Research on the relationship between crime and the economy in Jamaica found two key links. One is that crime directly retards economic growth. The second is that the high rate of violent crime, apparently connected to high levels of interpersonal trust and low levels of confidence in the organs of the State - the olice and court system - heightens transaction costs and therefore diminishes economic activity. Given the apparent connection between violent crime and the loss of confidence in the state, an effective strategy to tackle crime thereby necessitates a restoration of this confidence.