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News

West Kingston violence last May cost $22-b

May 2010 unrest cost country billions

BY STEVEN JACKSON Observer staff reporter jacksons@jamaicaobserver.com

Monday, May 23, 2011



TWENTY-two billion dollars, that is the final price tag on the cost to the country's economy of the West Kingston civil unrest last May, according to data published by the Planning Institute of Jamaica (PIOJ) last month.

Just over 70 persons were killed, several more injured and the manufacturing and tourism sectors bore the brunt of the initial economic fall out from the efforts by agents of the State to capture then-fugitive Christopher 'Dudus' Coke.

"The impact of the unrest on the economy was estimated at $22.6 billion or US$258.8 million. This was determined by, among other factors, the severity and duration of losses to affected sectors and activities, the cost of physical assets damaged, and the extent of contingency spending associated by its impact," stated the Economic and Social Survey 2010 published this April by the PIOJ.

This recently released document mirrors data in the agency's earlier report on the Macro Socio-Economic Effects of the events in the West Kingston area, released in October 2010.

In that document the PIOJ noted that, "...while Western Kingston was the locus of the event, several other communities were severely affected in terms of livelihoods lost and dried up liquidity due to their symbiotic relationship with Western Kingston".

The report, which relied on data collated between May 22 and June 7, said: "The primary affected population (two per cent) was found in the parishes of Kingston and St Andrew, in an area collectively defined as the Western Kingston Area comprising Denham Town, Central downtown (Kingston), Tivoli Gardens, Fletcher's Land, Hanna Town and West Downtown. Together, these communities possessed a population of some 39,332 persons.

"Some 41 per cent of that population could have been found in the community of Tivoli Gardens, which was the home of Christopher 'Dudus' Coke," the October 2010 report read.

It defined the secondary population as those who formed part of the employed labour force who worked in the parishes of Kingston and St Andrew and who accounted for 11 per cent of the population which was comprised of persons employed to the public sector (12 per cent), and the remaining 88 per cent to the private sector, hence the major fallout in the latter.

"Other segments of the population were affected as well, such as farmers in rural communities whose sale of goods through Coronation Market was disrupted," according to the report. Between 50 and 75 per cent of the market was destroyed by fire, leaving an estimated 300 vendors without income for two weeks, as a limited state of emergency imposed after gunmen loyal to Coke started attacking police and soldiers served to severely restrict the movement of persons and goods in that area. Arrangements were eventually made for the relocation of the affected vendors to nearby markets such as the DC Tavares Market in the Three Miles area, where they could continue their trade.

The PIOJ surveyors conclude that 349,674, or some 13 per cent of Jamaica's population may have been directly affected by the events.

As was to be expected, the productive sectors suffered the bulk of the losses (93 per cent), with tourism taking the biggest hit from the loss of business and from having to find huge sums to spend on marketing and advertising to encourage visitors to return to the island. This was after travel advisories told them to stay away just ahead of the police/military operation on May 23.

Last July, the tourism industry said it urgently needed another stimulus package from the Government to recover from the battering it had endured.

Wayne Cummings, head of the Jamaica Hotel and Tourist Association (JHTA), noted that the Government's injection of US$10 million to boost advertising efforts was up against an estimated US$350 million fallout caused by the Tivoli incident which shut down the country's capital for more than three days.

PIOJ data indicated that total tourism arrivals reached 2.8 million in 2010 or 100,000 higher than in 2009; whilst foreign exchange earnings from tourism totalled US$1.99 billion, or 3.4 per cent higher year on year.

The PIOJ report also said that the distribution sector suffered 3.5 per cent of the impact, the infrastructure sector suffered 4.8 per cent of the total impact, with the bulk of the fall-out being in transportation, reflecting, in part, the disruption of operators on routes out of Kingston.

"Productivity losses represented 0.9 per cent of the total and stemmed from morbidity and loss of life, social distancing resulting in lost labour productivity," read the October 2010 report.

Business leaders told the Observer a month after the unrest that the stand-off between security forces and thugs in the city's western end left downtown businesses with losses of at least $100 million.

The costs to the health sector, the PIOJ report concluded, were US$1 million or approximately J$86.5 million.

"Not all costs were captured, such as costs of mounting the mobile health clinic," states the report.

It also tabulates the fallout in communication services as amounting to US$2.6 million.

Initial estimates for the cost of security operations was US$2.7 million, comprised of US$1.5 million for the Jamaica Constabulary Force and over US$1 million for the Jamaica Defence Force, plus US$0.16 million for the Office of the Public Defender.

Estimates of damage and losses incurred by the JCF during the civil unrest amounted to J$127 million and is further broken down into damage arising out of destruction of property — which accounted for 79 per cent. Included in this figure is the over J$70.5 million in losses at the Hannah Town Police Station, which was burned to the ground by gunmen; the J$10 million in damage to the Darling Street Police Station, and the J$4.2 million in damage caused to the Denham Town, Cross Roads and Kingston Central police stations.



