Wednesday, April 23, 2014

Economic Status and Remittance Behavior Among Latin American and Caribbean | UHY Dawgen Chartered Accountants Blog

Economic Status and Remittance Behavior Among Latin American and Caribbean | UHY Dawgen Chartered Accountants Blog:

Remittances constitute a key form of migrant transnational engagement. In 2012, remittances
to Latin America and the Caribbean reached over US$61 billion, representing a major source of
income for many families, communities, and countries in the region.
Migrant remittances can serve an important role in reducing poverty and enabling development. Moreover, remittances often supplement other sources of income, allowing recipients to make greater investments in their health, education, housing and/or businesses.
It is essential to note that remittances are the product of a great deal of hard work and sacrifice
on the part of migrants. When migrants are economically vulnerable, so is their ability to remit.
The graph below shows how remittances to Latin America and the Caribbean dropped during
the 2008-2009 U.S. recession, when migrants faced greater difficulties in the labor market.more
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Comprehensive tax reform is a key plank of Jamaica’s Economic Reform Programme. | UHY Dawgen Chartered Accountants Blog

Comprehensive tax reform is a key plank of Jamaica’s Economic Reform Programme. | UHY Dawgen Chartered Accountants Blog:

Posted on
Comprehensive tax reform is a key plank of Jamaica Economic Reform programme. The government has finalized a blueprint of all the key elements of the 2013/14 reform in February 2014.
The tax reform is expected to result in a reduction of tax expenditures from around 6 percent of GDP in recent years to 2½ percent by 2015/16. The new system will be effective at the start of FY2014/15.
A fiscal rule will be established to enhance fiscal transparency and lock in the gains of fiscal consolidation. In particular, the fiscal policy framework will be revised to limit the annual budgeted overall fiscal balance of the public sector as defined under the rule, to achieve a reduction in public debt to no more than 60 percent of GDP by the end of FY 2025/26.
Jamaica Debt Profile
The new Charities Act is now in effect. The government has ceased the granting of waivers to charities other than under the new Act and, effective December 1, 2013, all new applications (organizations/individuals) must be registered under the new regime, in order to be eligible for exemptions granted under the Act. A transitional period of six months has been provided under the Act to existing charities to facilitate registration at the end of which, if not registered as per the new regime, these entities would no longer qualify to benefit from requisite exemptions. This transition period ends on June 24, 2014. Government Tax policy as contain in IMF Plan
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Monday, April 21, 2014

The Importance of Domain Names to Business

Using the Internet even for simple tasks, such as sending or receiving email, has become an everyday activity for personal and professional purposes. Many free Internet services abound, and it's common for most people first email address or website to be provided through one of these free services, such as AOL or Yahoo! For businessmen who want to present a professional image however, the importance of getting a domain name should not be underestimated.
UHY Dawgen eCommerce Division can assist you in developing your web Platform. Register your domain today or call us at 9084007 for Detail Proposal.

What is Caricom? | UHY Dawgen Chartered Accountants Blog

What is Caricom? | UHY Dawgen Chartered Accountants Blog:

The Caribbean Community (CARICOM) is an organization which consists of 15 Caribbean nations and dependencies. These member states are Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat (a British overseas territory in the Leeward Islands), Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago. To promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policies are amongst the most important targets of the organization.
In addition to the community’s full members, there are 5 associate members and 7 observers. The 5 associate members are Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, and Turks and Caicos. The role of the associate members, which are all British overseas territories, is not established yet. The observers are states which engage in at least one of CARICOM’s technical committees.
Objectives of the Community have been announced as follows:
  • Improved standards of living and work
  • Full employment of labor and other factors of production
  • Accelerated, coordinated and sustained economic development and convergence
  • Expansion of trade and economic relations with third States
  • Enhanced levels of international competitiveness
  • Organization for increased production and productivity
  • The achievement of a greater measure of economic leverage and effectiveness of Member States in dealing with third States, groups of States and entities of any description
  • Enhanced co-ordination of Member States’ foreign and [foreign] economic policies
  • Enhanced functional co-operation, including:
    • More efficient operation of common services and activities for the benefit of its peoples
    • Accelerated promotion of greater understanding among its peoples and the advancement of their social, cultural and technological development
    • Intensified activities in areas such as health, education, transportation, telecommunications 
    • Get Copy of original_treaty-text
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Sunday, April 20, 2014

Rental Housing Wanted: Policy Options for Latin America and the Caribbean | UHY Dawgen Chartered Accountants Blog

Rental Housing Wanted: Policy Options for Latin America and the Caribbean | UHY Dawgen Chartered Accountants Blog:

Study: rentals could help alleviate housing deficit in Latin America and the Caribbean

