RETURN TO I EPORTS DESKI RESTRICTED WITHM Report No. EA- 144a ONE WEE Public Disclosure Authorized This reoort was orepared for use within the Bank and its affiliated oraanizations- They do not accept responsibility for its accuracy or completeness. The report may not be oublished nor may it be quoted as renresentina their viewsI
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized
CURRENT ECONOMIC POSITION
AND PROSPECTS
OFTP TAMKAATr.A Public Disclosure Authorized
October 9, 1963 Public Disclosure Authorized
Department of Operations Europe CURRENCY EQUIVALENTS
1 Jamaican Pound = 1 Pound Sterling E = U. S. $2. 80 L 1 Million = U. S. $2. 80 Million U. s. $1 = 6 0.5357 T.R. $1 Millon = - 357, 000 Ri)ljr Ur'LUJf~L.
Basic Data
Summary and Conclusions
I. INTRODUCTION ...... *
III POLITICAL SITUATION ...... 2
III STRUCTURE AND GROWTH OF THE ECONOMY ...... 0 3
Recent Economic Trends .* . . . 0 3 ...... 0 3
Principal Economic Sectors: . . . . . a. , 5 1. Agriculture ...... e , e e . . 2. Manufacturing ...... a .. .. *o 9 3. Mining ...... 10 4. Commerce . * * . . * . . a . . . * * . . 11 6. Construction ...... * . . 12 6o Tourism I * * * o *e * a * *9 * a 1? 7 . Transportation ...... 13
Employment, Income and Productivity ...... 14
IV. FOREIGN TRADE AND BALANCE OF PAYM4ENTS ...... l5
V. FINANCIAL AND FISCAL POSITION: ...... 17
Money and Banking ------.----- 17 Other Financial Institutions ...... 18 Government Finances------. . . .-. 19
VT ECONOTC PROSPECTS AND CRFDTOrTHTNESS------21
Statistical Tnbl s P!S;ýTC MIVI'',
Population (December 1962): 1,663,00 (Rate of Nlatural Increase 3.2% iRate of increase overv prvio s yea'r, nect off emigration i.%)
Gross Fational Product Per Head (1961): U.S. $400 (atf ac+uo r cos t n l.L11I 7 -- l. f T) ~i-' -in1 l PLLic Dieuu (LeceMuer _3.L 27uC ) External: 118.0 million (U.S. $50.4 million) Total- Tn6 . m.iio r 3, ml lo'n
OU -L r .L-L- - Oý u.- , ~-4) -L . _ý 1-L~ - .n ' - 1 9 56 1957 19-58 195ý9 196O 1961 1962 (l millionT- Gross Domestic Product: (at factor cost) 159 192 199 212 231 2hh 253 of which, in percentages: Whålesale & Retail 16 17 17 17 17 16 15 Manufacturing 13 13 13 13 13 13 13 Agriculture 16 1h ih 13 12 13 13 Construction 13 l4 12 12 11 11 11 ining 6 9 9 3 9 9 9 Real GD( (at,195ý-prices) 159 182 14 195 207 212 Gross Fixed Investment (G'GDP) 25 27 24 22 22 21 18
Honey Suuply (December 31): .. 27 28 31 32 23 32
2alance of Pavments: Current Receipts .. 70 72 80 100 107 Current Pay-ments .. 82 82 96 111 11 . Current Account Balance .. -12 -10 -16 -11 -L -6 Inflow of long-term private capital .. 9 h 4 1 h
9anking Reserves (March 31) 12 1h 9 8 5 5 h
1958/59 1959/60 1960/l 1961/62 1962/63 Govern-ment Finnce s: Expenditures - Current 28.4 26.4 28.2 31.6 35.7 Expenditures - Capital 1.h 11.0 11.9 11.2 12.2 Expenditures - Total 32.8 37.h O.1 h2.8 47.9 Revenues - Total 28.6 31. 3.8 37.1 ,8 Balance ~.2 -6.0 -5.3 9.7 71 Financed. by: C.D. & W. Grants 0.7 1.3 0.3 0.1 0.4 Net borrowing 10.2 2.6 h.9 2.9 8.7 Chan-e in Reserves +6.7 -2.1 -0.1 -2.7 +2.0 Current surnus .2 .0 6.6 5.5 5. 1 As % of capital expenditure 5 45 55 b9 h2
T/TDeucting Sinking Fnds1 at face value. -L SUTMIARY AND CONCLUSIONS I
1. In 1962 Jamaica became an independent member of the British Commonwealth, and elected a new government; the West Indies Federation was dissolved. These events have been followed by a period of adjustment.
2. Growth in real terms averaged 7% in the years 1953-1960, mainly resultinc from the establishment and ranid exnansion of the hnuxite and alumina industries, the boom in construction, and the development of manufacturing. The tourit industry bcname an imnort.ant source of forpirn earnings. By 1961, these sectors were no longer expanding rapidly and the rate of gro-th fell to 2 5%5 n oee esi 19 629-.
'Th.l Governme,nt is prese.nt-'Qr fnae urith+1-he+ needA to~ sti4.U--A further economic growth. The 191 million five-year development plan nearly twice the average realized in recent years. Sources of finance are assumed to be general. revenue con-tributi.on and interna1 Loans 3 01 loans from overseas markets 28%, government-to-government "soft" loans and aidU 3. The- W1AmoU of. aid"hpedUU!foeig for isO proAbLCULY OVU. 11 optimistic. The Government's budgetary position is sound with surpluses on current account, but in the l.ast two fiscal years increases intur expenditures have reduced the current surpluses and the portion of capital expenuitures that could be financed from this source. Tuere iu ~uume cope for greater use of domestic resources, but the larger capital expenditures required for economic expansion, together with the trend to increa5ed current expenditures lead to a greater dependence on external borrowing. Political events in the Caribbean, added to independence itself, nave made it difficult to make public issues abroad. There is accordingly a greater dependence on other governmental and international agencies.
4. Total public external debt is blo.0 million. Debt charges repre- sented 2.7% of merchandise exports in 1962, and would rise to 4% if no further external borrowing were undertaken. The outlook for Jamaica's exports is quite good. Bauxite and alumina earnings, now more than double earnings from sugar, the traditional export product, should increase steadily. Sugar prices should remain buoyant until there are prospects of present shortages being overcome. While a repetition of the spec- tacular improvement in Jamaica's GDP of the 1950's is unlikely, there are prospects of steady economic growth. In these circumstances, a prudent borrowing program would be justified. T T.IqTMDAOTTTrPTrnT
10 Jmaia, i an ara ofL ",41 D4-1UCI- 1+1 11 ~ island in the Caribbean Sea. Cuba lies some 90 miles to the north and graphical regions - the Eastern Mountains, the Central and Western Plateau andBasins, and thle Coastal E±J±U.11. lilt; Ld~iCu71. 171VULIUML110,VI-L.1 LQ - over 6,000 feet, are so complex that only one main road crosses them. The k,entral ana western Plateau consisbs O. .LImbLM LULYe Lu.UUVtz;Inl UU LV- thirds of the island. The plateau surfaces are often irregular, due to erosion; some areas are desolate and almost uninhaidu, ut there e% also wide, fertile basins within the plateaux. Bauxite is found in the white limestone areas in the center of the island, estmatUd at 600 mU.LUlin tons and the largest workable deposits in the world. The Coast Plains, which vary in width from a few yards to several miles, contain some o tne richest soils in Jamaica, but are also the driest areas and irrigation is often necessary to obtain the maximum benefits from the land. About 4270 of total land area is unproductive, due largely to the mountainous nature of the terrain. In addition, unskilled farming over the years has laid waste much land. One of the most difficult problems in the development of the country is Dosed by the small farmer on steeply sloping land where often only trees grow well. 30% of the total land area which is unused is potentially productive for forestry and 12% for agriculture.
2. Jamaica lies within the tropics and the climate is therefore hot with the temperature often exceeding 9OF, especially from June to September. The reduction of temperature with increasing altitude allows a diversity of crops to be grown in the Island. Temperate fruits and vegetables such as peaches and potatoes may be grown in upland areas, while tropical crops (main-y sugar) flourish in the low-lands. There are wide variations in the amounts of rainfall, with great contrasts occurring within short distances. The mountains, especially their slopes facing north and east, receive most rain with rainfalls of 75-1C0 inches, while the average annual rainfall in the plains is under 50 inches. Prolonged droughts or heavy rains can occur anywhere at any time of the year. Rivers are too short and steep for naviga- tion and have limited value for hydro-electricity.
3. Total population is 1,663,000 including some 380,000 persons living in the Kingston Metropolitan area. There has been a considerable change in the composition of the population since 1943. The age group 14-4 has decreased from 475 to 4O5, mainly due to the large emigration of adults; the age aroup 0-9 increased from 25% to 30%. reflecting an increase in th.e birth rate but also a significant reduction in the infant mortality rate. About three-auarters of the poulation is of African ori2in. one-sixth of mixed racial origins, and the balance of East Indian, European, and Chinese origin. h. Per canita income is about U.S. h00. but the differences in income within the labor force itself are substantial. In the rural areas, where the marinritr f thp nt-nnlp. livp- t.hprp iq mucih sibsistence living on small plots of land or limited cash incomes. In both urban and rural areas there are subostantial unemployment.and nlm butint no grvtrnmrnt1 social welfare system. The sense of family obligation is real and assistance -2- but in 1943 one-third of the children of school age know members of the labor force ages 24-34) did not attend school. Primary education has now become more widespread but still more than l6 of children aged 5-14 do not attend school. About 7% of the population aged 10 years and over have attended secondary school.
II. POLITICAL SITUATION
5. Jamaica became an independent member of the British Commonwealth on August 6, 1962. In keeping with the British Parliamentary system effective political power rests with the elected house, the House of R-presentatives, which has 45 members. The Senate or Upper House consists of 21 members of whom 13 are nominated by the Governor-General on the recommendation of the Prime Minister, and eight on the advice of the Leader of the Opposition.
6. The April 1962 elections were won by the Jaraica Labour Party (JLP) led by Sir Alexander Bustamante. The new Government won 26 seats and the People's National Party (PNP) led by Mr. Norman Manley, the former Premier whose party had been in power since 1955, gained 19 seats. Jamaica has a tradition of a strong two-party political system. Both parties receive the support of a labour movement, the JLP from the Bustamante Industrial Trade Union and the PNP from the National Workers Union, and also the support of business grouos. The fact that the two parties have widespread popular support means that election results may be determined by a swing in a small number of votes. In the April 1962 elections the difference in the votes cast for the two parties was only 8,000, the JLP and the PNP receiving L9.6/ and 48.2% respectivelv of the votes polled. Thus. each party is circumscribed in its possible policy actions by its diverse support, and the l nn of the nonnlAr vnte mny mann that nnv lmvprnment will he particularly sensitive about the effects of its policies on public opinion.
7. A principal difference between the two parties is that while both narties recive rural n nh n spor, +ha .TT.P +.and Inh. intifin with the rural voters and the PNP with urban voters. Political platforms diffpr hv derbr rnthr than any PYtrPmn b ut the TTP i. nonsidered n reflecting the conservatism of rural interests. The new Government has indicnted that a mnior nnlicv nim rill he .hp imnravPmP_nt nf living standard in the rural areas.
8. The political situation in Jamaica is now stabilizing after a number
ofmaorevnt -the referendm on the Fdrto inSepteme- 16,-h election and independence in April and August 1962. Certain social dis- turlebanceS1Ti' ocure i.~ rellation, too~t1he refe r.ii ~ - the elction han.- not been repeated. The Rastafarian Movement, semi-religious in nature and ur ir etrn+,r +^r A-P-..; a, 1- t, r+~~+n n a ny '4n.v, support.nnP- Ir, People's Political Party (PPP), which urged racist policies, failed to win
a.£L~.LZ ~d l 11 Uihe e-ecL .L4kJ LIM,- JU-.AI11 ±LkC;% LJ.Y V11U~ UU~VU~ 1iLLU UL. 11r_ its five-year term are principally economic - agricultural development and unesijp meng dow oZthe e .c. re1Uducedir _.Loy lurpuse LO elp fUi the slowing down of the economy, reduced revenue surpluses to help finance puLi"c capital expenditures, anddifclesnobaigexralln -3- fuxds. On the other hand, failure to ease economic problems could have serious social and political consequences.
II. STRUCTURE AND GROTH OF T,E ECONUIY
9. The main developments in Jamaica's economy during the last decade have been the establishment of the bauxite andalumina industries, so that Jamaica is now the world's largest supplier of bauxite and exporter of alumina; the expansion of tourism aid light industries; and the evolution of financial institutions. Sugar and bananas, the traditional staple pro- ducts, remain important earners of foreign currency. In 1962, the value of sugar exports was less than bauxite but more than alumina exports. Despite the growth of the economy the problem of unemployment remains serious. In 1960 unemployment was 82,000 or 13% of the labor force of 648,000. Emifration, considerably eased the unemployment situation and is estimated to have relieved the labor force of 60,000 workers. Data do not indicate the amount of under-employment in the economy which is known to be large.
Recent Economic Trends
10. In 1961 the economy levelled off after a period of substantial growth. This slowing doim in economic growth continued in 1962 and unemployment rose to an estimated 17% of the labor force. In 1954-1997 the gross domestic product at constant factor cost increased at 10-1%; per annum. After a check in economic expansion during 1958 GDP expanded 6% in real terms each year in 199 and 1960. The rate of growth :in 1961 was 2.5. Data for 1962 are expected to show only a small increase in real GDP: gross fixed canital formation declined further being estimated at L3.1 million below the 1961 level (see Table 8).
