About the CBI

October 2005
Background Note: Jamaica

The Jamaica flag is a diagonal yellow cross that divides the flag into four
triangles - green (top and bottom) and black (hoist side and outer side).

PROFILE

OFFICIAL NAME:
Jamaica

Geography
Area: 10,991 sq. km. (4,244 sq. mi.).
Cities: Capital--Kingston metro area (pop. 628,000). Other cities--Montego
Bay (96,600), Spanish Town (122,700).
Terrain: Mountainous, coastal plains.
Climate: Tropical.

People
Nationality: Noun and adjective--Jamaican(s).
Population (2000): 2.65 million.
Annual growth rate (2000): 0.6%.
Ethnic groups: African 90.9%, East Indian 1.3%, Chinese 0.2%, White 0.2%,
mixed 7.3%, other 0.1%.
Religious affiliation: Anglican, Baptist and other Protestant, Roman
Catholic, Rastafarian, Jewish.
Languages: English, Patois.
Education: Years compulsory--to age 14. Literacy (age 15 and over)--79.9%.
Health (2000): Infant mortality rate--24.5/1,000. Life expectancy--female 75
yrs., male 70 yrs.
Work force (2000, 1.1 million): Industry--17.8%; agriculture--21.4%; services
--60.8%.

Government
Type: Constitutional parliamentary democracy.
Independence: August 6, 1962.
Constitution: August 6, 1962.
Branches: Executive--Governor General (chief of state, representing British
monarch), prime minister, cabinet. Legislative--bicameral Parliament (21
appointed senators, 60 elected representatives). Judicial--Court of Appeal
and courts of original jurisdiction.
Subdivisions: 14 parishes, 60 electoral constituencies.
Political parties: People's National Party (PNP), Jamaica Labour Party (JLP),
National Democratic Movement (NDM), United Peoples Party (UPP).
Suffrage: Universal at 18.

Economy
GDP (2002): $7.335 billion.
Real growth rate (2002): 1.0%.
Per capita GDP (2001): $2,771.
Natural resources: Bauxite, gypsum, limestone.
Agriculture: Products--sugar, bananas, coffee, citrus fruits, allspice.
Industry: Types--tourism, bauxite and alumina, garment assembly, processed
foods, sugar, rum, cement, metal, chemical products.
Trade (2002): Exports--$1.14 billion: alumina, bauxite, sugar, bananas,
garments, citrus fruits and products, rum, coffee. Major markets (2000 data)
--U.S. 39.1%, U.K. 11.2%, Canada 10.2%, Netherlands 22.0%, Norway 9.1%,
CARICOM 3.7%, Japan 2.3%. Imports (2000)--$3.191 billion: machinery,
transportation and electrical equipment, food, fuels, fertilizer. Major
suppliers (2000)--U.S. 44.8%, Trinidad and Tobago 10.0%, Japan 6.0%, U.K.
3.1%, Canada 3.1%, Mexico 4.8%, Venezuela 3.9%.

PEOPLE AND HISTORY
Arawaks from South America had settled in Jamaica prior to Christopher
Columbus' first arrival at the island in 1494. During Spain's occupation of
the island, starting in 1510, the Arawaks were exterminated by disease,
slavery, and war. Spain brought the first African slaves to Jamaica in 1517.
In 1655, British forces seized the island, and in 1670, Great Britain gained
formal possession.

Sugar made Jamaica one of the most valuable possessions in the world for more
than 150 years. The British Parliament abolished slavery as of August 1,
1834. After a long period of direct British colonial rule, Jamaica gained a
degree of local political control in the late 1930s, and held its first
election under full universal adult suffrage in 1944. Jamaica joined nine
other U.K. territories in the West Indies Federation in 1958 but withdrew
after Jamaican voters rejected membership in 1961. Jamaica gained
independence in 1962, remaining a member of the Commonwealth.

