New IDB loans for Trinidad & Tobago total US$130 million for climate change and financial sector strengthening

IDB.News Releases.Dec 5, 2011.The Inter-American Development Bank (IDB) approved a total of US$130 million for Trinidad and Tobago, including US$80 million for climate change measures and US$50 million to strengthen the financial sector. “IDB lending and technical assistance to the country is expected to total around US$1.5 billion from 2011 through 2015, with a focus on the country’s ambitious reform program,” said IDB Representative in Trinidad and Tobago, Iwan Sewberath Misser. “Our operations support public sector management, financial sector regulation, private sector development, education, social protection, climate change, energy, water and sanitation, and transport.”

In 2011, new financing for the country totaled US$290 million.

For 2012 the IDB will place an emphasis on the rehabilitation of the waste water systems, solid waste management, infrastructure improvements, local government reform, and in assisting with the rationalization of State Owned Enterprises (SOEs) through the public offerings program in Trinidad and Tobago.

The two loans approved are the following:

Climate Change

A US$80 million loan will help Trinidad and Tobago to incorporate the consideration of the impact of climate change into national policies and institutions.This initiative will also promote carbon markets and policies to reduce greenhouse gas emissions.

“The program will strengthen and modernize the regulatory, institutional and policy framework to develop and promote instruments to assess and reduce vulnerability and risks associated with climate change,” said IDB team leader Gerard Alleng. “Mitigation and adaptation measures will be key in an island state highly vulnerable to the impact of global climate change.”

Financial Sector
A US$50 million loan will strengthen the financial sector supervisory and regulatory framework.

“Trinidad and Tobago is considered the regional financial center for the English-speaking Caribbean,” said IDB team leader Juan Antonio Ketterer. “This program will focus on reinforcing macroeconomic stability to minimize the probability of exposure to any future vulnerability or systemic crisis.”

The Ministry of Finance will be in charge of both projects. The loans are for a 20-year term, with a four-year and five-year grace period respectively, at a variable interest rate based on LIBOR.'

Trinidad y Tabago:Desigualdades salariales intersectoriales

Según la economía laboral convencional una empresa típica no influye directamente en los salarios, que se determinan por la interacción entre la oferta y la demanda agregada de mano de obra. Bajo esas condiciones, los mercados se equilibran y el desempleo no friccional no puede subsistir a largo plazo. Los niveles de desempleo persistentemente altos en el Caribe cuestionan esa predicción crítica de la economía neoclásica. De acuerdo con las teorías de los salarios de eficiencia, los salarios son determinados endógenamente por las empresas, que escogen niveles salariales que reducen al mínimo el costo promedio por unidad de la “mano de obra de eficiencia”.

Una de las conclusiones derivadas de esas teorías es la posible persistencia del desempleo no friccional. Aquí se ofrecen pruebas que sugieren que en Trinidad y Tabago existen desigualdades salariales entre sectores a largo plazo, lo que haría aplicables las teorías de los salarios de eficiencia para explicar los fenómenos de su mercado laboral.

Allister Mounsey, Gerente de Planificación e Investigación de la Compañía de Desarrollo Turístico de Trinidad y Tabago y Tracy Polius, Investigadora invitada del Centro Caribeño para el Dinero y las Finanzas de la Universidad de las Indias Occidentales, San Agustín.

Signatura:  LC/G.2508-P/E.Fecha: Diciembre 2011.Páginas: 57-76. Revista CEPAL Nº 105

Trinidad y Tabago:Desigualdades salariales intersectoriales

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Trinidad and Tobago.National Forest Policy

Forest management has been practiced in Trinidad and Tobago since 1765 when the first Forest Reserve in the Western Hemisphere, the Main Ridge of Tobago, was designated. In 1942, while Trinidad and Tobago was still a British colony, the first official forest policy was formulated. In 1979, the Conservator of Forests commissioned a review and updating of the Policy, resulting in a draft Forest Resources Policy in 1981. However, this document was never formally

approved.

In 1998, another draft Forest Policy was prepared by the Conservator of Forests after a comprehensive forest policy review process. This document took into account the forestry sector‟s growing contribution to national development and the Forestry Division‟s role as a provider of goods and services, and as a facilitator to its stakeholders. This Revised Forest Policy of 1998 was presented to Cabinet in 1999 and Cabinet agreed, inter alia, that the draft Forest Policy would be published as a Green Paper for public comment. However, this process was not completed and the policy not formally adopted.

