Globalisation on Jamaica
1. Causes of globalization affecting Jamaica:
* For Jamaica, the main reason for globalization was darker. The energy Crisis of the early 1970s forced the Jamaican Government to take out loans from the International Monetary Fund and the World Bank to cover the rising expenses of fuel based imports. However they weren’t interested in cooperating with Jamaica in developing native infrastructure and resources, so they enforced a short-term repayment of the debt, budget cuts in areas supporting long term development, and removing all trade barriers that favored local industry and farming. Thus, this started the forceful movement of “globalization” in Jamaica.
Three negative globalization cases with causes and effects: * The first one involved Jamaica’s dairy industry. Due to free trade agreements between the United States and Jamaica, dairy farmers in Jamaica had to directly compete with American farmers without any subsidy aid from the government. This resulted in the influx of cheaper powdered milk into Jamaica from the USA, destroying its entire dairy industry altogether and farmer selling cows to the slaughterhouse at a loss. The effect of globalization on Jamaica in this case, only fostered dependency on other nations rather than focusing on its own economic development. * The second case is caused by the “Banana Wars” between Europe and America. Britain had a long-standing trade agreement with Jamaica that favored their banana exports as a way of compensating for their legacy of colonialism. This brought about complaints to the World Trade Organization (WTO) by the USA backed up by large agricultural multinational corporations like Dole, Chiquita and Delmonte who at the time already had 95% of the world’s banana trade, citing it as unconstitutional and against WTO’s policy. The ruling of WTO in USA’s favor and an international penetration of trade into Jamaica’s biggest banana market ensured yet another downfall upon one of the country’s most
* For Jamaica, the main reason for globalization was darker. The energy Crisis of the early 1970s forced the Jamaican Government to take out loans from the International Monetary Fund and the World Bank to cover the rising expenses of fuel based imports. However they weren’t interested in cooperating with Jamaica in developing native infrastructure and resources, so they enforced a short-term repayment of the debt, budget cuts in areas supporting long term development, and removing all trade barriers that favored local industry and farming. Thus, this started the forceful movement of “globalization” in Jamaica.
Three negative globalization cases with causes and effects: * The first one involved Jamaica’s dairy industry. Due to free trade agreements between the United States and Jamaica, dairy farmers in Jamaica had to directly compete with American farmers without any subsidy aid from the government. This resulted in the influx of cheaper powdered milk into Jamaica from the USA, destroying its entire dairy industry altogether and farmer selling cows to the slaughterhouse at a loss. The effect of globalization on Jamaica in this case, only fostered dependency on other nations rather than focusing on its own economic development. * The second case is caused by the “Banana Wars” between Europe and America. Britain had a long-standing trade agreement with Jamaica that favored their banana exports as a way of compensating for their legacy of colonialism. This brought about complaints to the World Trade Organization (WTO) by the USA backed up by large agricultural multinational corporations like Dole, Chiquita and Delmonte who at the time already had 95% of the world’s banana trade, citing it as unconstitutional and against WTO’s policy. The ruling of WTO in USA’s favor and an international penetration of trade into Jamaica’s biggest banana market ensured yet another downfall upon one of the country’s most