Publication: Jamaica - Country Economic Memorandum : Unlocking Growth
Date
2011-05-26
ISSN
Published
2011-05-26
Author(s)
World Bank
Abstract
The objective of this report is to
identify the main obstacles to longer term growth in
Jamaica. The report takes a holistic approach, examining a
large set of economic and social factors that may be
hindering growth and filtering them through a growth
diagnostic analysis to narrow the focus to those that
constrain growth the most. Building on the results of the
growth diagnostic analysis, the report then discusses each
key obstacle and identifies possible reform scenarios to
unlock growth in Jamaica. The report also examines how the
country might further accelerate growth through private
sector development. This Country Economic Memorandum
assesses the key causes that have stalled Jamaica's
economy over the past four decades and presents
recommendations to unlock its growth potential. There is a
basis for optimism in that Jamaica has had political
stability, high rates of private investment, significant
reduction of poverty in rural and urban areas, and improved
income distribution. Nonetheless, this report shows that,
since independence in 1962, long-term economic growth has
been disappointing and underperformed most other countries.
The findings of this study indicate that Jamaica's
disappointing economic performance is traceable to low
productivity caused by (i) deficiencies in human capital and
entrepreneurship that are due to high migration rates and to
deficiencies in the quality of education and training
offered to the labor force, among other factors, (ii) a high
rate of crime, and (iii) distortionary tax incentives
combined with 'enclave' development that does not
spill over to the rest of the economy.
Citation
“World Bank. 2011. Jamaica - Country Economic Memorandum : Unlocking Growth. © World Bank. http://openknowledge.worldbank.org/handle/10986/2756 License: CC BY 3.0 IGO.”