Archive for May 1st, 2013

The IMF’s Caribbean Report: – Critique by Ronald Ramkissoon


The IMF’s Caribbean Report: A Critique by Ronald Ramkissoon Ph.D. Senior Economist, Republic Bank Ltd.

Written by Guest Columnist
Tuesday, 30 April 2013 15:19
The recent International Monetary Fund (IMF) Report on the Caribbean titled Caribbean Small States: Challenges of High Debt and Low Growth (February 20, 2013) deserves particular attention for some of the things it says, and for some of the things it did not say. As is well known, Caribbean states, to varying degrees, are finding it extremely difficult to make ends meet and states are increasingly turning to the multilaterals, including the IMF, for help. What is the report saying about the challenges of the Caribbean and what are the recommendations? Are these recommendations adequate? Is anything missing?The Caribbean report, which is part of a larger study titled “Macroeconomic Issues in Small States and Implication for Fund Engagement,” says that most Caribbean small states are facing (i) an extreme version of low growth, (ii) high debt, (iii) significant vulnerabilities, and (iv) limited resilience to shocks. It says further that growth and competitiveness have deteriorated, largely due to low productivity and high costs.  Continue reading