SGJM: Sugar Jamaica
Sugar made Jamaica one of the most valuable possessions in the world for more
than 150 years. The British Parliament abolished slavery as of August 1, 1834.
After a long period of direct British colonial rule, Jamaica gained a degree of
local political control in the late 1930s, and held its first election under
full universal adult suffrage in 1944. Jamaica joined nine other U.K.
territories in the West Indies Federation in 1958 but withdrew after Jamaican
voters rejected membership in 1961. Jamaica gained independence in 1962,
remaining a member of the Commonwealth.
Historically, Jamaican emigration has been heavy. Since the United Kingdom
restricted emigration in 1967, the major flow has been to the United States and
Canada. About 20,000 Jamaicans emigrate to the United States each year; another
200,000 visit annually. New York, Miami, Chicago, and Hartford are among the
U.S. cities with a significant Jamaican population. Remittances from the
expatriate communities in the United States, United Kingdom, and Canada,
estimated at up to $1.6 billion per year, make increasingly significant
contributions to Jamaica's economy.
ECONOMY Jamaica has natural resources, primarily bauxite, adequate water
supplies, and climate conducive to agriculture and tourism. The discovery of
bauxite in the 1940s and the subsequent establishment of the bauxite-alumina
industry shifted Jamaica's economy from sugar and bananas. By the 1970s, Jamaica
had emerged as a world leader in export of these minerals as foreign investment
increased.
The country faces some serious problems but has the potential for growth and
modernization. Currency reserves, remittances, tourism, agriculture, mining,
construction, and shipping all remain strong, and Jamaica has attracted over
U.S. $4.4 billion in foreign direct investment over the past decade. However,
high unemployment, burdensome debt, an alarming crime rate, and anemic growth
continue to darken the country抯 prospects. After 4 years of negative economic
growth, Jamaica's GDP grew by 0.8% in 2000, and has grown in the 0.5% to 2.5%
range, year-on-year, since then. Inflation fell from 25% in 1995 to 6.1% in 2000
and has mostly registered single digits since then, including calendar year
2006, which saw the lowest rate in 18 years, at 5.8%. Through periodic
intervention in the market, the central bank prevents any abrupt drop in the
exchange rate. Nevertheless, the Jamaican dollar continues to slip despite
intervention, resulting in an average exchange rate of J$68.15 to the U.S. $1.00
by May 2007.
Weakness in the financial sector, speculation, and low levels of government
investment erode confidence in the production sector. The government is unable
to channel funds into social and physical infrastructure because of an
overwhelming debt-to-GDP ratio, which currently stands at approximately 135%.
Almost 60 cents on every dollar earned by the Jamaican Government goes to debt
servicing and recurrent expenditure. Tax compliance rates also contribute to the
problem, hovering at approximately 45%. On the other hand, net internal reserves
remain healthy, at $2.3 billion at the end of 2006.
Jamaican Government economic policies encourage foreign investment in areas
that earn or save foreign exchange, generate employment, and use local raw
materials. The government provides a wide range of incentives to investors,
including remittance facilities to assist them in repatriating funds to the
country of origin; tax holidays which defer taxes for a period of years; and
duty-free access for machinery and raw materials imported for approved
enterprises.
Free trade zones have stimulated investment in garment assembly, light
manufacturing, and data entry by foreign firms. However, over the last 5 years,
the garment industry has suffered from reduced export earnings, continued
factory closures, and rising unemployment. This can be attributed to intense
international and regional competition, exacerbated by the high costs of
operations in Jamaica, including security costs to deter drug activity, as well
as the relatively high cost of labor. The Government of Jamaica hopes to
encourage economic activity through a combination of privatization, financial
sector restructuring, falling interest rates, and by boosting tourism and
related production activities.
GOVERNMENT
The 1962 constitution established a parliamentary system based on the U.K.
model. As chief of state, Queen Elizabeth II appoints a governor general, on the
advice of the prime minister, as her representative in Jamaica. The governor
general's role is largely ceremonial. Executive power is vested in the cabinet,
led by the prime minister.
