In: Economics
Use the following terms to explain how the IMF manipulated Jamaica’s agricultural economy: tariff, devalue, exports, imports.
Jamaica's economy is agriculture
based and required support of IMF for growth and development. The
IMF gave assurance of support in terms of job creation, poverty
alleviation and improving lives of the people in Jamaica. For this,
IMF asked Jamaica to follow programs that started with the removal
of import tariff and let foreign MNCs come and operate in Jamaica,
it will create jobs and people' purchasing power will rise. The
program also encouraged Jamaica to increase its own export of
agricultural products such as Sugar, banana, cocoa and Coffee. But
for that, it required to devalue the currency so that it could
compete in international market. It increased the trade deficit as
imports were also increased. It led Jamaica to go back to IMF again
and asked for the next round of funding. It made IMF to completely
control the economy of Jamaica as per its own agenda and brought
huge manipulation.