Full Video: The Cost of Corruption... Jamaica's Barrier to Prosperity

[RichD]

This serves to show the importance of having a good credit ratings....doesn;t it?



In a sense the bonds are being underwritten by the IMF, which brings up their creditworthiness...

Give me something that I can chew on in terms of the 50% local bonds purchases

i quoted directly from the ministry of finance debt management data

here are the numbers for FY2011/2012

EXTERNAL DEBT -US$ 8,586.84

DOMESTIC DEBT - US$10,454.09

( in Millions)

so if you add that come up to the $18 billion figure being quoted

[RichD]

Jamaica’s increasing interest rates and debt burden are partly due to an increase in the share of debt that is domestically financed. Starting in the early 1990s, the composition of Jamaica’s debt changed
drastically, exhibiting a marked shift from a reliance on external to domestic creditors and, at the
same time, from official bilateral and multilateral assistance to private sources of funding. At the
beginning of the 1990s, the share of external debt dropped sharply from nearly 90 percent of the
total to a low of about 40 percent a decade later. Since then, the share of external debt has increased
somewhat, accounting for 47 percent of the total debt stock in fiscal year 2009/10; but it remains far
below the levels of two decades earlier.
Although it can be argued that a greater reliance on domestic and private creditors is a positive
development -in so far as it encourages the development of the domestic financial system and can
enhance the effectiveness of monetary policy, as well as easing the balance of payments problems
associated with foreign debt- in Jamaica’s case it has translated into much higher effective interest
rates on public sector debt. Effective interest rates on debt contracted domestically are significantly
higher than on external debt, averaging about 17.9 percent annually over the last decade. In
comparison, effective interest rates on external debt only averaged about 7.4 percent annually during
the same period.
1

clipped from an interesting document

http://www.cepr.net/documents/publications/jamaica-qr-2011-04.pdf

[franksterr]

clipped from an interesting document

http://www.cepr.net/documents/public...qr-2011-04.pdf

It seems to me that this Domestic debt is a slight of hand being perpetrated, by the Western lending institution, JDX is being used to unlock IMF funds???.....WHY DO WE STILL NEED IMF et al APPROVAL????



On January 14, 2010 the Jamaican government launched the JDX, a preemptive debt-restructuring scheme intended to make public finances more sustainable and unlock funding from the IMF.
Under this outlook it will remain difficult for the government to pursue any pro-growth or development-oriented spending measures.
http://www.cepr.net/documents/public...qr-2011-04.pdf

[RichD]

It seems to me that this Domestic debt is a slight of hand being perpetrated, by the Western lending institution, JDX is being used to unlock IMF funds???.....WHY DO WE STILL NEED IMF et al APPROVAL????

under the PJ Patterson administration they decided that they did not wat these multilateral organizations dictating policy so they went instead to the private markets for finance. The domestic market was more than willing to play. as domestic interest rates skyrockets more and more people were jumping into the market ( i remember times when my parents were getting 43% per year on government bonds ) it had the effect of almost completely killing manufacturing in Jamaica _ SEPROD which was a Caribbean leading manufacturer of laundry soap and cooking oils etc. is now just a holding company all they do s trade government paper.

when the JLP came in they decided that they had to get rid of as much of the high interest debt as they could by going back to multilateral lenders. the JDX was one of the conditions of the latest IMF agreement.

[franksterr]

under the PJ Patterson administration they decided that they did not wat these multilateral organizations dictating policy so they went instead to the private markets for finance. The domestic market was more than willing to play. as domestic interest rates skyrockets more and more people were jumping into the market ( i remember times when my parents were getting 43% per year on government bonds ) it had the effect of almost completely killing manufacturing in Jamaica _ SEPROD which was a Caribbean leading manufacturer of laundry soap and cooking oils etc. is now just a holding company all they do s trade government paper.

when the JLP came in they decided that they had to get rid of as much of the high interest debt as they could by going back to multilateral lenders. the JDX was one of the conditions of the latest IMF agreement.

So we still in the clutches of the IMF et al...did they ever leave?

[RichD]

So we still in the clutches of the IMF et al...did they ever leave?

we had no borrowing arrangement with them from about 1996 -2010

[franksterr]

we had no borrowing arrangement with them from about 1996 -2010

That maybe the case but we are still behaving in a manner so as to win their approval - thats control.

[RichD]

That maybe the case but we are still behaving in a manner so as to win their approval - thats control.

so even if IMF is not in the picture is their fault?

[franksterr]

so even if IMF is not in the picture is their fault?

The reality is they are in the picture....aren't we still seeking their approval?

[RichD]

The reality is they are in the picture....aren't we still seeking their approval?

yes they are back in the picture, but i get the feeling you are trying to imply that anything done in the past was done to this end. I would suggest that this is not an accurate conclusion.( I base my position on reviewing the regular country reports the IMF does for all member countries )

[franksterr]

yes they are back in the picture, but i get the feeling you are trying to imply that anything done in the past was done to this end. I would suggest that this is not an accurate conclusion.( I base my position on reviewing the regular country reports the IMF does for all member countries )

Yes...it is the unspoken goal of the IMF et al to impoverish and or keep poor and dependent all socalled third world countries.

[RichD]

Yes...it is the unspoken goal of the IMF et al to impoverish and or keep poor and dependent all socalled third world countries.

so you discount political corruption as contributory to this situation?


i guess we are doomed to stay where we are if that is representative of popular thought.

[blugiant]

so you discount political corruption as contributory to this situation?


i guess we are doomed to stay where we are if that is representative of popular thought.

oww iss corrupsham ann prosperichteee defined?

luv argument dat share ann spread de blame fe deflect just criticism

popular thought iss oww media teach peeps fe tink. brainwash ting a gawn


ear wan jlp politrickkstah bawlinn aftah imm lost oww imm got good roads built inn imm district butt de poor uneducated voters were bawlinn bout oww dem neva gitt nunn aff de wurk

[franksterr]

so you discount political corruption as contributory to this situation?


i guess we are doomed to stay where we are if that is representative of popular thought.

Local political corruption (large scale financial type) only exist because it is allowed and fostered by the Western governments.

If we do not recognize the role play by these financial institution in the perpetuation of poverty....then we are doomed

[blugiant]

Yes...it is the unspoken goal of the IMF et al to impoverish and or keep poor and dependent all socalled third world countries.

natt sure mii agree widd dat. itt bout xxtractinn ann transferinn more wealth fram de rich to da poor.