Introduction

The increased public involvement in economic affairs following economic growth is due both to increasing demands for services—and Adolph Wagner seems to imply that the income elasticity of demand for services exceeds unity—and to changing perceptions in society concerning the proper role of the state. This chapter outlines relations between public expenditures and income in a large number of countries to see to what extent patterns may be discerned. It provides frame of reference for the analysis of Jamaica. The political system is dominated by two parties—the Jamaican Labour Party and the People's National Party. The price of Jamaica's most important export product, sugar, fell rapidly during the 19th century, much because of the competition from German beet sugar. After the First World War, most overseas outlets for laborers were closed or restricted and the Great Depression in the US and Europe affected Jamaica as well. The chapter also presents an overview of the key concepts discussed in this book.