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”.
I certainly agree there is a need to “have more influence in diplomatic dialogue with international Financial Insinuations”, which is not the same as “more dialogue! However, forgive me for being too simplistic, but how can our Caribbean Governments hope to influence institutions such as the World Bank, IDB, IMF and others when we are so heavily indebted to them! As the saying goes “the borrower becomes slave to the lender” At the time of writing this, 8 English-speaking Caribbean countries[1] have received in the recent past, or are currently receiving, financial assistance from the IMF. Many Caribbean people I speak to say ‘Oh but its’s O.K. its Aid’. When will we realise there are no free lunches – these are loans and they must be repaid.
So am I saying we shouldn’t borrow? No, but I am saying we should carefully consider what we are borrowing for. We cannot borrow to ‘maintain’ inefficient and costly public services, nor to create low end jobs. We must borrow with a view to creating a cost effective and efficient public service and to support growth in our economy. Indeed, former British Prime Minister, Tony Blair said “Aid has transformed Africa, now is the time for governance and growth.” (The Guardian Newspaper, March 2013).
There is no easy answer to the consequences of the global economic slow down for any nation, but the time has come for us in the caribbean to focus and get started on building a viable future for our nations, one that long-term will wean us off donor funding and debt. So here’s some suggestions on how we start:
Spend within our means: we can’t do what we have always done, i.e. and increase the public sector to keep people employed. We must recognise that the biggest proportion of our public sector budget is salaries and take steps to address this. Does that mean slash and burn…not at all but carefully considered plans to reduce headcount through attrition, performance management and voluntary seperation.
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 us at info@kitchconsulting.net