THE EDITOR, Sir:

JAMAICA HAD a long relationship with the International Monetary Fund (IMF) from in the 1970s until 1990 when we opted to abandon its lending facilities. Hence, the present situation which the country faces cannot be blamed on the IMF. As a sovereign country, the buck stops with us. The question which, therefore, arises is: What have we been doing with our economy since 1990?

We have lived beyond our means and have adopted policies that have proven detrimental to the economic and social development of our country:

(a) We have enthusiastically supported policies of absolutely free imports, thus crippling our farmers and manufacturers. Many other countries have found ways and means of circumventing this problem.

(b) We have not done anything similar to support our export capabilities.

(c) We have relieved the affluent from paying for the education of their children under a free education policy.

In order to maintain this untenable position we have, over the years:

(1) Incurred domestic and international debts that total greater than our Gross Domestic Product.

(2) We have maintained interest rates at levels that encourage only money lenders, not entrepreneurs, farmers and manufacturers. More than a half of our annual budget is devoted to paying debt.

(3) We have sold out to foreign companies, most of our banking institutions, most of our insurance companies, and the best of manufacturing companies with nothing to show for it.

(4) On the social side, we have converted much of our poor areas into dungeons of despair - garrisons.

Thus, it was inevitable that the crash would come - recession or no recession.

The following actions need to be taken.

The precariousness of our economic position leaves us no option but to return to the IMF. However, we should not regard our return as a solution to our problems. This is just the end of the beginning.

Following the exit from the IMF debt assistance phase, comprehensive plans (eg agriculture, financing, etc) should be in place to guide the country through to a satisfactory and sustainable level of socio-economic development.

If after Independence we had planned and followed on the basis of 10 or 20-year programmes, we certainly would have been able to withstand the pressures of the present recession without having to resort at this late stage to the IMF and its dictates.

I am, etc.,

R.H. Alexander

royhalexander@gmail.com