a ‘middle’ income country

**Disclaimer: I have done no statistical research for a post that really needs more stats and I am also probably speaking a bit too authoritatively for my limited knowledge…sorry.

Jamaica is a ‘middle income’ country. This means that the United Nations (et al) have determined that enough Jamaicans earn a relatively decent income. It also means that it has become increasingly difficult for NGOs to receive international grants (and other forms of funding) as Jamaica isn’t ‘poor’ enough in the harshly competitive world of international funding. What has been largely left out of consideration is that the cost of living in Jamaica is extremely high — very approximately food, transportation, etc costs 75-80 percent of what it does in Canada. Sometimes more. Rarely less.

Theoretically I have known of this situation for quite some time. This past week it hit me a lot harder. A youth came to ask me about his latest pay cheque. It was for $2800 (approximately $33 CAD). For a week. He normally works 6 days a week; however, the Easter holidays had occurred during this time and he had not been compensated. I told him I would look into the local labour laws and get more information for him.

What did I find out? Minimum wage is $4070 a week (5 days a week, 8 hours a day) — approximately $46 CAD. That is just over a dollar (Canadian) an hour. Yes, that is a lot higher than the dollar a day that Millenium Development Goals aims to eradicate; however, it is also a lot lower than the 8-10 dollars an hour that workers at similar jobs in Canada would earn.

And let me remind you once again of the cost of living in Jamaica. High. And continually higher. 2010 has not been a good year for inflation in Jamaica. Transportation: up. Food costs: up. Taxes: up (17.5 % GCT). In fact, even CUSO-VSO recently recognized this and the volunteer stipend was increased this past month (although the pay cheque of an average Jamaican will not be increasing).

In addition to the cost of living and the state of the minimum wage, one should also realize that extent of the informal economy in Jamaica — an economy that “employs” many yet where “income” is not at all predictable. Consequently minimum wage jobs, even if they barely cover the costs of transportation and lunch, are coveted . I work at an employment centre where we have barely any jobs to advertise.

So, does “middle income” tell the true story? As always, a lot remains unsaid. Costs can be close to those in “high income” countries, but incomes can be close to those in the lower brackets. Is this what is meant by “middle”?

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