Of course the island of Jamaica didn’t always go by that name. It can be expected that prior to the arrival of Europeans that the indigenous population had their own name for it. When the Spanish arrived they gave it the name Santiago, a name it kept until the British took control in 1655. But what of Jamaica of today? Has it completely severed its European ties?
Full independence was not reached until 1962 but Jamaica is now self-ruled. Prior to 1958, Jamaica had been making inroads in its attempt to gain independence from Great Britain. In 1958 Jamaica became a province of the Federation of West Indies which is a sub-sect of the British West Indies. Full independence was achieved in 1962, when Jamaica left the Federation of the West Indies.
Jamaica’s first decade of independence was met with strong economic growth. Over this ten year period the economy grew by about six percent per year. The main players in propagating this growth was an investment in manufacturing, production of bauxite/alumina and tourism. Strangely, not much emphasis was placed on agriculture.
Unfortunately, it became apparent over time, that not everyone was enjoying an equal share in the benefits that the growth of industry provided to the country. The urban poor were feeling very marginalized in their inability to take part in Jamaica’s economic growth. A general slow-down in the World’s economy in 1970 has helped to exacerbate the growing division between the poor and the rich.
The growing disparity resulted in a change of guard in the 1972 election. The PNP (People’s National Party) was voted in, in an attempt to rectify the situation. Efforts were put forward to increase the standard of living for all in Jamaica. By 1980, Jamaica’s economy and GNP (gross national production) had fallen to 25%, far below its 1972 levels, even after attempts were made to improve the educational and medical systems.
In a very unfortunate move on Jamaica’s part, the country, as a result of rising local debt, foreign debt and large fiscal deficits, accepted loans from the IMF (International Monetary Fund) and the implementation of austerity measures. IMF member nations and the United States backed the loans. The loans came with a very hefty interest rate of twenty-five percent per year, which only worsened the situation in Jamaica.
Jamaica’s economic decline continued through the 1980s. Two large factors in the decline, were the closures of the first and third largest aluminum producers – Alpart and Alcoa. Alcan, the number two aluminum producer, also severely curtailed production, which added to an already dire situation. If this was not difficult as it was, after tourism began to wane, the Reynolds Jamaica Mines, Ltd. Left the Jamaican industrial sector.
Today, Jamaica’s economy includes tourism, mining, manufacturing, agriculture, financial and insurance services. Mining and tourism account for the majority of foreign exchange. It is estimated that over half of the Jamaican economy is service industry (tourist) based. There have also been reports that both the agricultural and industrial sectors are improving. Two of Jamaica’s largest exports are bauxite and aluminum. After the nations of Australia, China, Brazil and Guinea, Jamaica has became the world’s fifth largest producer of Bauxite.