Dominica and other member countries of the Eastern Caribbean Central Bank (ECCB) have been advised to turn to the International Monetary Fund (IMF) for assistance in the face of the international financial recession.
According to the BBC, St. Kitts and Nevis Prime Minister Denzil Douglas said in his budget presentation Tuesday, the advice has come from the ECCB. Dominica is one of six member nations of the ECCB. St. Kitts and Nevs, Antigua and Barbuda, Grenada, St. Lucia and St. Vincent and the Grenadines are the other members.
Dominica has been seeking support from the IMF over the years to help keep its economy on track.
After a four-day visit to Dominica in May 2009, the IMF had reported a decline in real Gross Domestic Product (GDP) growth for Dominica, brought on by the global financial crisis. The IMF had stated real GDP growth in 2009 was about 1% compared to the 2008 figure of 3%.
In July 2009 the IMF Executive Board approved about US$5.1 million for Dominica, to help the country boost growth and “limit the decline in Dominica’s external reserves.”
Its February 2010 report was the latest of the IMF mission on Dominica’s economic position, in which the IMF predicted growth of 1.5% for the island in 2010. The IMF had said local authorities had been taking on sound economic policies to face the effects brought on by the financial crisis.
– DNO Correspondent
There are several new alternatives to the IMF-World Bank now! Why deal with the IMF?
The IMF (World Bank) admits it is bankrupt! So it has little or no real resources to act as lender very soon – In fact, even the IMF is scrambling to replace the US Dollar as the world currency because the Chinese are about to unfold their new alternative to the IMF! One CURRENT alternative permitted by the IMF is alternative currency swaps between Asian countries without the US Dollar, (google: Chiang Mai Initiative)
http://www.larouchepub.com/other/2001/2847imf_bankrpt.html
Joe Stiglitz is a leading critic of international development organizations — especially the International Monetary Fund, (IMF & World Bank). And yet, in his book, Globalization and its Discontents, he points to one country that got it right — Botswana. How did it succeed? By ignoring advice from Washington-based institutions, as Mr. Stiglitz explains. He also speaks how Botswana beat the criminal Diamond monopoly De Beers:
http://www.theglobalist.com/storyid.aspx?storyid=2507
Here is news on the developing Asian alternative to the IMF & World Bank:
http://www.globaleconomicgovernance.org/blog/2009/05/watch-out-imf-and-watch-out-washington-dc/
60 Questions about the World Bank debt scam:
http://www.cadtm.org/60-Questions-on-the-IMF-World-Bank
Actually, there are several excellent books on the World Bank debt scam here:
http://vakindia.org/shop-online-page4.html
How the World Bank caused America & European financial bankruptcy (free download):
http://vakindia.org/pdf/IE.pdf
How Malaysia dumped the World Bank (IMF) & thereby prevented economic and social chaos:
http://www.twnside.org.sg/title2/gtrends1.htm
Another interesting book on the topic – World Bank & IMF, Fifty Years is Enough:
http://www.alternativeradio.org/programs/KEND001.shtml
In summary, the IMF and World Bank will only extend loans if countries agree to accept ‘structural adjustment programmes’ (SAPs). SAPs are forced down the throats of the people of the former colonial world. To pay off the loans, the IMF and World Bank demand governments raise money by selling off public assets and companies (privatization) and cutting state expenditure on social services like health care, education, and pensions. SAPs require countries de-regulate and “open up” their economies by cutting subsidies to local industries and creating bogus trade barriers and tariffs. Countries must open up their economies to the multinationals (usually based in Western countries), remove restrictions on foreign investments, and allow corporation’s access to the workers and natural resources of the country at bargain basement prices.
The vast majority of the profits made by the multinationals are taken out of the country and brought home (repatriated) to the West. SAPs encourage export-oriented growth (selling cheap raw materials or commodities on the world market, like cash crops, garments, or computer chips) to generate hard currency. All in all, the IMF and World Bank SAPs turn countries into loan repayment machines, generating easy profits for the world’s biggest companies and banks. IMF policies also both directly and indirectly impact on workers in, for example, Europe and the US. Because they are partially funded with public money, the IMF and World Bank redistribute wealth from working people in the West (through their taxes) and funnel it to programmes which benefit the multinationals.
The effects of IMF/World Bank programmes are to lower wages and working conditions worldwide, which exerts a downward pressure on workers’ living standards in the industrialised countries as well.
The IMF and World Bank loans have created a huge debt trap. This overwhelming debt has led to the poorest countries in the world allocating enormous portions of their national incomes towards paying interest. Debt is one of the most important weapons with which the big capitalist powers dominate poor countries. It is used as a means of blackmailing the poorest countries and tightening the screw on the vast majority of the people in Africa, Asia and Latin America.
