|
|
|
|
|
|
|
|
|
|
  |
 |
  |
JAMAICA
>> Regional Overview >> Jamaica Overview
Development Challenge FY2001 Program /
Activity & Budget InformationSummary Tables
Program Summary
Previous Years' Activities
2000, 1999, 1998, 1997Tuesday, 05-Sep-2000 09:32:03 EDT
Introduction
The United States has a strong interest in Jamaica's economic and political well-being because of its geographic proximity, trade and investment relations, commitment to interdiction of illegal drugs destined for the United States, and shared concerns regarding regional security and environmental threats. U.S. development assistance in Jamaica contributes directly to U.S. strategic goals. Ensuring a stable Jamaican economy protects existing U.S. markets and investments in Jamaica and fosters opportunities for expanding the market for U.S. exports. Promoting economic growth and employment generation in Jamaica also provides Jamaicans with viable economic alternatives to becoming victims of or participants in drug trafficking and illegal emigration.
The Development Challenge
Jamaica's greatest development challenges include jump-starting a stagnant economy beset by fiscal and financial crises; protecting a fragile but economically critical natural resource base; and improving the prospects of an entire generation of Jamaican youth placed at risk by low levels of educational attainment, high teen pregnancy rates, crime and violence. Between the mid-1980s and 1990, Jamaica had one of the highest rates of economic growth in the Caribbean basin. However, over the past 10 years, Jamaica's growth rate has been lower than every other country in the region, except Haiti. The last year in which the Jamaican economy grew was 1994, and GDP has declined over the past three years. Declining commodity prices, collapse of the financial sector, low productivity and poor economic management have resulted in an unemployment rate of over 15%, continued deterioration of living conditions, and sporadic social unrest. To better respond to the economic crisis, USAID has sharpened its strategy to achieve broad-based economic growth. Key components of the strategy now include reducing regulatory constraints while fostering competition, improving business skills and promoting increased private sector financing to the small and micro business sectors. Socio-economic conditions in Kingston's inner city communities are particularly poor, with much higher rates of unemployment, crime, drug use and poverty. In FY 2000, USAID will initiate a new program to generate employment, improve security and enhance community capacity for conflict resolution. Without a solution to the problems that face youth, the potential of Jamaica's future is compromised. Jamaica's education system, characterized by poor attendance, perennial underachievement, low secondary school enrollment and a high percentage of untrained teachers, is failing thousands of young Jamaicans. Fifty-two percent of primary school graduates are functionally illiterate and innumerate. Approximately 10,000 10-14 year olds are not enrolled in school and an additional 4,000 10-18 year-olds drop out each year. Moreover, despite a decline in fertility rates for all other age groups, the rate among 14-24 year-olds has risen from 107 live births per 1,000 women in 1993 to 112 in 1997, and 15-24 year-olds have among the highest infection rates for HIV/AIDS. To address these profound challenges, USAID is supporting an integrated program to improve primary-level education, with a focus on schools in low-income communities, enhance the life skills of at-risk, out-of-school adolescents and expand access to youth-friendly adolescent reproductive health services throughout the nation. AmongTo date, 14,000 at-risk youth, i.e., adolescents who have dropped out or are at risk of dropping out, have received remedial education to improve reading and math proficiency and training in vocational skills. Jamaica's economic dependence on tourism, mining and traditional agriculture has generated widespread degradation of the country's natural resource base, threatening the very existence of these key industries. The concentration of population and economic activity in urban and coastal areas threatens natural habitats and natural resources of these critically important areas. In response to these threats, USAID efforts target increasing the capacity of the Government of Jamaica (GOJ) and local non-governmental organizations (NGOs) to manage and protect Jamaica's fragile terrestrial and marine resources. Activities include development and implementation of a national environmental policy framework and improvement of the country's wastewater management systems.
Exacerbating Jamaica's development challenge is a total public debt which, at $6.25 billion in FY 1998, exceeded the country's GDP of $5.775 million. Total debt servicing consumed 54.1% of the GOJ's annual budget in 1998, and public spending is expected in increase from 46% of the GDP in 1998 to an estimated 60% in 1999, primarily to service debt. Given the extent of Jamaica's development challenges and the benefit to the United States of ensuring the stability of our neighbors, USAID does not foresee program graduation in the near-term.
Other Donors
In FY 1998, USAID and the donor/lender community pledged over $150 million for development activities in Jamaica. The United Kingdom was the largest bilateral donor, followed by the United States, Japan, the Netherlands (GON), Germany, Canada and Italy. Multilateral donors/lenders include the World Bank (IBRD), European Union (EU), Caribbean Development Bank, Inter-American Development Bank (IDB), and United Nations agencies. Major activities supported by these donors/lenders include: the Social Investment Fund and public sector modernization (IBRD/EU); micro-enterprise development (GON, EU, IDB, IBRD, Canada); water supply/road infrastructure improvement (Japan); capacity building for environmental management and watershed and forestry management (Canada, IDB); support for parks and protected areas (EU); sewage and waste water treatment (EU, Japan, UNEP); primary and secondary school reform (IDB, IBRD); teacher education (Britain); and HIV/AIDS/STDs prevention (Germany, UNFPA, PAHO).
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
 |
|||
Last Updated on: December 21, 2000 |
