Jamaica and the Practice of Dependency

I haven’t written about Independence Day, and now that the long weekend is winding down, I am not going to get to it. But here’s a perspective from Afifa Aza. I suspect many might agree with her comments on this cycle of dependency.

As of July 11, 2017 revenue earned by the Tourism Enhancement Fund, the Jamaica Civil Aviation Authority, and the Culture, Health, Arts, Sports and Education (CHASE) Fund will go directly to the consolidated fund instead of to the revenue accounts for these agencies. The National Housing Trust (NHT) will also have it’s surplus put directly into the consolidated fund.

The Government says that the reason for doing this is to provide budgetary support. Think about needing budgetary support when your debt to GDP ratio is 115%. You always need support to finance your budget. Jamaica cannot repay the debt it owes nor can it finance its own operations. Jamaica needs IMF loans. Jamaica has been borrowing money from the IMF since 1963. It terminated borrowing in 1996 and returned to a borrowing agreement in 2010.

The IMF lends money to countries if they agree to take measures to improve their…

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