Jamaica’s recent economic growth has been met with both surprise and skepticism. While some view this rapid development as a miracle, others attribute it to effective policymaking in a supportive political environment despite many challenges. However, an alternative perspective could argue that Jamaica’s economic recovery came at the expense of preparedness for the effects of climate change. With climate change continually posing new dangers to Jamaica’s core sectors of agriculture and tourism, the country’s economic future may become more problematic.
Throughout the 1970s, successive Jamaican governments ran chronic budget deficits due to external events beyond their control such as the 1973 oil price shock, which raised import costs and led to a recession and devaluation. This forced increased borrowing to purchase critical imports, leading to debt levels that rose from 16 percent in 1977 to 35 percent by 1986. Debt servicing accounted for over 40 percent of government spending by 1985. To address rising debt levels, Jamaica sought bailout loans from the International Monetary Fund and World Bank in the 1980s. However, these loans came with harsh austerity measures, resulting in significant cuts to public sector employment and public investment by the government. Austerity had a significant impact on the economy, with average growth dropping from 2.3 percent in the 1980s to 0.9 percent in the