11. Growth in the 1950's was caused by (a) large investments and ex- pnrnion of nrn.iintion in alumina nnrl hnirzit. (h) the boomino nnditions in the construction industry resulting from the building of hotels, middle nnd lower income houses. commercial buildings and snecial orolects such as the two airports and the national stadium, and (c) investments and in- creased producition in Tniifnr-tirjng_ the changed relationships between the sectors in the years 1953-1962 are financial services increased steadily during the period, those of trans-
t,+-;-- -A clV r%' r% c!.Y1e. tion fluctuated appreciably but generally increased, while that of manu- decreased steadily. The greatest increase in the share of GDP was given by
/')a111 4--,kIlL) -A 1 +. - a 13U 01.S.. 0Q.. *O0 05. J J. 14 1 (011,4, '. 1QCf),. (in percentages)
1953 19 U L9_ 1962
Total product (L million) 106.7 1-805 2l2Il 2o) (Current Prices) (Per cent of Total)
Agriculture, Forestry and Fishing 21.2 16.2 13.3 125 !ining 2.4 5.5 7.9 8.8 Manufacturing 13.8 13.1 13.2 13.3 Construction and Installation 9.6 12.7 11.8 10.8 Public UTiIties 0.7 0.8 1,0 1i Transportation, Communication and Storage 6.6 6,6 6.6 6.9 Wholesale and Retail Distribution 17.2 16.2 16.9 15.4 Banking, Insurance and Real Estate 2.9 4.7 6.1 6.1
13. A substantial part of the expansion of GDP was due to growth in the service sectors rather than productive industries and in 1962 distribu- tion ccntributed more to GDP than any other industry. Substantial real estate profits were made in the 1950's, and with the increases in financial services, the percentage contribution of the banking, insurance, and real estate sector to GDP doubled from 1953 to 1962.
14. A disquieting feature of recent economic trends has been the relatively low rate of growth in agriculture (an average of 2.8, per annia). The natural resources of Jamaica are limited and the effective utilization of the rich scils which are available is essential to the general prosperity of the economy.
15. The annual growth in manufacturing at constant prices was con- siderable (at 75) and rose at the same rate as the economy as a whole. -5-
PRINCIPAL ECONOMIC SECTORS
1. AGRICULTURE
16. Jamaica is still primarily an agricultural country with a low ratio of cultivated land to population. Two-thirds of the population live in rural areas and nearly one-half of the total working population is engaged in agriculture. L13J1 million or 60 of the national income consists of subsistence consumption in agriculture. Jamaica is a country of small land holdings with a total of 158,000 farms, of which 71,S are under 5 acres, and 26% are between 5 and 25 acres. These small farms (under 25 acres) constitute only 45% of the total acreage in farms and only 65S of all cropland in farms, and there are a number of large estates.
17. The general agricultural pattern is one of many small hillside farms producinv foodstuffs inefficiently and inadequately for the home market, and large, more efficient estates producing export crops. The local demand for food Droducts has been increasina because of the population :rowth, especially in urban areas, and the increase in incaes, but production has failed to meet this -rowing need. Food imports in 1962 amounted to over 16 million and the authorities estimate that about one-half of these imnorts could have been nroduced locaill.
18 Thpre i. qiihst,qntiMn ncnv.rnmtnt. ;s;iqtPnce to ;Criculture_ both direct and indirect, mostly to the many small farms. 1,easures range from. free seedlings, and subsidized irrigation schemes to soil conservation and d4nrainge -measures,o oprtio n ofr modeal farms, andl provision of credlf.it. below market rates. During the period 1958-1963 current and capital ex- noenditures f-r n-f-rje i+niiY' rqa.cs L9n mjlli -n r%-r ),LM -f tho +.n+.n7 Zihl million spent on economic services. The Government's policy of obtaining the fullest 'and -oSt efficient use of land resources,byecuaigetr agricultural techniques and implementing development schemes, is handicapped 4 1 by, the lo..nu ducainls 1- -vel of thle njor4+y onP +1 I-Pf - , - finn, -;+rs
190 Tnro ,nn, nwaA4crch no -Parm -,l Js madns a vn,a i-al + 1- 1, +Ilps A -"-i;- cultural Credit Board, a statutory body which primarily obtains its funds
.3.1.5.1555U L"CL10JdL_555 ku5. V~±AI~~JL 5UkjokjULLL.LIU .5.1 ria-L L'Ll 0. =.75)) 054 £1..~± are made direct to farmers, or, more frequently through small loan banks
1%4±.'J1I_oaown as l!reopylelsoK.0I,- 9J-L: ouperativeJ±0U L LV~ OCU111'clankL!? over'V1 WII.LUIW- cI 4-1UL±SW it: QUd--4 .L U AIC.O OUV:7Um upU_P .L- vision and control. Much of the credit from the Board goes for small loans 4-JOU 15 iIJ.±4-0Ll1r ±4.. '±1±-VI 4.U 1U~ production. More credit is wanted and needed but the problem is to get it
le a ribulUL fL an ~Ue 100 DiOVUTrinxUG 10 CODUuering a .UVJlblU 01 100b lanQ2 ieUGimbHI program to give greater emphasis to the establishment of medium-size i^>-'0 acres) farms for production of milk and other locally required foca products. Only a relatively small area (2,000-3,000 acres) of government- owned land is at present available for such a settlement program. Any large scale development of medium-size farms would require the consolidation of small farms and/or the fuller utilization of large estates. Between 195b. -o-
principally as a result of migration overseas and from rural areas to the towns.* A cotinued.- ~iial-r-ns in thV_n 111-wirde of Smal fa{'nSri c0u~,l , - -- usable land for the formation of medium-size farms. On the other hand, while the evience of many small farms contriut+no the unc rnomical ue of land and absorbs substantial amounts of public funds, there is a viewpoint 1 nm^-- b.',B-,-v-1- o 41-++ on4v-.o-.n O n d ot e g+-nnr mnds,rAc a '"- uho +r farms will be a permanent feature of Jamaican agriculture and that the Gor.,n entn vrL 11 b-ave. 4.o Cnr"+4-,,nn-.,a.. +_ ;--,rVe,., +1m ,-rA ns o..f +hn .A. VC± *J...L..L±I1~L4U iia ~ k . V..LflU P. 'jr ,± C34I1Q UJ .LAuJA. WJV the~ condJit ion-JL.fl3 JLUt peasant farmers.
21. The larger farmers are not important producers of food for domestic
LULV Wi;I 1 _L0 0%-I11V _LILL.L,:U.LVJ 1d1tilICL . UI I Ld11iy U1Z;kV1IR1t:; % II1j_ J U L AI.LJ dairy-farming in the future. This could result from the fact that the potenia return4.to'.1I Ua.LrY -a1-1[1±L1~ 1r,dL-: P.ii±.±_iGj 11Ui W-±L0l1 O.L Uit5 kVU ~ I 1111 to reduce imports, and the desire of estate owners to forestall the possible large farms have turned to beef production while maintaining the production o0trd tionaluu~ export crops.
22. The marketing of crops for home consumption has been poorly anc.le. This has been a major hindrance to increased production by small farmers and to the fuller use of local products by food merchants and hotels. The Government has approved the establishment of a 1larketing Corporation to deal mainly in crops produced for home consumption, and steps for implementa- tion of this action are being taken. The Corporation will provide an assured market for farmers' produce at "reasonable" prices and should encourage additional vegetable production.
23. While the cultivable area cannot be easily expanded, yields could be increased. With more effective implementation of extension services, improved marketing assistance, better use of fertilizers, and in some cases with more mechanization and credit, output of food products could expand more rapidly than domestic demands. The success of the recently developed commercial production of poultry is a good example of what can be achieved by effective organization of both the production and marketing aspects of the farm enterprise. By use of modern methods of production the output of chickens and eggs was increased more than four times in four years and poultry product imports have been sharply reduced.
24. The marketing of sugar, bananas, citrus, cocoa and coffee, the principal crops in the export field, is handled by producer associations or marketing bodies established by law. In general, the marketing organiza- tions provide effective marketing services for the export crops.
25. The production of sugar, the main export agricultural crop, in 1961 was 440,000 long tons, the highest on record, and about 305 above 1953. Currently more than one-half of the sugar cane is grown on large estates where yields have averaged about double those on non-estate lands. Total exports of sugar in 1962 were 380,000 tons. -7-
26. Most sugar exports are sold under the Commonwealth Sugar Agreement which provides Jamaica with a basic quota of 199,000 tons at a price negotiated between the United Kingdom and the Commonwealth Sugar Producer,. This price, which is renegotiated every year, is fixed at a level considered reasonably remunerative for an efficient producer. In addition to the negotiated price quota there is a quota for extra quantities sold in the United Kingdom and Canada with the benefit of Commonwealth preference over the world price. In 1962, the Commonwealth Sugar Agreement was extended to 1970. Jamaica has a basic quota of 36,500 tons under the U.S. Sugar Act Amendments of 1962. which are in force until the end of 196L. The price paid by the United States for quota sugar varies, and is determined by the Secretary of Agriculturets statement of the amount of sugar needed to fulfill domestic requirements for a year. The Secretary considers the relationshin between the wholnesle nrine of refintri sutynr and the rost of living when calculating the yearly import reqtdrement. The price for quota
suqar imnort-e8d hv th ITni 2t_+.ttor i . niIIv mih.qtllyhtntI lI v hi cahpr tih-n the world market price. Non-quota sugar is imported at the world market nri np. T, QS .Tnrn_ni nT.q~ qiirrn-n P~vy)n-r+. i-anoin+_q fnt.n1pri 1 1 mnilli-~ n compared with UL3.0 million in 1960, mainly due to the increase of exports to the United Sttes Tn May, 1963 the mon+.hly average price of world sugar reached a new post-war high, exceeding substantially the previous pe ak reached in June,: -1~ The1 avrg price in ugst1 wasStil higher than the U.S. quota price. The 1963 negotiated price under the Commonwealth Sug-ar Agreement,'--;cl was anone at th end of 1962, 1be not been affected by the recent surge in prices, but Commonwealth Sugar Producers V-Oil*'_ beC meeting wih"h United IALk_LLJL5in No0vem11ber to negotiate the price for 1964, As principal sugar-producing countries prices on the world market may be expected.
27. In 1962, 5% of sugar exports were sold to the United Kingdom, 2350 u'.' dul L/~IJ Ld~ e)o IU uO lli U.AJ.U _LU tU.V1 ZJLIU WLit, ± LLL :: VJ. some other countries to fulfill their quotas. However, in the long run there 15 o certalUy Uat tUis level of 6ugar sales to the United Oates wlLL continue. Increasing competition from other sugar producers is likely; more typical pattern of Jamaican sugar exports for the future may be that of 1v when ,ofUthe ougar exporu wenu ou t e unieu ALuguom .)7 o Canada and 11S to the U.S.
28. The sugar industry in Jamaica is capable of further increases in out- put, particularly from improvement of yields of cane per acre. achinery for loading cane is being introduced on some of the large estates. Pre- viously all work connected with harvesting had been done by hand.
29. Bananas, the other major crop, are grown throughout the island on both estates and small holdings. Production has barely changed since 1953 being about 18 million stems. The amount of stems offered to the Banana Board for export, mainly to the United Kingdom, was 11.8 million in 1962 and 11.2 million in 1953. Wastage is high and in 1962, an appreciable improvement over the pirevious year, 0.8 million stems or 7% of the stems offered to the Board were rejected. In 1935-39, Jamaica and Mexico were the worldrs main exporters of bananas, but now Jamaica holds 10th place, -8-
anA WIe voLume 0J UxPou is13 on-Ly auoul one-naus 01. Ione-yL:-;) ) evej. The economy has thus failed to exploit the large growfti of world trade in bananas which has increased by 7t; in volume above tne 1935-39 level. Janaicals receipts from banana exports decreased from just over 16 million in l97 to 1.2 million in 1962. Difficulties in the banana industry have been due to lower prices in overseas markets, constantly increasing competition, increasing costs of production, declining yields, and unsolved disease problems.
30. Steps are being taken to reorganize the industry, although with present world supply there would seem no possibility of Jamaica being aOle to re-establish its former place in world exports of bananas. In December 1962, the United Fruit Company entered into an agreement with the Government whereby the Company will invest $2 million in banana production initially in an effort to raise the island's annual output by about 2 mil- lion stems. The Company will use its technical knowledge and equipment to increase productivity, and to improve marketing practices and the competi- tive status of the industry. The company expects to negotiate a new contract for transportation of fruit to overseas markets when the present contract expires in 196. It is expected that the increase in production can be achieved through improved yields with little or no expansion in acreage.
31. Citrus production in Jamaica has been slowly increasing under a Government-sponsored Citrus Expansion Program which started in 1947. The Government assists citrus growers with loans for fertilizer and in carry- ing out insect and disease control programs. There are now about 66,000 acres in citrus. Sweet oranges and grapefruit are grown chiefly on small holdings. Some fresh fruit is exported but since 1945 the processing industry has greatly expanded, and now the greater part of the crop is exported to Great Britain in the form of canned juices and grapefruit sections. Export receipts from fresh citrus and citrus products in 1962 were ',2.0 million as compared with L2.h million in 1960. This was due in part to the removal of subsidies on the sale of concentrated orange juices by the United.KinEdom, and consequent lower prices. Producers are trying to break into the Continental European market with the new orange variety "ortanique."1 Local demands for citrus products have been increasing.
