Taino Heritage

Seems like the 'budget' is on its way to the shredder already:

Golding made it clear that his administration agreed with the IMF that, with the dramatic fallout in revenue, its spending plans have to be revised.

At the end of June, the Government's revenue for the fiscal year was 11 per cent below budget and seven per cent below the corresponding period last year, Golding disclosed.

He admitted that this has placed the Government off course in meeting its fiscal deficit target of 5.5 per cent and forced it to cut expenditure.

In fact, Golding admitted that the Government would have to present clear plans to keep the deficit in check if it wants to qualify for the US$1.2 billion standby arrangement with the IMF.

On Wednesday Finance Minister Audley Shaw made it official. Government of Jamaica will be entering a borrowing relationship with the International Monetary Fund (IMF) this year. Jamaica has had a long and troubled history with the multilateral agency, and the even the every mention of the IMF conjures up negative images and memories. I can remember former Prime Minister, P.J. Patterson in a celebratory mood when he announced Jamaica's departure from the IMF as a borrowing member, waving a handkerchief and saying "Ta-Taa IMF"(a bit a political theater he performed two years in a row at consecutive PNP conferences). Though we waved the IMF goodbye, we were still left with the conditions and policies which lead us to the IMF in the first place. So here we are fourteen years later back with our friends from Washington D.C..

Minister Shaw's announcement, has resulted in a deluge of articles about the IMF in this Sunday's (7/26) major newspapers. Seems like everyone has something to say about it. Yes, I did read them all and yes, I need to get a life and find something better to do with my Sunday afternoon.

Here's the breakdown:

Claude Clarke thinks returning to the IMF could be a good thing. He argues that the IMF could finally force the government to make well needed adjustments in economic policy. Policies which the JLP administration continued seamlessly after taking power in 2007.

Martin Henry argues that Jamaica's economic problems cannot be blamed on its past relationship with the IMF or the current global economic crisis. He suggests that the Jamaican economy has been in recession for a generation, and has become even more indebted since leaving the IMF.

Gender and Development Consultant, Dr. Glenda Simms, implores the government not to allow women and girls to bear the brunt of the economic downturn, as they always do.

Dennis Morrison speaks about the impact of the decline in tourism as a driving force behind Caribbean countries going to the IMF.

Ian Boyne firmly states that there is no other option at this time but to go to the IMF, and those who suggest otherwise are living in a fantasy world. Boyne suggests that there is no way to recover the revenue lost this year and IMF funding would also open up access to other multilateral sources of funding as a result of IMF 'seal of approval.'

Robert Buddan reports on the various alternative to the IMF that were presented at a recent PNP economic forum.

Former Financial Secretary Colin Bullock solidly reinforces 'in the box' thinking in a depressing, fatalistic article about economic policy. He presents a rationale for why we cannot make helpful policy changes, such as reducing interest rates or implementing tax reforms, all while admitting how destructive these policies have been! This guy was the chief economic policy civil servant in the government? Yikes!

Don Robotham is not a fan of the IMF or the prevailing market fundamentalism that dominates neo-liberal economics. He argues that the government should ensure that the poor is provided for while negotiating with the IMF and not simply accept destructive IMF conditionalities, which usually requires drastic cost cutting.

Claude Robinson: raises the relevant issues about the implications of a new IMF agreement on the general public.

John Maxwell thinks that the IMF is an evil, racist organization who's sole purpose is to destroy Third World countries.

I commend to this insightful article from the Gleaner's "The People's Business" in the Sunday Gleaner (7/19). The writer, speaks strongly, taking Jamaica's Parliamentary leaders to task for the astonishing lack of leadership in these troubled times. Here are a few quotes:

Without a doubt, we believe that in its current form, the sectoral ought to be abandoned. We need to come this time with a debate that takes place in a national context of recovery, development and growth.

These are no ordinary times. We don't have the luxury of cutting the cloth to suit our size. The country's unflattering balance of payment and its dried-up pool of revenue are enough evidence to suggest that a hurricane is blowing, and that now, more than ever, we have to be prepared to wear pickney shirt.

We would like to see a new debate - a debate structured in a way where the Parliament picks five critical issues of national importance and carefully debates and crafts policies for the implementation of solutions.

The roles of MPs in this new dispensation would not be to grandstand. Instead, they would be asked to share best practices of things implemented in their constituencies, and to suggest alternatives to approaches.

Amen!

• Stepping Down: Joseph Hibbert does the decent thing and steps down.
  

• Not Stepping Down: BOJ Governor Derick Latibeaudere is not going to do the decent thing and remains in charge of the BOJ.

• Tourism Creates Shadow Government: The Tourism Enhancement Fund (TEF) is now to be used to pave a highway and install streetlights. TEF chairman is quoted as saying, "It enhances the tourism project, anything that enhances the tourism project is within its purview." (emphasis mine). Can't wait till they start using this thing to create the Tourism Enhancement Police Force and the Tourism Enhancement Parish Council.
  

• The dog ate my homework! Harry "Bungles" Daley comes up with an absolutely incredible defense against corruption charges laid against him. How did his lawyer say this in court with a straight face?
  

• ...And the runner up is... : PNP wins consolation prize.
  

There is a wonderful feature in the Sunday Gleaner (7/12) called "The People's Business." In it, Parliamentary Reporter Daraine Luton writes vignettes from presentations made by M.P.s in Gordon House during the Sectoral Debate.

One of the three presentations featured this week,was that of the MP from North West Clarendon Michael Stern. Mr. Stern is one of the Government MPs who's eligibility is being challenged by the Opposition because he holds dual citizenship and based on the court's past decisions, it is almost certain that Mr. Stern will have to face the electorate again in a few weeks.

In anticipation of a by-elections, Mr. Stern chose to use his opportunity to speak in Gordon House, to launch his re-election campaign. Here is a litany of his many achievements:

He told the House that he had distributed 30,000 chickens, 36 bee colonies, equipment and 40 goats. He also pointed to the distribution of over 8,000lbs of ginger plants and 1,000 tissue culture plantlets for the Top Alstron ginger project.

Stern said that he spent a whopping $18 million for the purchase of 80 computer systems and equipment for the Edwin Allen and Claude McKay high schools.

He also pointed to several other instances of community development and intervention programmes that had been put in place since he was elected in 2007.

Stern, however, did not highlight aspects of his achievements, which were contained in his prepared speaking text. These achievements include assisting over 200 families with funeral grants and his attendance at over 230 funerals.

Conspicuously absent from this list is any mention of legislation he introduced to the floor, his stance on issues of national policy, like say Jamaica's anticipated return to the IMF or the new energy policy. No mention of his work on a Parliamentary Committee, or ways in which his contribution has led to: saving tax payer money, reducing the debt burden, or improvement in the delivery of a government service. Nothing about health care, education, national security, trade, CARICOM...ok I think you get the picture.

There needs to be a serious discussion in Jamaica about the role of parliament. The status quo of having MPs rubber stamp the the secret works of the Cabinet while handing out goats and attending funerals is just not going to cut it. Jamaica's democracy needs to mature, MPs ought to be involved in serious legislative work. They ought to be delving into the business of national governance and helping to chart a course for the future of the country. The people of North West Clarendon would have been much better served if Mr. Stern were spending his time working on policies that would stabilize the Jamaican dollar and reduce interest rates; so that small farmers could go a to a local bank and get a loan to buy their own chickens. They would have been much better served if he were to putting his mind to tackling the crime problem, instead of offering to help pay for the casket and the programs at the funeral.