Jamaica: As A Whole
Jamaica operates under mixed free-market characterized by state enterprises and private sector businesses. It is a leading member of the Caribbean Community (CARICOM). Through the Caribbean Single market and Economy (CSME), it has promoted the economy integration of its member states. The recently signed treaty under the Economic Partnership Agreement (EPA) has boosted its attractiveness levels in terms of its strategic investment location. The treaty saw the country sign an agreement between the European Union and the Forum of the Caribbean Group of African, Caribbean and Pacific States (CARIFORUM). The agreement between all these agencies has seen Jamaica's potential accelerate its trade levels in several areas found between both of the mentioned regions (CIA World Factbook, 2017).
Jamaica’s economy is mainly based on tourism and agricultural activities though the current weather adversities have strained its growth and economy to just 1.8%. The service sector is highly dependent on tourism and contributes to about 80% of the country’s GDP. Natural catastrophes and violence have seen the tourism sector slow down because of the unstable conditions found in the political environment. The hit resulted in Jamaica going for loans, which raised their debt-servicing factor to 140% of GDP. Corruption is prevalent in Jamaica. It has made the presence of having a sound and strong infrastructure (Pitter, 2012). The most common crimes in the country are human trafficking and drug that results from having a weak order system. The law and order system in Jamaica has failed to enforce security measures of the individual’s lives and property.
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The environmental factors have seen Jamaica deal with deforestation issues and the island. This is related to its geographic location prone to drastic climatic changes and disasters like hurricanes and earthquakes. This has resulted in the loss of fertile agricultural lands and even people being killed in the process. The industrial waste in Jamaica is also high and is an environmental concern. Land erosion activities also contributes to the rampant pollution ( Klapper & Parker, 2010 ).
Therefore, under the macro-environmental, regional and country levels analysis, it is important for Jamaica to identify and assess all available opportunities, threats, and unique risks. The assessment enables them to evade problems coming from the external, economic and political environment. The country has a monarchy institution and parliamentary democracy that gives basis to the Westminster model that functions under a two-party system. Therefore, the people responsible for the legislature are the prime minister and her/his cabinet. The British monarch has been maintained by Jamaica as its chief of state. The risks mentioned are from the country's external, economic and political environment majorly influenced the stability of its foreign exchange.
The Jamaican Stock Exchange (JSE) was incorporated in August 1968 where it became a private limited liability company. In February of 1969, the country commenced its trading and the relative stability has seen it rise in terms of development. JSE has managed to conduct various researches and has provided vital information about and to the market. Through this development, the country has dematerialized its share certificates and the adoption of generally accepted standards favorable for international markets has seen it gain global attractiveness ( Klapper & Parker, 2010 ).
It has vast agricultural opportunities available especially the import substitution
The culture, sports, and music of Jamaica is attractive
Its geographic location
The culture of indiscipline and lawlessness plus crime is high
Poverty is on the rise due to high economic dependence of the country
The human rights system is poor
The governance at school and having low literacy is a concern
Availability of renewable energy solutions
Rationalization of the public sector
Greater growth opportunities are present due to its poor structure and import dependency
The rise in oil and other commodity prices
The revenue has a fiscal appetite
The global recovery from things like higher interest rates and inflation among others
The focus given to other more investor-friendly economies that are emerging is a big threat
CIA World Factbook. (January 2017, 12). Jamaica Economy Profile 2014. Retrieved from www.cia.gov/library/publications/the-world-factbook/geos/jm.html
Klapper, L., & Parker, S. (2010). Gender and the business environment for new firm creation. World Bank Research Observer , 26 , 2, 237-257.
Pitter, M. (2012). Just a glimpse of the political situation in Kingston. Retrieved from inparenthesesmag.com/2012/09/11/a-glimpse-of-the-political-situation-in-kingston-jamaica-by-m-pitter/