Jubilee Scotland

  • Home
  • About us
    • Our story
    • Our Vision & Values
    • The Jubilee Scotland Team
    • Board Members
    • Annual reports
  • The Issue
    • The History of Debt in The Global South
    • Campaigning for cancellation
    • Guide to debt jargon
    • Country case studies
  • Campaigns
    • Rethinking Private Financing in Scotland
    • Scotland Against Climate Debt
    • Banks: Drop the Debt
    • Campaign successes
  • Get involved
    • Take Action
    • Donate
      • Donate as Individual
      • Organisations
    • Join the team
      • Jobs
      • Internship
      • Board of Directors
    • Become a member
  • Articles & Blogs
  • Contact
You are here: Home / The Issue / Country case studies / Jamaica

Jamaica

Jamaica map Jamaica location
Jamaica Factfile

View more country profiles in Caribbean.

Jamaica has debts totaling almost $18 billion, equivalent to an astounding 124% of GDP. The situation is so severe that annually Jamaica spends more than twice as much on foreign debt repayments as it does on health and education combined. Despite undergoing almost four decades of austerity in an attempt to tackle the issue, Jamaica does not qualify for any debt relief. It is deemed an ‘upper middle-income’ country, seemingly too rich to require such cancellation schemes.

Spread the word...Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone

Further information

Where Did The Debt Come From?

Jamaica attempted in the 1960s and 70s to instigate a new economic order not based upon neoliberal principles. However, the 1973 oil price shock rapidly pushed up the price of imports and created a recession in the country. To combat this, the Jamaican government needed to borrow to purchase vital goods from abroad, but the interest rates on these loans soon rocketed up. As a consequence, every single year since 1984, foreign debt repayments have remained above 20% of government revenue.

Role Of International Institutions

Whilst bilateral debt is relatively small for Jamaica, multilateral debt is rising rapidly. Since the 1980s, the various international financial institutions have been lending large amounts of structural adjustment bailout loans to the country. These loans have come with multiple conditionalities of financial liberalisation. Most recently, Jamaica has agreed a four year $932 million loan arrangement with the IMF (2013-2016). Despite this, and decades of previous IMF-coordinated austerity, growth has remained remarkably stagnant in Jamaica. There has been a vicious circle in which debt servicing and IMF conditionalities limit the ability of the government to fund the critical infrastructure and social programmes required to drive growth, and reduce debt distress.

Costs To The Jamaican People

Jamaica is currently at the mercy of the international financial institutions, and the impact on its population has been catastrophic. The first round of IMF bailouts in the 1980s instigated the eventual reduction in the number of registered nurses by 60%. Such cuts in social services across the board have meant that Jamaica is failing to meet several of the Millennium Development Goals. More recent IMF packages have also required a pay freeze in the public sector amounting to a 20% real-term cut in wages for a country struggling to reduce poverty rates. On top of everything else Jamaica also faces a serious organised crime problem. The government now faces the almost impossible prospect of having to achieve fiscal discipline to maintain debt payments whilst simultaneously attacking a crime problem that is hampering economic growth.

Potential For Change

Many analysts see Jamaica’s debt as unsustainable, and requiring action before it is too late. However, despite all the difficulties the debt has caused for the Jamaican population, it is ineligible for debt relief under the HIPC and MDRI schemes. One potential alternative now being discussed is the creation of a regional Caribbean-led debt relief initiative. Due to a similar assortment of factors, many Caribbean nations are in severe debt crisis and looking to act before it is too late. At the current stage, however, it remains to be seen as to who will take the lead in pushing for this important reform.

Spread the word...Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone
Spread the word...Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone

The Issue

  • The History of Debt in The Global South
  • Campaigning for cancellation
  • Guide to debt jargon
  • Country case studies

Sign up for our e-news updates

News

What does debt have to do with climate?

In this time of climate emergency and urgent calls to investment for climate adaptation and mitigation, a question that must not be overlooked is that of debt. Indeed, Jubilee Scotland is worried to see the current debt levels in low-income countries increasing. Many low- and middle-income countries are struggling with slow economic growth and high […]

Tweets by jubileescotland

Get in touch

Jubilee Scotland is an independent coalition of organisations and local groups across Scotland who campaign for cancellation of the unjust and unpayable debts which are ruining the world’s poorest countries.

JUBILEE SCOTLAND
41 GEORGE IV BRIDGE
EDINBURGH
SCOTLAND
EH1 1EL

T: 0131 225 4321
E: mail@jubileescotland.org.uk

Take action here!

  • Accessibility
  • Sitemap
  • Privacy and Cookies

Scottish Charity Number: SC031827 Company Number: SC220549

Copyright © 2022 Jubilee Scotland · Site built by graphics.coop · Powered by WordPress