BASSETERRE, St Kitts, CMC – A one-day meeting of the Regional Security System (RSS) got underway here on Friday with Prime Minister Dr. Denzil Douglas expressing concerns over the escalating criminal activities across the Caribbean.
“You cannot divorce the challenge that the RSS faces from the financial situation the region faces as well as violence and crime. This meeting is critical because the RSS can be called upon to rise to the challenges with so little financial resources and so we must examine the programme before us and look within the context of the realities of the financial situation,†said Douglas.
In his brief remarks to the meeting, Douglas, who is also the Chairman of the RSS Council of Ministers, said despite the financial situation, there should be no duplication in the role of the RSS in the context of the Caribbean Community (CARICOM) Security framework.
A proposed Organisation of Eastern Caribbean States (OECS) police service and the integration of the RSS within the CARICOM security framework are among the agenda items for the one-day meeting that is being attended by Barbados Prime Minister David Thompson, his Grenadian counterpart, Tillman Thomas and the national security ministers from the RSS member countries.
Governor of the Eastern Caribbean Central Bank (ECCB), Sir Dwight Venner made a presentation to the meeting regarding the OECS police service.
The Council will also discuss the proposed RSS Vetting Policy, the development of anti-corruption strategies for public servants in the RSS member countries as well as a training academy and Caribbean-US security arrangements.
The upcoming International Cricket Council WT20 championships to be held in the West Indies and the RSS’s annual budget will also be discussed.
By COHA Research Associate Ritika Singh
The 7.0-magnitude earthquake that devastated entire sections of the Republic of Haiti on January 12th intensified an already unbearable burden for the small Caribbean country. Described by the Inter-American Development Bank, without hyperbole, as “the most destructive natural disaster in modern times,†the Port-au-Prince earthquake and its aftershocks have left approximately 230,000 Haitians dead, displaced more than 1.2 million people, and generated an estimated $14 billion in damages.
Plagued by abject poverty and political instability for most its history, Haiti remains perpetually ranked as the most unqualifiedly destitute nation in the Western Hemisphere. Meanwhile, President René Préval continues to be engulfed by international criticism as well as much abuse at home for demonstrating a breathtaking failure in leadership at a time when his country desperately required a firm hand.
Immediately following the earthquake, Préval disappeared from the public arena, and instead of taking control, he chose to all but totally shy away from a decision-making role.
In the aftermath of his nation’s tragedy, President Préval repeatedly was criticized for failing to show leadership in a time of awesome catastrophe. According to Amy Wilentz, at the University of California at Irvine, “President René Préval of Haiti is odd… his reaction to the destruction of his country is to walk around with his shoulders down, like a beaten dog.â€
Similarly, Ludovic Comeau, a former chief economist at Haiti’s central bank, said “He just doesn’t have what it takes,†in response to the president’s languorous and demonstrably ineffectual reaction to his county’s calamity. Préval’s elemental competency as president indeed has been called into question, both among Haitians and from all corners of the international community.
Plummeting Leadership Qualities
At a mass grave for earthquake victims, mourners railed against Préval, telling reporters that his pathetic behavior was as “expected†and that the country needed “someone competent to take charge.†In a country as fragile and ripped apart as Haiti, Préval’s primary aim should have been to reassure and unite his people when they were suffering most and required constant reassurances.
Instead, his invisibility, if not quietism, has triggered anger and resentment among the ranks of a legion of current critics, further exacerbating an already spear-headed political situation.
From the beginning of the crisis, COHA was told by Préval’s battalion of critics that he has turned out to be a totally inept emergency leader (for a country undergoing the most severe emergency in its history). One can think of almost no country in the world that would have so pathetically handled its post-earthquake situation, while it appeared to be totally paralyzed.
Préval and Aristide: An Ancient Relationship Gone Sour
René Préval spent the majority of his political career linked to former President Jean-Bertrand Aristide with Aristide repeatedly being described by average Haitians as “a fiery populist demagogue who could command Haiti’s poor masses as firmly as Moses did the Red Sea.â€
Aristide had electrified the country with his 1990 presidential campaign and then went on to win the election by an overwhelming majority. Haitians called the two men, who had been the best of friends as well as the closest of political allies for years, “the Twins.â€
When Aristide was inaugurated in 1991 for his first presidential term, Préval was his immediate choice to be prime minister. However, less than a year into Aristide’s second term, his Parliament – led by René Préval – usurped his authority in a no confidence vote. Aristide attempted to rule without parliamentary support, but eventually was ousted by a military coup and was forced into exile by a US-Canadian, French and UN complot.
