Impact Of Crime On Jamaicas Economy

Impact Of shame On Jamaicas EconomyAn economic problem that Jamaica faces as a country is offence. Crime whitethorn be defined as an intentional act or omission in violation of criminal law.For umteen decades Jamaica has been plagued with shame and ferocity. This has been a major concern of the nation and the Government since the mid -1970s. In January of 2012, Jamaicas murder rate was over 20% higher than in the afore utter(prenominal) period of 2011. The Government has made numerous attempts to decrease the rate of detestation single if these measures progress to been short term. The Governments ultimate plan was to growth Police mobility and firepower but this has proven futile as Police argon understaffed, corrupt, and ineffective and the monetary value is unsustainable.Jamaicas population is estimated at approximately 2.7 million battalion. The number of murders and other violence ca intentions Jamaica to fox one of the highest crime rate in the world. Police stati stics in Jamaica has shown that since the year 1999 Jamaicas crime rate has steadily risen. In 2005, according to International statistics, Jamaica was the Murder chief city of the World. There has been tremendous increase in the rate of homicides and shootings, illegal drugs, arms and ammunition, rape and carnal abuse which continues to negatively impact the countrys social and economic step-up.Crime can be attributed to several factors namely low-cal family structure, poverty, income inequality, unemployment and neglect of opportunity. correspond to Lewis (2010), Jamaica is experiencing a G-culture challenge which is characterized by a hazardous compounding of guns, gangs, grand bills and girls to which Jamaican men gravitate. Bunting stated, The estimated cost of crime has been 67 to 90 per cent of Jamaicas gross national product over the last 40 days (jamaicaobserver.com, Business Reduced crime leads to better economy, Bunting June 17, 2012).The purpose of this research is to investigate the causes and effects of crime and recommend economic concepts that could be employed to moderate this problem in Jamaica.A Review of LiteratureTypes of CrimeViolent CrimeViolent crimes may be defined as offenses that involve the use of force or injury to the body of other person. The distressfulness of a violent crime is usually determined by the degree of physical injury caused to the victim (LaMance, 2011).Jamaica has an above average violent crime rate in the world. From the period 1989 to 2009 Jamaica saw a rise in organized crime and a subculture of violence. Since the arrest and extradition of Christopher Dudus Coke in June 2010 there has been a significant decrease in the murder rate and other crimes across the country. Recent crime statistics study shown that Jamaicas crime rate has decreased by 80 percent. However, crime is still an issue as the country continues to be bear on by it. Jamaica is plagued with robbery, gang violence, domestic violenc e, rape and carnal abuse.Rape and carnal abuse is rapidly increasing. Mostly females ar the victims. There has been a recent incident in Montego Bay, St. James where louver women including three girls below 18 were brutally raped. Police statistics have shown a 100 percent increase in the number of rapes reported in Clarendon, 58 percent increase in St. Catherine, 43 percent in Manchester, 40 percent in Trelawny and 33 percent in other communities across Jamaica. According to statistics for the period January to September 2012, a total of 626 rape cases were reported while for that same period 2011, 595 cases were reports, this depicts a 5 percent increase.REPORTED CHILD squall CASES JAN JUN 2012Sexual abuse 1402Physical abuse 1201Trafficking 2Of the sexual abuse cases mentioned above 92.9 per cent of the victims were girls.The above data is from the Office of the Childrens Registry (OCR).Types of Crime passive CrimeNon-violent crimes may be defined as crimes that do not inv olve the use of any force or injury to another person. The seriousness of a non-violent crime is usually measured in terms of economic damage or loss to the victim (LaMance, 2011). Common non-violent crimes affecting Jamaicas economy are theft, bribery, drug related crimes, corruption and fraud to a greater extent so the infamous Lottery Scam.The lottery scam is smearing the countrys reputation internationally. It deters foreign investors Lottery scam inflows may be Jamaicas third largest foreign exchange earner. Income from defrauding persons overseas only follows remittances and tourism earnings, if estimates of US$300 million a year are true.The fraudulent action was listed among the highest threats to Jamaica in the national security policy published by the Cabinet for public comment last Friday.Read more http//www.jamaicaobserver.com/business/The-high-cost-of-crime_12370259ixzz2DS3ouLjmNonviolent crimes have a greater impact on the countrys international reputation.Crime Facto rsWeak Family StructuresIn Jamaica there is a vast amount of children with absent fathers. Growing up without a father or male figure as a role model is very laborious for children, especially boys. There are likewise many neglected, unloved and uncared for children especially in the inner cities, many of which can be seen wandering on the streets and left to the mercy of perpetrators. Mothers are left to encourage their children by themselves, the fathers are never around. Often times these mothers are teenage girls or under twenty five (25) years of age who lack come across and need guidance themselves. Boyne