of Good film scripts per sion (JTI) development of a Jamaican Film genre. Jamaican- year. • TBD themed products based on our stories with international marketing potential (Film) • Advocate the government to put investor and production • Cluster Y1 Increased initiatives and incentives in place. • Firms financing of • Services • Provide support to firms to develop proper/bankable local film Coalition marketing plans to make investment attractive. projects so that • JTI ownership and distribution rights may be retained 3 Edna Manley College, HEART/NTA, CPTC
    • national export strategy 97 action plan owner/support objectives measures targets initiatives entities timeline Improved Industry Industry • Identify the skills required for self-sufficiency based • Cluster Y1 production possesses the at desired on the capability that exists in the baseline year. • Firms skills exist to required levels standard in • Put in place an internship, training and development take quality of and quantities 5 years. programme for the crews and persons interested in the Jamaican of skilled investing in the industry. product to an persons. international level Jamaica a self-sufficient production industry and also a self- production destination BORDER Cost of Doing Business The costs of • Revise and update the Tools of the Trade Incentive. • MCYS Y1 transactions • Cluster and tools acquisition for the sector are reduced “Payola” • Develop a partnership between the regulatory • MCYS practice is authorities, industry and media to develop and • Clusters eliminated implement an initiative to eliminate the practice. • Services Coalition • Ministry of Security • Media Association • Broadcast Commis- sion Intellectual • Review of current IP legislation to ensure that the scope • MCYS Y1 Property of the industry is covered by the current framework, • Cluster and if not any gaps are filled. • Services • Conduct sensitisation sessions to inform firms of IP Coalition rights, assist firms in registering and other measures • JIPO to protect those rights. • Develop Business models for managing (and exploiting) IP rights and present models to firms through workshops and printed material.
    • 98 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Infrastructure Jamaica Venue Year 3 • Assess all performance venues (including those • MCYS Y1 has a multi- constructed under construction or planned) to identify any gaps • JTI disciplinary and based on the recommended features and capacity. • Cluster state-of-the-art operational. • Develop investment proposal for the development performing and construction of such a venue, to include venue proposed use and marketing plans. BORDER-OUT Market Access • Explore new music distribution models for accessing • JTI Y1 markets that will be feasible for firms in the sector. • Cluster Sector • Provide greater support for overseas promotion of • JTI Y1-Y2 Promotion the sector: • Cluster • Identify 2 trade shows for each sub-sector. • Coordinate and execute an inbound mission to showcase the sector. THE CLIENT PERSPECTIVE Business Development & Export Competency Improved • Design and deliver workshops on professionalism • Cluster Y1 business and business etiquette in creative industries. practices and higher levels of professional- ism in the sector Enhanced Number of 1 general • Develop and implement General business management • Cluster Ongoing ability of programmes (per year) for the creative industries. • Institutions cluster developed or 1 per sub- • Services • Expand and enhance music business management members to enhanced. sector (per Coalition programmes. identify and year). • Ministry of take advantage • Expand and enhance Artiste development Education of market programmes. opportunities • Develop Film production programmes, with reputed domestically institutions. and • Formally train Music distribution executives and internationally. employees, and provide information on developments, trends and opportunities in this area. Financing • Upgrade Service providers to provide hand-holding • MCYS Y1 – 2 and counselling to creative enterprises in (i) developing • MIIC grant proposals (ii) preparing and presenting business • Min. Fi- and investment proposals (iii) preparing and presenting nance sponsorship proposals (iv) preparing loan packages. • Cluster • JTI Y2 • Create of an incubator fund for creative enterprises (micro-small enterprises). • JBDC • CFB
    • national export strategy 99 action plan owner/support objectives measures targets initiatives entities timeline Trade Information Firms are • Create and disseminate market specific reports that • JTI Annual / provided outline market size, potential and entry strategies • EC/BIPs Ongoing quality market based on channels. • Cluster information • Post and Update business opportunities for services to facilitate from the sector based on needs in linked industries market (e.g. tourism sector opportunities, film projects, and selection for events). events and related sales efforts Business Number of 5 • Document / package and disseminate business • Clusters Ongoing Opportunities value creation opportunities based on value creation possibilities in • JTI options that are sector chains. • JBDC commerciali- 10 • Develop mechanisms for networking within and sed. across sub-sectors and sectors. Number of firms undertaking value creation/ addition activities towards expansion. THE INSTITUTIONAL PERSPECTIVE An effective • Launch, empower and support an industry-wide • MCYS Y1 national policy framework and unit. • Clusters coordinating • Services entity for Coalition the creative industries is developed Royalties • Provide technical support to the collections • Cluster payment/ agencies to improve effectiveness and efficiencies. • JACAP collection • JTI entities are strengthened.