Upon his election, Préval now began to downplay his links to Aristide, eventually, running for the presidency in his known name in 1996 on a completely new platform and under the banner of his own LESPWA party. After several decades of being roiled by dictatorships and political unrest, the philosophical, soft-spoken, and indecisive professional agronomist appealed to a country that he hoped was looking for a level-headed and highly regarded politician to calm the country’s turbulent political atmosphere.
Préval took office amid high expectations that he would end the country’s long and tormented history of violence and economic stagnation.
Préval as a Ruler
Préval eventually turned on Aristide in order to cravenly expedite his own political aspirations. Préval was elected for a second term in 2006 after two years of intense political strife that eventually required the presence of Brazilian-led international peacekeeping forces in Haiti. Claiming the vote count was being conducted in a fraudulent manner, Préval demanded that he immediately be declared the winner.
After protests and riots had paralyzed Port-au-Prince, the Provisional Electoral Council appointed him president with 51.15% of the vote. Préval then proceeded to disqualify fifteen political parties, including Aristide’s still popular Lavalas party, from taking part in this year’s elections.
Opposition leaders, including Aristide (who, even in exile, remained highly popular with poverty-stricken Haitians) have accused Préval of restructuring the Parliament in order to facilitate the constitutional changes necessary for him to run for a third term in November 2010.
However, prospects for Préval’s third term look anything but promising for the president, who said in a radio interview after the earthquake: “I don’t do politics, okay?†Opposition parties are using Préval’s woeful and inadequate response to the earthquake as an opportunity to further stomp on his ailing administration.
Evans Paul, a longtime opposition figure, condemned Préval when he declared, “During the greatest disaster Haiti has ever faced, our president has been incapable of pulling himself together, much less this deeply divided society. He has single-handedly shown the Haitian people that he cannot lead them.â€
During Préval’s first term in office, he was credited with building dozens of public schools, putting thousands of people to work, and issuing titles to thousands of hectares of farmland. In his second term, Haiti experienced modest, but hopeful levels of economic growth.
Unfortunately, Préval’s inaction since the earthquake has overshadowed all of the achievements of his previous incumbencies. Indeed, he seems to have sealed his political destiny forever.
Judith Marceline, a Haitian woman who lost everything after the quake except for the clothes she was wearing, may have described it best: “I stood in line for hours to vote for Mr Préval in 2006. Today, I wonder why I supported him.â€
Rene Préval now has been working breathlessly to prove to a hopelessly skeptical world that he is no longer standing on the sidelines in the aftermath of the disaster. Struggling to counter the perception by the international community that Haiti’s government is scarcely better than a Mickey Mouse game, he has vowed that “Haiti will live on after the quake.â€
The Haitian president came to Washington on March 10th with a game plan and a list of priorities for Haiti’s recovery effort. His request for continued help from the US came two weeks before international donors would meet at the United Nations on March 31st to plot the country’s long-term reconstruction. Préval is hoping the US will play a leading role at the conference and will drum up support among donors who largely had frozen funding to the government because of Haiti’s legendary history of corruption and squandered aid.
Préval says he is working hard to meet the demands of the Haitian people and the international community in facilitating the estimated $11.5 billion reconstruction effort needed to rebuild the devastated country, although it is likely that many will remain skeptical of such claims.
As coverage of the earthquake fades from the front pages of newspapers, Haiti needs an effective leader now more than ever. The leadership vacuum that the country now faces becomes more apparent every day as the country struggles to recover and rebuild its most basic institutions and infrastructure.
Although Préval may be taking important steps behind the scenes, simply helping to manage the large-scale reconstruction effort is not enough. The country needs more than an administrator in these trying times – it needs a president. In this respect, President Préval woefully has let his country down.
The Council on Hemispheric Affairs, founded in 1975, is an independent, non-profit, non-partisan, tax-exempt research and information organization. It has been described on the Senate floor as being “one of the nation’s most respected bodies of scholars and policy makers.” For more information, visit www.coha.org
1 Jamaican dollar = 0.011232 U.S. dollars
The Jamaican dollar lost up to nearly half of its value against select emerging power currencies over 12 months even as the US dollar held firm over the period.