Historically, Jamaican emigration has been heavy. Since the United Kingdom
restricted emigration in 1967, the major flow has been to the United States
and Canada. About 20,000 Jamaicans emigrate to the United States each year;
another 200,000 visit annually. New York, Miami, Chicago, and Hartford are
among the U.S. cities with a significant Jamaican population. Remittances
from the expatriate communities in the United States, United Kingdom, and
Canada, estimated at up to $800 million per year, make increasingly
significant contributions to Jamaica's economy.

GOVERNMENT
The 1962 constitution established a parliamentary system based on the U.K.
model. As chief of state, Queen Elizabeth II appoints a governor general, on
the advice of the prime minister, as her representative in Jamaica. The
governor general's role is largely ceremonial. Executive power is vested in
the cabinet, led by the prime minister.

Parliament is composed of an appointed Senate and an elected House of
Representatives. Thirteen Senators are nominated on the advice of the prime
minister and eight on the advice of the leader of the opposition. General
elections must be held within 5 years of the forming of a new government. The
prime minister may ask the governor general to call elections sooner,
however. The Senate may submit bills, and it also reviews legislation
submitted by the House. It may not delay budget bills for more than 1 month
or other bills for more than 7 months. The prime minister and the cabinet are
selected from the Parliament. No fewer than two nor more than four members of
the cabinet must be selected from the Senate.

The judiciary also is modeled on the U.K. system. The Court of Appeals is the
highest appellate court in Jamaica. Under certain circumstances, cases may be
appealed to the Privy Council of the United Kingdom. Jamaica's parishes have
elected councils that exercise limited powers of local government.

Principal Government Officials
Governor General--Sir Howard Cooke
Prime Minister and Minister of Defense--Percival J. "P.J." Patterson
Minister of Foreign Affairs and Foreign Trade--Keith D. "K.D." Knight
Ambassador to the United States and the Organization of American States (OAS)
--Gordon Shirley
Ambassador to the United Nations--Stafford Neil

Jamaica maintains an embassy in the United States at 1520 New Hampshire
Avenue NW, Washington, DC 20036 (tel. 202-452-0660). It also has consulates
in New York at 767 3rd Avenue, New York, NY 10017 (tel. 212-935-9000); and in
Miami in the Ingraham Building, Suite 842, 25 SE 2nd Avenue, Miami, FL 33131
(tel. 305-374-8431/2).

POLITICAL CONDITIONS
Jamaica's political system is stable. However, the country's serious economic
problems have exacerbated social problems and have become the subject of
political debate. High unemployment--averaging 15.5%--rampant
underemployment, growing debt, and high interest rates are the most serious
economic problems. Violent crime is a serious problem, particularly in
Kingston. The two major political parties have historical links with two
large trade unions--the Jamaica Labour Party (JLP) with the Bustamante
Industrial Trade Union (BITU) and the People's National Party (PNP) with the
National Workers Union (NWU). The center-right National Democratic Movement
(NDM) was established in 1995 and the populist United Peoples Party (UPP) in
2001; neither has links with any particular trade union and both are marginal
movements.

For health reasons, Michael Manley stepped down as Prime Minister in March
1992 and was replaced by P.J. Patterson. Patterson subsequently led the PNP
to victory in general elections in 1993, 1997, and in October of 2002. The
2002 victory marked the first time any Jamaican political party has won four
consecutive general elections since the introduction of universal suffrage to
Jamaica in 1944. The current composition of the lower house of Jamaica's
Parliament is 34 PNP and 26 JLP.

Since the 1993 elections, the Jamaican Government, political parties, and
Electoral Advisory Committee have worked to enact electoral reform. In the
2002 general elections, grassroots Jamaican efforts from groups like CAFFE
(Citizens Action for Free and Fair Elections), supplemented by international
observers and organizations such as The Carter Center, helped reduce the
violence that has tended to mar Jamaican elections. Former President Carter
also observed the 2002 elections and declared them free and fair.

ECONOMY
Jamaica has natural resources, primarily bauxite, adequate water supplies,
and climate conducive to agriculture and tourism. The discovery of bauxite in
the 1940s and the subsequent establishment of the bauxite-alumina industry
shifted Jamaica's economy from sugar and bananas. By the 1970s, Jamaica had
emerged as a world leader in export of these minerals as foreign investment
increased.

