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Macey Hames

International Business Law 3363


March 11, y

Sustainability in Jamaica

Jamaica is working toward becoming a sustainable, prosperous, and progressive country.


Since implementing their National Development Plan in 2009, Vision 2030, the country has
made and continues to make tremendous progress in order to reach developed country status by
the year 2030. The plan honors human rights and protects the environment while reforming
almost every aspect of society with the goal of becoming the place of choice to live, work, raise
families and do business (Welcome to Vision 2030 Jamaica).
The country is making great economic progress with inflation hitting a record low of 4.5
percent in February 2015. The gross domestic product (GDP) of Jamaica currently stands at
14.36. Population has grown to 2.72 million while the unemployment has fallen to 13.4 percent.
At the end of February 2015, Jamaicas net international reserves are US$1,921.18 million. The
price of gasoline has remained under US$1 per liter since October 2014 (Jamaica - Economic
Indicators - Actual Data - Historical Charts). The country also made a sizable leap up on the ease
of doing business scale, ranking 58 out of 189 economies with 67.79 distance to frontier points
(Doing Business in Jamaica). Recently, Jamaica has passed numerous acts that positively affect
the country and its economy, citizens, and environment. New legislation opens up many
opportunities for investment and development within the country. All acts follow and support the
mission of Vision 2030, working to enhance Jamaica as a whole.
The Jamaican government, as per the recommendation of the Electoral Commission of
Jamaica, passed an important amendment to the Representation of the People Act providing for
the registration, regulation and funding of political parties. Prior to this legislation, there were
no requirements regarding the registration or financing of parties. The act aids to modernize
Jamaica and allow for a fair constitutional monarchy (Representation of the People (Amendment)
Act 2014). Furthermore, economic development is aided by Jamaicas new Public Procurement
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Act by providing guidelines that will enhance transparency and efficiency in the granting of
contracts. This ease is furthered by alternative methods of procurement, improved bidding, and
the establishment of a Public Procurement Commission. This law will separate the Commission
from the Office of the Contractor General. The act also criminalizes persons who are found to
have wrongly benefitted through means of public procurement. Finally, the law requires each
financial year for government entities to submit a procurement plan and reflect it in their budgets
(Linton, Bill to Modernize Public Procurement Tabled in the House).
The Bankruptcy and Insolvency Act of 2014 seeks to consolidate the economic, legal,
and commercial framework of Jamaica. An important component of the law is it will allow
companies and individuals the opportunity to rehabilitate their financing before entering into
bankruptcy. Instead of solely resolving cases through means of liquidation, reorganization
provides an opportunity to preserve the organization and jobs while returning more money to
owed creditors. The act repeals and replaces the previous Bankruptcy Act to modernize the
country (Linton, House Passes Insolvency Act).
Infrastructure development and restructured traffic legislation have further impacted the
country. Jamaicas Road Traffic Act of 2014 repealed and replaced the 1938 Road Traffic Act to
modernize the regulation and safety of Jamaican roads. The law immensely increased the fines
for violations in order to intimidate motorists to obey the traffic laws as well as provided new
standards for holding a learners permit, new classifications of drivers licenses, restrictions on
the use of hand-held electronics while operating a motor vehicle, and greater jurisdiction for the
Island Traffic Authority (Road Traffic Act 2014). Legislation provided by the Road Traffic Act
compliments the current restoration of Jamaican roads.

The Jamaica Development Infrastructure Programme (JDIP) is a government project, in


consideration of Vision 2030, to restore and enhance the road network across the island. The
JDIP, funded heavily by the Government of China with approximately US$400 million, is
currently improving road safety and traffic and providing economic development for places that
were previously inconvenient to access (National Works Agency). Since the project began in
February 2010, over 350 projects were substantially completed, making it Jamaicas largest
infrastructure development project to date. In 2014, The JDIP saw a name change to the Major
Infrastructure Development Programme (MDIP). The MDIP focuses on the Jamaica Emergency
Employment Programme (JEEP), national projects, and projects suggested by parliament or local
island authorities. JEEP, a J$360 million program, targets small community projects. Over
42,000 Jamaicans have received employment since 2012 and citizens of rural areas have
welcomed the positive changes to the infrastructure. JEEP not only helps to counter
unemployment, but also prioritizes projects in the byways of the island to benefit residents
(Patterson).
In February 2015, Jamaica passed the monumental amendment to the Dangerous Drugs
Act to decriminalize marijuana. While creating a new regulatory body, the Cannabis Licensing
Authority, the amendment to the law will also make the possession of small quantities of
[cannabis] a non-arrestable offense, and to instead make it a ticketable infraction that does not
result in a criminal record; Permit the use of [cannabis] for religious, medical, scientific, and
therapeutic purposes, and; Provide for regulation through the granting of licenses to permit the
development of a lawful industry for medical [cannabis] and industrial hemp. With this new
legislation in place, Jamaica has the opportunity to become the global leader for cannabis
production within the next few years. The country offers a year-round growing season and plenty