The Bank of Jamaica (BOJ) said it intervened to stabilise the US dollar but allowed market forces to determine other currency rates.
For instance, local currency fell 41 per cent against the Australian dollar and 30.6 per cent against the Brazilian Real.
Over the same period the Jamaican dollar lost only 1.6 per cent against both the US dollar ($87.90 — $89.33) and powerful Chinese yuan (J$12.87 – $13.08). All movements were compiled utilising Bank of Jamaica data.
Many of these economies are benefiting from commodity price increases in oil and gold which are strengthening their currencies. It has implications for local commerce as the Japanese yen–the currency of world’s second largest economy–is now on par with the Jamaican dollar, making its cars and cameras more expensive. The BOJ told the Business Observer that volatile local and international trading was affecting these exchange rates.
“It is a market activity that is independent of us (the BOJ). Activities in respect to certain commodities may have some minor influence from time to time but the real forces are the actual players in the market,” stated a senior spokesman at BOJ who requested anonymity to respect protocol.
There is some amount of “statistical unintentional manipulation” also at play, added the BOJ senior spokesman.
“Because its a smaller market for these (non-US) currencies and fewer players, it means that when one or two people execute trades those trades skew the market as large block trades can affect the average price,” the BOJ stated. “It is not so easy to skew the market with largely traded currencies.”
Trader Dino Hinds, however argued that these currency movements are not locally determined because they are not actively traded in the market.
“The local exchange rate for the other currencies in question are not set by local factors or by them being actively traded in the market,” Hinds, the assistant vice-president of Markets and Trading at Mayberry Investments told the Observer. “The rates are in fact set by the movements of the currencies against the US dollar [and] the local exchange rate set by taking that international cross rate and multiplying by the local US dollar rate.”
Hinds statement accounts for most of the movement, but not all because the Australian dollar appreciated more against the Jamaica counterpart than the US counterpart at 41 per cent versus 30 per cent respectively. The difference seems to relate to the “unintentional manipulation”. The BOJ is a net earner in those currencies as most of its business in conducted with US dollars, it stated.
The Business Observer sought comments from financial analysts Dennis Chung and Juvenne Yee but was unsuccessful up to print. Most local cambios only trade US, EURO and pound currencies, according to comments by dealers.
Since last month, the Jamaican economy had been infused with funds geared at increasing the stability of its currency and accounts. It received a US$1.2 billion ($107.4 billion) stand-by arrangement with the International Monetary Fund (IMF) last month, and an additional US$800 million ($71.6 billion) worth of multilateral loans — US$200 million from the World Bank US$200 million and US$600 million from the Inter-American Development Bank (IDB). A measure of the increased confidence was the stability of the dollar and the 330 basis point dip in the yield curve on Government of Jamaica Global Bonds so far in 2010.
In mid February, rating agency Fitch upgraded Jamaica’s long-term foreign and local currency ratings to “B-” from “CCC” and “C” respectively, with a stable outlook. Rating agency, Standard & Poors followed a week later, hiking its long-term foreign and local currency sovereign credit rating on Jamaica to “B-” from “SD” or “Selective Default” with a stable outlook. Then in March, rating agency Moody’s upgraded Jamaica’s local and foreign currency bond ratings to B3 from Caa1 on foreign currency and Caa2 on local currency, which it said reflected “diminished credit risks following the domestic debt exchange completed in February”. Jamaica had executed a voluntary debt swap, reached as a conditionality of the IMF agreement. The debt swap registered a participation rate of more than 99 per cent and will result in Government saving some $40 billion on interest cost payments in its first year — due to a reduction in interest rates and extension of debt maturities.
Over 52 weeks ending March 19, 2010 the:
*Australian dollar moved from J$58.20 to J$82.50 or 41 per cent;
*South African Rand moved from J$8.85 – J$12.22 or 38 per cent;
*Brazilian Real moved from J$38.20 – J$49.91 or 30.6 per cent;
*Indian Rupee moved from J$1.71 -J$1.91 or 14.6 per cent;
*Swiss Franc moved from J$75.43 – J$84.02 or 11.3 per cent; and
*Japanese Yen moved from J$0.89 – J$0.98 or 10 per ce
CANCÚN, Mexico – March 21, 2010 — Low productivity growth is the main reason most countries in Latin America and the Caribbean have lagged growth rates of both advanced countries and peer countries in East Asia, according to a study by the Inter-American Development Bank (IDB).