The country faces some serious problems but has the potential for growth and
modernization. After 4 years of negative economic growth, Jamaica's GDP grew
by 0.8% in 2000. Inflation fell from 25% in 1995 to 6.1% in 2000 and 7.0% in
2001. Through periodic intervention in the market, the central bank prevented
any abrupt drop in the exchange rate. The Jamaican dollar continued to slip
despite intervention, resulting in an average exchange rate of J$47.4 to the
U.S.$1.00 by December 2001.

Weakness in the financial sector, speculation, and low levels of investment
erode confidence in the productive sector. The government raised $3.6 billion
in new sovereign debt in local and international financial markets in 2001.
This was used to meet its U.S. dollar debt obligations, to mop up liquidity
to maintain the exchange rate, and to help fund the current budget deficit.
Net internal reserves rose from $969.5 million at the beginning of 2001 to
$1.8 billion at the end of the year.

Jamaican Government economic policies encourage foreign investment in areas
that earn or save foreign exchange, generate employment, and use local raw
materials. The government provides a wide range of incentives to investors,
including remittance facilities to assist them in repatriating funds to the
country of origin; tax holidays which defer taxes for a period of years; and
duty-free access for machinery and raw materials imported for approved
enterprises. Free trade zones have stimulated investment in garment assembly,
light manufacturing, and data entry by foreign firms. However, over the last
5 years, the garment industry has suffered from reduced export earnings,
continued factory closures, and rising unemployment. This can be attributed
to intense international and regional competition, exacerbated by the high
costs of operations in Jamaica, including security costs to deter drug
activity. The Government of Jamaica hopes to encourage economic activity
through a combination of privatization, financial sector restructuring,
falling interest rates, and by boosting tourism and related productive
activities.

FOREIGN RELATIONS
Jamaica has diplomatic relations with most nations and is a member of the
United Nations and the Organization of American States. It was an active
participant in the April 2001 Quebec Summit of the Americas. Jamaica is an
active member of the British Commonwealth, the Non-Aligned Movement, the
G-15, and the G-77. Jamaica is a beneficiary of the Cotonou Conventions,
through which the European Union (EU) grants trade preferences to selected
states in Asia, the Caribbean, and the Pacific.

Historically, Jamaica has had close ties with the U.K., but trade, financial,
and cultural relations with the United States are now predominant. Jamaica is
linked with the other countries of the English-speaking Caribbean through the
Caribbean Community (CARICOM), and more broadly through the Association of
Caribbean States (ACS). In December 2001, Jamaica completed its 2-year term
on the United Nations Security Council.

U.S.-JAMAICAN RELATIONS
The United States maintains close and productive relations with the
Government of Jamaica. Prime Minister Patterson has visited Washington, DC,
several times since assuming office in 1992. In April 2001, Prime Minister
Patterson and other Caribbean leaders met with President Bush during the
Summit of the Americas in Quebec, Canada, at which a "Third Border
Initiative" was launched to deepen U.S. cooperation with Caribbean nations
and enhance economic development and integration of the Caribbean nations.
The United States is Jamaica's most important trading partner: bilateral
trade in goods in 2000 was almost $2 billion. Jamaica is a popular
destination for American tourists; more than 800,000 Americans visited in
2000. In addition, some 10,000 American citizens, including many
dual-nationals born on the island, permanently reside in Jamaica.

The Government of Jamaica also seeks to attract U.S. investment and supports
efforts to create a Free Trade Area of the Americans (FTAA). More than 80
U.S. firms have operations in Jamaica, and total U.S. investment is estimated
at more than $1 billion. An office of the U.S. and Foreign Commercial
Service, located in the embassy, actively assists American businesses seeking
trade opportunities in Jamaica. The country is a beneficiary of the Caribbean
Basin Trade Partner Act (CBTPA). The American Chamber of Commerce, which also
is available to assist U.S. business in Jamaica, has offices in Kingston.

