Jamaica Country Brief – January 2008
Overview
Australia and Jamaica enjoy warm and friendly relations, based on our shared membership of the Commonwealth and common historical, cultural and social links. Sport, particularly cricket, forms an important tie between our countries, and Jamaican sporting achievements in athletics at both the Olympic and Commonwealth level has led to some cooperation with Australian sports institutes.
Jamaica is a senior member of the Caribbean Community (CARICOM) and was among the first countries to join the Caribbean Single Market (CSM). Along with Barbados, Belize, Guyana, Suriname and Trinidad and Tobago, Jamaica formally joined CSM on 1 January 2006. Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia and St Vincent and Grenadines ratified the agreement in July 2006. The CSM is intended to enhance regional integration and export opportunities, and attract foreign investment by creating a single market among the participating member states. The main objectives of the CSM are to promote the full use of labour (full employment) and to maximise production and exploitation of the region’s natural resources and capital. Members hope the CSM will improve competitive production, and stimulate production of a greater range and quantity of products and services, to maximise trade with other countries. These objectives are intended to promote sustained economic development and improve standards of living and work.
Jamaica has also ratified the Caribbean Court of Justice (CCJ) in its original jurisdiction (ie as a disputes mechanism for the CSM) but has yet to pass legislation recognising the CCJ in its appellate jurisdiction. As such, the UK Privy Council remains the country’s court of last resort.
Political Overview
Background
Jamaica is a parliamentary democracy based on the British model. Spanish forces occupied Jamaica around 1510, following Christopher Columbus’ arrival in 1494. In the second half of the 17th century, British forces seized the island, and a large number of slaves were transported from the west coast of Africa to work the island’s profitable sugar plantations, until the British forced emancipation of indentured and enslaved workers in 1838. In 1944 Jamaica held its first full election and, in 1962, the country gained independence from Britain. Jamaica is a member of the Commonwealth and Queen Elizabeth II is the Head of State, represented by the Governor-General.
Jamaica’s political system is based on two political parties, the People’s National Party (PNP) and the Jamaica Labour Party (JLP). Both evolved in the late 1930s and 40s against a background of economic depression, rapid population increases, widespread industrial action and demands for independence from British colonial rule. Each party has historical links with one of the two major trade unions: Alexander Bustamante launched the JLP (backed by the Bustamante Industrial Union, BITU), and Norman Manley organised the PNP (supported by the National Workers’ Union, NWU). The close association of these unions and parties continues to influence and shape the political system. The PNP has been in power since 1989 and has won the last four elections.
A third party, the National Democratic Movement (NDM), broke away from the JLP in 1996 and attempted to challenge the dominance of the two traditional parties. It did not win any seats in the last two elections.
Violence marred some Jamaican elections in the 1990s, but was largely contained during the 2002 elections by a heavy police and military presence. Economic issues continue to dominate Jamaican politics, as the Government grapples with high unemployment, low per capita income, high income-disparity, and a large foreign debt. Jamaica’s economy suffered from a decline in the US tourist market following the September 11 terrorist attacks. In addition, with the slowdown in the US economy, fewer Jamaicans have been able to find employment in the US, which has markedly reduced the funds repatriated to relatives living in Jamaica.
Political Outlook
In March 2006 Jamaican Minister for Sports, Portia Simpson-Miller, also of the People’s National Party, succeeded P.J. Patterson as Prime Minister, making her the first female Prime Minister in Jamaican history. Ms Simpson-Miller beat three opponents to take over from former Prime Minister P.J. Patterson as head of the ruling People's National Party. Under Jamaica's parliamentary democracy, the head of the ruling party becomes Prime Minister.
Prime Minister Simpson-Miller has made the tasks of fighting rampant crime and advancing human rights key amongst her Government’s priorities. Though it enjoys strong popular appeal, the PLP’s standing has suffered as a result of a recent campaign finance scandal. In October 2006, the Leader of the Opposition, Bruce Golding (JLP), attempted to pass a no-confidence motion against Ms Simpson-Miller, alleging that the PNP Government may have exchanged government contracts for cash. The motion was unsuccessful, failing by 33 to 23 votes; however the political climate has remained fragile and has dampened Prime Minister Simpson-Miller’s hopes of calling an early general election. General elections took place in September 2007 and Jamaica’s Opposition party (JLP) led by Mr Bruce Golding won the election by a clear majority 33-27.
Jamaica is a senior member of the main Caribbean political grouping (CARICOM), and is active in promoting greater regional integration throughout the Caribbean through its membership of the Caribbean Single Market (CSM).
