Program

Economic Growth

OverviewProgram DescriptionActivities

Program Description

Jamaican Context

Jamaica’s economy has performed poorly and sustained economic growth has remained elusive during the last ten years. The economy continues to be adversely affected by a number of negative macroeconomic and fiscal factors including a deteriorating trade balance, high national debt and interest rates, as well as by social factors such as crime, violence, and corruption. Jamaica’s external competitiveness is also weak, as high costs and low productivity are major obstacles to meeting international standards of competitiveness. Other factors contributing to diminishing competitiveness are the high cost of finance, a poorly educated workforce, management weakness and outmoded processes and technologies. To achieve real economic growth, Jamaica must increase its ability to compete effectively in liberalized global markets, particularly in an era of rapid technological change.

USAID’s Assistance

USAID’s assistance will emphasize competitiveness with a view toward Jamaica’s successful participation in the global economy and improving Jamaica’s various trade regimes. USAID expects to achieve these results by focusing on external trade, competitiveness, macroeconomic and fiscal policy reforms, and further development of competitive clusters.

Expected outcomes of USAID assistance include:

• Competitive Clusters Developed
  Assistance will be aimed at enterprise and industry-level competitiveness in three targeted clusters: tourism, agriculture/agribusiness, and entertainment. Activities will address broad areas of competitive weakness and will include training, technical assistance and institutional strengthening. Assistance might be expanded to include other industry clusters, such as shipping and telecommunications.
• Business Environment Improved
  USAID will tackle problem areas that inhibit competitiveness at the country-level. Driven by needs expressed by the Government of Jamaica and the private sector, macroeconomic stability will be a new focus for USAID. Activities will include: identifying and amending legislation, regulations and policies that constrain business and impede investment and overall economic growth; supporting economic opportunity in underserved inner city communities; and supporting a national social partnership between government, the private sector and labor unions.

Developed competitive clusters and improved business environment—both anticipated outcomes of USAID’s economic assistance—will facilitate increased economic growth across all levels of society and will help Jamaica improve its ability to compete effectively in liberalized global markets.