I take strong objection to the editorial titled 'The PM should listen to Mr Livshits', published on Sunday, October 18. There are several flaws in the reasoning.

Russia at the time of its default, then and now, was in a very different situation from Jamaica. At the time of the default, the Russian debt was held by foreigners, not by Russians. Second, Russia's is a very large economy. It could take major risks, which Jamaica cannot. Further, Russia has an extensive oil and gas industry which could support the economy if there was no foreign investment.

In addition, during the period of communism, the economy of the Soviet Union was self-contained and dependent on foreign investment. Thus, the Russian political and economic situation, as well as its history, is totally different from Jamaica's.

Because of its culture and long period of communism and experience of collectivism, Russians were largely a more united people and, therefore, there was no great resistance to the actions of the government. Jamaica is politically polarised; we rely heavily on foreign investment, our economy is not self-contained and, unlike Russia, we cannot fall back on oil and gas.

If Jamaica were to default - and negotiations could be treated as such - we could put in jeopardy the prospects of foreign investment and also encourage capital flight.

Also, Mr Livshits did not explain the impact on Russia of the default. It led to a massive banking crisis which resulted in millions of Russians losing their savings, the devaluation of the rouble, capital flight, the growth of oligarchs and the massive emigration of thousands of highly qualified Russians.

So, Mr PM, do not follow the advice of Mr Livshits. The editorial should have examined more carefully the differences in Jamaica.

I am, etc.,

JOHN EVANS

wcmc@cwjamaica.com

Kingston 6