Dear Editor,

The IMF package, the coming budget and the three budgets from last year on which the IMF loan depended, mean just one thing: more hardship for those who can least afford it.

Why should those who have not caused the problems be asked to pay for a ‘solution’ that cannot work? Meanwhile, so-called ‘investors’ in Jamaica government bonds have had it too good for too long. The JDX is a move in the right direction, but until Jamaica recovers, such investors should not expect dividends, as with equities.

A different set of policies is needed, including the following:

1. Repudiate, or put a moratorium on the debt until Jamaica recovers

2. Radical tax collection measures

3. Radical anti-corruption measures

4. Nationalise the banking sector, make affordable financing available

5. Exchange controls

6. Import controls

7. Radical land reform

8. Major Government sponsorship of agriculture and agro-processing

9. A ‘developmental state’ approach to governance.

Of course, not paying the debt would mean that no new borrowing is possible. But the Government could still operate. We have a Primary Surplus, which means that the Government collects more in taxes than it spends (leaving debt out of the calculation). With better tax collection, and less corruption, there would be even more to spend on vital services such as education, on which our future depends. There can be no growth, no new jobs tomorrow without an investment in people today.

Not paying the debt would mean having to nationalise the banking sector and impose exchange controls, without which money would dry up. A nationalised banking system would provide affordable financing for production rather than speculation.

After that we would need to deal with the trade imbalance by drawing back from unwise WTO commitments which have wreaked havoc on our economy. We need fair trade, not so-called free trade which gives more power to the powerful.

Finally, we need to encourage agriculture by providing land for those who want to farm, coupled with a vibrant food-processing industry. With lower interest rates, this would mean jobs and growth. We need an active developmental state, not one that is a lacky to foreign and local finance capital.

Paul Ward

pgward@cwjamaica.com