Introduction:
The island - discovered by Christopher COLUMBUS in 1494 - was settled by the Spanish early in the 16th century. The native Taino Indians, who had inhabited Jamaica for centuries, were gradually exterminated, replaced by African slaves. England siezed the island in 1655 and a plantation economy - based on sugar, cocoa, and coffee - was established. The abolition of slavery in 1834 freed a quarter million slaves, many of which became small farmers. Jamaica gradually obtained increasing independence from Britain, and in 1958 it joined other British Caribbean colonies in forming the Federation of the West Indies. Jamaica gained full independence when it withdrew from the federation in 1962. Deteriorating economic conditions during the 1970s led to recurrent violence as rival gangs created by the major political parties evolved into powerful organized crime networks involved in international drug smuggling and money laundering. The cycle of violence, drugs, and poverty has served to impoverish large sectors of the populace. Nonetheless, many rural and resort areas remain relatively safe and contribute substantially to the economy.

Location: Caribbean, island in the Caribbean Sea, south of Cuba

Population: 2,758,124 (July 2006 est.)

Languages: English, patois English

Country name: conventional long form: none
conventional short form: Jamaica

Capital: name: Kingston
geographic coordinates: 18 00 N, 76 48 W
time difference: UTC-5 (same time as Washington, DC during Standard Time)

Economy - overview:
The Jamaican economy is heavily dependent on services, which now account for 60% of GDP. The country continues to derive most of its foreign exchange from remittances, tourism, and bauxite/alumina. Jamaica's economy, already saddled with a record of relatively low growth, was hit hard by Hurricane Ivan in late 2004, and is making a gradual recovery. But the economy faces serious long-term problems: high interest rates, increased foreign competition, exchange rate instability, a sizable merchandise trade deficit, large-scale unemployment and underemployment, and a high debt burden - the result of government bailouts to ailing sectors of the economy, most notably the financial sector in the mid-1990s. Following a strategy begun in 2004, Jamaica has reduced its public debt to 130% of GDP. Inflation has declined to 9%. Uncertain economic conditions have led to increased civil unrest, including gang violence fueled by the drug trade. The government faces the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments while simultaneously attacking a serious and growing crime problem that is hampering economic growth.