IV. POLITICAL ENVIRONMENT Bilateral relations between Jamaica and the United States are good. The two countries occasionally disagree over issues such as Cuba, but on most other important issues such as the return of democracy to Haiti, Jamaica has agreed with US objectives and supported them. Violent crime is a concern to the whole society, and the government has not been able to curb it. Crime is fed by poverty, hard economic times, and the drug trade. Other major political issues primarily relate to the economy. These issues include how to bring down the high rate of infalation and how to ensure stability in the exchange rate. While the government has been successful with the latter (the rate has remained at JDOLS 33: 1 USD since December 1993), inflation is projected to be between 30 to 40 percent for calendar year 1994. In addition, the Government is struggling with a high debt burden which is pulling scarce resources away from badly needed social services. Jamaica is a member of the British Commonwealth and follows the Westminster Parliamentary model. The head of state is the Governor General, representative of the Queen. The Prime Minister, leader of the majority in the elected House of Representatives, is the head of government. The Prime Minister may call general elections at any time, but in no case later than five years after the previous election. There are two major political parties, the People's National Party (PNP) and the Jamaica Labour Party (JLP), which have alternated in power since independence in 1962. Differences in orientation between the two parties have declined steadily since the 1970's, and ideologically they are now virtually indistinguishable.