32. Other export crops include cocoa, coffee and pimento. The Govern- ment expects an extension of cocoa plantings by about 7,000 acres per year during the next five years from a present total of 30.000 acres. Exoort earnings from cocoa in 1962 were LO.5 million due to low world prices. Somei,ninrnvementin returns to growers may be exnected as a result of recent increases in prices and better prospects for exports. The coffee industry in Jamainn continues denressed even though a preferential market is claimed for "Blue Mountain" coffee. Exports in 1962 (LO.3 million) showed a slight imnrnv,Qment over 1961 whtn -orrt Pirninp- were qt thtir lnT.st .i nrt hefforn 1950. To encourage coffee production the Government has distributed free _seedlingsQ (ovemr ' rnill-inn) in the lnaqt. s-ix irar- .ofaTnirmr.
33 Tere has been an increase in exports of pimento brisand le-f oil but large areas are being destroyed by a Leaf Rust disease. Returns on record, but a decrease from the peak of the previous year. -9-
3La. s,- d-4ei TPi4-1, P ,-4,~ 4 - T
,.i!L 1 .'LELi.L1 UQUILM-Ll-cl LO~ Uli CLIL ~ J±4u~EUi ,~~ The potentials of marine fisheries are being investigated in co-operation program for mechanization of their boats.
34b. Forestry. Jamaica has considerable areas of mountainous land that arestAle U on-ly f'or forest tree production. To dt 4L.I are Ly - I -L I. LO.L U U LI IVUUdU, " LJULV VI± 1W0 VCLLUU has been placed on the potential forest resources. A survey of the forest resources Is being planned.
2. MANUFACTURING
35. 11anufacturing has grown at an annual average of 7% during 1953-1960, but individual industries have grown at considerably different rates, tne main expansion taking place in building materials and furnishings (reflect- ing residential growth) and textiles. In 1953 food,beverages and tobaccc contributed 65% of manufacturing output, and all other manufacturing (in- cluding textiles, furniture and fixtures, chemical products, cement and clay products, and metal products) provided 35,. In 1960 these ratios had each changed to about 50%.
36. 7anufacturing is not a large employer of labor. In 1960 there were 36,000 employees or 6' of the total labor force of 650,000.
37. Industrial capital has come mostly from private sources and it is government policy that this should continue. The goverinment provides substantial and varied assistance to the manufacturing industry comprising concessions on income tax and import duties, tariff and quota protection including total bans on certain imports, the loan operations of the Develop- ment Finance Corporation, and the diverse facilities of the Jamaica Industrial Development Corporation. The Jamaica Industrial Development Corporation, established in 1952 undertakes feasibility studies, provides training programs and engineering services, undertakes promotional work including the mainte- nance of overseas information offices, and constructs factories for sale or rental. The government has spent some 11.6 million on the building of factories since 1956. In 1962 the loss of L500,000 in the failure of Jamaica Woolens Ltd., one of the Corporation's major projects, led to changes in the senior officers of the Corporation and an enquiry into the failure.
38. Since 19hh there have been eight major items of legislation to aid industrial development through tax and import duty concessions, and new legislation is currently considered. Polies on assistance to manufactur- ing should be comprehensively reviewed, to determine whether the exact benefits to the Jamaican economy are commensurate with the government out- lays made. The possible effectiveness of the incentives legislation has nnhhlyr been nffPeted by its nipee-meAl evolution. There m1v be a nre- occupation with legislative measures to stimulate foreign private invest- mntf ArHnd aL of reganrd for rnon-taxy fnnrtnrR nffP±ntAgr private. invesqtment. decisions. Also, there is the dissatisfaction of local businessmen who do fcries o -pri gu n the Ind u ra f iynentivesrn- leg islio -nrl factories operating under tile industrial incentives legislation., all, -10- established sincle 1950, but the amount of employment stimulated has not been large (about 7,700 when factories coimencing production in 1962 are fully operating).
39. Host of the expansion in light industry has occurred in the Kingston area. The new government has announced its intention of intro- ducine special incentives for industries setting up in areas away from Kingston, to speed employment opportunities throughout the island. Develop- nnt of infra;struct1ir in these qreas is also intended.
LO- Tndustrial develoPnment is hamnP.rd among other f.etor. hv the size of the internal market. The effective market is considerably less than tntal ponnition (1-7 millinn) him-nq r)f, +.'r Pvr+.Pnt nhi livin in the rural areas, income distribution in the labor force itself, the ~mntof unemplo,.ent and underennommn+. Furthermore the middle incme group, where the effective demand exists, has a sophisticated preference for irported products. Tlports cOd prolide additiJonalI mar-kets but1 Jamaican manufacturers face the competition of producers with mass pro- dution tecl,-iques based on large -w,nrnonest 1ck -A 1-, +1-b of special conditions and relations with a large market, such as Puerto resources (other than bauxite and in agriculture), manufacturing in Jamaica and the wage level is probably too high to give Jamaica a competitive
Lb. in one snr'-run potenUal grown in manufacturiug wou._u litem uu ve processing and canning of local agricultural products for the domestic market and for exports, and manufacturing for import substitution rather tnan iLr export. (An examination of the possibilities for import substitution is being undertaken by the Jamaica Industrial Development Corporation.) Some international companies may choose Jamaica for a part of their operations for reasons such as location, decentralization, etc., but such evolution is likely to be curbed by factors such as lack of natural resources and size of market.
3. 1INING
42. This has been the most rapidly growing part of the economy with an average annual rate of 30% over the period 1954-1961. Alumina and bauxite exports are nearly 505 of total domestic exports and had a total value of over L30 million in 1962. Jamaica has been the world's largest producer of bauxite since 1957. Bauxite production began in 1952 with 0.3 million tons and reached 7.5 million tons in 1962, including bauxite converted into alumina. Exports of alumina began in 1953 with 29,000 tons and were 703,000 tons in 1961.
43. In 1961/62 the alumina/bauxite industries paid over n:.0 million in income tax, or more than all other companies together. Including royalties (L1.0 million) the industries were the source of about 16, of the Government s total tax revenue. Wage rates are among the highest in the economy (L20 per week for a skilled worker) but the labor force is only some 4,000 people. -11-
t UCU "-IULail OLUJO.ALU.,±y, 1iL%CU1 UCU1lc:L.L%.'L .LALI." LU U J ~ . ALJ. into alumina about 5$' of which is shipped to Canada, and 275 to Nor,ay.
I~lit: UWUVOOO±~ 4.V111Ct"t:O WIU £L i l iu5l.lu cIu "I"i ) LL.&.i U U±=. only. A new U.S. company, Alcoa Minerals of Jamaica Inc. is just starting to mine auu lip bauxite with a prouuction targeu of 0U0,uou tous per annum. Another company, Harvey Aluminium of America, intends to commence operations in 1963- 4 prouucing 00,000 tons of bauxite arfnua"y. The Kaiser-Bauxite Company, which has conducted its mining operations in the central part of Jamaica since 1953, has recently announced a lu.5 milion five-year plan to develop bauxite reserves near the northern coast. In 1961 Jamaica supplied more than half of U.S. bauxite imports, these imports being 88, of U.S. needs. h5. The Iong-teri prospects for aluminum production are good, but in the short run there are the problems due to increasing world supplies and an uncertain growth of demand. Corporate relationships could mitigate the effects of world competition for the Jamaican alumina and bauxite industries, but the U.S. and Canadian companies concerned are themselves affected by U.S. barter and stockpiling policies. Also important for Jamaica will be the competitive position of the Canadian aluminum industry in European markets.
46. Bauxite reserves of Jamaica are estimated at about 600 million tons, or enough to last for 100 years at the present extraction rate. This does not include low grade bauxite, amounting to possibly 300 million tons, which though uneconomical for use in the production of metal is suitable for use in cement manufacture. An indication of the possible utilization of these deposits is given by the ten-year agreement recently concluded by the Kaiser Company to supply low grade bauxite to the Bahama Cement Company.
4. C0MMERCE
47. The contribution of the wholesale and retail trade to GDP decreased slightly from 17.1 to 15 between 1953 and 1962, but distribution replaced. agriculture as the single largest sector. There is considerable self- employment reflecting a strong tendency for redundant labor to gravitate towards distributive and miscellaneous services.
8. Part of the industry, mainly dealing with foodstuffs, is characteri- zed by the "hi.ler' system. A large number of individuals. mostly wome purchase small amounts of products from the farmers, and convey the prod'.ce to the towns. Under this system there are sunnlv uncertainties. in terms of amounts and quality. Even during crop periods shortages may exist in some areas with r?luts in others. The modern suer-markets established chiefly in the Kingston and tourist areas in recent years prefer to import fnodqtinff_ rnt.hpr thnn PenAnd on the unrnliable 'higgler svtPm. so thAt. canned imported products are consumed rather than local products. The m arken cororatioo pridct i being sp urrk.tingshould improve the of locally groim food products in the future. -12-
5. CONSTRUCTION
L9. Construction witnessed a spectacular boom in 1955-1957, mainly duz to increased investment in the bauxite industry, with an average growth rate of 281- There was a drop in construction in 1958 with a gradual re- surgence during 1959-1961.
50. Tentative data indicate a new slump during 196:2, due to the ccm- n1etion of several major proiects. reduced exenditures on housing, and uncertainties about labor costs. In June 1962, after a labor dispute, an mward was made nroviding, for a .are increase retroactive to the beginning of the year, thus increasing the costs of buildings already completed.
A TnTTRTH
T- 1040 ln+ila lz m+.nven. cliilh. contributer. T. 7 million to GDP or 2.5,. This share has been maintained since 1956 with an increasing - TiY)P,- 4 .- . - - *+ -, j ,s , cn-ivnet' nf' fore'ig~n i=.qrnjn ly.q - T.L) million in 1956 and increasing to about 113 million in 1962 or the equivalent
IJ Ulle v 3V 0 V k-"' .L J. -L11 V- - A b - -- k,~ of L14.6 million in 1961.
52. In 1962 the number of long-stay visitors (over 3 days) was 78,000 are from N'orth America. Mlost tourists visit Jamaica for short stays of three days or less. This group, cnsibsting chiejly o Ucuise passengers, totaled 123,000 in 1962, a decrease frcm the record of 148,000 in 1961.
53. The main tourist area is along the north coast and centered at Zontego Bay and Ocho Rios Unich account for 72t of total hotel capacty. Between 1956 and 1962 tourist accommodation more than doubled from 3,600 to 7,hC beds. There is now considerable excess capacity. In Narch 1962, the peak of the 1961-1962 season, utilization of accommodation was less than one-half of facilities. A number of small hotels are in a weaR position.
54. The tourist industry, if properly developed, could make an increas- ing contribution to future economic aevelopment. The scenery and cLimate of Jamaica are rich natural assets which could have an increasing appeal to North American tourists. The industry, however, is beset by a number of serious problems. Air fares to Jamaica from New York are double those charged to competing tourist areas such as Puerto Rico and the Virgin Islands. In Jamaica the quality of services is not in keeping with prices charged. Some of these impediments could be removed by the actions of individuals, organizations and government in Jamaica. To promote the tourist industry and reduce air travel fares, the Government is forming an international airline in partnership with BOAC, Cunard Steamship Company and British West Indian Airways, in which it will hold the majority interest. -13-
7. TRANSPORTATION
55. Ports. The Port of Kingston consists of old-fashioned, wooden finger- piers, without adequate mechanical handling equipment. These wharves and their corresponding transit sheds are located on the waterfront of the most congested part of the city of Kingston, thus creating a serious traffic problem. All port facilities in Jamaica are privately owned, except the Railway Corporation's piers in Kingston which are based to private opera- tors. Broadly speaking, imports enter the island through the Port of Kingston and exports (mainly bauxite, alumina, sugar and banana) are shipped from the outports. Total traffic through the Port of Kingston was 1.27 million tons in 1961, compared to 1.25 million tons in 1957, while the fourteen outports handled 6.78 million tons and 5.40 million tons, respectively, in these years.
56. In 1959 a Port Authority Law was passed but never put into effect. In its report of August 1962, a Commission of Enquiry, initiated mainly to look into labor conditions and problems, recommended that a new law be enacted establishing a port authority which would have jurisdiction over all facilities, services, and development at the Port of Kingston. The Commission of Enquir7 also recommended resiting the Port, at an initial cost of about T3 million.
57. There appears to be general agreement that there should be a port authority. Hoever, the iharf!e comoanies consider that they. orranized as a consortium, should continue to operate the port. Once a suitable reor2anization has taken nlace. there will exist an PntAtv anmlif in to make a decision as to the development of the port, whether by construction of a new Dort or. nossiblv. renovation of thp evtnn nort_ A fanr to be considered is whether the growth in traffic would be adequate to service the irvestment- as then po-rhtqs tr ichs notcrise muchn in recent yrs.
