What are the challenges we face, now that we have an IMF DEAL ?

The PNP government has now secured the “best possible” deal and so I would like to ask the very questions I had asked prior to the signing off of this “new” deal.

 

  1. What austerity measures can the people of Jamaica expect?
  2. How many persons in the public sector will lose their jobs?
  3. What new areas will be taxed and will we see the taxes in the areas already subjected to further  increases?
  4. Can we expect to see further reduction in the subvention to UWI ?
  5. Can we expect to see a re-introduction of the user fee policy in hospitals?
  6. Can we expect to see less money being allocated to PATH ?
  7. Can we expect to see a free fall in the Jamaican dollar ?
  8. Should we be looking for a rise in interest rates ?
  9. Can we expect to see removal of more items for the exempt and tax free list.
  10. Can we expect to see a reduction of tax free incentive provided to the hotel sector?
  11. Should we expect to see a massive cut in subsidies /incentives to businesses ?
  12. What is the IMF saying about the informal sector, which makes up 40% of the total economy and what commitment is the government making to significantly reduce the size of the informal sector.
  13. What additional changes can we expect in terms of comprehensive tax reform and simplification of the tax system.
  14. Pension reforms, when are we going to break the news to our teachers and public sector employees that not only will they see reduction in pensions benefits, but they can also expect removal of all those “special and departmental leaves” they have enjoyed for years as compensation for their rather low salaries.

What exactly is the expectation of the people of Jamaica, who are not involved in the negotiation process, but are expected to support it, once it has been inked.

 

Now as I asked in a previous thread after all that suffering that will come from 1 -14 above, is there a light at the end of the tunnel that is not a frieght train.

  1. How are we going to use the money from the IMF and the other multilateral organization to support economic growth.
  2. Where will this growth come from?
  3. Will it be services, manufacturing , mining, tourism , ICT and what steps are being put in place now to get these areas in the position to generate growth and increase our earnings ?
  4. What are we going to do about energy cost at US $0.41 per kwh, given the fact that JPS has clearly indicated, that we will never see the 40% reduction they had promised earlier via there US$360M,  LNG fired, power supply plant.
  5. Have we explored geothermal energy from bath in St Thomas , Milk River bath in Clarendon and other areas of Jamaica, where this is possible and utilize this energy to feed into the grid to serve the communities in these areas.
  6. We have spoken a lot about development of Verman field, Caymanas and the now the development of Fort Augustus  to coincide with the expansion of the Panama Canal, yet no tangible work has been done in any of these areas. If we are to really inject some serious money into the economy these are areas we really want to focus , but yet after 20yrs we are still ” talking”.
  7. We have spend billions to build highways, which I believe could have been better spent on anyone of the mega projects above, as these would have the potential to bring in money into the country over the long haul vs extracting money out of the country via toll charges.

Until Jamaicans decide that enough is enough, until we have decided we have enough of the talking heads and demand action nothing will change. It appears as if too many of us are too contented with eating a food today and possibly tomorrow, but not about the ability to sustain a steady income and benifits for our generation and the generation to come.

We have become so caught up in our narrow political corners that we have lost sight of reality and only see things today in shades of colour. The fear of being labelled one P or another has caused many who can help to stay away, because harm could come your way at any point in time, should you choose to lend support to the wrong party at any point in time.

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10 Responses

  1. We do not have a deal we have a staff agreement. The pnp wasted time trying to get the best agreement and we ended up with the bitter medicine anyway. For those who don’t know in the early 2000s the debt to gdp ratio was 150%.

    • No it wasn’t. Not saying it was good, but it wasn’t near 150%. The ratio skyrocketed after the 2001 fiscal year as a result of the financing of the FINSAC program.

      1997: 86%
      1998: 91%
      1999: 94%
      2000: 86%
      2001: 88%
      2002: 115%
      2003: 120%
      2004: 123%
      2005: 121%
      2006: 117%
      2007: 114%
      2008: 110%
      2009: 110%
      2010: 124%
      2011: 131%

      You know I could quite easily AND accurately say “for those who don’t don’t know, in 1985 our debt to GDP ratio hit 212%”.

      • Uh-oh! It is amazing how dta-driven facts outshines fiction. Keep it up, Jay might just ban you permanently from his blog!! 🙄 He doesn’t like facts, especially those that he can’t manipulate periodwise.

        But since you are boring us with concrete data, it might surprise you that one of the highest interest rate, in real terms (versus nominal interest rate), occurred in 1987 (~17 %)!

      • I know that the debt to gdp ratio was 212% in 1984, not 1985. Lastly, I read in the gleaner in 2002 that the debt-to-gdp ratio was 150% I trust my source, I really don’t care if you got yoUr statistics from PIOJ OR STATIN

        • Interesting that I’ve never heard anyone other than you claim that our debt to GDP was anywhere near what you’re claiming in the early 2000s. But if you wish to denounce PIOJ and STATIN and adhere to your claim than I guess there isn’t much I can do.

  2. Woa ho my nightly entertainment at “Fiction blog” 🙂

    • Jamaicans in the face of problems ” no problem mon everything nice”.
      Hahaha.

      Come April Peter will provide even more entertainment . 🙂

      Sent from my BlackBerry® wireless device from LIME.

    • I see comrades like entertainment. From “shellying” down the place in london to playing mas in Trinidad in the face of severe crises and amidst the bitter medicine being given by the finance minister.

      Yes comrades truly like entertainment. Lol dwl.

      Sent from my BlackBerry® wireless device from LIME.

  3. I watched CVM news earlier tonight and saw the CEO or chairman of Sagicor confirm that this was the best deal and commending the negotiating team for holding out on the “hair cut” until the IMF relented.

    The measures are tough but guess what… seems like it could have been a lot worse. If there was a cut in principal, Byles said Sagicor’s loss would be about 8 billion dollars.

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