Jamaica Homes Global Conflict & Caribbean Impact Review | Published 3 October 2020 | Reporting Period: 3 July – 2 October 2020
Quarterly Briefing
- Beirut’s port is devastated by a massive ammonium nitrate explosion on August 4, killing 218 people and injuring 6,000; Lebanon’s government collapses.
- Belarus’s Alexander Lukashenko claims re-election on August 9 in a vote the opposition and Western governments say was fraudulent; mass protests follow.
- The UAE and Israel sign the Abraham Accords on August 13, normalising relations and marking the first Gulf-Israel diplomatic breakthrough in decades.
- President Trump tests positive for COVID-19 yesterday, October 2; the White House cluster adds to global uncertainty ahead of the US election.
- COVID-19 continues to devastate Caribbean tourism; Jamaica’s visitor arrivals are down more than 70 per cent year-on-year.
- Hurricane season 2020 becomes one of the most active on record; Laura strikes Louisiana as a Category 4 in August.
Prologue: A Quarter of Simultaneous Emergencies
The third quarter of 2020 was dominated by the COVID-19 pandemic but was not defined by it alone. The world found capacity — barely — to generate other catastrophes alongside the ongoing pandemic: a chemical explosion that levelled the port of Beirut and killed hundreds in a city already broken by economic collapse; a fraudulent election in Belarus that triggered the country’s largest popular uprising in decades; a diplomatic breakthrough between the United Arab Emirates and Israel that reshaped Middle Eastern alignments; and one of the most active Atlantic hurricane seasons in recorded history. As this edition is published on 3 October, news is breaking this morning that President Donald Trump has tested positive for COVID-19 — an event that will dominate political attention in the world’s most powerful country for the thirty-one days before its presidential election. For Jamaica and the Caribbean, the quarter’s most immediate economic reality was the continuing near-total collapse of tourism and the sustained test of whether remittances and government support measures could sustain households through an unprecedented income shock.
Beirut: The Explosion That Broke a Broken Country
At 6:08 p.m. on 4 August 2020, a fire in a warehouse at the Port of Beirut ignited approximately 2,750 tonnes of ammonium nitrate that had been stored there, unsecured and without precaution, for six years following its confiscation from an abandoned cargo vessel. The resulting explosion was one of the largest non-nuclear explosions in history: it killed 218 people, injured more than 6,000, left 300,000 homeless, and destroyed approximately a third of Beirut, including all of the port’s grain silos — destroying 85 per cent of Lebanon’s grain reserve. The blast created a crater 140 metres wide and was felt in Cyprus, more than 200 kilometres away.
Lebanon had already been experiencing its worst economic crisis since the 1975–90 civil war: the currency had collapsed by more than 80 per cent, banks had frozen deposits, unemployment had risen sharply, and the government was technically insolvent. The Beirut explosion added physical destruction to economic ruin and political dysfunction. Lebanon’s government resigned days after the blast. The Prime Minister-designate who followed lasted less than a month. IMF negotiations, which might have provided financial stabilisation, stalled as political factions could not agree on the structural reforms required. As this edition is published, Lebanon is effectively without a functioning government and without a clear path to recovery.
For the Caribbean, Lebanon’s collapse was a cautionary tale about the consequences of sustained political dysfunction in the face of economic crisis. Caribbean nations, several of which carry significant public debt and face their own COVID-driven fiscal pressures, watched Beirut’s tragedy as a reminder of how rapidly a cascade of failures — political, fiscal, institutional — can translate into physical catastrophe. Lebanon’s experience also had a direct remittance dimension: the Caribbean has large Lebanese-origin diaspora communities, particularly in Trinidad, Guyana and Colombia, whose family connections to Beirut created immediate humanitarian concern.
Belarus: Europe’s New Crisis of Democracy
On 9 August, Belarus held a presidential election in which official results claimed Alexander Lukashenko had won 80 per cent of the vote. The main opposition candidate, Sviatlana Tsikhanouskaya, whose husband had been jailed to prevent him from running, received an officially reported 10 per cent. Independent observers and the opposition rejected the result as fraudulent. Tsikhanouskaya fled to Lithuania after being detained and pressured. Within days, hundreds of thousands of Belarusian citizens took to the streets in the largest protests in the country’s post-Soviet history. Lukashenko called on Russia for support; Putin pledged to provide military assistance if necessary. By October, the protest movement had continued for nearly two months despite arrests, beatings and the detention of thousands of demonstrators.
