June 21, 2018
Jamaica
Political and Economic Environment
rates. In 2009, there were almost 1,700 murders, giving
Jamaica, the most populous English-speaking Caribbean
Jamaica a murder rate of 60 per 100,000 inhabitants,
nation, has had a relatively stable parliamentary political
according to U.N. statistics. The murder rate fell in
system stemming from a history of British colonial rule.
subsequent years to a low of 35.1 in 2014 but has increased
Two political parties—the People’s National Party (PNP)
annually since then to a rate of 55.7 murders per 100,000 in
and the Jamaica Labour Party (JLP)—have dominated the
2017, with a total of 1,616 murders, according to InSight
political system since before the country’s 1962
Crime.
independence. Current Prime Minister Andrew Holness of
the JLP was elected in February 2016, when his party
Jamaica at a Glance
defeated the PNP, led by then-Prime Minister Portia
Population:
2.8 mil ion (2017 est., IMF)
Simpson Miller, who had led the government since 2011.
4,244, slightly smaller than
Figure 1. Jamaica Map
Area (square miles):
Connecticut
GDP (current prices): $14.4 bil ion (2017 est., IMF)
Real GDP Growth:
1.5% (2016), 1.0% (2017 est., IMF)
Per Capita Income:
$5,048 (2017 est., IMF)
U.S. Imports, $338 mil ion
U.S. Trade:
U.S. Exports, $2.1 bil ion (2017, DC)
Bicameral Parliament, with 63-
member elected House of
Legislature:
Representatives and 21-member
appointed Senate
Sources: International Monetary Fund (IMF); U.S. Department of

Source: CRS.
Commerce (DC), as presented by Global Trade Atlas.
Prime Minister Holness remains popular, but the JLP has
The Holness government designated two areas as zones of
only a slight majority in Jamaica’s House of
special operation in 2017, which gave the security forces
Representatives, where it holds 33 of 63 seats. The
increased powers intended to contain the rise in crime and
opposition PNP was weakened by a campaign finance
violence. The efforts, however, did not prevent a 20%
increase in the murder rate over 2016. To date in 2018,
corruption scandal in 2016; as a result, it suffered losses in
local elections held late that year. Simpson Miller stepped
Prime Minister Holness has declared a state of emergency
down as PNP leader in March 2017, and the party selected
in St. James Parish (which includes Montego Bay) on the
northwestern coast and portions of St. Catherine Parish in
Peter Phillips, who had served as Finance Minister and
Minister of National Security in previous PNP
the south, but the level of violence has decreased only
governments, as her replacement. The Holness government
slightly, according to Jamaican statistics. Since the inflow
of illegal firearms is a contributor to the high murder rate,
has focused on efforts to boost growth and deal with
increasing levels of violent crime. The country’s next
Prime Minister Holness has vowed to amend the country’s
parliamentary elections are due by February 2021.
firearms law to curb the possession of or dealing in illegal
firearms and ammunition.
High rates of crime and violence have plagued Jamaica for
many years. In the 1970s and 1980s, the country faced a
With a per capita income over $5,000, the World Bank
classifies Jamaica as an upper-middle-income country. The
high level of politically motivated violence as political
parties allied with armed gangs to deliver votes at election
economy is heavily dependent on services, especially
time. Jamaica’s gangs initially were involved in the
tourism (reaching a record 4.3 million tourist arrivals in
2017), but has averaged modest growth over the past two
trafficking of marijuana in the 1970s, but in the mid-1980s
they became involved in cocaine and weapons trafficking,
decades. According to the International Monetary Fund
with Jamaica used as a transit country. Since the 1990s,
(IMF), the economy grew 1.5% in 2016, an estimated 1% in
2017, and the 2018 forecast is for 1.5% growth. For a
much of the violent crime has been associated with drug
trafficking and related intra-gang and inter-gang feuds. The
number of years, a difficult challenge for the government
inflow of illegal firearms, including U.S.-origin firearms,
has been managing its large public debt burden, although
there has been some improvement over the past several
also has been a factor in violent crime. For a number of
years, Jamaica has had one of the world’s highest murder
years. Beginning in 2013, Jamaica received around $2
billion in support from the IMF, World Bank, and Inter-
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Jamaica
American Development Bank (IDB) for a four-year
Antidrug Efforts. Jamaica is the largest Caribbean supplier
economic reform program. In November 2016, the IMF
of marijuana to the United States and a significant transit
approved a three-year $1.7 billion standby arrangement that
point for cocaine trafficked to the United States and other
the Jamaican government can draw from to support its
markets, according to the State Department’s 2018
economic program; the World Bank and IDB also have
International Narcotics Control Strategy Report. Marijuana
continued funding for programs and projects in Jamaica.