,Ti riT..~~Tnirq TTh., M~ ryiTI.rnir i n-P' Tnmn - 0 4 I ~ ^O.P main roads of which 1,30 miles are asphalt paved. Of these, 510 miles ~ X , Q.L~.a co.J-And n cC aL QLLU 11d.ljjl UV411 and important agricultural and industrial areas. The remaining 2,170 miles a~re sennnHnY. o-r rCss 11P" -roadsc feedri4ng the arterial road4s. Over last five years 11.5 to 11.75 million has been spent annually on roads, generally well maintained, and the extent of the highway network is ample. Hlow,ever, the standa-rds to wlhich the roads wVere originally cns r c- are inadequate for today's type and volume of traffic, particularly in registered has increased from 14,000 to 4h,000, and trucks and buses from 1. r)O0 4 - -10 nn,"
.LatLJLUc,Y. lilt utcL±UU 1ULUway LUporainonU11 Wa6 JoIrmIT in 1you, ana is an autonomous statutory body wholly owned by the Government. The rail- way iO cU ma±±t o 1 iU ±S o± eaniuara wo; gauge. Since the first 15 miles was opened in 186, it has operated at a loss except for one year. The Government has now undertaken to provide a subsily of 1UU,UUU in each of the Corporation's first five years. After this period the Uorporation believes the Rallway can be operated profitably. The ae-iciz -1-
expenditure was 11,261,000 against revenue of L963,000. Since 1957, the
-LaboUr force has~ beeni s--AUs4UaLLU'L-L-LY redJCu 'Out~ IJ 'Whe Saing Tviere oi-±Lu LJ' increased wages. Alumina Jamaica Ltd., (Alcan) has a 25-year contract with the Railway and the basic rate of c equivalent per tn-mile cannot be changed except for escalation.
60. The volume of all freight moved increased from 1.0 million tons in L57/>(o to 1.3 million tons in IYUo, alumina ana process materials accounting, respectively, for 68/ and 83i of the total traffic in these years. The balance of the traffic consisted of bananas, sugar cane, general merchandise, sugar, and citrus. The haulage of sugar cane (80,000 tens) has been discontinued as the Railway was losing neavily on this traffic. Passenger traffic, about 1 million annually, has remained about the same during the past five years.
61. Airports. Jamaica has two modern airports at Kingsten (Palisadoes) and Nontego Bay, both developed mainly for the tourist industry, and open for international jet aircraft on a 24-hour basis. Additional facilities are planned at iontego Bay.
E1PLOYEENT, INCME AND PRODUCTIVITY
62. High growth rates in GDP and record performances in production and export earnings have not been associated with high levels of employment. On the contrary, scme of the major contributions to economic development have been made by productive sectors which are capital intensive, but are not large employers of labor, notably the alumina and bauxite industries.
63. A skilled worker in alumina-bauxite, port wharves, or construction may earn M20 per week, or the sam as a skilled worker in the United Kingdom. In contrast, an unskilled factory worker earns about r3-5 per week. In ariculture, a motor mechanic earns about L6-8 per week, with a manual worker earning about 12-3. The highly productive industries .Justify and are able to pay high wage rates, but this wage pattern may then be set as a precedent to justify wage demands in less productive industries. The danger of wage competition within the labor force is accentuated by the existence of two competing trade union groups, whose relative positions may affect the fortunes of either political party. This danger is appreciably reduced in the industries where both unions are represented. Negotiations with emnlovers are undertaken on a ioint-bargaining basis and the wage settlement applies to members of both unions. However, in certain industries only one union nredominites or is even the sole renresentative of labor. In these cases, a wage increase achieved in an industry by one of the unions may Stmi0muna nce demann in nnother industry h the other union Frthir- more, a union has to satisfy the wage demands of its members or face the no sik 1 nc nP "f -raQan n A_ nn +n +ai r%.i- imi n now lim 1ln+, ton r1P+Pv-_ mine union recognition is permitted by the M_Tinistry of Labour each year.
64. Perhaps to date more attention has been given to attaining European 1 ing d ev el n t at eae f f i cic.y e b_ samnt e g iic -. wold ru th ec ing development contemplated by scme groups in Jamaica would require the -15-
export of a large portion of manufacturing output. Yet, wage increases without comparable increases in productivity decrease the international competitive position of the Jamaican eccnomy in both agricultural and manufacturing products.
65. In 1957 when GDP at constant factor cost increased by 155, the highest annual increase in the boom of the 1950's, unemployment was 121,000 or 19% of the labor force of 640,000. The labor force in the primary industry group is large, 232,000 or 361' of the total. In this group there is much partial employment or underemployment. A typical pattern in agri- culture is that an individual will earn a certain amount of cash in seascnal work, and otherwise work his own small plot of land for a subsistence living or small additional cash income. The labor force in the primary industry group has decreased by 60,000 since 1957, but this trend has aggravated the unemployment problem in urban areas.
66. Total net emigration from Jamaica to the United Kingdom during 1954-1962 was 161,000 or nearly 10.1 of the present population. In 1962 the United Kingdom Government enacted legislation imposing restrictions on the entry of Commonwealth citizens into the United Kingdom. A major requirement is evidence that employment has been arranged. In Jamaica there is the misgiving that the annual flow of immigrants to the United Kingdom will beccme quite small, and that the workers who qualify will be Tredo-:'inantl, skilled workers. Tt is estimated thit if migration ceases the labor force will be about 860,000 persons in 1970. About 182,000 jobs would have to bi nrovind ht.we.en 1960 and 1970 if unrmnloyment in 1970 in to be kept at the same level as that of 1960, or 13%o of the labor force.
67. In 1962 the Canadian Government announced a policy of facilitating mi rntion -frrTn Jamanica. ton Cannn_ VThere is- -no)quota systemPr uindewr Cannadinn immigration law, but the type of immigrants sought - skilled workers - is the veyr gann which the Jamincn connomv can l afford_e + lnce.
68. Ur-ne Tf q 4"-- " n-t n re,,, ion th quota n'ra,,i an^ imTn-; is now 100 per year. The 1952 Immigration and Nationality Act, as amended, pronvidesq for non-quotan immig-rnAin fromn fl, aad,teReulcofIei the Republic of Cuba, the Republic of Haiti, the Dominican Republic, the
Jamaica was not then independent it was not included in the specified list
Jamaican Government is now seeking an amendment in the Act to permit non-
V.JU11.61CIVUIIA 3.LJVJ U1LL U " MJJ L1 U.UOII. CJ$ %,0
IV. FOREIGN TRADE AND BALANCE OF PAYiENTS
69. In 1962 Jamaica's merchandise exports were L62.1 million and were equivalent to some Q10 LLrLur, expors nave increaeu y nearly two anu. a half times since 1953 and the composition of items has also changed (see Table 1). In 1953 the main export was sugar inich constituted hlr, of total exports. Bananas contributed 19% of foreign earnings, but bauxite exports were only some ll"? of total exports and alumina exports had not -16-
Ut~~~~~11i,J..LyU LU UUJ~ii I -itU -4 -f__a Vd-- _2,J L ~Ie-f~ alumina 23/,and bananas 7/. Other exports consisted of traditional sugar products, tropical Ifruits and proaucts, and clothing.
70. In the period 1>53-19yo, Jamaican consistently incurred aeficits in its balance of trade. In 1962 imports were 179.7 million and consisted mainly of manufactured goods (331), machinery and transport equipment (2 /)), foodstuffs (20%), mineral fuels and lubricants (9,), and chemicals (3). Imports were more than double the Ly5 level (see Tables 16 and 17).
71. The terms of trade have moved steadily against Jamaica in recent years (see Table 18). With 1954 as the base year of 100, the imoort and export price indices for 19061 were 131.5 and 111.0, giving a net terms of trade of 84.2. Indices for 1962 are not available, but it appears that there was a further deterioration. The average price received for sugar exports was slightly higher than in 1961 and prices of ginter and pimento rose, but these price increases were probably more than offset by lower prices for alumina, bananas, cocoa, coffee and citrus.
72. In 1962 the Sterling Area and North America purchased almost 87Z of Jamaican exports (U.K. 26, other sterling 1,, U.S.A. 390 , Canada 189) and supplied nearly 77' of Jamaican imports (U.K. 291, other sterling 10", U,S.A. 285', Canada 10)., A new pattern of trade emerged in 1961, and continued in 1962, in that the United States became the main single market for exports creating a surplus for Jamaica in the trade between the two countries. This was due mainly to sharp increases in bauxite exports, but also sugar exports - a situation which may well not persist. In previous years the typical pattern of Jamaican trade has been of the United Kingdom as the main export market, and of a surplus in trade with Canada but deficits with both the United Kingdom and the United States. Since 1960 imports fioii the United Kingdom have decreased while imports from the U.S.A. have increased, but in 1962 the United Kinadom continued to be the main source of Jamaica's imports.
73. Jamaica usually sustains a small surplus on invisibles. The main receipt on invisibles has been tourist earnings which amounted to about L13 million in 1962. Emigrant remittances have become an important source of foreign earnin2s and totaled nearly 18 million. The chief payments are international investment income, and insurance, which were (net) 19.0 million, and L3.7 million, respectively.
71. Overall, however, there has been a nersistent adverse balance on all current transactions which was covered in 1957 by the private capital inflow. and since then in most years by orivate and nublic canital move- ments.1 In 1961 there was a certain resurgence of long-term private capital, but still considergbly behlow the 19q7 level.
1/ Capital account data are not available for years previous to 1957 but available information suggests that, due primarily to the growth of the alumina and bauxite industries, a general pattern of private capital inflows offsetting the deficits on current account prevailed in at least the immediate preceding years. -17-
I 'I J.LL.LIi6 ~ I L yI ±~' rivi..tL VIIci-Y _L11 U~IU U_&Ut171a liabilities of commercial banks and government, while total external assets i~~ u1~ ~J..Ly, U~~L~Jl~ U IiUU OUI[P-LUb Ul :6-L:?U IfUli.-LOfl OJr ilarcII1>! Thereafter, increases in commercial bank and government lidilities exceeded the growth in total assets proucing a steady decline in the net surplus position (see Table 13). Currency and banking reserves in Narch 1962 were -4.4 miLLIon compared with the high of b40oL millon in Earci l>1. At the end of 1962 these reserves were 17.8 million, resulting from the re- duCtion in the net indebtedness or the commercial banks, and were equal to about 1071 of imports.
76. The future trend in the balance of payments, although basically favorable, has elements of uncertainty. There is at present no prsypect of any economic development likely to attract the amounts of foreign private capital as in past years. Trade prospects depend on external ele- ments yet to be determined, such as U.S. barter and stockpiling policies on alumina and bauite, sugar prices, and possible association with the European Economic Community. Association with EEC would increase the possible market for agricultural products, but Jamaica would also have to face the competition of French-associated countries, Jamaica has joined GATT but is utilizing the two-year transition period allowed. The 1926 trade agreement with Canada is now out of date and likely to be revised. At present, Jamaica applies preferences to imports from the British Com- monwealth and operates an import policy of open general license with certain schedules of exemptions. Domestic suppliers are protected by quota imports and in a few cases by total bans on imports.
V . FINANCIAL AID FISCAL POSITION
77. Money and Banking. The unit of currency is the Jamaican pound. The Bank of Jamaica, established in 1960, is the central issuing authority and is required to issue and redeem Jamaican currency against sterling at par on demand. Jamaica has a fiduciary issue and up to 501 of the currency assets may be held in securities issued or guaranteed by the Jamaican Government. Currency in circulation was L11.4 million at December 31. 1962 (see Table 11).
78. The commercial banking system consist of six camuercial banks, all of which are branches of large international banks. Canadian. British. And U.S., but all operate as sterling area banks. The commercial banks have expanded their advances with the growth of the economv loans and advances were :642.4 million (triple the amount in 1953) on December 31, 1961, but decreased to _-O.L million by the end of 1962. Totnl denosits (dAmAna saving and time) were -12.6 and L50.4 million respectively on these dates (see Table 12'). Banks as a whole nrp ovprdrnTqn in their Tnnrir%n nmnnnC in order to balance their total Jamaican assets and liabilities.
79. To date, it has been custcmary for the banks not to segregate their sd nheir over-al f-enni +3-posiio in the aaith respect t ofic cTn sider their over-all position in the area. with respect to head office. Thus, the~~~~~~~~~hav no beebak ~ fro expanding-n -- 444~t 4- '- i this has been of2E'et by sluggish business conditions in another. The emergence of independent countries, and the establishment of central banks acting separately to influence monetary conditions in each country, could cause the banks to end their traditional policy. If so, there could emerge definite limits to possible credit expansion by the commercial banks in any one country.
BO. With the establishment of the Bank of Jamaica the economy is evolving towards conscious monetary management. The central bank has the usual powers of moral persuasion,and is erpowered to vary its rediscount rate, conduct open market operations, and change the reserve requirements of the commercial banks. (The cash reserve ratio may be varied between 5 and 15"). In addition, there are selective controls on the maximum amounts of loans and advances which cormercial banks may have outstanding, and a local assets re- quirements whereby the central bank may specify the minimum ratio of local assets to deposit liabilities in Jamaica held by the commercial banks. While these controls are comprehensive, the central bank faces certain limitations in its influence over monetary affairs. The modified sterling exchange stan- dard which operates in Jamaica has the important advantage of maintaining confidence in the currency and its backing, but with the accompanying corml- mercial banking structure, imposes a rigidity -hich limits the scope of possible monetary action.
