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Developing nations should lead economic recovery, says Rapley
Published: Wednesday | February 11, 2009
Daraine Luton, Staff Reporter
United States President Barack Obama walks away after greeting Air Force security forces who are being deployed to Iraq before boarding Air Force One at Andrews Air Force Base in Maryland yesterday. - AP
JOHN RAPLEY, senior lecturer in international relations and politics in the Department of Government at the University of the West Indies and president of Caribbean Policy Research Institute, said the stimulus package passed by the United States Senate Tuesday might not lead to increased spending in that country.
"The money that is being pumped into the US, the British and, to a lesser extent, the Canadian economy is going to make its way into emerging markets," Rapley said.
The US Senate voted 61-37 to approve the US$838-billion package, which is aimed at stimulating the US economy through job creation and increased consumer spending.
Unemployment line
More than 3.6 million Americans have joined the unemployment line since last year, but the Obama administration hopes to stimulate spending through the creation of various capital projects in the US.
However, Rapley argued that people in the US, Canada and the United Kingdom would be inclined to invest their money in developing economies, which offer a higher rate of return.
"I believe that the developing countries are going to be the ones to lead the developed countries out of recession," Rapley said, while arguing that Jamaica could be one of those countries to lead the way if it takes urgent steps to produce more in an efficient manner.
Jamaica's economy is highly dependent on earnings from bauxite, tourism and remittances, but all three sectors have recorded decline as the deepening world financial crisis places a stranglehold on world economies, including Jamaica's.
Yesterday, Opposition Spokesman on Industry and Commerce, Senator Mark Golding, said the stimulus package could help Jamaica's ailing economy, but probably not before next year.
"I don't anticipate that it will have an immediate impact but, over time, to the extent that it is successful in pulling America out of the recession that it is in, economies like Jamaica's can benefit," Golding told The Gleaner yesterday.
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Published: Wednesday | February 11, 2009
Daraine Luton, Staff Reporter
United States President Barack Obama walks away after greeting Air Force security forces who are being deployed to Iraq before boarding Air Force One at Andrews Air Force Base in Maryland yesterday. - AP
JOHN RAPLEY, senior lecturer in international relations and politics in the Department of Government at the University of the West Indies and president of Caribbean Policy Research Institute, said the stimulus package passed by the United States Senate Tuesday might not lead to increased spending in that country.
"The money that is being pumped into the US, the British and, to a lesser extent, the Canadian economy is going to make its way into emerging markets," Rapley said.
The US Senate voted 61-37 to approve the US$838-billion package, which is aimed at stimulating the US economy through job creation and increased consumer spending.
Unemployment line
More than 3.6 million Americans have joined the unemployment line since last year, but the Obama administration hopes to stimulate spending through the creation of various capital projects in the US.
However, Rapley argued that people in the US, Canada and the United Kingdom would be inclined to invest their money in developing economies, which offer a higher rate of return.
"I believe that the developing countries are going to be the ones to lead the developed countries out of recession," Rapley said, while arguing that Jamaica could be one of those countries to lead the way if it takes urgent steps to produce more in an efficient manner.
Jamaica's economy is highly dependent on earnings from bauxite, tourism and remittances, but all three sectors have recorded decline as the deepening world financial crisis places a stranglehold on world economies, including Jamaica's.
Yesterday, Opposition Spokesman on Industry and Commerce, Senator Mark Golding, said the stimulus package could help Jamaica's ailing economy, but probably not before next year.
"I don't anticipate that it will have an immediate impact but, over time, to the extent that it is successful in pulling America out of the recession that it is in, economies like Jamaica's can benefit," Golding told The Gleaner yesterday.
[email protected]
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