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COMMENTS (15)

mike wayne
5/23/2011
@ mike willy, how u so fool fool? 5 + 5 = 10... d man take 3 half year to mush up d place and u want to give him 5 more, i never see a set of incompetent bunch of looser & to the truth God don't want this man to be the leader of the country
3 & a half ago the country was in better possession for growth remember audley shaw word that the recession wont affect us, now that it do it is the PNP fault...Proverbs 12:22 The LORD detests lying lips, but he delights in men
Jakan 2011
5/23/2011
Well there would be none of this had those who were NEVER elected to represent the people (be govt) had not usurped the government and almost brought civil unrest that forced the AG to abandon her duty owed to EVERY Jamaican and sign an illicit extradition request that caused mayhem in the country. If any asset is to be seized to repay it must be that of JFJ, Council of churches and PSOJ.. They were the loudmouths who UNLAWULLY took over Ja's governance.
Dudus was forced to fight for his right
Chef Chef
5/23/2011
Well, some of the Don money should be used to offset the cost. and some accountability is needed, if no one is held accountable it will just confirm to the world that if you are in politics in Jamaica you are Immune to prosecution.
I must say though that the crime has really gone down.
Rena Acart
5/23/2011
Well said George Watson
rohan thompson
5/23/2011
well thats a large figa. Until we the people realize that hugging up with politicians and supporting corruption is not good for us, things like this will and forever continue. I dont believe this 22 bil is on the head of the gov. I think it's on us all, cuz when the time came to do something about it we didn't. Let this be a lesson to us and future generations. May God help us.
mike willy
5/23/2011
Bruce talks with 2 mouths, he is far from the best of leaders, yet still, he seems to be making some improvements. I would give him one more term to complete clean up of the crime situation. The majority of readers may not agree with me, but at the same time every man/woman is entitled to their own opinion.
Kay Kay
5/23/2011
Well said Jay Brown, I agree with you 100%.
Jerry Berman
5/23/2011
Well, let us seize ALL the assets of the extradited Don and use the proceeds to offset the cost to the Government. What are we waiting on, for the US to come calling and enter a Forfeiture Order and then Jamaican people are left with nothing? As far as I am concern, the thug committed various crimes in Jamaica before the coward hastily extradite himself.....I know, wishful thinking...
John Smith
5/23/2011
Look at it this way people: 40+M dollars for the COE was not that much after all. :-) No problem mon, look pon di bright side. :-) Glass 0.0001% full, not 99.9999% empty. :-)
Wanda, Jamaican political parties seem to cling to their liabilities. This must be because stupid voters can't recognise a liability when they see one. Either that or people are expected to vote for the lesser evil.
Chuck Emanuel
5/23/2011
Has anyone been held ACCOUNTABLE to date ?. Yet these die hard apologists of corruption has the audacity and temerity to suggest the we "move on", instead of ensuring that the criminal aiders and abettors involved are held Accountable. Instead, their mantra is to point else where !
If we cannot hold these scum-bags accountable, they will be held accountable by someone else !
george watson
5/23/2011
Renato Adams said it. "The country will pay dearly for this day."
Well we are at a minimum of 73 lives and $22-b and counting.
How prophetic.
Jay Brown
5/23/2011
Lets all learn a lesson here and going forward, supporting criminal behaviour can be very expensive.
Never again should we allow any government to take comfort in setting up a second state in Jamaica that cannot be subjected to the laws of the country.
Lets remove support from any and every politician that supports the criminal network whether they belong to our party or not.
Let the change start with us
Anthony C
5/23/2011
Back in 2001 Renato Adams predicted Tivoli would cost Jamaica darely.The answer was that the PNP and police was taking set on Tivoli people because no guns was inside Tivoli but now that fowl as come to roose it's one step forward and 22-b steps backward.police,teachers, nurses and air traffic controllers need their money,therefore the people of Tivoli better don't expect 22-b to spend on them after so many of them were willing to die for who they were calling Jesus.
wanda woeman
5/23/2011
It seems that it was not only the PM who is paying dearly but the country as well.
Why doesn’t he just go? Doesn’t he realize that it is only the diehard laborite who would shamefacedly want him to stay? You should just hear what they say behind his back.
This man destroys everything he comes near. He has totally destroyed the reputation of this country, to the extent that we now need a visa to go everywhere; and can anyone just imagine that he could afford to pay the public servants if the country didn’t have to go through this $22-b devastation. Can’t the members of his party see that he is now a liability to them?

wanda woeman
5/23/2011
To the talk show host and others who foolishly try to divert attention away from this debacle by comparing it to Trafigura, I have only two questions for them. How many people died as a result of Trafigura and how much did it cost the country?
Yesterday I told my husband that for sure we will see the headline in this morning’s paper, following yesterday’s expose –“Prime Minister Resigns.” Seems like I was wrong again.
This man has no shame and he is taking down Bustamante’s once noble party with him.

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