Jamaica appears to be approaching the 50th anniversary of its independence in a state of virtual debt bondage and IMF trusteeship. Mark Weisbrot argues that the austerity programme being imposed on the country, and on the eurozone countries, will push these economies even further into recession and ultimately make it harder for them to service their debts.
“The paper notes that Jamaica remains one of the most highly indebted countries in the world, and that its interest payments as a percent of GDP were higher than anywhere else in the world in 2011, including even crisis-stricken countries in the eurozone. Jamaica’s large debt burden has displaced most other public expenditures, taking up almost 50 percent of total budgeted spending over the last four fiscal years while health and education have been only around 20 percent combined.”
It has been suggested that as much as 70 percent of Jamaica’s public debt may be illegitimate., The following is a list of twenty-one questionable projects and dealings which need investigation. It is by no means exhaustive, but there is a pattern which suggests recklessness and lack of accountability for the spending of public funds…
Webmaster’s note: as Jamaica faces yet another round of austerity measures in a desperate attempt to get back on track with its latest IMF programme, a call has been made for debt repudiation backed up by an audit of its national debt. While we do not agree with everything in Lloyd D’Aguilar’s article, we share the view that a rebuilding of Jamaica’s shattered social infrastructure and the achievement of sustained economic growth will not be possible without substantial debt restructuring to reduce the crippling burden of its national debt on the public finances and on the national economy.
I thank the Chamber of Commerce of St Kitts-Nevis for inviting me to speak on the nature, prospects and challenges of an IMF borrowing arrangement. The timing is opportune as I understand that St Kitts-Nevis has recently concluded arrangements for a Standby Borrowing Arrangement with the IMF and Jamaica signed a similar agreement some 16 months before…
From The Guardian, UK, 22 July 2011
Some have pointed to the Jamaican debt restructuring of last year as a model for Greece…It is worth a closer look at what has been done to Jamaica, not only as a warning to Greece, but to shed some light on the damage that can be done when “the international community” is willing to sacrifice a country for the sake of creditors’ interests…
IMF Agreement Could Worsen Debt Burden, Harm Health and Education
Published by the Center for Economic and Policy Research in Washington, D.C., this paper finds that Jamaica’s economic and social progress has suffered considerably from the burden of an unsustainable debt; and that even after the debt restructuring of 2010, this burden remains unsustainable and very damaging. Pro-cyclical macroeconomic policies, implemented under the auspices of the IMF, have also damaged Jamaica’s recent and current economic prospects…
We commend the efforts of the Minister of Finance in coming to grips with some of the most difficult problems in the economy (but) relentless efforts must be made to root out corruption, non-performance and waste in the society as well as crime. Civil society and the Trade Unions have to become fully engaged in the co-management of the economy and see to it that every initiative announced through the Budget is implemented without delay…
Presentation to Department of Economics, UWI, Mona, Seminar, May 7, 2009
Recurrent Expenditure is
- rising as a share of total expenditure : the share of capital expenditure is falling;
- rising faster than revenue and grants., It has been as much as double revenue and grants, and currently is more than 50% greater
- Rising faster than GDP, and therefore the percentage with respect to the GDP is rising
–Interest payments, particularly on domestic debt is the largest and fastest rising component of recurrent expenditure
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Presentation to Department of Economics, UWI, Mona, Seminar, May 7, 2009
Click here for full presentation
Related
Presentation to Department of Economics, UWI, Mona, Seminar, May 7, 2009
Ministry Paper 26/09 which outlined nine tax measures: Increase the General Income Tax Threshold ; An adjustment in the Threshold applicable to Pensioners; Removal of Personal Income Tax Preferences ; Reduction in rates of Stamp Duties and Transfer Tax ….