Because subsequent forest policy documents were not formally approved, the country‟s forest resources are still officially governed by the outdated 1942 Forest Policy. Considering the changes that have occurred in the policy environment, the national legal framework and in forest management strategies since 1998, the Cabinet of Ministers agreed that the Forest Policy be comprehensively reviewed and reformulated.

The formulation of this National Forest Policy was guided by a Cabinet-appointed Technical Advisory Committee comprising representatives from public sector agencies, non-governmental organisations, academia and the private sector, with technical assistance from the Food and Agriculture Organization of the United Nations (FAO). All relevant documents were identified and analysed, and several national consultations were held during the drafting of the document, to ensure that the needs and aspirations of all stakeholders were taken into consideration. The present statement is the result of this rigorous process, and it is hoped that its adoption and implementation will contribute to sustainable development through the effective conservation and management of forests and forests resources in Trinidad and Tobago.

This National Forest Policy is not an isolated statement, and it builds on the existing policy framework for forest management and it supplements and enhances other public policies and plans, especially the National Environmental Policy (NEP), the National Biodiversity Strategy and Action Plan (NBSAP) and the National Action Programme to Combat Land Degradation. It is also envisaged that this Policy will be enabled through existing and proposed policy instruments in the forestry sector, including legislation, strategic plans for key government agencies and other institutional actors, a National Forests Systems Plan, and management plans for specific areas and forest resources.

This National Forest Policy recognises that forests, forest resources and forest uses contribute significantly to national development, livelihoods and human wellbeing.

This National Forest Policy also recognizes that the quality and extent of the forest estate has changed dramatically since the 1940s, and the demands for goods and services from these forests have also greatly intensified. Given that the functions of forests are varied and the relationships between forests and other sectors are complex, this policy statement encompasses all the main dimensions of forest conservation, use and management. The key challenge of this policy is the maintenance of forest ecosystems in light of competing demands for land.

IDB. February 2011. Trinidad and Tobago.National Forest Policy.

Trinidad & Tobago.Innovation for Lasting Prosperity Medium-Term Policy Framework 2011-2014

This Medium-Term Policy Framework (MTPF) 2011–2014, embracing the theme ‘Innovation for Lasting Prosperity’ outlines Government’s perspective and intent on the socio-economic transformation that needs to take place in order to achieve our commitment to the people of Trinidad and Tobago of ‘Prosperity for All’. It is intended to be the first of the MTPFs to be articulated by this Government.

Within the context of the seven (7) development pillars articulated by the Government, the main thrusts of this MTPF are:

• To diversify and deepen the production base in order to ensure that in a context of depleting energy resources, the economy will continue to grow and sustain a high standard of living

• To move the economy up the value chain, improve competitiveness and expand investment both local and foreign

• To have a secure and safe nation and to strengthen the framework, institutions and infrastructure to support human security

• To expand the capacity of our citizens for knowledge accumulation and use, innovation, creativity and entrepreneurial activity

• To reduce socio-economic and regional inequalities within our borders, move people out of poverty and promote social inclusion through more meaningful economic participation

As the first overarching planning document of the new Administration, the opportunity has been taken in Part I to articulate in some detail the broad strategic direction being taken to restructure and transform the economy and the society; and the policy shifts that are necessarily being engineered to ensure that there is a decisive departure from past attempts at managing our development. This is in keeping with our understanding of the expectations of our citizens as well as in keeping with our commitment to them to lead and effect change.

This policy framework is a landmark achievement as it represents the first time any attempt has been made to integrate and articulate Government’s approach to development on the basis of shared priorities and cross cutting interventions. It represents a departure from the independent approach of State entities which results in the creation of silos. This framework encourages greater collaboration and the establishment of functional relationships among Ministries and agencies in an attempt to achieve greater coherence and effectiveness in implementing Government’s development objectives. Moreover, it provides clarity on Government’s objectives, which is beneficial for all stakeholders.

In setting five (5) priorities for action over the next three (3) years, the Government is effectively responding to some of the major concerns of the population while, at the same time, setting the foundations for achieving sustainable economic and social advancement of all citizens in the future. The priorities as elaborated in Part II of this MTPF are:

1. Crime and Law and Order;

2. Agriculture and Food Security;

3. Health Care Services and Hospitals;

4. Economic Growth, Job Creation, Competitiveness and Innovation; and

5. Poverty Reduction and Human Capital Development.

A final chapter outlines the role of the key stakeholders and the new institutional arrangements that have been put in place to guide and manage the development process. The Appendices identify the main projects in the 2011/2012 Public Sector Investment Programme (PSIP) that are aligned to the five (5) priorities for action over the planning horizon and the specific priorities of each Ministry.

