P ECON350I SECTION A Answer ALL questions from this section. CASE STUDY CREATE TAX HAVEN FOR CREATIVE INDUSTRIES In the 2018 September 16 edition of The Sunday Gleaner, noted Jamaican lmmaker, Lennie Little-White, proposed that unemployment and underemployment were root causes of Jamaica's escalating crime. He argued that to break this link, and to nd new and exciting work opportunities with better pay, we would have to be bold and think outside the box. This, he believed, would also stop the 'brain drain' of our best and brightest who leave Jamaica in droves. And line staff in tourism, eld workers in agriculture, call-centre agents in BPOs, and those employed in manufacturing and merchandising who earn low salaries, would also stand to benet. Lack of employment opportunities lead to the pervasive practice of scamming and petty crimes and there is no tax or limit on ill-gotten gains. LittleWhite suggested that creative industries could be the catalyst, as they could be the umbrella not just for people in the Visual and performing arts, but for a wide spectrum of professionals, including architects, Video-game designers, animators, lm-makers and attorneys who specialise in copyrights, trademarks and publishing. Mr White felt that Jamaica should create a tax haven for practitioners in creative industries to encourage them to repatriate their foreign exchange earnings via our registered commercial banks under a scheme regulated by the Bank of Jamaica. This is not new idea, he said, as a prototype already exists in Ireland. A range of mandatory controls and conditions should be implemented to ensure that only sanitised and legitimate earnings are brought into Jamaica. This tax haven should also be open to non- Jamaicans who are prepared to acquire property in Jamaica and reside here for at least ninety accumulated days in any calendar year. This would also spur our home-grown music stars to pull funds parked in bank accounts in New York, Florida, London, Bermuda and the Cayman Islands. Finally, he said that doubters should note that, in the past, tax incentives were given to hoteliers, manufacturers and bauxite companies. He then suggested that whenever the IMF Agreement (which frowns on tax exemptions) with Jamaica ends (most likely in 2019), we could use this revolutionary approach to spur growth and create jobs for young people. -Lennie Little- White (edited) 18/12 The Council of Community Colleges of Jamaica Page 2 18/12 ECON3501 Give FOUR (41 examples of creative industries and state why creativity is important. (4 marks) Why are young persons (under 30) better suited as key participants in creative industries? (6 marks) What is meant by 'brain drain'? (2 marks) Comment on signicant problems which could work against the full impact of the benets of creating a tax haven. (8 marks) (Total 2 0 marks) END OF SECTION A The Council of Community Colleges of Jamaica Page 3 ECON3501 SECTION B Instruction: In the booklet provided, answer any TWO (2) questions from this section. Question 1 A. Economic Growth and Development are the same thing. Assess the validity of this statement. (10 marks) B. Elaborate on FIVE (5) constraints of economic growth in any Caribbean country of your choice. (20 marks) (Total 30 marks) Question 2 Trader free Barriers, Custom Union, Economic Productrally & Custom Market A. Briefly describe FIVE (5) stages of Regional Economic Integration. (5 marks) B. Outline different attempts at regional economic integration by Caribbean economies. (15 marks) C. Assess W.A. Lewis' Two-Sector Model of Development for the British West Indies. (10 marks) (Total 30 marks) 18/12 The Council of Community Colleges of Jamaica Page 4ECON3501 Question 3 The following information indicates the HDI scores for selected CARICOM states for 2017: Country HDI Guyana 0.654 Barbados 0.800 Belize 0.708 Trinidad and Tobago 0.784 Jamaica 0.732 Bahamas 0.807 Source: Human Development Index Indices and Indicators 2018 Statistical Update A. i. Define 'Human Development Index'. (3 marks) ii. Explain the main purpose of the HDI, when it was established in 1990. (4 marks) iii. Discuss how the HDI is calculated and used to rank countries. (8 marks) B. From the data, which country would you consider: i. the most developed? Why? (3 marks) ii. the least developed? Why? 3 marks) C. Suggest THREE (3) strategies that the least developed country could use to improve its ranking. 9 marks) (Total 30 marks) creating new craft & tools Question 4 New Ideas file, i data A . Differentiate technology invention, technology innovation and technology transfer. (6 marks) B. Discuss FOUR (4) ways in which technology is a driver of economic development of Caribbean economies. (12 marks) C. Explain THREE (3) UN millennium goals and say to what extent these have been achieved by economies in the Caribbean region. (12 marks) (Total 30 marks) END OF EXAMINATION 18/12 The Council of Community Colleges of Jamaica Page 5