towards inclusive growth and sustainable development

Prepared by A. Vouranis1


MEDIUM TERM SOCIO-ECONOMICPOLICY FRAMEWORK

2012- 2015

Towards Inclusive Growth and Sustainable Development


COUNTRY CONTEXT- Negative issues

Global economic downturn of 2008-2009 impact on Jamaica Economy

• Jamaica’s economy faced deep challenges over the period 2009-2012

• Fourteen consecutive quarters of negative growth from 2007-2010

• The period also saw increases in :

• Public debt • Unemployment and • Poverty

Source :Vision 2030 Jamaica – NDP


COUNTRY CONTEXT- Positive issues

Improvement in a number of its macroeconomic indicators

•Declines in the fiscal balance and annual inflation rate

•Industries recoding net growth over 2008-2011

• Agriculture

• Forestry

• Fishing and Hotels & RestaurantsSource :Vision 2030 Jamaica – NDP


The four Medium Term Themes to be addressed under MTF 2012 – 2015 are:

Development and Protection of Human Capital

National Security and Justice

Economic Stability, Competitiveness and Employment

Environmental Resilience and Climate Change ResponseSource :Vision 2030 Jamaica – NDP

Inclusive Growth and Sustainable Development


The four Medium Term Themes are directly aligned to eight (8) National Outcomes, which in turn are structured under each of the four National Goals of Vision 2030 Jamaica prioritized national outcomes are:

1. A Healthy and Stable Population2. World Class Education and Training3. Effective Social Protection4. Security and Safety5. Effective Governance6. A Stable Macroeconomy7. An Enabling Business Environment8. Hazard Risk Reduction and Adaptation to Climate Change

Source :Vision 2030 Jamaica – NDP

Inclusive Growth and Sustainable Development


Building a Dynamic and Sustainable Micro & SME Sector for a

more Meaningful and Visible Contribution for a Sustainable

Industrial and Economic Development for the 2012 and

Beyond with Special Emphasis for the Youth & Women

JBDC Guidelines


JBDC Sustainable Development (Generic Model)

Networks/Clusters Community Groups


Sustainable Development

Sustainable DevelopmentProductivityProductivityInnovationInnovation

Based on Based on and and

Driven by New TechnologyInformation Technology

CAD/CAM ,CIMIInternet FOR:

The 2012 and Beyond

JBDC Approach

National Security and Justice

Prepared by A. Vouranis 10

Facilitating theModernization of theBusiness Environment

Facilitating theStrengthening of

Existing TraditionalBusiness

Facilitating thedisseminationOf Information

Facilitating theStrengthening &Development OfNew innovative

Business

DevelopingRestructuring

and UpgradingProgramme

JBDC Framework

Prepared by A. Vouranis

•Technical Solutions•Marketing Solutions•Businesses Solutions•Financial Solutions

JBDC

Strategy•Quality Services•On Time Services•Affordable Services•Promoting Services•Personnel Empowerment•Knowledge Transfer

HR

Capital

+

+

Knowledge

=

INPUTS

OUTPUTS

JBDC Strategy

Improving OperationalEfficiency for:

Delivering Demand Driven Services for:

11


Groups & Categories of MSMEs

Groups of MSMEs Categories of MSMEs

1.Trade 1.Enterprises operated for survival (Poverty)

1a. Start – Ups for ( Survival / Employment)

1b. Skill based enterprises (Family Business)

1c. Knowledge based enterprises (Graduates)

2. Non-Trade

2. Enterprises operated for survival (Poverty)

2a. Start – Ups

2b. Skill based enterprises

2c. Knowledge based enterprises

Industries / Sectors/

Clusters

Fashion, Craft, Food ,

Furniture

3. Supportive

services

3a. Start – Ups

3b. Skill based enterprises

3c. Knowledge based enterprises

A.Vouranis CTA 2012

JBDC Clients


Targeted Industry ClustersTargeted Industry Clusters


Assist the Sustainability of Entrepreneurs

Sustainable & competitive Inter-Relationships (e.g. Networks, Clusters, Groups and Entrepreneurs)