Trinidad & Tobago.Innovation for Lasting Prosperity Medium-Term Policy Framework 2011-2014s

Trinidad and Tobago to transition to sustainable energy sources with IDB financing

News Releases.Nov 22, 2011. US$60 million loan to help Caribbean nation implement a more efficient, sustainable and clean energy matrix. The Inter-American Development Bank (IDB) has approved a US$60 million loan to help Trinidad and Tobago, a major producer of hydrocarbons, to transition towards a more efficient, sustainable and clean energy matrix.

The loan, the first in a programmatic series of three consecutive operations, will strengthen the regulatory and legal framework to contribute to a more sustainable energy sector with a focus on renewable energy, increased efficiency, transparency and accountability. It will support the preparation of new policy and legislation for energy efficiency and measures to increase the environmental sustainability of alternative energy fuels such as natural gas and compressed natural gas (CNG). Finally, it will promote efficient and rational production and use of fossil fuels and strengthen institutional capabilities for sustainable energy and public education efforts.

“The program will promote a sustainable energy framework that will guide exploration, exploitation, utilization and monetization of energy resources where energy efficiency, renewable energy sources such as solar water heaters, alternative energy fuels, carbon reduction and innovation play a strategic role,” IDB Project Team Leader Natacha Marzolf said.

By supporting these moves, the program will contribute to Trinidad and Tobago’s efforts to reduce greenhouse gas emissions.

Under this program, authorities will draft a “Green Paper for Energy and Minerals Policy in Trinidad and Tobago” which will shape the energy sector regulatory framework and will then be submitted to public consultations for feedback. The program includesa series of tax and fiscal incentives for the importation and installation of wind turbines and solar water heaters and for kits used to convert vehicles so they can run on CNG. There will also by incentives for companies to carry out energy audits and implement other energy-efficiency measures.

The program will support public education and awareness efforts regarding energy and will help draft a plan for the establishment of a Caribbean Renewable Energy Center, which will help spread cleaner energy principles throughout the region.

The loan is for a 20-year term, with a five-year grace period, and carries a variable interest rate based on LIBOR.

Trinidad and Tobago.TT-T1025 : Support the enhancement of the education strategy

After the national general elections in 2010, as part of the newly installed Government¿s mandate, the Ministry of Education (MOE) undertook a re-visioning exercise, which led to the development of a new MOE Strategy and transformation initiative.

The transformation initiative will guide the work of the Ministry over the medium to long-term and is expected to lead to more focused and streamlined services within the education sector. The MOE is keen on advancing its transformation initiative in support of the achievement of its vision for the children of Trinidad and Tobago.

This entails the implementation and operationalization of its strategic plans and defined projects, complemented by solid monitoring and evaluation mechanisms to measure the results and impact. In order to fully realize the vision guiding the MOE transformation initiative, further research and understanding is required. One of the critical areas within the MOE Strategy is the ongoing Government¿s priority to modernize the education sector, as demonstrated by the Government¿s commitment to improve the use of Information and Communications Technology (ICT) in schools.

In 2010 the current administration implemented a one-to-one laptop program, which offers a personal laptop computer to all incoming secondary students. Significant strides have also been documented in past programs leading to increases in student ICT competency. Student scores in technology education exams increased from 20% in 2000 to 55% in 2011. Teacher use of technology in the classroom increased from 42.6% to 78.5%.

However, to maximize the potential benefits of this initiative a comprehensive ICT for Education strategy is required, as well as ongoing teacher training to enhance classroom education through ICT-based learning.The MOE has requested IDB support to conduct the necessary research and analysis to develop further clarity and understanding of the requirements for a comprehensive, education system progressing seamlessly towards the achievement of the MOE¿s Vision for the Children of Trinidad and Tobago.

In this regard, a KCP is being pursued to support the Ministry in conducting the required research that will further enhance the MOE Strategy; design and develop a new ICT for Education strategy; and improve the MOE¿s capabilities in research and development. Considering the importance of gender issues in the region, the research will also incorporate a gender perspective. The KCP is expected to inform and lead to new operations in the sector.

TT-T1025 : Support the enhancement of the education strategy