IS THIS THE SAME IMF

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From The Desk of Ken Jones - Veteran Journalist:

The day I saw the head of the IMF hugging and kissing some of our political leaders I was reminded of former Prime Minister Edward Seaga’s comment made some 8 years ago. He, who had battled with IMF conditionality in the 1980s, told us:

“I learned long ago that when the IMF tells you that you are doing well it is a kiss of death. I learned too, that it is not what the IMF tells you but what you tell the IMF that counts.

“In 1986, I told the IMF that I was no longer going to follow their prescription for devaluation of the exchange rate because it was not producing any results.

I challenged them to identify one developing country in which their prescription had worked. They could not.

“I followed up by withholding Jamaica's payments to the fund unless they agreed that the Jamaican economy could have a fixed exchange rate and the introduction of an export drawback scheme instead of devaluation to ensure competitiveness. After many tense months of pressure by the IMF and refusal on my part, the IMF agreed in January, 1987 to allow the exchange rate to be pegged. The economy took off immediately recording five percent average growth from 1987 to the end of the decade, including the low 2.5 per cent in 1988, the Gilbert year.”

If you don’t want to take Mr. Seaga’s word for it, then read the World Bank report which said in 1989:

“The economic performance of Jamaica has improved significantly over the past two and a half years, and notwithstanding the setback caused by hurricane Gilbert, on September 12, 1988, this improved performance is expected to continue…” 

The growth continued, but the Jamaican electorate in its wisdom put Seaga out of office and returned the reins to the PNP, which had been responsible for the earlier disaster. Did history repeat itself? You bet! By 1995 Jamaica was in a crisis again with the beginnings of what is now known as FINSAC, a disaster as destructive as any monster hurricane.

In the last forty years Jamaica has survived more natural and political disasters than any other Caribbean territory. Our notable successes are due more to the individual performances of entrepreneurs, athletes and musicians than to central planning, cooperative effort and good governance. On the whole we are just suckers for punishment.

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