stated, A recent study of Caribbean callowness found that only 9 per cent grew up with a father, and when step-fathers were factored in, the percentage grew to only 13 per cent. So a large percentage of Jamaican youth are growing up without their fathers. This has grave economic and social consequences for society, Boyne, I. (2005, November 20). Closing Jamaicas crime fa ctories. Jamaica Gleaner. Retrieved November 01, 2012, from httpwww.jamaica-gleaner.com.In Jamaica society, fatherless children are at a disadvantage as they face more struggles to achieve success in their wears both personally and academically. They lack the sense of the most basic social norms and behaviours. These children engender the raw materials of crime in Jamaica as they usually form gangs and engage in criminal acts delinquent to lack of proper guidance and stability. Children from broken homes are far more likely to commit crimes than those from stable families.Many research studies support the theory that weak family structure correlates with delinquency. The family is the foundation of human society.Crime FactorsPovertyThere is a direct link between poverty and crime as they usually go hand in hand. Crime exists everywhere in Jamaica and among all people. However, where there are high poverty aims the rate of crime is significantly high.Poverty causes hunger, when indigent people are hungry they engage in acts of stealing or robbery to acquire what they need as they lack genuine means to fall them. The lack of independence which comes with economic hardship makes the poor more likely to commit crime (Harriot, 2001). Young people especially in the inner cities are more likely to get compound in drug dealing and gangs as they feel there is no other way out of their indigent state.Jamaicas poverty level is unacceptably high. According to CIA World Fact book, 16.5% of the countrys population is living below the poverty line (2010 est.) this would be equivalent to approximately 462,000 people who are unable to meet their basic needs. In addition, the IMF report states that 1.1 million Jamaicans are living in poverty and earning less than US$2.50 per day.A combination of Poverty and crime equals people benefiting from criminally generated income. People in poverty are more likely to get arrested.Crime FactorsIncome InequalityIncome inequality m akes it difficult for the poor to survive and on a wider scale it lowers the economic growth of Jamaica. When income inequalities are high, crime is equally high as it is a major determinant of crime. When the poor feel inferior to the rich it causes serious social tensions to increase hence decreasing the opportunity cost of crime. Consequently, as the income distribution gets more unequal, the rift between the benefits and costs of crime widens and thus the incentive for crime becomes higher (Becker, 1968).Three major ecological theories that fit to the conception that inequality increases crime rates are Beckers economic theory of crime, Mertons strain theory and Shaw MacKays social disorganization theory. According to Beckers framework, celestial spheres of high inequality, i.e. those areas where very poor and very rich coexist the thinking(prenominal) criminals motivation is stimulated by the inequality. Mertons theory argues that when faced with the relative success of ot hers around them, unsuccessful individuals feel frustration at their situation. The greater the inequality is, the greater the inducement for low status individuals to commit crime. The motivation to commit crime is not solely drawn from the expected economic benefits, but from social disgruntlement and dissatisfaction (Kelly, 2000).Crime FactorsUnemployment Lack of OpportunityJamaica faces great challenges with high rate of unemployment and underemployment. Unemployment creates an environment where parents cannot provide a good education, a comfortable home and healthy meals for their children. These children become economically and socially lacking. On a broader scale this also increases the countrys illiteracy rate due to high percentage of uneducated children. More than likely they will become criminals as they see no other option for future fulfilment. Youth going to work or school tends to reduce the probability of being involved in criminal activities (Tauchen and Witte, 199 4).When people are unemployed they tend to be more hostile, angry and jealous this creates social dismantling and crime. It can be reason that unemployment and crime are closely related.According to CIA World Factbook, Jamaicas unemployment rate was 12.7% in 2011 and 12.4% in 2010. This reflects an increase by .3%. In comparison to other countries Jamaica is presently ranked at sixty nine (69) with an unemployment rate of 12.7%. The unemployment rate in Jamaica is approximately 14.3% with youth unemployment significantly high (World Bank, 2012).Lack of OpportunityJob opportunities in Jamaica are limited. Too many persons have spent enormous amount of money to send themselves to Colleges and Universities and are unemployed or underemployed due to the lack of prank opportunities. There are too many children graduating from High School without a skill or qualification. They end up at a dead district because the society lacks the appropriate training facilities.Cost of crime on the Ja maican economyCrime has a negative impact on Jamaicas economic growth. The cost of crime is very high and the effects are both monetary and non monetary. At present, Jamaicas debt is estimated at 139.7% of GDP (World Bank, 2012) which is equivalent to a current debt stock