The Government has signed a US$20 million loan agreement with the World Bank for the Social Protection for Increased Resilience and Opportunities (SPIRO) Project.
The SPIRO Project aims to increase Jamaica’s social protection coverage by establishing a national unemployment insurance programme and strengthening the social protection delivery system.
In his remarks during Tuesday’s (June 11) SPIRO Visibility Ceremony at the Ministry of Finance and the Public Service in Kingston, Portfolio Minister, Dr. the Hon. Nigel Clarke, underscored that Jamaica has a well-respected social protection apparatus.
He noted that gaps were identified in the system, resulting in the launch of the Social Pension Programme in 2021 which has approximately 14,000 beneficiaries to date.
Dr. Clarke further explained that the COVID-19 experience and the economic and social impact from the loss of jobs were clear indicators that Jamaica needed to establish an unemployment insurance scheme.
“The Government is focused on improving the social safety net and providing for the most vulnerable members of our society, including those who may not be vulnerable today but who can become vulnerable because they become unemployed,” the Minister said.
He added that the social stability of the Jamaican society will be stronger with a mechanism that provides a countercyclical antidote to the setbacks resulting from unemployment.
World Bank Country Director, Lilia Burunciuc, shared that SPIRO will support transformative changes in Jamaica’s social protection system.
“We are especially looking forward to the strengthening of the social protection delivery systems, which includes the development of integrated, interoperable and risk informed social protection information system that will revolutionise the implementation of social assistance programmes in Jamaica,” Ms. Burunciuc said.
SPIRO comprises five components and will be executed by the Ministry of Labour and Social Security (MLSS) over a six-year period, ending January 2030.
Component one will enhance Jamaica’s resilience through the establishment and implementation of unemployment insurance at an estimated cost of US$1.34 million.
Component two, valued US$8.75 million, will support the strengthening of employment services for employers and jobseekers, including unemployment insurance beneficiaries and vulnerable groups.
Component three, valued US$7.96 million, will focus on supporting the development and implementation of system-wide information systems, providing technical assistance to modernise key programmes, processing and collecting the evidence needed for continuous improvement and delivering capacity building to the MLSS and other key social protection stakeholders.
The fourth component will cover project management at an estimated cost of US$1.9 million, while component five will have a zero-fund allocation for rapid access to World Bank financing for the response and immediate recovery needs during and immediately after a crisis or emergency.
For her part, Permanent Secretary in the Ministry of Labour and Social Security, Collette Roberts Risden, expressed gratitude to the World Bank for its continued support of Jamaica’s social protection programmes.
“We look forward, in particular, to the finalisation in terms of the design of the unemployment-insurance benefit and the other labour market programmes that will be financed through this project,” she said.
Mrs. Roberts Risden advised that the World Bank has committed to assisting the Ministry with an analysis of the selection methodology for the Programme of Advancement Through Health and Education (PATH), which is under review.