Parliament is composed of an appointed Senate and an elected House of
Representatives. Thirteen Senators are nominated on the advice of the prime
minister and eight on the advice of the leader of the opposition. General
elections must be held within 5 years of the forming of a new government. The
prime minister may ask the governor general to call elections sooner, however.
The Senate may submit bills, and it also reviews legislation submitted by the
House.
It may not delay budget bills for more than 1 month or other bills for more than
7 months. The prime minister and the cabinet are selected from the Parliament.
No fewer than two or more than four members of the cabinet must be selected from
the Senate.
The judiciary also is modeled on the U.K. system. The Court of Appeals is the
highest appellate court in Jamaica. Under certain circumstances, cases may be
appealed to the Privy Council of the United Kingdom. Jamaica's parishes have
elected councils that exercise limited powers of local government.
Geography
Area: 10,991 sq. km. (4,244 sq. mi.).
Cities: Capital--Kingston metro area and St. Andrew (pop. 650,000). Other
cities--Montego Bay (96,000), Spanish Town (131,515).
Terrain: Mountainous, coastal plains.
Climate: Tropical.
People
Nationality: Noun and adjective--Jamaican(s).
Population (2006 est.): 2,673,800.
Annual growth rate (2006): 1.5%.
Ethnic groups: African 90.9%, East Indian 1.3%, Chinese 0.2%, White 0.2%, mixed
7.3%, other 0.1%.
Religious affiliation: Anglican, Baptist and other Protestant, Roman Catholic,
Rastafarian, Jewish.
Languages: English, Patois.
Education: Years compulsory--to age 14. Literacy (age 15 and over)--79.9%.
Health (2005): Infant mortality rate--19.2/1,000. Life expectancy--female 75
yrs., male 73 yrs.
Work force (2006, 1.25 million): Industry--17.1%; agriculture--17.9%;
services--64.9%.
Government
Type: Constitutional parliamentary democracy.
Independence: August 6, 1962.
Constitution: August 6, 1962.
Branches: Executive--Governor General (chief of state, representing British
monarch), prime minister, cabinet. Legislative--bicameral Parliament (21
appointed senators, 60 elected representatives). Judicial--Court of Appeal and
courts of original jurisdiction.
Subdivisions: 14 parishes, 60 electoral constituencies.
Political parties: People's National Party (PNP), Jamaica Labour Party (JLP),
National Democratic Movement (NDM), United Peoples Party (UPP).
Suffrage: Universal at 18.
Economy
GDP (2005): $9.7 billion.
Real growth rate (2006): 2.5%.
Per capita GDP (2005): $3,640.
Natural resources: Bauxite, gypsum, limestone, marble, sand, silica.
Agriculture: Products--sugar, bananas, coffee, citrus fruits, condiments and
spices.
Industry: Types--tourism, bauxite and alumina, processed foods, sugar, rum,
cement, metal, chemical products.
Trade (2005): Exports--$1.5 billion: alumina, bauxite, sugar, bananas,
chemicals, citrus fruits and products, rum, coffee. Major markets (2005)--U.S.
26.3%, U.K. 10.8%, Canada 19.6%, Trinidad and Tobago 0.6%, Japan 1.0%. Imports
(2005)--$4.7 billion: machinery, transportation and electrical equipment, food,
fuels, fertilizer. Major suppliers (2000)--U.S. 40.1%, Trinidad and Tobago 9.0%,
Japan 4.5%, U.K. 2.4%, Canada 2.3%.
PEOPLE AND HISTORY
Arawaks from South America had settled in Jamaica prior to Christopher Columbus'
first arrival at the island in 1494. During Spain's occupation of the island,
starting in 1510, the Arawaks were exterminated by disease, slavery, and war.
Spain brought the first African slaves to Jamaica in 1517. In 1655, British
forces seized the island, and in 1670, Great Britain gained formal possession.
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