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Jamaica
>> Regional Overview >> Jamaica Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 34
THE DEVELOPMENT CHALLENGE: During the last decade, the Jamaican economy has been adversely affected by persistently poor performance, registering an average annual growth rate of only 0.2%. The Economic and Social Survey of Jamaica (2000) shows that in 1999 the GDP growth rate was -0.4%. This has had a cumulative effect on major productive sectors of the economy, resulting in a decline in government revenues and, therefore, a shortage of funds to meet the growing needs of essential social services, such as education and health. An additional burden was placed on the fiscal budget by the Government of Jamaica's (GOJ) heavy debt portfolio, which amounted to $3.9 billion or 115.1% of GDP in 1999. Unemployment levels remained high at 15.5% in 2000, with 18.7% of the population living below the poverty line.
In early September 2001, the economy showed signs of possibly attaining a 2% growth rate by the end of 2001. However, the prolonged effects of the global recession, followed by the terrorist attacks in the United States on September 11, and a major flood in the north-eastern part of the island in November threatened to reverse the positive trends. Flood relief and reconstruction efforts are estimated to reach over $22 million. Tourism traditionally contributes a very significant one-sixth of GDP, but is projected to decline precipitously (by up to 18%) in the wake the attacks. The agricultural sector has been negatively impacted by both the floods and the attacks.
There were approximately 200,000 youths age 15-24 who were neither in school nor employed in 2001. Economic growth has been stifled not only by the GOJ's high interest rate policy, but by significant impediments to trade and investment. There is also a growing need to safeguard the country's natural resources in the interior highlands, watersheds, and coastal shoreline, particularly given Jamaica's dependence on tourism. Jamaica's social indicators are disturbing. Poverty has given rise to increased school absenteeism, and deteriorating literacy and numeracy rates, furthering the cycle of unemployment and increased crime. Pressure is intensifying on the nation's ill-equipped security force and heavily backlogged judicial system. The number of AIDS cases has risen, indicating the need to quickly contain the rate of infection, especially among high-risk groups. Given Jamaica's history of violence during pre-election campaigning, an increase in the number of murders is anticipated as Jamaica moves toward general elections, which will be held before March 2003.
U.S. national interests in Jamaica focus on strong trade and investment ties, cooperation in regional and international fora, reduction in the production and export of illegal drugs, and enhanced security of U.S. citizens.
THE USAID PROGRAM:
FY 2002 Estimate: $13.292 FY 2003 Request: $15.980 million FY 2002 funds will be used to provide technical assistance and training in natural resource management, reproductive health and related efforts to combat the spread of HIV/AIDS, education, microenterprise, democracy, and inner-city development. FY 2003 funds will be utilized to expand in similar areas, with particular emphasis on environmental policy reform, reducing constraints to business, broader reach of health and HIV/AIDS awareness programs, and greater community involvement in education and reducing violence. The Program Data Sheets provided below cover six objectives for which USAID is requesting funds. These six objectives seek to (1) address deficiencies in the small, medium, and micro-enterprise business sectors; (2) encourage sustainable management practices in Jamaica's key natural resources; (3) improve reproductive health of youth; (4) improve the numeracy and literacy skills of youth; (5) promote good governance as a way of improving citizen security; and (6) bring about a reduction in unemployment and crime in two inner-city communities. The specific on-going programs to be funded by the FY 2003 request are described in more detail in the following Program Data Sheets.
ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED: Not applicable.
OTHER PROGRAM ELEMENTS: In addition to the bilateral program, USAID is carrying out regional and centrally-funded activities in Jamaica. Disaster mitigation activities promote sustainable development by reducing risk and mitigating damage of natural disasters, and by establishing an effective framework for disaster management in the region. In the areas of trade and economic growth, USAID activities work to enhance the capacity of the Jamaican trade ministry to analyze, negotiate, and implement regional and worldwide trade agreements and related agricultural import standards and regulations. USAID is also supporting agricultural research initiatives to improve farming technologies as well as the expansion of the Jamaica Rural Agricultural Development Authority, which will enhance the sustainability of Jamaica's remarkable natural resource base. Additionally, USAID supports the efforts of the Jamaican Exporters Association to raise the quality, and reduce pest infestation, of Jamaican tropical crops. In the democracy sector, USAID's regional program is working to increase the effectiveness of the court system through judicial training.
USAID also has an active Denton Amendment program in Jamaica, which facilitates the arrival of approximately 30 to 40 humanitarian freight shipments per year from non-governmental organizations (NGOs) in the United States. These shipments are transported on U.S. military flights to Jamaica and USAID provides programmatic and logistical support to our U.S. NGO partners. Additionally, USAID supports U.S. NGO Food for the Poor's participation in the U.S. Government's excess property program. With USAID approval and assistance, Food for the Poor coordinates the shipment and distribution of humanitarian commodities to Jamaica and other countries in the region.
OTHER DONORS: Major multilateral donors to Jamaica include the Inter-American Development Bank (IDB), the largest contributor, which provides funds for direct budgetary support, agricultural services support, poverty alleviation, security and justice, primary education, parish infrastructure development, and other social infrastructure projects. The World Bank supports education, poverty eradication, public sector and financial reform, export development and financial sector reform. The European Union (EU) mainly supports poverty alleviation and infrastructure development. The Caribbean Development Bank (CDB) focuses on development finance to support fiscal reform, poverty alleviation, institutional strengthening, tourism, infrastructure development, and agricultural development. Major bilateral donors include the United Kingdom, through the Department for International Development (DFID), which provides funds for education, poverty reduction and good governance, along with a debt relief facility. The Canadian International Development Agency (CIDA) contributes funds in the areas of economic competitiveness, environmental management, governance, poverty alleviation, and early childhood education. The Government of Japan also supports infrastructure and cultural projects.
Program Data Sheets
- 532-002 Improved Quality of Key Natural Resources in Selected Areas that are both Environmentally and Economically Significant
- 532-003 Improved reproductive health of youth
- 532-004 Increased Literacy and Numeracy among Targeted Jamaican Youth
- 532-006 Improve Business Environment for Developing the Small, Medium, and Micro Enterprise Sectors
- 532-007 Improved economic and social conditions in targeted inner city communities
- 532-008 Improved Citizen Security and Participation in Democratic Processes
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
