Jamaicas International Debt Crisis - 1805 Words

Jamaica’s economy has always been subject to forces beyond its control. Even after the country gained its independence in 1962 it has remained clear that Jamaica’s economic policies have been heavily coerced by western powers. This was the situation in of which, Michael Manley and the Peoples National Party (PNP) attempted to undo. However, despite a brief flirtation with social-democratic reform in the mid-1970s, Jamaica’s international debt proved to be too heavy a burden for Manley and the PNP to manage. This resulted in neoliberal backlash in 1980 led by Edward Seaga and the Jamaican Labour Party, who quickly realized that their neoliberal policies actually exacerbated the problem. Therefore the guiding determinant of Jamaican economic policy-making post-1970 seemed to be the need to manage the public debt within the existing socio-economic system, in a manner that is responsive to the needs of the public. The solution to the problem lies in a series of polic y reforms designed to increase the productive capacity of the region, the empowerment of the youth through education, and the unification of the people through the notion of collective struggle. Therefore, the future of Jamaica lies in systemically instilling nationalist sentiment in its people in hopes of coercing both economic and societal change. Chronologically speaking, to get to the solution of any problem we must start at the beginning; what caused Jamaica to fall into such a huge debt crisis in the firstShow MoreRelatedEconomic Analysis of Jamaica1663 Words   |  7 Pagestechnology telecommunications, manufacturing and the entertainment sector. Jamaica’s economy is presently very dependent on services, according to the CIA world fact book report of 2010, with it accounting for more than sixty (60%) of GDP. The country is also highly indebted and has a debt to GDP ratio of over 120%, indicating that based on Jamaica’s GDP it is extremely difficult for the country to pay off its increasing debt. Adding to this is the IMF loan agreement which Jamaica signed in 2010, withRead MoreAn Analysis of the International Monetary Fund in Jamaica795 Words   |  4 Pages|An Analysis of the International Monetary Fund in Jamaica | | | | | | | | Read MoreA Marxists Standpoint, International Economic Institutions1753 Words   |  8 Pages From a Marxist’s standpoint, international economic Institutions have no advantages whatsoever. Chimni argues that the growing international institutions constitute an imperial global state in the making (Chimni, 2004). Chimni explains that creating a global state fulfills the interests of a transnational capitalist class within the international realm at the expense of the social classes in the developing and underdeveloped countries (Chimni, 2004). Chimni criticizes the institutions’ calls forRead MoreThe Implementation Of Structural Adjustment Programs1169 Words   |  5 Pagesmeasures roused the ire of many in Quà ©bec, the concept is far from novel in Jamaica. Entering into its fourth decade of austerity policy, the island’s expenditures on debt repayments are double that of health and education combined. In respon se to the mounting global debt crisis of the late 1970s, the World Bank and International Monetary Fund (IMF) set forth a series of prescriptions for developing countries in the form of Structural Adjustment Programs (SAPs) upon which the receipt of foreignRead MoreJamaicss Economic Downfall1444 Words   |  6 PagesInitial Conditions Jamaica approached the International Monetary Fund in 1979 as a result of its chronic balance of payment issues. This problem was triggered chiefly by the oil crises of the mid-seventies and the bauxite industry’s declining revenues. As a result, producers cut production in response to a Government imposed ban on bauxite as a form of retaliation. The government then began borrowing at a rapid pace from the Central Bank and overseas institutions in an attempt to facilitateRead MoreEssay on The J-Curve Phenomenon in Jamaica: Fact or Fiction?950 Words   |  4 Pagesappears to overlook the long run consequences of a large accumulation of external liabilities. On the other hand, Gordon (2001) stated that an overvalued exchange rate led to the Jamaican productive sector having a disadvantage and also a negative international reserve. There was liberalization for trade and foreign exchange rate systems. In the year 1996/97 the government emphasized a tight monetary policy to reduce inflation as well as maintain a stable nominal exchange rate. This policy implementedRead MoreAnalysis Of The Documentary Life And Debt 984 Words   |  4 PagesINTST: Reaction Paper Life and Debt Troy Wefers October 1, 2015 In the documentary Life and Debt, it is explained through the stories of local people, the economic and social crisis of Jamaica. With Jamaica receiving mandatory loans from the International Monetary Fund (IMF) in 1977 because of lack of alternatives, Jamaica was promised meaningful development. Unfortunately, this only made the situation worse because of the extreme policies and foreign economic agendas that came withRead More A Struggling Economy: Jamaica and U.S. Relations Essay4504 Words   |  19 Pagesinfluence on the Caribbean has been perpetuated by four American interests: 1) the encouragement of trade, 2) the protection of U.S. investments, 3)the formation of alliances to prevent intervention and 4) the promotion of regional support for U.S. international goals (Bayer, 39). In alignment with Bayer’s statement, many historians, politicians and economists alike have traced the history of the United States in the Postcolonial Caribbean and have shown how U.S. affairs through trade and policy have differedRead MoreEssay about Global Poverty1599 Words   |  7 Pagesunderprivileged, etc (Hope International, 1). But what causes this startling fact? How is it that as the years progress, so does the rate of poverty worldwide? Some argue that poverty is a choice, and others argue that it is involuntary. However, literature argues that poverty is a state that is brought onto an individual or group of people by another individual or group of people. Through Bahamian and Caribbean Literature, the scarcity of basic needs, third world debts, and barriers to opportunitiesRead MoreGlobalization- a Boon or a Curse for Developing Countries?3218 Words   |  13 Pagesbooks. So, when they devalued their currency, their imports were more expensive but nevertheless, they still had to import as Jamaica being a very small country, cannot provide for them. The foreign debt was 4 billion US dollars by end of 1980s, now it’s more than 7 billion US dollars. Jam aica’s debt is rising and in the mean time, their capacity to produce and export is getting lower and lower. Jamaica is a country dependent on agricultural sector and farming but with the devaluation of money and