Political System
The 1962 Constitution established a parliamentary system based on the English model, with Queen Elizabeth II as the Head of State. The Queen appoints a Governor-General as her representative on the advice of the Prime Minister.
Parliament consists of an elected House of Representatives containing 60 members, and an appointed Senate. Executive power is vested in the Cabinet, of which between two and four members must be drawn from the Senate. General elections must be held within five years after the formation of a new government, but may be held sooner. Senators are appointed by the Governor-General on the advice of the Prime Minister and the Leader of the Opposition.
Economic Overview
Economic and Trade Policy Directions
Jamaica has a small and open economy that is dominated by tourism and the production of bauxite, sugar and manufactured goods for export. Tourism, along with other services sectors, has grown considerably, following a decline in manufacturing over the past decade. Accounting for around 60 per cent of economic activity, tourism is now the backbone of Jamaica’s economy. Mining, the other major contributor to Jamaica’s GDP, is based around the country’s large commercial deposits of mineral resources such as limestone, bauxite, gypsum, marble, silica sand and clays. Jamaica competes with Australia in alumina/bauxite production, although production costs in Jamaica are currently higher than in Australia.
Jamaica’s economic growth has remained slow in recent years, with GDP growth at 1.4 per cent in 2005, 2.8 per cent in 2006 and 1.4 per cent in 2007. Whilst the Government has maintained a growth target of 3.6 per cent, unfavorable economic conditions, such as the downturn in the US economy and the continued negative balance of trade, have hindered short term efforts to boost growth.
High crime rates are also hindering economic growth. Jamaica has one of the world’s highest murder rates, unemployment is high, and social problems such as drugs, street violence and an alarming crime rate, have all dampened attempts to rejuvenate the tourist sector.
The Government is continuing its policy of dismantling government controls, accelerating privatisation and facilitating a market-driven economy. Reducing Jamaica’s foreign debt is another key policy priority and the Government’s fiscal austerity and efforts to restructure debt payment have begun to prove effective.
Jamaica’s main trading partners are the US and the European Union, as well as trade within CARICOM.
Bilateral Relations
Australia and Jamaica cooperate in various international fora including the United Nations, the International Monetary Fund and the World Bank. Jamaica is also a member of the Inter-American Development Bank, and the Caribbean Development Bank, and it plays an active role in CARICOM.
Jamaica was one of 17 Caribbean countries and territories that participated in the March 2006 Commonwealth Games in Melbourne. Jamaica was one of the Caribbean host countries for the 2007 Cricket World Cup.
Australia’s High Commissioner to Trinidad and Tobago, resident in Port of Spain, is accredited to Jamaica.
Bilateral Economic and Trade Relationship
Trade between Australia and Jamaica is modest yet growing steadily, with the balance heavily in Australia's favour. In 2006-07, two-way merchandise trade between Australia and Jamaica amounted to around A$27.4 million. Australian exports to Jamaica in 2007 totaled around A$31.7 million (increasing from A$5 million in 1995) and mainly consisted of meat, taps and valves, and toys, games and sporting goods. Australian imports from Jamaica during this period amounted to around A$1.4 million and were mainly alcoholic beverages. Australian investment in Jamaica is minimal, although Australian consultants are working with Jamaica’s Government agencies to create business opportunities leveraging off the 2007 Cricket World Cup.
For the latest economic data, please refer to the Jamaica fact sheet.
Export Opportunities
Possible opportunities for Australian exporters exist in a number of areas:
Agriculture:
Local agricultural markets tend to be heavily protected, but the tourism industry provides a steady market for imports. Particular areas of opportunity for Australia include meat, wine and cheese.
Telecommunications:
While telecommunications services are currently provided by a monopoly, Jamaica is a signatory to the WTO Basic Telecommunications Services Agreement and plans to implement an open telecommunications market over the next decade.
Mining:
Jamaica competes with Australia as a producer of bauxite and alumina. To remain competitive in this market, however, it needs to reduce its costs, and may present a market for expertise, technology and equipment.
Sugar:
Jamaica is a major Caribbean sugar producer and Jamaican rums are highly regarded. There are a number of Australian experts working in Jamaica’s sugar industry. Australian technology contributes towards making Jamaican sugar producers among the most efficient in the region. This creates prospects for greater cooperation.
Education:
There is a demand for education, particularly tertiary education, outside Jamaica which is largely filled by the US and Canada. Australian institutions are in a strong position to compete in this market.
Medicinal and pharmaceutical products:
The Jamaican market for these products is filled largely from imports, around one third of which currently come from the US.
Computers/ computer accessories:
The Jamaican computer market is totally reliant on imports, over half of which come from the United States.