of available land and famers. Cannabis, being a renewable resource, can be used in nearly every
industry. The cultivation of cannabis in Jamaica would stimulate the Jamaican economy by
providing employment, tax revenue, and export growth (Ministry of National Security,
Communications & Public Affairs).
Both marijuana and hemp offer large, open markets in the Jamaican economy. Medicinal
marijuana will provide tax revenue to the country and can improve the health of Jamaican
citizens. The usage of hemp is proven to be beneficial for both the economy and the
environment. Industrial hemp, with its wide range of uses, could become a crucial aspect to
Jamaican exports worldwide. A Jamaican organization, the Westmoreland Hemp and Ganja
Farmers Association (WHGFA), as of 2014, is preparing and educating Jamaican farmers for the
cultivation of cannabis. The WHFGA is establishing business models and advocates for safe and
fair regulation of the industry. The main goal of the association is to aid to benefit the Rastafari
and traditional farmers. United Cannabis is working with the country and its farmers to help
restore the purity of (Jamaican marijuana) strains and standardize the breeding process. With
this help, Jamaican cannabis will soon be ready for legal nationwide and international use
(Raabe). Currently, the United States imports US$550 million in hemp products per annum,
which has rapidly risen from US$36.9 million in 2013 (Cannavest Corp.). With legalization in
2015, there is a new, significant investment opportunity in Jamaica for the cultivation,
manufacturing, and exportation of cannabis for marijuana, hemp, and hemp products to be
explored.
Another act that has greatly impacted Jamaica recently has been the Electricity Act of
2015. The act is an energy policy designed to ensure that Jamaica achieves by 2030, a modern,
efficient, diversified, and environmentally sustainable energy sector. Regulation provided by
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this law promotes the use of renewable energy and calls for the modernization of the use of
electricity to push Jamaica toward prosperity. New standards for licenses and the generation of
electricity help to consolidate the energy sector. Jamaica relies heavily on outside sources to
import fossil fuels for domestic energy needs. By shifting the energy generation mix more
toward renewable energy, Jamaica will save money while simultaneously reducing their carbon
footprint. In 2010, 95 percent of the countrys energy generation came from the use of fossil
fuels. Vision 2030 seeks a long term goal for 70 percent non-oil-based supply (The Ministry of
Energy and Mining).
Jamaica continues to search for new methods of renewable energy in order to reach their
goal, making it a growing market with opportunity for innovation and investment. The country
provides the best clean energy resources, wind, solar, hydro, and biomass. Jamaica Public
Service (JPS), the sole distributor of electricity in Jamaica, signed a 20-year Power Purchase
Agreement with BMR Jamaica Wind Ltd.,Wigton Wind Farm, and WRB Enterprises/Content
Solar Ltd. The three companies will generate 78 MW of renewable energy to be contributed to
the national grid. At US$196 million, the collaboration will create, during construction alone
approximately 300 new jobs, to be completed at the end of 2015 (JPSOnline, "Historic Power
Purchase Agreements Signed between JPS and Renewable Energy Providers, including Jamaica's
First Solar Energy IPP). Scheduled for commissioning by the end of 2017, JPS will replace
units at the Old Harbour Bay Power Plant in St. Catherine with a 190 mega watt gas turbine. The
new plant is projected to be the most cost effective, flexible generation available to
economically integrate intermittent resources into the grid, enabling the Governments Energy
Policy to provide up to 20 percent of Jamaicas energy from renewable energy sources
(JPSOnline, JPS Committed to 190MW Plant). The plant will also reduce dependence on
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liquid fuels, such as diesel, to lower the cost of natural gas (Smtih-Edwards). Abundant green
technology and clean energy opportunities in Jamaica are gas power plants, combined cycle
power plants, biomass technologies. While solar and wind already have wide-spread usage
throughout the country, biomass technologies are on the rise in Jamaica. Biomass energy sources
in Jamaica are relatively unexplored and non-commercialized on the island, providing an open
market opportunity.
The renewable resources industry in Jamaica seems to provide the largest opportunity for
investment as of 2015. The country proves to be on the track to meeting the goals outlined in
Vision 2030 and becoming an ideal location for both living and doing business. An important
weakness to acknowledge is that the country has not yet met all their goals and is halfway
through their long-term development plan. However, the environmentally friendly market
opportunities offered by cannabis production and renewable energy are promising open markets
in Jamaica. New industries, legislation, and infrastructure are drastically reshaping the economic
and environmental climates of Jamaica.

