Jamaica: Risk, reward and incentives. Crime pays and getting away with murder is easy.

Our unfortunate reality…

Jamaica: Political Economy

Some things about life in Jamaica strike me as blindly obvious. One of them is the constant disconnection between what people say they want and what people encourage to happen. Economics is supposed to be about scarcity, but that is really another way of saying that it is about choice and how that is influenced. One of the main drivers for choosing is what is the risk and what is the reward of the choice. Normal, sane people go for things that tend to have more reward than risk. Policy makers should set up options for their societies that load rewards on things that they want to happen, and load risks onto things they wish to discourage. This is where Jamaica–the land of the exceptional–comes to the fore. We have a society that has been loaded with either perverse incentives or incentives that seem to run counter to what we…

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