Which Will Lead to

Sustainable & Competitive Productive Sector (Eco Friendly)

Economic growth (Increase Employment, Reduce Poverty) and thus Reduce Social Unrest

Demanding Markets (Local, Regional and International)

Sustainable Development Approach for MSMEsSustainable Development Approach for MSMEs

14

Strengthen the Sustainability of

Integrated Services for the MSMEs1. Technical Support Services2. Business Support Services3. Financial Support Services

4. Marketing Support Services

Starting Points

The Road of Sustainable Development for MSMEs Business

This Will Lead to

Which Will Lead to

This Will Lead to

Able to Serve in a Sustainable Way


JBDC’s Integrated Approach From Concept to MarketJBDC’s Integrated Approach From Concept to Market

Technical Services

Solutions

15

Financial Solutions

Business Advisory Solutions

Marketing Solutions


JBDC’s performance 2002-2012JBDC’s performance 2002-2012

Year Business Advice Training Marketing Technical Total

Assistance Assistance

2002/3 215 2817 38 53 3123

2003 573 2220 660 268 3721

2004 573 1161 400 372 2506

2005 553 2220 660 268 3701

2006 441 6734 780 594 8549

2007 262 6084 525 856 7727

2008 861 7601 750 870 10082

2009 2800 5500 750 3300 12350

2010/11 4500 3000 800 2000 10300

Total 10778 37337 5363 8581 62059

2011/12 5200 3500 950 3000 12650


A. Acknowledgment of JBDC as lead agency for MSME development by

local and international agencies (e.g. USAID, EU, IADB, Universities, etc.)

B. Client confidence and trust acknowledge impartial quality service

community Investor

C. Trust – Financial Institutions – contracted to train clients and staff (e.g.

JN, Credit Unions, etc.)

D. Papers & Programs Produced

Impact Indicators(Qualitative)

Impact Indicators(Qualitative)


A. Start up Businesses

B. Formalized Businesses

C. Upgraded Businesses

D. Intellectual Property Registration

E. Rebirth and Strengthening of Industry Clusters

F. Clients Trained

G. Technical Services provided

H. Employment generation/retention

I. Client Income growth

J. Research Papers & Development Programs Produced

Impact Indicators(Quantitative)

Impact Indicators(Quantitative)


Client Distribution by SectorClient Distribution by Sector

Clients Per Sector 2010

Gift & Craft6%

Fashion & Apparel5%

Food & Agro-Processing

13%

Agriculture15%

Retailing9%

Service31%

Other Productive Sectors

21%Gift & Craft

Fashion & Apparel

Food & Agro-Processing

Agriculture

Retailing

Service

Other Productive Sectors


Incubator Resource Center IRC

Prepared by A. Vouranis20/04/23 21

BiZ Services

Incubator Resource Centre(Fashion, Craft, Agro processing, Furniture)

Incubator Resource Centre(Fashion, Craft, Agro processing, Furniture)

Engineers

Product & Design Development

Designers & Industry

Specialists

IT services

Hands-on Training & Support services


Furniture Design Incubation Unit


Fashion Design Incubation Unit


Straw productsStraw products

•hats•place mats

•bags•belts

Paper productsPaper products•clocks•boxes•bags

•picture frames•stationery sets

Natural Fiber Incubation Unit


Computer Aided Design Incubation Unit


JBDC facilitating Market AccessJBDC facilitating Market Access


Things Jamaican Supplier Earnings (2001 - 2011)Things Jamaican Supplier Earnings (2001 - 2011)

THINGS JAMAICAN SUPPLIER EARNINGS PER ANNUM (2001 - 2011)

