This case describes the economic development problems of the small Caribbean island nation of Jamaica over most of the last half century faced. The Jamaican economy was relatively strong growth in the 1960s but stagnated in the 1970s. By the end of the decade Jamaica has been forced to the International Monetary Fund (IMF) to enable the balance of payments support. During the 1980s and early 1990s, the unpopular policy conditions, the Fund made with IMF loan programs combined a lightning rod for c … Read more »

This case describes the economic development problems of the small Caribbean island nation of Jamaica over most of the last half century faced. The Jamaican economy was relatively strong growth in the 1960s but stagnated in the 1970s. By the end of the decade Jamaica has been forced to the International Monetary Fund (IMF) to enable the balance of payments support. During the 1980s and early 1990s, the unpopular policy conditions with IMF loan programs, the Fund made a lightning rod for criticism related to Jamaica’s lack of economic progress. Jamaicans celebrated the end of IMF loans in the mid-1990s, but a serious financial crisis later that decade created a new level of economic problems. In 2010, in connection with the global economic crisis, Jamaica back to the IMF for financial support. This case allows students who face complex economic difficulties of Jamaica, the burden of a self-reinforcing set of interrelated factors, including high government debt, a sluggish private sector, an inefficient public sector, poverty and crime, is among other things to explore.
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from
Rafael Di Tella,
Gunnar Trumbull,
Natalie Kindred
Source: Harvard Business School
33 pages.
Release Date: 15, April 2011. Prod #: 711031-PDF-ENG
Debt and Development in Jamaica HBR case solution

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