Works Cited

Cannavest Corp. "President Obama Signs Federal Legislation Removing Barriers for U.S.
Industrial Hemp Cultivation." Nasdaq. GlobeNewswire, Inc., 10 Feb. 2014. Web.
18 Mar.

2015. <globenewswire.com>.

"Doing Business in Jamaica" Doing Business. World Bank Group, n.d. Web. 18 Mar. 2015.
<doingbusiness.org/data/exploreeconomies/jamaica/>.
"Jamaica - Economic Indicators - Actual Data - Historical Charts." Economic Indicators.
IEconomics, n.d. Web. 18 Mar. 2015. <ieconomics.com/jamaica>.
Jamaica. Government of Jamaica. Representation of the People (Amendment) Act 2014. N.p.:
n.p., n.d. Houses of Parliament. Jamaica Information Service. Web. 20 Mar. 2015.
<japarliament.gov.jm>.
Jamaica. Government of Jamaica. Road Traffic Act 2014. N.p.: n.p., n.d. Houses of Parliament.
Jamaica Information Service. Web. 22 Mar. 2015. <japarliament.gov.jm>.
JPSOnline. "Historic Power Purchase Agreements Signed between JPS and Renewable Energy
Providers, including Jamaica's First Solar Energy IPP." Jamaica Public Service
Company.

Jamaica Public Service Company, 18 Sept. 2014. Web. 31 Mar. 2015.

<myjpsco.com>.
JPSOnline. "JPS Committed to 190MW Plant." Jamaica Public Service Company. Jamaica
Public Service Company, 6 Feb. 2015. Web. 18 Mar. 2015. <myjpsco.com>.
Linton, Latonya. "Bill to Modernize Public Procurement Tabled in the House." Jamaica
Information Service. Jamaica Information Service, 31 July 2014. Web. 18 Mar.
2015.

<jis.gov.jm>.

Linton, Latonya. "House Passes Insolvency Act." Jamaica Information Service. Jamaica
Information Service, 9 Oct. 2014. Web. 18 Mar. 2015. <jis.gov.jm>.

Works Cited

Ministry of National Security, Communications & Public Affairs. "Contribution to the Debate on
the Dangerous Drugs (Amendment) 2015 Act." Jamaica Information Service. Jamaica
Information Service, 24 Feb. 2015. Web. 12 Mar. 2015. <jis.gov.jm>.
"National Works Agency." Jamaica Development Infrastructure Programme. National Works
Agency, n.d. Web. 31 Mar. 2015. <nwa.gov.jm>.
Patterson, Chris. "12,000 More Jamaicans To Get Employment Under JEEP." Jamaica
Information Service. Jamaica Information Service, 21 Mar. 2014. Web. 17 Mar.
2015.

<jis.gov.jm>.

Raabe, Steve. "Denver Firm to Create "Ganja Cooperative" for Jamaican Pot Farmers." The
Denver Post. The Denver Post, 27 Feb. 2015. Web. 18 Mar. 2015.
<denverpost.com>.
Smith-Edwards, Alecia. "Cabinet Approves JPS Proposal to Construct Gas Turbine Power Plant."
Jamaica Information Service. Jamaica Information Service, 03 Feb. 2015. Web. 18 Mar.
2015. <jis.gov.jm>.
The Ministry of Energy and Mining. "Jamaica's National Energy Policy 2009-2030." Securing
Jamaicas Energy Future (2009): n.p. 21 Oct. 2009. Web. 18 Mar. 2015.
<ocs.mona.uwi.edu>.
"Welcome to Vision 2030 Jamaica." Vision 2030 Jamaica. Planning Institute of Jamaica, n.d.
Web. 18 Mar. 2015. <vision2030.gov.jm>.

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