also is trafficked to other Caribbean countries in exchange
for firearms and other contraband. Although the State
An April 2018 IMF staff review lauded Jamaica’s efforts
Department noted that U.S. assistance has helped Jamaica
over two administrations, noting that that public debt
increase cocaine seizures and improve its drug detection
burden is projected to be below 100% of GDP by early
and interdiction capabilities, it also pointed out that
2019 (down from more than 150% of GDP in 2012). The
Jamaica’s antidrug efforts face challenges from corruption,
IMF recommended that Jamaica reduce its public sector
organized crime, gang activity, resource constraints, and an
wage bill and redirect resources to growth-enhancing
inefficient criminal justice system.
projects, support efforts to build resilience in the
agricultural sector to weather events, and invest in school
Human Rights. The State Department’s 2017 human rights
attendance and youth training programs to improve
report cited arbitrary and other unlawful killings by
economic growth and social outcomes. The World Bank
government security forces as one of Jamaica’s significant
maintains that stronger and more resilient economic growth
human rights issues. Government corruption, violence
is needed to eliminate poverty (estimated at almost 16% in
against women and young girls, criminalization of same-sex
2015) and boost shared prosperity.
sexual activity, and societal violence against LGBTI
persons also were cited.
U.S.-Jamaica Relations
U.S. relations with Jamaica are close and are characterized
U.S. Foreign Aid. U.S. foreign assistance to Jamaica
by substantial economic and cultural linkages; foreign
amounted to $28.9 million in FY2016 and at least $39.8
assistance to support security, health, education, and
million in FY2017 (latest statistics available) for a variety
environmental projects; and cooperation on bilateral and
of projects to support disaster-risk reduction and energy
transnational issues. This has included Jamaican support for
efficiency, antidrug and anti-corruption efforts, citizen
strong action at the Organization of American States to
security, and efforts to combat HIV/AIDS (statistics are
contend with the crisis in Venezuela.
drawn from the U.S. Agency International for
Development’s Foreign Aid Explorer). Of this, the United
Economic Linkages. A majority of Jamaica’s tourists come
States provided $4.5 million in development assistance in
from the United States. In 2017, this included 1.5 million
FY2016 and $10 million in FY2017. The Trump
stopover visitors, accounting for 64% of total visitors,
Administration did not request any development assistance
according to the Jamaica Tourist Board. Jamaica also
for Jamaica for either FY2018 or FY2019.
received more than 1.9 million cruise ship passengers in
2017, with most ships departing from the United States.
Through the regional program known as the Caribbean
The large Jamaican American community in the United
Basin Security Initiative (CBSI), the United States has
States, concentrated in New York and Florida, accounted
provided support to reduce illicit trafficking and advance
for a majority of remittances from abroad in 2016 ($1.4
public safety and security. Assistance has included training,
billion of $2.2 billion). U.S. foreign direct investment in
equipment, and technical support to increase Jamaica’s
Jamaica on a historical-cost basis was estimated at $185
capabilities to interdict suspect sea vessels, investigate and
million in 2016, according to the Department of Commerce,
seize criminal assets, counter public corruption, combat
with more than 80 U.S. firms having offices in Jamaica.
organized crime, and enhance the efficiency of prosecutors
and criminal courts. Other CBSI assistance has supported
Because Jamaica has a services-based economy, it
community policing and youth workforce programs.
traditionally has had a large trade deficit in goods with the
United States. In 2017, the United States exported almost
For some 20 years, the United States has provided support
$2.1 billion in goods to Jamaica in 2017, a 27% increase
to Jamaica in the battle against HIV/AIDS. According to
over 2016, with oil exports accounting for about 28% of the
UNAIDS, Jamaica’s adult HIV prevalence rate is 1.7%
total; in the same year, the United States imported $338
(2016) compared to a rate of 1.3% for the Caribbean region.
million in goods, an 11% increase over 2016, led by bauxite
The country adopted a “treat all” policy in 2017, meaning
and aluminum ores and oxides. Jamaica has been a
that antiretroviral treatment is started for all individuals
beneficiary of the U.S. preferential trade program for
who test positive.
Caribbean imports known as the Caribbean Basin Initiative
since its inception in 1984, and Jamaica also is a designated
The U.S. Peace Corps has had a presence in Jamaica since
beneficiary of the Caribbean Basin Trade Partnership Act, a
1962. Currently, more than 50 Peace Corps volunteers in
program begun in 2000 that provides tariff preferences for
the country are working on educational and environmental
apparel imports. Despite these arrangements, Jamaican
projects.
exports to the United States have declined over time, in part
because of the decline of the country’s apparel and ethanol
Mark P. Sullivan, Specialist in Latin American Affairs
industries as well as fluctuations in bauxite prices.
IF10912
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Jamaica


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