This article was first published on the 17 May 2013 on my former blog felicialinch.com
Today I read with interest the Caribbean Community (CARICOM) Foreign Ministers agreeing on a number of new initiatives to influence global politics, and, to have a greater voice as “there is need to have more diplomatic dialogue with international financial institutions”. Perhaps I’m too simplistic but how can the Caribbean influence institutions such as the World Bank, IMF and others when we are so heavily indebted to them! As the saying goes “the borrower becomes slave to the lender”
Eight English-speaking Caribbean countries[1] are currently receiving financial assistance from the IMF. Many Caribbean people I speak to say ‘oh but its Aid’. When will we realise there are no free lunches – these are loans and they must be repaid.
Questions are being asked about Africa and their dependence on Aid. The Guardian Newspaper, March 2013 ran an article by Tony Blair, former U.K. Prime Minister headlined “Aid has transformed Africa, now is the time for governance and growth.” Doesn’t this equally apply to us! Many would say no, we’re not like the African nations, after all many of the English Speaking Caribbean countries have achieved some or all of the Millennium Development Goals and, according to the UN Human Development Index – 14 Caribbean countries appear in either the Very High HD, High HD and Medium High HD categories. Yet more and more as I advise Caribbean Governments I see us taking loans from IFI’s to ‘prop up our economies’ not to invest or create growth. In addition, our management of those funds often suggests that ‘good governance’ has still not yet been achieved.
So what’s the answer? Of course there are no easy answers, but here are five principles to get us started:
- Spend within our means: we can’t do what we have always done, i.e. borrow and spend and eventually good times will come back again s its o.k. We are going to have to adjust our lifestyles, and spending habits. This applies equally to Government and individuals;
- Learn to say No: I see many Caribbean Governments or regional Institutions taking monies from IFI’s or donors to fund projects that are not consistent with their national Vision… assuming they have one. Taking on a project because funding is available in the hope that you can try and make that project fit your needs is a waste of time, energy, money and worse still stops us focusing on the real issues.
- Have the courage to lead: our leaders need to have the courage to make the tough policy decisions, even if unpopular. In Barbados where I live a former Minister of Health saw the spiraling debt for the health service and took the highly unpopular decision to introduce prescription fees – this was both necessary and appropriate but even his own Ministerial colleagues decried him initially.
- Grow up: as citizens we must grow up- we cannot expect our Government’s to do everything or expect everything to be free. Social safety nets are supposed to be just that, a safety net to help persons in time of need, not a life style of dependency on the state, or an entitlement. Those that can pay should pay.
- Be prepared to persevere; there are no quick fixes to the situation most of our Caribbean countries face BUT we are a resilient people – now is the time to remember ‘the race is not to the swift nor to the strong but to he who endures to the end’
I’d love to hear your thoughts about how the Caribbean countries can chart a new course in these turbulent times so leave a comment or email me @ flinch@kitchconsulting.net
[1]Jamaica, Belize, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines and more recently Antigua and Barbuda