Information Technology

Strengths and Weaknesses

One unique issue that affected the economic climate throughout 1996
and into 1997 is the viability of the financial sector, including the
failure of some Jamaican banks. The situation has required the
government to create a specific agency, the Financial Sector Adjustment
Company (FINSAC), to provide funding and reorganization assistance over
several years. It also induced the government to draft legislation,
currently under consideration, to tighten controls over the activities
of banks, insurance companies and other financial institutions.1

Jamaica's efforts to liberalize its economy and open its
markets have laid the foundation for growth. However,
given Jamaica's heavy debt burden, coupled with its import dependency,
special efforts to support foreign exchange earnings through an export
and investment orientation will be required to complete the process.
Broad participation of all segments of the society in a trade and
investment led growth strategy can be facilitated by emphasizing
employment creation. Despite positive policy reforms, the private sector
response has been mixed. Continued high interest and tax rates and
relatively high inflation (despite a gradual decline), excessive
government regulation, and low worker productivity are still inhibiting
business confidence and investment. 2

Previous Topic

Next Topic

Back to Jamaica homepage

Return to INITEB home