The study, which analyzed how efficiently nations are utilizing their productive resources, looked into productivity gains and losses, relative to the United States, for a sample of 76 countries, including 17 from Latin America and the Caribbean. Chile was the only country in the region to increase its productivity against the United States since 1960.
Half of the 20 worst performing countries in terms of productivity in the sample are from Latin America and the Caribbean (see graph and table below).
Breaking against the commonly held notion that the region’s growth suffers from insufficient investment, the study shows that Latin America and the Caribbean could greatly accelerate their economic growth and narrow the income per capita gap against industrialized nations with policies that promote a better use of existing resources in the economy.
A typical Latin American country could have increased income per capita by 54 percent since 1960 if its productivity had grown like the rest of the world during the period. Income per capita in this typical country would almost double if its productivity was close to its full potential.
“More than additional investments, countries in the region need to make better use of the existing stock of physical and human capital,†said IDB economist Carmen Pagés-Serra, who coordinated a team of researchers for the upcoming IDB book: The Age of Productivity: Transforming Economies from the Bottom Up.
“There is a huge, untapped opportunity for policymakers in the region to invest in reforms and sensible policies that can allow the region to quickly catch up with other regions of the world,†said Santiago Levy, Vice President of Sectors and Knowledge of the IDB.
Economic growth and income per capita in the region could dramatically improve, for example, with increased credit, simpler and better distributed tax regimes, better transportation, and a better tailored social policy to reduce labor informality. Productivity would also greatly benefit from targeted policies to provide for key public goods, such as better infra-structure and regulatory environment, to increase the efficiency of the productive sector as well as measures to foster technological innovation in the private sector.
The book, part of the series Development in the Americas, the IDB’s annual flagship publication, offers a comprehensive analysis of productivity in the region, its impact on economic growth and recommendations for policymakers on how to address the causes of low productivity.
The IDB unveiled the results of the book during an event preceding its Annual meeting in Cancun, Mexico. The Age of Productivity: Transforming Economies from the Bottom Up will be available at selected bookstores next month.
Winners and Losers
Since 1970, productivity in Latin America and the Caribbean has consistently lagged the rest of the world, a trend that has exacerbated after the debt crisis of the 1980s. The failure to catch up with developed economies has been widespread in the region.
BELMOPAN, Belize, March 17, 2010 – Belizeans will be paying a wider range of tax to help government fill a BZ$64.7 million (US$33.5 million) gap in its budget. But the Dean Barrow administration is promising more people will be exempt from paying income tax and will benefit from other relief.
Prime Minister Barrow outlined the new and revised taxes when he presented a BZ$876.3 million (US$454.4 million) budget entitled ‘Recovery Today, Prosperity Tomorrow’ to Parliament on Monday.
Revenue and grants are estimated to be only about BZ$811.6 million (US$420.9 million), resulting in the shortfall. And Barrow said the government therefore had no choice but to raise taxes.
“The average Belizean family’s everyday meals, should now see a price drop.”
–Prime Minister Dean Barrow
“If not closed, the gap would have increased the overall deficit to almost negative 4.2 percent of GDP. We simply do not have access to concessionary external funding to close this gap,†he said.
“More importantly, if left as it is, this would have resulted in the creation of a level of domestic credit that would have put unbearable pressure on our foreign reserves position and would have crowded out the private sector. It would have reversed all the gains that we have made over the past two years to restore fiscal balance and to ensure long-term debt sustainability…Therefore, we need to take the very difficult but unavoidable actions to close the gap.â€
The tax measures include a major increase in business tax for the supply of electricity services from 1.75 percent to 6.5 percent; an excise tax on locally produced crude oil at a rate of BZ$1 (US$0.51) per barrel; a five percent social fee on the value of all goods and services imported into an Export Processing Zone; and an increase in the rate of the General Sales Tax (GST) from 10 percent to 12.5 percent, which the Prime Minister said was still the lowest in CARICOM, with the rates in other countries ranging from 15 percent to 17 percent.
Those tax measures, along with pressing the collection of outstanding tax arrears, are expected to yield BZ$61.5 million (US$31.9 million) in revenue.
But Prime Minister Barrow said his administration would still fulfill its promise to protect the poor and lower income earners through a slew of tax relief measures.