of J$1.7 trillion (Global Competitiveness Report, 2011-2012).Crime affects economy, tourism, cost of doing business and foreign investment. The non monetary effects of crime are trauma, emotional and social break down, suffering and death. A study of the effects of crime carried out in Jamaican neighborhoods found out that resident of inner-city neighborhoods suffer from what is called area stigma. Based on where they live, these persons are separate to be associated with criminals this makes it difficult for them to find employment. The study also made emphasis on the intangible effects of violence on a person socially, indicating that violence destroys social relationships increasing levels of tension. Due to th e high rate of crime and violence in inner-city areas of Jamaica, residents are afraid to leave their homes and socialize less often with friends and family who live elsewhere (Moser and Holland 1997).EconomyCrime slows the growth of the economy and decreases the Gross Domestic Product (GDP) of the country. According to CIA World Factbook, since the year 2008 Jamaica has not seen any marginal growth 2008 showed a decrease by -0.6%, -3.1% in 2009, -1.4% in 2010 and 1.5% increase in 2011. Jamaica, in comparison to other countries is ranked at one hundred and 70 (170) out of countries with a GDP rate of 1.5%. A report by the World Bank (2008) indicated that a reduction in Jamaicas crime rate would increase the GDP growth by 5.4% yearly.Based on a study by the United Nations Development Programme (UNDP) (2012) confirmed that Jamaica has the highest number of youths convicted of crime in the Caribbean. Every year Jamaica spends more than US$529 million to fight youth crime, which inclu des public and private cost. The report also states that crime in Jamaica by youth is costing the country approximately 3.21 % of GDP.According to the World Bank, crime costs the medical sector approximately US$29.5 million per year.TourismMost of Jamaicas tax income comes from tourism which accounts for 10% of the countrys GDP. High crime rates negatively impacts the arrival of tourists in Jamaica. As a result, tourists are reluctant to visit Jamaica and therefore study other destinations as they are concerned about their safety. This dampens the sectors economic growth which inevitably affects Jamaica on a macroeconomic level.In 2004, the tourism minister of Jamaica said that, the countrys unprecedented crime rate was threatening to hamper the tourism industry by scaring away visitors and hurting investment (Associated Press, 2004). A study by Dunn argued that, of hot perceptions of those working in the tourism industry found that crime and violence were perceived as the main p roblem afflicting the tourism industry (Dunn and Dunn, 2002).In another theory, tourists that visit Jamaica are unwilling to leave the confinements of their Hotels as they fear being harassed, robbed, or even kidnapped. This impacts the tourist experience, Jamaicas paradise image and hurt local businesses (especially cunning vendors).Harriot (2000) argued that Crime control has become a central development issue and an important public policy concern in most Caribbean territories. These tourism hooked economies have become more vulnerable to violent crime, yet more crimogenic. In the case of Jamaica (which is perhaps the most problematic), the high rates of violent crime and insecurity among all segments of the population are matched by declining public confidence in the criminal justice system and growing cynicism among its functionaries.Cost of doing business in JamaicaAccording to the Global Competitiveness Report 2012-2013, Jamaicas competitive rating was ranked at 141 out of 144 countries which measures 12 criteria, and Jamaica performed the worst in the category of macroeconomic performance and business cost of crime and violence. High crime rate results inAn increase in security costs because of the need to acquire more security personnel and systems.Loss of business due to theft and extortion, etc.Discouraging investors from investing or developing a business.Reduction in productiveness and thus revenue due to early business closure or shortened hours of operation in crime prone areas.Reduction in create from the labour force due to injury or worst death of a worker.Permanent closure or relocation of a business to an area that is less prone to crime.Loss of Foreign InvestmentInvestment is a major contributing factor to GDP because it aids in increasing work in an economy. Crime discourages investors both local and foreign. A decline in the level of investment decreases the GDP of the country and thus its economic growth. Jamaicas crime level has da mpened investors confidence in investing in the country.According to the National Security Policy for Jamaica published by the Government of Jamaica, Foreign Direct Investment (FDI) is affected as a result of the increased cost of security, insurance, capital, and recurrent costs in addition to other costs that may be specific to all(prenominal) business.RecommendationIn an effort to fight and possibly correct Jamaicas crime problem, the following recommendations are proposedIt commended the Jamaican Government for the programmes implemented to provide inner-city community infrastructure and services for the poor, including measures to promote short-term conflict mitigation and resolution, as well as medium-term social prevention and capacity enhancement interventions.The Government should build legitimate institutions that can provide a sustained level of citizen security, justice and jobs.