IMF statement on Dominica

An International Monetary Fund (IMF) mission led by Aliona Cebotari visited Dominica from August 13 to 23 for the 2012 Article IV consultation on economic developments and macroeconomic policies. The mission met with government and private sector representatives as part of this consultation.

The following statement was issued on Friday by Cebotari.

“The authorities’ decisive actions to support the recovery through public investment have helped Dominica withstand a challenging economic environment. However, weak demand and an outbreak of banana leaf disease will continue to hold back the recovery. Growth is expected to remain subdued this year, accelerating gradually to around 2 percent over the medium term. Rising global food prices may contribute to a modest rise in inflation and weigh on the balance of payments in 2012, but pressures are expected to subside later next year.

“Against this background, the discussion between the authorities and the IMF staff focused on policies needed to maintain fiscal sustainability without derailing the economic recovery and on ways to safeguard the stability of the financial system.

“Subdued growth is putting increasing strains on the fiscal position and there is limited policy space to support activity. Ensuring fiscal sustainability going forward will require some retrenchment in the fiscal deficit, and the mission supports the authorities’ intent to return to their primary surplus target of 2.4 percent of GDP within the next three years and to target this balance over the cycle going forward. The required adjustment effort will allow debt to fall comfortably below 60 percent by 2020, as targeted by the government. Focusing the adjustment effort on streamlined current spending and tax base broadening, while preserving productive infrastructure and social spending, should help minimize the adverse impact of the adjustment on growth and employment. Stepping up reforms of the public financial management framework would also help maintain fiscal discipline and shore up the adjustment effort.

“Without monetary or fiscal policy room to support the recovery, the main policy focus should turn to engaging the private sector through structural reforms that would boost competitiveness and productivity, and improve the country’s long-term growth prospects. These reforms could entail measures that will minimize the costs of doing business, increase access to finance by setting up a credit information bureau and facilitating collateral recovery, and improve the quality of public expenditure.”

“The authorities and the mission also discussed policy actions and reforms to assure continued financial sector stability. These include active monitoring and vigorous action to address risks in the financial system, which may arise from exposure to the failed regional insurance companies, a weakening credit portfolio, and potential spillovers from regional financial markets. Additionally, efforts should be directed at strengthening the supervision and regulation of the financial system, including through a prompt corrective action framework and aligning the provisioning requirements with best international practice.”

“The IMF will continue to have a close dialogue with the authorities as they address these challenges. Upon its return to Washington, DC, the mission will prepare a report to the IMF’s Executive Board, which is tentatively scheduled to consider staff findings at end-October. The mission would like to express its gratitude to the authorities for their candid discussions, timely provision of information, and gracious hospitality. The mission also wishes to thank all other stakeholders for taking the time to meet with the mission to express their views.”

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43 Comments

  1. Jacky chan
    September 10, 2012

    I must give the Labor Party administration credit for remaining in power for so long even after being such a total failure. I must give the labor party credit for using all their corruption distractions to their advantage. The Labor Party has taken advantage of it’s resources and it authority to hang in there amidst the blatant corruption and corruption allegations. So while …………. are diligently and successfully paddling through the ocean of malfeasance and corruption the very things that matter to the everyday life like – food on the table, jobs, financial security, agriculture , production – economic growth – the labor party is more than happy to not deal with or have to demonstrate their ability to manage and grow the economy. The Labor party knows how to swim in a cesspool – they know just how to survive among the schemers and scum that stay afloat in a cesspool. The labor party would rather remain in the primary stages of a sewage treatment plant simply because in the secondary and tertiary stages of treatment there is clarification and purification- that is where one can begin to get see through the water- less turbidity.

    How long can this Labor Party administration remain in the raw sewage, it is just a matter of time before the bacteria eat em up. The IMF has been using euphemism to relay the bad situation in Dominica but then again who needs the IMF when the heat in the kitchen is obvious.

    There is a three stooges episode where Curly decided that to prevent their boat from sinking he had to drill another hole in the vessel so that the water coming in could go out. The last 13 years of this administration is representative of this three stooges sinking boat episode. Go figure!!!!!!

    • Anonymous
      September 11, 2012

      LOL that was so funny but bang on! Never thought I could laugh at this horror story but you had me laughing. I like the way you have conveyed the reality. Well Done!!!!!