“The GST is a consumption tax, so we want to do two things: The first is to ensure that the absolutely essential items, and in particular foodstuff, will actually see a drop in prices notwithstanding the generalized GST increase. In other words, the basic ingredients for the average Belizean family’s everyday meals, should now see a price drop after this budget,†he said, noting that the GST and import duty will remain off or be removed from a wide range of basic food items, as well as powdered laundry detergents, agricultural equipment and machinery including tractor parts, agricultural packaging materials, and basic school supplies.
Secondly, he said, all employed persons earning less than BZ$24,000 (US$12,446) per year will be exempt from income tax, while those earning more would continue to be eligible for the current basic deduction of US$19,600 (US$10,164).
“Further, this change will take effect retroactively for the tax basis year commencing 1st January 2010. So under this United Democratic Party Government, no person with a salary of BZ$500 (US$259) per week or less will ever again have to pay a single penny in income tax,†Barrow told the House.
Additionally, the GST will also be removed on the supply of electricity to consumers who now use up to BZ$200.00 (US$103) of electricity per month – up from the current ceiling of BZ$150.00 (US$77) per month.
KINGSTON, Jamaica, CMC – The opposition People’s National Party (PNP) is warning the Bruce Golding administration not to take the contentious request by the United States to extradite a well-known associate of the ruling party to the United Nations.
The PNP’s spokesman on foreign affairs and foreign trade, Anthony Hylton, said involving the UN in the case of Christopher “Dudus†Coke would only serve to further sour relations between Jamaica and its powerful neighbour to the north.
“Jamaica has been viewed as a law-abiding member in the international community. To take this bilateral imbroglio to the United Nations would only further jeopardise Jamaica’s standing and reputation within the international family of nations,†Hylton said.
“To go to the United Nations with this matter would also only highlight, on an international stage, the contradiction of our own Government bypassing our local judiciary to consult with an international arbitrator†he added.
Coke has been accused of drug trafficking and gun running by the US Attorney’s Office which last August asked Kingston to extradite him to answer to the charges in a New York court.
But eight months after an indictment was handed over to the Jamaican government outlining the allegations against Coke, the order to proceed has not yet been signed by Attorney General and Minister of Justice Dorothy Lightbourne.
Two weeks ago, Golding announced in Parliament that the evidence provided by US against Coke breached the Interception of Communications Act, and said he was prepared to pay a political price for refusing to have the extradition proceed.
Washington is presently preparing a second indictment against Coke which, they believe, will satisfy Golding’s concerns.
The US authorities say they have information from nine co-conspirators against Coke, a known don on Tivoli Gardens in Golding’s West Kingston constituency.
The issue of the request for Coke’s extradition led to a walkout of opposition members after a heated debate on Tuesday.
During the session, the government dismissed claims that it had engaged the services of a United States-based law firm to, among other things, advice the administration on pending extradition requests.
The issue was raised by former national security minister, Dr Peter Phillips, who brought to the attention of the House, a document on the website of the US Department of Justice which states that the US law firm Manatt, Phelps and Phillips has been retained by the Jamaican government for US$100,000 per quarter to provide services Golding administration.
It stated that the law firm would provide “contacts and meetings with the executive branch regarding existing political and economic matters, including existing treaty agreements between Jamaica and the USâ€.
Phillips wanted to know if arrangements with the US firm included current extradition matters.
“I understand that the Government of Jamaica in November 2009 entered into agreement with a firm named Manatt, Phelps and Phillips who claim, in their foreign agents registration, that they represent the Government of Jamaica through Harold Brady and Company.
“Their advice, among other things, is sought in relation to treaties, agreements, political and economic matters…given the timing, my question is, does this represent a contractual obligation as reported by the Government of Jamaica, does it relate to extradition matters and is it properly entered into by the particular individual on behalf of the Government of Jamaica?†Phillips asked.
However, House Speaker Delroy Chuck intervened, insisting that the question had no bearing on the debate which was focused on regulations for the sharing of forfeited property between Jamaica and the United Kingdom.
In response, Prime Minister Golding said the government has not engaged the legal firm.
“Let me make it quite clear. The Government of Jamaica has not engaged any legal firm, any consultant, any entity whatsoever, in relation to any extradition matter other than to deploy the resources that are available within the Attorney General’s Department who has a duty and responsibility to guide the Government on these matters,†Golding said.
