FINANCE MINISTER, Dr. Omar Davies has moved with much dispatch to dismiss assertions by the US-based Credit Sight Report that Jamaica's debt problem had reached crisis proportions.
Dr. Davies' quick response can be interpreted as a sign that Government realises the potential negative impact that the Report could have on Jamaica's chances of returning to overseas financial markets.
The Credit Sight's negative report could not have come at a worse time. It came on the heels of a reported cautious warning by the U.S. rating agency Bear Stearns - a company that has advised the Jamaican Government on its placement of debt issues in overseas markets - about dangers associated with Jamaica's total debt numbers of $570 billion.
This also came after the negative Business and Consumer Index released by the Jamaica Conference Board (JCB), the research arm of the Jamaica Chamber of Commerce. The JCB reported that the Confidence Index of Jamaican business fell to the lowest level at the start of 2003 since the survey began in mid-2001. In the case of the consumer index, this also fell as consumers expressed less confidence in their future economic prospects at the start of 2003 than anytime since mid-2001.
In a real sense then the walls that have been used to shore up the debt problem reflected in a 150 per cent debt to GDP ratio and interest rates in excess of 30 per cent seem to be crumbling. Finance Minister Davies has served notice that Government plans to present a clear strategy (or should we borrow the term "Road Map" from the Americans) in his eagerly awaited budget presentation Thursday on how it plans to deal decisively with its debt problem.
Last week former IMF director, Jamaican Sam Stephens, suggested at a Money Expo in Kingston that private sector leaders and Government bureaucrats should look at all the economic issues and in a process of consensus reach options to prevent the debt problems becoming a crisis.
We support the recommendation but with one caveat. In the past such discussions have tended to take place in the context of a premise that the current economic model is sacrosanct and there are no alternatives. In our view consensus must involve concessions on positions held dearly.
We feel strongly that irrespective of the policy initiatives announced by Dr. Davies on Thursday, the success of these measures will demand a spirit of consensus. Regrettably, the track record in this regard indicates that we have not moved beyond the rhetoric of consensus - a great pity indeed. We must move beyond the rhetoric if we are to survive as a nation.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