    • Fashion, Jewellery and Accessories Jamaica’s fashion industry also on economic or education level captures the vibrant and bold – who may not easily find (have energy of its people, and may be access to) traditional employment considered the strongest goods opportunities. producing industry in Jamaica’s Jamaica’s total export figures for the apparel and creative industries. As with other jewellery industries include items manufactured locally for international firms as well as the export of items creative industries it provides the not manufactured locally, but not captured as re- potential for regional development exports, such as wristwatches. The declining figures in these areas are felt to reflect the decline in outsourced and the economic engagement of production rather than the decline of local exports. less advantaged groups – based
    • national export strategy 101 Objectives • A strong national fashion cluster that will be sustained following the termination of the PSDP and its support. • A competitive fashion industry producing quality garments to international-level standards to meet market demands. • A nationally and regionally prominent industry based on the increased awareness of the Jamaican cluster. • Increased production of locally designed and manufactured fashion products. Value Chain
    • 102 4 priority industr y strategies SWOT Analysis STRENGTHS • Strong national brand linked to creativity. • Presence of support institutions (though needs some strengthening). • Creative and skilled designers. • Trained pool of workers in garment construction. WEAKNESSES • New entrants lack the level of technical training • Poor quality fabrics and limited range in trimmings. previously available to persons who have now left the industry. • Lack of innovation and creativity support in a somewhat structured way for the industry • Productivity and focus on quality is often weak in (particularly jewellery and accessories). workers who have been technically trained. • Difficulty for designers to identify partners, and suppliers – particularly potential contractors who have been trained. OPPORTUNITIES • Jamaica may be an outsourcing destination for • Growing demand for Jamaican creative and design some regional manufacturing based on availability products – e.g. merchandise for entertainment of workers and factory space (however may not be product. competitive on cost and quality). • Increased sales to the tourism market. THREATS • Emergence of competing cultural and ethical fashion • Overseas mass, as well as designer production of brands globally. “Jamaican inspired” designs. • Increasing availability of affordable fashion products.
    • national export strategy 103 strategy at a glance Vision Jamaica is the Fashion Centre of the Caribbean. Development Perspective The Jamaican Fashion Industry has the potential to generate employment from new and existing enterprises and achieve greater participation in the economy by individuals, in particular women from inner city and rural communities. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Product quality improved and maintained. Refer to Trade Promotion cross industry Government incentives promoted among strategy. Manufacturing and business processes producers/ exporters. understood by designers. Quality and consistency in sourcing inputs improved. Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Market intelligence on Start-up and mi crofunding prospective buyers provided. Job and product standards Management skills are is available for the industry. developed to support quality developed and improved. culture. Technical skills consistently Innovation circles to generate and professionally applied by new product ideas and designs operational staff. are facilitated. Institutional Perspective The Jamaica Fashion and Apparel Cluster is the focal point coordinating the activities of professionals and technicians in the industry; benefiting from the sustained support of the trade support network, as well as standardised training programmes coordinated among relevant institutions.
    • 104 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE Investment Increased Number of 5 potential • Conduct feasibility study for the development of the • JADF Y1 availability to potential partners WISIC value chain to engage in further processing in • JTI Y1-2 local designers investment identified the region. • MIIC of WISIC partners. • Promote and facilitate investment in the ginning and • Ministry of spinning of yarn for fabric production. Agriculture Greater local 20% retention of Percentage the value of increase of • Promote and facilitate investment for WISIC growing WISIC based production of and production. on expansion WISIC. of the value chain Human Capital Development / Productivity Increased Increase in Benchmark • Establish job classifications and performance • Ministry of Y1-2 levels of output from the required standards for the industry. Labour productivity sector. • Ministry of • Develop a registry all skilled workers based on the and quality in Education industry job classifications. the industry • Cluster • Design and deliver training and certification to address • Product- gaps in worker skills. ivity Centre • Conduct productivity workshops for garment • Training construction workers and designers. institutions • NES Secretariat THE COMPETITIVENESS PERSPECTIVE BORDER –IN Capacity Development Increased Number of Y1 - 25 • Develop back-office support services for designers. • JBDC Annual business firms accessing Y2 – 50 • Cluster support to business 3 support • Design and execute workshops in key business designers for support (back- areas in Y1 areas. start-up and office) services. 3 additional • Promote Enterprise Rating and Upgrading of firms to management Number of areas in Y2 facilitate participation of all firms in the industry. areas in which 5 support is 40 firms developed. Number of workshops held Number of workshop participants/ beneficiaries.
    • national export strategy 105 action plan owner/support objectives measures targets initiatives entities timeline Improved Number of 15 (total) • Design and execute workshop and training for • JBDC Y1 production designers designers on how (i) to manage external manufacturer • Cluster quality and (a) linked to relationships and contracts (ii) design, set-up and • JMA Y1 output manufacturers manage own manufacturing facilities. • JTI or service • BSJ • Design and execute workshop to manufacturers and providers, Y1 construction service providers on sensitivities to the (b) establishing industry in order to improve response and order own Y1-2 fulfilment. operations, or (c) • Develop of a list of manufacturers and service participating in providers that provide outsourcing services. a group/cluster • Design and execute quality management and control manufacturing training for manufacturers and service contractors. arrangement. Improved Number of 2 • Deliver sensitisation workshop with suppliers on the • JBDC Y1 production suppliers issues of quality and consistency in fabric supply. • Cluster quality and assessed are 2 • JMA Y1 • Develop and execute a supplier assessment to allow output providing • JTI (annual) for monitoring and tracking of results, as well as Improved improved • NES service provision to suppliers. access to quality. Secre- Y1-2 quality fabrics Number of • Facilitate relationships between suppliers and tariat and improved suppliers designers to have suppliers source globally for consistency of assessed designers. supply improving consistency. BORDER Cost of Doing Business Reduced cost Number of 50 • Deliver workshop for designers about. • JTI Y1 to establishing designers • Cluster and operating benefiting from • JBDC a fashion awareness enterprise initiatives. Number • Inform firms of grant funding opportunities and provide • JTI Ongoing of entities hand-holding sessions to assist with applications. • Cluster receiving • JBDC assistance to seek grant funding. BORDER-OUT Market Access • Strengthen participation of the sector in the JMA /JEA JMA Trade shows. JEA • Facilitate trade missions to potential markets geared to Cluster buyer markets, while assessing supplier constraints. JTI
