Q: I’m doing a project and need to know why Jamaica is an LEDC, if you could help out, that would be great. thanks.
A: For starters, the Jamaican economy is still mainly dependent on its natural endowments such as beaches and bauxite as opposed to manufactured exports. Growth in the amount of goods exported annually has remained stagnant for the past 20 year.
There is practically little or no move from dependence on raw materials to exporting manufacturing and internationally traded services.
Government policies continue to ignore important resources such as investing in the people, education, and the private sector…in a global economy which demands this.
The result is the lack of the competitive advantage necessary for high productivity.
Too much red tape and bureacracy…political involvement in investment which simply results in corruption and inefficiency.
The educational system is grossly underfunded and mis-aligned with the productivity requirements of the global market.
Crime is a huge burden on the economy. The tax system provides zero incentive for production. Energy is very expensive and interest rate very high.
There are very few Jobs available and practically very few opportunities for the highly skilled and educated to expand and grow…so they take their brain power elsewhere.
Thousands of highly educated and skilled Jamaicans living abroad are eagerly awaiting the opportunity to come home and contribute to the country’s growth and global development, but the opportunity is non-existent.
There is a tremendous amount of potential for Jamaica to catapult its way onto the global scene as a significant economic force, but because of its many in-efficiencies it is a mere blip on the radar screen of investors around the world.
For them, it is too high-risk plus there are too much red-tapes, palm greasing, and ginalship in the society.
The end result is that this beautiful and talented island in the Caribbean finds itself languishing on the list of LEDC…waiting for the right governmental policies to come to its rescue.