How is the declining bauxite production affecting Jamaica as a developing country?

Abstract

This is a paper researching the effects that is seen from the financial crisis in a developing country. The research question is focused on how Jamaica is dealing with the fact that the world demand for bauxite has decreased since the crisis evolved. There are three main areas that are being discussed in the light of this research question. The first area is social implications, followed by economical- and environmental implications. The paper is an analysis of the financial crisis and its effects on Jamaica and the findings of the paper are focused on the three main areas above. The social implications are mainly the risk of increasing crime and murders in Jamaica because of increased unemployment and increased food prices. The environmental implications look at the destructions from the mining, and the problems of not restoring the areas after the mining is finished. Finally, the economical implications is an analysis of the effects seen in the Jamaican economy, by mainly looking at the inflation, interest rate and increasing food prices in the country. The paper also addresses the problem of the monetary policies led in the country, and is focusing on the negative effects of keeping a high interest rate in a time of crisis.