81. Important recent developments include the exchanging of medium-term for long-term government securities by private institutional borrowers, and the increased issuing of treasury bills, both facilitated by the Bank of Jamaica. In December 1962 the amount of treasury bills oustandin2 was =9.0 million representing an increase of 12.7 million over the levcl in 1961, The Banz.'k of Jamaica manages thi -*n-to-cay onrPtions of exchrnce control, the public debt, as well as the treasury bill issue. The Bank Law permits tempnorary adivances ton t.he Governent buti ton dantethi facnility-i has, not. been used.
now L life and over 100 82. Ot,hr Financial institutions. There are About nail of the non-life insurance corpanies operating in Jamaica, same proportion of companies are of U.K. origin, while about the non-life of life insurance companies originated in Canada. Saving by purchase life a major share of has become increasingly important; the companies hold societies an Jamaica, all o locaL government issues. There are 17 building origin. and their main activity is providing mortgages for house building in government securities and loans to members. They also hold investments all the building societies ;nd treasury bills, and other securities. Assets of liquid funds of h0.1 at the end o- 1962 are estimated at Ld.2 million, with million and reserves of LO.6 million have ARI The business activities cf hire purchase finance companies in recent years. A boom in purchases of consumer increased substantially in the cost ,1nvale in 1960-1961, contributing to an increase of 7 points by the finance of living index, partly resulted from the credit extended outstanding was l12a8 comMneso. Tn Iarch 1961 total hire purchase credit As a result of ilion but decreased to ,b.million by December 1962. losses sustined, coupled ih pressure from the Bank of Jamaica, the cautious in extending credit. The three largest companies are now more and there is finance companip onerating in Jamaica w'e of British origin one local company of impor,ance. -19-
R), The DvP1Irment. Pinann Cornoration (DC) . runliin -rnrnation, was established in 1959 with a capital of I1.0 million to finance and i Inae invs n i.n i ndust+-r_, touirism,znd- hou7ircing.Teatoie capital of the Corporation has been recently increased to 12.0 million.
saver. General deposits in December 1962 were L5.1 million and of this
and L1.8 million in British Colonial Stock. The Agricultural Credit Board
plus royalties were 637.3 million or 14.75. of 1962 GDP; 18.5 million was obtaede fromI customsi aIU te--CSe ad LIMI;. I.LI LIIILAiL;W=:L Ud. IVVL tax current revenues (interest and dividends, fines, income from government enterprises, etc. ' were 13.l million. Between Y53 and 16c toUal tax revenues grew more rapidly than GDP largely reflecting the greater relative importance of direct taxation as a source of revenue. In 195.3/195 direct taxes (mostly corporate and personal income taxes) were 29K of total tax revenues and indirect taxes were 7r;. By 1962/163 tiese ratios had Cnangea to 425 and 58". Between 1956 and 1957 the corporate income tax more than doubled from :6.0 millIon to +U.o million, mainly resulting from the in- creased operations of the alumina/bauxite companies (also, see Table 19).
86. The general pattern of government finance has been of substantial surpluses on current account being used to finance capital expenditure, and the balance of capital expenditure being financed from externally borrowed funds. In fiscal years 1958/59 - 1961/62 capital expenditures averaged L9.6 million or 25, of total expenditures; current surpluses averaged 1n.3 million and net borrowings b5.2 million. In the 1962/63 fiscal year total revenue increased by L3.7 million over the previous year to L40.8 million but, due primarily to a sharp rise in current ex- penditures and also an increase in capital expenditures, total expenditures rose to 147.9 million creating a deficit to be financed from other sources of L7.1 million as compared to 15.7 million in 1961/62. The surplus on current account continued in 1962/63 but was slightly less than in the previous year; about 42% of capital expenditures were financed from the current surplus in contrast to some 49% in 1961/62. The balance of capital expenditure was partly financed by some long-term borrowing, but there was considerable resort to short-term financing, (See Basic Data.)
87. The amount of treasury bills outstanding increased frcm L3.2 million in January 1961 to L9.0 million by December 1962. Over half of the latter total or L5.1 million was held by commercial banks. The seascnal buying back of treasury bills with tax revenues will permit new issues later, but about L8 million is regarded as the optimum amount of treasury bills which the economy can reasonably absorb, in the short run. The commercial banks are in a liquid position and holding a greater amount of treasury bills than required by the central bank legislation.
88. In the past years the Jamaican Government had easy access to foreign markets; in the period 1953-1962 loans raised in London and New York amounted to L12.h million and ;1.h million respectively. During 1962 the Jamaican -20-
Government sought to make a public issue of $7 million in the United States but was discouraged by its New York broker. A Canadian loan of L1 million, the first Jamaican Government issue in Canada, was raised in February 1963, but only after difficulty and with harder conditions than originally sought. (Terms settled were 7 at I9d per cent, 19ah). The issue was private and taken chiefly by Canadian insurance companies, with sono funds coming from U.S. sources. After a series of delays a United Kingdom public issue of Ll.5 million was made in March 1963, although the terms (6-3/4,, at 196 per cent, 1973-1975) were somewhat high. Events in uuba undoubtedly adversely affected the ability of the Jamaican Government to raise funds, but the break-up of the West Indies Federation, and independence itself, also appeared to have created uncertainties and a general "1iwait and see" attitude among foreign investors.
89. The Jamaican Government is seeking to encourage local savings and to channel them into national development. Under a 6 Government of Jamaica (1969) issue made in July 1962, a total of =81[1,000 was allotted, of which L100,000 was in respect of a conversion offer and L741,000 from cash applications. A Government-sponsored National Savings Bonds scheme, administered by the Bank of Jaaica, was put into effect in August 1962. The total outstanding by the end of the year was about L120,000, with the percentage of encashments up to that date less than 2,.
90. In 1957 the Jamaican Government introduced a I72 million ten-year plan. Great emphasis was placed on economic projects with economic services and infrastructure constitutinz L35 and 30, respectively of intended total expenditures. The largest single allocation was for agriculture (L20 million or 267 ). Of the actual canital exnenditures of Ab6 million made in 1958-1962. L23 million (515) was for economic services and infrastructure (see Table 21). Tn 1962. at the nd of the fifth vr nf the plan. a nomnlete revision uas begun due to the withdrawal of Jamaica from the West Indies Federation, the fact that lrei armins of npnnl uTpere not hnfiin frnm the nrnqnPrity of the economy, and the decision to increase the allocation of resources fnr social ove-rhead 7fhich hqr )Pn nirr.nilpti -in fnvnri nf' P.cnnmir- projeots
M1 T'he (1nvnrnmt-nt has no reare.nntd a dPvP1onPt. program for the pnil1ir sector for the five years 1963-1968. Total expenditures of about L91 million are envisaged -n-rinninnl n11r-nq~tAe)n.qPr t-.nnnin qperuinp .q~ifr±.', ture 14,, social services 375, miscellaneous (primarily public works and bilings) 17%. ?Min single toms arenti2 agricul+tur million) and te+r supplies, chiefly new rural projects, (Ll5 million). (See Table 22.) The average _-nual eXPend-1 ur TI^,'volbe r1 mn 1in r -- n "aIrir tt1,7i ,e t hen nyyal- average realized in 1958-1962. Principal sources of finance are assumed to markets 28c, government-to-government "soft" loans and aid 33%. (See IaWL U C_) * Llu CE1UUILU WL LlUL1i UUG 0ULIAL 111CLL4.tUk0 1lVUVu0:u lU Wit; development plan would be more than one and a half times the external expected to contribute 210 of total fixed capital forriation in 1965, as compared witl a peak of C1 in I7L . The sIze oZ the plan, and especialLy the amount of "foreign aid" hoped for, are probably optimistic. Many of tne projects are not at present ready to be undertaken, and tai may also limit progress with the new development plan, at least initially. -21-
VT - P.OHTrrr PRtPFrT.q An nRRnTTWORT9T\rSS
92. In the period 1953-1960 the rate of growth in GDP was 7' in real ten-is; inl10 6 it dle cr eans eda ton . E% ndl 196( T-iIInrhnINiprbal sho nly ir- a small increase in GDP. The development plan assumes an average annual gro,vth rate of 1 A-4ng 1061968, kb+ it Js doubf-I .T-lf+1- th1is r,na A certain part of past increases in GDP were in fact in will be achieved. 4 , ts _---A--4- t - a ave a r. --- I'f n- + , v.a - A A-; c+ -4 'h-+ , " n" will not necessarily be repeated. There are no iaimediate opportunities e.g., mining.
93. The average growth rate in agriculture during 1954-1961 was 2.8). DUeIto mos salesd-tben made aZ nEgotIU6i,.atedU prce, the bene-Lits of. UrL.rent peak prices for sugar are not being generally received by the Jamaican pro- ducers themselveS. iney will, uowever, be hopig fur btter prices than those set for 1963 when agreements are reviewed later this year. Attempts Uo enter markets in Continental Europe could increase inhe sales 01 products such as bananas, citrus and sugar, but no great stimulus to agricultural exports can be expecTed. A re-establishment of economic relations between the U.S.A. and Cuba could adversely affect the marketing of Jamaican sugar, and any other agricultural products that migt be deveLoped for United States consumers. One-half of Jamaica's food imports could be produced domestically but to achieve this level of rood production would require t:ae extensive revision of past policies and practices, and the effective imple- mentation of the proposed new policies.
94. Manufacturing output (at constant prices and excluding sugar pro-- cessing) increased at an average of 12.4% per annum during 1953-1960. To a certain degree this growth rate resulted from the relatively narrow ianu- facturing base, but a notable development of seccndary industries has occurred in Jamaica, chiefly to replace imports. Generally, continued growth in manufacturing may be expected for import substitution, rather than for export, but this type of expansion will become increasingly difficult, particularly in view of the limited size of the local market. The completion of the new oil refinery by late 1963 will result in import savings and should lead to some petroleum exports to neighboring terri- tories. However, for the economy to grow by an average rate of 5', manu- facturing output (excluding sugar manufacture) would have to increase by 8% per annum to compensate for an expected growth rate of 35 per annum in agriculture.
95. Past growth in mining represents the expansion of a new industry and the fact that the alumina/bauxite industry is now well established (represented by substantial capital outlays and creation of considerable productive capacity), will inevitably mean a sharp drop in future growth rates. However, the investment outlays of the bauxite companies in 1963- 1964 will continue to increase the capacity of the industry, and provide a certain stimulus to the rest of the economy, particularly the construction industry. The main impact of the industry will now be on export earnings as the comnanies utilize the oroduction canacities created by the investments made. The course of U.S. demand is vital here as Jamaica supplies more than -22- half of the Unitod States' hauxite imports; the growth of future bauxite ex- poits to the United States will be very important for Jamaica's general economic groiftlh.
96. Jamaica is now much more dependent than in recent years on borrowing to finance any necessary increases in government capital expenditure, but there is same scope for the greater utilization of domestic resources. Excluding the alumina and bauxite industries, tax revenues were only 12, of GNP in 1961; local long-term borrowing should be developed further.
97. The limited possibilities of the external capital markets, create a greater dependence on governmental and international agencies as sources of funds. The total public debt at December 1962 was .36.9 million and debt charges were 14.1 million or 11' of current revenue in 1961-62. Total public external debt was L18.0 million and debt char2es were 1.8 million or 2.7c of merchandise exports in 1962. Charges on this debt will average annuallv abont T-1.8 million during 1962-1976 with the neak of T2.7 million in 1973 being 4.1' of 1962 export earnings.
98. Although the burden of servicing the present external debt is not hevir .Tn!qca is confronte rwith serious nroblems-. nnl nnbility to horrom externally should be prudently used. Unemployment is high, the population iq gYroIwi nY rapdl ndopotie Poriiratnion ariz obscreP Thei spectacular rate of grouth of the 1950's, which itself rade little impression on unrnpnurnn+ J nn+. lilealr +.n -rrnnivr diiriny f.hp novt. fpa. varnn. 7-cnomic growth will be partly dependent on factors outside the Jamaican economy: investmient; economic growth in, and Jamaica's trade relations with, Europe and +h TTed;+--A Q++e,. TT Q amritin T+ -.411 h he within the influence of public policy to affect future trends to a consider-
CL0 lei CIE; % J.1 ±J L UJ.116 U ACL VilUI± C V I of a long established two-party system of government and a competent civil sevice, aau m a pr es4sdiVDLLk JtUff, Cmpor sIbtit"Y VII U11t a d bauxite and alumina, and processed foodstuffs, import substitution, and touism4r, s1hould1 UbeLUUa.LnU-U_Lt T4 La P T.1- aJ4
zstimated Service Payments On External Public ebt, 1962 - 1976 ... 2
ropulation ...... 3
industrial Origin of GDP at Factor Cost (Percentages) ...... 4
industrial Origin of GDP at Factor Cost (Current Values) ...... 5
Industrial Origin of GDP at Constant Factor Cost ...... 6
Gross Domestic Expenditure ...... 7
Gross Domestic Fixed Capital Formation by Sectors ...... d
Production ...... 9
Price Index ...... 10
Money bupply ...... * ... .11
Banking Statistics ...... 12
E:ternal Assets and Liabilities ...... ol3
National Saving Account ......
