Jamaica rising

During this most socio-economically vulnerable time, the country also confronted well armed criminal forces linked to the regional US$38B narcotic trade in the capital city of Kingston, during the USA extradition request process of an alleged drug trafficker.

Known for its iconic legend Bob Marley and uplifting reggae music, phenomenal athletes, stunning physical beauty hence a tourist magnet, with a domiciled population of 2.8 million and a USA Diaspora of over 3 million people, Jamaica with a stable democratic system of Government for the past 48 years, needed all its assets to achieve survive in the midst of a “perfect storm”.

Achieving Stability

At his election in 2007, as Jamaica’s eighth Prime Minister, Bruce Golding had cited tackling crime and developing the economy the center piece of his administration. As such, the May 2010 unrest in Kingston sparked by the extradition request was an inflection point in the fight against the international drug trade. The Jamaican government subsequently moved decisively to address this longstanding problem. A year later the country has recorded an unprecedented 44 percent decline in crime.

With will and courage, the Golding led government embarked upon a strategy of ‘stabilization’ with its bedrock in fiscal management and debt control. The core elements of this strategy are: eliminating the fiscal debt, reducing government borrowing, reducing the cost of servicing debt, reforming the tax structure, transforming government bureaucracy, creating a framework of transparency and accountability and enabling Jamaica to be more globally competitive in areas that will attract investment, create jobs and facilitate sustainable development.

Key to the Golding strategy in action was implementing the Jamaica Debt Exchange program which achieved amazing success with an unprecedented 99.2 percent participation rate by Jamaicans who swapped their holding of high interest government papers for lower interest government instruments. 

The action resulted in the government reducing interest rate on domestic debt from an average of 24 percent to an average of 12 percent and has been defined as the one of most successful debt swaps in history. The government also reengaged with multilateral partners at the IMF, IADB and the WB, who were vital in supporting and facilitating strategy execution with respect to debt control, fiscal management and transformation of government bureaucracy.

Already, the country is reemerging from the recession with GDP growth projecting at 2 percent for the current financial year and a record double digit growth in the tourism and agriculture industry. The bauxite plants are reopening and international remittances have rebounded.

These strategies have resulted in a macroeconomic environment characterized by the lowest interest rates in 30 years, low inflation rates, a stable exchange rate and high net international reserves, all at the same time; an achievement reached for the first time in over 40 years.

Catalyst for Growth

After many years of deliberation Jamaica has become the third country in the Caribbean to introduce casino gaming to target the half a billion, and growing, customer market from Latin America and the East Cost of the USA. The Government has also passed legislation to introduce Credit Bureau Services to unleash credit facilities for potential entrepreneurs.

With a continued fixity of purpose Jamaica is determined to pursue sustainable development. The redevelopment of the capital city, Kingston, is integral to this end and includes infrastructure development opportunities such as alternative and renewable energy, development of Kingston’s aerotropolis and cruise piers, transshipment port and multi-modal transportation systems.

Now at the start my second year in Washington and in the wake of Prime Minister Golding’s recent visit to Washington D.C., we have a renewed focus to build on 49 years of solid diplomatic relations with the United States, and are enthusiastic about spreading the good news that Jamaica is open for business!

Audrey Marks is Ambassador of Jamaica to the United States of America and a Permanent Representative of Jamaica to the Organization of American States (OAS).