Philippine E-Journals

APPLYING DEPENDENCY THEORY TO JAMAICA’S CYCLICAL PARADIGM OF ECONOMIC COLLAPSE

Saran Stewart

 

Abstract:

With roughly 2.8 million people, Jamaica is the largest English speaking country in the Caribbean region. Also, a former colony of Great Britain, Jamaica was essentially the West Indian production haven for sugar. After centuries of colonization, independence was granted forcing self-governance and economic reliance on the newly formed Jamaican citizens. However, the country was left dependent on foreign capital, aid and investment. The purpose of this study is to answer the primary research question: How does dependency theory explain and examine Jamaica’s high level of income inequality and poor economic performance in the past three decades from 1976 to 2010.After which, I provide initial data on Jamaica’s economic retardation and highlight the relationships “between the external penetration by the dominant powers and the internal domination of a country’s [Jamaica’s] political economy by local elites, and the impact of that interrelationship on peripheral societies” (Rose, 2002, p. 5). The data shows varying level of cyclical dependence on foreign trade and investment. Research suggests future implications that ensure both domestic and foreign investments fit into the prevailing factor endowments and infrastructure of Jamaica.