    • 106 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Sector • Increase support to designers to maximise results • JTI Ongoing Promotion from participation in existing roster of promotional • Cluster events: • JBDC • Assist with marketing and sales collateral. • Sales workshops. • Contract “cluster” sales representative. THE CLIENT PERSPECTIVE Client Focus • Develop a client classification system to group clients in the industry and design and deliver programmes geared to each category. Business As outlined in the development perspective. Development & Export Competency Trade • Subscribe to industry information resources in order to Information develop targeted information for dissemination to the sector. Quality As outlined in the development perspective. Management Trade • Provide support to strengthen existing promotional Promotion channels, such as Caribbean Fashion Week, Style Week and monthly cluster shows in order to improve trade outcomes using current channels. • Develop and execute a buyer programme including business matching to be integrated within CFW. • Promote CFW to foster its reputation and positioning as the premium fashion event for the region. Other Trade • Facilitate innovation exercises to drive further innovation • Cluster Semi- Support by the firms. • JBDC annual Services. • Provide support to cluster development and strengthening. THE INSTITUTIONAL PERSPECTIVE Institutions 2 • Assess work-plans and service delivery methodology to • All Y1-2 reporting identify areas for improvement. partners increased • Advocate for resource (re-)allocation or non-traditional ability to funding to upgrade service institutions (and in particular service the the JBDC). industry. • Engage all institutions within the sector to align • All Y1 programmes that are delivered. partners • Seek resources for the sustainability of the Cluster. • Cluster Y1-2 • JBDC • NES Secretariat
    • Information Communications and Techology (ICT) Jamaica has already emerged as a the region. Exporting is already recognised leader in ICT services taking place across the segments in the region as well as in target of this market, with exports from markets, supported by a solid and the call centre industry alone improving infrastructure, and has conservatively estimated to be the opportunity to build upon this between US$300-400 million. position to tap into the large US The ICT industry continues to experience growth with market. Jamaica has an active ICT respect to investment within the various industries, including Information Technology, business processing industry centred around software outsourcing (BPO) and telecommunications. One development services and the indicator of the performance of the industry in recent years comes from the data for investment and earnings largest call centre industry in in the industry. Foreign direct investment inflows to the
    • 108 4 priority industr y strategies ICT industry has averaged US$69 million per annum over • Attract 15 foreign contact centre / BPO service the period 2001-2005, representing 11% of total foreign providers to the country. FDI in this segment has direct investment inflows over the period. enabled rapid growth and has raised Jamaica’s profile as a regional industry leader. These benefits, along It is estimated by Jamaica Trade and Invest (JTI) that the with the jobs created and transfer of expertise that ICT projects facilitated by JTI in the telecommunications have resulted, should continue to be pursued by and call centre industries employ over 14,000 persons. courting investment. Objectives • Facilitate the set-up of at least 5 local BPO service providers. While foreign investment does have a number of benefits and even though their exports do • Double annual contact centre / BPO exports by count in the output calculation of GDP, much of the US$150 million. Assuming 75% of the revenue profits generated do not remain in the local economy. is added value, the total addition to GDP from this Given the labour expertise that now exists in the industry would be around US$110 million. country, local firms should be encouraged to set up shop. • Establish a venture capital fund to support the ICT industry. Government contribution to the venture • An industry association to be established (within the capital fund should reach US$1 million annually; first 2 years of implementation of this strategy). At the private contributions should reach US$10 million end of the period, the association should represent annually. 30% of the fund’s resources should be set 60% of the ICT firms in the country. In addition to aside for ICT start-ups (including call centres), 50% taking on the roles outlined above, it should lead on for development of proprietary software and 20% for implementation of the Strategic Plan. export marketing. Value Chain / Business Model: Contact Centre / BPO
    • national export strategy 109 Value Chain / Business Model: Software Development Value Chain / Business Model: Software Development (Open Source)
    • 110 4 priority industr y strategies Value Chain / Business Model: ICT Services
    • national export strategy 111 SWOT Analysis STRENGTHS • Country reputation for creativity that may be ° Programmers. stretched to the industry. • English as a first language. • Thoroughness of employees: • Time zone – same as main buyer markets (N. ° Creativity. America) while complementing the partner/supplier markets (Asia & Europe). ° Design talent – especially software sector - WEAKNESSES • Poor perception of Jamaica as a destination of • Education system that is: quality products. ° Producing insufficient programmers. • Work ethic and attitude/discipline (generally, but is ° Some tertiary graduates are not job-ready. absent when the individual or team is challenged). OPPORTUNITIES • Proximity to the USA for both English and Spanish • EPA partnerships. projects. THREATS • Loss of skilled persons to overseas job market. • Lack of affordable office space in key locations.
    • 112 strategy at a glance Vision The Jamaican ICT sector is globally competitive, widely accessible and making the greatest possible contribution to Jamaica’s social and economic development. Development Perspective The Jamaican ICT sector is one of the most significant contributors to new job creation and improved living standards through better paying jobs based on higher value-added services. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Well-trained workforce available. Firms’ compliance with market Office space in close proximity to regulations increased. Institutional training and industry requirements matched. human capital available. Sector promotion increased. Resources for protection of Intellectual Government incentives available Property in domestic and international to the sector. markets available. Client Perspective TRADE INOFORMATION QUALITY MANAGEMENT FINANCE Market Intelligence on IT trends Advisory and financial support Angel and venture funding provided. provided for certification of firms established and accessible. and for testing and certification of products. Valuation model for IP as collateral established. Institutional Perspective The Jamaica Coalition of Services Industries is established as the focal point for coordinating support to the sector including facilitation of an active Software Developers Association.
