Jamaica's 1970s bauxite production levy is a case of policy (not institutional) damage: although an international tribunal ruled there was no illegal expropriation, the multinational bauxite companies 'voted with their feet' and Jamaican bauxite production never recovered, showing that arbitrary tax-regime uncertainty deters investment even where property rights are legally upheld.

causalpending

Speaker

Peter Henry

Evidence Quote

it's fairly widely accepted that this was a kind of direct response by the multinationals to essentially the imposition of uncertainty

Source

Peter Henry on Growth, Development, and Policy 07/27/2009EconTalk
Created: 6/17/2026, 10:31:29 AM

My Notes

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