  2. MAMIZOO
    September 10, 2012

    I try to be fair and balance on political issues and I must admit that because the negative immensely outweigh the positive I understand that the apologists for those in power feel like I am anti labor or UWP Ite. I will continue to call it as I see it. The brutal truth is that the labor party after almost 15 years in power cannot sincerely prove their worth. All we hear is rhetoric and nothing substantial. Yes we got a stadium, the rehabilitated West Coast road, a few sea walls, a school building; scholarships to china and Venezuela. If I forgot something please remind me however I am sure that if you continue to read my blog we will agree that any other achievement that I may have forgotten will not enhance the performance status of the current administration.
    The Freedom party built roads, schools, sea walls and also there were students leaving on scholarships to other countries. In fact if we compare the above noted achievements it is safe to say that the labor party’s achievement in 13 years is not even within sight distance of what the Freedom party achieved in 15 years particularly when we take into consideration the rebuilding of Dominica after Hurricane David of 1979. Did the Freedom Party make mistakes? Absolutely so. Could they have done more ? off course, the more the merrier.

    With regards to the UWP administration I must also admit that the administration performed remarkably and we can only wonder what we would have achieved if they too were given 13-15 years in office. The evidence is here – the UWP in 4 years built roads, schools, sea walls and a Water Mountain (lol)- thanks to instru. To the labor party apologist the only outstanding difference is the stadium but then again the same stadiums is built in Afirca, Antigua, St Lucia, Grenanda etc. Just feel like I need to add this. (lol). To the pragmatist , the fair and balance thinker there are blatant and fundament differences between the performance of the past two administration. The separation clearly is in the economic development sector. While the other two administration were also building infrastructure the people grew economically; the people aspire to economic independence ; there were more entrepreneurs, more economic ventures, much more emphasis on a productive economy; essentially less poverty. The current administration cannot and has not been able to claim economic bragging rights. Fortunately or Unfortunately they can’t because they will have to prove it.

    • non
      September 12, 2012

      “I try to be fair and balance on political issues”

      man you not perfect so quit seeking validation for every comment you make.

      you don’t know??? anyone who doesn’t do or say something we want is selfish??? NO???

      stupes just give your two cents and be on your way man

  3. Morihei Ueshiba
    September 10, 2012

    We demand an apology from the IMF, how can you call skerrit a liar? :wink:

  4. Rastar-Marn
    September 9, 2012

    But how is it no Body is talking about all that Aggregate Material D French pardner getting from Colihaut and all that Free raw material they getting in Layou River, and the operation(s) in La Pointe,,,

    Waaay allyou must be blind Boi,,, You see all dey giving allyou is a couple days every month or so to drink a-Rum and then they throwing D same sand in allyou eyes blinding allyou with all that materialistic Crap like Cell Phones and mombo-jumbo and allyou not seeing what really matters,,,

    I bet you any auditor who go and look at the accounting of those companies would be amazed at the kind of Loot Mista dem bringing in from Dominica’s Exploits,,,

    Dey didn’t take D IMF Chick to see dat man,,, According to the word on the Street All the way St. Croix dem man going and sell dat material you know,,, I wonder if is not from Dominica self dey getting the material for the runway over dere in St. Vincent for the International Airport,,,

  5. >>>>>>>>>>>>
    September 9, 2012

    We will only learn when we have worked and at the ending of the month we cannot get paid. Fact is this regime has failed the country and its people.The government is bankrupt of everything. But what do you expect of a regime that has no respect for the constitution of the land.
    YOu call our struggles 18- 3………
    THOSE WHO COULDN’T HEAR HAVE ALREADY STARTED TO FEEL…..

  6. street side
    September 9, 2012

    Dominicans…who? lol them ppl don’t listen to issues papa…..even if IMF EU UN told them something negative and how to improve on it..

    They so small in their minds set eating one another up like crabs….dislike the vibes in that island..

    not healthy for no growth many are illiterate even some of those who turn pros before any levels of productive success……..wow lol

  7. One Dollar A Year
    September 9, 2012

    The point is Dominica’s fiscal situation will worsen since we do not have competitive alternatives. Let me see:

    Both investment and tourism promotion is WEAK in terms of financial and human resource capacities. Both Invest Dominica and Discover Dominica needs a injection of funds and new ideas… the Human Resources iinparticular have become DEAD WOOD… The truth is the life cycle of these respective organizations accelerated since there are just no NEW IDEAS, and the ideas that have cropped up in recent times, are interestingly, not capable of drawing new business…