However, due to the collapse of the US Dollar & all Central Bank controlled European nations, many alternatives to the World Bank have opened up! Dominica will be wise to use an alternative to the World Bank – Besides; even the World Bank admits it & the US Dollar are bankrupt!
Well with the millions being pumped in by the chineese with road construction, etc etc it will grow. I hope is sustained growth (Industry and export) and not just predictions based on these proposed donations.
Somthing to think about.
why isn’t the retard also known as ‘stay tuned’ commenting on this article??!!
DE neighbour (IMF)came to our house (DOMINICA) and came inside. They saw our parents
with nice furniture, each one of the family had a ride (MINISTERS) and always dress nice
and dandy.
De neighbour (IMF) said wow, these people are doing fine. they seemed to be rich.
But Daddy (Primeminister) hardly give us his children (DOMINICANS) proper cloths to put
on. We (Dominicans) hardlly have a good meal. Every body is saying (IMF) how our parents (GOVT)
are doing well, and yet still the children (DOMINICANS) are suffering.
MAGRASSA IMP , don’t lie on our parents.
Why every thing has to be political ppl common
Dominica is blessed.
Thank you Skerrit for having the vision to keep the country in a stable economic situation. We Love you.
And why is the IMF so interested in Dominica or any other Caribbean country?
These are international bankers out for their own gain only.
Stay away from IMF loans or they will take every thing you have. They will own you.
Look at what happened to Iceland and Greece and now the US is going downhill.
WOY WOY WOY SOMETHINGS HAPPENINGGGGGGGGGGG AND ITS SO EXCITING!!!!!!!!!!!!!!!!!!!!!!!!
This news will surely vindicate the majority of Dominicans who trusted PM Skerrit’s economic polices and overwhelmingly re-elected his Labour Party government with a new mandate to take this country to the next level. His detractors should now hang their heads in shame.
Well done Skerro! We’re with you all the way.
Agriculture, manufacturing, construction have decreased, yet IMF says Dominica taking sound economic policies to boost economy? The standard of living of the majority of Dominicans have declined considerably. Food security is not taken seriously. Dominicans who were once hard working producing food for local and regional markets are now running away from the land and agriculture. Good agricultural land is being sold to foreigners who have no interest in food production. The Govt has failed in developing and making maximum returns from its natural resources. Instead authorities have encouraged a dependency snydrome. Take a hard look at what is happening to our agriculture.
Many hear of millions of $$$$ but those $$$$ are not used wisely to mobilise and assist the productive sectors. In fact, Dominicans in the diaspora has not heeded the call of the PM to come home from wherever they are because Dominica is prospering better than most other countries at present….
Minister of Agriculture accepts coffee plant after Chavez makes announcement in Dominica … How much coffee do we have to sustain the operation to make it financially viable? Who is running Dominica? Whatever growth is recorded, it does not reach the downtrodden because the standard of living has been getting worse and worse.
PM once said that he would consult with the Dominican people regarding continuing with or going to the IMF. Nothing like that took place. People are not consulted on important national issues so anything goes.
Makes you wonder where The IMF got there info.
When will people like u stop? Please, we don’t need people like you right now to go around criticising everything good dat happens.
Can a country grow with agriculture only? get you brain out the gutter and open your eyes to the daylight. you are only looking for your own benefit. just because you are a farmer. what about those who don’t farm???? CHA!!
Where are the UWP nasayers? What will they say now? The PM bribe IMF to say that? Instead of wishing their own country well their predicition was doom & gloom just because their party is not in power . Well read it and wipe according to the IMF ( THE IMF ) the DLP and the PM is doing a good job running our country!! Lets pray for our leaders and the PM, because when the country does well every body benefits UWP, DLP and FP-everybody. When it rains it falls on everybody!! God knows no party colors!!
Not too much borrowing at this time but find other ways and means of stimulating growth and increasing exports and decreasing imports. Man shall not leave on bread alone. Good going Skerrit.
It would be nice if you give some suggestions on how to stimulate growth in the global economic climate that we are facing now. In order to put the necessary infrastructure in place for stimulating growth you need, guess what, money. And money don’t fall off trees. Dominica, like all small developing nations, are facing similar crisis and have to turn to different agencies for assistance. With the prospect of economic growth getting some assistance is not a bad idea at all.
This is not bad in light of what is happening in the Caribbean. That should further confirm that UWP had no plan for the country’s development.
Damn Boy, that Skerrit there is a Genius. Bring it on HATERSSSSSSSSSSS……….