John Maxwell
I reluctantly must confess that I have never heard of any success story associated with the International Monetary Fund in relation to its dealings with any poor or Third World country. Certainly, in its dealings with Jamaica, the record is one of unrelieved disaster after disaster with both political parties fleeing in impoverished terror from the helpful arms of the Fund. I will never forget the spectacle of Mr Albertelli, the Argentinean principal of the 1977 IMF team, as he scuttled away to hide from journalists in the then Sheraton hotel after delivering the coup de grace to Jamaica's hopes for rational development. It was therefore with some surprise that I read in the Gleaner on Wednesday a story suggesting that the Michael Manley government had more or less willingly surrendered its sovereignty to the IMF in 1977. According to Gary Spaulding, Senior Gleaner Writer: "There was no global economic crisis 32 years ago to shoulder the blame for Jamaica's economic predicament, but on Tuesday, January 19, 1977, when Prime Minister Michael Manley told the House of Representatives of his administration's intention to pursue a borrowing relationship with the International Monetary Fund (IMF), his rhetoric closely matched that of the present government." Oddly enough, I remember not one, but several international crises that provided a background for the Manley recourse to the IMF. These included the so-called Arab Oil Shock of 1973 et seq. because of which – according to the most easily accessible source – Wikipedia: "A world financial system already under pressure from the breakdown of the Bretton Woods agreement experienced a series of recessions and high inflation that persisted until the early 1980's, and elevated oil prices until 1986." Among the crises I remember was the devaluation of the US dollar, the quadrupling (or worse) of the price of gasoline and to quote Wikipedia again: "Underscoring the interdependence of the world societies and economies, oil-importing nations in the noncommunist industrial world saw sudden inflation and economic recession. In the industrialized countries, especially the United States, the crisis was for the most part borne by the unemployed, the marginalized social groups, certain categories of aging workers, and increasingly, by younger workers. Schools and offices in the U.S. often closed down to save on heating oil; and factories cut production and laid off workers. In France, the oil crisis spelt the end of the Trente Glorieuses, 30 years of very high economic growth, and announced the ensuing decades of permanent unemployment." If the effect of these crises on the developed countries was so profound and long-lasting it should not take a genius to understand the effect on totally open economies like Jamaica, totally dependent on imported oil and overwhelmingly dependent on imported food. Put briefly, the IMF thought our aspirations were too ambitious and decided to put us in our proper place. I believe that this judgment was both racist and political, made by a bunch of 'crazy baldheads' of the same ilk as are now persecuting Haiti. You can see their point: We had a National Minimum Wage while the English and Americans were still talking about one, we had free education from basic school to university, we had ambitious unemployment relief schemes – the Emergency Employment Programme and the Pioneer Corps, among others, we had decreed maternity leave for every woman worker in the country, including domestic helpers and sugar workers. For the First Time At Last! There was also serious intrigue. Jamaica had prepared a negotiating position with the IMF – a top secret document. Imagine the delight of the IMF and the total discomfiture of the government when this 'Top Secret' document was broadcast on RJR by the leader of the Opposition, Mr Edward Seaga. It was a blow from which this country has never recovered. A Minister and a Permanent Secretary were initially found guilty of breaching their trust. They were later acquitted on appeal. I have never understood why Mr Seaga, a former cabinet minister and bound by the same oaths and undertakings as those in office , was never prosecuted for his breach of trust. He was, however, later excoriated by the Prime Minister of Trinidad and Tobago Eric Williams for his disloyalty to Jamaica when he went to the IMF and World Bank, arguing that they should not help Jamaica. As it was, and as Seaga discovered for himself while Prime Minister, the IMF and its sibling were never about helping Jamaica; and when Mr Seaga had the opportunity in the 80s, he ran away from them as fast as his little legs could carry him. I wonder what my friend Clovis would do now if the current leader of the Opposition were to behave now as Mr Seaga did then?