The World Bank will lend Jamaica up to 150 million US dollar (117,45 million euro) over four years for programs aimed boosting economic growth and reducing crime.
The package will include an assessment of poverty and the Caribbean islands financial sector, said Errol Graham, an economist with the World Banks Caribbean and Latin America office Thursday.
Some 75 million dollar (58,73 million euro) will fund childhood development programs, rural development, improvements to inner-city services and a program for troubled youths, Graham said. If key economic indicators remain on track, the island will receive another 75 million dollar for public sector reform, he said.
The funds will be disbursed in phases between 2006 and 2009.
Jamaicas economy grew a modest 1 percent in 2004, slowed by high world oil prices and a drop in agriculture exports that followed Hurricane Ivan in September. The government is predicting 3,6 percent growth in 2005.
About 16 percent of Jamaicas population of 2,6 million lives below the poverty line, according to the Washington-based World Bank.
Crime has been a big impediment to economic growth. A record 1.445 homicides were reported in 2004, violence blamed mostly on gangs fighting for control of drug and extortion rings. More than 500 people have been slain so far this year, police say.
Last month, Jamaicas Parliament passed a 5,6 billion US dollar, (4,3 billion EURO) budget that will impose new taxes on consumers and tourism to finance revamped educational and housing programs.
More than 60 percent of the 2005-2006 budget will go toward paying down Jamaicas debt, estimated at 135 percent of the islands gross domestic product of about 11 billion US dollar (8,61 billion euro).
Kilde: The Push Journal