ROSEAU, Dominica, March 12, 2010 – Antigua and Barbuda’s Prime Minister Baldwin Spencer has turned to the World Bank for help in getting the United States to reach final resolution with his country, following a 2007 World Trade Organisation (WTO) internet gaming ruling.
In March 2007, the Dispute Settlement Body of the WTO ruled that the US had failed to comply with the 2005 ruling against prohibitions on Internet gambling. Later in the year, the WTO granted Antigua US$21 million in annual trade sanctions against the US as compensation for damages.
During a meeting with World Bank President Robert Zoellick at the 21st Intercessional Meeting of Caribbean Community (CARICOM) Heads of Government yesterday, Prime Minister Spencer requested that the World Bank intervene in the long running issue, saying that for a long time the country has been trying to get a negotiated resolution of the matter with the US.
He stressed that Antigua and Barbuda is not in any position to impose sanctions against the US.
“What we are seeking is a negotiated resolution to this matter and don’t know to what extent the World Bank can be of assistance in this regard but it is an important matter for Antigua and Barbudaâ€, Spencer said.
Negotiations are still ongoing, but the Prime Minister says there seems to be no light at the end of the tunnel.
He therefore asked that the World Bank give some attention to the matter, providing support to urge the US to make some progress towards a resolution.
BRIDGETOWN, Barbados, CMC – The Barbados government is expecting a major financial shortfall this year, Prime Minister David Thompson said Monday.
Thompson, who is also Finance Minister, made the disclosure as he laid the Appropriations Bill 2010 in the House of Assembly.
Based on the figures he presented, the government is expected to incur a deficit of BDS$1.5 billion (US$750 million) with BDS$4 billion (US$2 billion) in projected expenditure compared to expected revenue of only BDS$2.5 billion (US$1.25 billion).
However, Thompson defended his administration’s policies, saying they provide the foundation for economic growth over the next five years.
He said current indicators suggest that in 2010 the Barbadian economy is likely to register a marginal growth rate driven largely by anticipated improvements in performance of both the traded and non-traded sectors.
Thompson said such a recovery would be determined by the kind of recovery in other major economies that Barbados depends on for business.
“The current challenge within the Barbados economy will be how to balance the short-term needs for continued policy support in order to strengthen the recovery with the long-term need to consolidate public debt in order to maintain fiscal sustainability.
“In order to address appropriately this challenge is to provide further a framework for recovery and development within the Barbados economy, the government is in the process of rolling out and implementing a medium-term fiscal strategy as well as a medium-term development strategy for the period 2010-2014, both of which have been circulated,†Thompson told Parliament.
However, the Prime Minister said economic recovery is not a simple case of arithmetic. He said that was particularly the case with the island’s all-important tourism industry.
“We have to realise in Barbados that the sustainability of this sector that is so critical to our economic prosperity depends enormously on us not viewing it simply in narrow economic terms. The challenges confronting this economy are not purely arithmetical in nature and therefore cannot and will not be solved by arithmetic theories alone,†Thompson said in the face of criticism from the opposition.
“We hear much about economic survival but survival is not simply an economic concept. Survival is a human instinct and a societal instinct. Barbados is, first of all, a society in which the sum of its parts, including the economy, is the whole.
“The true legacy of a political leader is not only how he or she runs an economy, it has never been…we take that for granted. You are supposed to run an economy well. The enduring legacy of a leader…is how he or she is able to bring the parts together in such a way as to create a safe, harmonious, inspirational, economically sound, fair, just, democratic and compassionate nation. That, Mr. Speaker is my goal,†the Prime Minister added.
However, Thompson noted that the global economic downturn has had spin-off effects that hit home for many Barbadians.
“In 2009, tourism plummeted by 8.7 per cent with an estimated loss of BDS$170 million in foreign exchange. All other sectors of our economy were also hurt by this external crisis. The decline in our principle revenue earning activities was accompanied by lower levels of government revenue, a rising fiscal deficit, higher levels of unemployment and an increasing public debt.
“The effects of the recession have been many and various…but the most terrible has been the hardship that it has inflicted on many in our community, especially the most vulnerable who have either lost their jobs or seen their job prospects shrink and who have been confronted with higher prices for basic necessities,†he added.