Domestic Expoorts ..... o...... a v* a15
Imports by Standard International Trade Classification ...... 16
Balance of Payments...... 17
Price, Volume and Value Indices and Terms of Trade ...... o.18
Government Revenue, Fiscal Year Ending March 31, 1954-63 ...... 19
Functional Classification of Expenditure Estimates for the Current .Account 1958/59 to 1962/63 ...... 20
Functional Classification of Expenditure Estimates for the Capital Account 1958/59 to 1962/63 ...... 21
Development Plan 1963-1968, Capital Expenditures...... 22
Development Plan 1963-1968, Sources of Finance...... 23 Table 1
External Public Debt Outstanding Including Undisbursed as of June 30, 1962 with Major Reported Additions Julv 1. 1962 - May1, 1963
(In thousands of U.S. dollar equivalents)
Debt outstanding Major reported Item June 30, 1962 additions Net of Including July 1, 1962- undisabursedlb 1,-undisbre Abrsed LTXlra I 1, i 04-2963
9'q1A T =1M~ ),p '74 1.9 n74 1.l o TLTA 8 ,6 i~L 8,2?6 . i 16,53
L.FLU'LI-iJssDU onsUVD 4,31 U-L/ ,8/,
U. vernmetlimn. loans±(AID) --- -- 3,90
U.K oernent loans 1,968'. 1,96 3,u39
1/ Net of accumulated sinking funds. Gross bonded debt outstanding June 30, 1962 was $5,729,000.
Source: Statistics Division, IBRD-Economic Staff, May 29, 1963. Table 2 JAMAICA - ESTIMATE) CONTRACTUAL SERVICE PAYMENTS ON EXTERNAL PUBLIC DEBT OUTSTANDING INCLIJDING UIJDISBUiSEJ) AS OF JUNE 30, 1962 WITH MAJOR REPORTED ADDITIONS JULY 1, 1962 - MAY 1, 1963 /1
(In thousands of U.S. dollar equivalents)
durir. year plus undisbursed Par2nsdrnPayments during yearcrst,andijr-j D out- Payinerts lear January 1 Year plus un- Amorti- In- Total disbursed Amorti- In- Gross Net zation terest Januai- 1 zation terest Total debt U.S. Goverhi. itoans - IDu 1962 54,729 /2 48,276/2 2,272 2,729 5,001 1962 - - . 1963 52, f16 ~~45,499 7,236 2,93 3,229 1963 2, 200 - 1964 67,097 59,056 2,445 3,345 5,790 1964 3,900 28 18 46 1965 65,745 56 ,.234 28 ,69 5,757 195- 38 2 5_6 2 84 1966 63,219 53,317 2,492 3,189 5,681 1966 3,816 56 34 90 1967 61 ,817 33 2,523 3,128TÖ,651 1967 3,T/6 8I 40 12 1968 60,384 47,226 2,530 3,060 5,590 1968 3,678 82 .39 12:1 1969 58,944 44,026 2477 2,992 5 1969 3,596 82 39 1T1 1970 57,607 40,836 2,433 _i3 _ 2,924 5,357 1970 3,514 82 .38 120 1971 56,264 37,541 2,435 2,858 5,293 971 3,432 82 39 12 1972 54,919 34,139 2,412 2,790 5,202 1972 3,350 82 39 121 1973 53597 30,647 5,0 79 2,51 7,640ö 17-9 3 TM36 - ö z39 - =l- 1974 43,256 24,481 1,718 2,332 4,050 1974 3,186 126 38 164 1¯97 45¯¯2714 21,4 4~,78 ¯ , 1~ ,94 4 19 7¯5¯ 3,6 ¯26 ¯ 3 1976 37,814 15,704 1,242 1,996 3,238 1976 2,934 126 35 16.1 Publicly-issued bonds U.K. Government loans
1962 52,761/2 46,30B/2 1,975 2,729 4,704 16 E,¯T ¯2 1963 44,650 37,988 1,948 2,770 4,718 1963 5,311 288 . 223 511 2 1964 68,174 50,133 2,125 3,108 5,233 T4-¯ ¯T 3 292 219 51T 1965 17,142 4/31 2 136 3,26 5,162 1965 4,731 296 215 511 1966 54,968 45,066 2,136 2,944 5,080 T96 4~435 30U 711 5T1 19 67 3,922 42,435 2,13 292 7JMA 1967 4,135 305 206 511 1968 52,876 39,718 2,136 2,820 4,956 1968 30 312 01 513 1969 T1,3 3,912 2,136 2,757 4,893 1969 3,518 209 196 405 1970 50,784 34, 13 2,136 2,696 4,832 T97~ 3-309 715 190 405 184 401 1971 49,738 3,01~5~ T3- ¯2,E35~-4TT7T 1971 3,094 217 7¯ ¯372 1972 48,692 27,912 2,136 2,573 4,709 T-71 22T7- ¯T94 113 171 284 1 973 47,646 24,696 ¯ 88 21,235- 1973 2,683 1974 37,500 18,725 1,472 2,130 3,602 14, ZU 164 7- 1975 2 ,450 128 156 _ 284 195 97536,904 16,164 4i,5 3- 1 1976 32,558 10,448 980 1,813 .2,793 T7¯ 2,322 136~ 148 ~24
- includes service on all deib shown in TiDe i prepared ay 29, 1963. 2 Amounts outstanding are as of June 30, 1962; payments are for the full year. Statistics Division Includes an AID loan of $2,200,000 for which alternate terrs are given based on IBRD-Econom.c St:f the future establishnent of the Water Authority. Projecticis for this table May 29, 1963 assume the establishment of the Water Authority. Table 3
Population
Population Growth (thousands) Population Natixral Net Net % Inerease at Year Tncrte,ase Emigration Increase Over Previous Year End of Year
1953 35.7 4.3 31.4 2.3 1,417
195h 37.3 8.h 28.9 2.0 1,Lh6
1,955 Kn.), 18.9 2 1.5 1.5 1,468
95g3.5 17.6 25.9 1.8 1,94
1Q957 )6.3 152 31.1 2.1 i,52
1958 ,7.8 s.2 39.6 2.6 1.,65
I19[9 hR. i3. 3i.g- 2.2 1,60o
1960 56. 30. 2l5 .61,2
1961 52. 38.5 il. 0.9 1,639
IOK9 C521 2 87 234. 1.,
Source: Economic Survey Jamaica 1960, 1962, Government of Jamaica. Table 4
Industria. Orjijin of Gross Domestic Product at Factor Cost
1953 1954 1955 1956 1957 1958 1959 1960 1961 1962
Total Product (i million) 106.7 119.7 136. 8 . r, 191.9197 212. 230.8 2),.3 2R2.5
(P3er cn fTtl
Agr,ictue-LForestry 1 4-1 4 and Fishing 21.2 20.1 19.2 16.2 13.8 13.5 13.3 12.3 12.7 12.5
Manufacturing 13.8 14.0 13.4 13.1 12.7 12.5 13.2 13,4 13.3 133 Construction and InEtlation 9. 6 8.7 9.5 12.7 13.6 12,3 ,1.8 1 1 1 10.8 Public Utilities 0.7 0.8 0.7 0. 0.9 1.0 1.0 1. 1.1 J. Trersportation, Com- rjnjcation & Storage 6.6 6.9 7.0 6.6 6.4 6.4 6.6 6.5 6.9 C.9 Wärrolesale and Retail Distribution 17.2 16.8 16.8 16.2 16.6 16.8 16.9 17.1 15.8 i5.h Barking, Insurance ancd Real Estate 2.9 3,6 3.7 4.7 4.7 5.9 6.1 5.9 5.9 6.1 Cners-hip of Dwellings 4.9 4.8 4.4 3.9 3.3 3.3 2.9 3.0 3.2 3. 4 Central and Local Government 6.5 6.3 6.6 7.1 6.5 6.6 7.3 7.5 8.0 8.4 Miscellaneous Services 14.2 14,1 13,8 13.2 12.6 12.9 13.0 13,2 13.3 13.3 -i / Tota1:1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1/ Due to rounding, fijures do not always add up to 100.0.
Source: Economic Survey Jamaica 1959, 1962, National Accounts 1958, 1959. Table 5
industrial Origin of Gross Domestic Product at Factor Cost (Current Values: L million)
1953 1954 1955 1956 1957 1958 1959 1960 1961 1962
Agriculture, Forestry & Fishing 22.6 2h.O 26.2 25.7 26.6 26.8 28.2 28.6 31.0 31.6 Mining 2.6 4.8 6.5 8.7 16.9 17.5 16.6 19.9 21.0 22.1 Manufacturing 14.7 16.8 18.3 20.7 24.4 24.9 27.9 30.8 32.6 33.7 Construction and Installation 10.3 10.4 12.9 20.2 26.1 24.5 2.9 26.2 27.4 27.3 Public Utilities 0.8 0.9 1.0 1.2 1.7 1.9 2.2 2.3 2.6 2.8 T:-ansportation Com- mTn-nicqtion qnd Storage 7.0 8.3 9.5 10.5 12.3 12.8 13.9 15.1 16.9 17.5
.9istribution 18.3 20.1 22.9 25.7 31.9 33.3 35.8 39.4 38.6 38.8
iteal Estate 3.1 4.3 5.1 7.4 9.0 11.7 13.0 13.5 14.4 a5.4
Dwellings 5.2 5.7 6.0 6.2 6.4 6.6 6,6 7.0 7,8 3.6
Government 6.9 7.5 9.0 11.3 12.4 13.1 15.4 17.4 19.5 21.1 l-Lsce-LLaneotis Services 15.1 16.9 18,8 20,9 24.2 25.6 27.6 3015 32.5 33.5
Total!-/ 106,7 119.7 136,4 158.5 191.9 198.7 212.1 230.8 244.3 252t5
li Due to rounding. figures do not always add up exactly to total.
Source: Economic Survey Jamaica 1959, 1962. National Accounts 1958, 1959. Table 6
Industrial Origin of Gross Domestic Product at Constant Factor Cost1/ (1956 Prices: 4 million)
1953 1954 1955 1996 1957 1958 1959 1960 1961
Agriculture, Forestry and Fishing 23.6 25.3 26.5 25.7 26. 26.8 29. 28.3 29f1 Mining 2.9 5.9 7.0 8.7 14.3 1h.7 l.h 17.7 18.7 Maufacturing 15.h 16.9 19.0 20.7 23.7 23.8 26.6 283 29.7 Construction and I t a 106 i 11.1 1.. 2O0. 9.1 91 0 99 9 9 3. 94 Pu-lic Utilities 0,9 1.0 1.1 1.2 1.4 1.5 1.7 1.8 2.0 Trýan Sp ortation,1- Cowunication and 7rg.y7a. 10.5 12. 12. 124 1 l Uholesale and Retail isitn. I 22.3n7 2o.3 25.7 30. 31 1 . 8 3. 3. n 3 .7 Eanking, Insurance and ReaL Estate 5.u U.4 7.2 7.4 u.3 9.3 9.8 7.3 . 0wnrship of Dwellings 5.4 5.7 6.0 6.2 6.2 6.1 58 5.6 58 Central and Local Government 9.0 9.7 9.2 11.3 12.4 12. 13.7 15.4 17.1 Miscellaneous Services 15.4 17.4 19.2 20.9 22,5 23.5 2h.8 26.3 26.9
Total 117.2 130.4 143.5 158.5 181.5 18h.0 195.0 206.9 2123
1; Data lor 1962 are not available.
So,rce: Economic Survey Jamaica 196:2. National Accounts 1958, 1959 and 1960. Table 7
Gross Domestic Exnenditure L milhion)
1953 195b 1955 1956 1957 1958 1959 1960 1961 1962
1. Private consumption (subsistence, rent and farm nroducts, plus monetary con- sumotion 97.3 106.6 121.0 131.3 145.8 155.6 169.8 184.1 192.1 199.2 2, Government consumo- tion 10.7 11.3 13.2 16.2 18.0 19.1 21.9 24.8 26.1 28.7 3. Gross fixed capital formation 14.2 17.3 21.5 38.8 52.1 87.h L6.1 50.7 L8.3 45.2 4. Increase in stocks 1.0 1.5 3.1 2.3 5.2 3.5 5.0 3.0 3.5 3.9 5,. Exports of goods and services 31.b 37.0 L1.0 45n9 60.2 61.2 64.4 75.5 89.4 38,7
Total 15L.6 173.7 199.8 235.1 281.4 286.8 307.2 338.1 359.4 365.7
6. Less: imports of goods and services 38.8 6lt.3 52.1 63.7 75.0 73.3 73.3 89,1 95.9 97.0
Expenditure of Gross Doiestic Product 115.8 129.b 1L7.7 171i4 206.4 213.5 228.9 249.0 263.5 263.7
Percentages
1. Private consumntion 84.2 32.6 32.2 76.6 70.6 72.9 74.2 73.9 72.9 7L.1 2. Government consump- tion 9.2 3_7 8.9 9.5 8.7 9.0 9-6 10.0 9.9 10.7 3. Gross fixed capital formt.n 12? 1(, lb 2 29.39 222 201 2nlAi 1 16 R i. Increase in stocks 0.9 1.2 2.1 1.7 2.5 1.6 2.2 1.2 1.3 1.5 Rplnce of exncrts and imports of nods and service -6.6 -. 9 -7-8 -i0h -7-1 -C7 -6 7 -U -29 -).1
i-ure 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 10010
Source: Economic Survey Jamaica 1962. National Accounts 1958, 1959 and 1960. Table 8
Gross Domestic Fixed Capital Formation by Sectors (Current Values: L million)
Sectors 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962
Agriculture ...... 3.5 L.9 4.2 b.6 5.0 4.7 3.9
Mining ...... 11.6 10.7 4.6 1.6 1.8 1.3 2.0
Manufacturing ...... 4.1 4.5 5.5 5.0 5.3 5.2 5.0
Public Utilities . .. . 0.6 0.7 1.L 1.8 1.7 2.h 2.3
Government .. .. 2.8 5.6 4.9 5.6 5.3 5.5 5.1
Re.qidential Dhqellings ...... 4,0 5.3 6.4 7.6 8M6 7.3 5.5
Ot,hn': Sectors1/ ...... 12.2 20.L 20.4 19.9 23.0 21.9 21.h
Total 114.2 17.3 21.5 38.8 52.1 47.14 461 50.7 48.3 45.2
1/ Transportation, Distribution, Construction of non-residential buildings and insballations, and Services.