J$M NOTES

2001 - 2002 4.5 1%

2002 - 2003 12.0 4%

2003 - 2004 15.6 5%

2004 - 2005 18.4 6%

2005 - 2006 22.8 7%

2006 - 2007 43.0 14%

2007 - 2008 49.6 16%

2008 - 2009 45.2 15%

2009 - 2010 51.6 17%

2010 - 2011 43.9 14%

total 306.6

2011-2012 50.0

Source : TJ


Source : TJ

THINGS JAMAICAN RETAIL REVENUE (2002 - 2011)

2002-03 20,440,124 2003-04 26,752,365 2004-05 32,626,741 2005-06 40,082,649 2006-07 39,217,236 2007-08 87,204,964 2008-09 75,854,563 2009-10 92,288,340 2010-11 96,188,376 2011-12 100,000,000

Things Jamaican PerformanceThings Jamaican Performance


Taste of The Caribbean

$189,751

$1,158,519

511%

Frazer’s Ceramics

$241,608

$1,409,323

483%

2003 2010

Things Jamaican - Client GrowthThings Jamaican - Client Growth


JBDC facilitating Market AccessJBDC facilitating Market Access

• Kumba Mi Yabba – JBDC’s Annual retail market place• Approx 100 exhibitors annually• Approx 2000 patrons annually

• Caribbean Gift & Craft show• Market access into Caribbean• 70 companies over period

• Thingsjamaicanshopping.com• Facilitating Export trade for Gift and Craft clients

Source : TJ


JBDC Small Business Expo 2011JBDC Small Business Expo 2011


Acknowledging the Gap The right formula “Financial plus non-

Financial”

Financial Products for Productive MSMEsFinancial Products for Productive MSMEs

Financial Solutions


FSU PerformancProductive Sctor Loans

FSU PerformancProductive Sctor Loans

• Total Loans disbursed - $186,662,500.27

• Number of Loans: 127

• 20% of loans are start-up businesses

• Average loan size: $1.4M

• Generated/Retained employment: Approx. 621


1. Start up Businesses 2048

2. Formalized 380

3. New Product Collections 30

4. Upgraded Businesses 958

Impact Indicators 2010-11Impact Indicators 2010-11


• Things Jamaican in UK 2012• Kumba Mi Yabba (Kgn/Mobay Dec 2011)• “Design Caribbean” 2011• Client Income Generated through Market access facilitation

(including Things Jamaican) – approx. $95M• F & WP Industry programme

• F & WP Industry survey• Additional 300M negotiated for specialized funding to the

sector • Generating/retaining employment – approx. 1500

• # New Businesses facilitated/formalized – 2400• Business upgraded – 1500 (employment generated and retained)

Key Targets for 2012Key Targets for 2012


• Budget Gap – (survival $40M)• Impact Monitoring Framework• Factories Corporation

• Agreement• Space for MSMEs

• 12 Camp Road premises – Finalize Acquisition

• JAMCORP UK – No budget allocated

Red FlagRed Flag


New Economic Opportunities for all Productive Entities especially the MSME's From Low Value Single Products to High Value

Groups of Products The emergence of Globalization through the

Technological Advances

Global Trends


New Opportunities for JA SMEs

Beeswax ProductsUS Market

2.3 US$ billions(Source US Gov.)

Raw MaterialsAvailable locally

Dried FlowersUS Market



Music US Market



New slides


Buzzing Business-2.3 US$ billions Market

HoneyComb

Candy Gourmet Honeys & Honey Wines

Beeswax (soaps)

Candles•Natural repellants•Ceremonial candles

Accessories•candle holders•clay•bamboo•metal•books


Technical Services

•Incubator

•Resource Centre

•Training Marketing Services

TJFinancial Services

FSU

Info Portal

JBD Corporation

Our growth path

GOJ 500 Suppliers

2,000 85 Million

Business Services

JAMBICS 6,000

A.Vouranis

towards inclusive growth and sustainable development

Documents