Size and Distribution of the Surplus
In this and two subsequent chapters an attempt will be made to analyze the
economic performance of Jamaica from the points of view developed in Part II.
Focus is on the 1970s, in particular because these years represent a period of
unusual deep recession in Jamaica's economic history. In addition, between 1972 and 1980, Jamaica was governed by the People's National Party ( PNP),
headed by Michael Manley, and in what follows it will be argued that the
policy of Democratic Socialism pursued by the PNP to some extent was
responsible for the economy's dismal performance.
However, before plunging into calculations of the size and distribution of
the surplus it is important to outline some of the basic features of "normal"
economic development: what is the long-run pattern of growth and structural
change in successful developing countries?
ECONOMIC DEVELOPMENT: SOME STYLIZED FACTS
Following the studies of Chenery ( 1979) and his associates, the structural
changes in the "normal," industrializing economy accompanying a secular
increase of per capita incomes are roughly as follows ( Kirkpatrick &
Nixon 1984, 17
|The share of agriculture in GDP declines and the share of manufacturing
|The share of the total labor force in the manufacturing sector increases, while
the share of the labor force in agriculture declines.|
|The composition of manufacturing output changes in favor of heavy industry,
such as electricity, chemicals and transport equipment.|