Jamaica's World Bank's US$105 million Loan – All My Children Animation, SME VC's and Public Sector get Second Chance at Economic Redemption

“The projects are intended to further the overarching goals of the Government of Jamaica-World Bank Country Strategy for the period 2014 – 2017; to support the government’s investments in key strategic areas, including physical sustainability in youth employment; public sector modernization and to facilitate a more enabling environment for private sector growth”

Minister of Finance and Planning, Peter Phillips during the signing of an agreement with the World Bank for a loan of US$105 million to support three (3) Developmental Projects on Thursday September 4^th 2014

Slowly, bit by bit, the GOJ (Government of Jamaica) is slowly getting on the good graces of the international lending Agencies. Now the World Bank is also following in on this trend.

This as Minister of Finance and Planning, Peter Phillips, on behalf of the GOJ (Government of Jamaica) signed an agreement with the World Bank for a loan totalling some US$105 million as stated in the article entitled “Government signs US$105 million World Bank loan deal”, published Thursday September 4, 2014 10:18 am, The Jamaica Gleaner.

You can read the official news straight from the Horses' mouth, The Jamaica Information Service, in their article “Jamaica and World Bank Sign US$105 Million Loans”, published September 4, 2014 by Derrick Scott, Information Attache (Jamaican Embassy, USA), The Jamaica Information Service.

This they’ve achieved by demonstrating their ability to execute and pass successive IMF (International Monetary Fund) tests, which was crowned off by a three (3) day working visit by IMF (International Monetary Fund) head Christine LaGarde in June 2014 as stated in “Christine Lagarde Impressed By Awareness Of Jamaica's Need For Economic Reform” published Sunday June 29, 2014 10:48 am, The Jamaica Gleaner.

Minister of Finance and Planning, Peter Phillips was also accompanies by his Dream Team entourage in the guise of the following notables:

1.      Governor of the Bank of Jamaica, Mr. Brian Wynter

2.      Director General of the Planning Institute of Jamaica (PIOJ), Mr. Colin Bullock

3.      Financial Secretary, Mr. Devon Rowe

4.      Ambassador to the United States, His Excellency Stephen Vasciannie

This loan, which Minister of Finance and Planning, Peter Phillips, signed on behalf of Jamaica at the World Banks Headquarters in Washington D.C., is to support three (3) Development programs, one of which is Animation which I'd written about in my blog article entitled “Animation after KingstOON - World Bank Invests US$20 million in Jamaican Animation BPO Brother from another Mother with Great Expectations”. It's spread across the following three (3) Projects:

1.      US$50 million for the Foundation for Competitiveness and Growth

2.      US$20 million in the Youth Employment in Digital Animation Industry

3.      US$35 million Strategic Public Sector Transformation Project

World Bank Country Director for the country, Sophia Sirtaine, who signed on behalf of the World Bank, was quite upbeat on this agreement as well. The high level talks with the IMF were just one of several items on their itinerary, as they also had discussion with the US Treasury, State Department and the IDB (Inter-American Development Bank).

World Bank's US$105 million Loan – Animation finally gets the love it deserves

Since IMF head Christine LaGarde visit in June 2014, we’ve seeing the International Lending agencies open up their purse string to Jamaica.

First off the bat was the successful raising of US$800 million in July 2014 via the flotation of several GOJ Euro Bonds underwritten by Citibank and France's BNP as explained in “Record Haul! Jamaica Raises US$800m From External Bond Market”, Published Wednesday July 2, 2014, by Avia Collinder, Business Reporter, The Jamaica Gleaner and “Jamaica issues US$800-m eurobond, published Wednesday”, July 02, 2014, The Jamaica Observer.

This successful GOJ Euro Bonds is a triumphant return to the capital markets. More importantly, it has implications for the growth of the BPO (Business Process Outsourcing) or Call Center Industry, as it’s already funding some US$33 million in loans to create 8000 Call Center Jobs as stated in my blog article entitled “How to find work in Jamaica at Call Centers - 8000 Jobs coming after US$33 million Loan from DGB floated for 8 Call Centers”.

