## Dominica—Preparation Status Report of Growth and Social Protection Strategy

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**Canonical URL:** [Dominica—Preparation Status Report of Growth and Social Protection Strategy](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05380.pdf)

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### Introduction
- The Government of the Commonwealth of Dominica (GOCD) submitted its Interim Poverty Reduction Strategy Paper (I-PRSP) to the Boards of the IMF and the World Bank in December of 2003.
- The I-PRSP presented an assessment of the poverty situation in Dominica and outlined an interim medium- and long-term strategy to tackle it.
- The Executive Boards of the World Bank and the IMF, and staff of both institutions, provided feedback. The Joint Staff Assessment emphasized:
  - the need for a more detailed analysis of structural reforms needed in Dominica; and
  - the importance of maintaining macroeconomic stability.
- Staffs suggested involving the large Dominican Diaspora in the consultation process.

### Status of the Poverty Reduction Strategy Paper
- The Growth and Social Protection Strategy (GSPS) was originally envisaged to be finalized by the end of 2004.
- Substantial progress has been made on many areas from the I-PRSP and consultation issues, but the GSPS has not yet been completed.
- The GOCD delayed finalization for two reasons:
  - The GSPS is intended to guide medium-term policy and must cover all areas relevant to the reform agenda.
  - An extensive consultation process was undertaken, including focus group discussions earlier in the year and a donors meeting in June 2005.
- Current plan:
  - The GOCD is in the process of finalizing the GSPS and expects to submit the document to the Boards of the Bank and Fund by the end of this year.

### Issues Raised in Joint Staff Assessment and Government Responses
- Macroeconomic stability
  - Measures taken to improve the primary balance.
  - Collaborative debt restructuring sought to help put public finances on a firmer footing.
- Fiscal structural reforms
  - Considering amendments to the Finance Administration Act to ensure fiscal responsibility in the future.
  - Legislation recently passed to allow the introduction of a Value Added Tax in March of 2006.
  - Ongoing reforms on the expenditure side, including rationalizing public wages.
- Sectoral strategies to enhance growth
  - Adoption of a national tourism policy to set the medium-term policy agenda.
  - With World Bank technical assistance, review of the Electricity Supply Act to modify it and allow exploitation of geothermal energy, potentially exportable to neighboring islands.
  - Oversight of development of a water industry with potential to export bulk and bottled water.
- Social protection
  - With IMF and World Bank technical assistance, the government is assessing how to tackle the unfunded liabilities of the social security system, which will start to run deficits starting in 2014 as population aging puts pressure on the system.
  - The government has analyzed the problematic of HIV/AIDS in the country and the situation of the Carib community; strategies to address these will be presented in the final GSPS.
- Structural reform agenda
  - The final GSPS will contain a much more detailed structural reform agenda than the I-PRSP, reflecting the emphasis from consultations and technical assistance.

### New timeline
- After reviewing recommendations from the consultation process in the first half of 2005, the GOCD states the GSPS can be finalized shortly, and on the outside by the end of the year.

*Attachment to letter from Honourable Roosevelt Skerrit, Prime Minister and Minister of Finance and Planning, Roseau, Dominica; dated September 8, 2005.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2005/_cr05380.pdf_