    I need not go further… but in closing, the Ministry of Agriculture, has failed miserably ini addressing the various issues affectiing the agricultural sector, and in particular BANANAS…

    The IMF has polished the true situation but the truth is we are doomed, our economy is in shambles, Government has no quick fix or no alternatives due to lack of innovation and lack of real world ideas…

    Hope we at least float…during this and the next fiscal periods… :?: :twisted: :mrgreen: :lol:

    • New ideas?
      September 10, 2012

      One dollar a year – do you have any suggestions for new ideas in the tourism sector? Let’s harness the power of people online right now to put forward suggestions. Discover Dominica and Invest Dominica can use any thing suggested here. Lets create the change we want to see in Dominica ourselves!

      My suggestions include embracing the natural assets of the “Nature Isle”: Really live and breath environmentalism. Support hotels to improve energy efficiency, help reduce national waste creation and consider biodegradable packaging (plastic bags, polystyrene containers etc), further promote the Waitikubuli National Trail (and have walking guide-booklet detailing the path and places to stay if walking multiple segments). I am sure there are many other suggestions. Lets post positive ideas below!

      • Anonymous
        September 11, 2012

        Wind Turbines. Thats easy and can be done now like Rosalie Bay Resort has done. Wind Turbines should be set up by Government to feed at least the private sector so businesses can save millions of dollars annually and invest those savings in their product and export potential to increae foreign revenue coming into the cuntry which is what it is all about. DUH. Instead of that stupid useless State Palace, for example, can you imagine if that money had been used to build these wind trubines and fund the vision to completion? That would have produced immediate powerful results for the positive for the country. So simple. So simple. Makes one wonder what the france do these guys talk about when in cabinet. Not one blessed idea. Zero vision.

  8. huh?
    September 9, 2012

    rubbishhhhhhhhhhhhhh

  9. Rastar-Marn
    September 9, 2012

    Well guess No One reads the real news except For Rastar-Marn man,,,

    I doh see mamzelle talking nothing about Tourism like all them Man sitting at the helm, and what exactly Monetarily they looking for to claim Dominica’s economy substantially capable of sustaining itself,,,

    Before dem man created all dis Monetary Systematic Schemes to defraud Poor Folks, people was surviving all over this Globe with their basic necessities and a little extra to share with their neighbors,,,

    So question is do we really need these Institutions who appear to be back/supported by the same companies that come manipulating Economies for their CFOs, CEOs, and their Fellows unjust enrichment, personal and professional financial Gain(s)???

    Does anyone know that it was Eric Holder who was a lobbyist at the time working for Chiquita who participated in crippling the CARICOM Nations’ Banana industry??? And D man is a Bajan you know,,,

    • Nac Vibes
      September 10, 2012

      Yes Rasta, you are so right.
      Remember, when the Isralites worshiped and praised Jah they prospered, when they started emulating the ways of those who oppressed them they fell further into bondage, same thing for these little Caribbean states

  10. "O" STRESS!
    September 9, 2012

    Is Thompson Fountain still working with the IMF? Just asking? Just asking.

    • Anonymous
      September 9, 2012

      Stop having people to do work for you. Go get yourself informed. It’s uninformed people like you that have the country in the terrible state of failure that it is in today.Your lazy. You must be a Red clinic groveller.

  11. new york
    September 9, 2012

    u got uncle sam in your business hmmm u’ll know

  12. d/ca
    September 9, 2012

    wow that was an interesting topic for me.

  13. September 9, 2012

    i thought we were done with imf like three years ago
    honestly

  14. B-political
    September 9, 2012

    hope lenny reads this one , in its entirety, on between you and me….

    • MET YO
      September 10, 2012

      of course he will! you think is good news you read there??? lmao

  15. evenhanded
    September 9, 2012

    We expect that our economists -Dr Fontaine, Dr Maureen Paul, Messrs.S A S Lestrade, Franklin Watty and Mark Marie et al- will explain the real and deeper meanings of the IMF jargon in this release!

    • Met Veyais
      September 10, 2012

      What about the Douglas economist who likes to kiss up to every administration that is in power.

  16. anonymous2
    September 9, 2012

    How observant of her. The bankers puppet. What a protocol hoax. Another fruitless meeting. Don’t borrow any more money from these people. Start producing and knocking down hindrances to business’. Like the import taxes for one.