The BPO Cash cow is getting some love from the GOJ Euro Bond to the tune of some US$33 million. So it’s only fair that the fledgling Animation Industry also get some of the financial love and support as well as Jordanian VC (Venture Capital) company Oasis500 as noted in my blog article entitled “Animation after Kingstoon - Oasis500 and Start Up Jamaica takes Entrepreneurs From Boot Camps to Angel Investor Networks”.

Good to note here that YEDCI (Youth Employment in Digital and Creative Industries) mentioned above, which began as a document published by the World Bank entitled “Youth Employment in the Digital and Animation Industries” is what has morphed into the more official sounding YEDAI (Youth Employment in Digital Animation Industry).

The World Bank is gung-ho about Animation and plans to invest some US$20 million over a five year period in the fledgling Animation Industry as mentioned in the article “Jamaica can earn big money from animation”, published Wednesday, July 30, 2014 BY STEVEN JACKSON Business Reporter, The Jamaica Observer. 

This is going to be a big boost to the Animation World, albeit this is really geared at making Animation more like a BPO and isn't really money earmarked for Independent Animators as pointed out in my blog article entitled “Animation after KingstOON - World Bank Invests US$20 million in Jamaican Animation BPO Brother from another Mother with Great Expectations”.

The GOJ’s other stepchildren - SME VC's and Public Sector second chance at Economic Redemption

Still unclear as to what the other projects moneys are earmarked for, save to say that the Foundation for Competitiveness and Growth sounds like VC (Venture Capital) money for Private Sector Investments Projects and loans for SME (Small and Medium Enterprises), most likely administered via the JBDC (Jamaica Business Development Corporation) for VC funding and SRC (Scientific Research Council) for manufacturing facilities and assistance with packaging.

The Strategic Public Sector Transformation Project sounds like it might wind up in the Public Sector to help them run more efficiently. I hope that this also means Tax Reform, turning more Public Sector Agencies into Executive Agencies that have to make their own money and reduce the use of Public funds on paying utilities.

This means Solar Panels for Electricity and Light as is the plan for High School and some Public sector entities funded by the US$62 million dollars taken from the PetroCaribe Fund via the PCJ (Petroleum Corporation of Jamaica) as described in my blog article entitled “PCJ to install JA$62 million Solar Panels Systems - 15 Schools and 3 GOJ Institution Guinea-Pigs has Wigton III Project Venezuelan Connection”.

There’s also the possibility of using Water Harvesting to reduce Water Wastage as noted in my blog article entitled “Water Security Policy and Water Sector Liberalization Needed to avoid Drought”.

This is an idea that, ironically, is being spearheaded by Telecom Provider Digicel via the donation of Black Tanks to Schools across the country that are experiencing Water woes as described in my blog article entitled “Digicel CEO Barry O'Brien donates 3 650-Gallon Tanks to Downtown Schools - How the ALS Ice Bucket Challenge is Not Cool as it Wastes Ice Water during a Drought” instead of the wasteful Ice Bucket Challenge!

Telecommunications Services is a bill that’s in need of rapid reduction, for which the Ministry of Science, Technology, Energy and Mining had proposed GovNET, a independent Telecoms Facility to handle all Government Intranet Traffic as described in my blog article entitled “GOJ Parliamentarians upgraded to Microsoft Surface Tablets and GovNET Wide Area Network - Minister Paulwell efforts to reduce paper may accelerate Jamaican Tablet Adoption”.

So will the GOJ put all this money, both the US$800 million from the GOJ Euro Bonds and now the US$105 million from the World Bank to good use and NOT try to funnel it into Local Government and General Election Campaign Funding? Jamaica will be watching the PNP very carefully, as we've basically been given a second chance at Economic Redemption.

Here’s the link:

Youth Employment in the Digital and Animation Industries