Calvin McDonald appointed Chief Fiscal Advisor to finance minister | Loop News
McDonald, a Jamaican, is on leave from the International Monetary Fund expected graduation from a programme relationship with the IMF. Finance and the Public Service Minister Dr Nigel Clarke says Jamaica's borrowing relationship with the International Monetary Fund (IMF). Jamaica's borrowing relationship with the International Monetary Fund (IMF) could end when the country's US$billion Precautionary.
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It will require high-quality measures to i overhaul the compensation structure to retain skills and reward performance, ii streamline the vast and inequitable allowances structure, iii prioritize key government functions and shed those activities that the government can no longer afford to undertake, and iv change the capital-labor mix through technology upgrades, including a better monitoring of and accountability for government spending.
Inevitably, these reforms will also lead to a reduction in the size of the public workforce. Such a holistic approach will support a durable reduction in the wage bill, without frequent discordant wage negotiations, and enhance public service delivery with fewer but better paid public employees.
Improving social outcomes and fostering inclusive growth will require addressing structural bottlenecks and creating an enabling environment for the private sector.
Jamaica's borrowing relationship with IMF could end September 2019 - Clarke
Countering both weak social outcomes and escalating crime will take time but will be essential for sustained growth. In this regard, the evidence suggests that early childhood education, interventions to improve school attendance, and skills training for the youth would foster a virtuous cycle of lower crime, higher wages, stronger growth, and increased economic opportunity, particularly for the young.
Policies to support productive private investments, including improving lending to smaller businesses and reducing lending-deposit interest spreads, will help fuel such an upswing. Instead, the goal should be a uniform, broad-based, and low rate tax system, a level playing field for business, and harmonized rules for all.
Formalizing the current inflation targeting regime will help entrench macroeconomic stability and promote growth. Meanwhile, upcoming revisions to the Bank of Jamaica BOJ Act—including a clear mandate for price stability, a reformed governance structure, and a strong central bank balance sheet—will help institutionalize the inflation targeting framework. Successful inflation targeting will require a clear commitment to a flexible and market-determined exchange rate with limited involvement of the central bank in the currency market.
About Life and Debt
This implies that FX sales should be confined to disorderly market conditions, especially given the reductions in the surrender requirements, and buy auctions should aim to build reserves in a non-disruptive way.
Financial sector stability is a prerequisite for strong and sustained growth.
Ongoing prudential and supervisory improvements will enhance systemic stability. Continued reform implementation will not only safeguard hard-won gains but also deliver stronger growth and job creation. After 5 years of reforms and tenacious fiscal consolidation, risks from reform fatigue and loss of social support are high, especially as growth remains feeble and crime escalates.
Desperate solutions were quickly needed to put a brake on the deteriorating condition of our country's economy, and especially with it being an erupting and disrupting inharmonious social order catalysed by the clashes — verbally and physically — of the two major political parties, the JLP Jamaica Labour Party and PNP People's National Party.
This is when principal advocate for a New International Economic Order Michael Manley, an avowed disciple of anti-imperialist and anti neo-liberal politics, as Prime Minister, made his volte face about face and went hat in hand to the IMF for 'rescue' in That 'rescue' is now 41 years old.
The captain of a crude oil ship that arrived in the Montego Bay Harbour only agreed, based on previous experiences, to unload the shipment of crude oil after he received payment for same. Private citizens in Montego Bay and surrounding areas were rallied by Hugh Hart on behalf of the then Jamaica Labour Party Government to make cash contributions to this particular oil bill. The monies collected were transported to Kingston by three policemen from the motorcycle division of the Jamaica Constabulary Force, and taken to the Bank of Jamaica where it was lodged and a cheque drawn.
Jamaica and the IMF: A Never-ending Story
The motorcycle policemen returned to MoBay and paid the ship's captain, who unloaded the oil and left Jamaica's shores immediately. This was a time when Edward Seaga was prime minister of the country. This article is intended, as far as possible, to take a dispassionate and objective scrutiny of the outcome of the relationship with the IMF and, by extension, other multilateral agencies over the period of this relationship.
Over this year period Jamaica failed 11 of the 15 IMF agreements and was assisted to pass two of the remaining four by way of debt forgiveness and waivers etc. Without that help, the country would have failed 13 out of 15 IMF agreements in 41 years. This fact imports the urgent and timely question — whose fault is it? The IMF and its conditionalities, or it is the fault of the country of Jamaica?
Read a statement from the IMF published by the very respectable British newspaper The Guardian quite recently regarding countries, like Jamaica, within the Caribbean that are experiencing similar difficulties with stabilising, balancing and growing their economies despite heavy international borrowings: What the IMF is acknowledging is that countries like Jamaica need to make deep budgetary cuts, but because there is and will be no growth notethe debt will remain.
As the debt increases, more of each dollar earned by the country goes towards debt repayment, leaving less to finance a budget to run the country. Throughout the over year life of IMF agreements, that preceding pattern remained predominant, starting with the oil price shocks of the s and 80s which pushed interest rates up and which in turn caused the cost of debt servicing to rise.
- Jamaica’s Relationship With The IMF
- Mission Concluding Statement
Sixteen per cent of exports in paid Jamaica's external debt, but by the figure rose to 35 per cent of export earnings. In97 per cent of students completed primary school. Now it is 73 per cent.