  17. Bushmaninda
    September 8, 2012

    “The authorities’ decisive actions to support the recovery through public investment have helped Dominica withstand a challenging economic environment. Are they referring to the road and water projects?

    “However, weak demand and an outbreak of banana leaf disease will continue to hold back the recovery. Is that why banana production is at an all time low?

    This report reads like it is written by a Dominican who left Dominica ten years ago and has not been back to visit during the ten years. He has now returned bury a love one sees the Roseau/Portsmouth road and is talking about how much progress has been made. Those of us who live here knows that that “progress” did very very little for the economic development of the people on the island. The IMF may be seeing the right figures and hearing the right talk but we ain’t feeling it. The IMF is not known for its practically or benefiting the masses.

  18. Anonymous
    September 8, 2012

    A imperialist system wishing to subject a country to asking for grant aid…which yes is ok…but we have to return to productivity and export…a not a timid IMF report to show that we are not fighting for growth in agriculture manufacturing and tourism….

  19. Corrupt_Bastards
    September 8, 2012

    Subdued growth 8-O 8-O But wait didn’t the great one say we doing better than our neighbors, Tax Base Broadening wow wow wow so Vat not enough

  20. ROSEAU VALLEY
    September 8, 2012

    It should be noted that on 7 Sept.2012, the IMF also reported that all countries in the Caribbean still face low growth and high debt. Coming out of a meeting held in Trinidad, the IMF said that the Caribbean region has important strengths on which it can build namely political stability, strong investor protections, and observance of the rule of law. The IMF identified these factors as positives that made Caribbean as an attractive destination for investment.

    One wonders to what extent is Dominica is politically stable, possess strong investor protections and really observing the rule of law, including the provisions of its own constitution when the eligibility of the PM as an elected member of the Parliament of Dominica is still in doubt, the PM rules by decree in allowing day off from work without consultation with the Employers Federation or with Trade Unions, he appoints Police Chiefs and even a constitutional head of State in violation of the Constitution of Dominica.

    • Nac Vibes
      September 10, 2012

      It is natural for intitutions such as the imf to ignore real happenings in countries such as ours because it’s real goal is to help the formation of the “NEW WORLD ORDER” a one world government, with One leader, one bank, one religion and the denial of God.
      Dark days are ahead.

  21. ROSEAU VALLEY
    September 8, 2012

    According to the IMF the decisive actions of the authorities’ in Dominica to support the recovery through public investment have helped Dominica withstand a challenging economic environment.

    What public investment is the IMF referring to? The building of the State Palace, the resurfacing off roads, the construction of the State College by Chinese with none of that money circulating in a drowning economy of high youth unemployment?

    In fact the IMF itself has confirmed the weak demand in the economy acknowledging that people are out of work and broke. Money is not circulating, retail sales are low and both personal and national debts are on an all time high as the money from all the capital expenditures do not trickle down to the average Dominican.

    Clearly, long before the recent outbreak of the Black Sigatoka disease, Dominica’s production and export of bananas were on a steady decline. Therefore it seems disingenuous for the IMF to blame Dominica’s sluggish economic recovery on the recent challenges with disease, which government operatives on KairiFM’s Upper Level programme has shamefully sought to ridicule and chide the expert on the matter -Dr Shillingford about.

    Despite the relative good news from the IMF (Tuned in to the Next Level programme on Kairi for the economic and political spin on that report), we must not be over-confident. Tony Astaphan will recall that in August 2011, the same IMF staffer (Aliona Cebotari) presented a positive assessment of Saint Lucia’s economy saying that St. Lucia’s economy recovered rapidly from the global crisis, supported by timely policy action by the authorities and a rebound in construction and tourism. St. Lucia also received the World Bank’s highest rating for doing business in CARICOM in 2011. Nevertheless, in December 2011, the Stephenson King (UWP) Administration was voted out of office by ST Lucians aided by the efforts of Mr. Astaphan- the spin master.

    To understand the coded message of the IMF, one may wish to read the recent statement of the Fund on Antigua and Barbuda in August 2012, which reported that Antigua was laying the foundation for long-term economic growth through its continued implementation of the program Stand-By Arrangement (SBA).

    Whereas the IMF did not mention the decline of tourism in Dominica in its statement on ST Kitts and Nevis in June 2012, it states that
    “ the declines in tourism revenue and foreign direct investment-related construction triggered a sharp contraction in the country’s economic activity, deterioration in its fiscal position, and a significant increase in public debt levels…. the current account deficit is expected to widen due to the dual impact of a nascent economic recovery and an increase in food and fuel prices.