ROSEAU, Dominica, CMC – Two Caribbean Community (CARICOM) countries Friday welcomed a promise from the World Bank to study the debt profiles of regional countries presently grappling with heavy debt burdens.
World Bank president Robert told reporters after meeting with leaders of the 15-nation CARICOM grouping here that the World Bank was prepared to send in teams to interested countries to assist them in managing their debts.
He also said he was not ruling out the possibility of securing debt relief based on past experiences with Jamaica and other regional states.
Antigua and Barbuda’s Prime Minister Baldwin Spencer told the Caribbean Media Corporation (CMC) that he found the offer to be “very interestingâ€.
He said Caribbean countries “have always felt that the World Bank and other international institutions need to look at this whole question of debt as far as the so-called developed countries and those who are considered – like Antigua and Barbuda and some of the other CARICOM member states – as out of the lower income and into the middle-income brackets.
“So we are very happy over the fact that at least the World Bank is prepared to look at the issue and to determine whether some formulation could be made out as to be able to get some positive relief.
“Clearly, the offer is not definitive but at least it opens room for us to be able to dialogue and certainly Antigua and Barbuda would be interested,†he told CMC.
Grenada’s Finance Minister Nazim Burke said he welcomes any strategy that would allow Grenada and other countries in the region to recover more quickly from the difficulties associated with the current global environment.
“While we must await the specifics of those strategies, any measure, from an organisation like the World Bank that will help us in the recovery process and reduce our debt burden is good. It certainly will help us to put more resources into the productive sectors of our economy,†said Burke.
The issue of Dominica being blacklisted by France was discussed as CARICOM heads met with World Bank President Robert Zoellick at the 21st intersessional CARICOM Summit currently ongoing.
France named 18 nations as being uncooperative tax havens and threatened to impose higher taxes on French companies that have operations in those jurisdictions. Anguilla, Belize, Grenada, Montserrat, St Lucia and St Vincent and the Grenadines were the other Caribbean countries on that blacklist.
Prime Minister of St Kitts and Nevis Denzel Douglas, who is on island, told a media interview last evening that France’s action was unfair.
According to him, Zoellick was told that he should use his contact and influence with France to ask for some flexibility in having the country revisit its position, before January 2011.
“I alluded to the situation where we have been given a target date of March 31st to achieve 12 agreements with the OECD countries and before we could achieve that, France imposed a black listing against and took punitive action against companies that may be doing business in the Caribbean,†Douglas said.
“We felt that it was unfair because several of us has already negotiated terms and agreements with France and we were waiting for France to give dates for signing those agreements and then one week before she took this unilateral action,†he added.
Meantime, Douglas says for small indebted countries to continue on their development agenda – especially in stabilizing the economies – the World Bank should use its position to assist in accessing concessionary terms in loans.
He said the World Bank needs to be mindful of the vulnerabilities of small highly indebted middle income countries.
He believes the economic transformation path is being made more difficult.
DNO CORRESPONDENT.
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About One Love Reggae Fest The One Love Reggae Festival will unite diverse cultures within South Florida through “One Love, One Heart and One Music”. This event will be held on Sunday, May 13, 2012 in West Palm Beach, Florida at the Cruzan Amphitheater. The 2011 Festival boasted a huge attendance of more than 5000 [...]
PM PORTIA SIMPSON-MILLER DA ZYNC BUZZ HEDA ROSE (NY LINKZ/ZYNC TV): May 4 – 11
BY ZYNC TV ON THIS WEEK’S EDITION OF NEW YORK LINKZ: JAMAICAN PRIME MINISTER PORTIA SIMPSON-MILLER VISITS THE NORTH-EAST DIASPORA; A PREVIEW OF THE FUN AND EXCITEMENT AT 2012 PENN RELAYS; A PREVIEW OF GRAMPS MORGAN AND RAGASHANTI TAKING OVER NEW YORK CARIBBEAN RADIO; PLUS SHERMAIN GIVES TIPS ON IMPRESSING YOUR BOYFRIEND’S PARENTS IN IMAGE [...]
Lloyd Brevett, founding member of The Skatalites, passes away aged 80
Lloyd Brevett, the Skatalites’ inimitable double bass player, has died following complications from a recent stroke. As The Washington Post report, Brevett fell ill in March following the murder of his son in Kingston. Anyone lucky enough to have seen The Skatalites live will be able to testify to Brevett’s remarkable charisma. His on-stage presence [...]
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