New IDB report suggests alternative to traditional home ownership-based policies 
Governments traditionally have promoted ownership of newly built homes as a solution to the housing shortage in Latin America and the Caribbean. But a revealing new study highlights the key role rentals play in urban areas and their potential for serving the needs of a broad variety of growing population groups.
According to Rental Housing Wanted, a new report by the Inter-American Development Bank (IDB), 1 in 5 Latin American households, or roughly 30 million families, are renters. This proportion has been on the rise since the 1990s in Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Nicaragua, Peru, and Uruguay. Nevertheless, there is a large stock of unoccupied homes that could help ease the regional housing crunch.
Nearly 54 million families, or 37 percent of the region’s households, suffer housing problems such as overcrowding, insufficient access to basic services, shoddy construction or materials, or lacking a property title. What is more, some 9 million households are either homeless altogether, or live in substandard homes, or ones that are beyond repair.
Colombia is the Latin American country where renting is the most common (38 percent of all households), while in the Dominican Republic the ratio is one in three households and in Honduras, Ecuador, Bolivia and Jamaica it is one in four. The five cities with the highest rates of rented homes are Bogota, Santo Domingo, Cali, Medellin and Quito, where it exceeds 35 percent of all households.
“Unlike in more developed regions, in Latin America renting is not something restricted to the poorest people,” said AndrĂ©s Blanco Blanco, IDB senior specialist and a co-author of the study.
“In fact, in some countries in our region the trend toward renting rises as household income goes up, and in others rentals are concentrated among middle-income households. The reason for this is the high rate of informal housing, which lets low-income families own their houses, whatever their quality or location,” he added.
The study, which examined 19 metropolitan areas of Argentina, Brazil, Chile, Colombia, El Salvador, Jamaica, Mexico, Peru and Uruguay, debunks the myth that only the rich rent to the poor. Landlords vary widely in their socio-economic level, with just a minimal presence of major real estate investors and a supply spread out among many small-scale owners. For example, in Chile 80 percent of landlords own just a single rental home.
The preference for renting is associated with certain social groups: the ones who rent most often are young people, divorced individuals and immigrants. The kind of household also matters. Extended families and widows rent less frequently than nuclear families, while single-people and unmarried couples usually are renters. There is a direct link between the age of the person and the likelihood that they rent. Depending on the country, a person between the ages of 25 and 34 is between three and eight times more likely to rent their home in comparison to an older person. And a young person aged 15 to 24 is five to 14 times more likely to do so than an older person.
Renting offers major advantages over homeownership for many people because it tends to be concentrated in areas that are more centrally located, more densely populated and more established neighborhoods. It is also better adapted to the preferences of certain social groups and works well in a labor market that demands that people be mobile.
In light of these findings, the IDB is engaging in a dialogue with countries of the region to explore how a policy to promote rental markets could complement their broaderhousing policies, establishing incentives both for landlords and renters, updating regulations and linking housing issues with the tools of urban planning.
“What this study proposes is to open up new, unexplored territory in housing policy,” said Vicente Fretes, chief of the IDB’s Fiscal and Municipal Management Division and co-author of the report. “It’s not a question of replacing the focus on home ownership but rather of complementing it. It’s sound advice, taking into account the advantages for fiscal sustainability and for containing urban sprawl,” Fretes said.
Some policies could be relatively simple, such as expediting home repossessions or creating a system of rental guarantees. This would help expand the supply of homes available for rent, creating incentives to add to the market at least part of the considerable stock of vacant homes, which in some countries represents as much as 20 percent of all homes.
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The Business Climate in Jamaica: What Does the Enterprise Survey Have to Say? | UHY Dawgen Chartered Accountants Blog

The Business Climate in Jamaica: What Does the Enterprise Survey Have to Say? | UHY Dawgen Chartered Accountants Blog:

Jamaican firms are constantly plagued by a number of issues that restrict their ability to grow. The World Bank’s Enterprise Survey examined the key indicators to give insight on the business climate in Jamaica. Compared with firms in the
Latin America and Caribbean (LAC) region, Jamaican firms face several constraints to growth and operation. Within the Caribbean Country Department (CCB), Jamaica is the only member—except Suriname—that identified close to
half of the areas as constraints to firm operation. Tax rates, access to finance,practices of the informal sector, and electricity were identified as their biggest
obstacles.See Report
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The Question is Not Whether “To Devalue or Not to Devalue?” But Rather “What to Devalue?” | UHY Dawgen Chartered Accountants Blog

The Question is Not Whether “To Devalue or Not to Devalue?” But Rather “What to Devalue?” | UHY Dawgen Chartered Accountants Blog:

Low economic growth, a key concern of policymakers in the Caribbean, could be due to
inadequate competitiveness. In this policy brief, we review the problem of a lack of
competitiveness and the policy options to improve competitiveness and hence promote economic
A sustained current account deficit of the balance of payments is prima facie evidence of
a lack of competitiveness. We discuss three devaluation policy options to improve
competitiveness: an external devaluation, an internal devaluation, and a fiscal devaluation.
These options aim to increase exports relative to imports and thus stimulate economic growth.
An indirect measure of competitiveness is the current account of the balance of payments. A
current account deficit holds when a country’s (a) imports of goods and services exceed its
exports of goods and services; (b) domestic consumption and investment exceed its production;
and (c) domestic aggregate savings are less than domestic aggregate investment.
In economic vernacular, a current account deficit holds when a country is “living beyond its means.”
The Caribbean suffers from an increasing current account deficit relative to the rest of
small economies (ROSE)—classified as countries with a population of fewer than 3 million
people, a metric that is used as a comparator for the Caribbean. Detail Report
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