    • national export strategy 113 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE Increase Annual contact US$150 • Attract 15 foreign contact centre / BPO service • JTI Y1-3 exports from centre / BPO million. providers to the country. • Sector Y1-3 the sector exports. Association • Facilitate the establishment of at least 5 local BPO Y1 service providers. • Package and promote investment opportunity for office space for the industry. Increase the Annual output TBD • Seek to be engaged in the (re)development of an • Sector Y1 size of the from the sector education policy (to address literacy and mathematical Association sector by (covering all skills). • JTI building the sub-sectors • Ministry of • Engage industry professionals in the enhancement of domestic identified in the Education the CXC curriculum . base of scope). participants. • Establish an advisory body (core group of consultative experts) for the curriculum and programme design of tertiary institutions. • Train more software developers to meet the skills needs for the projected growth of the sector. • Upgrade current BPO employees’ skills. • Provide opportunities to foster innovation and develop skills. • Develop a plan to use software incubators to develop systems for the Government of Jamaica, based on identified needs, thus providing experience to strengthen the sector. • Facilitate linkages between the ICT sector and other sector enterprises for increased delivery of innovative business solutions. THE COMPETITIVENESS PERSPECTIVE BORDER –IN: ( Value Chain Development) The ICT sector Funds available USD10 • Develop the feasibility and action plan for the Venture & • JTI Y1 has access through VC million. Angel Capital fund and establishment of the Fund. • Sector to funding for and Angel Association • Seek international and domestic funding for the start up and financing. development and entrepreneurial funds for the sector. expansion. Funds available USD10 • Establish a venture capital fund to support the ICT • JTI Y2 through VC million. industry. • Sector and Angel Association financing. • Services Coalition • (Financial partner)
    • 114 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline Number of 3 • Promote participation in the Junior Stock Exchange. • JTI firms listed • Sector on the Junior Association exchange. • Services Coalition • JSE Framework in • Develop a standard for IP (to include patents and • JTI Y1-Y2 place for IP to copyrights) as collateral and engage financial • Sector be accepted as institutions in accepting these. Association collateral. • Services Coalition Number of 2 • JIPO financial • BOJ institutions that accept IP as • JBA collateral. • Ministry of Finance • Seek to introduce Government Procurement • Min. guidelines to facilitate acquisition of local software. Telecoms • JTI • Sector Association • Services Coalition BORDER Cost of Doing Increase in 5 news • Promote relevant incentives. • JTI Y1 Business the number of firms • Sector firms accessing Association incentives. • Services Coalition • Ministry of Finance Infrastructure To provide Increase in TBD (sq.ft.) • Investigate the inclusion of the respective sector in the • JTI Y1 adequate office space proposed technology park(s) in Jamaica, and engage • Sector space for the available. the owners. Association growth and • Services • Become engaged in current national initiatives to development of Coalition develop a Technology Park and provide feedback and the industry. support for Business Model / Plan / proposal. • Review zoning laws, and assess the adequacy of infrastructure in commercial (and ICT) zones to plan and locate any infrastructure not deemed to be sufficient, such as electricity and telecommunications capabilities.
    • national export strategy 115 action plan owner/support objectives measures targets initiatives entities timeline BORDER-OUT Sector • Diversify marketing approach to identify opportunities • JTI Y1-2 Promotion in Caribbean/ Latin America. • Sector Association • Services Coalition THE CLIENT PERSPECTIVE Business • Provide business development services for software • Sector Annual Development developers to improve the business competency to Association & Export include an entrepreneurial programme for their start- • JTI Competency. up or strengthen back-office services for the sector. • Services • Facilitate knowledge exchange and transfer within the Coalition industry between (i) more experienced participants and new entrants and (ii) foreign and local participants in the sector. Financing See initiatives for (i) IP as collateral, (ii) VC and (iii) stock exchange. Quality • Identify the relevant international standards for Management the industry and develop programmes to foster implementation of these standards and certification of firms and individuals. THE INSTITUTIONAL PERSPECTIVE Number of 2 • Increase capability to train designers, developers, • UWI Y1-3 institutions programmers and analysts. • UTech increasing • Sector capabilities. Association Association • Provide support to establish and build capacity for • Sector Y1 created. the proposed sector-wide industry organisation. Association Number of 15 • Provide support to the JCS for their transformation. • JTI members. • Services Coalition • Ministry • Perform Benchmark or JCS/JTI survey as an extension • Sector Y1, Y3 of the Services Sector Study: Association • Software development. • JTI • Services • ICT services. Coalition
    • Mining Jamaica has a range of impact on, and linkages with commercially exploitable other industries, and their minerals, including a wide overall contribution to GDP. In variety of limestone, hard fact, since 1985 the Minerals volcanic rocks, bauxite, marble, Industry has contributed at base and precious metals, sand least 5.2% to Jamaica’s annual and gravel. These minerals are of GDP. major significance to Jamaica’s During the period 2001-2006 Mining and Quarrying economic development, represented on average 5.6% of Jamaica’s GDP. The most important metallic mineral for the Jamaican mining particularly their contribution and quarrying industry is bauxite, the ore from which to the national economy, their alumina and aluminium are derived.
