Jamaica has been beset by a combination of inept economic management over many years, with both administrations being culpable, and unfortunate external circumstances.

Some other developing countries have faced the same or worse external circumstances but managed better than Jamaica, hence our dire economic situation is a largely self-inflicted wound. The country had reached the point where it had no alternative to going to the International Monetary Fund (IMF), as agonising as that option was to both political administrations.

Jamaica had to subject itself to an IMF-designed programme under the Golding Administration, but failed to implement the terms of the agreement. After the last general election the Portia Simpson Miller Government took a year to negotiate a new agreement in an atmosphere of worldwide scepticism about the ability of any Jamaican Government to successfully complete an IMF programme based on previous failures.

So far, the People’s National Party (PNP) Government has managed to meet all the targets of the current four-year IMF Extended Fund Facility (EFF) which was approved on May 1, 2013.

The Executive Board of the IMF on December 16, 2015 completed the 10th review of Jamaica’s economic performance under the EFF. All performance criteria for end-September 2015 and structural benchmarks for the review period were met. The completion of the review enabled an immediate release of US$39.3 million.

While the Fund has been crowing about the Government’s impressive track record of strong programme implementation, strengthening macroeconomic stability and encouraging reforms, one must not lose sight of the fact that much of the credit goes to the salutary effects of low oil prices.

Neither should we ignore the fact that even the IMF has admitted that overall growth remains weak and unemployment, though declining, remains high.

The problem for Jamaica is that we have no alternative to the IMF programme because, without it the availability and cost of external financing would be uncertain and more difficult. Still, we must, as a country, ask ourselves whether, even if we successfully complete the EFF, the economic problems of the country will be fixed?

We suggest that while the IMF programme is necessary it is not sufficient to put the Jamaican economy on a path of sustainable economic growth. The IMF programme does not fix macroeconomic problems, it merely suppresses them, and at a high economic, social and political cost.

The illegal implementation of the transfer pricing law that the Fund is forcing on Jamaica, without any concern for the terrible damage it will do to the business sector and the country, is a good example of that cost. And it is clear that the Government has not got the balls or the stomach to stand up to the IMF on this.

Jamaica, in addition to and after stabilising the macroeconomic fundamentals, must design a plan for economic growth. This is one of the fundamental issues on which the PNP and JLP must make clear and comprehensive statements during the general election campaign.