The objective of this report is toidentify the main obstacles to longer term growth inJamaica.The report takes a holistic approach, examining alarge set of economic and social factors that may behindering growth and filtering them through a growthdiagnostic analysis to narrow the focus to those thatconstrain growth the most. Building on the results of thegrowth diagnostic analysis, the report then discusses eachkey obstacle and identifies possible reform scenarios tounlock growth in Jamaica. The report also examines how thecountry might further accelerate growth through privatesector development. This Country Economic Memorandumassesses the key causes that have stalled Jamaica'seconomy over the past four decades and presentsrecommendations to unlock its growth potential. There is abasis for optimism in that Jamaica has had politicalstability, high rates of private investment, significantreduction of poverty in rural and urban areas, and improvedincome distribution. Nonetheless, this report shows that,since independence in 1962, long-term economic growth hasbeen disappointing and underperformed most other countries.The findings of this study indicate that Jamaica'sdisappointing economic performance is traceable to lowproductivity caused by (i) deficiencies in human capital andentrepreneurship that are due to high migration rates and todeficiencies in the quality of education and trainingoffered to the labor force, among other factors, (ii) a highrate of crime, and (iii) distortionary tax incentivescombined with 'enclave' development that does notspill over to the rest of the economy.
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