    • national export strategy 117 The relative contribution of the mining and quarrying • An economically viable and globally competitive industry to the Jamaican economy has shown a long- industry based on value-added products that term decline over the period since Independence, falling contributes to sustainable national development and from 10.3% of GDP in 1962 to 5.9% of GDP in 1982 integrates the concept and principles of sustainable and to 5.1% in 2001. However the industry has shown development in local and national decisions that growth in recent years, rising to 5.4% of GDP in 2006. affect the industry. The industry also has the highest labour productivity • Increased mineral exploitation, value-added in the Jamaican economy, due to its capital intensity products, increased consumption of local minerals and efficiency, advanced technology and the high and mineral products, exportation of minerals quality of its human capital. It also has linkages with and mineral products, and the expansion and several industries including transport, urban and modernization of the Minerals Industry. regional planning, agriculture, tourism, environmental management and housing. • The effective management of mineral resources and the Minerals Industry. Obejctives • A modern legislative framework and supporting institutions which enable continued development • An industry in which current investments are of the Minerals Industry. safeguarded, new investments are attracted and benefits are maximized in the interest of the national • A strong and profitable industry. economy, local communities and the companies. Value Chain: Mining
    • 118 4 priority industr y strategies SWOT Analysis STRENGTHS • Significant quantities and excellent grade of mineral • Growing businesses - Some companies have resources, namely bauxite, limestone and hard amassed a favourable amount of experience and volcanic rocks. financial resources which are being reinvested to facilitate further growth. • Strategic location to major international markets. • Ongoing investment in the industry - This is especially the case in the Bauxite/Alumina sub-industry and the Industrial Minerals Industry. WEAKNESSES General • Limited access to bulk loading port facilities. • High level of dependence on the Bauxite Alumina • Large number of land-locked quarries, which Industry. contributes to high inland freight cost and the transportation of material over long distances on • Over-reliance on foreign direct investment capital. public roads. • Slow pace of modernising aging infrastructure. • Proliferation of small, globally unproductive and • Absence of detailed non-bauxite/alumina data. uncompetitive quarries. • Tardiness at rehabilitation of mined lands. • Poor public image. • Proliferation of illegal quarrying activities. • Low levels of formally trained personnel. • The quarry zoning process is not streamlined. The Industrial Minerals Industry • Under-capitalisation of operations. OPPORTUNITIES • Significant export potential, especially in the United • A growing and increasingly sophisticated local States, segments of South America and other construction industry, which uses an array of segments of the Caribbean. mineral products that can be locally produced at very competitive prices. • The southern United States has an annual deficit of approximately 40 million tonnes of crushed rock for • Planned pet-coke and coal-fired power plants use in the construction industry. within the Americas present opportunities for the exportation of limestone for desulphurisation • Large volumes of value-added mineral products, purposes. including lime, marble and marble products (bath tubs, face basins, counter-tops, tiles, etc.), skid • Increased quantities of limestone for soil stabili- resistant aggregates, construction and decorative sation, pollution control and the production of blocks, and boulders for coastal defence. more environmentally friendly products.
    • national export strategy 119 • Expansion and diversification of the minerals in- plays no role, while the latter plays only a marginal dustry - This involves an overall increase in the role in the industry. size of the industry, and diversifying into industries such as the Metallic Minerals Industry and the Industrial Minerals industry; Currently, the former THREATS • Increased imports that can be locally produced with which the ownership of major entities within based on liberalised industry. the industry has changed particularly since the late 1990s. • Low levels of research and product development to spark diversification and value addition. • The possible economic impacts of mergers and take-overs by major multi-national minerals-related • Absence of institutions training mining/minerals companies - Particular concerns relate to the professionals. ownership, management practices and business • Difficulties in locally-owned entities accessing ca- ethos of companies in the local minerals industry. pital funding on terms which would stimulate their • More facilitatory government policies and a more development. engaging private industry in competing mineral • The development of disruptive technologies producing countries such as the Dominican and manufacturing of substitutes in competing Republic, The Bahamas and Mexico, threaten markets. growth potentials in Jamaica. • The restricted ownership structure of particularly the • Failure to present a consistent and organised Bauxite and Alumina Industry, and the frequency public relation campaign promoting the industry.
    • 120 strategy at a glance Vision Jamaica is a world leader in the Minerals Industry, efficiently leveraging all endowments based on value-added products, responsible environmental stewardship, enlightened community engagement and commitment to health and safety. Development Perspective The Jamaican Minerals Industry optimises its contribution to increased export earnings, job creation and community development through modernisation and improved efficiencies. Competitiveness Perspective SUPPLY SIDE (BORDER-IN) TRANSACTION COST OF BUSINESS DEMAND SIDE (BORDER-OUT) (BORDER) Specialised tertiary and technical training Market opportunities are packaged and introduced and/ or increased. Investment and access to capital provided to disseminated to firms. enable implementation of R&D findings. Research provided to facilitate increased Export sales generated by local operations value addition. Number of strategically located specialised (independent of overseas operations) is ports increased. increased. Firms modernised to achieve improved efficiencies. Client Perspective TRADE INFORMATION STANDARDS AND QUALITY BUSINESS DEVELOPMENT FINANCE MANAGEMENT AND EXPORT READINESS Market intelligence on Affordable and accessible prospective market and buyers Firms in the industry obtain Management skills are finance made available. provided. international quality certification. developed and improved through introduction of benchmarks. Local testing facilities upgraded to provide specifications tests for Export market knowledge and export products. ex port management skills developed. Institutional Perspective The Mines & Geology Division is strengthened to deliver optimal support to industry development, and coordination of services provided by relevant technical entities.
