CHANGING DEVELOPMENT MODELS IN SMALL ECONOMIES - THE CASE OF JAMAICA FROM THE 1950S TO THE 1990S

By examining in detail the successes and failures of different develop ment models in one developing country over a four-decade period, this article sketches a development model for small economies in the 1990s as an alternative to the neoliberal model pushed by the International Monetary Fund. It reviews the experience of Jamaica with various devel opment models from the 1950s to the 1990s, with special attention focu sed on the experience of the Seaga government of the 1980s. It also dr aws lessons from the successful development experience of small Europe an countries and of the East Asian Newly Industrialized countries. In normative terms, the alternative development model attempts to combine growth with equity and democracy. In analytical terms, it takes accou nt of the constellation of domestic forces and appropriate political s trategies, as well as of international economic and political conditio ns. The main features are a strong role for the state in economic inte ractions with transnational corporations, in identification of export markets and promotion of export production, in selective protection of domestic industry with an export potential, in promotion of agricultu re linked to industrial development, in improvement of human resources and promotion of regional economic integration. Within these paramete rs, a crucial role is assigned to the domestic private sector and a co mplementary one to foreign investment. Distribution is to be addressed primarily through distribution of productive assets and access to hea lth care and education.