. Not available.
Source: Economic Survey Jamaica 1962. Table 9
Production
Banana stems offered Rum to (000 Bauxitel/ Alumina Gvesum Sugar Banana Bd. liquid (000 tons) (000 tons) (000 tons) (000 tons) (million) gals.)
1953 1,220.0 .. 75.0 330.0 11.2 1,262,,
1554 2,065.0 .. 165.0 363.0 12.7 1,276.2
1955 2,665.6 .. 80.4 396.6 12.5 1,392.2
1% 3,204,$ .. 187.9 356.3 13.3 2,087,5
157 4,6'34.2 ., 235.1 372.8 13.4 2,547.5 1958 5,781,4 .. 599.6 335.0 11.6 2,485.6
1959 5,181.1 418.5 468.2 376.0 11.7 2,19.7 1960 5,779.2 651.6 245.8 424.3 11.5 1,615.5
1961 6,541.0 688.1 223.0 439.6 11.4 1,731.3
1962 7,519.0 623.0 225.3 L34.0 11.8 1,524.0
.Lf~ ~ ~ I A.&....VJAU 0UU~.jU 11 U-Ly P %I.. U0 0 LL A I IV £ LU.III.L1L0 *
Abstractnouvc of StUatUtco ecember 19589,1, and 196U Quarterly Abstract of Statistics, March 1962
ElconomicULU~USuve Taa L.cai 0 4'.J Price Index - Kingston Area
Cost of Living riiluOLUy k-e'g'5 4=10o)
H."L UELIMS~ O£UU
1954 99 99
1956 101 102 191 110 19 8 110 112 1919 11 116 1960 117 118 1961 124 127 1962 126 126
Rural Areas
1953 '100 00 1954 98 96 19 6 j 100 100 1956 :3/ - - 1957 102 1Q3 1958 106 109 1959 108 110 1960 110 112 1961 117 120 1962 120 122
1/ Converted from old Cost of Living Index. 2/ Converted from Sugar Workers Index. 3/ No computations made.
Source: Economic Survey Jamaica 1957, 1960, 1962. O Table 11
mopeyßupply, 1953-62
(Money Supply, Commercial Banks Total Deposits and Advances) ( illi-on )
Total Currency Currency Total in with Demand Money Bank Bank Deposits Advances End of: Circulation Public Deposits Supply 14.o 1953 ... 12.1 .. 21.0 12.6 1954 .. .. 13.9 .. 23.h 15. 2 1955 .. .. 14.5 .. 2,8
1956 .. .. 16.0 .. 28.7 15.8
1957 8.5 5.8 20.7 26.5 36.3 23.9 29.8 1958 8.7 6.2 21.3 27.5 38,.1 41.8 34.6 1959 10.0 7.3 23.2 30.5 1960 10.1 7.5 24.0 31.5 Lh.0 39.3 42.4 1961 10.6 8.7 19.0 27.7 42.6 1962 11.4 9.0 22.8 31.8 50.L 40.4
.. Not available
Source: Bank of Jamaica. Table 12
Banking Statistics
(Commercial Banks Consolidated Analysis of Assets and Liabilities) (£ million)
Assets
Balances Balances Loans with Bank with Banks and Treasury Other End of: Cash of Jamaica Overseas Advances Bills Assets _Tot:l
1953 15 - 3.3 14.0 - 4.4 23ý2 195 1,4 - 4.5 12.6 - 7.9 26J, 955 1.7 - 3ý2 15.2 - 7ch 27-5 956 2.3 - 5.5 15.8 - 8.2 31.8 r357 2.7 - 6.5 23.9 - 9.0 42,1 9 8 2.6 - 1.3 29.8 - 10.5 h.3 1959 2.9 - 1.5 34.6 (a) 10.7 49.6 1960 2.7 - 2.0 39.3 (b) 10.8 5.8 1961 1.8 2.5 0.5 42.4 1.7 18,2 67.2 1962 2.2 3.5 2.9 10.1 5.1 16.1 70.2
(a) £2,000 ;b') £60,000
Liabilities
Bances Held for T) e p o s i t Banks Other End of: Demand Saving Time Total Overseas Liabilities Tetal
1953 12.2 7.1 1.7 21.0 LO 1,2 23.2 1954 139 7.Q 1,A 23 0,2 2.8g 2n- 1955 14.5 8.5 1,8 24.8 04 2.3 27Åi 19 160 10.5 2.2 28.7 .7 2.4 328 1957 20.7 12.9 2.7 36.3 2.6 3.2 42.1 1958 21.3 14.5 2. 38.i1 3329 0 .3 1959 23.2 16.2 2.5 41.8 4.5 3,3 49,6 199)6 2 17 . 9 )J.n 7.7 3.1 sR 1961 19.1 18.7 4.8 42.6 15.8 8.8 67.2 196 22,1 2n. 6. . 1-.8 90 701 '2
Surce: "ank- of Jamaica Table 13
Exernal As,ets and Liebilities ... m ill i on ) External External Assets Liabilities Govt. Other Other Commer- End of Currency Comrercial Savings Govt. Institu- cial Govern- MPrch Reserves Banks Bank Funds tions Total Banks ment Total
1953 h.2 3.5 1.9 5.8 0.9 16.3 0.7 7.8 8.5
195L 5.1 h.8 2.2 8.5 1.0 21.6 0.7 11.5 12.2 1955 5.5 7.6 2.2 8.5 1.0 2.8 0.9 11.h 12,3
1956 6.1 7.2 2.0 7.2 1.2 23.7 1.1 11.3 12.4
1957 6.9 8.6 2.2 7.4 2.5 27.6 1.1 11.5 12.6
1958 6.8 6.1 2.1 9.2 2.8 27.0 4.0 11.3 15o.
1959 6.4 6.2 2.1 17.0 2.9 34.6 4.8 19.8 24.6
3960 7.0 L.2 2.2 15.6 2.9 31.9 6.2 18.h 26.6
1961 6.8 6.5 1.9 16.6 3.2 35.0 8.6 21.2 29.8
1Q92 i.ä 2. 1. 9 12.1 2. 37 13.6 19.7 33.3
1962 (Dec.31) 13.3 4.8 2.0 10.3- 2,5 33.h 10.8 20.6 31.4
a/ Held by the Cuirrpnc Divis-i on and Banki n Divi si on of the Bank of Jamaica. Uhen the Bank of Jamaica coimmenced operations in 1961, the external assets held by the Accountant Gener1 were transferred1 to the Curncy Divisi on of the Bank of JamKica.
ource: Financial Statistics Digest Bank of Jamaica. Table 14
National Saving Account (b million)
Source
Business Gross Saving
Capital Government Personal Undistributed Consumntion Surlus (+) Year Net Saving Corporate Profits Allowances or Deficit(-) Total
1953 o.h 1.5 6.8 +1.8 10.5 195 0.7 2.0 .5÷ 1955 o.6 2.2 9.3 +3.1 ii? 1956 .5 h.9 10.6 +.8 1957 11.2 7.0 1h.1 +8.7 bo.9 1958 4.3 7 . i ÷.3n 3 1959 3.6 8.1 15.3 +7.0 34.5 -1 n- ,7ncý- 7 1. +6 A ,, -1 196j.6 7 .- -L9.1 . ÷ . I . . 1961 5.2 10.5 18.3 +8.4 h2. I
.Li-Ls)O-s4 U.LUll
inance1LI o.f ross '4aWlueJof SU.L us(+) kjl.r Business Gross Fixed Capital For- Physical Deficit(-) on
Fixzed Capital~ mation in1 Non-I-Cor- Chage in Curren1 Acco.'unt Year Formation porate Public Sector Inventories With Non-Residents Total
1953 12.2 2.0 1.0 -Li.7 10.5
1955 19.6 1.9 3.1 -9.3 15.3 1956 36.0 2.n . -16.9 2. 1957 46.5 5.6 5.2 -16.4 4o.9 1958 42.5 4.9 3.5 -14.9 36.0 1L959 40.4 5.7 5.0 -16.6 34., 1960 h5.L 5.3 3.0 -16.6 3 1961 42.8 5.5 3.5 -9.4 42.4
Source: National Accounts 1958, 1959 aod 1961. Domestic Exports, 1953-1962 ( i .%
(valuedJ f. *JJ .'
.UWU1953 19e 195 19"6 195 -ýuL 195 U 196U7 1961-j) 96
Bauxite ~ 2.U 3.1 3.9 4.6 9.60 12,6 11.0 10J.9 .1J 15.7
Sugar 10.1 11.0 10.8 1 uLL.6126, 1o.4 1.7 130 1.
Bananas 4.6 5.2 5.o 0.1 0.0 5.o . 4.0 4.9 4.2
Fruit Juices and Products 1.0 1.1 1.1 1.3 1.h 1.6 1.3 2.0 1.7 1,$
Pinerto 0.6 0.8 0.7 1.2 0.8 1.1 0.9 0.9 1.5 1.2
Rur. 0.9 0.9 1.0 1.3 1.h 1.3 1.42 1,3 11 1,1l
Clothing - 0.1 0.1 - 0.1 0.2 0.3 1.0 1.1 2 ,2 Molasses 0.3 0.3 0.5 0.3 0.3 0.h 0.5 0.5 0.9 0.3
Cocoa 0.6 1.3 0.8 0.5 0.5 0a6 o-5 0.7 0.5 0.5 Tobacc:o 0.5 0.4 0.4 0.4 0.h 0.3 0.3 0.4 0.4 ).5
Citrus 0.2 0.1 0.2 0.3 0.2 0.2 0.1 0.2 0.3 0.h
Coff±ee 0.6 1.0 1.1 1.1 0.6 o.h 0.h 0.3 0.3 0.3 other 2.3 1.7 2.0 2.7 2.9 3.6 2.8 3.2 3.4 _hL6
Total 214.5 29.9 32.4 38.2 49.5 46.8 45.3 55.8 60.6 62.1
- Less than ;50,000
Source: External Trade of Jamaica, 1955. 1957. 1959, 1961, Government of Jamiaica. Table 16
Imports by Standard International Trade ClPßification(c.i.f. (L million)
1953 195b 1955 1956 1957 1958 1959 1960 1.961 1962 Fcod 7.8 8.0 9.1 10.1 11.5 13.3 lh.6 14.6 lh4h 16,2
Beverages and 1obacco 0.6 0.7 0.9 1.1 1.3 1.5 1.6 1.8 1.6 1,8
Crude Materials 1.8 1.4 1.7 2.1 2.7 2.2 2.7 2.8 2.3 2.5
Mineral Fuels, Lubricants, etc. 3.2 3.8 h.0 4.7 6.1 5.7 6.6 6.4 7.7 7.h
Animal and Veegetable oils 0.3 0.3 0.3 0.5 0.5 0.6 0.7 0.6 0.5 o. chemicals 2.3 2.7 3.6 h.5 h.8 5.2 5.8 6.2 6.2 6.5
Manufactured Goods 9.6 10.2 13.0 15.6 19.1 16.3 16.3 19.6 19.h 20.1
Nachinery (not ectric) 3.1 3.2 L,.h 7.7 .0 61 6.1 ?. 7 8.0
Machinery 1.7 1.2 1.8 2.5 2.9 2.9 3.0 3.8 3.6 3.7
Transport Equip- ment 2.6 2.5 3.2 5.1 L.9 5.0 5.1 7.5 5.3 6,3 Ni sc. Manufactured Goods 2.h 3.2 3.6 1.3 h.8 5.7 5.9 6.9 6.8 6.5
. Commodities 0.1 0.1 0.2 0.1 0.1 0.2 0.2 0,2
Totala/ 35.5 37.3 65.7 58.3 66.7 64.6 68.6 77.5 75.4 /9.6
1/ Less than b50,000.
2/ Due to rounding, fi-ures may not add up to totals.
Source: xternal Trade of Jamaica, 1955, 1957, 1959, 1961. Table 17
Balance of Payments, 1953-1962 (1 million)
1953 195h 1955 1956 1957 1958 1959 1960 1961 192
I, CURRENT ACCOUNiT L. Imports 35.6 37.4 h5.7 58.4 66.8 64.7 69.2 77.6 75.5 79.7 2. Exports 25.9 31.4 34.4 h0.7 50.4 48.0 46.9 58.8 63.6 66.6
Net Visible Trade -9.7 -6.0 -11.3 -17.7 -16.4 -16,7 -22.3 -18,8 -11.9 -1 .