    • national export strategy 121 action plan owner/support objectives measures targets initiatives entities timeline THE DEVELOPMENT PERSPECTIVE Environmental The Mining Percentage of 100 • Conduct rationalisation of current lease agreements • Mines & Y1-2 sector is firms with full beginning with the assessment of existing leases, Geology/ coordinated compliance including the review for compliance to legal Ministry and minimises to lease agreements. • DBJ negative agreements impact on and the natural regulations. environment. THE COMPETITIVENESS PERSPECTIVE BORDER –IN: ( Value Chain Development) To facilitate Increase range Baseline • Design and implementation of a modernisation • Ministry of Y1 product of products. to be programme for the industry. Mining diversification, provided. • MIIC • Provide technical support to access MOI, or write loan increased Percentage • JTI proposals to access funds. levels of import of products • Sector/ • Provide training in quality management systems for Cluster substitution, that are value- group improved added. all staff (quarry and processing). • University Annual product • Train personnel on technical know how, financial and of Technology quality, Value of business management. • (Financial optimised exports Institu- • Implement specialised industry professional courses utilisation tions) (mgmt and supervisory mgmt levels). of mineral Ratio of • HEART/ • Provide assistance to get ISO certification funding. NTA resources, and export sales to expansion of production. • UWI the industry. • NEPA • PIOJ • MQAJ • PAJ BORDER Infrastructure To increase Access to New • Develop a shared port policy to ensure access to key • Mines & Y1 exports. current countries. strategic ports for exports. Geology/ Ministry export points New • Facilitate joint venture with major international partner • MIIC maintained and products for value –added production. • Ministry of expanded. Types of Tourism products • Expand the time window provided by the PAJ for • JTI /JEA Value & export from 6 months to at least 2 years. • Port volume of Authority exports. of Jamaica BORDER-OUT Sector Promotion (export Export targets • Conduct opportunity awareness and matching JTI Annual objective) initiative. MQAJ
    • 122 4 priority industr y strategies action plan owner/support objectives measures targets initiatives entities timeline THE CLIENT PERSPECTIVE Business & Export Competency To increase Percentage of 80% • Provide export financial management skills JEA Y1 exports industry firms 15%) training. JTI (possible participating • Develop a simple guide for contracting a marketing annual (current and Mines & renewal) consultant to enter the export field - export Geology potential readiness/venture guide for the sector. exporters). Sector/ Cluster group Quality Management Percentage of 30% • Provide cost-effective certification and training Mines & Annual industry firms programme in ISO 1400. Geology certified. Sector/ Cluster group
    • n at i o n a l export s t r at e g y 123 JTI964 NAT. EXPORT STRATEGY.indd 123 11/12/09 6:01:22 PM
    • 124 5 s t r at e g y m a n a g e m e n t Figure 4. Service Delivery Network JTI964 NAT. EXPORT STRATEGY.indd 124 11/12/09 6:04:43 PM
    • national export strategy 125 Issues in some areas while gaps remain in others The Quality of Services Offered • Clients of agencies must typically visit multiple locations, in seeking to transact business, resulting • A lack of Institutional Capacity to implement existing in confusion and ambiguity, waste of physical mandates in some cases, as well as deficiencies in energy and national resources in relation to human skills and levels of expertise, presents an obstacle productivity. to effective service delivery. • Communication between agencies and clients • The level of communication among agencies is needs to be greatly improved to minimise ambiguity too paper-based. There is a need for increased and confusion. electronic mechanisms to support a seamless business process in the handling of export • Identification and engagement of the appropriate transactions, including permits and licenses. This stakeholders is not always done, and the same will very likely reduce transaction costs, processing individuals and agencies are often represented time, bureaucracy and corrupt practices. at the table - There is often apathy on the part of private sector stakeholders to participate fully in • Productivity and efficiency of resources, particularly planning processes. in relation to cost and response time results in sub- optimal use of resources. • Too much turf protection hinders the coordination process. • Measurement of levels of satisfaction in customer service in order to identify what enterprises think • Suspicion and lack of trust results in communication of institutions as clients utilising services of the challenges, lack of transparency and preservation agencies is ad-hoc, uneven and inconsistently of special interest groups. done. • More bureaucracy and less efficiency. Recommendations Coordination and the Extent of Duplication Strategy Support Network (Leadership, Synergy, Coordination and Structure) • Absence of strong leadership (the NEC) and To establish the Export Council that is resourced with a a strategic plan (the proposed National Export supporting secretariat for the effective implementation Strategy) in order to achieve results-oriented of the Export Strategy. improvements. The key points are summarised below: • Absence of a coordination process and lack of a focal point limits the ability to coordinate plans, • Maintain strong leadership for the Export Council at and/or rapid responses to specific challenges as the the Cabinet level. need arises. • Formally institutionalise the Trade Support network • Duplication in services and activities of private sector under the Export Council, including the introduction associations results in over allocation of resources of requisite legislation, in order to give Export
