History of Jamaica has proved that in the past, certain policies suggested by the World Bank or the International Monetary Fund (IMF), have kindled agitation and led to the implementation of monetary as well as fiscal policies, which were very blurring. There was a time when the loan availed by Jamaica could not be paid back.
This led to a credit crunch. As a result, the basic necessities of the people were not being fulfilled. During the 1990s, the country halted its IMF funded structural adjustment program. Instead the money market served as a source of finance. It was an attempt made to bring about economic reforms in Jamaica to some extent.
At one point of time, external debt of Jamaica became stagnant but what troubled the most was the debt at home, which seemed to increase with every passing day. Even though the country is regarded as wealthy (2004), the society is still not stable owing to the deceitful fiscal policies practiced by the government.
The percentage of growth recorded in the years 2001, 2002, 2003 was in one digit. Jamaica in an effort to improve economic reform in Jamaica has been able to finance for itself by means of funds borrowed from different agencies in the market.
Due to this the country has been able to construct modes of transportation, schools, roads and other amenities for the people of Jamaica. Hence, the progress that is being made by the country is depleting the nation of its capital.
Banking sector in Jamaica:
The banks have fixed the interest rates very high. As a measure adopted for economic reform in Jamaica, US$ bonds were issued by the the Ministry of Finance as well as the Bank of Jamaica. These bonds were made available to the people at very high bond rates. By issuing bonds to the people(especially the rich people), the government gets money. With this money the various activities of the government are funded. It is believed that in this manner, a severe crisis is averted each time.
Other problems being faced by the government in Jamaica is that the country is also imbibing the concept of globalization. Globalization is being aimed at during a period when the country is reeling under debts and is exhausting its capital to make ends meet. In an effort to bring in stability into the country, the government is not being able to provide equal opportunities for all.
Unless the Jamaican government repairs damages things may take a turn on the contrary. Hence, the government is required to introduce economic reform in Jamaica, which would not only help in minimizing debts but also work towards the improvement of the living standards of the people in the country.
It is felt by the government as well as the people of Jamaica that the economic reform in Jamaica should also tap the natural resources of the country. The economic reform in Jamaica should act as a catalyst in the infrastructural growth of the country on a long term basis, which would be sustainable.
Last Updated on : 26th June 2013