U.S. Agency for International Development (USAID) assistance to Jamaica since
its independence in 1962 has contributed to reducing the population growth
rate, the attainment of higher standards in a number of critical health
indicators, and the diversification and expansion of Jamaica's export base.
USAID's primary objective is promoting sustainable economic growth. Other key
objectives are improved environmental quality and natural resource
protection, strengthening democratic institutions and respect for the rule of
law, as well as family planning. In fiscal year 2002, the USAID mission in
Jamaica operated a program totaling more than $13 million in development
assistance.

The Peace Corps has been in Jamaica continuously since 1962. Since then, more
than 3,300 volunteers have served in the country. Today, the Peace Corps
works in the following projects: Youth-at-Risk, which includes adolescent
reproductive health, HIV/AIDS education, and the needs of marginalized males;
water sanitation, which includes rural waste water solutions and municipal
waste water treatment; and environmental education, which helps address low
levels of awareness and strengthens environmental nongovernmental
organizations. The Peace Corps in Jamaica fields about 70 volunteers who work
in every parish on the island, including some inner-city communities in
Kingston.

Jamaica is a major transit point for South American cocaine en route to the
United States. It is also the largest Caribbean producer and exporter of
marijuana. A significant increase in cocaine flow through Jamaica was
observed during 2001. Jamaica is the embarkation point for the largest number
of passengers arrested on drug charges at U.S. airports. U.S. assistance has
played a vital role in stemming the flow of drugs to the United States. In
fiscal year 2001, the Jamaican Government seized over 1,700 kilograms of
cocaine. Several large seizures in late 2001 contributed to a doubling of
interdicted cocaine during calendar year 2001 over 2000. The Jamaican
Government eradicated 436 hectares of marijuana in 2001, nearly 800 hectares
short of its 1,200 hectare goal. Authorities also seized and destroyed 72.6
metric tons of marijuana in 2001, a sizable increase over 2000. Over 7,450
drug arrests were made in 2001, including 415 foreigners. A bilateral
maritime interdiction cooperation agreement is facilitating U.S. Coast Guard
and Jamaican military coordination.

Principal U.S. Officials
Ambassador--Brenda La Grange Johnson
Chargé d'Affaires--Thomas "Cliff" Tighe
Economic/Political Section Chief--Mark J. Powell
USAID Mission Director--Karen Turner
Defense Attache--Cdr. Martin Hundley, USN
Chief, Military Liaison Office--Lt. Col. Vincent Moynihan
Consul General--Ronald Robinson
Public Affairs Officer--Glenn Guimond
Peace Corps Director--Suchet Loois

The U.S. Embassy in Jamaica is at 2 Oxford Road, Jamaica Mutual Life Center,
Kingston (tel. 876-929-4850 or 876-935-6000). The Consular section is at 16
Oxford Road, Kingston (tel. 876-929-4850 or 876-935-6000). The USAID Mission
is at 2 Haining Road, Kingston (tel. 876-926-3645). The Peace Corps is at 1A
Holborn Road, Kingston (tel. 876-929-0495). Log onto the Internet at http://
usembassy.state.gov/kingston for more information about Jamaica, the U.S.
Embassy and its activities, and current contact information.

Other Contact Information
U.S. Department of Commerce
International Trade Administration
Trade Information Center
14th and Constitution Avenue, NW
Washington, DC 20230
Tel: 800-USA-TRADE or 800-872-8723
Web site: http://www.ita.doc.gov/tic

American Chamber of Commerce of Jamaica
The Hilton Hotel
77 Knutsford Boulevard
Kingston 5, Jamaica
Tel: (876) 929-7866/67
Fax: (876) 929-8597
E-mail: amcham@cwjamaica.com

Caribbean/Latin American Action
1818 N Street, NW
Suite 500
Washington, DC 20036
Tel: (202) 466-7464
Fax: (202) 822-0075
E-mail: info@claa.org
Web site: http://www.claa.org