World Bank points finger at Jamaica's 'functionally illiterate'
Haque feels they are partly to be blamed for the country's slow growth rate
BY ALICIA DUNKLEY Sunday Observer staff reporter [email protected]
Sunday, July 12, 2009
THE two-thirds of Jamaica's labour force who are "functionally illiterate" is partly to blame for the country's dismal growth rate, according to the World Bank.
"Besides the one third of potential workers who remain outside of the labour force and are not even looking for jobs; a little over two thirds of those who are in the labour force are functionally illiterate in the sense that they have never taken a test in their lives, not even at the grade nine level," World Bank special representative, Badrul Haque, said last Tuesday during a specially arranged sitting of Parliament at Gordon House in Kingston.
"So you begin to see a reason why countries like Lebanon, despite very high debt, can grow very rapidly and Jamaica has difficulty," he said, pointing to estimates from the Planning Institute of Jamaica which show that labour productivity in the last 35 years have been declining by 1.5 per cent annually. In addition to that, the country's Gross Domestic Product (GDP) growth rate has stood at just about 0.8 per cent annually over the last 35 years.
"If you factor in the fact that population growth has been about 0.5 (per cent) then, really, per capita wise it's been almost flat.
The labour force is an issue to be addressed," Haque said, adding that the number for persons falling into the "functionally illiterate" bracket could be higher taking into account those who chose not to be part of the formal labour force.
In the meantime, the World Bank official said the fact that 80 per cent of the liquid assets held by the financial sector was in government bonds posed a potential systemic risk for the sector.
He further expressed concerns that if the country were to be hit by a category four or five hurricane, it would be very difficult to find the resources internally or externally to cope.
And World Bank country director Yvonne Tsikata said one of the questions the entity posed was whether Jamaica's GDP was being measured correctly, given the large informal sector. She further expressed concern that the high level of investment was at variance with the low growth rates.
"Investment has been 30 per cent of GDP, that's sizeable. The question is what is the composition of that investment and how much is private versus public?
"For the public, has it gone into the areas that would generate the greatest rates of return? That's an issue collectively we need to look at.
"It's very odd to have a situation where you have high investment and low growth, it doesn't add up; there is something strange there," Tsikata said, noting that the World Bank would be producing a country economic report this year.
Parliamentarians were also told that while Jamaica was in fairly good shape in terms of achieving the Millennium Development Goals by 2015, it would not meet targets set for infant and maternal mortality.
"It still remains high, that hasn't changed in the last 20 years," Haque said.
The team met with the parliamentarians to discuss the Jamaica/World Bank Country Partnership Strategy for 2010-2013 in a bid to verify whether they had "correctly identified the critical development challenges in Jamaica" and get feedback on the planned areas of focus over the period.
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Haque feels they are partly to be blamed for the country's slow growth rate
BY ALICIA DUNKLEY Sunday Observer staff reporter [email protected]
Sunday, July 12, 2009
THE two-thirds of Jamaica's labour force who are "functionally illiterate" is partly to blame for the country's dismal growth rate, according to the World Bank.
"Besides the one third of potential workers who remain outside of the labour force and are not even looking for jobs; a little over two thirds of those who are in the labour force are functionally illiterate in the sense that they have never taken a test in their lives, not even at the grade nine level," World Bank special representative, Badrul Haque, said last Tuesday during a specially arranged sitting of Parliament at Gordon House in Kingston.
"So you begin to see a reason why countries like Lebanon, despite very high debt, can grow very rapidly and Jamaica has difficulty," he said, pointing to estimates from the Planning Institute of Jamaica which show that labour productivity in the last 35 years have been declining by 1.5 per cent annually. In addition to that, the country's Gross Domestic Product (GDP) growth rate has stood at just about 0.8 per cent annually over the last 35 years.
"If you factor in the fact that population growth has been about 0.5 (per cent) then, really, per capita wise it's been almost flat.
The labour force is an issue to be addressed," Haque said, adding that the number for persons falling into the "functionally illiterate" bracket could be higher taking into account those who chose not to be part of the formal labour force.
In the meantime, the World Bank official said the fact that 80 per cent of the liquid assets held by the financial sector was in government bonds posed a potential systemic risk for the sector.
He further expressed concerns that if the country were to be hit by a category four or five hurricane, it would be very difficult to find the resources internally or externally to cope.
And World Bank country director Yvonne Tsikata said one of the questions the entity posed was whether Jamaica's GDP was being measured correctly, given the large informal sector. She further expressed concern that the high level of investment was at variance with the low growth rates.
"Investment has been 30 per cent of GDP, that's sizeable. The question is what is the composition of that investment and how much is private versus public?
"For the public, has it gone into the areas that would generate the greatest rates of return? That's an issue collectively we need to look at.
"It's very odd to have a situation where you have high investment and low growth, it doesn't add up; there is something strange there," Tsikata said, noting that the World Bank would be producing a country economic report this year.
Parliamentarians were also told that while Jamaica was in fairly good shape in terms of achieving the Millennium Development Goals by 2015, it would not meet targets set for infant and maternal mortality.
"It still remains high, that hasn't changed in the last 20 years," Haque said.
The team met with the parliamentarians to discuss the Jamaica/World Bank Country Partnership Strategy for 2010-2013 in a bid to verify whether they had "correctly identified the critical development challenges in Jamaica" and get feedback on the planned areas of focus over the period.
Other Stories
We are Jamaicans... Not PNP or JLP
McNeill says 'water problem' frustrating
Hedonism ads no longer running on Playboy TV, says Issa
Undeterred by scarce resources
This is for the (few) journalists who still read
How one woman created an entire village
Renewables to meet 15 per cent of Jamaica's energy needs
One dead, two injured in Red Hills Road shootings
Question Time
Failure to stop at the scene of an accident is a breach
World Bank points finger at Jamaica's 'functionally illiterate'
Gifted 15-year-old heading to US college on scholarship
Today's Cartoon
View Previous CartoonsPoll
How do you feel about Bernie Madoff's 150 years prison sentence?
It's too harsh.
It's perfect...The punishment fits the crime.
It's too light.
View Results
Results published weekly in Sunday Finance
Username:
Password:
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