LESSONS TO BE LEARNT FROM THE JAMAINCAN AND GRENADIAN EXPERIENCES WITH SAPs
Efficient recommendations in addressing some of the macroeconomic issues in the Grenadian experience may not share a clear semblance of the economic prescriptions in Jamaica. Though faced with common BOP disequilibria, the countries differ in size, resource base and the cause of the crises.
Firstly, our attempt at recommendations does not in any way imply that all of the SAP requirements or internal policy failed. EC devaluation helped reduce inflation and improve foreign direct investment. Since the implementation of a series of initiatives by the government Medium Term economic Strategy, Grenada has been transformed from a once vibrant nutmeg and cocoa powerhouse to a large tertiary based economy. Some of these include Hotels, insurance services as well as education through its acclaimed St. Georges University medical fraternity. By 2001, the services sector accounted for over 70% of GDP as compared with 53.3% of GDP in 1990 (MTESP, 2000).
With respect to the Jamaican economy, the imposition of the food stamp in 1984 was established as an adjustment program for the benefit of the vulnerable groups in society. This policy aimed to enhance spending and private consumption of all levels of income earning citizens. It enabled the Jamaican population to afford basic goods at affordable prices. This increase in the ability to buy commodities by all citizens is recommended since it can be seen as a positive stance to the local farmers as there will be an overall increase in aggregate demand and not just consumption of imported stock.
Both Jamaica and Grenada has had inherent vulnerabilities, internally and globally. In these developing economies which are sensitive to developments in the global economy, the policies and conditions undertaken should be analysed thoroughly before lending for adjustment. The IMF must conduct an economic sensitivity analysis in an attempt to identify effectiveness of their austerity programs and its relationship with the high probability both endogenous and exogenous shocks. As we saw in Grenada, the abysmal Ivan experience in 2004 and the rapid rate of tropical depression along the trajectory of the chain of Caribbean islands must not be overlooked. In contrast, the IMF must take into account the change in political regimes in Jamaica as the nature of these regimes may affect the achievements of these requirements and the utilisation of these stand-by arrangements. The effects of weather for agriculture and their special social and political conditions in Jamaica can be categorized as a vulnerability to its local market. The initial purpose of the IMF was the serving of short term financing to states that was in debt from the war. When Jamaica gained independence in 1962, they were in every kind of financial problem because they did not have the economic strength to survive on their own.
In 1973, a convulsion was caused by the increase in world oil prices. Jamaica went to the private banking system to get money to pay overseas bills. However, long term development finances were prohibited and they only lent short term loans with stipulated rules and high interest rates. The IMF expected a devaluation of their JA currency, thus increasing the prices for the consumer. The consequence of this is that the Jamaican farmers began earning a loss because the consumers demanded the imported goods of higher quality at a cheaper price. The IMF and WB as well as the government instituted pressures on local farmers when these trade barriers were reduced and imports became freer. In our opinion, the Jamaican economy should consider their vulnerabilities and susceptibility before entering harsh conditions with these international aids since it can deter the wellbeing of their own local citizens.
According to Fischer (1997) two issues should be distinguished. The first is whether the programs supported by the IMF, if implemented, would stabilize the economy and promote economic growth. Our graphs illustrate that growth has fluctuated with a downward trend between the -4 % and 12% boundaries. There was no persistence. This suggests that the new tax measures namely the airport and motor vehicle levy did little to stimulate growth. It is our opinion that the deterioration of terms of trade and deterioration the nutmeg and cocoa industry should not discourage policymakers away from its primary production. Our findings show that there is great potential in the livestock market particularly in the production of high quality poultry eggs, beef, mutton and the “Jessamine Eden apiary” honey which has been said to be one of the best unpasteurized honeys in the world. It is our view that if the government embarks on a project to increase land space for animal rearing as well as greater incentives for farmers and apiaries that Grenada can again be competitive in the primary sector. There is also a need for Technology in cross breeding dissemination techniques. However, one of the most critical mechanisms which must be implemented in the revival of this sector is the encouragement of agricultural studies in the secondary schools.
The Essay on Economic Growth vs Economic Development
‘Economic growth is a necessary but not sufficient condition of economic development.'There is no single definition that encompasses all the aspects of economic development. The most comprehensive definition perhaps of economic development is the one given by Todaro:‘Development is not purely an economic phenomenon but rather a multi – dimensional process involving reorganization and re ...
This would help to eliminate the negative mindset against careers in agriculture production that have been inculcated by its culture, history and the globalisation phenomenon. We must emphasise that to see the goal materialised, will take time, some periods of failure and overall persistence and support on the part of the Grenadian Government. With regards to Jamaica, economic growth has been slow and our graphs depicted a modest growth, diving into a negative assessment during 1996-1998. This downward sloping trend during the overall years of Jamaica’s GDP shows us that some of the measures undertaken in their country were not very obliging in the promotion of economic growth. An influencing factor that adds to the limited success in SAPs is the fact that Jamaica is unable to absorb the abundance of flows from the foreign markets such as Europe and North America. Our view is that Jamaica needs to reconstruct locally and within its borders in order to enhance the standard of living of their residents. This is of utmost importance since appropriate measures can render upliftment in the local produce sales, increase in local employment, increase in the country’s GDP and the decrease of imports. A steady and dedicated measurement of this sort can lead Jamaica into being more self-sufficient and less dependable on foreign markets and institution
The Essay on Modeling Population Growth
Modeling Population Growth First of all, lets give definition to population growth. The term basically explains how the population changes with time (decreases or increases). It is controlled by the death and birth rates. According to the main ideas of modeling population growth, the rate at which a population changes depends on at least three factors (Modeling Population Growth: Main Ideas, ...