    I have said this because I expect LEN&AS to highlight this report on the next Upper Level Programme. To a large extent these report of the IMF are merely recycled, carefully selected words. One will note that the report hardly mentions the rapid decline in the agricultural, construction and tourism sectors. It is , however, good news that the IMF has noted the need to maintain fiscal sustainability without derailing the sluggish economic recovery and safeguarding the stability of the financial system in an environment in which our political directorate seems clueless or limited in advancing policy direction to support activities for economic advancement of the country.

    • Anoushah Alie
      September 10, 2012

      I like how you summed things up. Very nice!

    • winston warrington
      September 10, 2012

      What is the meaning and function of your last paragraph?

      • realist
        September 10, 2012

        Why don’t you detail what you don’t understand. the last paragrapgh is pretty clear.In a nutch shell – We are lost and on our way to fail state status.I must also add – while those in charge have become wealthy.
        Now Winston why not comment on the IMF report – say what you think. Is the IMF lying and dislike Dominica?. Is the IMF playing politics like the opposition. Come On be intelligent and stop living on other people’s comments. It seems to me that this is the only way you can express yourself. For one moment think outside the partisan box and make a valuable comment for dominica.

  22. Looking In
    September 8, 2012

    Correction – leaving more more…should be ‘leaving more money”

  23. MET YO
    September 8, 2012

    Sooooo in a nutshell. WE NOT DOING GOOD

  24. Looking In
    September 8, 2012

    “These reforms could entail measures that will minimize the costs of doing business, increase access to finance by setting up a credit information bureau and facilitating collateral recovery, and improve the quality of public expenditure.”

    Okay Mr. Skeritt, here is an idea for you…Minimize the costs of doing business…such as, yes, lower import duties and tariffs. Checked the government website today just to realize that there are five (5) different taxes added to imports in the country. NOW, this is crazy. In order for the country to grow economically, taxes must be reduced thereby leaving more more in consumers hands so they could spend. If taxes are low, people will have more discretionary income allowing them to buy more goods and services which in turn helps the eoconomy grow. If import duty and tariffs are low, there will be more goods imported thereby creating more revenue for the government.

  25. ROSEAU VALLEY
    September 8, 2012

    This report puts in focus the recent statements by Mr. Skerrit that the VAT will not be removed and the need for government to reduce discretionary public sector spending. The IMF has confirmed that government must focus on adjustment efforts aimed at streamlining current spending and broadening of the tax base (in other words, government must find more ways to tax Dominicans more).

    It is also noted that the IMF has also called for “preserving our productive infrastructure” without mentioning the almost non-existent productive sector to be preserved and preserving our “social spending” programs (like the Red Clinic), while calling for “improvement the quality of public expenditure.

    In light of government’s intention to build, own and operate hotels to compete with the private sector, the IMF has warned that “Without monetary or fiscal policy room to support our economic recovery, government’s policies must focus on engaging the private sector through structural reforms that would boost competitiveness and productivity, and improve the country’s long-term growth prospects.

  26. 4u2C
    September 8, 2012

    DId they give you how much we owe PETRO CRIBE? Did they get a report from social Security on the employment figure in the country and income generation? Thatreport missing too many important deatils…Thses guys was on a week vacation not to do real work. Or they using Dominca for a Pre-chool project…..

    Tell IMF send some true EConnomist and come and do a real job!!

  27. langal
    September 8, 2012

    wait for next year and there will be weeping and wailing and the gnashing of teeth. not even de red clinic that going to help allu

    • DD
      September 10, 2012

      weeping and wailing and gnashing of teeth upon you and your generation. I reject these negative words that you have spoken upon our country. Speak these words into your life, not into the life of the Dominican populace.

  28. langsal
    September 8, 2012

    the budget did not reflect that sad news the IMF give

  29. same person
    September 8, 2012

    wow, we doing so good we evening giving antigua and st kitts loans, we sending money for our families in the u.s….
    how worst can the lying get. sorry for those that cannot read

    • MKG
      September 9, 2012

      It’s worse than that….it’s those who read and won’t understand what they just read.

      Then they going to wait on the next level program to explain it for them, and then they will repeat anything they hear blindly.

      A BUNCH OF IDIOTS ME SAY…lol

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