Independent since 1962 with a parliamentary two party system, the country is a democratic state. Jamaica scores well for different social indicators such as life expectancy, schooling and literacy rate. After high economic growth in the 1960s and early 1970s, the country was confronted with problems after the first oil shock. Public finances position and the external balance were in severe disequilibrium by 1980, which led to structural adjustment programmes developed by the Bretton Woods institutions. After the economic and social distress of the 1980s and early 1990s, the macro economic situation has much improved.
Poverty remains the most urgent social problem.
Solutions are to be sought in improving social services and the further diversification of the economy. 4,360 hectares of land are now under production, with banana exports of 86,074 tonnes in 1996. Banana production and related internal transportation and distribution of inputs are a source of between 5 and 10 per cent of total employment in Jamaica. Bananas rank second only to sugar in economic significance within the agricultural sector and the export trade makes a valuable contribution to foreign exchange earnings. The demise of the industry in these areas would cause serious economic hardship and unrest, bringing unemployment levels up to 50 per cent.