    • 126 5 strategy management Council a clear mandate, suggest permanence Trade Support Network stakeholders. in work programme arrangements and establish influence in relation to both public and private • Diagnose and implement relevant training and sector stakeholders. capacity development initiatives for institutional stakeholders. • Re-examine mandates of institutions with a view to eliminating duplication of efforts. The design of the Monitoring and Evaluation Plan will seek to address some of these issues as well. • Review and benchmark the business processes underlying the interface between institutions Services Delivery Network (Capacity and Institution- and exporters with a view to re-engineering as Building) necessary. For each sector strategy and client service delivery (cross- • Improve communication through regular and sector strategies), the weaknesses to be addressed structured dialogue among Export Council or strengths to be further developed are identified. members. Therefore recommended actions are not included here. • Nurture the creation of formal linkages between action plan owner/support objectives measures targets initiatives entities timeline To establish • Formalise the Export Council through legislation. Lead: MIIC the Jamaica Partners: • Formally institutionalise the Export Council. Export Council that • Establish the NES Secretariat. • OPM is governed • JTI • Conduct TSN audit. by law and • JEA resource and • Strengthen service delivery capability of TSN effect its • PIOJ members. supporting • Export secretariat for Council the effective implementation of the Export Strategy. Private Number of 4 • Formalise cluster/industry support framework within Lead: sector/cluster associations / the NES. Secretariat associations formal groups • Formalise cluster/industry groups. Partners: actively established manage their • Establish the National (Jamaica) Coalition of Services • JTI respective Number of Industries. • JEA 7 strategies associations / formal groups established
    • national export strategy 127 Strategy Management and Monitoring The key points are that the Council is integrated into the national development mechanisms, and that it is supported by a secretariat. The framework is to be This Jamaica National Export Council is charged with formally agreed and institutionalised. oversight for the implementation and management of Jamaica’s National Export Strategy, including its Due to the over-arching nature of the Export Strategy, a monitoring. This will be done through the Council body, number of resources will need to be identified to support its sub-committees and the supporting secretariat. the implementation which includes, but not limited, to Its primary responsibilities are: the following: • Ensure that Jamaica has a current and relevant Export Strategy that is under implementation, by - Government of Jamaica Budget (Ministries & leading the process of the annual update of the Agencies) strategy document. - Multi-lateral and Donor Support Network • Conduct quarterly and annual assessments of the Export Strategy. - Private Sector investment and Contributions • Report (through its members) on the implementation of the initiatives of the Export Strategy. The Approach and Focus • Perform advocacy and support functions at varying levels. Several initiatives that have been assigned to agencies are within their mandates and may be resourced for • Provide reports to the lead national mechanisms. implementation using current allocated as well as projected resources. The primary approach through The implementation of the Strategy will be managed by the Export Council will be to align to the initiatives and a Secretariat within JTI which will be the focal point for monitor for the mobilisation of allocated resources to all related activities being undertaken by the relevant priorities. The approach to resourcing those initiatives stakeholders. for which there is no funding is through a coordinated approach to fund-raising and resource allocation. The A formal structure will ensure that the strategy developed National Export Strategy provides a strategic framework is under implementation and its effectiveness periodically for approaching donor agencies for funding. This assessed collaborated effort of strategic programme funding will also be used to target the private sector. The focus will Structure be on linking the resource allocation to initiatives based on alignment (sequencing) and priority for greatest The proposed structure, still to be finalised, is illustrated effectiveness and efficiency. below: Priorities Cabinet / Economic Vision 2030: Management Framework Development Committee A primary purpose of the Validation Workshop was to National Planning Summit prioritise initiatives in each of the action plans. Based Export Council Monitoring Board on the criteria of importance/impact, urgency and ease, the priority initiatives were developed. This will be used Secretariat
    • 128 5 strategy management resource mobilisation to guide resource allocation for implementation. This Jamaica Exporters’ Association will also be within the concept of the weighting of 1 Winchester Road perspectives based on the areas on which the greatest Kingston 10 level of impact is needed. T: +1(876) 960-4908 E: eileenc@exportja.org Export Centres and Business Information Points Jamaica Business Development Centre 14 Camp Road With the support of the Private Sector Development Kingston 4 Programme, a joint initiative of the European Union T: +1(876) 928-5161 and the Government of Jamaica, Export Centres and E: awest-myers@jbdc.net Business Information Points have been established to provide a wide range of value-added services to the local business community, aimed at increasing performance and profitability. Satellites Rural Agricultural Development Authority The Business Information Points are both virtual and (RADA) physical offices specifically set up island wide to give Vanity Fair micro, small and medium sized enterprises (MSMEs) Linstead, St. Catherine access to a range of standardized and value-added T /F: +1(876) 903-2916 business information. The Export Centres on the C: +1(876) 821-2469 other hand, aim to positively impact national export E: krobinson@exportjamaica.org performance & competiveness through the provision of a range of export-related advisory services and export Shop 93 development tools. Portmore Pines Plaza Portmore, St. Catherine All Export Centres and Business Information Points offer T: +1(876) 989-9574 a basic suite of services that are standard wherever you E: pcci@cwjamaica.com are in the island. In addition to these services, different locations may offer customised value-added options. Denbigh Show Ground May Pen, Clarendon To date, fourteen (14) satellites have been launched C: +1(876) 821-2468 island wide, of which ten (10) are Export Centres and E: slewis@exportjamaica.org four (4) are Business Information Points. Services can be accessed at the locations island wide as follows: Port Maria, St. Mary T: +1(876) 994-9473 Primary Agencies F: +1(876) 725-0865 C: +1(876) 824-5536 E: sgrant@exportjamaica.org Jamaica Trade and Invest (JTI/JAMPRO) 18 Trafalgar Rd. Port Antonio, Portland Kingston 10 T /F: +1(876) 715-5344 T: +1(876) 978-7755 ext. 2004 C: +1(876) 806-7220 E: mporter@jti.org.jm E: gmclean@exportjamaica.org
