STRUGGLE FOR THE SURPLUS: JAMAİCA, 1970-84

The paper develops an empirically meaningful definiıion of\nsurplus' and calculates the sectoral surplus in Jamaica for the\nperiod 1970-84. It is found (1) that the size of the surplus varies be-\ntween sectors; (2) that the distribution of the surplus varies between\nsectors: and (3) that the 'quasi-capital goods sector' and the con-\nsumption goods sector appear to be discriminated against, despite a\nconsistent emphasis on import substitution policies. On the busis of\nthe results stated above, it is concluded in the paper (1) that part of\nthe revenue collected from taxing the quasi-capital goods sector has\nbeen used to finance the import substitution policy aimed at expand-\ning output and employment in the manufacturing sector: (2) the\nmanufacturing sector has been the subjcct of increasing tax rates\nthe revenues from which have been used to finance an expansion of\nservices, in particular those undcr govemment auspices. A general\nconclusion of the paper is thus that import substitution policies in\nJamaica have not aimed at expanding the manufacturing sector per\nse. but rather expanding sectors characterised by low costs of\nsurplus extraction. Hence. the theory of sectoral clashes, fonvarded\nby Markos Mamalakis some two decades ago. seems to be rclcvant\nfor explaining the pattern of surplus extraction in Jamaica.