Invisibles (Net) 3. Foreign Travel +3.9 +4.7 +5.6 +4.6 +5.1 +7.b +8.9 +12.0 +12.0 +10.9 4. Transportation +1.1 +0.4 +1.0 +1.4 +2.1 +1.8 +1.6 +1.7 +0.9 +2.5 5. Insurance -0.8 -0.7 -1.1 -1.3 -1.5 -1.7 -2.3 -3.1 -2.3 -3.7 6. Interest, Profits and Dividends -2.2 -2.8 -3.2 -4.1 -4.2 -5.4 -6.4 -8.8 -3,9 -9.0 7, Govt. Transac- tions +0.6 +0.8 +0.6 +0.6 +0.8 +0.8 +0.8 +0.9 +0.5 +0.3 8, Miscellaneous -0.1 -0.3 -1.1 -1.0 -2.6 -2.1 -1.8 -1.7 -1.6 -1.2
Unj-lateral Transfers
9. Private +1.8 +2.0 +2.7 +3.6 +4.6 +5.1 ,) .*' ,, 2 - 10. Official +1.2 +1.3 +0.6 +0.9 +0.5 +0.4 '' ''') '") Net Invisible Trade +5.5 +5. 4 +5.1 +4.7 +)4.8 +6.3 +6.1 +8.2 +7.6 +6.9
Balance on Current Account -h.2 -o.6 -6.2 -13.0 -11.6 -10.h -16.2 -10.6 -h.h -6.2
II, CAPITAL ACCOUNT
Long-term Canital 1. Official Sector -1.5 +3.4 +1.8 +2.3 -2.2 2. Banking Sector +0.1 - +0.5 +0. -0.1 3. Private Sector +9.4 +[.3 +3.5 +1.0 +3.5
Sub-Total +8.0 +7.7 +5,8 +3.7 +12
Short-term Capital ). Offi S ec tr +0. .2 -1. +1.b +1 1 5. Banking Sector +1.5 +5.9 +1.0 +2.8 +2.3 6. Prt cr ÷++ . +i . ÷. ÷3.3 ÷2.3
ub v-al +2.8 4-9 4-) '7 I.R.7
IdentifiePe- Capital Movement +15.3 +10.5 +8.6 +8.4 +9.9
Balancing Item -3.7 -0.1 +7.6 +2,2 -5.5
Source: The Balance of Payments, Jamaica, 1958 and 1961, Government of Jamaica. Table 18
Price, Vclume and Value Indices and Terms of Trade, 1953-1961 (Base Year: 1954 = 100)
Price Indices Imports Exports Net Terms of Trade 1953 103.3 98.5 95.h 1954 100.0 100.0 100.0 1955 110.1 107.7 97.8 1956 117.h 107.3 91.L), 1957 120.8 123.1 101.9 1958 123. 11.2 92.5 1959 126.2 111.9 88.7 1960 125.9 110.7 87.9 1961 131.8 111.0 84.2
ImportsIndcesof E t Inde n-f Volume Value Volume Value
1953 100.7 94.5 86.o 83.3
1955 127.1 126.8 1c5.1 109.8
1957 163.4 184.5 137.9 168.3 1 -1 177i 13 I n-7. . 1959 181.6 190.5 135.b 153.4 203. 21 6.9 6.2n -i6Q/,.21 -L n16u C-U3U '::J.U - -LIJ t,O -LU,,)r 1961 189.0 211.4 177.5 200.h
.L/ '11,5 .1Z;V- Z-j-LL U.j. Lýic: d.A. ýL UCILLJ1LL..L L] L iI. u U ii ll Lk:V-L± ±-Le
1/ Te reisinofthe auxte -ningconractland' th'e resultn reDvisn upward of recorded prices of bauxite and alumina came into effeet in January, 195-'.1' uward reVLI Uj. traUt vaLuati pJices affetbs the terms of trade indices as if there had been a real increase of ex- port prices.
Source: The Balance of Payments, Jamaica, 1958 and 1-6L' Table 19
Government Revenue, Fiscal Year Ending 1-arch 31, 1955-1963
ORDINARY REVENUE Å T axas:.i nn Customs 5.8 6.8 8.1 9.5 9.6 11.9 12.9 11.8 12.9 R-cise 3.6 3.9 4.3i. .4 4.5 4.7 5.5 5.6 Income Tax 3.9 4.4 5.0 7.8 9.7 9.6 10.3 12.9 15.1 Land&PropertyTax n.i n.i M. . n.i n n.i n. n Death Duties 0.2 0.2 0.2 0.2 0.1 0.4 0.2 0.4 0.2 S+ -- e n. n.i n. 1. n~. 1, c0n4 Stam Duties . . .4A. -.i 0.5n V.6% .J. M,otor Vehicle Ticences n.0.1 n. .6 n.5 0.7 0. 1.0 1.0 Other Licences 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 Ee rtEainmen t Tax Vo.1 _V. .5 -. 1 u 2r.2 _ u.. u u3
TotaL Lax Revenue x4.. .U.U _O.U 2_.. 2 2U._. )U.3-L 3O.-
n. N4on-IkT'ax Revenue Post Office ~ 0.5 0.6 0.7 0.7 0.7 0.8 0.9 1.0 1.1 Reimburemnent - Public Debt Charges o.5 o.6 0.7 0.5 0.5 0.6 o.6 o.6 0.7 Departmiental ard other iiscå./ 1.1 1.0 1.3 1.4 1.4 0.9 2.0 1.5 1.3 Total Ordinary Revenue 16.2 18.2 21.3 25.8 27.8 30.4 33.6 36.0 39.2
CAPITAL REVEME Royalties 0.1 0.2 0.2 0.7 0.8 0.7 0.8 0.6 1.2 Land Sales 4/ 4/ 4/ 4/ 4/ 0.2 0.3 0.3 0.2 Loan Repayments 4/ 4/ / / 4/ 0.2 0.1 0.2 0.2 C.D. & W. Grants 0.4 0.4 0.5 0.6 0.8 1.3 0.3 0.1 0.4 Extraordinary Receipts 0.4 0.3 0.5 0 0 0 _0.1 4/ 4/
TOTAL REVUNUE 17.1 19.1 22.5 27.1 29.4 32.8 35.1 37.2 b1.2
1/ Actual figures. 2/ Consolidated Fund Receipts. 3/ From 1959/60 certain items under this heading are shown as appropriations against recurrent expenditure. 4/ Less than L50,000.
Source: Estimates, 1955/56 - 1963/64, Government of Jamaica. FUNCTIOI L C I ICATION OFEXfNDITI?r ESTTMA'/r:S Fb 3 IEE CU1 REliI ACCO)UN\T 195/½ to 261j
1958/59 1959/60 1960/61 1961"62 1962/63 26000 '000 l'000 000 0000
A. GENERAL SERVICES General Administration State Services 553 620 725 782 802.7 Fiscal Services 1,n)0 1,08 1,103 1,16> 1,182 .1 Foreign Services ------62,L.0 Economic Regulation 86 103 106 117 129.1 Other General Services 1, 108 895 1,017 1,095 986. S176 2,951 3,158 3,72.¯6
Defense 16 -- -- 153 1,119.1 Justice and Police 2,140 5,073 2,338 5,004 2,362 5,313 2,681 5,992 3,220.3 8,064
B3. 00MkUNITY SERVICES Roads and. Waterways 1,569 1,782 2,043 L,986 2,080.9 Water Supplies 23 36 36 >4>4 49.7 Other Coimunity Services 22 1,614 53 1,871 39 2,118 47 2,077 469 2,177.5
C. SOCIAL SERVICES Lducation 3,853 >4,2>47 14,741 5,315 5,706.6 Health 2,880 3,422 3,541 4,001 4,384.1 Social SeCurity and Special Welfare Services 1.37 479 571 727 725.6 Other Social Services 335 7,505 420 8,568 387 9,240 66 10,509 749.9 11,566.2
D. ED. NOMIC SERVICES Agriculture L,689 1,847 1.876 1937 1,988.2 1uel and Power 46 55 73 93 92,,4 lfineral Resources 44 68 70 67 62.5 Tran,sport, Storage and Comuncations :L,>5 1,789 1,630 1,830 2,157.6 Otier Economic Services 209 3,h33 251 >,010 297 3,946 309 h,236, 36 0 ,666.7
E. UNAl,LOCATED EXPENDITURE
P',blic De:t Charge- 1,7>46 2,259 2,564 2,960 2,958, 4 Loc al Au½bwrities i,519 1, 868 2.071 2,>41 2,82L 3 thier Expenaiture 835 4,623 932 6,063 981 6,615 1, 100 ,512 1 1.8 7,503.1 FUNCTIO1NAl, CLASSIF1ICATI01 OF EXPE lnITUJ ~TEj TEIS F , Table 21 C'U¯APITAL ACCOUNT 19~5, t 196/6 1958/59 1959/60 1960/61 1961/62 1962/63 15'000 45 i 000 L'1 000 :61000 '000
A. GENERAL SERVICES State Services h33 385 356 287 192 Fiscal Services 2h 47 16h 81 260 GenLeral Economic ReguLtioI 250 250 300 -- -- Other General Services 317 419 3114 377 275 1L,02h 1 1 1,134~ 5 727 Defense ------74 Justice and Police 209 1,233 157 1,258 110 1,244 83 828 109.5 910.5
B. COIMAUNITY SERVICES Roads and Waterways 1,227 ,134 1,086 1,403 1,237.6 Water Supplies 673 751 807 1,155 612.1 Ottier Conmunity Services 536 2,436 767 2,652 617 2,510 1,507 4,065 1,097.4 2,947.1
0. SOCIAL SERVICES Educatin 945 ,082 1,060 1,010 730.8 Health 643 566 577 514 338.5 Social Security and Special Welfare Services 62 29 >47 60 60.6 Other Social Services 311 1,961 561 2,238 276 1,960 1,278 2,862 888.7 2,018.6
D. ECONOMIC SERVICES Agriculture 2,120 2,310 1,922 1,760 2,491.9 Fuel and Power 50 125 1014 50 61.5 ineral Resources 15 ------Transport, Storage and Commiunications 2,016 1,002 1,184 708 204.3 Other Economic Services 1,279 5,48o 1,3 4,783 1,169 4,379 761 3,279 475.1 3,232.8
E. UNALLCCATED EXPENDITURE Local Authorities 293 2LO 200 480 98 Other Expenditure 51 344 _401 641 31_ 234 167 647 57 1,55.0
Total Capital Provisions -- 11,573 -- 10,327 -- 11,681 -- 9,264.0
Total Budget Pr3v-isions (Recurrent and Capital) 33,702 37,089 37,559 42,007 03,239.5 Table 22
Development Plan 1963-1968 Capital Expendlitures (L million) Total Expenditure Sub- 1963/64 1964/65 1965/66 -L966/67 1967/68 1963-1968 Totals 1. ECONOMIC SERVICES Ä-ricultre 2.8 4.5 5.1 5.4 5.6 23.4 Industry and Trade 0.5 0.4 0.5 0.5 0.6 2.5 Tourism o.h 0.6 0.6 0.7 0.8 3.1 2 9.0 32 2. INFRASTRUCTURE KJad7 End~E ridges 1.6 1.5 1.5 2.0 2.2 8.8 Ports and Harbors - - 0.1 - - 0.1 Civil Aviation 0.5 0.5 0.5 0.2 1.7 Railways - 0.3 0.3 0.2 0.2 1.0 Post and Telegraphs 0.1 0.5 0.1 0.1 0.1 0.9 12.5 1 3. SOCIAL SERVICES Water SuppliesY 1.8 3.0 3.2 3.5 3.5 15.0 Health 0.3 0.h 0.8 0.9 0.9 3.3 Education 1.0 1.4 1.5 1.5 1.5 6.9 Ho1.sing , 2.3 1.h 1.5 1.5 1.6 8.3 Conrinity Development- 0.1 0.2 0.2 0.2 0.1 0.8 3h.3 4. MISCELLANEOUS 37 «Ublic Wok 1.0 1.2 1.3 1.2 1.1 5.8 Public Buildings 8 0.9 0.9 0.8 0.6 h,o Financial Institutions 0.3 0.2 0.3 0.3 0.3 1.h Local Authority Services 0.2 0.6 0.7 0.7 0.7 2.9 Planning/ esearch; Hanpower 0.3 0.3 0.3 0.3 0.3 1.5 .15.6 17 5. GRAND TOTALS 13.5 17.9 19.h 20.3 20.3 91.h 7f71ncludes 75.67million for HarkErs-Fal7ultipurpose project (miainl.y domestic water supply for Kingston). 2/ Includes various expenditures on youth development, sports, art, etc. 1 Inc Ludes 9.0 million for the Sandy Gully drainage schemes. / Manpower l includes various expenditures on labor research, training, etc. Source: Devolopment riar 1963-1968, Governme3n of Jriica. Table 23
Development Plan 1963-1968 Sources of Finaice (L million)
Total As % Of 1963/6h 196h/6, 1965/66 1966/67 1967/68 1963-68 Total Expnditure
1. Total Expenditure 135 17.9 19.4 203 20,3 91h 100
2. General Revenue Contribution 3.6 3Q6 3.5 3.5 3.5 1.77 (19.4)
3. Irternal Loans 2.5 2,8 3.9 3.9 h.6 17.7 (19.4)
4. External Iman e2 55 6.5 5.0 h.4 256 (28.0) 67 5. 5. Totl 10..3 11.9 39 12.h 12.5 61.0
6. Balance to be met from G"overn- men'-to-Governmnt "Sof-U Loans 3S2 D 6cPa 5 7.19 30vf 33
Source,: Development Plan 1963-1968, Goverrnment of' Jamnaica, 协口ULY 1963 布 19RD一1217