For Caribbean governments, Belarus’s crisis was a test of the principles that Caribbean diplomacy has consistently applied: that elections must be free and fair, that outcomes rejected by credible independent monitors undermine political legitimacy, and that citizens’ peaceful protest rights are fundamental. Belarus’s European neighbours imposed sanctions. CARICOM’s public statements aligned with international norms on democratic legitimacy. The Belarus crisis also reinforced Russia’s willingness to sustain authoritarian partners on its borders — a pattern that would manifest even more dramatically in Ukraine eighteen months later.
The Abraham Accords: A New Middle East Alignment
On 13 August, the United States announced that the United Arab Emirates and Israel had agreed to normalise diplomatic relations, with a formal signing at the White House on 15 September. Bahrain joined the normalisation on the same day; Sudan and Morocco followed in subsequent weeks. The Abraham Accords represented the first formal Arab-Israeli peace agreements since Jordan’s 1994 treaty and the second since Egypt’s 1979 peace with Israel. They were brokered by the Trump administration as a diplomatic achievement to highlight before the US election.
For Caribbean oil markets, the Abraham Accords were potentially significant in their long-term implications. A more stable and economically integrated Middle East — with the Gulf states and Israel trading, investing and cooperating on security — could reduce the chronic instability premium built into oil prices. Palestinian leaders, who were not consulted, rejected the accords as a betrayal; questions remained about whether normalisation without Palestinian sovereignty would prove durable. For Caribbean diplomacy, the accords created pressure to navigate between support for Israeli-Arab reconciliation and longstanding support for Palestinian statehood.
The Hurricane Season and Caribbean Exposure
The 2020 Atlantic hurricane season, already the most active on record, produced twenty-five named storms and nine hurricanes by the beginning of October, exhausting the standard alphabet of storm names for the first time since 2005. Hurricane Laura made landfall in Louisiana on August 27 as a Category 4 storm, causing severe damage. For the Caribbean, the season brought significant concern and some direct impact, particularly in the Lesser Antilles and Cuba. The compounding of hurricane risk with COVID-19’s tourism collapse meant that any storm making a direct hit on a Caribbean island would encounter tourism infrastructure already depleted by the pandemic and governments with significantly reduced fiscal capacity to respond.
Jamaica: Tourism Collapsed, Remittances Resilient
Jamaica’s tourism sector remained effectively closed through Q3 2020, with visitor arrivals down more than 70 per cent from the equivalent period in 2019. The resort parishes — Montego Bay, Negril, Ocho Rios — that had been Jamaica’s economic engine for decades were operating at a fraction of normal capacity, with significant unemployment among hotel workers, ground transport operators, tour guides and the vast informal economy dependent on visitor spending. The government maintained support measures for displaced workers and worked to develop COVID protocols that might allow a partial opening for the winter 2020–21 season.
Remittances from the Jamaican diaspora continued to provide a vital economic cushion. The United States government’s CARES Act stimulus payments and expanded unemployment benefits had bolstered diaspora household incomes even as the US economy contracted sharply. Jamaica received approximately $2.5 billion in remittances in 2019; 2020 flows were tracking at comparable or higher levels despite the pandemic, a resilience that defied pre-crisis forecasts. The housing market benefited: diaspora home purchases, particularly in Kingston and the resort parishes, maintained construction activity at a time when most other economic drivers had stalled.
Looking Ahead
The fourth quarter opens with the United States thirty-one days from a presidential election of historic consequence for Caribbean relations, global climate action and multilateral engagement. President Trump’s COVID-19 diagnosis this morning adds a new uncertainty to an already volatile pre-election environment. For the Caribbean, the most critical near-term question is whether COVID-19 will be contained enough in source markets by November to allow a partial winter tourism season. Vaccine clinical trials are in their final stages; preliminary results from Phase 3 trials are expected within months. The end of the pandemic is visible, even if its timeline remains uncertain. The question for Jamaica is whether the economy can endure through 2020 and into the first half of 2021 with the structural foundations intact for the recovery that must eventually come.
Jamaica Homes Global Conflict & Caribbean Impact Review is published quarterly, examining how wars, geopolitical tensions and major international crises have shaped Jamaica, the Caribbean and their economies.
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