Identify an opportunity (based on data or news analysis—See resources below plus the syllabus links) 2. Identify the means or process of how you would approach this opportunity (Resources below or...

Jamaica
Jamaica is Greater Antilles 4
th
largest island with its capital in Kingston. It has a population of
2.8 million and the GDP and per capita income stood at $14 billion and $5402 respectively.
Jamaica is an upcoming emerging market which offer growth prospect in trade and investment
and is the largest speaking English speaking island in Caribbean. It is a mixed economy where
both state government and private sector businesses operate and tourism is its biggest strength
where on an average over 3 million tourists visit annually and is the largest employment
generating sector. Other productive activities are mining, agriculture, real estate and land
development and information technology is catching up very fast and it’s gearing up for leading
outsourcing destination.
The Economy
Jamaican government is open to investments in various sectors such as financial services agro
based products, Infrastructure, tourism, IT, entertainment and other allied activities. Its
geographical nearness to US, Canada and Mexico has become important gateway to established
trade routes between North and South America, Africa, and Europe, and with inter connectivity
to the Eastern part and thus it attracts significant FDI in export oriented activity. The FDI came
in on the back drop of investor friendly policy, demography and low cost of labor. Jamaica rank
favorably destination for business investment freedom indicators. The 2011, US’s Heritage
Foundation in its Index of Economic Freedom ranks it at 58 out of 79 countries. On the flip side
high domestic input cost mainly in the form of electricity and poor infrastructure and
bureaucracy is acting as a hindrance in the growth prospect. However the government is working
upon these weaknesses and taking corrective steps to address the same.
Along with the opportunity in respective industries which the country is offering it has some
weakness and threats.
 Crime rate is very high in the country along with poverty and lack of quality education is
acting as a major hindrance.
 Incentive for small scale industry is very limited and not thus leading to rapid growth in the
small scale activity which is the largest employment generating sector.
 Inefficient bureaucracy and political system have acted as a major deterrent in country’s
growth prospect and it’s in recent past that government is fostering towards growth.
 On the macro front country is highly dependent on its fuel import and thus recent spike in
commodity prices have hampered the growth as inflation is constantly increasing.
 Similarly upcoming election has created added burden on the government and it’s sacrificing
long term with short term results.
Snapshot of SWOT analysis:
Thus after considering the analysis of the economy and sectors the Strengths, Weakness,
opportunity and weakness have been analyzed.
International Financial Corporation and other Global financial institution are witnessing potential
growth opportunity and are investing considerably in the above discussed activity. Looking at the
strengths and opportunity, weakness and threat Jamaica is having and the intent of the
Strenghth
* Tourism product
* Agricultural opportunities (particularly import
substitution opportunities)
* Culture, music, sports
* Geographic location
* Bauxite and alumina
* Renewable energy sources supply
* Focus on prudent fiscal management
* Tax administration development
Weakness
Crime and culture of indiscipline and lawlessness
* Poor human rights system
* Low literacy and poor school governance
* Poverty -- economic dependence
* Inefficient court system
* High cost of energy
* Poor organisation of small businesses
* Political system
* Inefficient bureaucracy
* Poor infrastructure
* Inaccessible garrison communities
Opportunities
*Global recovery -- increased markets
* Import substitution opportunities
* Renewable energy opportunities
* Poor structure and import dependency means
greater opportunities to grow
* Public sector rationalisation
* Tax reform and simplification
Threats
* Global recovery -- inflation, higher interest rates,
etc
* Rising oil and commodity prices
* Focus on more investor-friendly emerging
economies
* Upcoming election
* Fiscal appetite for revenue
* Inadequate health care
Swot Analysis-
Jamaica
government to overcome the weakness and covering the threats, Jamaica is an attractive
investment destination for the investor and in the long term it is expected to generate decent
return for the stake holder. Being strategic located and having beautiful flora and fauna and
attractive tourism offering its offers huge potential.
Industry
Over the last five years Jamaica’s agriculture and horticulture allied activity etc. have
generated export revenue of USD100 million each year and the sector is growing @5.6% per
annum. It contributes 18 in the county employment index. Country has 2.7milion hectare of land
out of that 17% is agricultural land offering great potential for future revenue. In order to boost
investment government has announced inventive including income tax relief, duty reduction on
import of agricultural equipment. Further to...