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Economy
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 What is the general situation
with these ISSUES?
- The National Industrial Policy provides the framework for action
in the productive sectors. This policy will be complemented by
guidelines for environmental protection in all sectors. The new
NRCA Permit and Licensing system is consistent with the "polluter
pays" policy, and should bring industrial and commercial activities
into compliance with national standards for air and water emissions
and make them at the same time more competitive on the international
market.
- There is growing global interest in having the National Accounts
recast to reflect the contribution of natural resources. Presently
there is no way to indicate the economic losses due to resource
degradation related to soil (by erosion), watersheds (by deforestation),
or coastal water quality (by nutrient and sewage pollution).
- Economic trends in overseas markets such as the United States
are encouraging, and signal prospects for growth in Jamaica's
trade sectors and the wider economy. To be sustainable, this growth
cannot be made at the expense of the country's environment.
- Despite the fall in the inflation rate, the regulatory authorities
failed to keep up with the growth in financial service operations.
At the start of the financial year 1996, the government had set
aside US $500 million to close or take over three financial groups
and to ‘bailout’ 4 insurance companies. The government estimates
the necessity to borrow and additional US $300 million for this
venture.
- The country has been borrowing significant sums since 1980,
and there has been a steady decline in production since the start
of the 1990’s. This has led to the erosion of the real income
of the population.
- Recent external developments such as the North American Free
Trade Agreement, and the acceptance of the ISO 14000 standards
make it necessary that local goods and services including tourism
are produced in compliance with international environmental laws
and regulations.
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