    • national export strategy 129 Belfast Jamaica Trade and Invest (JTI/JAMPRO) Morant Bay, St. Thomas UGI Building T /F: +1(876) 982-1842 30 Market Street, 2nd Floor E: zbennet@exportjamaica.org Montego Bay, St. James T: +1(876) 952-6045 Christiana Potato Growers Association F: +1(876) 952-2784 Christiana, Manchester E: jambic.mobay@cwjamaica.com T: +1(876) 964-4279 and +1(876) 476-5317 E: sshakespeare@exportjamaica.org Union Street Montego Bay, St. James T: +1(876) 952-6045 St. Elizabeth Co-Op F: +1(876) 952-2784 Credit Union E: jambic.mobay@cwjamaica.com St. Elizabeth T: +1(876) 966-3346 and +1(876) 493-8729 Trelawny Chamber of Commerce & Industry E: awhitely@exportjamaica.org Albert George Shopping Centre Falmouth, Trelawny Negril Vendors Plaza T /F: +1(876) 485-7902 West End P.O Box 3055 T: +1(876) 957-4067 F: +1(876) 957-4591 E: negriljambic@yahoo.com Civic Centre Great George Street Savanna-la-mar, Westmoreland T: +1(876) 918-1747 E: westccj@yahoo.com 4 Millers Drive Lucea P.O. Lucea, Hanover T: +1(876) 956-9722 E: info@hanoverchamberofcommerce.com
    • 130 glossary Abbreviations ACP African, Caribbean and Pacific group of FDI Foreign Direct Investment states FX Foreign Exchange AFI Approved Financial Institution GATS General Agreement on Trade in Services B Border GATT General Agreement on Tariffs and Trade BASC Business Anti-Smuggling Coalition GCI Global Competitiveness Index BCI Business Competitiveness Index GCT General Consumption Tax BI Border-In GoJ Government of Jamaica BIPs Business Information Points GDP Gross Domestic Product BO Border-Out HACCP Hazard Analysis and Critical Control BoJ Bank of Jamaica Points BM Blue Mountain HEART/NTA Human Employment and Resource BPO Business Process Outsourcing Training / National Traning Agency BSJ Bureau of Standards Jamaica HS4 4 digit level Harmonised Code CABA Caribbean Agri-Business Association (Harmonised Commodity Description CARIBCAN Caribbean-Canada Trade Agreement and Coding System) CARICOM Caribbean Community ICT Information and Communication CARIFORUM Caribbean Forum (CARICOM + Technology Dominican Republic) IDB International Development Bank CAPs Community Access Points IFI International Financial Institutions CBI Caribbean Basin Initiative IP Intellectual Property CBTPA Caribbean Basin Trade and Partnership ISO International Standards Organisation Act IT Information Technology CEA Coffee Exporters Association ITC International Trade Centre CEDA Caribbean Export Development Agency IUC International University of the Caribbean CET Common External Tariff JAMCO Jamaica Marketing Company CFB Corporate Finance Brokerage JBA Jamaica Bankers Association CFW Caribbean Fashion Week JACAP Jamaica Association of Composers, CIB Caribbean Industry Board of Jamaica Authors and Publishers Ltd. CSME Caribbean Single Market Economy JADF Jamaica Agricultural Development CTPAT Customs-Trade Partnership Against Foundation Terrorism JAPA Jamaica Agro-Processors Association CXC Caribbean Examination Council JAS Jamaica Agricultural Society DBJ Development Bank of Jamaica JBDC Jamaica Business Development EAMN Export Access Monitoring Network Corporation ECs Export Centres JCAA Jamaica Civil Aviation Authority ELT English Language Teaching JCC Jamaica Chamber of Council EMC Edna Manley College JCF Jamaica Constabulary Force EMS Environmental Management Systems JEA Jamaica Exporter’s Association EPA Economic Partnership Agreement JEC Jamaica Export Council ERU Enterprise Rating & Upgrading JEF Jamaica Employer’s Federation ESL English as a Second Language JIDC Jamaica Industrial Development ESSJ Economic and Social Survey Jamaica Corporation EU European Union JIPO Jamaica Intellectual Property Office
    • national export strategy 131 JIS Jamaica Information Service PAJ Port Authority of Jamaica JMA Jamaica Manufacturers’ Association PIOJ Planning Institute of Jamaica JOAM Jamaica Organic Agricultural Movement PPP Public-Private Sector Partnership JPS Jamaica Public Service PQ Plant Quarantine, Ministry of Agriculture JSDA Jamaica Software Developers Associa- PSDP Private Sector Development Programme tion PSOJ Private Sector Organisation of Jamaica JSE Jamaica Stock Exchange PSOs Private Sector Organisations JTAT Jamaica Trade Adjustment Team QMS Quality Management Systems JTB Jamaica Tourist Board RADA Rural Agricultural Development Author- JTI/JAMPRO Jamaica Trade and Invest ity JUSC Jamaica Universities Steering REER Real Effective Exchange Rate Committee SAJ Shipping Association of Jamaica MCYS Minster of Culture, Youth and Sports SBAJ Small Business Association of Jamaica MDG Millennium Development Goals S&T Science and Technology MFAFT Ministry of Foreign Affairs & Foreign SMEs Small & Medium Enterprises Trade SRC Scientific Research Council MGD Mines and Geology Division STATIN Statistical Institute (of Jamaica) MIAS Mona Institute of Applied Sciences SWOT Strength Weakness Opportunity and MIIC Ministry of Industry Investment & Threat Commerce R&D Research and Development MIF Multilateral Investment Fund TA Technical Assistance MOI Modernisation of Industry TBA To be determined MQAJ Mining and Quarry Association of TEU Twenty-Foot Equivalent Unit Jamaica TNC Trans National Corporation MSME Micro Small Medium Enterprise TPDCo Tourist Product Development Company NBM Non-Blue Mountain TSN Trade Support Network NCSI National Coalition of Services Industries UCC University College of the Caribbean NCU Northern Caribbean University UCJ University Council of Jamaica NCT VET National Council on Technical and UNCTAD United Nations Conference on Trade Vocational Education and Training and Development NEPA National Environment and Planning UNODC United Nations Office on Drugs and Agency Crime NES National Export Strategy USD United States Dollar NGO Non-Governmental Organisation US United States of America NIP National Industrial Policy UTech University of Technology NQA National Quality Awards UWI University of the West Indies OECD Organisation for Economic Co-operation VSD Veterinary Services Division, Ministry of and Development Agriculture OIE The World Organisation for Animal WIPO World Intellectual Property Organisation Health WISIC West Indies Sea Island Cotton OPM Office of The Prime Minister WTO World Trade Organisation ORC Office of the Registrar of Companies VC Value Chain OUR Office of Utilities Regulation