Jamaica COVID-19 Response and Recovery Development Policy Financing

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The development objective of the COVID-19 Response and Recovery Development Policy Financing in Jamaica is to assist in Jamaica's response to the COVID-19 crisis by: (i) protecting poor and vulnerable people; (ii) supporting sustainable business growth and job creation; and (iii) strengthening policies and institutions for resilient and sustainable recovery. The operation is structured around three interrelated pillars aligned with the objectives of the Bank’s COVID-19 Crisis Response Approach Paper. The external sector is struggling as inbound tourism comes to a standstill augmenting job loss from slowing domestic demand. In addition, the pandemic has exacerbated already high levels of economic and financial exclusion, generating significant vulnerabilities for medium, small, and micro enterprises (MSMEs) and households. In this context, pillar 1 supports the Government of Jamaica’s (GOJ’s) ongoing efforts to protect poor and vulnerable households and communities from the economic and social shocks of the crisis, retain human capital, and promote equity and inclusion in the recovery. It includes targeted relief to select groups while also advancing reforms for the safe re-opening of the economy. Pillar 2 supports the GOJ’s efforts to promote sustainable business growth and job creation by helping firms survive the initial crisis shock and protect jobs. It also includes efforts to expand financial inclusion through reforms supporting the emergence of financial technology (Fintech) and the development of microcredit. Measures to expedite cross border trade is another important feature of this pillar. Reforms under pillar 3 are designed to help Jamaica’s long-term recovery by strengthening monetary, fiscal, and environmental policies for sustainable growth and transparent debt reduction.

World Bank Group

Project

Forest Products and Packaging, Hotel, Government