Globalization: Jamaica Jamaica: Fertile Potential

Globalization: Jamaica

Jamaica: Fertile potential for globalization

Since the advancement of communication technology such as the Internet and e-mail, globalization has been at the order of the day for most countries. The phenomenon, although generally beneficial, has also presented a number of challenges to various countries, including those in the Caribbean. Jamaica has also had to face a variety of challenges related to globalization. These include both the country's political and economic sector. Nonetheless, it appears that Jamaica has become one of the most prominent traders on the global scene.

Challenges for Jamaican Export Markets

Jamaica has a wide variety of goods that lend themselves to global trading practices, and do so successfully. The mining sector for example brings in most of the merchandise export revenues. This is more or less 50% of all the export sectors in Jamaica. Other merchandise sectors include agriculture, agribusiness and manufacturing, but these declined towards the latter 1990's.

Commodities are the top revenue earners for export goods, which primarily focus on bauxite and sugar. The weakness of these products lies in the fact that the market is unstable and volatile.

In 1998 for example the 78.6% of total merchandise comprised of primary products increased to 79.1% at the expense of manufacturers. The services sector such as tourism also present challenges for Jamaica's attempt to gain a foothold in the global market.

While Jamaica has a large amount of potential export markets for development, it is important that these be developed in a focused manner in order to give the country a stronger basis from which to globalize. The labor force for example needs to be empowered in terms of skills and knowledge in terms of new technologies. Being in possession of sophisticated technology does little good if the labor force is not skilled in implementing and using it. This should be based upon a thorough basic education and training program in order to improve the country's basic literacy and numeracy skills.

In terms of business, a deeper knowledge of customer preferences is also needed, which should include an adequate response to customer demands and sophistication levels. A deeper knowledge of the rivals in the various sectors is also needed in order to improve the country's competitive force.

Political and business Challenges

The inefficiency of Jamaica's export and business system is echoed by the country's legal framework and court system. This system is at such a poor level that enforcing a Jamaican contract in foreign countries may be problematic. Furthermore the inadequate legal system litters the business sector with daily ethical issues. This, combined with limited liquid capital, also limits entrepreneurial ventures.

The Potential of the Caribbean Market

Despite the above challenges, it is also true that Jamaica and other countries in the region have become a significant emerging force in the global market. The problems outlined above serve only as challenges for those venturing into the Caribbean market, and Jamaica specifically.

Specific areas showing great potential for the international Jamaican market include telephones and tourism. The above-mentioned technology has increased by leaps and bounds since the 1990's, and great progress has been made in the area of tourism. Indeed, 90% of Jamaica's international revenue in the services sector is accumulated from tourism. Undeveloped Caribbean niche markets in this sector include eco-tourism and package tours. These are specific areas that can benefit from educational efforts and possible entertainment components.

Wireless telephony is also a large potential Jamaican market. The country features 1.2 million cell phones for its 2.6 million population. The average phone bill in the country is $50 per month. The potential of this market lies in the demand for inter-island communication, as well as communication between the United States and the Caribbean area. A hopeful sign is that some Caribbean governments are working towards more competition between wireless phone companies, while landlines are mostly handled by Cable & Wireless.

Closely connected with the tourism and wireless markets is real estate in the Caribbean. Once again, this is a potential market that is largely undeveloped in this emerging market. Hotels and resorts can for example be developed in these areas, as the Caribbean islands are popular tourist destinations. Furthermore real estate benefits from persons wishing to retire in the Caribbean area.